Santa Cruz City Council
March 26, 2024

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

CITY COUNCIL AGENDA
Regular Meeting - March 26, 2024
12:00 P.M. CLOSED SESSION, ZOOM/COURTYARD CONFERENCE ROOM 1:15 P.M. ORAL COMMUNICATIONS, CONSENT, AND PUBLIC HEARINGS,

ZOOM/COUNCIL CHAMBERS
The meeting may be viewed remotely, using any of the following sources:
 Click on Zoom link (no time delay): https://zoom.us/j/94684401344  Online at http://www.cityofsantacruz.com/government/city-council/council-meetings  Online at Watch – Community Television of Santa Cruz County  Comcast Channel 25
Or: Call any of the numbers below. If one is busy, try the next one.  1-833-548-0276 (Toll Free)
 1-833-548-0282 (Toll Free)
 1-877-853-5247 (Toll Free)
 1-669-900-9128
 Enter the meeting ID number: 946 8440 1344
 When prompted for a Participant ID, press #.
 Press *9 on your phone to “raise your hand” when the Mayor calls for public comment.  It will be your turn to speak when the Mayor calls on you. Press *6 to unmute yourself. The timer will then be set.

Correspondence to be included in the agenda packet must be received by 5:00 pm on Monday, March 25th
PLEASE NOTE:
 Council may take a break(s) as needed.
 Requests for extra speaking time on items other than Oral Communications must be made by 5:00 p.m. on Sunday, March 24th by emailing the Mayor and the City Clerk.

Approval will be confirmed via email.
[email protected] [email protected]
March 26, 2024 City Council 2
The City of Santa Cruz does not discriminate against persons with disabilities. Out of consideration for people with chemical sensitivities we ask that you attend fragrance free. Upon request, the agenda can be provided in a format to accommodate special needs. Additionally, if you wish to attend this public meeting and will require assistance such as an interpreter for American Sign Language, Spanish, or other special equipment, please call the City Clerk’s Department at 420-5030 at least five days in advance so that we can arrange for such special assistance, or email [email protected]. The CalRelay system number: 1-800-735-2922.

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

Agenda and Agenda Packet Materials: The City Council agenda and the complete agenda packet containing public records, which are not exempt from disclosure pursuant to the California Public Records Act, are available for review on the City’s website:
www.cityofsantacruz.com/government/city-council-meetings and at the Office of the City Clerk located at 809 Center Street, Room 8, Santa Cruz, California, during normal business hours.

Agenda Materials Submitted after Publication of the Agenda Packet: Pursuant to Government Code §54957.5, public records related to an open session agenda item submitted after distribution of the agenda packet are available at the same time they are distributed or made available to the legislative body on the City’s website at: www.cityofsantacruz.com/government/city-councilmeetings and are also available for public inspection at the Office of the City Clerk, 809 Center Street Room 8, Santa Cruz, California, during normal business hours, and at the Council meeting.

Need more information? Contact the City Clerk’s office at 831-420-5030. 12:00 PM
Statements of Disqualification
Closed Session

1. Conference With Legal Counsel – Liability Claims (Government Code §54956.95)
1) Claimant: Liberty Mutual
2) Claimant: CSAA Insurance Exchange
Claims against the City of Santa Cruz
March 26, 2024 City Council 3
Closed Session (continued)

2. Real Property Negotiations (Government Code §54956.8) 1) Property: Approximately 8.15 acres located on Mount Hermon Road in Scotts Valley, CA
APNs: 022-721-07, 022-721-08, 022-721-09
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and City of Scotts Valley Under Negotiation: Price, terms of payment, or both
2) Property: 302 and 326 Front Street
APNs: 005-151-48 and 005-151-35
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and SCFS Venture LLC Under Negotiation: Price, terms of payment, or both

3. Conference with Legal Counsel – Existing Litigation (Government Code §54956.9(d)(1))
Alicia Lopez v. Mary McCoy, et al.
(Santa Cruz County Superior Court Case No. 18CV03301)

4. Conference With Legal Counsel – Anticipated Litigation (Government Code §54956.9(d)(2))
Significant exposure to litigation (one potential case to be discussed) March 26, 2024 City Council 4
City Council
1:15 PM
Call to Order
Roll Call
Oral Communications Announcement – Members of the public may address Council on matters not on the agenda, but within the jurisdiction of the Council. 30 minutes is allocated for Oral Communications. No extra time for groups will be granted.

Oral Communications
Presentations

5. Mayoral Proclamation Declaring March 2024 as Procurement Month

6. Mayoral Proclamation Declaring March 26, 2024 as Santa Cruz Antiques Faire Appreciation Day

7. Clam Chowder Cook-off Update
Presiding Officer's Announcements
Statements of Disqualification
Additions and Deletions
City Attorney Report on Closed Session
Council Meeting Calendar

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

March 26, 2024 City Council 5
Consent Agenda

9. Minutes of the March 12, 2024 City Council Meeting (CC) Motion to approve as submitted.

10. Affordable Housing Sustainable Communities (AHSC), Infill Infrastructure Grant (IIG) and Set-Aside Administrative Approvals (EDH) Motion to:
1) Authorize the City Manager to execute project loan contracts, loan agreements and related loan and grant documents related to the City’s Federal Set-Aside for Pacific Station North and the Downtown Library Affordable Housing Project;
2) Authorize the City Manager to execute program/project contracts, loan agreements and related loan documents with Affordable Housing Sustainable Communities (AHSC) and Infill Infrastructure Grants (IIG) and related documents for distributions of funds to the projects and programs; and
3) Adopt a resolution approving the FY 2024 AHSC, IIG and Set-Aside budget adjustment allocating AHSC, IIG and Set-Aside funds and appropriating the funds in the FY 2024 budget.

11. Three-Month Extension of Lease for Central Home Supply (EDH) Motion authorizing the City Manager to execute an amendment to the Lease Agreement with Santee Corporation dba Central Home Supply, providing a three-month extension of the lease term for the property located at 744 and 808 River Street, in a form approved by the City Attorney.

12. Griffin Structures: Owner’s Representative for the Downtown Library Affordable Housing Project – Change Order (EDH)
Motion to approve a purchase order change order with Griffin Structures, Inc. (Santa Clara, CA) for serving as the Owner’s Representative on the Downtown Library Affordable Housing Project (DLAHP) and authorize the City Manager or his designee to execute a change order in the amount of $111,115 and any related documents, in a form approved by the City Attorney. The Economic Development and Housing Director is further authorized to execute future change orders within the approved budget.

March 26, 2024 City Council 6
Consent Agenda (continued)

13. Liability Claims Filed Against the City of Santa Cruz (FN) Motion to reject the liability claims of 1) Liberty Mutual Insurance Company, and 2) CSAA Insurance Exchange, based on staff recommendation.

14. Statement of Investment and Portfolio Policy (FN)
Motion to approve the Statement of Investment and Portfolio Policy.

15. 2021 Compensation Study, Phase III Follow-up (FN/HR) Motion to:
1) Approve Phase III Compensation Study (Study) implementation, which includes classification compensation increases as identified in the 2021 Study, as part of FY 2024, effective April 13, 2024; 2) Adopt a resolution amending the City’s Classification and Compensation Plan for multiple departments, as identified in Exhibit A; and
3) Adopt a resolution amending the FY 2024 budget allocating funding for Phase III as detailed in the Budget Adjustment Attachment 1-3- month and Annual Costs for Phase III.

16. Annual Housing Element and General Plan Progress Reports (PL) Motion to accept the 2023 General Plan and Housing Element Annual Progress Reports, and direct staff to submit the reports to the Governor’s Office of Planning and Research and the California Department of Housing and Community Development.

March 26, 2024 City Council 7
Consent Agenda (continued)

17. Pay and Play Equity in Sport Competition Permitting (PR) Motion to:
1) Adopt a resolution supporting equal playing time, location, venue conditions, and prize compensation for sporting events permitted by the City of Santa Cruz; and
2) Direct staff to update the special event permit application language and event permit condition language for sports competition permits.

18. Beach Street Restrooms (c301913) – 2nd Amendment to Agreement for Architectural and Engineering Services for Beach Street Public Restroom and Budget Adjustment (PR)
Motion to:
1) Approve and authorize the City Manager to execute a second amendment for $15,000 to the Professional Services Agreement with Gelfand Partners Architects Inc. for architectural and engineering services to renovate the Beach Street Restroom at 120 Beach Street, in a form approved by the City Attorney, bringing the total amount to $112,900. The Director of Parks and Recreation is authorized to execute contract amendments within the approved project budget; and
2) Adopt a resolution amending the FY 2024 budget and appropriate $65,000 from the Parks Facilities Tax Fund account and amend the Parks and Recreation Capital Investment Program budget from $351,183 to $416,183 in c301913, Beach Street Restrooms.

19. West Cliff Drive Stabilization Project (c401501) – Contract Amendment (PW)
Motion to approve and authorize the City Manager to execute a contract amendment with Pacific Crest Engineering (Watsonville, CA) for ongoing observation and testing services for the West Cliff Drive Stabilization Project (c401501), in a form approved by the City Attorney. The Public Works Director is authorized to execute contract amendments within the approved project budget.

March 26, 2024 City Council 8
Consent Agenda (continued)

20. Emergency San Lorenzo River Levee Repair (e602401) – Authorization of Emergency Work (PW)
Motion to ratify emergency work through a purchase order with Granite Rock Co. (Watsonville, CA) for repair of the San Lorenzo River Levee in the amount of $227,705. The Public Works Director is authorized to execute change orders within the approved project budget.

21. Emergency Hagemann Aerial Sewer Repair (c401511) – Authorization of Emergency Work (PW)
Motion to ratify emergency work through a purchase order with Precision Grade, Inc. (Salinas, CA) for inspection and repair of the Hagemann Aerial Sewer Main in the amount of $300,000. The Public Works Director is authorized to execute change orders within the approved project budget.

22. Retaining Wall Reconstruction Project - 141 Archer Drive (g402402) - Authorization to Advertise for Bids and Award Contract (PW) Motion to approve the plans and specifications for the Retaining Wall Reconstruction Project – 141 Archer Drive (g402402), authorize staff to advertise for bids, and award the contract. The City Manager is hereby authorized and directed to execute the contract in a form approved by the City Attorney. The Director of Public Works is authorized to execute change orders within the approved project budget.

March 26, 2024 City Council 9
Consent Agenda (continued)

23. Beltz 12 Phase II Ammonia Removal Improvements Project – Approval of Plans and Specifications and Authorization to Advertise for Bids and Award Contract – Budget Adjustment (WT)
Motion to:
1) Approve the Plans and Specifications for the Beltz 12 Phase II Ammonia Removal Improvements Project (c702203) and authorize staff to advertise for bids and the Water Director to execute change orders within the approved project budget. The City Manager is hereby authorized and directed to execute the contract as authorized by Resolution No. NS-27,563; and
2) Adopt a resolution transferring $215,000 within Water’s Capital Investment Program, from project c701606 for the Newell Creek Dam Inlet/Outlet Replacement Project to project c702203 for the Beltz 12 Phase II Ammonia Removal Improvements Project.

End Consent Agenda
Public Hearings

24. 2nd Reading and Final Adoption of Ordinance No. 2024-07 Amending Santa Cruz Municipal Code Chapter 13.12 (CA/PR)
Motion to adopt Ordinance No. 2024-07 amending Chapter 13.12 of the Santa Cruz Municipal Code relating to City-owned parks and recreational facilities in response to amendments to Health and Safety Code section 115800.

March 26, 2024 City Council 10
Public Hearings (continued)

25. Cruz Hotel

25.1. 302, 310, 314, 322, 324, 326, 328 Front Street: CP21-0051 (APN 005- 151-29, -34, -35, -43, -48, -51) Coastal Permit, Non-Residential Demolition Authorization Permit, Design Permit, Boundary (Lot) Line Adjustments, Special Use Permit, Administrative Use Permit, Additional Height Request, Revocable License for Outdoor Extension Area, and a Heritage Tree Removal Permit, to Demolish a Commercial Building, Combine Five Parcels, and Construct a Six-Story, 232-Room Hotel with Ground Floor Retail, Banquet and Conference Space, Restaurant, and Bar on Property Located within the CBD (Central Business District)/CZO (Coastal Zone Overlay)/ SP-O (Shoreline Protection Overlay)/ F-P (Floodplain)/FP-O (Floodplain Overlay) Zone District and within the Front Street/Riverfront Subarea of the Downtown Plan. The Project Requires Approval of a Section 408 Permit from the US Army Corps of Engineers to Allow for the Placement of Fill Between the Levee and the Proposed Building and to Allow for the Development of an Outdoor Extension Area Adjacent to the Riverway Path. The Project Also Includes a Finding that the Sale of the Exempt Surplus Properties is Consistent with the General Plan in Accordance with the Surplus Lands Act. (Environmental Determination: Categorical Exemption, Section 15332). Applicant: SCFS Venture LLC (PL)
Resolution to acknowledge the environmental determination (Categorical Exemption Section 15332, Class 32) and approve the Coastal Permit, Non-Residential Demolition Authorization Permit, Design Permit, Boundary (Lot) Line Adjustments, Special Use Permit, Administrative Use Permit, Additional Height Request, a Revocable License for an Outdoor Extension Area, and Heritage Tree Removal Permit to construct a 232-room hotel and associated facilities, and make a finding that the sale of the exempt surplus properties is consistent with the General Plan in accordance with the Surplus Lands Act, based on the Findings and Conditions of Approval listed in the attached draft resolution.

March 26, 2024 City Council 11
Public Hearings (continued)

25. Cruz Hotel (continued)

25.2. Consideration of an Option and Purchase Sale Agreement Between the City of Santa Cruz and SCFS Venture LLC for the City-owned Property, Located at 302 and 326 Front Street, North of the Intersection with Laurel Street, APNs 005-151-48 and 005-151-35 (EDH)
Resolution authorizing and directing the City Manager to execute an Option and Purchase and Sale Agreement between the City of Santa Cruz and SCFS Venture LLC, a Delaware limited liability company, for the purchase of City-owned property located at 302 and 326 Front Street, in a form approved by the City Attorney subject to any nonsubstantive changes, and to take any further actions and authorize the City Manager to execute any other related documents necessary to conclude the sale.

Adjournment
March 26, 2024 City Council 12

INFORMATION ITEMS PREVIOUSLY DISTRIBUTED TO CITY COUNCILMEMBERS None Issued.

MAYOR'S PROCLAMATIONS
ADDENDUM TO CITY COUNCIL AGENDA – MARCH 26, 2024

26. Proclaiming March 7, 2024 as “Ray Mosier Hunger Fighter of the Year Day” and encouraging all citizens to join in honoring him as an inspiring example of an individual whose efforts are supporting the Second Harvest Food Bank’s mission, “to educate and involve individuals to end hunger and alleviate malnutrition in our communities,” and expressing heartfelt appreciation for his contributions on behalf of all those in need.

27. Proclaiming March 7, 2024 as “Richard Crowe Hunger Fighter of the Year Day” and encouraging all citizens to join in honoring him as an inspiring example of an individual whose efforts are supporting the Second Harvest Food Bank’s mission, “to educate and involve individuals to end hunger and alleviate malnutrition in our communities,” and expressing heartfelt appreciation for his contributions on behalf of all those in need.

28. Proclaiming April 2–8, 2024 as “Dark Sky Week” and encouraging all citizens to join in observing this important week and adopting safe, sensible lighting practices that protect dark sky resources for the benefit of all.

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

Council will make the appointments at a future meeting.

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

County Latino Affairs Commission One opening – at-large nomination March 26, 2024 City Council 13
Public Hearing
If, in the future, you wish to challenge in court any of the matters on this agenda for which a public hearing is to be conducted, you may be limited to raising only those issues which you (or someone else) raised orally at the public hearing or in written correspondence received by the City at or before the hearing.

Any person seeking to challenge a City Council decision made as a result of a proceeding in which, by law, a hearing is required to be given, evidence is required to be taken, and the discretion in the determination of facts is vested in the City Council, shall be required to commence that action either 60 days or 90 days following the date on which the decision becomes final as provided in Code of Civil Procedure Section 1094.6 Please refer to code of Civil Procedure 1094.6 to determine how to calculate when a decision becomes “final.” The 60-day rule applies to all public hearings conducted pursuant to the City’s Zoning Ordinance, Title 24, Santa Cruz Municipal Code. The 90-day rule applies to all other public hearings.

6.1 7.1
Meeting Type
Holiday
Jewish Holiday
Regular Meeting
Special Meeting (will be added as scheduled)
Study Session (will be added as scheduled)
Budget Hearing
DATE Location Meeting Type
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public April 22/23
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public May 27
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public May 29 Council Chambers Budget Hearing
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public June 19
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public July 4
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public September 2
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public October 2/3
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public October 11/12
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public November 11
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public November 28
November 29
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public City Council Meeting Calendar for 2024
November 26
December 10
City Hall Closure - Thanksgiving Day
City Hall Closure - Day After Thanksgiving Day
June 25
September 10
September 24
City Hall Closure - Juneteenth
Please note: Meeting times are not final and are likely to change Passover (City observed - sundown to sundown)
August 13
May 14
April 9
April 30
June 11
May 28
City Hall Closure - Labor Day
August 27
July 9 and 23 Meetings Cancelled - CITY COUNCIL DARK
City Hall Closure - Independence Day
City Hall Closure - Memorial Day
Rosh Hashanah (City observed - sundown to sundown)
November 12
October 8
October 22
City Hall Closure - Veteran's Day (observed)
Yom Kippur (City observed - sundown to sundown)

8.1 Meeting Type
Holiday
Jewish Holiday
Regular Meeting
Special Meeting (will be added as scheduled)
Study Session (will be added as scheduled)
Budget Hearing
DATE Location Meeting Type
City Council Meeting Calendar for 2024
Please note: Meeting times are not final and are likely to change December 25/26
December 25
December 24 Meeting Cancelled - CITY COUNCIL DARK
City Hall Closure - Christmas Day
Hanukkah (City observed - sundown to sundown)

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

MINUTES OF A CITY COUNCIL MEETING
March 12, 2024
12:00 PM
Mayor Keeley opened the City Council Closed Session at 12:02 p.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, KalantariJohnson; Vice Mayor Golder; Mayor Keeley.

Absent: None.

Staff: City Manager M. Huffaker, City Attorney T. Condotti, Director of Economic Development and Housing B. Lipscomb, Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush.

Public Comment
Mayor Keeley opened the public comment period at 12:03 p.m. There were no speakers. Mayor Keeley closed the public comment period at 12:03 p.m.

Statements of Disqualification – Councilmember Brunner announced she will be recusing herself from items 3.4 and 3.5, as it relates to her employment.

The meeting was closed to the public at 12:05 p.m. and Council adjourned to the Courtyard Conference Room.

9.1 March 12, 2024 CITY COUNCIL MINUTES 6754
Closed Session (continued)

1. Conference With Legal Counsel – Liability Claims (Government Code §54956.95) 1) Claimant: Robert David Worel
2) Claimant: Sean M. Bergman
3) Claimant: Lisa Foster
Claims against the City of Santa Cruz
Council received a status report, took up under agenda item 16, and took no reportable action.

2. Conference with Legal Counsel – Existing Litigation (Government Code §54956.9(d)(1))
Alicia Lopez v. Mary McCoy, et al.
(Santa Cruz County Superior Court Case No. 18CV03301)
Council received a status report, and took no reportable action.

3. Real Property Negotiations (Government Code §54956.8) 1) Property: 25 Municipal Wharf
APN: 007-341-01
Owner: Mark Gilbert dba Firefish
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Mark Gilbert Under Negotiation: Price, terms of payment, or both
2) Property: 55 Municipal Wharf B, C, D
APN: 007-381-01
Owner: Debra Szecsei dba Vino Locale
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Debra Szecsei Under Negotiation: Price, terms of payment, or both
3) Property: 55 Municipal Wharf B, C, D
APN: 007-381-01
Owner: Ana Wold and Josh Taylor dba Vino by the Sea, Inc.

City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Ana Wold
Under Negotiation: Price, terms of payment, or both

9.2 March 12, 2024 CITY COUNCIL MINUTES 6755
Closed Session (continued)

3. Real Property Negotiations (Government Code §54956.8) (continued) 4) Property: 110 Cedar Street
APN: 005-042-14
Owner: Paul and Kim, Inc. dba Mandarin Gourmet
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Paul Hui
Under Negotiation: Price, terms of payment, or both
5) Property: 302 and 326 Front Street
APNs: 005-151-48 and 005-151-35
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and SCFS Venture LLC.

Under Negotiation: Price, terms of payment, or both
Council received a status report from the City Negotiator, and took no reportable action. Councilmember Brunner left Closed Session and recused herself from items

3.4—3.5.

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

MINUTES OF A CITY COUNCIL MEETING
March 12, 2024
1:15 PM
Call to Order – Mayor Keeley called the meeting to order at 1:19 p.m. in Council Chambers.

Roll Call

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

Absent: None.

Staff: City Manager M. Huffaker, Assistant City Manager L. Schmidt (via Zoom), City Attorney T. Condotti, Chief of Fire R. Oatey, Director of Planning and Community Development L. Butler, Chief of Police B. Escalante, Director of Parks and Recreation T. Elliot, Director of Economic Development and Housing B. Lipscomb (via Zoom), Director of Information Technology K. Morgan (via Zoom), Deputy City Manager L.

Murphy, Director of Public Works N. Nguyen (via Zoom), People Officer S. De Leon (via Zoom), Principal Management Analyst J. Mellor, Housing and Community Development Manager J. de Wit, Senior Planner T.

Maier, Homelessness Response Manager L. Imwalle, Parking Program Manager G. Hussey, Deputy City Attorney S. Duck, Principal Management Analyst L. Bass, 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 1:20 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.

Unidentified person spoke regarding United Way of Santa Cruz and the 2-1-1 phone line and outlined the work their organization has done this year.

9.4 March 12, 2024 CITY COUNCIL MINUTES 6757
Oral Communications (continued)
Hector Azpilcueta spoke on behalf of Unite Here! representing restaurant and hospitality workers regarding a hotel being built on City-owned land.

Unidentified person spoke regarding a letter from the Mayor to the Sentinel about a housing shortage.

Martha Hernandez spoke regarding the definition of “affordable housing,” and in opposition to the City selling land for hotel development instead of affordable housing.

Celica Valdez spoke regarding Santa Cruz selling public land for hotel development, as opposed to using it for affordable housing.

Luis Olive spoke regarding the cost of rent in Santa Cruz and affordable housing.

Unidentified person spoke in opposition to making West Cliff Drive a one-way road.

Nat Young spoke in opposition to making West Cliff Drive a one-way road.

Unidentified person spoke in opposition to making West Cliff Drive a one-way road and provided statistics of his personally conducted surveys of vehicles, pedestrians, and cyclists that utilize West Cliff Drive.

Anthony Ruffo spoke in opposition to making West Cliff Drive a one-way road and a petition that is circulating to keep it a two-way road.

Unidentified person spoke regarding a conversation he had with the Sheriff, the County Board meeting, and read from a book.

Unidentified person spoke regarding parking boats on the street.

At 1:44 p.m. Mayor Keeley closed Oral Communications.

Presentations

4. Outgoing Delegation to Shingu
Linda Snook, Chair of the Sister Cities Committee, spoke and introduced the youth delegates who are traveling to visit the Sister City of Shingu, Japan.

9.5 March 12, 2024 CITY COUNCIL MINUTES 6758
Presentations (continued)

5. Parking for Hope Check Presentation
Councilmember Brunner spoke and presented a check on behalf of the City to the Downtown Association’s Parking for Hope Program.

6. Santa Cruz Mountains Trail Stewardship 2023 Annual Report Emma Ussat, Trails Program Manager with Santa Cruz Mountains Trail Stewardship, gave a presentation.

Presiding Officer's Announcements – Mayor Keeley spoke, thanking the local voters, candidates, and County and City election workers, and then called on Councilmember Kalantari-Johnson who announced March 19, 2024 is Nowruz, the Persian New Year.

Mayor Keeley thanked City workers including first responders, and Public Works and Water Department staff who work with those experiencing homelessness.

Statements of Disqualification – None.

Additions and Deletions – None.

City Attorney Report on Closed Session – See pages 6754—6755 for the report.

Council Meeting Calendar

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

Consent Agenda
Councilmember Brunner made a comment on item 10.

Councilmember Kalantari-Johnson made a comment on item 13.

Vice Mayor Golder made a comment on item 13.

Councilmember Watkins made a comment on items 13 and 14.

Councilmember Brown made a comment on items 10, 13, and 14.

Councilmember Newsome made a comment on item 10.

Mayor Keeley made a comment on item 13.

9.6 March 12, 2024 CITY COUNCIL MINUTES 6759
Consent Agenda (continued)
Mayor Keeley opened the public comment period. The following people spoke:

James Ewing Whitman spoke regarding items 9 and 13.

Unidentified person spoke regarding item 10.

Unidentified person spoke regarding item 13.

Mayor Keeley closed the public comment period.

MOTION: Vice Mayor Golder moved, seconded by Councilmember KalantariJohnson, 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.

8. Resolution Extending the Emergency Declaration in Connection with the December 2022 and January 2023 Winter Storms (CA/CM)
Resolution No. NS-30,296 was adopted extending by sixty days the Local Emergency Declaration in connection with the December 2022 and January 2023 winter storms.

9. Minutes of the February 27, 2024 City Council Meeting (CC) Motion carried to approve as submitted.

10. Authorization for Application and Acceptance of Prohousing Incentive Program Funds (CM)
Resolution No. NS-30,297 was adopted authorizing the City Manager to apply for and accept the Prohousing Incentive Program Funds and, if awarded, to execute any agreement(s) or documents in a form to be approved by the City Attorney, and to take any other actions necessary for implementation of the grant-funded project.

9.7 March 12, 2024 CITY COUNCIL MINUTES 6760
Consent Agenda (continued)

11. City of Santa Cruz: Local Hazard Mitigation and Climate Adaptation Plan Integration and Update - Budget Adjustment (CM)
Resolution No. NS-30,298 was adopted amending the FY 2024 budget for the use of $190,000 from the Federal Emergency Management Agency (FEMA) Hazard Mitigation Grant Program (HMGP) fund to complete the Local Hazard Mitigation and Climate Adaptation Plan Integration and Update.

12. Resolution Requesting that the State of California Department of Transportation (CalTrans) Restrict Parking along State Highway 9 (CM/PR) Resolution No. NS-30,299 was adopted requesting that the State of California Department of Transportation (CalTrans) restrict parking along State Highway

9. 13. Proposed Expansion of Marine-Protected Areas, and Removal of One-Mile Buoy (CN)
Motion carried to:
 Oppose, unless amended, the petition pending at the California Fish and Game Commission to modify the California Marine Protected Areas Network to enhance protections for California’s kelp forests;
 Oppose the proposed action by the United States Coast Guard to remove the One-Mile Buoy; and
 Direct the Mayor to convey the position of the City of Santa Cruz on these two items, to the appropriate legislative delegation, and to the California Fish and Game Commission, Marine Resources Committee.

14. Support for Establishing a Regional Program of All-Inclusive Care for the Elderly (PACE) to Provide High-Quality Health Care Services to Low-Income Seniors (CN)
Motion carried to direct the Mayor to send a letter to the California Department of Health Care Services in support of GoldenPACE Health’s application to establish a regional Program of All-Inclusive Care for the Elderly (PACE) for Santa Cruz, San Benito, and Monterey Counties, as outlined in the agenda report.

9.8 March 12, 2024 CITY COUNCIL MINUTES 6761
Consent Agenda (continued)

15. Approve the Purchase of Seven (7) Physio-Control LifePak 15 Heart Monitor Electrocardiogram (EKGs) (FD)
Motion carried to:
 Approve the purchase of Seven (7) Physio-Control LifePak 15 Heart Monitor Electrocardiogram (EKGs), charging and accessory packages for a total cost of $191,776; and
 Adopt Resolution No. NS-30,300 to transfer $106,000 from the City of Santa Cruz Fire Department Public Safety Impact Fee Fund 217 into the FY 2024 budget to cover a portion of the purchase of the equipment, with the remainder allocated from Fire’s FY 2024 operating budget, and to authorize the appropriation of funds for the purchase of EKGs through the Santa Cruz County Emergency Medical Services Integration Authority (EMSIA).

16. Liability Claims Filed Against the City of Santa Cruz (FN) Motion carried to, based on staff recommendation:
1) Reject the claim of Robert David Worel;
2) Return as late, the claim of Sean M. Bergman; and
3) Deny application by Lisa Foster for leave to present a late claim.

9.9 March 12, 2024 CITY COUNCIL MINUTES 6762
Consent Agenda (continued)

17. University Tank No. 4 Replacement Project (c701505) – Approval of Plans and Specifications and Authorizing to Advertise for Bids and Award of Contract (WT) Motion carried to:
 Approve the plans and specifications for the University Tank No. 4 Replacement Project (c701505) and authorize staff to advertise for bids and the City Manager, or designee, is hereby authorized and directed to execute the contract in a form approved by the City Attorney and as authorized by Resolution No. NS-27,563;
 Authorize the City Manager, or designee, to execute a Work Agreement and Grant of Easement and Agreement between the City of Santa Cruz and Regents of the University of California in a form approved by the City Attorney;
 Find the University Tank No. 4 Replacement Project exempt under the California Environmental Quality Act and allow staff to file a formal Notice of Exemption; and
 Authorize the Water Director to approve change orders for the University Tank No. 4 Replacement Project for amounts that are within the approved budget.

18. Purchase of Real Property Necessary for Brackney Landslide Area Pipeline Risk Reduction Project: Assessor’s Parcel Number 072-174-07, Owned by Shane M.

Kavanagh and Cassondra T. Kavanagh (WT)
Resolution No. NS-30,301 was adopted authorizing and directing the City Manager or his designee to execute a purchase sale agreement, in a form approved by the City Attorney, between the City of Santa Cruz and Shane M.

Kavanagh and Cassondra T. Kavanagh for the easements located in Ben Lomond, CA near Highway 9 between Glen Arbor Road and Brackney Road for a permanent easement and two temporary easements on APN 072-174-07 for the Brackney Landslide Area Pipeline Risk Reduction Project.

End Consent Agenda

9.10 March 12, 2024 CITY COUNCIL MINUTES 6763
Public Hearings

19. 2024-2025 U.S. Department of Housing and Urban Development (HUD) Annual Action Plan and Amendment to the Citizen Participation Plan (ED) Principal Management Analyst J. Mellor and Housing and Community Development Manager J. de Wit gave a presentation and responded to Council questions.

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

Mayor Keeley closed the public comment period.

MOTION: Councilmember Watkins moved, seconded by Councilmember Kalantari-Johnson, to:
 Accept the staff funding recommendations for the 2024-2025 U.S.

Department of Housing and Urban Development (HUD) Annual Action Plan for both Community Development Block Grant (CDBG) and Home Investment Partnerships Program (HOME), with the following amendment:
 Approve moving $20,000 from the 100% Affordable Library and Housing Project to the HOME Security Deposit Program, bringing that total to $100,000. If the Housing Authority is unable to do so, the $20,000 will remain with the 100% Affordable Library and Housing Project and the approved amount for HOME Security Deposit Program would be $80,000, and the 100% Affordable Library and Housing Project would be $1,675,656.
 Amend the Citizen Participation Plan (CPP) to reflect the required 30-day comment period for amendments to Annual Action Plans and Consolidated Plans as well as clarifying copies of these amendments will be submitted to HUD via their online submittal system.

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.

Council took a break at 2:52 p.m. and returned at 3:05 p.m.

9.11 March 12, 2024 CITY COUNCIL MINUTES 6764
Public Hearings (continued)

20. Citywide in the Coastal Zone (Application No. CP23-0176) – Appeal of the Planning Commission’s Approval of a Coastal Permit for Continued Implementation of the Oversized Vehicle Ordinance in the Coastal Zone, Initially Implemented Pursuant to Conditions of Approval of Coastal Development Permit (CDP) A-3-STC-22-0018 Approved by the California Coastal Commission. The appealed Planning Commission Approval: (1) Authorizes the City to Continue Implementation of Ordinance No. 2021-20, as Amended by Ordinance No. 2023-08 and Codified in Municipal Code Sections 10.04.065,

10.04.085, 10.04.104, 10.04.106, 10.04.165, 10.40.120, 10.41.060, and

16.19.070, Including, but not Limited to, Restrictions on Overnight Parking of Oversized Vehicles (“OVs”) and a Prohibition Against Parking of Unattached Trailers; (2) Provides for Continued Operation of the City’s Safe Parking Program; and (3) Accommodates Potential Future Minor Modifications to the City’s Safe Parking Program and OV Regulations, Including Potential Modifications to its OV Residential Parking Permit Program. Location:

Throughout the Coastal Zone. CEQA: Not a project Pursuant to CEQA Section 15378; Statutory Exemptions, categorical exemptions, and general rule/common sense exemption. Applicant: City of Santa Cruz (PL) Senior Planner T. Maier and Director of Planning and Community Development L. Butler gave a presentation and responded to Council questions.

Appellants Joy Schendledecker and Reggie Meisler spoke.

Homelessness Response Manager L. Imwalle responded to Council questions.

Chief of Police B. Escalante responded to Council questions.

At 4:20 p.m., Mayor Keeley paused this item to hear item #4 and returned to item #20 at 4:33 p.m.

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

Margaret Gannon
Karl James Fox
Unidentified person
Serge Kagno
Robert Norse
Unidentified person
Mayor Keeley closed the public comment period.

Appellant Reggie Meisler provided a rebuttal.

9.12 March 12, 2024 CITY COUNCIL MINUTES 6765
Public Hearings (continued)

20. Planning Commission OVO Appeal (PL) (continued)
MOTION: Councilmember Kalantari-Johnson moved, seconded by Vice Mayor Golder, to:
1) Adopt Resolution No. NS-30,302 to deny the appeal and uphold the Planning Commission’s acknowledgement of the environmental determination and approval of the Coastal Permit, based on the findings listed in the resolution and the Conditions of Approval, with the following additions to the conditions:
 OVO outreach documents, including the City’s website regarding the Oversized Vehicle Ordinance, shall indicate the following: Oversized vehicle overnight parking space is available. If oversized vehicle overnight parking space fills up, eligible applicants will be given an onstreet permit, which will protect the vehicle from being ticketed under Santa Cruz Municipal Code (SCMC) 10.40.120(a) (prohibition against oversized vehicle on-street parking from 12:00 AM—5:00 AM).  Continue to maintain an easily accessed disability grievance/reasonable accommodation process to consider reasonable accommodations for those with disabilities.
 Motorized vehicles with attached trailers are eligible for participation in the Tier 2 safe parking program.
 The OVO website and the outreach materials or tickets themselves will include information identifying that payment plans are available for OVO tickets.
 The City shall conduct proactive outreach to those living in oversized vehicles, including 1) provision of information regarding the City’s Safe Parking programs and how to register, and 2) the manner by which one may submit a disability accommodation request to the City.  The City shall recommend that any hearing officer overseeing parking ticket appeals should waive any OVO parking tickets received within a 72-hour period during which time the appellant provides evidence that their vehicle was disabled and unable to relocate.

9.13 March 12, 2024 CITY COUNCIL MINUTES 6766
Public Hearings (continued)

20. Planning Commission OVO Appeal (PL) (continued)
MOTION (continued):
2) Direct staff to report back to the OVO subcommittee and Stakeholder group regarding the actions that are in process such as 1) a detailed outgoing message for the overnight parking program regarding where individuals can park on an emergency basis calling during non-business hours, and 2) progress on a mobile dumping station.

Parking Program Manager G. Hussey responded to Council questions.

ACTION: The motion carried with the following vote.

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

NOES: Councilmember Brown.

ABSENT: None.

DISQUALIFIED: None.

General Business

21. Ordinance Amending Santa Cruz Municipal Code Chapter 13.12, Use of Skateboards and Bicycles at City-Owned Parks and Recreational Facilities (CA/PR)
Deputy City Attorney S. Duck gave a presentation.

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 Brown, to introduce for publication Ordinance No. 2024-07 amending Chapter 13.12, Use of Skateboards and Bicycles at City-Owned Parks and Recreational Facilities, of the Santa Cruz Municipal Code relating to Cityowned parks and recreational facilities in response to amendments to Health and Safety Code section 115800.

9.14 March 12, 2024 CITY COUNCIL MINUTES 6767
General Business

21. Ordinance Amending Santa Cruz Municipal Code Chapter 13.12, Use of Skateboards and Bicycles at City-Owned Parks and Recreational Facilities (CA/PR) (continued)
ACTION: The motion carried unanimously with the following vote.

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

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

22. Parks and Recreation FY 2023 Annual Report and FY 2024 Progress Update (PR) Director of Parks and Recreation T. Elliot and Principal Management Analyst L.

Bass gave a presentation and responded to Council questions.

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

Eric Grodberg
Mayor Keeley closed the public comment period.

MOTION: Councilmember Brown moved, seconded by Councilmember Kalantari-Johnson, to accept the FY 2023 Parks and Recreation Annual Report and direct department staff to continue their evaluation of service levels, service offerings, and associated resources in the delivery of FY 2024 goals, including continued work on the Harvey West Pool Master Plan and efforts to activate Neary Lagoon.

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.

Staff Assignments:
 Collaborate with outside partners to look into making an MOU in order to provide public access to the pools at local schools.
 Provide an update to Council in 4 months regarding the Harvey West Pool.

9.15 March 12, 2024 CITY COUNCIL MINUTES 6768
Adjournment – Vice Mayor Golder moved, seconded by Councilmember Newsome, to adjourn. By consensus City Council adjourned at 6:06 p.m.

Respectfully Submitted:

Julia Wood, Deputy City Clerk Administrator
Attest:

Bonnie Bush, City Clerk Administrator
Approved:

Fred Keeley, Mayor

9.16 City Council

AGENDA REPORT
DATE: 03/07/2024
AGENDA OF: 03/26/2024
DEPARTMENT: Economic Development and Housing
SUBJECT: Affordable Housing Sustainable Communities (AHSC), Infill Infrastructure Grant (IIG) and Set-Aside Administrative Approvals (EDH) RECOMMENDATION: Motion to:
1) Authorize the City Manager to execute project loan contracts, loan agreements and related loan and grant documents related to the City’s Federal Set-Aside for Pacific Station North and the Downtown Library Affordable Housing Project;
2) Authorize the City Manager to execute program/project contracts, loan agreements and related loan documents with Affordable Housing Sustainable Communities (AHSC) and Infill Infrastructure Grants (IIG) and related documents for distributions of funds to the projects and programs; and
3) Adopt a resolution approving the FY 2024 AHSC, IIG and Set-Aside budget adjustment allocating AHSC, IIG and Set-Aside funds and appropriating the funds in the FY 2024 budget.

BACKGROUND: Redevelopment of Pacific Station North (Project) is a public-private partnership among the City, the Santa Cruz Metropolitan Transit District (METRO), and Eden/For the Future (FTF) Housing. Likewise, the Downtown Library Affordable Housing Project is a partnership between the City and Eden/FTF. To bring more than 240 100% affordable units to fruition requires a diverse mix of grant funding which has been applied for and awarded over several years including: State funding from the AHSC and IIG Programs, HOME and HOME-ARP funds, affordable housing tax credits, tax-exempt bond financing, Local Housing Trust Fund (LHTF), Federal Set-Aside, and other conventional financing.

The awarded AHSC and IIG funding, with grant agreements distributed by State Housing and Community Development (HCD) in February 2024, also provides funding for City infrastructure, including: the Rail Trail, matching leverage for needed sewer improvements, downtown traffic improvements, parks and paseos, and City programs as outlined in the attached budget adjustment and detailed in the discussion section below.

Affordable Housing and Sustainable Communities (AHSC) Grant Funding for Pacific Station North, as outlined in the attached budget adjustment was awarded in 2021. The California Strategic Growth Council (SGC) and the Department of Housing and Community Development (HCD) issued a Notice of Funding Availability (NOFA) dated

10.1 February 26, 2021, for the availability of approximately $405 million in funding for the Affordable Housing and Sustainable Communities (AHSC) Program, and approximately ~$29M was awarded to Pacific Station North. $20 Million of the AHSC funding is going straight to the affordable housing developer (Eden/FTF) for development of affordable housing on the site, and ~$9M is coming to the City for related transit infrastructure activities, as outlined in the application and allocated in the attached budget adjustment. Note: Over $30 million of AHSC funding was also awarded to the DLAHP, and that grant agreement is expected to be executed, authorizing budget allocation in the next year, and will come to council as a separate item.

Infrastructure and Infill Grant (IIG) Program
In 2021, with Council direction, staff also applied for IIG funding for the Pacific Station North project. The IIG Program’s primary objective is to promote infill housing development and project areas to “set the table” for development to occur. Under the IIG Program, grants are available as gap funding for infrastructure necessary to enable residential or mixed-use development within Qualifying Infill Projects (QIPs) or Areas (QIAs). Both QIPs and QIAs must have either been previously developed or be largely surrounded by development. Eligible improvements include development or rehabilitation of Parks or Open Space, water, sewer or other utility service improvements, streets, roads, certain parking structures, transit linkages, transit shelters, traffic mitigation features, sidewalks, and streetscape improvements in the qualifying area. Approximately $20M of IIG funding was awarded to the project and allocated as outlined in the attached budget adjustment.

Congressional Set-Aside Funds
Congressional set-aside funds were awarded in December 2022, in the Consolidated Appropriations Act of 2023 in the amounts of $2M each for both the Pacific Station North project and the Downtown Library Affordable Housing Project. These congressionally directed grants were made through the Economic Development Initiative, the Community Project Fund (EDI/CPF) administered by the Department of Housing and Urban Development (HUD).

Funding for both projects will be made available as loans to cover the costs of non-residential buildouts, which will be City controlled assets once built.

DISCUSSION: IIG Funding Summary
The attached budget adjustment outlines approved funding from State HCD for IIG funding as follows :
• $2.5 million for Public Work’s CIP project c401707 (Downtown SLR Drainage System Assessment) provides leveraging as a matching grant to secure additional funds for this project
• $3 million for Public Work’s CIP project c401903 (Downtown Intersection Improvements) improves City infrastructure and responds to the increased demands of the greater density of traffic with additional units going up in the downtown area • ~$5.36 million for parks and paseo improvements in the downtown area related to the project
• $5.8 million to the affordable housing developer, in the form of a loan • $650K for project management, grant administration and design soft costs AHSC Funding Summary
The attached budget adjustment outlines approved funding from State HCD for AHSC funding as follows, Note: an additional $20.1 million of AHSC funding is going straight to the developer for affordable housing and transit passes for low-income tenants:

10.2 • $400K for Public Work’s CIP project c401413 (Rail Trail Segment 7) • $200K for Digital Nest and City of Santa Cruz Workforce Development programs • $200K for project management and grant administration • ~$1.175 million for Maple Alley Paseo between Pacific Station North and Pacific Station South affordable housing projects
• ~$5.8 million for the new Metro facility
CPF Set-Aside Fund
The attached budget adjustment outlines awarded funding from the CPF Set-aside funding as follows:
• $2 million in the form of a construction loan for Pacific Station North • $2 million in the form of a construction loan for the Downtown Library Affordable Housing Project
Health in All Policies (HiAP)
HiAP is a collaborative approach to improving the health of all people by incorporating health considerations into decision-making across sectors and policy areas. HiAP is based on 3 pillars:
equity, public health, and sustainability. The goal of HiAP is to ensure that all decision-makers are informed about the health, equity, and sustainability impacts of various policy options during the policy development process.

With the Pacific Station North and Library projects located downtown these funding sources and related improvements will support a sustainable and healthy lifestyle by creating more housing, improving infrastructure near public transit, and allowing residents to walk and ride to the job center and commercial uses. Both sites will be near the new Metro station, allowing residents and downtown visitors to use public transit to gain access to other areas of the city, thereby further promoting sustainable transportation use. By providing 100% affordable rental apartments, this will not only help the City with a more sustainable supply of rental housing, but will also help create a more inclusive equitable community.

FISCAL IMPACT: The recommended actions have no fiscal impact on the General Fund as all funding is provided by external grant sources. The program and project costs will be funded by AHSC, IIG and CPF Set-Aside Funding.

Prepared By:

Tiffany Lake
Development Manager
Submitted By:

Bonnie Lipscomb
Economic Development and
Housing Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. BUDGET ADJUSTMENT.PDF

10.3 City of Santa Cruz

BUDGET ADJUSTMENT REQUEST
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 Clear Form
2024
03/26/2024
Budgeting of awarded funding from State Housing and Community Development (HCD) Affordable Housing Sustainable Communities (AHSC), Infill Infrastructure Grants (IIG) and Federal Congressional Projects Fund (CPF) Set-Aside Funding in FY24 for downtown area improvements to multiple projects.
277-51-81-990-43190 g512409-111-1074-0 Pac North Set-Aside Loan 2,000,000 277-51-81-990-43190 g512410-111-1074-0 Library Set-Aside Loan 2,000,000 137-51-81-5211-43290 g512403-966-0-0 ED AHSC Rail Trail 400,000 137-51-81-5211-43290 g512405-216-2273-0 AHSC Project Management and Admin 200,000 137-51-81-5211-43290 g512406-216-2273-0 AHSC Metro 5,840,633 10,440,633
277-51-80-9990-56960 g512409-100-2020-0 Pac North Set-Aside Loan- Loans and Grants 2,000,000 277-51-80-9990-56960 g512410-100-2020-0 Library Set-Aside Loan-Loans and Grants 2,000,000 137-00-00-0000-59103 g512403-100-2020-0 ED AHSC Rail Trail- Transfer to CIP 400,000 137-51-80-5212-52121 g512405-100-2010-0 AHSC Project Management and Admin- Interfund Labor Charge 165,000 137-51-81-5211-52199 g512405-100-2020-249 AHSC Project Management and Admin- Other Professional and Tech. 35,000 137-51-81-5211-56960 g512406-100-2020 AHSC Metro-Loans and Grants. 5,840,633 See Additional Lines on following pages
10,440,633
0 Tiffany
Lake
Digitally signed
by Tiffany Lake
Date: 2024.03.13
12:10:55 -07'00'
Bonnie
Lipscomb
Digitally signed by Bonnie Lipscomb
DN: cn=Bonnie Lipscomb, o, ou,
[email protected],
c=US
Date: 2024.03.13 12:16:33 -07'00'
Edward
Torres
Digitally signed by Edward Torres
DN: cn=Edward Torres, o=City of Santa Cruz, ou,
[email protected], c=US
Date: 2024.03.13 12:59:58 -07'00'
Elizabet
h Cabell
Digitally signed by
Elizabeth Cabell
Date: 2024.03.13
13:13:29 -07'00' 10.4
Index Project Number GL Number Project Name Amount Notes 1 g512407-216-2273-0 137-51-81-5211-43290 AHSC Maple Alley 1,175,307 2 p512401-216-2273-0 137-51-81-5211-43290 AHSC-PN Program Grants 200,000 3 g512401-216-1057-0 137-51-81-5212-43290 ED IIG Sewer Match 2,500,000 4 g512402-216-1057-0 137-51-81-5212-43290 ED IIG Traffic Improvements 3,000,000 5 c512402-216-1057-0 311-51-81-5212-43290 ED IIG Paseos and parks 5,365,973 6 g512404-216-1057-0 137-51-81-5212-43290 IIG Project Management and Admin 650,000 7 g512408-216-1057-0 137-51-81-5212-43290 IIG Pac Station North Housing Loan 5,800,000 8 c401413-966-0-0 311-00-00-0000-49179 MB Sanctuary Scenic Trail - Rail Trail Segment 7 400,000 9 c401707-966-0-0 752-00-00-0000-49179 Downtown SLR Drainage System Assessment 2,500,000 c401707-216-1057-0 752-40-61-7552-43267 Downtown SLR Drainage System Assessment -2,250,000 Decrease direct IIG funding 10 c401903-966-0-0 221-00-00-0000-49179 Downtown Intersection Improvements 3,000,000 Project Number GL Number Project Name Amount Notes
1 g512407-100-2020-0 137-51-81-5211-56960 AHSC Maple Alley- Loans and Grants 1,175,307 2 p512401-100-2020-0 137-51-81-5211-56960 AHSC-PN Program Grants- Loans and Grants 200,000 3 g512401-100-2020-0 137-00-00-0000-59141 ED IIG Sewer Match-Transfer to Stormwater Overlay 2,500,000 4 g512402-100-2020-0 137-00-00-0000-59107 ED IIG Traffic Improvements- Transfer to Gas Fund 3,000,000 5 c512402-100-2020-0 311-51-80-9990-57390 ED IIG Paseos and parks- Other Infrastructure 5,365,973 6 g512404-100-2010-0 137-51-80-5212-52199 IIG Project Management and Admin- Other Profess and Tech 310,000 g512404-100-2020-249 137-51-80-5212-52121 IIG Project Management and Admin- Interfund Labor Charge 340,000 7 g512408-100-2020-0 137-51-81-5211-56960 IIG Pac Station North Housing Loan- Loans and Grants 5,800,000 8 c401413-100-2020-0 311-40-64-9330-57307 MB Sanctuary Scenic Trail - Rail Trail Segment 7 - Pedestrian/Bike Systems 400,000 9 c401707-100-2020-0 752-40-61-7552-57311 Downtown SLR Drainage System Assessment - Flood control and storm drainage 250,000 10 c401903-100-2020-0 221-40-64-9320-57304 Downtown Intersection Improvements-Street systems 3,000,000 Total Revenue 22,341,280
Total Expenses -22,341,280
Net 0

10.5 10.6
City Council

AGENDA REPORT
DATE: 03/07/2024
AGENDA OF: 03/26/2024
DEPARTMENT: Economic Development and Housing
SUBJECT: Three-Month Extension of Lease for Central Home Supply (EDH) RECOMMENDATION: Motion authorizing the City Manager to execute an amendment to the Lease Agreement with Santee Corporation dba Central Home Supply, providing a three-month extension of the lease term for the property located at 744 and 808 River Street, in a form approved by the City Attorney.

BACKGROUND: In early 2022, the City acquired the property at 744 and 808 River Street on which Central Home Supply, a landscaping and building materials supplier, is located. The owners of the property were reluctant to sell and the City proceeded with an eminent domain lawsuit, initially intending to acquire only the front portions of the properties necessary to construct the roadway improvements at the intersection of Highways 1 and 9.

After it was determined that the business was unlikely to be able to continue to operate profitably on the remaining property, the entirety of the property was purchased, anticipating it would ultimately be incorporated into a future mixed use affordable housing project. The eminent domain lawsuit was settled through a Purchase and Sale Agreement wherein the City purchased the entirety of the property and leased it back to Central Home Supply at no charge, for two years, allowing the business to gradually wind down its operation. The two-year lease period expired on March 2, 2024.

DISCUSSION: With an unexpected increase in business during the pandemic, the business was able to continue to operate, and in recent months discussions ensued between the owners and City staff regarding whether Central Home Supply wanted to extend their lease term and continue to operate. Near the end of February, the owners advised staff they would vacate the premises, requesting at least two additional months to remove their products, fixtures, and equipment to their Scotts Valley site.

ENVIRONMENTAL IMPACT: Central Home Supply has operated at its current site since 1974 and continued occupancy for an additional three months is consistent with the permitted uses and will have little impact on the environment.

HEALTH IN ALL POLICIES: The proposed lease extension supports continued goodwill in the community after the tenant’s land was acquired through eminent domain for future construction of affordable housing to serve the community. The lease extension helps preserve successful business operations while the tenant transfers equipment and products to their existing Scotts

11.1 Valley location and will not impact development timelines as the affordable housing is contingent upon acquiring adjacent property, leveraging City resources to bring the greatest number of affordable housing units to the site.

FISCAL IMPACT: Extending the lease term by three months, under the same terms as the existing conditions, will have no fiscal impact on the City’s General Fund.

Prepared and Submitted By:

Bonnie Lipscomb
Economic Development and
Housing Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. AMENDMENT TO LEASE AGREEMENT.PDF

11.2 1 of 2

FIRST AMENDMENT TO LEASE AGREEMENT
City of Santa Cruz and Santee Corporation, dba Central Home Supply THIS FIRST AMENDMENT to the Lease Agreement dated March 2, 2022 (the “Agreement”), is entered into on _____________________ , 2024, by and between the City of Santa Cruz, a municipal corporation (“Landlord”), and Santee Corporation, dba Central Home Supply (“Tenant”). Landlord and Tenant are hereinafter referred to collectively as the “Parties” and individually “Party”.

RECITALS
A. Landlord and Tenant entered into that certain Lease Agreement dated March 2, 2022 (“Agreement”), pursuant to which Tenant leases from Landlord the premises located at 808 River Street and a portion of the premises located at 744 River Street, Santa Cruz, California (collectively “Premises”).

B. The termination date of the Agreement is defined as March 2, 2024.

C. Tenant is vacating the Premises and requires additional time to remove products, fixtures, and equipment from the Premises.

Landlord and Tenant now wish to amend the Agreement to allow Tenant an additional three months to complete its move.

NOW THEREFORE, in consideration of the mutual promises, terms, conditions and covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually agreed that the Agreement is hereby amended as follows:

1. Landlord grants Tenant the right to continue use of the property through June 2, 2024 and Section 1.03 of the Agreement is deleted in its entirety and replaced with the following:

1.03. Term. Two years and three months after the date of commencement, ending June 2, 2022.

2. All of the above recitals are incorporated herein and made a part hereof, as if fully set forth in the text of this First Amendment.

3. Unless otherwise provided in this First Amendment, all defined terms used herein shall have the meanings ascribed to them in the Agreement.

4. Except as modified in this First Amendment, all of the provisions, terms, conditions, representations and warranties contained in the Agreement shall remain in full force and

11.3 2 of 2
effect and are hereby ratified, confirmed, reaffirmed and republished in all respects and the Agreement is deemed modified to reflect the changes set forth in this First Amendment.

The parties have executed this Agreement as of the date first written above.

Approved as to Form
____________________________________
Anthony P. Condotti, City Attorney
TENANT:

SANTEE CORPORATION DBA

CENTRAL HOME SUPPLY
_______________________________
Raymond W. Santee, President
________________________________
Date
LANDLORD:

CITY OF SANTA CRUZ
_______________________________
Matt Huffaker, City Manager
_________________________________
Date

11.4 City Council

AGENDA REPORT
DATE: 03/07/2024
AGENDA OF: 03/26/2024
DEPARTMENT: Economic Development and Housing
SUBJECT: Griffin Structures: Owner’s Representative for the Downtown Library Affordable Housing Project – Change Order (EDH)
RECOMMENDATION: Motion to approve a purchase order change order with Griffin Structures, Inc. (Santa Clara, CA) for serving as the Owner’s Representative on the Downtown Library Affordable Housing Project (DLAHP) and authorize the City Manager or his designee to execute a change order in the amount of $111,115 and any related documents, in a form approved by the City Attorney. The Economic Development and Housing Director is further authorized to execute future change orders within the approved budget.

BACKGROUND: On October 27th, 2020, City Council awarded a contract for the Downtown Library Affordable Housing Project Owner’s Representative for phase one to Griffin Structures, Inc. (Griffin) following an RFP process. The Owner’s Representative serves as a project manager, overseeing the budget and schedule, liaising with contractors, architects, and the affordable housing developer team, while representing the City’s interests and goals throughout the project. Over the last three and a half years, Griffin has been an integral part of the progress made on this significant city development project. In addition to their core project management support, Griffin has played a key role in the application process for multiple grant opportunities which has resulted in the project being awarded a $33.5 million dollar award from the Affordable Housing Sustainable Communities (AHSC) program. The project is divided into two phases:
phase one which includes pre-design, design, permitting, grant support, and other various predevelopment activities; and phase two which includes construction and construction management.

Phase one has continued to progress through 2024 and is anticipated to conclude in the first quarter of 2025; at which time phase two (construction and construction management), will commence. During phase one Griffin has provided critical project support as the project moved through the four phases of design (concept design, schematic design, design development, and construction documents). The project is currently in the construction documents phase of design and the expertise of Griffin has been critical to the ongoing project success. Their continued support will be critical as construction documents become finalized and building permits are secured for construction.

DISCUSSION: The project continues to make progress on construction ready documents following the DLAHP approval of project entitlements by the City Council on March 14th, 2023.

This approval of project entitlements was a culmination of an extended public engagement

12.1 process that was originally anticipated to conclude in 2022 but extended through March of 2023 in part due to the high level of public interest in the project. The project team anticipates a submission / application for the required building permits in May of 2024 with anticipated approval by the end of the year. The requested change order funds would provide the necessary funds to complete the remaining phase one work being provided by Griffin prior to construction commencing and will additionally cover ongoing grant submission and administration support not included in the original project scope.

The project change order history is:

Original Purchase Order $240,000.00
Amendment I $ 23,885.00
Amendment II (this agenda report) $111,115.00
$375,000.00
FISCAL IMPACT: Sufficient appropriations for this contract change order are already included in the approved Capital Investment Program (CIP) budget for the Downtown Library Affordable Housing Project, c512002. Staff recommends authorization to execute the purchase order change order with Griffin in the amount $111,115. This additional funding will bring the contract total with Griffin to $375,000.

Prepared By:

Brian Borguno
Development Manager
Submitted By:

Bonnie Lipscomb
Economic Development and
Housing Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. GRIFFIN STRUCTURES, INC PHASE I CONTRACT.PDF

12.2 12.3

12.4 12.5

12.6 12.7

12.8 12.9

12.10 12.11

12.12 12.13

12.14 12.15

12.16 12.17

12.18 12.19

12.20 12.21

12.22 DATE PO NUMBER
Account Number Amount Account Number Amount
TOTAL
Quantity Unit Description Unit Price Ext. Price

PURCHASE ORDER
Project Number Project Number
IRVINE, CA 92618
80-21084

GRIFFIN STRUCTURES INC
1 TECHNOLOGY DR
BLDG I, STE I829

THIS IS A REVISED PURCHASE ORDER
Owner's Representative for the Library Mixed Use Project. 240,000.00 CHANGE ORDER #1: EXTENDED PRECONSTRUCTION FEES 23,885.00 7/1/2023

CITY OF SANTA CRUZ
337 LOCUST ST
SANTA CRUZ, CA 95060

DESTINATION
NET 30

BORGUNO, BRIAN

ECONOMIC DEVELOPMENT
041828

NOT APPLICABLE
M30 10/27/20
(949) 497-9000 217 Ship Via:

FOB Point:

Terms:

Contract Number:

Contact:

Contact Phone:

Special Inst:

Vendor Phone:

Vendor Fax:

SHIP TO:

VENDOR:
(831) 420-5316
Email: [email protected]

CITY OF SANTA CRUZ
337 LOCUST ST
SANTA CRUZ, CA 95060
263,885.00

ECONOMIC DEVELOPMENT

VENDOR COPY
The City of Santa Cruz purchase order terms and conditions shall govern this purchase order. Review the terms and
conditions at www.cityofsantacruz.com/POterms. A hard copy of the terms and conditions can be obtained by contacting the Purchasing Division at 831/420-5080.

BILL TO:

12.23 12.24

12.25 GRIFFIN STRUCTURES
AMENDMENT 02 – PRECONSTRUCTION SCHEDULE EXTENSION – 2024 - 2025

DOWNTOWN LIBRARY & AFFORDABLE HOUSING PROJECT

CITY OF SANTA CRUZ
03/18/2024
Griffin Structures’ Fee Proposal is based on all reasonable costs necessary to perform extended preconstruction services for the City of Santa Cruz’s Downtown Library & Affordable Housing Project as projected in 2024 and through March 2025. For these requisite services, Griffin Structures proposes the following additional Time & Materials Not to Exceed Fee:

Project Management: $ 105,875
Reimbursable Expenses: $ 5,240
Total $ 111,115
All proposed hourly rates are fully burdened and include overhead profit, taxes, and benefits. The hours identified for each individual employee and task are estimates only and are not to be construed as not to exceed hours for any individual task, phase, or time-period. We reserve the right to reallocate hours between staff members and tasks to accomplish the overall objectives and requirements of the project.

SCOPE OF SERVICES
This Add Service reflects an extension of the preconstruction schedule between what was last projected in June 2021 and the currently anticipated timeline, as substantially dictated by the Affordable Housing Developer’s design and funding schedule. In 2021 it was projected that the preconstruction phase of the project would conclude in December 2022. Based on recent discussions, it is now projected that the preconstruction phase will continue until March 2025, to align with what is expected to be a commencement of Shell & Core construction in Q2 2025.

Amendment 01 provided for continued preconstruction services to date. The remaining 2024/2025 preconstruction tasks and their anticipated schedule are highlighted in the attached exhibit.

12.26 City of Santa Cruz
Downtown Library and Affordable Housing Project
Preconstruction Schedule Extension
2024 - 2025
Add Service Request 02
Extended Preconstruction Schedule - 2024 / 2025

MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR

PRECONSTRUCTION TASKS
Shell & Core Construction Documents & Coordination 1 1 1 1 1 1 Library TI Construction Documents 1 1 1 1 1 1
Library TI Constructability Review 1 1
Library TI Permitting 1 1 1 1 1 1 1
Library TI RFQ 1 1 1 1
Shell & Core Construction 1 1 1
2024 / 2025
TOTALS
Principal In Charge - Roger Torriero - - - - - - - - - - - - - 0 Project Executive - Jon Hughes - - - - - - - - - - - - - 0 Owner's Representative - Tom Ottenstein 35 35 35 35 35 85 60 40 60 40 40 60 45 605 Principal In Charge - Roger Torriero $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - No Charge Project Executive - Jon Hughes $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - No Charge Owner's Representative - Tom Ottenstein $ 6,125 $ 6,125 $ 6,125 $ 6,125 $ 6,125 $ 14,875 $ 10,500 $ 7,000 $ 10,500 $ 7,000 $ 7,000 $ 10,500 $ 7,875 $ 105,875 $ 6,125 $ 6,125 $ 6,125 $ 6,125 $ 6,125 $ 14,875 $ 10,500 $ 7,000 $ 10,500 $ 7,000 $ 7,000 $ 10,500 $ 7,875 $ 105,875 PROJECT PHASE 2024

MONTHLY STAFFING HOURS
2025
Griffin Structures 03/18/2024 12.27

12.28 City Council

AGENDA REPORT
DATE: 03/06/2024
AGENDA OF: 03/26/2024
DEPARTMENT: Finance
SUBJECT: Liability Claims Filed Against the City of Santa Cruz (FN) RECOMMENDATION: Motion to reject the liability claims of 1) Liberty Mutual Insurance Company, and 2) CSAA Insurance Exchange, based on staff recommendation.

BACKGROUND: N/A
DISCUSSION:

I. Claims to be rejected:

1. Claimant: Liberty Mutual Insurance Company
Date of occurrence: 10/16/2023
Date of claim: 02/07/2024
Amount of claim: $ 626.34
Claimant seeks reimbursement for medical expenses allegedly caused by a trip and fall.

Self-Represented

2. Claimant: CSAA Insurance Exchange
Date of occurrence: 2/4/2024
Date of claim: 2/23/2024
Amount of claim: Unspecified
Claimant seeks reimbursement for damages allegedly resulting from a falling tree in unincorporated Santa Cruz County.

Self-Represented
FISCAL IMPACT: No fiscal impact.

Prepared By:

Ross Brandon
Risk & Safety Manager
Submitted By:

Elizabeth Cabell
Finance Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

13.1 City Council

AGENDA REPORT
DATE: 03/07/2024
AGENDA OF: 03/26/2024
DEPARTMENT: Finance
SUBJECT: Statement of Investment and Portfolio Policy (FN) RECOMMENDATION: Motion to approve the Statement of Investment and Portfolio Policy.

BACKGROUND: Pursuant to California Government Code Section 53646, the Director of Finance may annually render to the City Council a statement of investment and portfolio policy, which the City Council is to consider at a public meeting.

DISCUSSION: The California Government Code restricts the types of investments that can be made by a municipal government, and the City’s investment policy further restricts the types of investment instruments that are allowed. Although not required, it is a recommended best practice to annually review the policy and present it to the City Council to confirm or amend the investment policy. It is important because it provides the framework for a prudent, low-risk investment program and serves a fundamental purpose in fulfilling the City’s fiduciary responsibilities. Safekeeping of cash and investments is one of the most important City responsibilities, and a well-developed investment policy serves to protect the City from potential losses stemming from unsuitable investment practices.

INVESTMENT STRATEGY
The overall strategy of the investment program is to protect the City’s assets, to maintain sufficient liquidity to meet operating cash requirements, and earn a reasonable market rate of return. This is accomplished by maintaining a portfolio of allowable investment instruments that have acceptable credit quality standards with maturities matching expected cash flow needs.

OBJECTIVES, RISK, & DIVERSIFICATION
The objectives of the proposed investment program are as follows in order of priority:
• Legality
• Safety of Principal
• Liquidity
• Yield
• Environmental and Local Investments
All investments contain an element of risk. The different types of risk include credit risk, concentration of credit risk, custodial credit risk, foreign currency risk, liquidity risk, interest rate risk, and reinvestment risk. The existing policy is designed to establish a very low tolerance for

14.1 risk with safety of principal being paramount, following only legality, as a guiding principle and objective. To protect the portfolio from various types of risk the investment policy requires diversification.

REVISIONS TO POLICY
Address the City’s environmental and local investment goals • Addition of a Socially Responsible/Sustainable Investment Parameters section to address the City’s Climate Action Plan and Health in All Policies (HiAP). • Addition of a Community Banking section to encourage investment with and support in local banking institutions.

Safely increase investment opportunities
• Expanding the list of permitted investments to meet California Code limits in order to have increased opportunities to safely diversify the portfolio thereby safely increasing the return potential in the Authorized Investments section.

The following chart summarizes the investment types and maximum allocations that are allowed by California Code, currently allowed by the City’s standing Investment and Portfolio Policy, and what is recommended in March 2024.
• Recommendation to change the current issuer limit of 25% on certain investment types to a 5% issuer limit for a majority of investment types in order to safely diversify the portfolio.

Address the use of an investment advisor
• In October 2023, after the completion of a competitive selection process and with the City Council’s approval, the City signed a contract with PFM Asset Management to serve as the City’s investment manager. Policy edits have been in the Sale of Securities, and Delegation of

14.2 Authority and Qualified Banks, Credit Unions, and Primary Dealers sections to address this relationship and PFMAM’s management of a portion of the City’s funds.

Staff recommends that City Council approve the Statement of Investment and Portfolio Policy with the recommended revisions.

FISCAL IMPACT: The changes to this policy do not require fiscal funding.

Prepared By:

Marisol Gómez
Assistant Director of Finance
Submitted By:

Elizabeth Cabell
Director of Finance
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. STATEMENT OF INVESTMENT AND PORTFOLIO POLICY.PDF

14.3 City of Santa Cruz
Statement of Investment and
Portfolio Policy
March 26, 2024

14.4 2
City of Santa Cruz
Statement of Investment and Portfolio Policy
Table of Contents
Policy................................................................................................................................. 3 Scope ................................................................................................................................ 3 Objectives ......................................................................................................................... 3 Delegation of Authority ...................................................................................................... 4 Investment Committee ...................................................................................................... 4 Prudence ........................................................................................................................... 4 Ethics and Conflicts of Interest.......................................................................................... 5 Internal Controls ................................................................................................................ 5 Socially Responsible/Sustainable Investment Parameters ............................................... 5 Community Banking ......................................................................................................... 5 Sale of Securities .............................................................................................................. 6 Portfolio Diversification...................................................................................................... 6 Authorized Investments ..................................................................................................... 6 Ineligible Investments ...................................................................................................... 11 Competitive Selection of Investment Instruments ........................................................... 11 Qualified Banks, Credit Unions, and Primary Dealers .................................................... 11 Safekeeping of Securities and Collateral Requirements ................................................. 12 Reporting Requirements ................................................................................................. 12 Compliance ..................................................................................................................... 12 Appendix A – Explanation of Allowable Investments ...................................................... 13 Appendix B – Investment Criteria .................................................................................... 18 Appendix C – Types of Investment Risk ......................................................................... 19

14.5 3
City of Santa Cruz
Statement of Investment and Portfolio Policy
March 26, 2024
POLICY
It is the policy of the City of Santa Cruz to meet the short and long-term cash flow demands of the City in a manner that will provide for the safety of principal and sufficient liquidity, while providing an investment return. The purpose of this Statement of Investment and Portfolio Policy is to outline a process for the investment of City funds in a prudent manner in order to meet City objectives.

In accordance with Section 53646 of the California Government Code (“Code”), the Director of Finance may annually render to the City Council and the Investment Committee a statement of investment policy, which the City Council shall consider at a public meeting.

Any changes in the policy shall also be considered by the City Council at a public meeting.

Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy. At maturity or liquidation, such moneys shall be reinvested only as provided by this policy.

SCOPE
This investment policy applies to activities of the City with regard to investing the financial assets of the following reporting entities:
 City of Santa Cruz, which includes the City acting in its capacity as Successor Agency to the former Redevelopment Agency of the City of Santa Cruz  City of Santa Cruz Public Financing Authority
 Santa Cruz Public Improvement Financing Corporation
 Library Joint Powers Authority
This policy, however, specifically excludes the employees' retirement and deferred compensation funds.

Bond proceeds shall be invested in accordance with the requirements and restrictions outlined in the bond documents and this Statement of Investment and Portfolio Policy.

OBJECTIVES
Funds of the City will be invested in accordance with California Government Code Sections 53600 et. seq. and the Statement of Investment and Portfolio Policy.

The objective of the Investment and Portfolio Policy is to meet the short and long-term cash flow demands of the City. The portfolio will be structured to provide the following (in order of priority):
 Legality
 Safety of Principal

14.6 4
 Liquidity
 Yield
 Local economic benefits generated by investing in local financial institutions

DELEGATION OF AUTHORITY
The Director of Finance, in the capacity of City Treasurer, is designated as the Chief Investment Officer of the City and is responsible for investment decisions and activities, under the direction of the City Manager. The Director of Finance shall develop and maintain written administrative procedures for the operation of the investment program by qualified Finance Department staff, consistent with the Statement of Investment and Portfolio Policy.

No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Director of Finance. The Director of Finance shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials.

The City may engage the services of an external investment advisor to assist in the management of the City's investment portfolio in a manner consistent with the City's objectives. Such external advisor may be granted discretion to purchase and sell investment securities in accordance with this investment policy. Such advisor must be registered under the Investment Advisers Act of 1940.

INVESTMENT COMMITTEE
There is hereby created an Investment Committee, consisting of the City Manager, the Director of Finance, Assistant Director of Finance, and investment staff. Members of the Investment Committee shall serve without compensation, and shall meet as needed. The Investment Committee shall include in its deliberations such topics as: economic outlook, portfolio diversification, maturity structure, potential risks to the City's funds, authorized depositories, and selection of banks and primary dealers.

PRUDENCE
Persons authorized to make investment decisions on behalf of the City are trustees and, therefore, fiduciaries subject to the prudent investor standard as defined in California Government Code Section 53600.3:

When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.

14.7 5
Persons authorized to make investment decisions on behalf of the City, acting in accordance with written procedures and the Statement of Investment and Portfolio Policy, and exercising due diligence, shall not be held personally responsible for a specific security's credit risk or market price changes, provided that these deviations are reported in a timely manner and that appropriate action is taken to control adverse developments.

ETHICS AND CONFLICTS OF INTEREST
The Director of Finance and investment employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. The Director of Finance and investment employees shall disclose any material financial interests in financial institutions that conduct business within this jurisdiction, and they shall further disclose any material personal financial/investment positions that could be related to the performance of the City's portfolio. The Director of Finance and investment employees shall refrain from undertaking personal investment transactions with the same individuals with whom business is conducted on behalf of the City. The Director of Finance and investment employees shall subordinate their personal investment transactions to those of this jurisdiction, particularly with regard to the timing of purchases and sales.

The Director of Finance and the City’s investment employees are required to file an annual Statement of Economic Interests for Designated Employees pursuant to Resolution No.

NS-28,266, dated September 28, 2010. During the course of the year, if there is an event subject to disclosure that could impair the ability of the Director of Finance or investment employees to make impartial decisions, the Investment Committee will be notified in writing within ten (10) days of the event.

INTERNAL CONTROLS
The Director of Finance shall establish a system of internal controls, which shall be documented in writing. The internal controls shall be reviewed by the Investment Committee and with the independent external auditor. The controls shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees and officers of the City.

SOCIALLY RESPONSIBLE/SUSTAINABLE INVESTMENT PARAMETERS
It is the City’s objective to disallow investments in companies whose industry is classified as energy services, oil and gas producers, and refiners and pipelines.

When possible, it is the City's policy to invest in companies that promote the use and production of renewable energy resources and any other socially responsible investments, subject to the prudent investment standard.

COMMUNITY BANKING
In an effort to encourage and support local banking institutions, the City will invest a portion of City funds in qualified community banks, that meet the below criteria.

14.8 6
 The bank must be based in one of the neighboring counties; Santa Cruz, Monterey, San Mateo, Santa Clara, and/or San Benito;
 The bank must provide certification and supporting information that indicates at least 15% of the total bank investment and loan portfolios are invested//made in activities within those county limits;
 To ensure the City of Santa Cruz obtains a competitive rate for investments in the program, any potential investment or proposal must enjoy a rate of return equal to or greater than the Local Agency Investment Fund (LAIF) rate existing at the time of the proposal;
 Participating banks shall provide an annual report, for each year there are active investments and loans, to the City’s Investment Committee about their community involvement as of June 30th, due by July 15th.

SALE OF SECURITIES
Securities are purchased with the intent to hold until maturity. Cash will be managed so that the sale of a security will not be required to meet the on-going cash needs of the City.

The City may sell a security prior to its maturity (recording a gain or loss) to adjust the portfolio duration or improve the risk structure, liquidity, yield, or return potential of the portfolio in response to market conditions or City needs.

PORTFOLIO DIVERSIFICATION
It is the policy of the City to diversify its investment portfolio. Assets held shall be diversified to eliminate the risk of loss resulting from undue concentration of assets in a specific maturity, a specific issuer, or a specific class of securities.

In establishing specific diversification strategies, the following general policies and constraints shall apply. Portfolio maturities shall be staggered to avoid undue concentration of assets in a specific maturity date. Maturities selected shall provide for stability of income and reasonable liquidity.
 Liquidity shall be assured through practices ensuring that the next accounts payable and payroll dates are covered through maturing investments, revenues, or other liquid sources such as the State Treasurer's Local Agency Investment Fund (LAIF) or a local government investment pool (LGIP).  Risks of market price volatility shall be controlled through maturity diversification.  Not more than 5% of the portfolio shall be invested in any one issuer or any one instrument to protect the City from concentration of credit risk, with the following exceptions:

 U.S. Treasury Obligations
 Federal agencies or U.S. government-sponsored enterprises  Investment pools (including LAIF and LGIPs)

AUTHORIZED INVESTMENTS
The City’s investments are governed by Sections 16429.1, 53601, 53635, and 53638 of the California Government Code. Within the investments permitted by Code, the City seeks to further restrict eligible investments to the guidelines listed below. In the event a

14.9 7
discrepancy is found between this policy and Code, the more restrictive parameters will take precedence. All percentage holding limits and rating requirements listed in this section apply at the time the security is purchased. A security purchased in accordance with this section shall not have a forward settlement date exceeding 45 days from the time of investment.

Were this section does not specify a limitation on the term or remaining maturity at the time of the investment, no investment shall be made in any security, other than a security underlying a repurchase agreement authorized by this section, that at the time of the investment has a term remaining to maturity in excess of five years, unless the legislative body has granted express authority to make that investment either specifically or as a part of an investment program approved by the legislative body no less than three months prior to the investment. For purposes of compliance with this policy, an investment’s term or remaining maturity shall be measured from the settlement date to final maturity.

A. Money market accounts deposited with a nationally or state-chartered bank.

B. Municipal Obligations. Bonds issued by the City of Santa Cruz, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency.

Bonds, notes, warrants, or other evidences of indebtedness of a local agency within California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.

Registered state warrants or treasury notes or bonds of California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state.

Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenueproducing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.

Purchases of municipal obligations as described in this subsection shall not exceed five years to maturity. There is no percentage limit in this category.

C. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. Purchases of this category shall not exceed five years to maturity. There is no percentage limit in this category.

D. Obligations, participations, or other instruments of, or issued by, a Federal agency or a United States government-sponsored enterprise. Purchases of this category shall not exceed five years to maturity. There is no percentage limit in this category. In addition, purchases of callable Federal agency instruments shall not exceed 30% of the fair value of the portfolio. Callable Federal agency instruments

14.10 8
will be limited to discrete calls and those that pay 100% of the principal at the redemption date.

E. Bills of exchange or time drafts drawn on and accepted by a commercial bank, otherwise known as bankers' acceptances. Purchases of bankers' acceptances may not exceed 180 days’ maturity or 40% of the City's portfolio.

F. Non-negotiable and non-transferable certificates of deposit issued by the following types of financial institutions which have branch office locations within Santa Cruz County: a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or a federally licensed or state-licensed branch of a foreign bank.

Purchases of non-negotiable and non-transferable certificates of deposit may not exceed 30% of the fair value of the City's portfolio.

G. Repurchase Agreements. The term "repurchase agreement" means a purchase of securities by the City pursuant to an agreement by which the counterparty seller will repurchase the securities on or before a specified date and for a specified amount and the counterparty will deliver the underlying securities to the City's third party custodian. Securities for purpose of repurchase mean securities of the same issuer, description, issue date, and maturity.

The City may invest in repurchase agreements with primary dealers of the Federal Reserve with which the City has entered into a Public Securities Association (PSA) master repurchase contract which specifies terms and conditions of repurchase agreements. The market value of securities that underlay a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities, and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102% no later than the next business day.

Securities that can be pledged for collateral shall consist only of investments permitted within this policy with a maximum maturity of five years. If there is a default of the broker, the collateral securities can be sold. Since the securities are valued daily, it is likely that the sale proceeds will equal or exceed the value of the repurchase agreement amount.

Purchases in this category shall not exceed 92 days to maturity and 20% of the fair value of the portfolio.

H. State of California Pool - Local Agency Investment Fund. The City may invest in the Local Agency Investment Fund (LAIF) established by the State Treasurer under California Government Code Section 16429.1 for the benefit of local agencies. LAIF provides daily liquidity; therefore, there is no final stated maturity for this investment category. LAIF establishes a maximum account balance limit.

I. Shares of beneficial interest issued by diversified management companies that (1) invest in U.S. Treasuries, obligations, participations, or other instruments of, or issued by, a federal agency, or a United States government-sponsored enterprise, or repurchase agreements; or (2) are money market funds registered with the

14.11 9
Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, et seq.)
The net asset value of the shares shall be maintained at $1.00 per share. The purchase price of shares of beneficial interest shall not include any commission that the companies may charge.

The management company must comply with the investment restrictions of the Statement of Investment and Portfolio Policy of the City of Santa Cruz and California Government Code Section 53600 et al. The management company shall have attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations.

Purchases in this category shall not exceed 20% of the fair value of the portfolio.

Purchases in a single mutual fund may not exceed 10% of the fair value of the portfolio.

J. Local Government Investment Pools (LGIP). Shares of beneficial interest issued by a joint powers authority organized pursuant to California Government Code Section 6509.7 that invests in the securities and obligations authorized in California Government Code Section 53601 subdivisions (a) to (r), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
(1) The adviser is registered or exempt from registration with the Securities and Exchange Commission.
(2) The adviser has not less than five years of experience investing in the securities and obligations authorized in Government Code Section 53601 subdivisions (a) to (q), inclusive.
(3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).

K. Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical rating organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or (2):
(1) The entity meets the following criteria:
(A) Is organized and operating in the United States as a general corporation. (B) Has total assets in excess of five hundred million dollars ($500,000,000). (C) Has debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or higher by an NRSRO. (2) The entity meets the following criteria:
(A) Is organized within the United States as a special purpose corporation, trust, or limited liability company.

14.12 10
(B) Has program wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond. (C) Has commercial paper that is rated “A-1” or higher, or the equivalent, by an NRSRO.

Eligible commercial paper shall have a maximum maturity of 270 days or less. No more than 40% of the fair value of the portfolio shell be in eligible commercial paper.

L. Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally licensed or statelicensed branch of a foreign bank. Purchases of negotiable certificates of deposit shall not exceed 30% of the fair value of the portfolio. The legislative body of a local agency and the treasurer or other official of the local agency having legal custody of the moneys are prohibited from investing local agency funds, or funds in the custody of the local agency, in negotiable certificates of deposit issued by a state or federal credit union if a member of the legislative body of the local agency, or a person with investment decision making authority in the administrative office manager’s office, budget office, auditor-controller’s office, or treasurer’s office of the local agency also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit.

M. Medium-term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision shall be rated in a rating category of “A” or its equivalent or better by an NRSRO. Purchases of medium-term notes shall not include other instruments authorized by this section and shall not exceed 30% of the fair value of the portfolio.

N. A mortgage passthrough security, collateralized mortgage obligation, mortgagebacked or other pay-through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond.

Securities eligible for investment under this subdivision not issued or guaranteed by an agency or issuer identified in subdivision (C) or (D) of this Policy, the following limitations apply
(1) The security shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and have a maximum remaining maturity of five years or less. (2) Purchase of securities authorized by this subdivision shall not exceed 20% of the fair value of the portfolio.

O. Supranational obligations defined as United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United

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States. Investments under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and shall not exceed 30% of the fair value of the portfolio.

Appendix A provides additional information regarding the above investment instruments.

Appendix B explains the investment criteria used in the investment decision process.

Appendix C provides definitions of investment risks as provided by Statement 40 of the Governmental Accounting Standards Board (GASB).

INELIGIBLE INVESTMENTS
Investments not described herein are ineligible investments. In accordance with Section 53601.6 of the California Government Code, the City shall not invest any funds in inverse floaters, range notes, or mortgage-derived interest only strips. In addition, the City shall not invest any funds in any security that could result in zero interest accrual if held to maturity. The following activities are prohibited by this policy:
 Trading securities for the sole purpose of speculating on the future direction of interest rates.
 Purchasing or selling securities on margin.
 The use of reverse repurchase agreement securities lending or any other form of borrowing or leverage.

COMPETITIVE SELECTION OF INVESTMENT INSTRUMENTS
Whenever possible, a competitive bid process shall be conducted for securities purchased on the secondary market, bankers' acceptances, certificates of deposit, and repurchase agreements.

Bids will be requested from banks, credit unions, and primary dealers that have been approved for investment purposes. The City will accept the bid that provides the highest rate of return within the maturity required and within the parameters of this policy.

Records will be kept of the bids offered, the bids accepted, and a brief explanation of the decision that was made regarding the investment.

QUALIFIED BANKS, CREDIT UNIONS, AND PRIMARY DEALERS
The City shall transact business only with banks, credit unions, or primary dealers. The purchase of any investment, other than those purchased directly from the issuer, shall be purchased either from a National or State-Chartered Bank or a brokerage firm designated as a Primary Dealer by the Federal Reserve Bank of New York.

The City shall maintain a listing of banks, credit unions, and primary dealers that are approved by the Investment Committee to submit quotations and transact business with the City. All banks, credit unions, and primary dealers which desire to become qualified bidders for investment transactions must provide current audited financial statements with an unqualified opinion from an independent auditor. In addition, primary dealers must maintain a minimum capital adequacy ratio of liquid capital to measured risk that meets or exceeds 125% as required by the Federal Reserve Bank of New York. Banks must meet the regulatory minimums of a well-capitalized bank as defined by the Federal Deposit Insurance Corporation Improvement Act. Credit unions must meet the regulatory

14.14 12
minimums of a well-capitalized credit union as defined by the Federal Credit Union Act.

The listing of banks, credit unions, and primary dealers shall be reviewed periodically, and the most recent audited financial statement for each institution will be reviewed to insure that it is in compliance with the standards of the investment policy.

Only those banks, credit unions, and primary dealers on the approved list are entitled to submit quotations and transact business with the City. Any bank, credit union, or primary dealer failing to meet the capitalization standards and to maintain an unqualified opinion from an independent auditor will be deleted from the approved list. If a bank, credit union, or primary dealer places the City's investments at risk, removal from the approved list will be immediate.

Before transacting business with the City, each bank or primary dealer shall submit a certification. The document will certify that the officer of the bank or the primary dealer has reviewed the investment policies and objectives and agrees to disclose potential conflicts or risks to public funds that might arise out of business transactions between the bank or primary dealer and the City. All banks, credit unions, and primary dealers shall agree to undertake reasonable efforts to preclude imprudent transactions involving the City’s funds.

A minimum number of two and a maximum number of three banks or primary dealers will be approved for conducting investment transactions with the City of Santa Cruz, except that no such limit shall apply to certificate of deposit transactions.

A request for proposals (RFP) for investment services shall be conducted periodically by the Investment Committee. Each bank or primary dealer responding to the RFP must submit a “Request for Information” form. The banks and primary dealers selected by the Investment Committee to provide services must sign an agreement for securities services and a statement of work.

If the City engages a professional investment advisor, the investment advisor shall use their own list of approved broker/dealers.

SAFEKEEPING OF SECURITIES AND COLLATERAL REQUIREMENTS

Pursuant to California Government Code Section 53601, securities purchased in a negotiable, bearer, registered, or nonregistered format, shall be delivered to the City, including those purchased for the City by financial advisors, consultants, or managers using the City's funds, by book entry, physical delivery, or a third party custodial agreement. The transfer of securities to the counterparty bank's customer book entry account may be used for book entry delivery. For purposes of this section, "counterparty" means the other party to the transaction. A counterparty bank's trust department or separate safekeeping department may be used for the physical delivery of the security if the security is held in the name of the City of Santa Cruz.

A third party custodian under the terms of a PSA master repurchase agreement will hold collateral for repurchase agreements. All securities will be received and delivered using standard delivery versus payment procedures, which ensures that securities are deposited with the third party custodian prior to the release of funds. A third party custodian as evidenced by safekeeping receipts will hold securities. Investments in the Local Agency

14.15 13
Investment Fund (LAIF), an LGIP, or mutual funds are undeliverable and are not subject to delivery or third party safekeeping.

California Government Code Sections 53651 through 53667 require depositories to maintain certain types and levels of collateral for public funds above federal insurance limits. The collateral requirements apply to both active deposits (checking and savings accounts) and inactive deposits (non-negotiable time certificates of deposit).

Collateral is also required for repurchase agreements. The collateral level is valued daily and must be maintained at a level of 102% or greater for the life of the repurchase agreement.

REPORTING REQUIREMENTS
Under the provision of Section 53646 of the California Government Code, the Director of Finance, may render a report to the City Council and City Manager containing detailed information on all unrestricted moneys, securities, and investments of the City.

The report shall be submitted monthly and provided to the City Council and City Manager within 45 days following the end of the month.

The report will contain the following information on the funds that are subject to this investment policy:
- the type of investment
- name of issuer
- date of maturity
- par and cost of each investment
- the market value and source of the valuation
- the weighted average maturity of the investments
- description of any funds, investments, or programs, that are under the management of contracted parties, including lending programs - a statement of compliance with the investment and portfolio policy
- interest rate and yield
In addition to the above report, on a quarterly basis, the Director of Finance will submit a narrative report on the activities and investment strategy related to management of the pooled portfolio to the City Council and City Manager.

The Director of Finance will also render a quarterly report pertaining to unpooled moneys, securities, and investments from bond proceeds that are held by trustees. The report will be submitted to the City Manager and the City Council within 45 days following the end of the quarter covered by the report.

COMPLIANCE
The Director of Finance shall insure that all banks and primary dealers are in compliance with the applicable provisions of the Americans with Disabilities Act of 1990 and shall be an equal opportunity employer as defined by Title VII of the Civil Rights Act of 1964, the California Fair Employment and Housing Act of 1980, and the City of Santa Cruz

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Resolution NS-20,137 and Ordinance 92-11. As such, the banks and primary dealers shall not discriminate against any person on the basis of race, religious creed, color, national origin, ancestry, disability, medical condition, marital status, age, sex, sexual orientation, height, weight or physical characteristics with respect to hiring, application for employment, tenure or terms and conditions of employment.

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APPENDIX A

EXPLANATION OF ALLOWABLE INVESTMENTS
Federal Agency or a United States Government Sponsored Enterprise:

Obligations issued by banks for cooperatives, federal land banks, federal intermediate credit banks, federal home loan banks, the Federal Home Loan Bank Board, the Tennessee Valley Authority, or in obligations, participations, or other instruments of, or issued by, or fully guaranteed as to principal and interest by, the Federal National Mortgage Association, or in guaranteed portions of Small Business Administration notes, or in obligations, participations, or other instruments of, or issued by, a federal agency or a United States government-sponsored enterprise.

Federal agency obligations include the following securities:

Banks for Cooperatives
Federal Land Banks (FLB)
Federal Intermediate Credit Banks (FICB)
Federal Home Loan Banks (FHLB)
Tennessee Valley Authority (TVA)
Federal National Mortgage Association (FNMA)
Small Business Administration (SBA)
Federal Farm Credit Banks (FFCB)
Government National Mortgage Association (GNMA)
Federal Home Loan Mortgage Corporation (FHLMC)

Callable Federal Agencies:

A security is said to be callable when the issuer has the option to repay part or all of the issue early by paying some specified redemption price to the bondholders. A discrete call can be redeemed early only on certain dates. For example, a bond may be called quarterly, semi-annually, or annually. A continuous call may be redeemed early at any date, providing the issuer gives the bondholders five to ten days notice.

Certificates of Deposit:

A certificate of deposit (CD) is a receipt for funds deposited in a nationally or statechartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or a federally licensed or statelicensed branch of a foreign bank for a specified period of time at a specified rate of interest. The first $250,000 of a CD is guaranteed by the Federal Deposit Insurance Corporation (FDIC) if the deposit is with a bank or savings association; or by the National Credit Union Administration (NCUA) if the deposit is with a credit union. A CD with a face value in excess of federal insurance limits must be collateralized pursuant to California Government Code Sections 53651 to 53667.

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Bankers' Acceptance:

A bankers' acceptance is a negotiable time draft or bill of exchange drawn on and accepted by a commercial bank. Acceptance of the draft irrevocably obligates the bank to pay the bearer the face amount of the draft at maturity. Bankers' acceptances are usually created to finance the import and export of goods, the shipment of goods within the United States, and the storage of readily marketable staple commodities. In addition to the guarantee by the accepting bank, the transaction is identified with a specific commodity. Warehouse receipts verify that the pledged commodities exist, and, by definition, these commodities are readily marketable. The sale of the underlying goods generates the necessary funds to liquidate the indebtedness.

Bankers' acceptances enjoy marketability since the Federal Reserve Bank is authorized to buy and sell prime bankers' acceptances with maturities of up to nine months. The Federal Reserve Bank enters into repurchase agreements in the normal course of open market operations with bankers' acceptance dealers.

Bankers' acceptances are sold at a discount from par. An acceptance is tied to a specific loan transaction; therefore, the amount and maturity of the acceptance is fixed.

Local Agency Investment Fund Demand Deposit:

The Local Agency Investment Fund (LAIF) was established by the State to enable treasurers to place funds in a pool for investments. LAIF is particularly beneficial for local jurisdictions with small portfolios due to LAIF’s policy of establishing a maximum account balance. The City uses this fund for short-term investments, liquidity, and yield when rates are declining.

Repurchase Agreements:

A repurchase agreement (REPO) is not a security, but a contractual arrangement between a financial institution or dealer and an investor. Usually, amounts are $500,000 or more, but some repurchase agreements can be smaller.

Asset-Backed Securities:

Securities that are supported by pools of assets, such as installment loans or leases, or by pools of revolving lines of credits. Asset-backed securities are structured as trusts in order to perfect a security interest in the underlying assets.

Negotiable Certificates of Deposit:

Generally, short-term debt instrument that usually pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. The majority of negotiable CDs mature within six months while the average maturity is two weeks. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor). Negotiable CDs are insured by FDIC up to $250,000, but they are not collateralized beyond that amount.

Commercial Paper:

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An unsecured short-term promissory note issued by corporations or municipalities, with maturities ranging from 2 to 270 days.

Medium Term Notes:

Corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.

Supranational Institutions:

International institutions formed by two or more governments that transcend boundaries to pursue mutually beneficial economic or social goals. There are three supranational institutions that issue obligations that are eligible investments for California local agencies:
the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), and Inter-American Development Bank (IADB).

Mortgage-Backed Securities:

Mortgage-backed securities (MBS) are created when a mortgagee or a purchaser of residential real estate mortgages creates a pool of mortgages and markets undivided interests or participations in the pool. MBS owners receive a prorata share of the interest and principal cash flows (net of fees) that are “passed through” from the pool of mortgages.

MBS are complex securities whose cash flow is determined by the characteristics of the mortgages that are pooled together. Investors in MBS face prepayment risk associated with the option of the underlying mortgagors to pre-pay or payoff their mortgage. Most MBS are issued and/or guaranteed by federal agencies and instrumentalities (e.g., Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA), and Federal Home Loan Mortgage Corporation (FHLMC)).

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APPENDIX B

INVESTMENT CRITERIA

SAFETY OF PRINCIPAL
Investments of the City of Santa Cruz shall be undertaken in a manner that seeks to ensure the preservation of capital and to minimize capital losses. Losses may occur due to the default of a financial institution or the issuer of a security (credit risk), or the erosion of the market value of securities due to declining interest rates (interest rate risk). The City shall seek to ensure the safety of principal by mitigating the two types of risk in order of importance: credit risk and interest rate risk.

LIQUIDITY
Liquidity refers to the availability of cash to meet the operating requirements of the City.

The portfolio will be structured so that securities mature concurrent with cash needs to meet anticipated demands. In addition, the portfolio will maintain a liquidity buffer so that unanticipated cash needs can be met. The buffer will be held in the Local Agency Investment Fund (LAIF) or and LGIP or any money market accounts allowed by this policy.

All investments purchased shall have daily liquidity or a final stated maturity date, upon which the full principal value of the security will be received.

RETURN ON INVESTMENT
The portfolio shall be designed to attain a return on investments through budgetary and economic cycles, taking into account safety of principal and liquidity needs of the City.

Return on investment is of least importance compared to the safety and liquidity objectives described above. The core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk assumed.

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APPENDIX C

TYPES OF INVESTMENT RISK
Concentration of Credit Risk
The risk of loss attributed to the magnitude of a government’s investment in a single issuer.

The portfolio will be diversified so that the failure of any one issuer will not unduly harm the City's cash flow.

Credit Risk
The risk that an issuer or other counterparty to an investment will not fulfill its obligations.

Credit risk is further defined as the risk of loss due to the failure of an issuer of a security or a financial institution. Purchasing U.S. Treasuries or Federal Agencies will lessen this type of risk. Evaluating and pre-qualifying banks, primary dealers, intermediaries, and advisors with whom the City does business will also reduce credit risk.

Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party.

The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party.

The City protects deposits from custodial credit risk by requiring depositories to comply with the collateral requirements of California Government Code Sections 53651 through 53667. In addition, the City protects investments from custodial credit risk by holding investments in the City’s name at a bank’s trust department (safekeeping bank), except in the case of investments held for the City’s benefit by trustees in accordance with City bond issues.

Foreign Currency Risk
The risk that changes in exchange rates will adversely affect the fair value of an investment or a deposit. The City does not invest in foreign securities.

Interest Rate Risk
The risk that changes in interest rates will adversely affect the market value of an investment.

Interest rate risk may be reduced by investing primarily in shorter-term securities with the weighted average maturity of the portfolio not to exceed three (3) years as of the date of the monthly report.

Reinvestment Risk
The risk that coupon payments and redemptions of principal will be reinvested at lower rates of return.

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Weighted Average Maturity
A weighted average maturity measure expresses investment time horizons – the time when investments become due and payable – in years or months, weighted to reflect the dollar size of individual investments within an investment type.

14.23 City Council

AGENDA REPORT
DATE: 03/08/2024
AGENDA OF: 03/26/2024
DEPARTMENT: Finance/Human Resources
SUBJECT: 2021 Compensation Study, Phase III Follow-up (FN/HR) RECOMMENDATION: Motion to:
1) Approve Phase III Compensation Study (Study) implementation, which includes classification compensation increases as identified in the 2021 Study, as part of FY 2024, effective April 13, 2024;
2) Adopt a resolution amending the City’s Classification and Compensation Plan for multiple departments, as identified in Exhibit A; and
3) Adopt a resolution amending the FY 2024 budget allocating funding for Phase III as detailed in the Budget Adjustment Attachment 1-3-month and Annual Costs for Phase III.

BACKGROUND: Existing labor agreements with various bargaining units include language regarding compensation and compaction, including:

In the Service Employees International Union (SEIU) 2022-2025 Memorandum of Understanding (MOU), Section 24.00 Compensation Study, states:
“The City and Union shall continue to meet on the findings of the 2021 Total Compensation Study prepared by Koff and Associates. As a show of good faith, the City commits to ensuring that no classification supported by the Enterprise Funds more than 15% out of the market by April 1, 2023, based on the findings of the 2021 study, and inclusive of salary increases to within 10% of the market. In addition, we agree that the City will provide a full 11% increase to the sanitation workers (Sr. Resource Recovery Worker, Resource Recovery Worker I/II and Solid Waste Worker.

The Parties agree to meet and confer over the implementation of the 2021 study with the goal of closing the gap - subject to Council approval. All changes must be made upon mutual agreement of the Parties. Additionally, the Finance department will update the Union/Meet and confer team quarterly on available data on the financial status of the City.

New Compensation Study: The City and the Union shall meet by September 1, 2024, to meet and confer over the contractor selection and methodology including cities and benchmarked positions for the compensation study. The parties must agree on any new contractor selected to

15.1 conduct the study and methodology utilized for the study, including the mapping of studied classifications to other classifications for which comparison data is not directly generated by the consultant. If the parties are unable to mutually agree on the contractor or methodology for the new compensation study, the status quo of the methodology of the 2021 Study will remain. The study shall be completed by March 1, 2025, and the city agrees to bear the cost of the survey.” In the Operating Engineers 3 (OE3), Supervisors 2022-2025 MOU, Section 13.21, Compaction, reads:
“The City agrees to meet and confer with the union quarterly with a pledge of preventing compaction between a supervisor and the position they supervise. Salary compaction is defined as any percentage less than ten percent (10%) between the top step salary of the supervisory and the top step salary of the classification it primarily supervises. A list of supervisor positions and the associated positions they supervise will be discussed at the meeting.” To follow-up on these MOUs, over a five-month period in FY 2024, the City worked with SEIU and OE3 to close gaps for: enterprise and non-enterprise funded positions; compaction issues; safety boot stipends; and duty assignment increases and fatigue pay in support of all staff who cover late shift assignments.

These changes and associated financial impacts are summarized below:

Estimated Annual Costs
 Enterprise Funded Classification
Compensation Adjustments (4/1/2023)
- SEIU
$226,857
 Safety Boots Stipend Increase
(6/1/2023) - SEIU
$25,000
 Phase I/II Implementation of 2021
Compensation Study (9/12/2023) –
SEIU and Supervisors
$483,668
 Duty Assignment Differential,
Overtime, and Fatigue Pay
(9/26/2023) – SEIU and Supervisors
$103,000
Total: $838,525
Conversations amongst all parties and City efforts have not faltered as City staff continue to meet in good faith and address concerns related to closing market gaps and addressing compaction. The Human Resources Department (HR) is also working with departments and unions to update job descriptions. Collaboration is on-going, especially as the City approaches the development of the 2024 compensation methodology, and begins the procurement process for the next Study, which is expected in the summer of 2024.

DISCUSSION: As committed by staff on September 12, 2023, HR returned to Council at midyear, February 13, 2024, to share estimated cost of implementing Phase III which includes increases for classifications identified in the 2021 Compensation study that are more than ten percent (10%) below market. Staff recommended incorporating Phase III implementation along with the FY 2025 budget process. City Council directed staff to bring back Phase III for reassessment at the March 26, 2024 Council meeting with a plan for implementation. The

15.2 original cost analysis shared on February 12, 2024, has been added as an attachment for reference.

The estimated annual costs have been further analyzed based on existing staff by general fund and enterprise fund costs and impacts multiple bargaining units, including SEIU, Supervisors (OE3), Mid-Managers (OE3).

FY 2024 three-month estimate:

Focus Area General Fund Enterprise Funds Total
Phase III: All Other
Market
$114,372 $96,522 $210,894
The FY 2025 annual costs are:

Focus Area General Fund Enterprise Funds Total
Phase III: All Other
Market
$463,967 $379,609 $843,576
The analysis and information support the Health in All Policies (HiAPs) by furthering economic security and mobility: stable employment, livable wages, food security, ability to afford basic needs, wealth accumulation, and prosperity.

FISCAL IMPACT: The impact to all funds is an increase in expenditures of $210,894 in FY 2024, and $843,576 in FY 2025, and is expected to increase annually based on cost of living adjustments (COLA), benefit costs increases, and other labor contract sections, as applicable.

Costs have increased from the last report given a deeper analysis of the impacted actual active positions.

Prepared and Submitted By:

Sara De Leon
Human Resources Director
Elizabeth Cabell
Finance Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

2. RESOLUTION EXHIBIT A.PDF

3. FEBRUARY 12, 2024 STAFF REPORT AND REVISED UNMAPPED CLASSIFICATION LIST.PDF

4. SEPTEMBER 12, 2023 STAFF REPORT – PHASE I AND II IMPLEMENTATION.PDF

5. BUDGET ADJUSTMENT.PDF

6. BUDGET ADJUSTMENT ATTACHMENT 1 – 3 MONTH AND ANNUAL COSTS FOR PHASE III.PDF

15.3 RESOLUTION NO. NS-XX,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ AMENDING

THE PERSONNEL COMPLEMENT AND CLASSIFICATION AND COMPENSATION PLANS– VARIOUS DEPARTMENTS
WHEREAS, staff has recommended certain modifications to the Classification and Compensation Plans.

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

That effective April 13, 2024 the City of Santa Cruz Classification and Compensation Plans be modified as identified in Exhibit A.

PASSED AND ADOPTED this 26th day of March 26, 2024, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

15.4 EXHIBIT A

AMENDMENT TO PERSONNEL CLASSIFICATION AND COMPENSATION PLAN -VARIOUS DEPARTMENTS Class No. Classification Title BU Current Bottom Monthly Current Top Monthly New Bottom Step New Top Step % Increase 132 COURIER/DRIVER Service $ 3,542 $ 4,983 $ 3,611 $ 5,083 2.00% 238 RANGER ASSISTANT Service $ 3,548 $ 4,992 $ 3,619 $ 5,092 2.00% 282 LIBRARY ASSISTANT I Service $ 3,642 $ 5,124 $ 3,713 $ 5,226 2.00% 289 VOLUNTEER COORDINATOR ASSIST Service $ 3,705 $ 5,212 $ 3,778 $ 5,316 2.00% 212 WATER METER TECHNICIAN Service $ 3,827 $ 5,385 $ 3,918 $ 5,514 2.40% 826 BUYER I Management $ 5,616 $ 7,239 $ 6,012 $ 8,137 12.40% 827 BUYER II Management $ 5,894 $ 7,598 $ 6,310 $ 8,540 12.40% 244 WATER DISTRIBUTION OIT Service $ 3,971 $ 5,587 $ 4,126 $ 5,805 3.90% 720 HUMAN RESOURCES ANALYST I Management $ 6,765 $ 8,720 $ 6,462 $ 8,746 0.30% 305 CHIEF RANGER Supervisor $ 6,343 $ 8,926 $ 6,470 $ 9,105 2.00% 272 UTILITY SERVICE REP I Service $ 4,068 $ 5,724 $ 4,165 $ 5,861 2.40% 721 HUMAN RESOURCES ANALYST II Management $ 7,238 $ 9,330 $ 7,383 $ 9,517 2.00% 775 FINANCE MANAGER Management $ 9,384 $ 12,096 $ 9,618 $ 12,398 2.50% 735 DEVELOPMENT MANAGER Management $ 9,535 $ 12,290 $ 10,025 $ 13,568 10.40% 274 UTILITY SER FIELD TECH I Service $ 4,068 $ 5,724 $ 4,165 $ 5,861 2.40% 176 POLICE RECORDS TECHNICIAN Service $ 4,139 $ 5,824 $ 4,169 $ 5,865 0.70% 139 EQUIPMENT SERVICE WORKER Service $ 4,139 $ 5,824 $ 4,238 $ 5,964 2.40% 111 WW PLANT OPER IN TRAIN Service $ 4,269 $ 6,005 $ 4,370 $ 6,149 2.40% 273 UTILITY SERVICE REP II Service $ 4,274 $ 6,014 $ 4,377 $ 6,158 2.40% 275 UTILITY SER FIELD TECH II Service $ 4,274 $ 6,014 $ 4,377 $ 6,158 2.40% 294 RANGER I Service $ 4,321 $ 6,081 $ 4,410 $ 6,203 2.00% 225 WASTE REDUCTION ASSISTANT Service $ 4,321 $ 6,081 $ 4,410 $ 6,203 2.00% 733 PURCHASING MANAGER Management $ 9,384 $ 12,096 $ 9,618 $ 12,398 2.50% 703 RISK AND SAFETY MANAGER Management $ 9,384 $ 12,096 $ 9,618 $ 12,398 2.50% 765 ECONOMIC DEVELOPMENT MANAGER Management $ 9,535 $ 12,290 $ 10,025 $ 13,568 10.40% 292 SENIOR POLICE RECORDS TECH Service $ 4,460 $ 6,276 $ 4,490 $ 6,320 0.70% 285 LIBRARY INFORMATION SPECIALIST Service $ 4,552 $ 6,406 $ 4,644 $ 6,534 2.00% 137 EQUIPMENT MECHANIC I Service $ 4,560 $ 6,415 $ 4,650 $ 6,543 2.00% 179 RANGER II Service $ 4,662 $ 6,560 $ 4,755 $ 6,691 2.00% 264 SENIOR PARKING SERVICES WORKER Service $ 4,665 $ 6,564 $ 4,758 $ 6,695 2.00% 153 LIGHT EQUIPMENT MECHANIC Service $ 4,665 $ 6,564 $ 4,758 $ 6,695 2.00% 271 UTILITY ACCOUNT SPECIALIST Service $ 4,701 $ 6,615 $ 4,795 $ 6,747 2.00% 245 WATER DISTRIBUTION OPERATOR II Service $ 4,661 $ 6,558 $ 4,844 $ 6,814 3.90% 204 WW COLLECTION MAINT TECH I Service $ 4,661 $ 6,558 $ 4,844 $ 6,814 3.90% 182 RESOURCE RECOVERY EQUIP OPERAT Service $ 4,752 $ 6,686 $ 4,847 $ 6,820 2.00% 288 PLANNING & COMM DEVEL TECH Service $ 4,876 $ 6,861 $ 4,974 $ 6,998 2.00% 216 WHARF CONSTRUCTION WORKER Service $ 5,034 $ 7,082 $ 5,133 $ 7,224 2.00% 293 SENIOR RANGER Service $ 5,087 $ 7,157 $ 5,189 $ 7,300 2.00% 246 WATER DISTRIBUTION OPER III Service $ 5,087 $ 7,157 $ 5,286 $ 7,436 3.90%

15.5 EXHIBIT A

AMENDMENT TO PERSONNEL CLASSIFICATION AND COMPENSATION PLAN -VARIOUS DEPARTMENTS 364 LIBRARY ASSISTANT IV Supervisor $ 4,944 $ 6,956 $ 5,042 $ 7,095 2.00% 202 WW COLLECTION MAINT TECH II Service $ 5,087 $ 7,157 $ 5,286 $ 7,436 3.90% 740 LIBRARY SPECIALIST Management $ 5,265 $ 6,787 $ 5,371 $ 6,923 2.00% 742 LIBRARIAN I Management $ 5,530 $ 7,128 $ 5,641 $ 7,271 2.00% 280 FAC MAINT/ENERGY PROJ COORD Service $ 5,822 $ 8,193 $ 5,887 $ 8,283 1.10% 279 REVENUE COLLECTIONS SPECIALIST Service $ 5,242 $ 7,375 $ 5,891 $ 8,290 12.40% 136 ENVIRON PROGRAMS ANALYST II Service $ 5,977 $ 8,411 $ 6,044 $ 8,504 1.10% 120 CHEMIST I Service $ 6,030 $ 8,486 $ 6,096 $ 8,579 1.10% 116 BUILDING INSPECTOR Service $ 6,072 $ 8,544 $ 6,140 $ 8,638 1.10% 341 WHARF CONSTRUCTION CREW LDR Supervisor $ 5,748 $ 8,088 $ 6,461 $ 9,091 12.40% 320 PARKING OFFICE SUPERVISOR Supervisor $ 5,806 $ 8,170 $ 5,870 $ 8,260 1.10% 287 SPECIAL EVENTS COORDINATOR Service $ 5,582 $ 7,854 $ 6,275 $ 8,828 12.40% 141 ENVIRON PROGRAMS ANALYST I Service $ 5,582 $ 7,854 $ 6,275 $ 8,828 12.40% 198 TRANSPORTATION COORDINATOR Service $ 5,644 $ 7,941 $ 6,343 $ 8,926 12.40% 237 GREEN BLDG ENVIRO SPECIALIST Service $ 5,647 $ 7,944 $ 6,346 $ 8,929 12.40% 782 ECONOMIC DEVEL CORD I Management $ 7,112 $ 9,167 $ 7,254 $ 9,350 2.00% 777 ASSOCIATE PLANNER I Management $ 7,348 $ 9,471 $ 7,495 $ 9,660 2.00% 783 ECONOMIC DEVEL CORD II Management $ 7,466 $ 9,624 $ 7,615 $ 9,816 2.00% 786 CITY CLERK ADMINISTRATOR Management $ 9,102 $ 11,732 $ 9,330 $ 12,025 2.50% 723 TRANSPORTATION PLANNER II Management $ 9,384 $ 12,096 $ 9,618 $ 12,398 2.50% 727 PARKING PROGRAM MANAGER Management $ 9,509 $ 12,257 $ 9,282 $ 12,563 2.50% 712 CUSTOMER SERVICE MGR Management $ 9,602 $ 12,377 $ 9,373 $ 12,686 2.50% 764 DEPUTY BUILDING OFFICIAL Management $ 9,848 $ 12,694 $ 9,613 $ 13,011 2.50% 779 WATERSHED COMPLIANCE MANAGER Management $ 9,958 $ 12,836 $ 9,721 $ 13,157 2.50% 708 SENIOR PROFESSIONAL ENGINEER Management $ 10,441 $ 13,458 $ 10,192 $ 13,794 2.50% 738 SUSTAIN & RESILIENCY OFFICER Management $ 10,444 $ 13,462 $ 10,195 $ 13,799 2.50% 232 INFORMATION TEC SPECIALIST III Service $ 6,358 $ 8,946 $ 6,486 $ 9,125 2.00%

15.6 City Council

AGENDA REPORT
DATE: 1/25/2024
AGENDA OF: 02/13/2024
DEPARTMENT: Finance
SUBJECT: FY 2024 Budget Adjustments and Information on City’s Financial Status (FN)
RECOMMENDATION: Motion to:
1) Adopt a resolution 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;
2) Authorize the City Manager to allocate budgetary changes within the applicable funds and departments; and
3) Receive an update on the City of Santa Cruz’s financial status, including follow-up analysis for Phase III of the City’s 2021 Compensation Study.

BACKGROUND: On June 13, 2023, the City Council passed resolution NS-30, 164, which adopted a budget for FY 2024. The purpose of this agenda item is to provide a mid-year update on the City’s financial standing and to make adjustments to the FY 2024 budget.

In the normal course of the budget year, adjustments need to be made for administrative corrections and/or cleanup. In some cases, adjustments to the budget are required as departments implement work plans in alignment with the Citywide Strategic Plan or other Council direction.

In other cases, unanticipated needs have arisen, requiring additional appropriations.

The close of the previous fiscal year has been completed and half of the current fiscal year has passed, which means there is helpful information to provide the Mayor and Councilmembers about the City’s current financial status.

Our strategic plan includes the following focus areas:
 Fiscal Sustainability and Transparency
 Strong Business Communities and a Vibrant Downtown
 Housing
 Homelessness Response
 Public Safety and Community Well-Being

15.7  Natural and Built Infrastructure
 Thriving Organization
DISCUSSION: A comprehensive list of all the proposed FY 2024 budget adjustments are listed in Exhibit A by the type of adjustment. The first set of budget adjustments are corrections to revenues. The next set of budget adjustments are corrections to expenditures. The remainder of budget adjustments are expenditures with matching revenue.

The corrections to revenues total a decrease in the amount of $14,552,975. The largest piece of this decrease is due to the Water Department accidentally budgeting for future year grant proceeds. The total includes a decrease in General Fund revenues in the amount of $52,384.

This is primarily due to moving the Technology Surcharge from Fund 101 to a new separate fund.

Budget adjustments to expenditures total an increase of $7,490,114. A considerable portion of this increase is due to moving appropriations to a project from fund balance for the anticipated new Citywide Enterprise Resource Planning software in the amount of $3,834,800. Another significant increase is due to the purchase of a building for the Parking Division in the amount of $2,300,000. For the General Fund, the increase is $369,000. This increase is to correct a $300,000 project transfer, and approved budget additions that were missed.

The remainder of budget adjustments are expenditures with matching revenue, with some coming from non-General Fund sources. These include adjustments to the funding for the Homelessness Response Team (HRT) from the remaining American Rescue Plan Act (ARPA) and the State Homeless Response Program (CA14). The expenditures for the HRT projects were included in the adopted budget, however the revenues were not recognized in the projects. An adjustment adding the funding and purchase of property for the Downtown Affordable Housing Library Project from the Economic Development Trust Fund is needed for that project to continue. There are additions of new grant-funded projects, as well as several miscellaneous corrections. These budget adjustments increase revenues by $3,770,375 and expenditures are $6,784,403. For the General Fund, revenues increased by $411,228 and expenditures increased by $352,206.

One of the City’s Climate Action Program initiatives is the development of a Carbon Fund that enhances the City’s ability to invest in carbon-reducing projects that align with the goals of the plan. Annually, departments submit project proposals that are evaluated by the Sustainability Team, a cross-sector group of employees representing all City departments. This fiscal year, the Carbon Fund awarded a total of $43,000 toward carbon-reducing projects as listed in Exhibit B.

The City Manager’s Office, Police, Fire, Parking, and Library were recipients of this year’s awards.

The budget adjustments relate to the following strategic focus areas: Strong Business Communities and a Vibrant Downtown, Housing, Homelessness Response, and Natural and Built Infrastructure. The cumulative effect of these budget adjustments supports the Health in All Policies (HiAPs) workplan by supporting increased economic vitality; higher levels of selfsufficiency; increased social, economic, and occupational mobility; connection to others; climate

15.8 change resiliency; a safe, affordable, and accessible transportation system; and safety of neighborhoods and communities.

Fiscal Sustainability and Transparency: Current Financial Outlook The FY 2023 budget was adopted in June 2022 with a $4.9M deficit to be covered by fund balance. The year closed with a $1.5M deficit due to higher than anticipated tax revenues.

The City adopted a balanced budget of $139M in FY 2024. This was only possible because it did not include the annual $5M transfer to the Capital Investment Program. Halfway through FY 2024, revenues are at 49% of budget, which is expected given the timing of tax receipts.

Expenditures are at 57% of budget.

15.9 More broadly, per the update at Council on November 28, 2023, the City’s current ongoing annual fiscal gap averages $10.5M from FY 2025 to FY 2034. The long-range forecast estimates that the City’s General Fund shall, if nothing else is done, fall below its minimum reserve threshold (~17%) by FY 2025, and be depleted by FY 2027. The City is pursuing a significant and sustainable future potential revenue stream on the ballot in March 2024 – a sales tax measure. However, the outcome is not known and, should it pass, it will take months before additional revenue comes into the General Fund. Additionally, the sales tax estimated net of ~$8M to the General Fund only serves to partially offset the average annual gap of $10.5M.

Long-range forecast as of November 2023
Thriving Organization: 2021 Compensation Study Cost Analysis As staff committed at the September 12, 2023 City Council meeting, efforts have been made toward analyzing the feasibility of implementing Phase III of the 2021 Compensation study. On September 12, 2023, City Council approved compensation changes to varying service and supervisory classifications totaling an ongoing cost of $483,668 per year. Prior to City Council approval, the Human Resources Department (HR) reported they would return to Council at midyear to share the estimated cost of implementing Phase III, which included increases for classifications identified in the 2021 Compensation study that are more than ten percent (10%) below market.

The following benchmarked classifications are more than ten percent (10%) below market and are the basis of the cost analysis for Phase III. The 2021 Compensation study identifies benchmarked and mapped classifications. Benchmarked classifications are compared to classifications in other surveyed agencies and determine where classifications place in the market. Benchmarked positions were also mapped to other classifications that were not benchmarked and did not easily fit into a job family or series. Classification are mapped with benchmarked classifications given similar scope and responsibility, typical duties, requisite knowledge, skills, and abilities, supervision received and exercised, and internal relationships.

Table 1 identifies the benchmarked classifications that are more than ten (10%) below market and their associated mapped classifications.

15.10 TABLE 1
Classification Title (Benchmarked)
2021 Market
Standing
2021 Mapped Classifications
Analyzed
Increase
Building Inspector -11.10 None Listed 1.1%
Buyer I/II* -22.40 None Listed 12.4%
Chief Ranger** -12.00 None Listed 2.0%
Development Manager -20.40 Economic Development Manager 10.4% Finance Manager -12.50 Purchasing Manager 2.5%
Human Resources Analyst I/II* -10.30 None Listed 0.3%
Police Records Technician -10.70 None Listed 0.7%
Ranger I/II** -12.00 None Listed Ranger Assistant Included 2.0% Senior Ranger -12.00 None Listed 2.0%
Utility Service Representative I/II -12.40 Utility Service Field Technician I/II 2.4% Water Distribution Operator
Trainee/II*/III
-13.90 Wastewater Collection Maintenance
Technician I/II

3.9%
*Benchmarked of Alternately staffed classification.
**Last market standing according to 2017 Compensation Study.

Phase III Methodology/Analytical Approach. The cost analysis includes giving each of the classifications increases as identified in Table 1 and analyzed compaction in the classifications reporting structure. For example, the analyzed increase for the Development Manager would be

10.4% since it is 20.4% below market. Compaction review aims to ensure that classifications with a reporting relationship maintain ten percent (10%) between the top step of the supervisory classification and the top step of the classification being supervised. The cost below includes the increase in salary as well as a 58% increase in benefits to account for all medical and retirement.

Item
Total
Esitmated
Cost
Benchmarked Classifications $ 224,136
Mapped Classifications $ 83,750
Associated Compaction $ 19,557
Total Annual Cost $ 327,443
The City has approximately 287 classifications. Given cost limitations, the 2021 Compensation study benchmarked 84 classifications. Not including mapped classifications, approximately 87 classifications remained unmapped to benchmarked positions, with several operational areas identified as insufficient data, such as the Wharf, Wastewater, and Water, given an inability to find matching surveyed agencies. HR staff analyzed the cost to include unmapped positions. The unmapped classifications included in this analysis were determined by creating pay scales similar to Federal Government pay scales, or General Schedule (GS). The percentage increases the benchmarked and mapped classifications received, identified in Table 1, were then applied to the unmapped classifications.

15.11 The following pay bands, delineated as GS and Law Enforcement (LEO) pay scales, were used in order to determine nearby unmapped classifications:

The unmapped classifications identified by pay bands to the benchmarked and mapped classifications in Table 1 include the classifications listed in Attachment 1.

Item
Total
Esitmated
Cost
Unmapped Classifications $ 286,350
Associated Compaction $ 123,630
Total Annual Cost $ 409,980
Based on this methodology, the total analyzed cost for benchmarked, mapped, and unmapped classifications is $737,723 annually.

Considering annual cost with an average cost-of-living adjustment (COLA) given varying bargaining units is as follows:

Estimated Annual Cost and COLA
FY24 + 3% COLA FY25 4% COLA Total – 2 years
$ 759,855 $ 790,249 $ 1.55M

15.12 The insights gathered from conversations with staff and from this initial analysis are invaluable and play a crucial role in shaping our employee compensation strategy moving forward, including efforts toward preparing for the 2024 Compensation Study. It is imperative to exercise caution and prudence to ensure the stability and future growth of our organization before committing to significant ongoing costs to our general and enterprise funds. Given the City’s current financial status, Phase III possible action should be deferred until the FY 2025 budget cycle.

The analysis and information supports the Health in All Policies (HiAPs) workplan by supporting Economic Security and Mobility: stable employment, livable wages, food security, ability to afford basic needs, wealth accumulation, and prosperity.

FISCAL IMPACT: Budget adjustments do not include Phase III of the 2021 Compensation study at this time. The above recommendations will result in a FY 2024 total expenditure increase increase of $14,274,517 and a total revenue decrease of $10,782,600. The impact to the General fund is an increase in expenditures of $721,206 and an increase in revenues of $358,844, as listed in Exhibit A.

Prepared By:

Tracy Cole
Finance Manager, Budget
Sara De Leon
People Officer
Submitted By:

Elizabeth Cabell
Finance Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. Resolution Appropriating Funds and Amending the FY 2024 Budget

2. Exhibit A – FY 2024 Budget Adjustments

3. Exhibit B – FY 2024 Carbon Fund Projects Memo

4. Unmapped Classifications Included in Analysis by Pay Scale

15.13 Attachment 1
Pay Scale Grade/Class
No.

Classification Title Unit Analyzed Increase
GS-5 132 COURIER/DRIVER
Service 2.0%
GS-5 282 LIBRARY ASSISTANT I
Service 2.0%
GS-5 289 VOLUNTEER COORDINATOR ASSIST
Service 2.0%
GS-6 212 WATER METER TECHNICIAN
Service 2.4%
GS-6 139 EQUIPMENT SERVICE WORKER
Service 2.4%
GS-7 111 WW PLANT OPERATOR IN TRAINING
Service 2.4%
GS-7 225 WASTE REDUCTION ASSITANT
Service 2.0%
GS-7 285 LIBRARY INFORMATION SPECIALIST
Service 2.0%
GS-7 137 EQUIPMENT MECHANIC I
Service 2.0%
GS-7 264 SENIOR PARKING SERVICES WORKER
Service 2.0%
GS-7 153 LIGHT EQUIPMENT MECHANIC
Service 2.0%
GS-8 271 UTILITY ACCOUNT SPECIALIST
Service 2.0%
GS-8 182 RESOURCE RECOVERY EQUIP OPERAT
Service 2.0%
GS-8 288 PLANNING & COMM DEVEL TECH
Service 2.0%
GS-8 364 LIBRARY ASSISTANT IV Supervisor 2.0%
GS-8 216 WHARF CONSTRUCTION WORKER
Service 2.0%
GS-8 740 LIBRARY SPECIALIST
Management 2.0%
GS-8 742 LIBRARIAN I
Management 2.0%
GS-9 279 REVENUE COLLECTIONS SPECIALIST
Service 12.4%
GS-9 287 SPECIAL EVENTS COORDINATOR
Service 12.4%
GS-9 141 ENVIRON PROGRAMS ANALYST I
Service 12.4%
GS-9 198 TRANSPORTATION COORDINATOR
Service 12.4%
GS-9 237 GREEN BLDG ENVIRO SPECIALIST
Service 12.4%
GS-9 341 WHARF CONSTRUCTION CREW LDR
Supervisor 12.4%
GS-10 320 PARKING OFFICE SUPERVISOR Supervisor 1.1%
GS-10 280 FAC MAINT/ENERGY PROJ COORD
Service 1.1%
GS-10 136 ENVIRON PROGRAMS ANALYST II
Service 1.1%
GS-10 120 CHEMIST I
Service 1.1%

15.14 Attachment 1
GS-11 232 INFORMATION TECH SPECIALIST III
Service 2.0%
GS-11 782 ECONOMIC DEVEL CORD I Management 2.0%
GS-11 777 ASSOCIATE PLANNER I
Management 2.0%
GS-11 783 ECONOMIC DEVEL CORD II Management 2.0%
GS-13 601 DEPUTY FIRE MARSHAL
Fire 2.5%
GS-13 786 CITY CLERK ADMINISTRATOR Management 2.5%
GS-13 723 TRANSPORTATION PLANNER II Management 2.5%
GS-13 727 PARKING PROGRAM MANAGER
Management 2.5%
GS-13 712 CUSTOMER SERVICE MGR Management 2.5%
GS-13 764 DEPUTY BUILDING OFFICIAL
Management 2.5%
GS-13 779 WATERSHED COMPLIANCE MANAGER Management 2.5%
GS-13 708 SENIOR PROFESSIONAL ENGINEER
Management 2.5%
GS-13 738 SUSTAIN & RESILIENCY OFFICER Management 2.5%
LEO-5 292 SENIOR POLICE RECORDS TECH
Service 0.7%

15.15 Attachment 1 - Revised 3/26/24
Pay Scale Grade/Class
No.

Classification Title Unit Analyzed Increase
GS-5 132 COURIER/DRIVER
Service 2.0%
GS-5 282 LIBRARY ASSISTANT I
Service 2.0%
GS-5 289 VOLUNTEER COORDINATOR ASSIST
Service 2.0%
GS-6 212 WATER METER TECHNICIAN
Service 2.4%
GS-6 139 EQUIPMENT SERVICE WORKER
Service 2.4%
GS-7 111 WW PLANT OPERATOR IN TRAINING
Service 2.4%
GS-7 225 WASTE REDUCTION ASSITANT
Service 2.0%
GS-7 285 LIBRARY INFORMATION SPECIALIST
Service 2.0%
GS-7 137 EQUIPMENT MECHANIC I
Service 2.0%
GS-7 264 SENIOR PARKING SERVICES WORKER
Service 2.0%
GS-7 153 LIGHT EQUIPMENT MECHANIC
Service 2.0%
GS-8 271 UTILITY ACCOUNT SPECIALIST
Service 2.0%
GS-8 182 RESOURCE RECOVERY EQUIP OPERAT
Service 2.0%
GS-8 288 PLANNING & COMM DEVEL TECH
Service 2.0%
GS-8 364 LIBRARY ASSISTANT IV Supervisor 2.0%
GS-8 216 WHARF CONSTRUCTION WORKER
Service 2.0%
GS-8 740 LIBRARY SPECIALIST
Management 2.0%
GS-8 742 LIBRARIAN I
Management 2.0%
GS-9 279 REVENUE COLLECTIONS SPECIALIST
Service 12.4%
GS-9 287 SPECIAL EVENTS COORDINATOR
Service 12.4%
GS-9 141 ENVIRON PROGRAMS ANALYST I
Service 12.4%
GS-9 198 TRANSPORTATION COORDINATOR
Service 12.4%
GS-9 237 GREEN BLDG ENVIRO SPECIALIST
Service 12.4%
GS-9 341 WHARF CONSTRUCTION CREW LDR
Supervisor 12.4%
GS-10 320 PARKING OFFICE SUPERVISOR Supervisor 1.1%
GS-10 280 FAC MAINT/ENERGY PROJ COORD
Service 1.1%
GS-10 136 ENVIRON PROGRAMS ANALYST II
Service 1.1%
GS-10 120 CHEMIST I
Service 1.1%

15.16 Attachment 1 - Revised 3/26/24
*Note: The unmapped position list has been updated to include the alternately staff Associate Planner II and removed a the Deputy Fire Marshal as it is currently mapped with the Fire Captain classification.

GS-11 232 INFORMATION TECH SPECIALIST III
Service 2.0%
GS-11 782 ECONOMIC DEVEL CORD I Management 2.0%
GS-11 777 ASSOCIATE PLANNER I/II* Management 2.0%
GS-11 783 ECONOMIC DEVEL CORD II Management 2.0%
GS-13 786 CITY CLERK ADMINISTRATOR
Management 2.5%
GS-13 723 TRANSPORTATION PLANNER II Management 2.5%
GS-13 727 PARKING PROGRAM MANAGER Management 2.5%
GS-13 712 CUSTOMER SERVICE MGR
Management 2.5%
GS-13 764 DEPUTY BUILDING OFFICIAL Management 2.5%
GS-13 779 WATERSHED COMPLIANCE MANAGER
Management 2.5%
GS-13 708 SENIOR PROFESSIONAL ENGINEER Management 2.5%
GS-13 738 SUSTAIN & RESILIENCY OFFICER Management 2.5%
LEO-5 292 SENIOR POLICE RECORDS TECH
Service 0.7%

15.17 City Council

AGENDA REPORT
DATE: 08/22/2023
AGENDA OF: September 12, 2023
DEPARTMENT: Human Resources
SUBJECT: 2021 Compensation Study Implementation for Various Bargaining Groups (HR)
RECOMMENDATION: Motion to:
1) Adopt a resolution modifying the Compensation Plan for identified Service classifications as a result of mapped enterprise-funded classifications receipt of pay increases from April 1, 2023; and
2) Adopt a resolution modifying the Compensation Plan for identified Supervisory classifications to address compaction and market issues; and
3) Adopt a resolution amending the FY 2024 budget in the amount of $483,668 allocated to various departmental operating budgets to cover the aforementioned cost increases as identified in the budget adjustment.

BACKGROUND:

In November 2021, Koff & Associates began a comprehensive compensation study for all city bargaining units, including Mid-management, Supervisory, Service, Fire Fighters, Fire Management, Police Officer Association, Police Management, and Executives.

As with previous studies, rather than researching over two hundred and fifty (250) classifications, eighty-four (84) classifications were identified as “benchmarked”. Benchmarked classifications are compared to classifications in other surveyed agencies and determines where classifications place in the market. Benchmarked positions were also mapped or linked to other classifications that were not directly studied and did not easily fit into a job family or series.

Given similar scope and responsibility, typical duties, requisite knowledge, skills and abilities, supervision received and exercised, and internal relationships, non-benchmarked positions were linked or mapped to benchmarked positions. Other non-benchmarked classifications may be linked to benchmarked classifications given similar scope and responsibility, typical duties, requisite knowledge, skills and abilities, supervision received and exercised, internal relationships, and pay scales.

15.18 As part of the Memorandum of Understanding (MOU) effective October 2022 with the Service Employees International Union, Local 521 (SEIU), the City and SEIU agreed to continue to meet and confer on findings from the 2021 Total Compensation Study prepared by Koff & Associates.

As a show of good faith, the City committed to and fulfilled its promise to ensure that classifications supported by enterprise funds and more than fifteen percent (15%) out of market, based on the findings of the 2021 study, would be brought within ten percent (10%) of the market by April 1, 2023. In addition, the City and SEIU agreed that the City would provide a full eleven percent (11%) increase to our sanitation workers. The enterprise funded classifications that received increases based on this agreement are identified in the attachment entitled City & SEIU Final Tentative Agreement, Enterprise Funds.

As part of the Memorandum of Understanding effective November 2022, the City and Supervisors (OE3) agreed to meet and confer with a pledge of preventing compaction between a supervisor and the position(s) they supervise. Salary compaction is defined as any percentage less than ten percent (10%) between top salary step of the supervisory and the top salary step of the classification it primarily supervises. Additionally, the City and OE3 agreed to meet and confer over implementation of the 2021 Total Compensation Study with the goal of raising total compensation of any classification below market median to ten percent (10%) of the total compensation market median, subject to Council approval.

DISCUSSION:

As a show of good faith and committement to our existing agreements, the City and labor groups met separately to discuss initial priorities. Based on these discussions and priorities, this report is broken into three focus areas:

1. Correcting Classification Mapping from April 1, 2023 SEIU Enterprise Fund Increases

2. Commitment to Supervisory OE3 Compaction and Market Stance Per Existing MOU

3. Addressing Remaining Classifications More than Ten Percent (10%) Below Market Focus Area 1: Correcting Classification Mapping from April 1, 2023 SEIU Enterprise Fund Increases
The increases to enterprise funded positions on April 1, 2023 caused several non-enterprise funded classifications to be out of alignment with their linked or mapped classifications. Staff recommends bringing all linked or mapped classifications into alignment. Eleven classifications are recommended given similarity in responsibilities, duties, knowledge, skills and abilities, and/or pay.

The eleven classifications include:

Class Number Classification Title
101 Accounting Assistant I
102 Accounting Assistant II
231 Box Office Representative
117 Building Maintenance Worker I
118 Building Maintenance Worker II
286 Executive to the City Manager
122 Homelessness Response Field Worker
167 Parks Maintenance Worker
281 Purchasing Assistant
186 Senior Parks Maintenance Worker
123 Senior Homelessness Response Field Worker

15.19 Staff recommends they receive the following matched increases as their enterprise funded counterparts. Costs by enterprise and general funds and classificaiton are as follows:

Focus Area 1: SEIU Aligment to Enterprise Dept Total
Enterprise Fund $28,053

1.40% $2,886
Accounting Assistant I Library (LIB) $2,886

5.40% $25,167
Building Maintenance Worker II LIB $13,471
Parks Maintenance Worker Parks & Rec (PR) $11,696
General Fund $268,998

1.40% $8,954
Accounting Assistant II Finance (FN) $6,175
Box Office Rep PR $722
Exec Asst to the CM City Mgr’s Off (CMO) $2,057
Purchasing Assistant FN $-

5.40% $260,045
Building Maintenance Worker I PR $3,368
Building Maintenance Worker II PR/LIB/PW $30,309
Homelessness Response Field Worker PW $17,545
Parks Maintenance Worker PR $157,901
Senior Parks Maintenance Worker PR $44,557
Sr. Homelessness Response Field Worker PW $6,365
Grand Total $297,052
Focus Area 2: Commitment to Supervisory OE3 Compaction and Market Stance Per Existing MOU
Out of forty-one (41) existing supervisory classifications, thirteen (13) classifications are recommended for the identified increases given compaction and/or market issues and are organized by expected cost for enterprise and general funds.

The thirteen(13) classifications include:

Class Number Classification Title
316 Administrative Services Supervisor
309 Garage Service Supervisor
363 Library Assistant III
323 Recreation Supervisor
360 Senior Environmental Compliance Inspector
367 Supervising Building Inspector
333 Utility Supervisor
370 Water Facility Mechanical Supervisor
357 Wastewater Facility Mechanical Supervisor
352 Water Distribution Supervisor V
356 Water Distribution Crew Leader III
346 Wastewater Collection Field Crew Leader
339 Water Meter Supervisor

15.20 Costs by enterprise and general funds and classificaiton are as follows:

Focus Area 2: OE3 Supervisors Compaction/Market Dept Total Enterprise Fund $124,094

2.10% $54,204
Library Assistant III (Market) LIB $25,399
Senior Environmental Compliance Inspector (Compaction) PW $3,192 Water Distribution Crew Leader III (Compaction/Market) Water (WT) $19,210 WW Collection Field Crew Leader (Compaction/Market) PW $6,403

2.40% $3,413
Utility Supervisor (Market) WT $3,413

2.90% $4,111
Water Meter Supervisor (Market) WT $ 4,111

4.20% $6,734
Garage Services Supervisor (Market) PW $6,734

4.60% $8,831
Water Distribution Supervisor V (Compaction) WT $8,831

8.90% $9,841
Administrative Services Supervisor (Compaction) PR/PW $9,841

10.80% $36,959
Water Facility Mechanical Supervisor (Market) WT $18,480 WW Facility Mechanical Supervisor (Market) PW $18,480
General Fund $62,522

1.10% $2,044
Supervising Building Inspector (Market) Planning $2,044

6.50% $45,716
Recreation Supervisor (Compaction/Market) PR $45,716

8.90% $14,762
Administrative Services Supervisor (Compaction) PR/PW $14,762 Grand Total $186,616
Focus Area 3: Addressing Remaining Classifications Out of Market and Continued Compaction Analysis
Focus Area 3 involves addressing all remaining classifications that are out of market more than ten percent. The benchmarked positions can be identified, but the complexity is then determining all linked or mapped classifications to those benchmarked positions, and the associated compensation impacts. Then, compaction must also be layered on, and associated compensation be calculated for compaction.

The Human Resources Department is preparing the analysis for review with supervisors, managers, and the unions from October through December in preparation of returning with a phased plan recommendation at mid-year for FY 2024. At minimum, an understanding of costs to bring all staff within ten percent of the market will support informed decision making in midyear of FY 2024 and in preparation of future compensation studies and budgets, such as the FY 2025 budget.

15.21 FISCAL IMPACT: The current fiscal year annual cost of each recommendation includes:

Focus Area General Fund
Enterprise
Funds Total
Focus Area 1: Mapped Correction (SEIU) $268,998 $28,053 $297,052 Focus Area 2: Compaction/Market (Supervisors) $62,522 $124,094 $186,616 Focus Area 3: All Other - Market TBD TBD TBD
Total Annual Cost $331,520 $152,147 $483,668
Note: Sums may have immaterial discrepancies due to rounding.

Budget for future fiscal years will need to be appropriated based upon existing MOU negotiated terms.

Prepared and Submitted
By:

Sara De Leon
Chief People Officer
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION - SEIU

2. RESOLUTION – SUPERVISORY OE3

3. CITY AND SEIU FINAL TENTATIVE AGREEMENT, ENTERPRISE FUNDS

4. BUDGET ADJUSTMENT AND DETAILS

15.22 City of Santa Cruz

BUDGET ADJUSTMENT REQUEST
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 Clear Form
2024
03/26/2024
2021 Compensation Study Phase III Implementation. See Attachment 1 for GL strings modifications. 0 FY 2024 PERSONNEL EXPENSES - See Attachment 1 210,894 210,894
-210,894
Sara De
Leon
Digitally signed
by Sara De Leon
Date: 2024.03.08
12:16:43 -08'00'
Elizabet
h Cabell
Digitally signed by
Elizabeth Cabell
Date: 2024.03.18
13:50:35 -07'00' 15.23

CITY OF SANTA CRUZ

HR BUDGET ADJUSTEMENTS
Mar 26, 2024
Primary FCD Account Mask Salary
Increase
Only
Fully
Burdened
Cost Incease
Salary
Increase
Only
Fully
Burdened
Cost Incease
101-10-03-1210-51110 2,496 3,944 624 986
101-10-03-1214-51110 3,520 5,561 880 1,390
101-10-03-1217-51110 2,827 4,467 707 1,117
101-12-00-1230-51110 2,867 4,530 717 1,132
101-14-11-1241-51110 40,062 63,297 10,015 15,824
101-15-10-1251-51110 4,294 6,785 1,074 1,696
101-20-23-2107-51110 3,952 6,244 988 1,561
101-30-40-3101-51110 14,188 22,416 3,547 5,604
101-30-41-3107-51110 1,575 2,489 394 622
101-30-42-3205-51110 15,835 25,019 3,959 6,255
101-30-43-3206-51110 4,117 6,505 1,029 1,626
101-30-43-3207-51110 11,718 18,514 2,929 4,628
101-30-43-3212-51110 15,835 25,019 3,959 6,255
101-30-45-3131-51110 1,575 2,489 394 622
101-40-62-4102-51110 4,037 6,379 1,009 1,595
101-40-64-4220-51110 11,592 18,316 2,898 4,579
101-40-64-4221-51110 9,138 14,438 2,285 3,610
101-40-64-4229-51110 917 1,448 229 362
101-40-66-4111-51110 1,081 1,709 270 427
101-50-70-1301-51110 1,647 2,602 412 650
101-50-71-1302-51110 7,275 11,494 1,819 2,873
101-50-74-2301-51110 3,687 5,825 922 1,456
101-50-75-2304-51110 1,647 2,602 412 650
101-51-80-5401-51110 88,831 140,352 22,208 35,088
104-30-43-3211-51110 17,134 27,072 4,283 6,768
104-40-64-4226-51110 4,358 6,886 1,090 1,722
108-50-74-2301-51110 13,348 21,089 3,337 5,272
224-40-62-4214-51110 1,561 2,466 390 617
226-40-64-4228-51110 1,561 2,466 390 617
235-40-60-4235-51110 3,154 4,984 789 1,246
313-51-81-9920-51110 1,994 3,150 498 788
711-70-91-7102-51110 15,573 24,605 3,893 6,151
711-70-92-7103-51110 22,165 35,021 5,541 8,755
711-70-92-7113-51110 1,588 2,508 397 627
711-70-93-7104-51110 2,573 4,065 643 1,016
711-70-94-7105-51110 6,352 10,036 1,588 2,509
711-70-95-7110-51110 2,496 3,944 624 986
711-70-97-7108-51110 32,742 51,733 8,186 12,933
711-70-98-7109-51110 12,697 20,061 3,174 5,015
711-70-98-7109-51113 2,396 3,786 599 946
721-40-61-7202-51110 21,028 33,224 5,257 8,306
721-40-65-7203-51110 37,013 58,481 9,253 14,620
721-40-65-7205-51110 77 121 19 30
731-40-63-7303-51110 10,847 17,138 2,712 4,284
731-40-63-7304-51110 3,876 6,124 969 1,531
731-40-63-7306-51110 7,506 11,860 1,877 2,965
741-40-64-7401-51110 20,791 32,850 5,198 8,212
752-40-60-7501-51110 1,010 1,595 252 399
811-40-61-7831-51110 3,217 5,083 804 1,271
841-12-07-7820-51110 2,239 3,538 560 884
842-14-18-7821-51110 6,372 10,068 1,593 2,517
843-12-07-7823-51110 2,239 3,538 560 884
951-36-51-3601-51110 19,583 30,941 4,896 7,735
951-36-51-3601-51122 1,711 2,703 428 676
Total 533,909 843,576 133,477 210,894
- - - -
source:

P:\Classification & Compensation\2024 Classification Study Preparation\2024 HR Cost Allocation (03-08-2024).xlsx FY25 Est 3 Months FY24 Est

15.24 City Council

AGENDA REPORT
DATE: 03/07/2023
AGENDA OF: 03/26/2024
DEPARTMENT: Planning and Community Development
SUBJECT: Annual Housing Element and General Plan Progress Reports (PL) RECOMMENDATION: Motion to accept the 2023 General Plan and Housing Element Annual Progress Reports, and direct staff to submit the reports to the Governor’s Office of Planning and Research and the California Department of Housing and Community Development.

BACKGROUND: The State of California Government Code Section 65400 requires cities and counties to report annually to the Governor’s Office of Planning and Research (OPR) and the California Department of Housing and Community Development (HCD) regarding their progress toward implementing their General Plans and, in a separate report, the Housing Element portion of the General Plan. Reporting on the Housing Element progress has expanded since 2018 to include reporting each stage of development applications, including both planning permit applications (entitlements) and building permit applications. Additional reporting requirements for 2023 include differentiating between ministerial and discretionary projects and identifying projects proposed with certain state streamlining provisions. The Annual Housing Element Report is submitted on an Excel form provided by HCD. There is no specific format required for the annual General Plan report, merely that it be a report on the status of the General Plan and an update on its implementation, with a few specific items of information noted below.

The purpose of this informational item is to present the attached 2023 Housing Element Annual Progress Report and 2023 General Plan Annual Progress Report to the City Council prior to submittal to OPR and HCD as required by State law.

DISCUSSION:
2023 Housing Element Annual Progress Report
Regional Housing Needs Allocation
The State of California and the regional Council of Governments, the Association of Monterey Bay Area Governments (AMBAG), use the Regional Housing Needs Assessment (RHNA) process to aid jurisdictions in making land use designation decisions that will accommodate estimates of future statewide growth and housing need.

16.1 The RHNA reporting cycles are eight years in length except that the current cycle was extended by one year to allow for its alignment with the Metropolitan Transportation Plan and Sustainable Communities Strategy (MTP/SCS), as required by Senate Bill 375. This most recent nine-year cycle ran from 2015-2023. Per the RHNA, the City was required to ensure that enough land is zoned for residential uses to allow for the potential development of a minimum of 747 units during the 2015-2023 cycle. This minimum number of units was further broken down by four required affordability levels based on Area Median Income (AMI) calculations: Very Low Income (VLI), Low Income (LI), Moderate Income, and Above Moderate Income. In the City’s 2015-2023 Housing Element, the City successfully demonstrated that there was sufficient appropriately zoned land to accommodate these units in the allocated affordability categories, and HCD certified that Housing Element in 2016.

HCD Reporting
The 2023 Housing Element Report utilizes the format provided by the HCD. This format provides HCD with information on the following items:
 A Summary table populated with data from Tables A, A2, C, and C (described below)  Residential projects submitted for entitlement (Planning or, if no Planning entitlement is required, Building) approval during 2023 (Table A);
 Residential projects with entitlements approved during 2023 (Table A2);  Residential building permits issued during 2023 (Table A2);  Residential building permits finaled during 2023 (Table A2);  Number of and affordability level of units within all of the above categories (Tables A and A2);
 Whether any projects or permits included a density bonus (Tables A and A2)  Whether any projects or permits were approved utilizing SB9, AB2011, SB6, or SB 35 streamlining (Tables A and A2);
 Annual progress on meeting the jurisdiction’s RHNA (Table B);  The progress on rezoning of properties required to meet a jurisdiction’s RHNA or to accommodate housing potential lost by downzoning other properties (Table C, not needed by Santa Cruz in 2023);
 Progress toward implementing Housing Element programs (Table D);  Commercial density bonus projects where a commercial developer partners with an affordable housing developer to provide a mixed-use project (Table E, not needed by Santa Cruz in 2023);
 Affordable projects that were substantially rehabilitated or received assistance in exchange for extending affordability requirements (Table F, this table is optional);  Above Moderate Income units that were converted to Moderate Income units (Table F2);  Locally owned lands listed on the Housing Element Sites Inventory that have been sold, leased, or otherwise disposed of (Table G, no City-owned lands were listed on the Housing Element Sites Inventory);
 Locally owned surplus sites (Table H);
 Student housing projects with special student housing density bonus (Table J, the City had no applications for this type of density bonus in 2023);

16.2  A link to the webpage with information on the City’s tenant preference policy (Table K, new for 2023); and
 An update on the City’s Local Early Action Planning (LEAP) grant activities (LEAP Reporting table, new for 2023).

Some of these items, such as the progress on rezoning, commercial density bonus projects, and disposal of locally owned lands on the Housing Element Sites Inventory, are not applicable to the City’s reporting as there is nothing to report or these categories do not apply (there are no current commercial density bonus projects, the City did not need to rezone any properties to meet the RHNA targets, and there were no City-owned properties listed on the Housing Element Sites Inventory).

RHNA Targets and Building Permits Issued in 2023
The progress toward meeting the RHNA is based upon building permits issued for housing units rather than building permits finaled (i.e., construction completed). Because of this distinction, the numbers found in this report may vary from those found in the Housing Element, those indicated in reports submitted to the State Department of Finance, and those generally used by the City to track housing development. Reviewing other reporting requirements, such as the number of residential units receiving Planning approvals (i.e., entitlements) and the number of residential units finaled during 2023, provides a more complete picture of the City’s progress towards meeting its housing goals. However, any projects that did not submit or receive approval, issuance, or occupancy permits within the calendar year 2023 do not appear in the 2023 Annual Progress Report.

Jurisdictions that meet or exceed their RHNA totals in all income categories by the end of the RHNA cycle are not subject to Senate Bill (SB) 35 (which will be superseded by SB 423 in 2025) for the following four years. SB 35 and SB 423 allow for ministerial approvals of development projects with 1) no discretion on the part of the City to deny projects that meet objective standards and 2) no California Environmental Quality Act review. Four years into the next RHNA cycle, jurisdictions will be reevaluated to see whether they have met their pro-rated share of RHNA targets. For the mid-cycle review, the jurisdiction must meet half the RHNA target numbers for each income category to be exempt from SB 35 / SB 423. If a jurisdiction has met half of its Above Moderate allocation but has not met half the allocation for Low-Income (LI) and Very-LowIncome (VLI) units, projects with at least 50 percent affordable units may apply for SB 35 / SB 423 processing. If the jurisdiction has not met the Above-Moderate allocation, any project that includes 10 percent affordable units or the jurisdiction’s inclusionary requirement, whichever is higher, may apply for SB 35 / SB 423 processing. Both SB 35 and SB 423 have specific criteria that must be met in order for projects or sites to be eligible, with the biggest pending change from SB 423 being that sites in the Coastal Zone will be eligible once that bill takes effect on January 1, 2025.

At the start of 2023, the City had achieved all categories of affordability for the 5th Cycle RHNA target except for the VLI category, which was 47 units short of the target. The City achieved its RHNA targets for all levels of affordability in May of 2023 with issuance of a building permit for the 415 Natural Bridges Drive SRO housing project, adding the final VLI units for the RHNA target. While these numbers will be under review by the state and formal determination will be

16.3 made by this summer, staff anticipates these numbers being confirmed, and the City will not be subject to SB 35 or SB 423 for the next four years.

In addition, because the City met its target in the first half of 2023 and prior to the end of the 5th RHNA cycle, state law allows the City to count building permits issued for new housing after June 30, 2023 toward the new, 6th RHNA cycle. The following table shows the total units issued building permits in 2023 by affordability and shows how many units count toward the 5th versus 6 th RHNA cycles. Note that Extremely Low Income (ELI) units count toward the VLI total and that the affordable, non-deed-restricted units shown in the table are Accessory Dwelling Units (ADUs).

ELI
/VLI:
deed
restricted
VLI:
non-deed
restricted
LI: deed
restricted
LI: non-deed
restricted
Moderate:
deed
restricted
Moderate:
non-deed
restricted
Above
moderate
Total
units
2023:
5 th
cycle
12/45 0 31 20 0 16 165 289
2023:
6 th
cycle
0 0 0 21 0 17 11 49
2023:
total
12/45 0 31 41 0 33 176 338
Unit totals for the 5th Housing Element RHNA cycle are shown in the table below.

Income Level RHNA
Allocation 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Units
Deed
Restricted 5 1 6 45 76 57
Very Low
NonDeed
Restricted
180 190
Deed
Restricted 7 15 13 47 17 2 60 31
Low
NonDeed
Restricted
118
6 51 43 81 86 20
479
Deed
Restricted
Moderate
NonDeed
Restricted
136
39 112 41 1 16 24 16
249
Above
Moderate 313 94 44 109 90 26 12 228 42 165 812
Total RHNA 747
Total Units 145 172 163 150 155 79 311 264 289 1,730

16.4 Of the 338 units for which building permits were issued in 2023, 245 units were from larger projects (175-unit Front/Riverfront, 50-unit 314 Jessie Street, and 20-unit Natural Bridges Drive).

ADUs and Junior Accessory Dwelling Units (JADUs) made up most of the remaining permits issued, with 83 in 2023. Since 2020, ADU construction has been increasing steadily. This may, in part, be related to changes in State law that loosened ADU development standards, lifted the owner-occupancy requirement for ADUs, allowed JADUs in addition to ADUs, and permitted ADUs in multi-family projects. It may also be related, at least partially, to the COVID-19 pandemic, during which many people were working from home and reconfigured their live/work spaces to better suit their new lifestyle needs.

Staff sent out an ADU survey in 2022 for the specific purpose of providing a more accurate reflection of their affordability (as they are non-deed restricted). A total of 99 responses were received, and 89 percent of all ADU rents reported were below the LI rent level. Based on those findings, last year’s Annual Progress Report included all ADUs in the LI, non-deed restricted unit count.
2022 ADU Survey Results
Number of
Bedrooms
HCD Low
Income Rent
Limits
Median Rents
from Survey
including
Family
Median Rents
from Survey,
Separate
Household only
Percent of Rents
Below Low Income
for All ADUs
Studio $2,178 $917 $1,779 15/17, 88%
1 Bedroom $2,333 $1,951 $2,107 44/50, 88%
2 Bedroom $2,800 $1,300 $2,075 6/6, 100%
At the March 28, 2023, City Council hearing regarding the 2022 Annual Progress Report, Council mentioned possible changes to the ADU reporting to better reflect the percentages found in the survey. For instance, there appears to be some ADUs with Moderate or Above Moderate rents so some consideration should be made to distribute ADUs across affordability levels. Staff agreed and during the 6th Cycle Housing Element process, staff proposed a more conservative ADU affordability breakdown that was approved by HCD: 50% Low Income, 40% Moderate, and 10% Above Moderate. This Progress Report uses that same breakdown for the ADU counts.

Pipeline Projects and Future Housing Element Cycle
There continuemany new applications for housing development in the pipeline. Applicants submitted for entitlements or, if entitlements were not required, for building permits for 808 units in 2023, up from 709 units in 2021 and 728 units in 2022. This includes the 40-unit project at 900 High Street, the 59-unit project at 1130 Mission Street, the 27-unit project at 1811 Mission Street, the 389-unit project at 908 Ocean Street, the 43-unit project at 515 Soquel Avenue, and the 84- unit project at 1800 Soquel Avenue, as well as 106 ADUs and several single-family homes. For more detailed information, please see the attached 2023 Housing Element Annual Progress Report.

16.5 The City’s RHNA for the 6th cycle is 3,736 units total, up from 747 units in the 5th cycle. The affordability level breakdown of those 3,736 units follows:

Number of
VLI Units
Number of
LI Units
Number of
Moderate
Units
Number of Above
Moderate Units
Total
Units
6 th Cycle RHNA 857 562 709 1,606 3,736
The City’s 6th Cycle Housing Element was determined to be in Substantial Compliance by HCD prior to the December 15, 2023 deadline and is effective as of January 1, 2024. As mentioned previously, because the City met all of its housing targets in the 5th Cycle, the City has been able to count housing units towards the 6th Cycle RHNA as of July 1, 2023. 2023 General Plan Annual Progress Report
As noted earlier, the State does not dictate the format for the General Plan Annual Progress Report but recommends that certain topics be covered, including General Plan updates, Zoning Ordinance amendments, a review of major development projects, what the jurisdiction has done to promote infill development, and intergovernmental coordination. These topics are covered in the beginning section of the attached 2023 General Plan Annual Progress Report.

The second portion of Annual Progress Report is an overview of key General Plan implementation efforts in 2023. Chapter 11 of General Plan 2030 identifies implementation tasks by City department. Planning staff periodically meets with City departments to monitor and discuss implementation plans and progress. Updates on key projects and programs are included in the “Selected Key Projects and Programs” section of the attached report.

Health in All Policies
The items before Council are consistent with the Health in All Policies pillars of equity, public health, and sustainabilty in that they track the City’s housing goals for all levels of affordability and help encourage the development of housing at all affordability levels. Providing housing at all levels of affordability promotes equity in that it provides more opportunities for people of various incomes and household sizes to reside in Santa Cruz’s expensive housing market. It promotes public health by striving to house more people regardless of their imcome. Finally, it promotes sustainability by encouraging housing at a variety of affordability levels in a city that is the job center of the region, so that more people can live closer to their place of work, supporting environmental and smart growth goals.

ENVIRONMENTAL REVIEW
The items before Council are informational and do not constitute a project under CEQA.

FISCAL IMPACT: There are no direct fiscal impacts to the General Fund from the transmittal of the Calendar Year 2023 General Plan Annual Progress report or Housing Element Annual Progress Report to OPR and HCD. However, failure to submit these reports would disqualify the City from significant State grant funding opportunities.

16.6 Prepared By:

Clara Stanger
Senior Planner
Matt VanHua
Principal Planner
Submitted By:

Lee Butler
Director of Planning &
Community Development
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. 2023 Housing Element Annual Progress Report

2. 2023 General Plan Annual Progress Report

16.7 Jurisdiction Name
Reporting Calendar YearFirst NameLast NameTitle Click here to download APR InstructionsEmailPhoneStreet AddressCityZipcode v_2_15_24
Click here to add rows to a table. If you add too many rows, you may select a cell in the row you wish to remove and type ctrl + d. 809 Center St., Room 107
Santa Cruz
95060
Clara
Stanger
Senior Planner
[email protected]
8314205247
Mailing Address
Please Start Here
General Information
2023
Santa Cruz
Contact Information
Optional: Click here to import last year's data. This is best used when the workbook is new and empty. You will be prompted to pick an old workbook to import from. Project and program data will be copied exactly how it was entered in last year's form and must be updated. If a project is no longer has any reportable activity, you may delete the project by selecting a cell in the row and typing ctrl + d.

Annual Progress Report January 2020 16.8
Optional: This runs a macro which checks to ensure all required fields are filled out. The macro will create two files saved in the same directory this APR file is saved in. One file will be a copy of the APR with highlighted cells which require information. The other file will be list of the problematic cells, along with a description of the nature of the error.

Optional: Save before running. This copies data on Table A2, and creates another workbook with the table split across 4 tabs, each of which can fit onto a single page for easier printing. Running this macro will remove the comments on the column headers, which contain the instructions. Do not save the APR file after running in order to preserve comments once it is reopened.Optional: This macro identifies dates entered that occurred outside of the reporting year. RHNA credit is only given for building permits issued during the reporting year.

Link to the online system: https://apr.hcd.ca.gov/APR/login.do Toggles formatting that turns cells green/yellow/red based on data validation rules.

Submittal Instructions
Please save your file as Jurisdictionname2023 (no spaces). Example: the city of San Luis Obispo would save their file as SanLuisObispo2023Housing Element Annual Progress Reports (APRs) forms and tables must be submitted to HCD and the Governor's Office of Planning and Research (OPR) on or before April 1 of each year for the prior calendar year; submit separate reports directly to both HCD and OPR pursuant to Government Code section 65400. There are two options for submitting APRs: 1. Online Annual Progress Reporting System - Please see the link to the online system to the left. This allows you to upload the completed APR form into directly into HCD’s database limiting the risk of errors. If you would like to use the online system, email [email protected] and HCD will send you the login information for your jurisdiction. Please note: Using the online system only provides the information to HCD. The APR must still be submitted to OPR. Their email address is [email protected]. Email - If you prefer to submit via email, you can complete the excel Annual Progress Report forms and submit to HCD at [email protected] and to OPR at [email protected]. Please send the Excel workbook, not a scanned or PDF copy of the tables.

16.9 Jurisdiction Santa Cruz
Reporting Year 2023Housing Element Planning Period 5th Cycle Current Year
Deed Restricted 57Non-Deed Restricted 0Deed Restricted 31Non-Deed Restricted 41Deed Restricted 0Non-Deed Restricted 33 176338
Units by Structure Type Entitled Permitted CompletedSingle-family Attached 0 0 4Single-family Detached 15 11 52 to 4 units per structure 3 0 95+ units per structure 862 245 7Accessory Dwelling Unit 10 82 70Mobile/Manufactured Home 0 0 0Total 890 338 95Infill Housing Developments and Infill Units Permitted # of Projects Units 92 338
00 130813255
0 00
(Jan. 1 - Dec. 31)
12/31/2015 - 12/31/2023
Number of SB 35 Streamlining Applications Approved
Very Low
Low
Moderate
Total Housing Applications Submitted:Number of Proposed Units in All Applications Received:Total Housing Units Approved:Total Housing Units Disapproved:Total UnitsHousing Applications SummaryUse of SB 35 Streamlining Provisions - ApplicationsNote: Units serving extremely low-income households are included in the very low-income permitted units totalsNumber of SB 35 Streamlining Applications Above Moderate
Indicated as InfillNot Indicated as Infill
Building Permits Issued by Affordability Summary
Income Level

16.10 Income Rental Ownership Total
Very Low 00 0Low 00 0Moderate 00 0
Above Moderate 00 0
Total 0 0 0
Streamlining Provisions Used - Permitted Units # of Projects UnitsSB 9 (2021) - Duplex in SF Zone 22SB 9 (2021) - Residential Lot Split 00AB 2011 (2022) 00SB 6 (2022) 00SB 35 (2017) 00Ministerial and Discretionary Applications # of Applications UnitsMinisterial 103 106Discretionary 27 707 Density Bonus Applications and Units PermittedNumber of Applications Submitted Requesting a Density Bonus 8Number of Units in Applications Submitted Requesting a Density Bonus 684Number of Projects Permitted with a Density Bonus 1Number of Units in Projects Permitted with a Density Bonus 50Housing Element Programs Implemented and Sites Rezoned Count 88 0
Programs ImplementedSites Rezoned to Accommodate the RHNAUnits Constructed - SB 35 Streamlining Permits

16.11 Jurisdiction Santa Cruz ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an optional field Reporting Year 2023 (Jan. 1 - Dec. 31) Housing Element ImplementationPlanning Period 5th Cycle 12/31/2015 - 12/31/2023 Date
Application
Submitted
Total
Approved
Units by
Project
Total
Disapproved
Units by
Project
Streamlining
2 34 6 78 9
Prior APN+ Current APN Street Address Project Name+ Local Jurisdiction Tracking ID Unit Category (SFA,SFD,2 to 4,5+,ADU,MH) Tenure R=Renter O=Owner Date Application Submitted (see instructions) Very Low- Income Deed Restricted Very Low- Income Non Deed Restricted Low- Income Deed Restricted Low-Income Non Deed Restricted Moderate- Income Deed Restricted Moderate- Income Non Deed Restricted Above Moderate- Income Total PROPOSED Units by Project Total APPROVED Units by project Total DISAPPROVED Units by Project Please select
streamlining
provision/s the
application was
submitted
pursuant to.

Did the housing
development
application seek
incentives or
concessions
pursuant to
Government
Code section
65915?
Summary Row: Start Data Entry Below 69 0 25 56 6 42 615 813 255 0 001-161-58 25 ROCKY RD CP23-0011 SFD O 3/6/2023 1 11 NONE No 004-202-38 936 WEST CLIFF DR CP22-0087 SFD O 3/29/2023 1 11 NONE No008-391-18 109 SOUTH RAPETTA RD CP22-0143 SFD O 5/10/2023 1 11 NONE No004-124-34 1811 MISSION ST CP22-0045 5+ R 5/19/2023 4 23 27 27 NONE Yes 006-171-02 247 HIGH ST CP20-0106 5+ R 6/2/2023 1 6 7 7 NONE Yes004-255-08 312 NATIONAL ST CP23-0066 SFD O 6/12/2023 1 11 NONE No010-202-04 113 PARK AVE CP23-0015 ADU R 7/7/2023 1 1 1 NONE No 003-301-31 375 OXFORD WAY CP22-0125 ADU R 7/21/2023 1 1 1 NONE No005-048-07 903 CEDAR ST CP23-0060 2 to 4 R 7/24/2023 3 33 NONE No008-181-23 150 FELKER ST CP23-0069 5+ R 7/27/2023 4 31 35 35 NONE Yes 011-041-63 1800 SOQUEL AVE CP22-0142 5+ R 8/4/2023 7 6 71 84 84 NONE Yes005-135-09 419 LINCOLN ST CP23-0099 ADU R 8/28/2023 2 2 2 NONE No 006-103-08 1011 LAURENT ST CP23-0051 SFD O 9/8/2023 1 11 NONE No 003-301-04 351 OXFORD WAY CP22-0159 SFD O 9/11/2023 1 11 NONE No006-203-25 1130 MISSION ST CP23-0103 5+ R 11/30/2023 8 51 59 NONE Yes 008-331-25 908 OCEAN ST CP23-0030 5+ R 12/20/2023 36 18 335 389 NONE Yes010-222-04 217 BROOK AVE CP23-0009 SFD O 5/17/2023 1 11 NONE No 001-161-22 118 ORTALON CIR CP21-0160 SFD O 5/11/2023 1 11 NONE No A 009-012-42 VISTA BRANCIFORTE CP21-0162 SFD O 10/16/2023 1 11 NONE No 010-012-29 515 SOQUEL AVE CP21-0165 5+ R 8/17/2023 4 3 36 43 43 NONE Yes010-251-14 218 SEABRIGHT AVE CP22-0121 2 to 4 R 3/6/2023 2 22 NONE No001-022-40 900 HIGH ST CP22-0164 5+ R 8/5/2023 5 4 31 40 NONE Yes 006-332-06 503 VAN NESS AVE B20-0519 ADU R
9/25/2023
11 1 NONE No
002-631-25 110 LADERA DR A B23-0018 ADU R
1/24/2023
11 1 NONE No
003-292-08 217 SUNSET AVE B23-0028 ADU R
1/31/2023
1 1 NONE No
Table A
Cells in grey contain auto-calculation formulas
1 5
Project Identifier Unit Types Proposed Units - Affordability by Household Incomes Density Bo Applica 10 Housing Development Applications Submitted

16.12 011-141-58 207 HARBOR DR B23-0033 ADU R
2/2/2023
1 1 NONE No
004-142-37 403 PALM ST B23-0034 ADU R
2/2/2023
11 1 NONE No
009-171-34 361 FAIRMOUNT AVE B23-0036 ADU R
9/19/2023
1 1 NONE No
010-253-20 216 2ND AVE B23-0039 ADU R
2/7/2023
11 1 NONE No
003-231-30 310 PLATEAU AVE B23-0051 ADU R
2/14/2023
11 1 NONE No

16.13 Jurisdiction Santa Cruz ANNUAL ELEMENT PROGRESS REPORT Reporting Year 2023 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning Period 5th Cycle 12/31/2015 - 12/31/2023
Table A2
Streamlining Infill
Housing without Financial
Assistance or Deed
Restrictions
Term of
Affordability or
Deed Restriction
Notes
23 56 89 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Prior APN+ Current APN Street Address Project Name+ Local Jurisdiction Tracking ID Unit Category (SFA,SFD,2 to 4,5+,ADU,MH) Tenure R=Renter O=Owner Very Low- Income Deed Restricted Very Low- Income Non Deed Restricted Low- Income Deed Restricted Low- Income Non Deed Restricted Moderate- Income Deed Restricted Moderate- Income Non Deed Restricted Above Moderate- Income Entitlement Date Approved # of Units issued Entitlements Very Low- Income Deed Restricted Very Low- Income Non Deed Restricted Low- Income Deed Restricted Low- Income Non Deed Restricted Moderate- Income Deed Restricted Moderate- Income Non Deed Restricted Above Moderate- Income Building Permits Date Issued # of Units Issued Building Permits Very Low- Income Deed Restricted Very Low- Income Non Deed Restricted Low- Income Deed Restricted Low- Income Non Deed Restricted Moderate- Income Deed Restricted Moderate- Income Non Deed Restricted Above Moderate- Income Certificates of Occupancy or other forms of readiness (see instructions) Date Issued # of Units issued Certificates of Occupancy or other forms of readiness How many of the units were Extremely Low Income? Please select the streamlining provision the project was APPROVED pursuant to. (may select multiple) Infill Units? Y/N+ Assistance Programs for Each Development (may select multiple - see instructions) Deed Restriction Type (may select multiple - see instructions) For units affordable without financial assistance or deed restrictions, explain how the locality determined the units were affordable (see instructions) Term of Affordability or Deed Restriction (years) (if affordable in perpetuity enter 1000)+ Number of Demolished/Destroyed Units Demolished or Destroyed Units Demolished/Des troyed Units Owner or Renter Total Density Bonus Applied to the Project (Percentage Increase in Total Allowable Units or Total Maximum Allowable Residential Gross Floor Area) Number of Other Incentives, Concessions, Waivers, or Other Modifications Given to the Project (Excluding Parking Waivers or Parking Reductions)
List the incentives,
concessions,
waivers, and
modifications
(Excluding Parking
Waivers or Parking
Modifications)
Did the project receive a
reduction or waiver of
parking standards? (Y/N)
Notes+
Summary Row: Start Data Entry Below 140 0 87 5 0 4 654 890 57 0 31 41 0 33 176 338 2 0 0 35 0 28 30 95 31 32 005-151-46 530 FRONT ST CP20-0098 5+ R 28 9 239 4/25/2023 276 0 0 NONE Y DB, INC 1000 50.0% 6 Development StandardYes Inclusionary units are affo 006-171-02 247 HIGH ST CP20-0106 5+ R 1 6 9/20/2023 7 0 0 NONE Y DB, INC 1000 35.0% 7 Development StandardYes One unit is affordable at t001-161-22 118 ORTALON CIR CP21-0160 SFD O 1 6/7/2023 1 0 0NONE Y 009-012-42 VISTA BRANCIFORTE CP21-0162 SFD O 1 10/26/2023 1 0 0NONE Y010-012-29 515 SOQUEL AVE CP21-0165 5+ R 4 3 36 8/17/2023 43 0 0 NONE Y DB, INC 1000 1 Demolished 35.0% 4 Development StandardYes Inclusionary units are affo 010-262-30 216 4TH AVE CP22-0038, B22-0120 ADU R 1 10/13/2023 1 1 12/5/2023 1 0NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 004-124-34 1811 MISSION ST CP22-0045 5+ R 4 23 6/15/2023 27 0 0 NONE Y DB, INC 1000 2 Demolished R 35.0% 3 Development StandardYes Inclusionary units are affo 004-202-30 950 WEST CLIFF DR CP22-0056 SFD O 1 5/17/2023 1 0 0NONE Y 1Demolished O004-164-07 128 WALK CIR CP22-0057 SFD R 1 2/1/2023 1 0 0NONE Y 1Demolished R 004-202-38 936 WEST CLIFF DR CP22-0087 SFD O 1 6/7/2023 1 0 0NONE Y 1Demolished O 009-234-25 915 WATER ST CP22-0092 5+ R 14 91 2/16/2023 105 0 0 NONE Y DB, INC 1000 1 Demolished R 50.0% 3 Development StandardYes Inclusionary units are affo 011-073-13 925 WINDSOR ST CP22-0114 SFD O 1 10/10/2023 1 0 0NONE Y 1Demolished O010-251-14 218 SEABRIGHT AVE CP22-0121, B23-0084 SFD R 2 3/23/2023 2 2 8/17/2023 2 0NONE Y 1Demolished O 003-301-31 375 OXFORD WAY CP22-0125 ADU R 1 9/12/2023 1 0 0NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey005-141-21 119 LINCOLN ST CP22-0128 5+ R 78 45 1 3/14/2023 124 0 0 19 NONE Y AHSC, LHTF DB, INC 55 72.0% 2 Development StandardYes 011-041-63 1800 SOQUEL AVE CP22-0142 5+ R 7 6 71 11/28/2023 84 0 0 NONE Y DB, INC 1000 25.0% 4 Development StandardYes Inclusionary units are affo 008-391-18 109 SOUTH RAPETTA RD CP22-0143, B23-0175 SFD O 1 5/10/2023 1 1 10/11/2023 1 0NONE Y 008-391-18 109 SOUTH RAPETTA RD B23-0175 ADU R 0 1 10/11/2023 1 0NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 003-301-04 351 OXFORD WAY CP22-0159 SFD O 1 10/18/2023 1 0 0NONE Y 1Demolished O003-293-14 1226 WEST CLIFF DR CP22-0162 SFD O 1 9/20/2023 1 0 0NONE Y 1Demolished Demolished unit was vaca 003-351-35 300 INGALLS ALLEY CP22-0166 5+ R 24 137 9/12/2023 161 0 0 NONE Y INC 1000 For residential apartmen010-222-04 217 BROOK AVE CP23-0009 SFD O 1 5/17/2023 1 0 0NONE Y001-161-58 25 ROCKY RD CP23-0011 SFD O 1 3/20/2023 1 0 0NONE Y010-202-04 113 PARK AVE CP23-0015 ADU R 1 8/17/2023 1 0 0NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 004-281-05 534 WEST CLIFF DR CP23-0029 ADU R 1 5/17/2023 1 0 0NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey006-103-08 1011 LAURENT ST CP23-0051 SFD O 1 10/4/2023 1 0 0NONE Y 1Demolished O 003-301-04 351 OXFORD WAY CP23-0054 ADU R 2 10/18/2023 2 0 0NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 005-048-07 903 CEDAR ST CP23-0060 2 to 4 R 3 11/1/2023 3 0 0NONE Y004-255-08 312 NATIONAL ST CP23-0066 SFD O 1 7/19/2023 1 0 0NONE Y 1Demolished Demolished unit was vaca 008-181-23 150 FELKER ST CP23-0069 5+ R 4 31 9/6/2023 35 0 0 NONE Y DB, INC 50.0% 5 Development StandardYes 005-135-09 419 LINCOLN ST CP23-0099 ADU R 2 8/29/2023 2 0 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 009-343-14 228 MORRISSEY BLVD B16-0523 ADU R 0 0 1 12/7/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey003-181-24 902 MODESTO AVE B17-0557 ADU R 0 0 1 8/29/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey010-064-29 534 S BRANCIFORTE AVE unit 3 B18-0024 SFA O 0 0 1 6/13/2023 1 NONE Y003-274-15 1720 WEST CLIFF DR B19-0249 SFD O 0 0 1 12/14/2023 1 NONE Y004-191-01 169 ALTA AVE B19-0272 SFD O 0 0 1 6/27/2023 1 NONE Y 1 Demolished O002-622-07 150 BALDWIN ST A B19-0366 ADU R 0 0 1 1/26/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey008-341-30 117 CARBONERA CT B19-0617 ADU R 0 0 1 1/19/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey010-072-42 418 PENNSYLVANIA AVE B19-0679 SFA R 0 01 2 5/31/2023 3 NONE Y Other 1000 1 Demolished R008-264-09 236 COULSON AVE B19-0752 ADU R 0 0 1 3/13/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey006-161-07 313 HIGH ST B20-0050 ADU R 0 0 1 2/9/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey003-101-19 136 ANDERSON ST B20-0102 ADU R 0 0 1 3/7/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey008-162-19 801 RIVER ST CP19-0103, B20-0146 5+ R 0 01 6 11/14/2023 7 NONE Y INC 1000 003-102-40 255 SEASIDE ST B20-0221 ADU R 0 0 1 9/14/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 001-111-52 109 HILLCREST TER CP20-0139, B20-0272 SFD O 0 0 1 5/17/2023 1NONE Y 009-152-41 1141 N BRANCIFORTE AVE B20-0290 ADU R 0 0 1 5/8/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 004-111-11 404 PALM ST B20-0324 ADU R 0 1 4/19/2023 1 1 8/15/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey008-332-27 448 MAY AVE CP20-0018, B20-0404 2 to 4 R 0 0 4 10/16/2023 4NONE Y 1Demolished R 009-183-04 521 POPLAR AVE B20-0408 ADU R 0 0 1 8/17/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 003-102-14 712 ALMAR AVE B20-0420 ADU R 0 0 1 5/23/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 009-211-40 220 BERKELEY WAY B20-0458 ADU R 0 0 1 5/15/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 002-112-42 123 CRESPI CT B20-0508 ADU R 0 0 1 5/19/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 006-332-06 503 VAN NESS AVE B20-0519 ADU R 0 1 9/25/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey008-262-12 116 CURTIS ST B20-0558 SFD O 0 0 1 5/22/2023 1NONE Y003-142-21 127 SEASIDE ST B21-0005 ADU R 0 0 1 10/6/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey009-264-08 510 PACHECO AVE B21-0006 ADU R 0 0 1 7/5/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey010-122-18 710 CAYUGA ST B21-0011 ADU R 0 1 1/19/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey004-242-11 218 SANTA CRUZ ST B21-0026 ADU R 0 0 1 4/4/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey006-172-04 125 SYLVAR ST A CP21-0064, B21-0037 2 to 4 R 0 0 1 3/9/2023 1NONE Y 010-166-37 122 OCEAN ST B21-0096 ADU R 0 0 1 1/26/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 004-191-53 122 OXFORD WAY B21-0198 ADU R 0 0 1 5/4/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey002-193-04 1214 KING ST A B21-0262 ADU R 0 0 1 8/28/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 006-491-10 707 CALIFORNIA ST B21-0294 ADU R 0 0 1 2/17/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 011-123-34 714 WINDHAM ST B21-0301 ADU R 0 0 1 2/9/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 002-214-08 233 MIRAMAR DR B21-0307 ADU R 0 0 1 7/5/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 011-161-08 115 HALL ST A B21-0313 ADU R 0 0 1 12/11/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey010-118-14 414 WINDSOR ST B21-0318 ADU R 0 0 1 5/18/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 004-391-11 555 BETHANY CURV B21-0371 ADU R 0 0 1 4/4/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey004-284-17 106 MANOR AVE B21-0372 ADU R 0 0 1 6/28/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 006-204-14 1316 LAUREL ST B21-0434 ADU R 0 0 1 8/28/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 009-122-20 150 FAIRLAND WAY B21-0453 ADU R 0 1 1/26/2023 1 1 11/30/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 004-194-05 810 PELTON AVE B21-0466 ADU R 0 0 1 11/15/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 009-271-14 440 MORRISSEY BLVD B21-0503 ADU R 0 0 1 4/25/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey008-322-32 127 BLAINE ST B21-0508 2 to 4 R 0 0 1 5/3/2023 1NONE Y004-214-06 316 CONTINENTAL ST B21-0516 ADU R 0 0 1 6/16/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey005-151-52 508/418 FRONT ST CP18-0153, B21-0529 5+ O 0 15 5 155 4/13/2023 175 0 0 NONE Y INC 1000 003-273-13 1816 WEST CLIFF DR B21-0535 SFD O 0 1 5/25/2023 1 0NONE Y 004-271-06 302 OREGON ST B21-0539 ADU R 0 0 1 1/12/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 003-211-41 223 JOHN ST B21-0583 ADU R 0 1 1/30/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey002-681-16 219 WESTERN DR B21-0589 ADU R 0 1 8/28/2023 1 1 12/20/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 009-271-20 420 MORRISSEY BLVD B21-0591 ADU R 0 0 1 11/27/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey004-273-05 219 OREGON ST B21-0594 ADU R 0 01 2/2/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey011-132-28 108 DARWIN ST B21-0600 ADU R 0 01 5/2/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey010-031-78 821 N BRANCIFORTE AVE CP21-0102, B21-0614 2 to 4 R 0 0 2 4/26/2023 2NONE Y 006-202-12 314 RIGG ST C and D B22-0019 ADU R 0 02 5/15/2023 2 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 003-203-17 324 GETCHELL ST B22-0069 ADU R 0 01 5/30/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 011-091-15 907 WINDHAM ST B22-0071 ADU R 0 01 10/31/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 004-282-09 214 PELTON AVE B22-0089 ADU R 0 01 5/30/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 002-161-42 310 ALTA VISTA DR B22-0092 ADU R 0 01 4/6/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey006-412-13 709 MISSION ST B22-0099 ADU R 0 01 7/31/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 010-072-42 424 PENNSYLVANIA AVE B22-0103 ADU R 0 01 5/31/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 011-032-16 115 HAGEMANN AVE B22-0123 ADU R 0 1 9/26/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey006-411-14 135 CHRYSTAL TER B22-0127 ADU R 0 1 5/8/2023 11 12/7/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey006-261-17 1416 BAY ST B22-0146 ADU R 0 01 11/27/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey002-012-44 1317 HIGH ST B22-0156 ADU R 0 01 6/7/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 010-254-14 215 4TH AVE CP21-0154, B22-016 SFD O 0 0 1 12/21/2023 1NONE Y 1Demolished O002-252-03 114 ARROYO CT B22-0178 ADU R 0 1 3/1/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 003-094-20 116 JETER ST B22-0182 ADU R 0 1 11/16/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 006-163-09 114 JORDAN ST B22-0194 ADU R 0 1 10/5/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 003-271-23 150 SACRAMENTO AVE B22-0215 ADU R 0 01 10/2/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 004-432-16 302 YOUNGLOVE AVE B22-0234 ADU R 0 2 5/11/2023 2 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey009-073-21 813 MORRISSEY BLVD CP22-0075, B22-0236 SFD O 0 1 2/27/2023 1 0NONE Y 009-073-21 813 MORRISSEY BLVD B22-0237 ADU R 0 1 2/27/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 006-261-17 1416 BAY ST CP21-0077, B22-0249 2 to 4 R 0 0 1 11/27/2023 1NONE Y 004-274-52 123 PHELAN CT B22-0261 ADU R 0 01 7/6/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 004-011-11 515 CALIFORNIA ST B22-0263 ADU R 0 1 10/31/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey006-502-09 317 CHESTNUT ST B22-0273 ADU R 0 1 2/21/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 002-235-16 137 TOLEDO ST B22-0278 ADU R 0 01 6/14/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 003-233-28 350 OXFORD WAY B22-0288 ADU R 0 1 4/20/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 009-065-15 718 PACHECO AVE B22-0290 ADU R 0 01 5/2/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey009-341-16 210 PACHECO AVE B22-0297 ADU R 0 01 10/30/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey003-281-42 131 JOHN ST B22-0300 ADU R 0 1 2/13/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey009-092-29 110 CAMINO DEL SOL B22-0302 ADU R 0 1 2/8/2023 11 11/28/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 003-134-04 207 HEATH ST B22-0306 ADU R 0 1 1/30/2023 11 10/11/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey004-111-29 124 LENNOX ST B22-0313 ADU R 0 1 1/30/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 006-133-19 126 MILES ST B22-0326 ADU R 0 01 11/29/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey004-274-27 200 LAGUNA ST B22-0328 ADU R 0 1 5/24/2023 11 11/21/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 004-043-16 1222 BAY ST B22-0330 ADU R 0 01 7/19/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 001-151-21 248 ROSS ST B22-0336 ADU R 0 1 1/25/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 008-202-10 143 GRANT ST B22-0343 ADU R 0 1 3/6/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 003-011-06 415 NATURAL BRIDGES DR CP21-0059, B22-0396 5+ R 0 20 5/11/2023 20 0 0 NONE Y INC, Other 1000 004-241-17 319 GHARKEY ST B22-0406 ADU R 0 1 4/19/2023 11 10/26/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 010-551-13 314 JESSIE ST CP21-0100, B22-0409 5+ R 0 22 26 2 4/13/2023 50 0 12 NONE Y DB, INC, Other 1000 14 Demolished R 0.0% 4 Development StandardYes The project used AB1763 004-123-37 546 BELLEVUE ST B22-0441 ADU R 0 1 5/1/2023 11 8/15/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey009-343-03 213 PACHECO AVE B22-0450 ADU R 0 1 1/24/2023 11 4/28/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 008-373-12 250 VISTA BELLA DR B22-0458 ADU R 0 1 6/6/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 004-215-11 910 COLUMBIA ST B22-0475 ADU R 0 1 5/11/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey010-232-16 307 CYPRESS AVE A B22-0480 ADU R 0 1 4/13/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey006-311-04 1323 LAUREL ST B22-0481 ADU R 0 1 12/4/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey006-162-06 208 KING ST B22-0484 ADU R 0 1 3/2/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 010-165-35 229 PEARL ST B22-0486 ADU R 0 1 2/16/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey006-241-24 102 BRADLEY DR B22-0497 ADU R 0 1 5/9/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 004-194-29 802 PELTON AVE B22-0511 ADU R 0 1 9/19/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 011-131-02 912 WINDHAM ST B22-0517 ADU R 0 1 8/21/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 006-271-05 655 HIGH ST B22-0525 ADU R 0 1 5/18/2023 11 10/9/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 004-162-35 143 WALK CIR B22-0528 ADU R 0 1 4/11/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey004-431-11 301 YOUNGLOVE AVE B22-0541 ADU R 0 1 6/29/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 010-132-08 101 CALEDONIA ST B22-0549 ADU R 0 1 6/14/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 009-172-10 358 FAIRMOUNT AVE B22-0550 ADU R 0 1 4/6/2023 11 8/24/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey004-253-19 404 CENTENNIAL ST B22-0551 ADU R 0 1 5/17/2023 11 9/25/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey009-161-53 211 FAIRMOUNT AVE BLD 1 B22-0553 SFD R 0 1 12/18/2023 1 0 SB 9 (2021) - Duplex in SF Z Y 009-161-53 211 FAIRMOUNT AVE BLD 2 B22-0554 SFD R 0 1 12/18/2023 1 0 SB 9 (2021) - Duplex in SF Z Y003-262-17 110 AUBURN AVE B22-0565 SFD O 0 1 5/31/2023 1 0 NONE Y 1 Demolished O006-502-18 320 MYRTLE ST B22-0571 ADU R 0 1 6/14/2023 11 12/20/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 004-601-05 414 CALIFORNIA ST B22-0580 SFD O 0 1 8/22/2023 1 0NONE Y004-174-13 513 WILKES CIR B22-0585 ADU R 0 1 4/20/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 006-472-14 528 LINCOLN ST B22-0588 ADU R 0 1 5/31/2023 11 8/30/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey002-631-06 1808 KING ST B22-0629 ADU R 0 1 5/16/2023 11 12/21/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 009-011-08 1413 N BRANCIFORTE AVE B22-0643 ADU R 0 1 7/24/2023 11 11/14/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 003-275-04 135 SWIFT ST B22-0648 ADU R 0 2 12/14/2023 2 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey004-142-37 403 PALM ST B23-0034 ADU R 0 1 10/2/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 010-253-20 216 2ND AVE B23-0039 ADU R 0 1 8/9/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 003-231-30 310 PLATEAU AVE B23-0051 ADU R 0 1 8/28/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 004-154-28 206 GRAHAM AVE B23-0054 ADU R 0 2 9/6/2023 2 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 002-218-39 215 WEST AVE B23-0070 ADU R 0 1 5/30/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 004-041-43 122 SADI ST B23-0087 ADU R 0 1 5/15/2023 11 8/16/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 006-181-09 337 LAURENT ST B23-0096 ADU R 0 1 10/23/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey011-013-02 723 HANOVER ST B23-0110 ADU R 0 1 6/20/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 010-205-15 107 CAYUGA ST B23-0116 ADU R 0 1 7/24/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 003-274-05 135 MERCED AVE B23-0144 ADU R 0 1 8/14/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey Density Bonus
1 Unit Types Affordability by Household Incomes - Completed Entitlement Affordability by Household Incomes - Building Permits Affordability by Household Incomes - Certificates of Occupancy 4 7 10
Note: "+" indicates an optional field
Housing with Financial Assistance
and/or Deed Restrictions Project Identifier Demolished/Destroyed Units Annual Building Activity Report Summary - New Construction, Entitled, Permits and Completed Units

16.14 Jurisdiction Santa Cruz ANNUAL ELEMENT PROGRESS REPORT Reporting Year 2023 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning Period 5th Cycle 12/31/2015 - 12/31/2023
Note: "+" indicates an optional field
004-181-20 106 PLATEAU AVE B23-0148 ADU R 0 1 8/14/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 001-152-01 201 ROSS ST B23-0150 ADU R 0 1 8/8/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 008-231-18 114 FRANKLIN ST B23-0153 ADU R 0 1 11/13/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey008-231-18 114 FRANKLIN ST B23-0157 ADU R 0 1 11/13/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey008-561-21 154 FRANKLIN ST B23-0168 ADU R 0 1 7/6/2023 11 12/18/2023 1 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 009-142-02 1105 N BRANCIFORTE AVE B23-0214 ADU R 0 1 11/9/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 004-471-05 429 BELLEVUE ST B23-0235 ADU R 0 1 11/1/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 003-202-28 206 CHACE ST A B23-0240 ADU R 0 1 10/9/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 006-094-04 239 MOORE ST B23-0245 ADU R 0 1 10/24/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey003-253-22 275 CHICO AVE B23-0265 ADU R 0 1 12/21/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey004-202-34 974 WEST CLIFF DR B23-0268 SFD O 0 1 10/16/2023 1 0NONE Y Demolished O 004-181-22 116 PLATEAU AVE B23-0280 ADU R 0 1 9/6/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 011-093-05 211 HARBOR DR B23-0285 ADU R 0 1 9/19/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 003-212-18 216 WANZER ST B23-0293 ADU R 0 1 10/26/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey009-064-01 324 PROSPECT HTS B23-0333 ADU R 0 1 10/10/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 002-371-01 119 CARDIFF CT B23-0353 ADU R 0 1 11/27/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 005-131-01 714 WASHINGTON ST A B23-0370 ADU R 0 1 11/1/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 002-631-10 212 LADERA CT B23-0387 ADU R 0 1 12/20/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 006-241-23 917 HIGH ST B23-0391 ADU R 0 1 10/11/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey004-163-11 206 WILKES CIR B23-0440 ADU R 0 1 11/20/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey010-172-10 225 BUENA VISTA AVE B23-0459 ADU R 0 1 11/2/2023 1 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 010-232-16 307 CYPRESS AVE A B22-0480 SFD O 0 1 4/13/2023 1 0NONE Y004-202-38 936 WEST CLIFF DR CP22-0087 ADU R 1 6/7/2023 1 0 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 003-293-14 1226 WEST CLIFF DR CP22-0162 ADU R 1 9/20/2023 1 0 0 NONE Y ADU affordability level assigned arbitrarily based on affordability ratios of existing ADUs as determined by ADU survey 0 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 0
0 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 0 0 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 0 0 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 0 0 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 0 0 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 0

16.15 Jurisdiction Santa Cruz ANNUAL ELEMENT PROGRESS REPORT Reporting Year 2023 (Jan. 1 - Dec. 31) Housing Element ImplementationPlanning Period 5th Cycle 12/31/2015 - 12/31/2023 1 Projection Period 34
RHNA Allocation by
Income Level 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Units to Date (all years) Total Remaining RHNA by Income Level Deed Restricted - 5 1 - 6 45 - - 76 57
Non-Deed Restricted - - - - - - - - - - Deed Restricted - 7 15 13 47 17 - 2 60 31 Non-Deed Restricted - - - - 6 51 43 81 86 41 Deed Restricted - - - - - - - - - - Non-Deed Restricted - 39 112 41 1 16 24 - - 33 Above Moderate 313 - 94 44 109 90 26 12 228 42 176 821 - 747
- 145 172 163 150 155 79 311 264 338 1,777 -
5 67
Extremely low-Income
Need 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Units to Date Total Units Remaining - - - - - - - 17 12 29 -
VLI Deed Restricted
VLI Non Deed RestrictedLI Deed RestrictedLI Non Deed RestrictedMI Deed RestrictedMI Non Deed RestrictedAbove Mod Income Please note: The APR form can only display data for one planning period. To view progress for a different planning period, you may login to HCD s online APR system, or contact HCD staff at [email protected].
-
190
This table is auto-populated once you enter your jurisdiction name and current year data. Past year information comes from previous APRs. 266
Moderate
180 118 136
Please contact HCD if your data is different than the material supplied here 500
2 Table B
Regional Housing Needs Allocation Progress
Permitted Units Issued by Affordability
- -
Please note: For the last year of the 5th cycle, Table B will only include units that were permitted during the portion of the year that was in the 5th cycle. For the first year of the 6th cycle, Table B will only include units that were permitted since the start of the planning period. Projection Period units are in a separate column.

Total RHNA
Total Units
Income Level
Very LowLowExtremely Low-Income Units*
Note: units serving extremely low-income households are included in the very low-income RHNA progress and must be reported as very low-income units in section 7 of Table A2. They must also be reported in the extremely low-income category (section 13) in Table A2 to be counted as progress toward meeting the extremely low-income housing need determined pursuant to Government Code 65583(a)(1).*Extremely low-income houisng need determined pursuant to Government Code 65583(a)(1). Value in Section 5 is default value, assumed to be half of the very low-income RHNA. May be overwritten.

Progress toward extremely low-income housing need, as determined pursuant to Government Code 65583(a)(1).

Please Note: Table B does not currently contain data from Table F or Table F2 for prior years. You may login to the APR system to see Table B that contains this data.

16.16 Jurisdiction Santa Cruz ANNUAL ELEMENT PROGRESS REPORT Reporting Year 2023 (Jan. 1 - Dec. 31) Housing Element ImplementationPlanning Period 5th Cycle 12/31/2015 - 12/31/2023 Date of Rezone Rezone Type
2 4 5 6 7 9 10 11
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Date of Rezone Very Low-Income Low-Income Moderate-Income Above Moderate- Income Rezone Type Parcel Size (Acres) General Plan Designation Zoning Minimum Density Allowed Maximum Density Allowed Realistic Capacity Vacant/Nonvacant Description of Existing Uses Note: "+" indicates an optional fieldCells in grey contain auto-calculation formulas Summary Row: Start Data Entry Below
3 8
Project Identifier RHNA Shortfall by Household Income Category Sites Description 1 Sites Identified or Rezoned to Accommodate Shortfall Housing Need and No Net-Loss Law Table C

16.17 Jurisdiction Santa Cruz
Reporting Year 2023 (Jan. 1 - Dec. 31)
123 4
Name of Program Objective Timeframe in H.E Status of Program Implementation

1.1 Provision of Adequate Sites
Maintain an inventory of available vacant and underutilized sites that can accommodate new housing.

Update annually Updates were completed annually. Update completed in 2023 in preparation of 6th Cycle Housing Element.

1.1 Provision of Adequate Sites
Require the preparation of Specific Plans or Area Plans for larger developable residential areas identified in the Land Use Element.

Prior to development approval
Completed – The Downtown Plan was amended in 2017 toextend Additional Height Zone A to Laurel Street and modifyingAdditional Height Zone B for the Front Street Riverfrontproperties, with an intent to create opportunity for additionalhousing units in these zones. Specifically, the amendmentsincreased allowable building height in the area bounded byPacific Avenue, Front Street, Cathcart Street, and Laurel Streetfrom 50 feet to 75 feet and up to 85 feet for a smaller portion ofthe sites larger than 50,000 square feet. In the area bounded byFront Street, the Riverwalk, Soquel Avenue, and Laurel Street,the amendments increased allowable building height from 50feet to 70 feet under specific conditions. The changes to theadditional height zones have facilitated approval projects inthese areas including three under construction with a total of465 new residential units (100 Laurel Street, 508 Front Street,818 Pacific Avenue) and two projects that have obtained landuse entitlements for a total of 370 additional units (902 PacificAvenue and 530 Front Street)A Planned Development project was completed on Golf ClubDrive that retained an existing unit and provided 10 newunits of supportive housing for developmentally disabledindividuals, including one affordable unit. There have beensome discussions related to a potential project on theSwenson parcel by Antonelli Pond

1.1 Provision of Adequate Sites
Continue to require housing production goals for the larger housing opportunity sites described in the Land Use Element.

Ongoing
The City is continuing to review applications to promotehousing production. Generally, projects are encouraged to bedeveloped at the high end of the density range unless thereare physical or environmental constraints on the propertythat prevent this density. Regarding specific sites describedin the Land Use Element, the Planned Development project onGolf Club Drive has a density of 7.3 units per acre, at the highend of the Low Density Residential land use designation asrequired by General Plan policy LU 1.1.5

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.

Table D
Program Implementation Status pursuant to GC Section 65583

16.18 1.2 Mixed Use
Developments
Establish mixed-use development standards to encourage housing along transit corridors, including density levels, parking and open space requirements, and other development standards. 2015-2017
Completed – The City adopted Objective DevelopmentStandards in December 2022 that include specific standardsfor mixed use zones.

1.2 Mixed Use Developments
Examine the possibility of utilizing graduated density for mixed-use development. 2015-2017
Completed – The City determined there are too manyvariables to have blanket policy, particularly related to parceldepth adjacent to lower density neighborhoods.

1.2 Mixed Use Developments
Encourage the redevelopment of existing single-story commercial buildings to include upper story residential units, where feasible.

Ongoing
The City is continuing to redevelop throughout the
community, including several recent projects either addingunits above an existing single-story building or replacing asingle-story building with a taller, mixed-use building. TheCity has implemented ordinances and zoning changes tofacilitate additional housing and mixed-use buildings byamending parking regulations to eliminate parkingrequirements consistent with AB2097 and to implementmixed use zoning along commercial corridors. The City has permitted several projects that redevelop a site with existingcommercial buildings or parking areas into mixed-use projectswith upper floor residential uses. Those include 11 projectswith entitlements approved, adding 915 new housing units;four projects under construction, adding 515 units, and threeprojects with construction completed in the last housing cycle, with a total of 119 housing units

1.2 Mixed Use Developments
Encourage the redevelopment of existing projects with large parking lots to add housing units above existing development, taking advantage of shared parking potentials.

Ongoing
There are currently several projects in the pipeline thatwould redevelop parking lots to add mixed-use projects withsignificant amounts of affordable housing: the Pacific StationNorth (902 Pacific Ave.) and Pacific Station South (818 PacificAve.) projects, the Cedar Street Family Apts. (approvedpursuant to AB2162) (532 Center St.) and the Library MixedUse Project (119 Lincoln St.). As of 2023, a building permitapplication was issued for Pacific Station South, the Cedar St.Family Apartments were under construction, entitlementswere approved for Pacific Station North, and the LibraryMixed-Use Project obtained entitlements. These projectscreate a total of 387 new dwelling units, including 386affordable units.

1.3 Alternative Housing Types
Create and/or revise development standards for co-housing, live/work, and other alternative and appropriate housing types that respond to Santa Cruz’s diverse population and housing needs. 2018-2020
Completed – Several live/work projects are underway using current standards. ADU standards were updated in 2018,2019, 2020, and 2022 to comply with changes in State law.The City's Density Bonus and Inclusionary Ordinances werealso updated in 2020 to comply with changes in State law.The City revised its Small Ownership Unit ordinance into a Flexible Development Unit in 2021 and created requirementsfor Live-Work units through the Objective Standards process. and streamline
ADU

16.19 1.3 Alternative Housing
Types
Continue to implement the ADU program and monitor the effect of ordinance revisions on neighborhood vitality.

Annually
ADUs continue to be one of the City's most prolificdevelopment types. The City continues to implement andupdate the ADU ordinance, both to comply with State lawchanges and to encourage additional ADU development. TheADU ordinance was updated in 2015, 2016, 2019, 2020, and2022, with major changes to the ordinance to facilitate ADUdevelopment in 2019-2022. Aligning with these updates, thenumber of ADU permits issued increased, ranging from 56 in2019 up to 88 in 2022 as compared to 30-55 permits issued peryear in 2016-2018. In 2023, the CIty issued building permits for 69 new ADUs.

1.3 Alternative Housing Types
Examine development regulations to identify potential barriers to the development of alternative types of housing and, if such barriers are found, develop actions to remove or modify them as feasible. 2016-2018
Completed – In 2021, the City reviewed the SRO (SingleRoom Occupancy) and SOU (Small Ownership Units)ordinances and determined that the SOU unit type was notsuccessful and, therefore, replaced it with the FlexibleDensity Unit.

1.3 Alternative Housing Types
Encourage the State to recognize appropriate non-traditional housing types as housing types.

Ongoing
Completed – The City meets with our lobbyists at thebeginning of each legislative cycle to discuss priorities whichconsistently include bills that support affordable housing.,and the City's lobbyists includes this in their scope of work.The City’s lobbyists successfully lobbied our state legislatorsfor $15 million in the state budget for homelessnessresponse purposes. Over half of this amount has beendedicated to homeless shelter use, acquiring property to beused for homeless services and permanent supportive/ELIhousing, and completing a Coral St. Visioning exercise thatincludes direction to facilitate permanent supportivehousing, affordable housing, and homeless services. The City has also connected with staff of a state representative, initiated conversations with UCSC, and initiated research to inform discussions about non-traditionalhousing types

1.4 Planned Development Permit
Examine the minimum lot size requirement for Planned Development Permits and consider amending the Zoning Ordinance to allow PD Permits on smaller infill lots if appropriate. 2015-2018
The City has processed 11 Planned Development Permits
associated with housing projects or mixed use developmentsthat have been under review, entitlements approved, underconstruction, or construction completed within the 5th cycle,making up 289 residential units. It should be noted that withrecent changes to State density bonus law, developer interest inPlanned Development Permits has declined significantly as theyprefer the density bonus option as a means to vary fromdevelopment standards in order to create new housing. Sincethe State density bonus law changes took effect in 2021, the Cityreceived only one Planned Development Permit application and it is not clear whether such changes would substantially increase housingproduction in the City. Given currently development incentives and the need to prioritizing tasks with greater housing impact, this work was pushed out into the 6th Cycle Housing Element with an anticpated completion date of December 2026

1.4 Planned Development Permit
Examine parking requirements and other regulatory constraints that may deter the development of Planned Developments. Initiate study within 1 year of adoption of the Housing Element. 2016-2018
Completed – The City revised its parking standards for alldevelopment in 2020 to lower parking requirements, withrevisions within the Coastal Zone certified by the CaliforniaCoastal Commission in 2021. Additional parking revisionswere included in the Objective Standards Ordinance in 2022. In 2023, the City incorporated AB 2097 parking reductions into the Zoning Ordinance.

16.20 1.5 Development Review
Process
Work with the development community to continue to streamline the project and design review processes to provide a greater level of certainty in the outcome of housing proposals. 2016-2019
The City adopted a new Public Outreach policy in 2018 thatrequires larger projects to meet with the community early inthe development process to ensure community input,providing more certainty to developers who respond tocommunity comments.

1.5 Development Review Process
Periodically audit the effectiveness of the development review process to promote efficiency and predictability.

Biannually
The city is doing a new audit on the developmentreview process. Process mapping for project entitlementsand building permits occurred in 2021, along withconsultation on process flows with software providers inanticipation of permit tracking system upgrades, originallyanticipated to begin in 2022. However, it was put on hold bythe IT department due to issues with the vendor. In 2023, a software provider was selected, and processes were being mapped witht he new vendor.

1.5 Development Review Process
Review the existing development fee structure, including water and sewer connection fees, to determine if the current structure is appropriate and equitable. 2017-2018 While some fees, particularly for ADUs, have already been adjusted; a city-wide fee study is being considered.

1.5 Development Review Process
Review and adjust the fee structure for Single Occupancy Units and propose changes for City Council consideration as necessary. 2017-2018
One Single Occupancy Unit (SOU) project was constructed in the City during the 5th cycle. After completing a review of theSOU ordinance, the City found that use restrictions anddevelopment standards in the ordinance created the greatestimpediment to development of SOU units, rather than fees,which are based on square footage as required for any type ofmulti-family residential use. Therefore, the City amended theZoning Ordinance in 2022 to eliminate SOUs and insteadcreate a new type of unit called a Flexible Density Unit (FDU),which removed barriers to development by exempting FDUsfrom density limitations, providing more flexibility with regardto unit size and configuration, allowing units to be rented orsold, and allowing developments with FDUs to also include other types of units, among other changes.

16.21 1.5 Development Review
Process
Review the development standards in the Zoning Ordinance and consider impediments to housing development. 2015-2018
Completed – The City has concluded the initial review, withtasks to be undertaken as time permits. In 2020, the Citymade several amendments to the Zoning Ordinance to maintain consistency with state law regarding subdivisions, ADUs, anddensity bonus; to improve and streamline application processingin terms of permit modifications, eliminating public hearings forminor Administrative Use Permits; to eliminate Design Permitrequirements for minor projects such as small accessorybuildings; to create more flexible standards for duplexes oncorner lots; and to create more flexibility in residential parkingrequirements, In 2022, the City made significant revisions to theZoning Ordinance to implement objective developmentstandards for new residential and mixed-use development andto streamline the approval process for fully conforming projects;to create mixed-use zone districts along major transportationcorridors; to eliminate the Conditional Driveway Permit; toeliminate a public hearing requirement for parking variations; tostreamline permits for development on or adjacent to slopes;and to maintain consistency with state law with regard torelocation assistance, replacement housing requirements, andsmall and large family daycares. The City also made changes tothe ADU ordinance in 2015, 2016, 2019, 2020, and 2022 toeliminate impediments to development of these units andmaintain consistency with state law. In 2022, the City implemented a Flexibly Density Unit Ordinance to increase density by building smaller units that do not count towards density standards. This work was submitted to the Coastal Commission in 2023 and nearing approval within the Coastal Zone. In 2023, the City updated the Zoning Ordinance to reflect elimination of parking requirements within a half mile of a major transit stop consistent with state law. In 2023, the City continues to work on expanding the Downtown Specific Plan to allow for more development capacity on underutilized sites just south of the currently

1.5 Development Review Process
Consider revising the Zoning Ordinance to reflect policies of the General Plan 2030 that would remove or lessen constraints on housing development. 2015-2017
Completed – The City revised the Zoning Ordinance tomodify the Slope Regulations, limiting which permits requirepublic hearings and at what hearing body, and implementedthe objective development standards, clarifying standards fordevelopment. In addition, the City implements regulationsset forth by state law SB330 requiring the general plandensity to supersede regulations in the Zoning Ordinance that would otherwise limit the development potential of a project to a density less than allowed under the general plan.

1.6 Public Education and Participation
Continue to provide accurate and clear information to the public and the development community about City policies and the development review process and make such information available at the public counter.

Ongoing
The City adopted a new Public Outreach policy in 2018 thatclarifies what projects require public outreach and thevarious forms it should take. Meetings are scheduledmultiple times per year with the development community tounderstand how communications can be improved. Websiteupdates are continuous and ongoing, with informationposted about projects currently under review, providingadditional information to the public.

1.6 Public Education and Participation
Continue to develop educational materials such as brochures and videos that provide information on the development process, planning, and housing issues as programs change.

Ongoing
The City is committed to continuously develop educationalmaterials, particularly as ordinances are revised andupdated. This information is posted on the City’s website,included on social media platforms, and sent out in emails tothose who have signed up online to received information onvarious topics as well as on specific projects.

16.22 1.6 Public Education and
Participation
Continue to ensure that information is accessible and available to all members of the community on the City’s web page and at the public counter.

Ongoing
The City is committed to ensuring information is accessibleand available to all members of the community, with updatesrelated to development projects, ordinance revisions, andpolicy documents occurring throughout the process. ThePlanning Department has developed a new process toprovide information about current projects on the website.In addition, people can sign up to be notified when specificprojects or projects related to specific topics are beingreviewed or going to public hearings.

1.7 Mixed Income Projects
Develop zoning tools to provide incentives to the development of mixed income projects. 2015-2017
Completed – The City’s Inclusionary Ordinance requires
twenty percent of new units in housing projects to beaffordable to lower income households within each projectand the inclusionary units are required to be disbursedthroughout the development. In addition, the City has updated the density bonus regulations in the ZoningOrdinance to maintain consistency with state law. In 2022,the City updated the Zoning Ordinance to create FlexibleDensity Units (FDUs), units that don’t count toward densitylimitations and that can add more units to a housing ormixed-use development that are smaller and therefore more affordable by nature.

2.1 Affordable Housing Ordinance
Revise the Inclusionary Housing Ordinance to reflect recent legal decisions. 2017-2018 Completed – This Ordinance was revised in 2018, 2019 and 2020.

2.1 Affordable Housing Ordinance
Review the Small Ownership Unit and Single Room Occupancy Ordinances to consider ways to make them more effective in today's market. 2017-2018
Completed – In 2021, the City reviewed the SRO (SingleRoom Occupancy) and SOU (Small Ownership Units)ordinances and proposed a revision that would combinethese ordinances to a single ordinance for small units. Therevisions were adopted in 2022 and are in review withthe Coastal Commission.

2.1 Affordable Housing Ordinance
Prioritize a portion of public housing funds for the extremely low income household housing category.

Annually
Recent projects including units for extremely low-income households include the Library Mixed Use project, 818 PacificAve, and 902 Pacific. The City will continue to set aside fundsin the future. In addition, the inclusionary requirement forSRO units is for very low income units. In recent years, due tochanges in State Density Bonus law, the City is receivingmany density bonus projects that choose to provide theiraffordable housing requirement as fifteen percent very lowincome and five percent low income units. The combinationof SRO projects and density bonus projects has helped the City meet its 5th Cycle RHNA.

2.2 Regulatory and Financial Incentives
Identify residential projects for City financial or regulatory incentives subject to City Council approval.

Annually
The most recent incentives were granted to the 902 PacificAvenue and 818 Pacific Avenue affordable housing projects.

The City will continue to identify residential projects.

2.2 Regulatory and Financial Incentives
Explore the possibility of establishing a Real Estate Transfer Tax to help fund affordable housing. 2016-2019
The City considered taking an initiative for a Real EstateTransfer Tax to the voters in 2018 but determined not to atthat time as there were several other City and County taxmeasures on the ballot.

2.2 Regulatory and Financial Incentives
Explore the potential of dedicating a portion of TOT, either existing or new percentage, for affordable housing. 2016-2019
The City considered taking a measure to the voters toincrease the TOT to set aside a portion for affordable housingin 2018 but determined not to at that time as there wereseveral other City and County tax measures on the ballot.

16.23 2.2 Regulatory and
Financial Incentives
Direct City lobbyists to concentrate on legislation that would help fund affordable housing.

Annually
This is a current part of the direction given to the City's lobbyist, and the Governor has recently dedicated fundingfor housing, including affordable housing.Starting in 2018, staff advocated for legislation to useproceeds from bonds issued by the former redevelopmentagency (RDA) for affordable housing purposes and facilities for homeless persons rather than decreasing the bonds. Thebill, AB411 (Stone), authorizing the $16M of expenditures bythe City of Santa Cruz was passed by the State Assembly andSenate. It was vetoed by the Governor, however, on October 13, 2019.

2.2 Regulatory and Financial Incentives
Encourage "citizen lobbyists" on issues related to housing, particularly affordable housing.

Annually
This work included by the Housing Blueprint Subcommitteeof the City Council. The new Council Community OutreachPolicy encourages broader citizen participation.

2.3 Density Bonus Program
Amend the density bonus ordinance to reflect findings from recent court cases. 2015-2016 Completed – The City’s density bonus regulations were updated in 2017, 2018, and 2020.

2.3 Density Bonus Program
Continue implementation of the density bonus ordinance 2015-2023 The City continues to update the Density Bonus Ordnance tocomply with changes in State Density Bonus law, includingOrd. 2017-20 in 2017, Ord. 2018-10 in 2018, and Ord. 2020-23 in 2020.

2.3 Density Bonus Program
Evaluate and revise the City residential development standards to ensure housing projects can be built at the maximum density allowed under the underlying district. 2017-2018
Completed – The original update was completed in 2017.The City has subsequently followed HAA requirements in allowing the maximum residential development intensity on any site as expressed in either the Zoning Ordinance or the General Plan. In 2021, the City approved an increase in the number of affordable supportive units allowed by rightunder AB2162 to 100 units for one project and 120 units foranother. In 2022, the City implemented a Flexibly Density Unit Ordinance to increase density by building smaller units that do not count towards density standards to further increase potential density allowed on a site when it is governed by FAR. This work was submitted to the Coastal Commission in 2023 and nearing approval within the Coastal Zone.

2.3 Density Bonus Program
Continue to encourage public-private housing partnerships as a means to incentivize the production of affordable housing and build local capacity to manage such projects.

Annually
The City has worked with a number of affordable housingdevelopers. Specific projects built orunderway through these partnerships include 314 Jessie St(48 VLI units, 2 manager units), 818 Pacific Ave (20 ELI, 39VLI, 10 LI, 1 manager unit), 902 Pacific (29 ELI, 63 VLI, 34 LI, 2manager units), 708 Water (11VLI, 29 LI, 1 manager), 350Ocean (42 VLI, 20 LI), and 119 Lincoln (approx. 124 units, 114ELI and VLI, 10 LI).

2.3 Density Bonus Program
Explore creative approaches to developing and financing affordable housing in partnership with private developers. 2016-2019
The City has partnered with affordable developers to obtainadditional State HCD funding to finance affordable projects,including the Local Housing Trust Fund program, AffordableHousing Sustainable Communities program, and Infill &Infrastructure program.The City has also received a Pro Housing Designation from the State, which will help to facilitate future applications for affordable housing funds.

2.5 Preservation of Housing Opportunities
Continue implementation of the Condominium Conversion Ordinance. Ongoing As a duty of the Planning Department, the City is continuing to implement the Ordinance.

16.24 2.5 Preservation of
Housing Opportunities
Maintain current mobile home rent stabilization and conversion regulations to preserve 360 mobile homes in parks in the community. 2015-2023 The City has done a good job at preserving the mobile parks in the community and will continue to do so.

2.6 Preservation of At-Risk Affordable Housing
Work with interested agencies and community organizations to preserve atrisk units by monitoring their status, providing technical and/or financial assistance in return for extended affordability controls, and ensuring proper tenant notification prior to project conversion.

Annually
The City works with the Housing Authority to help preserveat-risk units. Many units that appear to be at risk are part ofa Section 8 program, which renews every five years. Thus,the City has been working with individual property owners toprovide incentives to maintain affordability.

2.6 Preservation of At-Risk Affordable Housing
Assist projects approved by City Council in return for extensions of their affordability controls for as long as feasible. 2015-2023
The Economic Development Department works withproperty owners to extend affordability agreementswhenever possible. In 2021, the Arbor Cove Senior Housingproject completed their rehabilitation of 22 units. Thisincluded critical and non-critical rehabilitation with mosttenants not needing temporary relocation during the repairs.Similarly, the City also worked with Mercy Housing to extendthe affordability of the Sycamore La Playa affordable housing development as part of a rehab.

3.1 Housing for Families with Children
Work with nonprofit organizations to identify proposed housing projects suitable to families with children and consider providing financial assistance, subject to availability and City Council approval, to facilitate and encourage their development. 2015-2023
Recent Ordinance Amendments related to Flexible Density Units can facilitate production of small, two-bedroom units that can accommodate small families at lower costs. The City's Economic Develoment and Housing continually works with non-profit organizations and affordable housing developers to help provide affordable housing that meets the needs of families. For instance, the City just facilitated the Pacific Station South project on City land that is currently under construction in partnership with developers and nonprofits. This project will construct a seven story building of that consists of ground floor commercial and residential amenity space, a second floor medical clinic, and 70 larger residential apartments suitable for families on the upper five stories. The project will provide 100% affordable housing to low income (60% of Area Median Income and below) households. Forty-seven of the affordable rental apartments will be assisted with the Santa Cruz County Housing Authority’s project-based vouchers, so the tenants will only pay up to 30% of their income, and a large majority of households that the Housing Authority serves are extremely low income (30% of Area Median Income and below) households. A minimum of twenty-five percent (25%) of these rental apartments will be supportive housing units.The project will co-locate medical/dental services a half block from the County's regional transit hub and the project site is located downtown, which is a transit priority area and is an ideal walkable area with a Walkscore of 98. Residents of the development will be able to access community center services, jobs, and commercial goods and services downtown within a 5 minute walk.

16.25 3.1 Housing for Families
with Children
Encourage the development of child care opportunities in conjunction with residential development. 2015-2023
For projects that include family-style housing, the City hasbeen encouraging the provision of childcare facilities onsite.A child care impact fee was added to the City's fee schedule in 2021 that will be used to perform a facilities analysis and to directly invest in child care facilities. The initial fees collected through this program were directed towards the new Mixed Use Affordable Housing and Library project on city land which includes a new public library, parking garage, and 124 units of affordable housing and a child care facility serving this project and other residents.

3.2 Children and Youth Development
Continue to assist nonprofit and forprofit organizations that provide services to children, youth, and families with children. 2015-2023 The City funds a number of social service organizations through its annual budget.

3.2 Children and Youth Development
Encourage the establishment of child care centers in appropriate locations. 2015-2023 For projects that include family-style housing, the City has been encouraging the provision of childcare facilities onsite.A child care impact fee was added to the City's fee schedulein 2021 that will be used to perform a facilities analysis andto directly invest in child care facilities. The Library projectincludes a new public library, parking garage, and 100 to 125units of affordable housing and a child care facility onsite.The City also amended the Zoning Ordinance in 2022 to allowboth small and large family home daycare facilities as byright uses in all zoning districts that allow residential uses.

3.3 Continuum of Care
Continue to implement current programs aimed at the reduction and the prevention of homelessness. 2015-2023
The City is actively working with other local jurisdictions to address homelessness and prevention. In addition, the Citycreated a new position to address homelessness within theCity. The City also created a Homelessness Response ActionPlan in 2022, with goals to create an organizational responseto homelessness and housing instability, engage with thecommunity, provide permanent affordable and supportivehousing, provide basic support services for unhoused persons,provide effective care and support services for unhoused persons, and support community safety.

3.3 Continuum of Care
Participate with other Santa Cruz County communities and organizations in implementing "All In - Toward a Home for Every County Resident, the Santa Cruz County Community’s Strategic Plan to Prevent, Reduce, and Eventually End Homelessness." 2015-2023
The City is actively working with other local jurisdictions toaddress homelessness and prevention. In addition, the Citycreated a new position to address homelessness within theCity.

3.3 Continuum of Care
Amend the Zoning Ordinance topermit transitional and supportivehousing as a residential usesubject only to those restrictionsthat apply to other residential usesof the same type in the samezone. 2016-2017
Completed – The City amended the Zoning Ordinance in 2016 topermit transitional and supportive housing as a residentialuse subject only to those restrictions that apply to otherresidential uses of the same type in the same zone.

3.4 Supportive Living Housing Services
Continue supporting organizations in maintaining permanent supportive housing and providing assistance to special needs groups.

Annually
Through the City’s annual budget, many social serviceorganizations are being funded continuously, with thesebeing included.

16.26 3.4 Supportive Living
Housing Services
Encourage the location of permanent supportive housing for the able-bodied in residential settings or other locations readily accessible to public amenities, public transit, shopping, and supportive services. 2015-2023
Several projects are currently in the pipeline, including 119Coral St., which will provide 120 units of supportive housing, and City-sponsored project at 818 Pacific Ave. (Pacific StationSouth), which will reserve 25% of its units for homelesshouseholds or those in danger of becoming homeless.Another City-sponsored project at 902 Pacific Ave. (PacificStation North, 95 units) will contain a minimum of 25% of theproject as supportive housing units. The 100% affordablehousing project at 532 Center St. (Cedar St Apartments) willalso be providing 25% of the 65 unit project for supportivehousing. Another 100% affordable housing project at 314 Jessie St. (Jessie St Apartments) will have 25% of the 50 unit project for supportive housing.

3.5 Student Housing
Continue to collaborate with UCSC on ways to increase the supply of student, faculty, and staff housing serving the University campus. 2015-2023 The City has been in consistent collaboration with the University in order to meet these strategic goals.

3.5 Student Housing
Promote housing strategies that reflect student housing needs including affordability and the siting of high density apartments and townhouses along transit corridors. 2015-2023
The City is committed to promoting affordable housing
strategies, as well as strongly encouraging the University toprovide additional student housing on campus. TheUniversity updated its Long Range Development Plan in 2021for the next 20 years and addresses student housing need. Asof March 2023, the UC Board of Regents has approved offinancials for the 3,000 bed (on-campus) Student housingWest project. The project includes the Hagar DevelopmentFamily Student Housing with 140 total units anticipated to becompleted in fall 2025. Also included is the HellerDevelopment scheduled for completion in fall 2028 andincluding approximately 780 units; an additional 165 units will be provided for graduate student housing.

3.5 Student Housing
Support State and federal legislation that would advance the housing goals of the community such as increasing the funding for housing at University of California campuses. 2015-2023
The City's lobbyist, citizen lobbyists, and local politiciansincluding City Council have been in support of increasingfunding for student housing at the State level at an ongoinglevel.

3.5 Student Housing
Explore innovative methodologies for development funding models and delivery methods for new housing. 2016-2020 The City has continued to explore funding opportunities to further the production of new housing.

3.5 Student Housing
Continue to administer the City's Rental Inspection Program to ensure maintenance of a healthy and safe rental housing stock.

Annually
As one of the Code Enforcement Division’s signature
programs, the City has been consistently requiring theupgrading of rental housing units to meet basic life andsafety standards. There are over 11,000 rental units in SantaCruz, all of which are required to participate in the ResidentialRental Inspection Program. In the last year, approximately 54percent of units inspected were upgraded to correct life andsafety deficiencies. While rental inspections were pausedduring COVID, prior to covid approximately 65-70 percent ofunits inspected were upgraded to meet life and safety standards.

3.6 Housing for Persons with Disabilities
Work with other Santa Cruz County jurisdictions and the County Housing Authority to support the compilation and publicizing of housing accessible to persons with disabilities. 2015-2023
The City has consistently been supporting the CountyHousing Authority, including through work on homelessnessissues.

16.27 3.6 Housing for Persons
with Disabilities
Work with non-profit organizations to develop housing for persons with disabilities.

Ongoing
The City has two recently completed projects that providehousing for persons with disabilities: the 708 Water St.project, completed in 2020 and the 335 Golf Club Dr. projectcompleted in 2021/2022.

3.6 Housing for Persons with Disabilities
Develop procedures to provide reasonable accommodations for persons with disabilities in land use and zoning. 2016-2017
The City has included this in the Zoning Ordinance, withspecific accommodations determined on a case-by-case basisdependent on the physical conditions of the property.

3.7 Housing and Community Development Program
Continue funding nonprofit human service and housing development organizations through the City’s Housing and Community Development Program subject to funding availability and City Council approval. 2015-2023
Through the City’s annual budget, many social serviceorganizations are being funded continuously – such as thenew Homeless Services Division.

4.1 Housing Choice Vouchers
Work with Santa Cruz County jurisdictions and interested community organizations to continue to advocate for a payment standard that keeps pace with changes in market rents.

Ongoing HUD updated the payment standard in 2018.

4.1 Housing Choice Vouchers
Encourage property owners to accept Section 8 tenants. Ongoing The Planning and Economic Development and HousingDepartments have developed a program to help ADU andother property owners to use the HCV program. The City cosponsorsa landlord incentive program to cover any propertydamage from low income tenants beyond what is covered bythe deposit.

4.2 Rental Assistance
Continue program implementation and assist households with security deposit and last month’s rent and/or emergency rent assistance.

Annually
The City has been working with the Housing Authority toprovide tenant-based rental and security deposit assistance.The City also has been providing Red Cross funds to theCommunity Action Board for emergency rent assistance forextremely low income tenants.

4.3 Mortgage Credit Certificate
Continue to support the program and encourage the assistance of up to three households each year.

Annually This program was previously funded through Redevelopment funding. With the dissolution of Redevelopment, the City has not been able to fund the program.

4.4 Grant Application Program
Investigate and apply for funds available through State housing programs that help meet the housing needs of Santa Cruz residents.

Annually
The City continues to investigate available State and federalgrant funding opportunities and apply for those for which theCity is eligible.

4.4 Grant Application Program
Continue to investigate and apply for additional sources of funding for new housing and supportive services.

Annually
The City continues to investigate additional sources offunding opportunities and apply for those for which the Cityis eligible.

4.4 Grant Application Program
Annually review and apply for appropriate funding resources for new housing and supportive services.

Annually
The City continues to annually review available State andfederal grant funding opportunities and apply for those forwhich the City is eligible.

4.5 Fair Housing Services Complete Fair Housing Plan and implement strategies. Annually Completed – The Fair Housing Plan is updated every fiveyears. The City is working to update the plan to line-up withthe 6th Housing Element Cycle and the next ConsolidatedPlan.

16.28 4.5 Fair Housing Services
Continue to provide free legal assistance to low income residents through California Rural Legal Assistance and to provide contact information for other free and low-cost legal services.

Annually The City is committed to continuing the accessibility of free legal assistance for low income residents.

5.1 Code Enforcement Continue to implement code enforcement program. Ongoing As a duty of the Code Enforcement Division, the City willcontinue to ensure that the program is enforced. In the lastyear, 48 percent of code enforcement complaints resulting inenforcement were resolved.

5.1 Code Enforcement
Conduct targeted code enforcement efforts in concert with the Beach/South of Laurel Comprehensive Area Plan and the HUD target areas.

Ongoing
The City will continue to conduct code enforcement efforts in targeted areas in conjunction with the Beach/South of LaurelComprehensive Area Plan.The City has held neighborhood clean-up events twice yearlyin two target areas, the Lower Ocean area and the BeachFlats area, for a total of four clean-up events per year. TheCity has also attending the UCSC Housing Fair to informstudents of the Residential Rental Inspection Program for those who live off campus.

5.1 Code Enforcement Consider expanding the Target Areas for proactive code enforcement efforts. 2015-2023 The City has been upgrading areas in the community that are less well-kept. Code Enforcement Division will continue to monitor this progress.

5.2 Rental Housing Inspection Program
Continue to administer the City's rental inspection program to ensure maintenance of a healthy and safe rental housing stock throughout the City.

Annually
Due to this being a prominent and ongoing program for the Code Enforcement Division, many units have been and willcontinue to be upgraded to meet basic life and safetystandards. There are over 11,000 rental units in Santa Cruz, allof which are required to participate in the Residential RentalInspection Program. In the last year, approximately 54 percentof units inspected were upgraded to correct life and safetydeficiencies. While rental inspections were paused duringCOVID, prior to covid approximately 65-70 percent of units inspected were upgraded to meet life and safety standards.

5.3 Housing Rehabilitation
Concentrate limited rehabilitation program funding where it will provide the most benefit.

Annually
As a standard, the City will always continue to meet this goal.The UHRP is not currently active; as such, rehabilitation projects are accepted as part of the CDBG program.

5.3 Housing Rehabilitation
Projects using rehabilitation program
funding shall explore ways to improve energy efficiency within the project. 2015-2018 Once life/safety issues have been addressed, energy efficiency is the next most important factor in rehabilitation projects.

5.3 Housing Rehabilitation Explore programs that would assist low income seniors to age in place. 2015-2018 The City partnered with Habitat for Humanity on the My House My Home program, which has expanded to other communities in California.

5.4 Beach/South of Laurel Comprehensive Area Plan
Continue to provide pro-active code enforcement and other community development activities for the Beach/South of Laurel and Lower OceanNeighborhood Revitalization Strategy Areas.

Ongoing
The City is committed to continuing to provide pro-activecode enforcement as well as other community developmentactivities for said communities. This includes cleanup days,where Code Enforcement provides dumpsters for residentsto drop off unwanted items. Usable items are donated toSanta Cruz Grey Bears. The City has held neighborhood cleanupevents twice yearly in two target areas, the Lower Oceanarea and the Beach Flats area, for a total of four clean-up events per year.

16.29 6.1 Water Provision and
Conservation
Continue to require all residential, commercial and industrial buildings to be retrofitted completely with lowconsumption plumbing fixtures at the time of sale of the property.

Ongoing
The City is committed to continuing the retrofitting with lowconsumption plumbing fixtures of all residential, commercial,and industrial buildings. The City certified 2,707 propertiesbetween January 1, 2015 and March 9, 2022, which includesproperties in our service area both inside and outside citylimits. The retrofit program officially ended March 2022following council approval to rescind Santa Cruz MunicipalCode Chapter 16.03. The City continues to provide rebatesfor water efficient toilets, clothes washers, and dishwashers,and provides free low water consumption showerheads andfaucet aerators to assist customers in retrofitting their properties with lowconsumption plumbing fixtures and appliances.

6.1 Water Provision and Conservation
Continue to implement water conservation measures and publicize efforts at the City Hall and on the City’s Water Conservation Office website at www.cityofsantacruz.com/departments/water/conservation Ongoing
The City is committed to continuing to implement waterconservation measures and publicize the efforts done by CityHall and the Water Conservation Office. Modification of theCity’s water rate structure in 2016 resulted in a stabledecrease in overall water consumption to approximately2,600 million gallons per year compared to pre-2014-2015drought levels of 2,900 to 3,300 million gallons per year, areduction of 11-21 percent in water usage systemwide.Throughout 2015-2023, the City has continued to implementa number of other water conservation measures that resultin water consumption reduction to a lesser degree than therate change. These measures include providing rebates forwater efficient toilets, clothes washers, dishwashers; rebatesfor converting lawns to low water use landscapes (ended in2022); provision of free water saving devices includingshowerheads, kitchen and bathroom faucet aerators, toiletleak detecting tablets, low flow hose nozzles, andshowerhead control valves; and availability of educationalinformation on water conservation, water meter reading,fixing leaks, and calculating landscape water budgets.Information on each of these measures continues to beavailable on the City’s Water Department website athttps://www.cityofsantacruz.com/government/citydepartments/water/conservation/more information

16.30 6.1 Water Provision and
Conservation
Maintain and implement short- and longterm contingency plans to ensure an adequate water supply for residents and business.

Ongoing
The City is pursuing a Water Supply Augmentation Strategy, with a portfolio including demand management (conservation), transfers and exchanges, aquifer storage and recovery, and recycled water or desalination in order to ensure a safe, adequate, reliable, affordable, and environmentally sustainable water supply. To support the augmentation strategy, the City has certified an Environmental Impact Report for the Santa Cruz Water Rights Project and is seeking water rights modification with the State Water Resources Control Board to increase the flexibility of the water system by improving the City’s ability to utilize surface water within existing allocations.Additionally, the City is pursuing a capital investment program, the Santa Cruz Water Program, to secure its future water supply portfolio, to improve reliability and resiliency in the face of climate change, and to address agedinfrastructure. Finally, as required by California Water Code and to manage risks due to possible future water supply shortages, the City has adopted a Water Shortage Contingency Plan as part of its 2020 Urban WaterManagement Plan.

6.2 Green Building Program
Continue the Green Building Program for design and construction of new housing.

Ongoing As a duty of the Building Division, the City will continue to utilize the Green Building program.

6.3 Transit Oriented Development
Continue to facilitate the development of transit-oriented housing projects through regulatory concessions, financial assistance, and zoning.

Ongoing The City is committed to continuing the facilitation of developing transit-oriented housing projects.

6.3 Transit Oriented Development
Link land uses and transportation systems and promote bicycle- and pedestrian-friendly neighborhoods.

Ongoing The City is continuing to promote bicycle and pedestrian friendly neighborhoods as well as linking land uses and transportation systems.

7.1 Greenhouse Gas (GHG) Reduction
Encourage the construction of housing along major transportation corridors and where alternative transportation is viable.

Ongoing
This has been implemented for the 2030 General Plan and the Zoning Ordinance.

Most larger development projects in the past few years have been along major corridors or in the downtown area. The adoption of the City’s Objective Development Standards in 2022 encourage compactdevelopment along major transportation corridors by providing certainty and reducing review times and costs for projects that meet the City’s Objective Standards.

7.1 Greenhouse Gas (GHG) Reduction
Adopt and implement key programs related to housing developed by the Regional Compact that meet city GHG reduction goals. 2016-2019
The City has included such reductions through the GreenBuilding requirements. In addition, various other programssuch as the City’s green waste recycling program are aimedat reducing GHG emissions.

7.1 Greenhouse Gas (GHG) Reduction
Encourage property owners to consider construction techniques and methods to reduce and respond to global warming.

Ongoing
The City's Green Building Standards ensure that individualprojects include such techniques and methods. The Cityadopted an electrification ordinance in 2020 that requiresnew buildings to be 100% electric. The City's electricity isprovided by Central Coast Community Energy (formerlyMonterey Bay Community Power), which provides carbonfree electricity from renewable and hydropower sources.

7.1 Greenhouse Gas (GHG) Reduction
Implement tracking and reporting procedures that meet AB32 requirements and the public interest. 2016-2019 Implementation of tracking and reporting procedures that meet AB32 was completed in 2019.

7.1 Greenhouse Gas (GHG) Reduction
Continue to implement the Climate Adaption Plan. Ongoing The Climate Adaption Plan of 2018 has been updated andadopted to include an assessment of social vulnerability toclimate change and sea level rise.

16.31 7.2 Energy Conservation
Promote efficiency upgrades and renewable energy projects over the use of carbon offsets to meet climate reduction goals.

Ongoing
The City discourages the use of carbon offsets for projectsand seeks to achieve all green building standards without useof "carbon credits." Carbon offsets are rarely used, only inlimited circumstances when other options are exhausted.

7.2 Energy Conservation Promote solar energy systems on housing projects. Ongoing The City developed a pilot program and awarded one CBDGgrant for a Grid Alternative Low-Income Solar Project for 6low income households. Three properties/households havehad solar installations. ED extended the grant to also allownon-profit installations. MHCAN, a local non-profit providingmental health services, has been identified as a potentialrecipient. The City has partnered with several PropertyAssessed Clean Energy (PACE) financing providers to providea variety of options for financing of solar installations onexisting properties.

General Comments

16.32 Jurisdiction Santa Cruz ANNUAL ELEMENT PROGRESS REPORT Reporting Period 2023 (Jan. 1 - Dec. 31) Housing Element ImplementationPlanning Period 5th Cycle 12/31/2015 - 12/31/2023 Description of Commercial
Development Bonus
Commercial Development Bonus
Date Approved
34 APN Street Address Project Name+ Local Jurisdiction Tracking ID+ Very Low Income Low Income Moderate Income Above Moderate Income Description of Commercial Development Bonus Commercial Development Bonus Date Approved Summary Row: Start Data Entry Below
Units Constructed as Part of Agreement
Commercial Development Bonus Approved pursuant to GC Section 65915.7 Table E
Note: "+" indicates an optional field
Project Identifier
1 2
Cells in grey contain auto-calculation formulas
(CCR Title 25 §6202)
Annual Progress Report January 2020 16.33
Jurisdiction Santa Cruz ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an optional field Reporting Period 2023 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulasPlanning Period 5th Cycle 12/31/2015 - 12/31/2023 The description should adequately document how each unit complies with subsection (c) of Government Code Section 65583.1+.

For detailed reporting requirements, see the chcklist here:

Extremely LowIncome+ Very Low-Income+ Low-Income+ TOTAL UNITS+ Extremely Low- Income+ Very Low- Income+ Low-Income+ TOTAL UNITS+ https://www.hcd.ca.gov/community- development/docs/adequate-sites-checklist.pdf Rehabilitation ActivityPreservation of Units At-RiskAcquisition of Residential UnitsMobilehome Park PreservationTotal Units by Income Table F
Please note this table is optional: The jurisdiction can use this table to report units that have been substantially rehabilitated, converted from non-affordable to affordable by acquisition, and preserved, including mobilehome park preservation, consistent with the standards set forth in Government Code section 65583.1, subdivision (c). Please note, motel, hotel, hostel rooms or other structures that are converted from non-residential to residential units pursuant to Government Code section 65583.1(c)(1)(D) are considered net-new housing units and must be reported in Table A2 and not reported in Table F.

Activity Type
Units that Do Not Count Towards RHNA+
Listed for Informational Purposes Only
Units that Count Towards RHNA +
Note - Because the statutory requirements severely limit what can be counted, please contact HCD at [email protected] and we will unlock the form which enable you to populate these fields.

Units Rehabilitated, Preserved and Acquired for Alternative Adequate Sites pursuant to Government Code section 65583.1(c) Annual Progress Report January 2020 16.34
Jurisdiction Santa Cruz ANNUAL ELEMENT PROGRESS REPORT
Note: "+" indicates an optional field
Reporting Period 2023 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulasPlanning Period 5th Cycle 12/31/2015 - 12/31/2023 Notes
23 6
Prior APN+ Current APN Street Address Project Name+
Local
Jurisdiction
Tracking ID
Unit Category
(2 to 4,5+)
Tenure
R=Renter
Very LowIncome Deed
Restricted
Very LowIncome Non
Deed
Restricted
Low- Income Deed
Restricted
Low- Income
Non Deed
Restricted
Moderate- Income
Deed Restricted
ModerateIncome Non Deed
Restricted
Above
ModerateIncome
Total Moderate Income Units
Converted from Above
Moderate
Date Converted Notes
Summary Row: Start Data Entry Below 0 0 0 0 0 00 0
Table F2
Above Moderate Income Units Converted to Moderate Income Pursuant to Government Code section 65400.2 For up to 25 percent of a jurisdiction’s moderate-income regional housing need allocation, the planning agency may include the number of units in an existing multifamily building that were converted to deed-restricted rental housing for moderate-income households by the imposition of affordability covenants and restrictions for the unit. Before adding information to this table, please ensure housing developments meet the requirements described in Government Code 65400.2(b). 5 Project Identifier Unit Types
1 4
Affordability by Household Incomes After Conversion Units credited toward Moderate Income RHNA

16.35 Jurisdiction Santa Cruz
Reporting Period 2023 (Jan. 1 - Dec. 31)Planning Period 5th Cycle 12/31/2015 - 12/31/2023 ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation
23 4
APN Street Address Project Name+ Local Jurisdiction Tracking ID+ Realistic Capacity Identified in the Housing Element Entity to whom the site transferred Intended Use for Site 1 Summary Row: Start Data Entry Below
Note: "+" indicates an optional fieldCells in grey contain auto-calculation formulas Table G
Locally Owned Lands Included in the Housing Element Sites Inventory that have been sold, leased, or otherwise disposed of Project Identifier
NOTE: This table must only be filled out if the housing element sites inventory contains a site which is or was owned by the reporting jurisdiction, and has been sold, leased, or otherwise disposed of during the reporting year.

16.36 Jurisdiction Santa Cruz Note: "+" indicates an optional field Reporting Period 2023
(Jan. 1 - Dec.
31)
Cells in grey contain auto-calculation
formulas
Designation Size Notes
1 2 34 5 6 7
APN Street Address/Intersection Existing Use Number of Units Surplus Designation Parcel Size (in acres) Notes 005-151-35 326 Front Street Public Facilities Exempt Surplus Land 0.101005-151-48 302 Front Street Public Facilities Exempt Surplus Land 0.11 NOTE: This table must contain an invenory of ALL surplus/excess lands the reporting jurisdiction owns Summary Row: Start Data Entry Below
Parcel Identifier

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Table H
Locally Owned Surplus Sites
For Santa Cruz County jurisdictions, please format the APN's as follows:999-999-99-9999

16.37 Jurisdiction Santa Cruz ANNUAL ELEMENT PROGRESS REPORT Reporting Period 2023 (Jan. 1 - Dec. 31) Housing Element ImplementationPlanning Period 5th Cycle 12/31/2015 - 12/31/2023 Project Type Date
Units (Beds/Student
Capacity) Granted
Density Bonus
Notes
23 56
APN Street Address Project Name+ Local Jurisdiction Tracking ID+ Unit Category (SH - Student Housing) Date Very Low- Income Deed Restricted Very Low- Income Non Deed Restricted Low- Income Deed Restricted Low- Income Non Deed Restricted Moderate- Income Deed Restricted Moderate- Income Non Deed Restricted Above Moderate- Income Total Additional Beds Created Due to Density Bonus Notes Summary Row: Start Data Entry Below
Note: "+" indicates an optional field
Cells in grey contain auto-calculation formulas
Table J
Student housing development for lower income students for which was granted a density bonus pursuant to subparagraph (F) of paragraph (1) of subdivision (b) of Section 65915 Project Identifier Units (Beds/Student Capacity) Approved 1 4
NOTE: STUDENT HOUSING WITH DENSITY BONUS ONLY. This
table only needs to be completed if there were student housing projects WITH a density bonus approved pursuant to
Government Code65915(b)(1)(F)
Annual Progress Report January 2020 16.38
Jurisdiction Santa Cruz ANNUAL ELEMENT PROGRESS REPORT
Reporting Period 2023 (Jan. 1 - Dec. 31)Planning Period 5th Cycle 12/31/2015 - 12/31/2023 Yes
Table K
Tenent Preference Policy
Local governments are required to inform HCD about any local tenant preference ordinance the local government maintains when the jurisdiction submits their annual progress report on housing approvals and production, per Government Code 7061 (SB 649, 2022, Cortese).

Effective January 1, 2023, local governments adopting a tenant preference are required to create a webpage on their internet website containing authorizing local ordinance and supporting materials, no more than 90 days after the ordinance becomes operational. https://www.cityofsantacruz.com/government/city-departments/economic-development-and-housing/housing-assistance-information-andresources/landlord-tenant-resources/tenant-preference-policy Does the Jurisdiction have a local tenant preference policy? If the jurisdiction has a local tenant preference policy, provide a link to the jurisdiction's webpage on their internet website containing authorizing local ordinance and supporting materials.

Notes

16.39 Jurisdiction Santa Cruz
Reporting Year 2023 (Jan. 1 - Dec. 31)
Total Award Amount Total award amount is auto-populated based on amounts entered in rows 15-26.

Task $ Amount Awarded $ Cumulative Reimbursement
Requested
Other
Funding Notes
Housing Element
Existing Conditions $20,000.00 $0.00 None
Complete but have not submitted reimbursement
request yet. LEAP extension was submitted in a
timely manner in 2023.

Public Outreach $25,000.00 $0.00 None Complete but have not submitted reimbursement request yet.

Policies and Objectives $40,000.00 $0.00 None Complete but have not submitted reimbursement request yet.

CEQA $30,000.00 $0.00 None Complete but have not submitted reimbursement request yet.

Draft Plan and Final Document $30,000.00 $0.00 None Complete but have not submitted reimbursement request yet.

Adoption $15,000.00 $0.00 None Complete but have not submitted reimbursement request yet.

Downtown Expansion
Existing Conditions $20,000.00 $0.00 REAP Complete but have not submitted reimbursement request yet.

Public Outreach $25,000.00 $0.00 REAP In progress but have not submitted reimbursement request yet.

Draft and Final Expansion Plan $50,000.00 $0.00 REAP In progress but have not submitted reimbursement request yet.

CEQA $30,000.00 $0.00 REAP In progress but have not submitted reimbursement request yet.

Summary of entitlements, building permits, and certificates of occupancy (auto-populated from Table A2) Current Year
Deed Restricted 140
Non-Deed Restricted 0
Deed Restricted 87
Non-Deed Restricted 5
Deed Restricted 0
Non-Deed Restricted 4
654
890
Current Year
Deed Restricted 57
Non-Deed Restricted 0
Deed Restricted 31
Non-Deed Restricted 41
Deed Restricted 0
Non-Deed Restricted 33
176
338
Current Year
Deed Restricted 2
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 35
Deed Restricted 0
Non-Deed Restricted 28
30 95

ANNUAL ELEMENT PROGRESS REPORT
Local Early Action Planning (LEAP) Reporting
(CCR Title 25 §6202)
Completed
Completed
Please update the status of the proposed uses listed in the entity’s application for funding and the corresponding impact on housing within the region or jurisdiction, as applicable, categorized based on the eligible uses specified in Section 50515.02 or 50515.03, as applicable.
$ 285,000.00
Task Status
Completed
In Progress
In Progress
In Progress
Completed
Completed
Completed
Completed
Total Units
Certificate of Occupancy Issued by Affordability Summary Income Level
Very Low
Low
Moderate
Above Moderate
Moderate
Above Moderate
Total Units
Completed Entitlement Issued by Affordability Summary
Income Level
Very Low
Low
Moderate
Above Moderate
Total Units
Building Permits Issued by Affordability Summary
Income Level
Very Low
Low

16.40 Table Cell Row Error Type
Table A P 15 The sum of Columns I-O must be greater than 0.Table A P 15 This cell is blank and should have a value as long as any other item in this row is populated.Table A2 AI 88 If very low-income units are reported as permitted, then the number of those units are are affordable to ELI must also be reported. You may report 0 units are affordable to ELI.Table A2 AI 133 If very low-income units are reported as permitted, then the number of those units are are affordable to ELI must also be reported. You may report 0 units are affordable to ELI.

16.41 CALENDAR YEAR 2023

GENERAL PLAN ANNUAL PROGRESS REPORT
MARCH 26, 2024
Planning and Community Development