City of Santa Cruz
809 Center Street
Santa Cruz, California 95060
MINUTES OF A CITY COUNCIL MEETING
May 28, 2024
10:00 AM
Mayor Keeley opened the City Council Closed Session at 10:04 a.m. in a public meeting via Zoom and in Council Chambers, for the purpose of announcing the agenda, and receiving public testimony.
Roll Call
Present: Councilmembers Newsome, Brown, Brunner, Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.
Absent: Councilmember Watkins.
Staff: City Manager M. Huffaker, Assistant City Manager L. Schmidt, City Attorney T. Condotti, Director of Finance E. Cabell, Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush.
Statements of Disqualification – None.
Public Comment
Mayor Keeley opened the public comment period at 10:06 a.m. There were no speakers. Mayor Keeley closed the public comment period at 10:06 a.m., at which time the meeting was closed to the public and Council adjourned to the Courtyard Conference Room.
Closed Session
1. Conference With Legal Counsel – Liability Claims (Government Code §54956.95) Claimant: Sentry Insurance
Claim against the City of Santa Cruz
Council received a status report, gave direction to the Risk Manager, and no reportable action was taken.
May 28, 2024 CITY COUNCIL MINUTES 6845
Closed Session (continued)
2. Conference with Legal Counsel - Existing Litigation (Government Code §54956.9(d)(1))
City of Santa Cruz v. Chevron Corp. et al., (Sea Level Rise Litigation) (Santa Cruz County Superior Court Case No. 17CV03243)
(United States District Court, Northern District Case No. 18-cv-00458 LHK) Council received a status report, and took no reportable action.
3. Conference with Legal Counsel – Anticipated Litigation (Government Code §54956.9(d)(2))
Significant exposure to litigation (one potential case to be discussed) Council received a status report, and took no reportable action.
City of Santa Cruz
809 Center Street
Santa Cruz, California 95060
MINUTES OF A CITY COUNCIL MEETING
May 28, 2024
10:45 AM
Call to Order – Mayor Keeley called the meeting to order at 10:48 a.m. in Council Chambers.
Roll Call
Present: Councilmembers Newsome, Brown, Watkins (arrived at 10:59 a.m.), Brunner, Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.
Absent: None.
Staff: City Manager M. Huffaker, Assistant City Manager L. Schmidt, City Attorney T. Condotti, Chief of Police B. Escalante, Director of Parks and Recreation T. Elliot, Director of Planning and Community Development L. Butler, Chief of Fire R. Oatey, Director of Public Works N. Nguyen, Director of Economic Development and Housing B. Lipscomb, Director of Finance E. Cabell, Director of Water H. Luckenbach, Director of Information Technology K. Morgan, Chief People Officer S. De Leon, Deputy City Manager L. Murphy, Economic Development Manager R.
Unitt, Acting Parks Superintendent M. Godsy, Principal Management Analyst L. Bass, Assistant Director of Public Works/City Engineer K.
Crossley, Principal Management Analyst V. Pearson, Senior Planner R.
Bane, Transportation Manager M. Starkey, Fire Marshal T. Shields, 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 10:48 a.m. Mayor Keeley opened Oral Communications for members of the public who wished to speak regarding items not listed on the City Council agenda.
Unidentified person spoke regarding a police officer on a motorcycle who rolled through a stop sign.
At 10:52 a.m. Mayor Keeley closed Oral Communications.
May 28, 2024 CITY COUNCIL MINUTES 6847
Presentations
4. 2023 Commission for the Prevention of Violence Against Women and Santa Cruz Police Department Joint Annual Report
Danielle Long, Chair of the Commission for the Prevention of Violence Against Women (CPVAW), and Vice Chair Karen Madura spoke and responded to Council questions.
Chief of Police B. Escalante spoke.
5. Beach Safety Week
This item was not heard.
6. Outstanding Volunteer Recognition
Karen Delaney, Executive Director of the Santa Cruz Volunteer Center, and Mayor Keeley spoke. Councilmembers recognized the volunteers.
Presiding Officer's Announcements
Statements of Disqualification – Councilmember Brunner announced she is recusing herself from items 12 and 13 as it relates to her employment. Councilmember Watkins announced she is recusing herself from item 9.1 as it relates to her work as a Board Member for The United Way.
Additions and Deletions – City Clerk Administrator B. Bush announced that item 15 was continued to the meeting of June 11, 2024 and would not be discussed.
City Attorney Report on Closed Session – See pages 6844—6845 for the report.
Council Meeting Calendar
7. The City Council reviewed and did not revise the meeting calendar attached to the agenda.
May 28, 2024 CITY COUNCIL MINUTES 6848
Consent Agenda
City Clerk B. Bush spoke regarding item 12, informing Council the resolution has been amended as follows removing the line, “In particular, the proceeds of the assessment are used to supplement funding for the Downtown Ranger Program.” From:
2. The City Council hereby declares and finds that the proposed assessment is based upon a proportionate degree of special benefit derived by each owner and tenant of business real property in the Cooperative Retail Management District. In particular, the proceeds of the assessment are used to supplement funding for the Downtown Ranger Program.
To:
2. The City Council hereby declares and finds that the proposed assessment is based upon a proportionate degree of special benefit derived by each owner and tenant of business real property in the Cooperative Retail Management District.
Economic Development Manager R. Unitt spoke regarding item 12.
Deputy City Manager L. Murphy, City Manager M. Huffaker, and Councilmember Watkins responded to Council questions regarding item 9.
Councilmember Kalantari-Johnson made a comment on item 9.
Councilmember Watkins made a comment on item 9 and announced she is recusing herself from item 9.1 as it relates to her work as a Board Member for The United Way.
Councilmember Brown made a comment on items 9 and 16.
Councilmember Newsome made a comment on item 9.
Mayor Keeley opened the public comment period. The following people spoke:
Nora Caruso spoke regarding item 9.
Erin Hohengarten spoke regarding item 9.
Mayor Keeley closed the public comment period.
May 28, 2024 CITY COUNCIL MINUTES 6849
Consent Agenda (continued)
MOTION: Vice Mayor Golder moved, seconded by Councilmember Brown, to approve the remaining amended Consent Agenda.
ACTION: The motion carried with the following vote.
AYES: Councilmembers Newsome, Brown, Watkins (with the exception of item 9.1), Brunner (with the exception of items 12 and 13), Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.
NOES: None.
ABSENT: None.
DISQUALIFIED: Councilmember Watkins (item 9.1), Councilmember Brunner (items 12 and 13).
8. Minutes of the May 14, 2024 City Council Meeting (CC) Motion carried to approve as submitted.
9. Children’s Fund Advisory Committee Funding Recommendations for Use of Funding from FY 2020 through FY 2024
Motion carried to:
1) Approve the Children’s Fund Oversight Ad Hoc Subcommittee funding recommendation for the allocation of the FY 2020, FY 2022, FY 2023 and FY 2024 funds in the amount of $741,409; and
2) Allocate $10,000 from the Children’s Fund for community outreach.
10. METRO Transit Center Interim Operations Plan (h512307) – Notice of Completion (EDH)
Motion carried to accept the work of Downtown Santa Cruz Developer LLC (Hayward, CA) as completed per the plans and specifications and authorize the filing of the Notice of Completion for the Santa Cruz Metropolitan Transit District (METRO) Transit Center Interim Operations Plan.
May 28, 2024 CITY COUNCIL MINUTES 6850
Consent Agenda (continued)
11. First Amendment to the Lease Agreement with Bonnie’s Gifts (EDH) Motion carried to authorize the City Manager to execute the First Amendment to the Lease Agreement with Bonnie’s Gifts, extending the term for five (5) years with one five (5) year extension option and other minor modifications.
12. Cooperative Retail Management Business Real Property Improvement District Assessments for FY 2025 (EDH)
Motion carried to:
Approve the FY 2024 Annual Report and FY 2025 Plan prepared by the Downtown Management Corporation; and
Adopt Resolution No. NS-30,334 as a Resolution of Intention to levy a Cooperative Retail Management Business Real Property Improvement District Assessment for FY 2025 and schedule a public hearing for June 11, 2024 on the levy of the assessments for FY 2025.
13. Downtown Association: Parking and Business Improvement Area Assessments for FY 2025 (EDH)
Motion carried to:
Approve the annual report and work plan prepared by the Downtown Association for FY 2025; and
Adopt Resolution No. NS-30,335 as a Resolution of Intention to levy a Downtown Association Parking and Business Improvement Assessment for FY 2025 and schedule a public hearing for June 11, 2024 on the levy of the assessments for FY 2025.
May 28, 2024 CITY COUNCIL MINUTES 6851
Consent Agenda (continued)
14. Award Contract for Sergeant Derby Park Playground - Environmental Clearance: Exempt - Section 15301, Existing Facilities; Section 15302, Replacement or Reconstruction; Section 15303, New Construction or Conversion of New Structures; and Section 15304, Minor Alterations of Land (PR)
Motion carried to find that the project is exempt under CEQA, award a contract for the purchase of Sergeant Derby Park Playground Equipment to Landscape Structures, Inc. (Delano, MN) in the amount of $139,254.38, and authorize the City Manager to execute a cooperative purchasing agreement in a form approved by the City Attorney.
15. 2024 Pavement Rehabilitation Project (c400809) – Authorization to Advertise and Award (PW)
This item has been continued to the meeting of June 11, 2024 and was not discussed.
16. Award Contract for Construction Management Services for the Wastewater Treatment Facility Headworks Rehabilitation Project (PW) Motion carried to award a contract to Kennedy/Jenks Consultants, Inc. (Santa Clara, CA) for Construction Management Services for the Wastewater Treatment Facility Headworks Rehabilitation Project in the amount of $1,653,104 and reject all other proposals. The City Manager is hereby authorized and directed to execute an agreement in a form approved by the City Attorney. The City Manager is authorized to execute contract amendments within the approved project budget.
17. Outside Repair Services to Citywide Assets – Budget Adjustment (PW) Resolution No. NS-30,336 was adopted to amend the FY 2024 budget to appropriate funds in the amount for $400,000 for outside repair services for Citywide assets.
May 28, 2024 CITY COUNCIL MINUTES 6852
Consent Agenda (continued)
18. Adjustment of the City of Santa Cruz Water Department Miscellaneous Fees (WT)
Resolution No. NS-30,337 was adopted adjusting the City of Santa Cruz Water Department’s miscellaneous fees for services due to labor cost increases and rescinding Resolution No. NS-30,181.
19. 2024 Well Rehabilitation Project – Approval of Plans and Specifications, California Environmental Quality Act Exemption, and Authorization to Advertise for Bids and Award of Contract (WT)
Motion carried to:
Approve the plans and specifications for the 2024 Well Rehabilitation Project (c702501) and authorize staff to advertise for bids. The City Manager is hereby authorized and directed to execute the contract as authorized by Resolution No. NS-27,563; and authorize the Water Director to execute change orders within the approved project budget; and Find the 2024 Well Rehabilitation Project exempt under the California Environmental Quality Act (CEQA), allowing staff to file a Notice of Exemption.
20. U4 Tank Replacement Project – Award of Professional Engineering Services During Construction to Mesiti-Miller Engineering Inc. (WT) Motion carried authorizing the City Manager to execute an agreement in a form to be approved by the City Attorney with Mesiti-Miller Engineering Inc. (Santa Cruz, CA) for Professional Engineering Services during Construction for the U4 Tank Replacement Project in the amount of $432,075 and to authorize the Water Director to execute future contract amendments within the approved project budget.
May 28, 2024 CITY COUNCIL MINUTES 6853
Consent Agenda (continued)
21. Purchase of Real Property Necessary for Brackney Landslide Area Pipeline Risk Reduction Project: Assessor’s Parcel Number 072-144-30, Owned by Karlheinz Schaaf Trust (WT)
Resolution No. NS-30,338 was adopted authorizing and directing the City Manager or his designee to execute a Purchase Sale Agreement between the City of Santa Cruz and Karlheinz Schaaf Trust for the easements located in Ben Lomond, CA near Highway 9 between Glen Arbor Road and Brackney Road for a permanent easement and a temporary easement on APN 072-144-30 for the Brackney Landslide Area Pipeline Risk Reduction Project.
22. Purchase of Real Property Necessary for the Regional Drought Resiliency Project – Intertie 1 (c702205): Multiple Properties, Assessor’s Parcel Numbers 067-202-66 owned by the Yates Family Trust and 021-141-20 owned by the Scotts Valley Fire District and Approval of Plans and Specifications and Authorization to Advertise for Bids and Award Contract (WT) Motion carried to:
Adopt Resolution No. NS-30,339 authorizing and directing the City Manager or his designee to execute a Purchase Sale Agreement, in form approved by the City Attorney, between the City of Santa Cruz and Nichole and Craig Yates for permanent and temporary easements on APN 067-202-66 located in Santa Cruz, CA near Sims Road and Firehouse Lane for the Regional Drought Resiliency – Intertie Project;
Adopt Resolution No. NS-30,340 authorizing and directing the City Manager or his designee to execute a Purchase Sale Agreement, in form approved by the City Attorney, between the City of Santa Cruz and Scotts Valley Fire District (SVFD) for a permanent easement on APN 021-141-20 located in Scotts Valley, CA near La Madrona Drive and Altenitas Road for the Regional Drought Resiliency – Intertie Project; and
Approve the plans and specifications for the Regional Drought Resiliency Project – Intertie 1(c702205) and authorize staff to advertise for bids. The City Manager, or designee, is hereby authorized and directed to execute the contract as authorized by Resolution No. NS-27,563; and authorize the Water Director to execute change orders for the Regional Drought Resiliency Project – Intertie 1 (c702205) for amounts that are within the approved project budget.
End Consent Agenda
May 28, 2024 CITY COUNCIL MINUTES 6854
General Business
23. Report on Council Compensation and Staffing Study (CM) Assistant City Manager L. Schmidt introduced the item.
Jan Perkins, Vice President of Raftelis, gave a presentation and responded to Council questions.
Mayor Keeley opened the public comment period. The following person spoke.
Unidentified person
Mayor Keeley closed the public comment period.
MOTION: Vice Mayor Golder moved, seconded by Councilmember Watkins, to receive and approve a report regarding Council compensation and staffing in comparable cities to Santa Cruz.
FRIENDLY AMENDMENT: Mayor Keeley requested to add direction for the Mayor to work with the City Manager on further consideration of salary and staffing needs for Councilmembers and the Mayor and return with a report in October. Vice Mayor Golder and Councilmember Watkins accepted.
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 12:11 p.m. and returned at 12:44 p.m.
May 28, 2024 CITY COUNCIL MINUTES 6855
Call to Order – Mayor Keeley called the meeting to order at 12:44 p.m. in Council Chambers.
Roll Call
Present: Councilmembers Newsome, Brown, Watkins, Brunner, KalantariJohnson; Vice Mayor Golder; Mayor Keeley.
Absent: None.
General Business
24. FY 2025 Proposed Budget
City Manager M. Huffaker and Director of Finance E. Cabell gave a presentation and responded to Council questions.
Director of Planning and Community Development L. Butler, Director of Parks and Recreation T. Elliot, Chief of Police B. Escalante, Director of Public Works N. Nguyen, Acting Parks Superintendent M. Godsy, Director of Economic Development and Housing B. Lipscomb, Director of Information Technology K.
Morgan, Principal Management Analyst L. Bass, Chief of Fire R. Oatey, Assistant Director of Public Works/City Engineer K. Crossley, Chief People Officer S. De Leon, Assistant City Manager L. Schmidt, and Principal Management Analyst V.
Pearson, responded to Council questions.
Mayor Keeley opened the public comment period. The following people spoke.
Barbara Meister
At this time, Mayor Keeley paused this item to hear Item #25.
May 28, 2024 CITY COUNCIL MINUTES 6856
General Business (continued)
24. FY 2025 Proposed Budget (continued)
Public comment (continued)
Unidentified person
Mayor Keeley closed the public comment period.
MOTION: Councilmember Brown moved, seconded by Vice Mayor Golder, to conduct the Fiscal Year (FY) 2025 Budget Hearings, receive information from staff for the City’s requested budget across all departments and the Capital Investment Program, and prior to the FY 2025 budget adoption to:
Provide compensation study information.
Look at positions that are vacant and hard to fill.
Provide details of the Impact Fee Study, including exploring if projects can be included with impact fees.
Outline the cost of the Sting Operation in the Goals and Accomplishments of the Police Department’s budget.
Add to the Goals for the Fire Department a plan for apparatus replacement. Provide a plan to revise the Pogonip Master Plan after demolition of the clubhouse.
Add to Parks and Recreation Goals to collaborate with local sponsors to try and put on an organized 4th of July event for the summer of 2025. Add to Planning and Community Development Goals to improve community engagement for housing projects.
Determine a permanent location for the Children’s Youth Bill of Rights and Youth Liaison.
Outline the building permit process.
Consider a $25,000 increase with regard to tenant services. Determine how to incorporate the enterprise fund balances.
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 3:44 p.m. and returned at 4:04 p.m. to hear item #6.
May 28, 2024 CITY COUNCIL MINUTES 6857
General Business (continued)
25. Independent Police Auditor Report (CM)
City Manager M. Huffaker introduced the item.
Michael Gennnaco, Theresa Magula, and Samara Marion, OIR Group, gave a presentation and responded to Council questions.
Chief of Police B. Escalante 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 receive the annual report from the City’s Independent Police Auditor, OIR Group.
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.
At this time, Council returned to item #24.
Recess - The City Council recessed at 4:23 p.m. to the 5:30 p.m. session.
May 28, 2024 CITY COUNCIL MINUTES 6858
Call to Order – Mayor Keeley called the meeting to order at 5:36 p.m. in Council Chambers.
Roll Call
Present: Councilmembers Newsome, Brown, Watkins, Brunner, KalantariJohnson; Vice Mayor Golder; Mayor Keeley.
Absent: None.
Public Hearing
26. 1130/1132 Mission Street: CP23-0103 (APN 006-203-24, -25) Appeal of the Planning Commission Approval of the Development Proposal at 1130/1132 Mission Street Involving Nonresidential Demolition Authorization Permit to Demolish Two Commercial Buildings, Boundary Adjustment to Combine Two Parcels, and a Design Permit, Special Use Permit, Watercourse Development Permit, and Heritage Tree Removal Permit to Construct a Five-Story Mixed-Use Building Consisting of 2,627 Square Feet of Ground Floor Commercial Space and 48 Single Room Occupancy (SRO) Residential Units Above. The Project Also Includes a Request for Density Bonus Including Waivers to Exceed Building Height, Setbacks, and Floor Area Ratio (FAR), as well as Proposes to Utilize AB2097 to Reduce On-Site Parking. The Parcels Are Both Located in the CC (Community Commercial)/MU-M (Mixed-Use Medium Density) Zone District and the Mission Street Overlay Zone. Environmental Determination: Categorical Exemption 15332, In-Fill Development Projects. Owner: Douglas Wallace (PL) Director of Planning and Community Development L. Butler introduced the item and responded to Council questions.
Senior Planner R. Bane gave a presentation and responded to Council questions.
Appellants Ian Guy, Natasha Guy, and Veronica Elsea gave a presentation.
Appellants Laura Livingston, James Mueller, and Vasiliki Vassil gave a presentation.
Applicant Jamilah Cannon, Founding Partner and Principal Architect with Workbench, and property owner Doug Wallace gave a presentation.
Transportation Manager M. Starkey responded to Council questions.
Fire Marshal T. Shields responded to Council questions.
May 28, 2024 CITY COUNCIL MINUTES 6859
Public Hearing (continued)
26. 1130/1132 Mission Street (PL) (continued)
Mayor Keeley opened the public comment period. The following people spoke.
Brian Pierson
Bradley Snyder
Kurt Hurley
Unidentified person
Nicole Della Santina
Kenny Ines
Garrett
Elizabeth Monderneese
Kevin Heuer
Eva Brunner
Gavin Roth
Unidentified person
Héctor Marín
Unidentified person
Lola Quiroga
Alex Santiago
Nicolas Robles
Theo Kell
Janine Roeth
Ryan Meckel
Donna Haraway
Mason
Craig Schindler
Dizzy Findlay
Anita Joseph
Greg
Bodie Shargel
Don Radcliffe
Craig Siemes
Bruce Thomas
Andrew Robinson
Pamela San Miguel
Unidentified person
Unidentified person
Rachel Moriconi
Bennett Williamson
Mayor Keeley closed the public comment period.
May 28, 2024 CITY COUNCIL MINUTES 6860
Public Hearing (continued)
26. 1130/1132 Mission Street (PL) (continued)
Appellants Ian and Natasha Guy provided a rebuttal.
Appellants Laura Livingston and James Mueller spoke.
MOTION: Councilmember Newsome moved, seconded by Vice Mayor Golder, to adopt Resolution No. NS-30,341 denying the appeals, and approving a 48-unit project and the permits needed for that project and grant the requested waivers for height, setbacks and FAR but only to the extent necessary to facilitate construction of a 48-unit project that does not include the 11 proposed storage units on the west side of the project.
FRIENDLY AMENDMENT: Councilmember Kalantari-Johnson requested to amend the Conditions of Approval with the following:
Car ownership
Amend condition 57(c) to include the following:
The owner’s intent to prioritize tenancy to households that do not own a car, and inclusion of a provision in all lease agreements requiring tenants to acknowledge (and initial their acknowledgment) that surrounding neighborhoods include permit parking zones and that tenants in the project do not qualify for parking permits. Additional Changes to the Project
If there are major modifications to the project, it must be brought back to the Planning Commission for approval.
Councilmember Newsome and Vice Mayor Golder accepted.
ACTION: The motion carried unanimously with the following vote.
AYES: Councilmembers Newsome, Brown, Watkins, Brunner,
Kalantari-Johnson; Vice Mayor Golder; Mayor Keeley.
NOES: None.
ABSENT: None.
DISQUALIFIED: None.
Adjournment – Vice Mayor Golder moved, seconded by Councilmember Watkins, to adjourn. By consensus City Council adjourned at 9:09 p.m.
RESPECTFULLY SUBMITTED: ss/Julia Wood, Deputy City Clerk Administrator, ATTEST: ss/Bonnie Bush, City Clerk Administrator, APPROVED: ss/Fred Keeley, Mayor.