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
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PLEASE NOTE:
Council may take a break(s) as needed.
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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.