Santa Cruz City Council
June 25, 2024

SCOPE OF WORK
Service Order 10: Program Activities (FY 2025)
The City of Santa Cruz Water Department (City) has taken a program management approach to implementing its Capital Improvement Program (Program). It has contracted with HDR Engineering, Inc. (HDR), under a Master Services Agreement (MSA), to provide Program management services.

This service order (SO) falls under the MSA and covers ongoing Program activities and Program deliverables that will occur in fiscal year 2025 (FY25) (July 1, 2024–June 30, 2025). Unless specifically noted, it is assumed that the scope and fee refer to work planned for completion in FY25.

As with all service orders, this service order follows the structure of the MSA in terms of major tasks:
• Task 1: Program Mobilization (complete—not used)
• Task 2: Design and Planning Management
• Task 3: Program Administration
• Task 4: Planning and Engineering
• Task 5: Construction Management
• Task 6: Program Support
The tasks of the MSA were created to allow the Program to transition from the initial stages of defining the Program projects, structure, and procedures, through the planning and design of capital projects and department processes and protocols, and finally to project construction and startup of almost two dozen capital projects. Each service order uses tasks from the MSA as appropriate with the expectation that the planning and administrative tasks will be used less over time with design and construction tasks being used more in the future.

Task 1: Program Mobilization (not used)
Task 1 will no longer be used. Program mobilization was completed in June 2018 as part of SO 1.

Task 2: Design and Planning Management; Project
Staff Augmentation
Task 2 covers coordination and management of planning and design activities. As an integrated team, HDR and staff work with the project teams to continuously improve, adapt, and consistently apply the established project management tools to capital projects. This includes the planning and design activities of outside consultants, as well as designs prepared by City staff. For the purposes of estimating the labor requirements for this task, HDR assumes that it will provide or support design and planning management services as indicated on the design and planning management project activity matrix shown in Table 1.

This task also covers staff augmentation to support project management throughout all project phases.

Exhibit A

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Table 1. Design and Planning Management Key Activities by Project Task and Staff Augmentation No. Project Name
Duration in
FY25
(Months) PE/PM Augmentation
Activity A
Delivery Methods
Support
Activity B
Select Final Design
Consultants
Activity C
Monitor Project
Progress and Changes
(all project phases)
Activity D
Review Plans and
Specs (#)
Activity D
Review Planning
Reports, Memos (#)
Activity E
Facilitate Bidding
Process
Activity F
Cost Est.

Support

2.2.1 Newell Creek Pipeline Felton–
Graham Hill 12
PM at 0.30 FTE
(2) EITs at 0.4 FTE total
(2) Senior Techs at 0.04 FTE on average each


2.2.3 Brackney Landslide Area Pipeline
Risk Reduction 12
PM at 0.4 FTE
EIT at 0.5 FTE
(3) Senior Techs at 0.02 FTE each


2.4 Intertie 1: Santa Cruz–Scotts
Valley 12
PM at 0.3 FTE
EIT at 0.5 FTE
(2) Senior Techs at 0.04 FTE on average
 

3.1 Water Supply Augmentation
12 Tech Advisor (Shaw) at 0.15 FTE
PE at 0.8 FTE
EIT at 0.33 FTE
EE at 0.1 FTE
(1) Tech Reviewers at 0.06 FTE
  (60%, 90%)  (2)  

4.3 GHWTP Concrete Tanks
12 PM at 0.45 FTE
EIT at 0.1FTE
O&M Liaison at 0.6 FTE
(2) Electrical Reviewer at 0.01 FTE each


4.4 GHWTP Facility Improvement
Plan
12 PM at 0.5 FTE
Senior PE at 0.4 FTE
(2) EITs at 0.5 FTE total
DB Advisor at 0.1 FTE
Ops Liaison at 0.23 FTE
Senior Eng. Advisor at 0.17 FTE
Electrical Lead at 0.2 FTE
Electrical EIT at 0.05 FTE
Senior Structural at 0.025 FTE on average
Senior Architectural at 0.025 FTE on average
Senior Civil at 0.025 FTE on average
     (GMP negotiations) 

4.7 Beltz 12 Well Ammonia
12 PM at 0.1 FTE
Tech Advisor at 0.025 FTE on average
EIT at 0.025 FTE on average


4.8 Beltz Water Treatment Plant
(WTP) Upgrades 12
PM at 0.1 FTE
Sr. PE at 0.075 FTE on average
EIT at 0.13 FTE    2 (30%, 60%)  (GMP negotiations)  NCIP.912 Branciforte Creek Restoration 5 PM: 0.1 FTE on average X X X X

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Design and planning management teams may include a package manager, project manager(s) (PM), project engineer(s), technical advisors, operations and maintenance (O&M) lead, O&M liaison, and environmental lead (EL), and may be composed of either City or HDR staff. Construction management (CM) support is described in Task 5.

The package manager’s role includes, but is not limited to:
• Oversight of Project Managers for projects within their package. • Coordination and information transfer across projects within the package, as well as with other packages. Identification and facilitation of resolution on overlaps and interfaces between adjacent projects.

The Project Manager (PM’s) role includes, but is not limited to:
• Coordination and implementation of activities A through H, as applicable to the project type and phase.
• Leadership of project reporting efforts to Program controls and department leadership.

The project engineer’s role is to support the PM in project activities. Typical tasks may include performing technical analyses, responding to data requests from the design consultant, coordinating and scheduling meetings, and maintaining the project’s document management via SharePoint.

The O&M lead coordinates the necessary and appropriate level of input for the operations staff on a project. O&M lead roles may include meeting participation, review of deliverables, and coordination with site visits or on-site construction activities.

The EL coordinates the environmental planning and permitting process for a project. This role is scoped in Subtask 6.1.

Task 2 consists of the following general and project-specific subtasks:
• Task 2: 0.0 General Planning and Design Administration • Task 2: 2.2.1 Newell Creek Pipeline Felton–Graham Hill • Task 2: 2.2.3 Brackney Landslide Area Pipeline Risk Reduction • Task 2: 2.4 Intertie 1: Santa Cruz–Scotts Valley
• Task 2: 3.1 Water Supply Augmentation
• Task 2: 4.3 GHWTP Concrete Tanks Replacement
• Task 2: 4.4 GHWTP Facility Improvement
• Task 2: 4.7 Beltz WTP 12 Ammonia Removal
• Task 2: 4.8 Beltz WTP Upgrades
• Task 2: B40 Branciforte Creek Restoration
Each project subtask may include the following key activities. The number of projects and expected durations are noted accordingly.
• Activity A: support collaborative delivery method implementation (one project; 12-month duration)
• Activity B: select final design consultants (one project expected during FY25) • Activity C: monitor project progress and changes (12 projects, up to 12-month duration) [note construction and environmental phases of projects, as applicable, are supported and tracked under Task 5 and Subtask 6.1 support
• Activity D: review reports, plans, and specifications (five design submittals and four planning deliverables; 12-month duration)

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• Activity E: facilitate bidding process (seven projects expected during FY25) • Activity F: cost estimate support (up to three projects assumed during FY25) For the purposes of defining scope and labor requirements for this task, it is assumed that the projects managed are/will be delivered through a design-bid-build delivery method, except for Project 4.4 (GHWTP Facility Improvement project) and possibly Project 4.8 (Beltz WTP Upgrades) depending on development by the end of SO 9, which are delivered through a progressive designbuild delivery method.

Task 2: 0.0 General Program Planning and Design Support Activities This subtask covers planning- and design-phase support and management activities that are generally Program-wide in nature or are not affiliated with a specific project. When not provided by designated City staff, the scope of the planning lead and design management lead positions are included in this task. (During FY25, the planning lead (Isidro Rivera) and design management lead (Lewis Kay) roles, as described in the Introduction section of the Program Management Plan (PgMP), are provided by the City.)

1. HDR will provide general planning- and design-phase project support, which may include the activities described below:
• Development of (not yet scoped) technical evaluations, such as the assessment of current and future operations costs, project management scopes, and levels of effort (LOEs) for projects or tasks not previously defined in the FY work plan • Design review and input on projects, including project cost estimate (PCE) review support or schedule support for projects not previously identified or budgeted in Table 1, such as in preparation for deliverable or Stage Gate review
• Engagement in monthly Program PM or staff meetings and/or trainings, especially for PM support staff engaged in multiple Program projects
• Cross-project engagement and coordination (review meetings, follow-up actions, etc.). • Miscellaneous as-needed tasks on behalf of the City to support planning or design progression of projects (i.e., traffic study, department generator assessment, systems design criteria, decision-making support)
• Coordination with O&M liaison
• Other general, non-scoped support tasks, as requested by City staff and approved by City leadership
Up to 75 combined hours per month (approximately 51 percent full-time equivalent [FTE]) are assumed for these activities, completed by HDR staff not otherwise identified in this subtask.

1. O&M liaison support: Support the implementation of the Project Delivery Model for various planning, design, and construction projects focusing on the interaction and information transfer between Operations (or specifically Production Section), the Engineering Group, and the design engineers. One objective of the O&M liaison is to support the City’s O&M needs during these projects, while streamlining deliverable reviews. The O&M liaison will apply their familiarity with City O&M standards and preferences and prepare and execute deliverable review with O&M staff. Another objective of this role is to facilitate development of operations plans related to planned outages, construction-phase operational risk mitigation, and startup and commissioning.

Where project-specific support needs are defined, time for O&M liaison support is identified in Table 1. During FY25 it is assumed that the O&M liaison will focus primarily on the Concrete

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Tanks and Facility Improvement Project (FIP) projects. This subtask covers assistance with other projects, which is NOT USED for FY25.

2. Electrical, instrumentation, and controls (EI&C) support: At the request of the City, and in response to the City being understaffed in the area of EI&C, HDR will provide general support to the Production Section during FY25. This EI&C support role is in addition to the technical review of project deliverables that are budgeted within the project-specific tasks. The City’s needs may increase upon initiation of the design for the GHWTP FIP, at which time the need for an amendment will be reassessed. Support will be provided through monthly on-site visits, as required, and interim follow-on actions support. Activities for EI&C support may include:
• Support: GE Intellisys maintenance contract/arc flash for main electrical building • Utility pole relocation reviews
• Arc flash studies: three sites.
• Soquel Creek Intertie: orthophosphate feed system
• Support: site electrification at Rolling Woods and Carbonera sites • Support: Tait Wells MCC enclosure improvement
• Support: Felton Booster Pump Station assessment
Brief descriptions of these activities are described below:

GE Intellisys. The City continues to have problems with the automatic throwover system despite the recent site visits that GE performed. Among these include continued failure of the system to switch over from utility power to generator power during a power outage and the continued receipt of spurious alarms. Further, it has been discovered that the system’s operating system (OS) is out of date and must be updated. Lastly, coordination with the current Concrete Tanks project has led to delays with the maintenance of the ATS and switchgear maintenance, and arc flash update. The City has decided to leverage the continued use of the ABB switchgear and to move away from the automatic throwover system in favor of a more traditional Automatic Transfer Switch (ATS) system.

The scope will include continued on-site oversight of the ABB maintenance repair crew, coordination, research, documentation, and training of the City staff.

Total estimated coordination visits: 1
Support: 65 hours over the fiscal year
Utility Pole Relocation. During project-phase engagement with Pacific Gas and Electric (PG&E), it was recommended that the utility pole in front of GHWTP be moved across the street and that the utility power lines continue to be routed overhead (rather than moved underground) into the plant.

Per PG&E, this new approach should save the City considerable expense. PG&E is currently in the design phase. HDR will provide limited design review and coordination with PG&E and local utilities to relocate the utility pole in front of GHWTP, and provide reporting to the City.

Total estimated coordination visits: 1
Support: 50 hours over the fiscal year
Arc Flash Study (Three Sites [TBD]). The City is required to be in compliance with the National Electrical Code (NEC) arc flash requirements, which requires an arc flash study to be performed at least once every 5 years. Several of the City’s sites either have not had arc flash studies performed, or previous arc flash studies have expired. The City has identified the San Lorenzo/Coast Pump Station as a site that needs to have an arc flash study performed. Furthermore, the City would like arc flash studies to be performed/updated on two additional sites (to be determined later). As part of

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the arc flash study, HDR would also work with the City to provide updated electrical single-line diagrams, network diagrams, and process and instrumentation diagrams (P&IDs).

Total estimated coordination visits: 3
Support: 560 hours over the fiscal year
Arc flash studies will consist of the following work:

1. Project Management and Quality Assurance/Quality Control (QA/QC) This task will capture general task management efforts including the kickoff meeting, monthly invoicing, and progress reports.

2. QA/QC Program
HDR will institute and maintain a QA/QC program for the work performed on this project. Senior technical staff, not involved in the project, will perform internal QA/QC review upon completion of draft and final reports before they are submitted to the City.

3. Document Review, Site Field Investigations, Testing, and Modeling HDR will gather and review related existing documents, including single-line diagrams, record drawings, O&M manuals, and utility (PG&E) information. HDR will analyze these documents prior to performing the field data collection.

4. Field Surveys
HDR will perform a field survey of electrical equipment to determine the information necessary to perform the study. All electrical equipment where survey is to be done needs to be de-energized.

Detailed field survey work is described below.

An energized work permit for fieldwork where live parts are exposed will be provided by HDR.

HDR will visually inspect equipment to collect the necessary nameplate data used in the analysis. HDR will be responsible for visual verification of these data, including transformers, switchgear and breakers, relays, and direct-acting trip units. Data collection will include the stepdown transformer from the utility service, down through each motor control center (MCC) and 120/208-volt (V) or 120/240 V panel for the systems. Data collection for utility-owned equipment will be limited to data provided by the utility.

The City shall be responsible for opening all electrical equipment enclosures necessary to collect nameplate data.

Field data collection and system modeling will be based upon the system represented by the single-line drawings and other drawings provided by the City. HDR will make hand-markups of corrections and updates to the single-line drawings and documents to reflect actual field findings as necessary to complete the work. If no single-line diagrams exist, HDR will sketch a single-line diagram during the site visit.

Assumptions: HDR has budgeted 24 hours for the field surveys (includes travel time). The field survey will include equipment rated 4,160 V and less. Based on documentation provided, no 12- kilovolt (kV) equipment will need to be accessed.

HDR assumes that none of the equipment will be located in a confined-space area. If there are pieces of equipment in a confined space, the City will provide confined-space mitigation equipment, and will assist in gathering the necessary data, under HDR’s direction.

Electrical and Power Distribution System Modeling

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SKM Power Tools will be used to model the electrical system and calculate the short-circuit currents, breaker and fuse tripping times, and resulting arc flash energies.

SKM Power Tools data files to be delivered to the City upon study completion.

Short Circuit Analysis, Protection Coordination Study, and Arc Flash Hazard Analysis Short Circuit Analysis
HDR will perform a short-circuit and equipment duty analysis to determine maximum short-circuit currents at electrical equipment and verify that equipment is rated to safely handle short-circuit currents without creating hazardous conditions.

Protection Coordination Study
HDR will perform a protective device coordination study and analysis to determine the existing coordination of electrical equipment and overcurrent devices and provide recommended equipment settings for improvement. The protective device coordination study and analysis will help verify proper electrical system reliability and determine if arc flash hazard energy levels can be reduced.

Arc Flash Hazard Analysis
HDR will perform an arc flash hazard analysis in accordance with the 2018 Edition of Institute of Electrical and Electronics Engineers (IEEE) Standard 1584 to determine the hazard risk category associated with each piece of equipment as defined in the 2020 Edition of National Fire Protection Association (NFPA) 70E. Arc flash hazard assessments will be performed for locations and/or equipment where workers are exposed to risk. The arc flash analysis study will determine incident energies and hazard/risk categories for equipment.

HDR will provide recommendations or modifications to reduce incident energy.

The following items of electrical equipment, if in use at the facility, will be required to have a risk category assigned:
• Switchgear
• Switchboards
• MCC
• Panel boards
• Variable-frequency drives (VFDs) and control panels (separately mounted) • Transfer switches

1. Summary report
HDR will provide a detailed arc flash hazard analysis report for each circuit condition and arc location analyzed that includes the following information:
• Arcing fault magnitude
• Device clearing time
• Duration of arc
• Arc flash boundary
• Working distance
• Incident energy
• Personal protective equipment (PPE) requirements for each incident energy level

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• Recommendations for new equipment and/or system changes necessary to reduce the calculated arc flash energy level below
• Recommendations for arc flash hazard reduction
The report will include single-line diagram updates.

1. Review meeting
HDR will meet with City staff to discuss the draft report. This meeting will be attended by up to two HDR team members.

2. Arc flash warning labels and signage/breaker settings HDR will provide the required warning labels and other signage as determined by the study and perform the labeling. HDR will provide the final breaker settings, as determined by the report, that will both provide breaker coordination and reduce the arc flash incident energies.

Soquel Creek Intertie: Orthophosphate Feed System. In light of the work being performed on the Beltz 12 and ASR project, the City has plans to install an orthophosphate feed system at the Soquel Creek Intertie. HDR will provide EI&C support for this effort, including, but not limited to, design reviews, site visits, and existing documentation review and updates.

Total estimated coordination visits: 1
Support: 60 hours over the fiscal year
Site Electrification at Rolling Woods and Carbonera. The City is in the process of bringing power into the Rolling Woods and Carbonera sites. The electrical work is being performed in-house. HDR will provide design review, support, and inspection to make sure that the work performed conforms to the requirements of the NEC.

Total estimated coordination visits: 2
Support: 45 hours over the fiscal year
Subtask Activities
This section describes each of the key activities that may occur during FY25 for a specific project, as indicated by Table 1. The LOE is dependent upon HDR’s role on each project.

Activity A: Support Best Value Delivery Methods Implementation HDR will support the City’s evaluation of project delivery methods for all projects noted in in Table 1.

If a collaborative delivery method is selected, HDR will assist the City in procuring the collaborative delivery team. Support activities include the following:

1. Project Delivery Evaluations - evaluation of delivery methods when opportunities or needs arise
Collaborative Delivery Procurement - when a collaborative delivery method is selected, supporting the City with collaborative delivery procurement processes and documents from market soundings through RFQ/RFP development and ultimate selection and on-boarding of the collaborative delivery team. Deliverables:

1. Project Delivery Analysis memo(s)

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2. Procurement documents (as needed)
a. Market Sounding documents
b. RFQ and/or RFP documents
c. Evaluation materials
Assumptions:

1. No more than two projects that require Project Delivery Analysis during FY25

2. Up to one project that requires support in developing Procurement Documents of collaborative delivery
Activity B: Select Final Design (or other) Consultants
In alignment with City procurement policies and procedures, the Program’s procurement guidelines, and together with the integrated team involved with the specific project, HDR will assist the City in selecting design (or other) consultant(s) by leading or assisting with the following, as appropriate per project:

1. Conduct a meeting with City staff to confirm the recommended process for selecting the final design consultants.

2. Prepare draft Request(s) for Proposals (RFP[s]) for retaining final design consultants for each solicitation and submit to the City for its review and approval.

3. Conduct pre-proposal meetings for each proposed final design contract. Record attendance and questions, and issue answers to questions and modifications to the selection process if appropriate in addendum format.

4. Receive consultant proposals in accordance with the City procedures. Review the proposals in accordance with the approved selection process. Meet with City staff to provide input and receive comments on the proposals. Summarize in writing the City’s recommendations on what firms should be selected for interview. Review of up to six proposals is assumed per the RFP.

5. Conduct interviews, as appropriate, with up to three shortlisted firms in accordance with the authorized selection process. Prepare written comments on the firm interviews to support the City’s decision-making process on the firm to be awarded the design consultant contract.

6. Using the City-designated contract terms and conditions, negotiate the scope, LOE, and schedule for each final design contract with the selected firm. Prepare cost analysis metrics for evaluation of LOEs associated with various professional services contracts. Prepare independent cost-of-services estimates, if needed. Prepare backup materials for City Council action and other procurement requirements and document selection processes. Coordinate discussions with the City and consultant’s legal counsel, if required. Prepare final contract for signature by the City and the final design consultant.

Deliverables: None
Where HDR is PM on projects:

1. City meeting agenda and minutes to confirm final design consultant lists, selection process, schedule, and draft RFP development

2. Draft and final design RFP(s)

3. Written recommendation for selection of final design consultant

4. City Council agenda package (attachments to staff reports) for final design contracts Assumptions:

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1. Budget for independent cost-of-services estimate(s) is not included in this fee. If determined to be needed, this will be added via contract change amendment.

2. HDR will support the City in preparation of the City Council agenda package for submitting each final design contract to the City Council for its review and approval. It is assumed that HDR will not attend City Council meetings in FY25.

3. LOE to support this activity is included in the staff augmentation FTE in Table 1.

Activity C: Manage Project Progress and Changes
HDR, where augmenting City staff as PM, will monitor the progress of the planning, design, and construction phases, and also manage the process for making changes to those scoped efforts.

Where augmenting City staff as assistant PM or project engineer, HDR will support the PM. Where HDR is not augmenting staff at the project level, general support and oversight will be provided via the Design and Planning Management Task 2.0. Project management tasks include:

1. As part of the project kickoff meeting with the consultants, the PM will provide information (as applicable) regarding the Program or design guidelines, standard details, design review process, and QA/QC procedures.

2. Attend progress meetings led by the consultants on a biweekly basis. These meetings will cover items such as progress to date, major issues, contract compliance, deliverables, QA/QC, and impacted agencies and utilities.

3. Lead planning and design coordination and deliverable review meetings and workshops.

4. Address questions and issues from the planning and design consultants. Interface with City staff and receive feedback when necessary. Issues and their status will be discussed at the biweekly team meeting.

5. Implement project-specific change management, including documentation of change log items with associated analysis to support approvals for proposed changes during a project that impact cost or schedule.

6. Work with package manager, as applicable, to identify and facilitate resolution on overlaps and interfaces between adjacent projects.

7. Review the monthly project progress report and invoice submitted by the final design consultant.

Provide invoice recommendations to City staff for their final action.

8. Provide the status of project activities, deliverables, and cost accruals to Program controls and Program design and planning manager for reporting.

9. Participate in meetings with regulatory agencies, as needed, regarding planning or design activities and document reviews and approvals.

10. Manage preparation of permit submittal packages by final designers to meet regulatory requirements. Monitor permit submittals and coordinate modifications, as required and requested by the permit lead. Coordinate California Environmental Quality Act (CEQA) process, as applicable.

11. Manage survey, geotechnical, and right-of-way (ROW) efforts.

12. Prepare or direct the modification of Division 0 and Division 1 specification templates.

13. Lead the implementation of CM strategy and guidelines on the project, including constructibility review during design.

14. Procure and manage technical advisors for project, as applicable.

15. Identify, together with City staff, which bid packages require contractor prequalification.

16. Develop, administer, and maintain contractor prequalification criteria and solicitation documents.

Manage and coordinate the prequalification process.

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17. Manage (or support City management of) construction-phase services, including CM (see Task 5) and engineering services during construction.

Deliverables:

1. Meeting agendas, presentations, and minutes from project coordination and review meetings

2. Change log entries, as required

3. Monthly project status reports

4. Permit applications (prepared by others)
Assumptions:

1. The labor hours in the budget table are based on HDR’s understanding of the LOE for the listed projects as per Table 1.

Activity D: Technical Review of Deliverables, Plans, and Specifications HDR will augment City staff to support review of planning studies, design submittals, and design and constructibility review of the final designs, including facility design elements, equipment vendor selection, configuration, and process control. In doing so, HDR will supplement the City’s technical resources and confirm that Program design guidelines and standards are integrated. Specifically, HDR will:

1. As needed and requested by the PM, conduct a review of the project’s plans and specifications at the 30, 60, 90, and 100 percent completion points. The detailed check of each design submittal will remain the design consultant’s responsibility and will be completed prior to providing the submittal to the Program team for review.

2. As needed and requested by the PM, conduct a review and comment on the cost estimate and schedule provided in the 30, 60, 90, and 100 percent submittals.

3. Provide a constructibility review, likely at the 60 percent submittal.

4. Where HDR is PM, document and track the action taken by the designer on items noted during each review.

5. Operability reviews will be provided by the City’s O&M staff and HDR O&M Liaison. HDR, where PM, will conduct workshops on 60 and 90 percent final design consultant submittals for City O&M staff to provide comments.

6. As PM, conduct a “plan in hand” field walk and create a checklist with the O&M lead at the 60 percent deliverable, to verify the adequacy and completeness of design documents.

7. As PM, work with the final designer to identify long-lead procurement items, and develop an approach to address those issues.

Deliverables:

1. Review comments at 30, 60, 90, and 100 percent final design completion, including constructability review at 60 percent

2. Agenda and minutes of the meetings for City O&M staff reviews at 60 and 90 percent final design consultant submittals

3. Spreadsheet to document and track design review comments and actions taken Assumptions:

1. Design reviews are assumed to include up to three HDR technical reviewers (i.e., electrical, mechanical, structural) to support City review on each project deliverable.

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Activity E: Facilitate Bidding Process
During the construction bidding process, the PM will perform the services below. HDR’s LOE associated with this scope applies to projects where HDR is the PM (to lead these activities) and to support these activities where HDR is providing support-staff augmentation.

1. Prepare for and participate in pre-bid or pre-proposal conferences in support of procurement.

2. Facilitate review of bids and formal recommendations of award.

3. Assist with the procurement of long-lead time and pre-purchased equipment and materials, as needed.

4. Coordinate the assembly of construction bid packages with designers and City staff.

5. Monitor the distribution of construction bid packages (plans and specifications) to prospective bidders.

6. Participate in pre-bid meetings and possible site visits for each of the construction packages.

7. Manage and facilitate pre-bid geotechnical condition demonstration activities.

8. Oversee the addenda development process. Up to two addenda are assumed per bid package.

9. Evaluate construction bids for completeness, develop bid tabulations, and consult with the final design engineers and City staff to recommend award of each contract.

10. Develop and maintain an overall comprehensive bid tab for the Program, including unit price information, lump sum, and other bid cost data items and reference to appropriate construction cost index.

11. Work with City staff to execute construction contracts and obtain performance bonds and insurance documents.

12. Coordinate with final designers and construction contractors to confirm that they obtain required construction permits prior to proceeding with construction.

Deliverables:

1. Agenda and minutes from pre-bid meetings

2. Contractor prequalification solicitation documents

3. Bid tabulations
Assumptions:

1. The projects that will undergo all or part of the bidding phase in FY25 include: Project 3.3.1: ASR Mid-County Existing Infrastructure (efforts included in Subtask 3.1), led by City PM with assistance from HDR, and potentially Project 4.8: Beltz Water Treatment Plant (WTP) Upgrades.

2. Projects 2-4.4 and 4.8 will require guaranteed maximum price (GMP) negotiation and procurement support activities for early works packages.

Activity F: Cost Estimating Support [Select Projects for FY25] HDR will provide construction cost estimating review services, as requested, during the project design phase. Review of the design engineer’s cost estimate is intended to provide validation and alignment with Program processes.

HDR will provide summary comments to the PM and, as requested by the PM, will meet with the design engineer to discuss and resolve the comments. The PM will provide process mechanical equipment and specialty subcontractor equipment quotes as discussed.

Assumptions:

1. Detailed takeoffs will not be performed.

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2. One meeting with the City (and designer, as desired) to review the estimate review comments (by phone).

3. A placeholder budget of up to 10 hours is allocated for each estimate review. Budget will be refined and confirmed upon selection of project and prior to initiating this task.

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Task 3: Program Administration
Task 3 covers ongoing implementation of the Program structures, policies, procedures, and systems that were developed initially during Program mobilization and have in many cases continued to evolve and improve. Over the course of the Program management services contract, the implementation of Program administration activities (including Program risk management, quality, project delivery, and schedule and budget tracking) described within this section will be completed in close association with the City’s Program leadership team. This task consists of the following subtasks, each over a 12-month duration:
• Subtask 3.1: General Program Administration
• Subtask 3.2: Risk Management
• Subtask 3.3: Document Management
• Subtask 3.4: Training and Workforce Development
• Subtask 3.5: Quality Assurance Implementation
• Subtask 3.6: Program Controls
• Subtask 3.6.1: Program Controls Management
• Subtask 3.6.2: Program Schedule
• Subtask 3.6.3: Program Cost / Estimating,
• Subtask 3.6.4: Program Change Management
• Subtask 3.7: Miscellaneous Support for Water Finance/Accounting Department • Subtask 3.8: Design Drawing Review Software
Subtask 3.1: General Program Administration
HDR will complete the following general Program administration tasks:

1. Update Program workflow policies and procedures, as determined needed by the integrated City/HDR Program team, and implement following submission to and approval by City.

Incorporate these updates in the PgMP.

2. Manage Program resources and make available technical, management, and support resources to meet the City’s goals and objectives. Implement staff approval policy and maintain approved staff matrix list and resume library. Revisit project and Program staffing assumptions and future needs on twice annual (or more often as needed) basis.

3. Attend Water Commission, City Council, and other meetings as requested. Support preparation for presentations given at these meetings, as requested by the Program Director.

4. Conduct biweekly Program review meetings with the Program Director and monthly progress meetings with Program Executive Team.

5. Work with the Program Director to maintain the overall Program management organization chart and related roles and responsibilities.

6. Prepare an Annual Work Plan to provide City staff with information needed for the City’s annual budgeting cycle and to support City Council review and approval of next year’s Program management service order.

7. Manage the Program management contract, including preparation of monthly invoices and associated invoice activity progress reports, maintain the Program management contract change log to track and document interim scope changes and subsequent contract amendments, review and update the HDR contract schedule, and develop annual work order including scope of work and associated budget.

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8. Implement the Program Safety, Health, and Environmental (SHE) guidelines by performing the following:
a. Summarize contractor safety reporting for the monthly Program report. b. Receive information from the City’s safety consultant for reporting. c. Train new Program team members on SHE guideline requirements. Communicate safety status to wider team through periodic SHE guideline training refreshers. d. Implement internal HDR safety policies.
e. Attend City water department safety meetings.

The key Program roles supported in this subtask are described below. The hours associated with the major tasks for each role are also shown.

1. Program manager: Overall leadership of the Program activities and Program leadership team, leads reporting to executive staff, leads the ongoing development and implementation of the PgMP (approximately 0.54 FTE).
a. Manage Program resources, including:
i. Leading annual service order kickoff
ii. Leading monthly PMs meeting
iii. Meeting regularly with HDR Program core leadership to assess and respond to resource needs
iv. Meeting monthly with wider HDR team and individually with local core HDR team v. Developing and managing hiring requisitions in response to Program needs vi. Coordination of technical expertise to support the Program vii. Coordination of resource needs and availability with Program Director and other City leadership
viii. Lead staff approval process
ix. Develop and maintain Program staff plan
x. Estimated 25 hours per month
b. Track project and Program progress and completion: 0.5–1.0 hour per project per month (10 hours per month)
c. Facilitate continued development and progression of the implementation of the overall risk analysis and management strategy (4 hours per month)
d. Support general communication about and preparation for, and participate in stage gate meetings: up to 3 hours for each stage gate meeting (4 hours per month on average) e. Review of Program costs, schedule, change management log, quality review reports, support development of monthly Program report (8 hours per month on average) f. Identify, coordinate, and schedule trainings (up to 2 hours per month) g. Review meetings with Program Director, Program Executive Team, and City’s Program management consultant, including associated action items (10 hours per month) h. Update Program management policies and procedures (4 hours per month) i. Manage Program management contract, including contract change log and amendments, quarterly internal Program reviews, Program management invoices and associated status reports (14 hours per month)

2. Assistant Program manager: Supports Program manager in execution of his/her role and supports Program PMs, technical staff, and administrative staff in accessing and using Program resources (approximately 0.53 FTE).

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a. Manage Program resources, including:
i. Assist development of Annual Work Plan
ii. Supporting annual service order kickoff
iii. Assist in planning and recording monthly PMs meeting iv. Meeting regularly with HDR Program core leadership to assess and respond to resource needs
v. Meeting monthly with wider HDR team
vi. Support staff approval process
vii. Facilitate HDR Program staff onboarding and provide ongoing support to in use of Program tools and policies
viii. Items i through vii are estimated 36 hours per month b. Track project and Program progress and completion: half hour per project per month (10 hours per month)
c. Identify, coordinate, and schedule trainings (up to 4 hours per month) d. Update Program management policies and procedures: 8 hours per month e. Manage Program management contract (28 hours per month) i. Review monthly contract invoices and monthly contract status reports ii. Support HDR task managers to track task costs, progress, and scope completion iii. Manage HDR contract change log

3. CM lead: Maintains CM strategy document; coordinates Program CM activities, supports City staff where City is construction manager and HDR staff where HDR is construction manager. CM lead scope and LOE is described in Task 5, Construction Management.

4. Program administrative coordinator: Provides Program administrative support. The hours associated with this task (General Program Administration) are estimated at 47 hours per month (0.32 FTE). Typical tasks include:
a. Support staff approval process and management of HDR staff matrix b. Support monthly HDR invoice and monthly status reporting c. Coordinate HDR and City staff calendars to schedule meetings, trainings, and workshops d. Contract management support, including subcontracts and purchase orders (POs) e. Coordination of internal Program quarterly reviews
f. General administration support
g. Prepare and support the development of the Program monthly report h. HDR internal documentation control and POs support (four SO amendments at 6 hours each amendment, and 10 HDR POs at 3 hours per PO)

5. Project controller/accountant: Provides financial and accounting management for HDR contract including developing monthly invoices, financial review of HDR contract budget and amendments, and assists in contract and task budget management (26 hours per month).

Deliverables:

1. Draft and final SO scope, fee, and Annual Work Plan

2. Monthly Program Progress Report

3. Monthly invoice(s), one per service order, including summary table, invoice activity status report, and earned-value report

4. Contract change log updates, contract amendments for new scope, or reallocation of existing scope, as applicable

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5. Staff approval requests, as applicable

6. Updates to working Program tracking tools, including staff planning spreadsheets, and Program improvement log

7. PgMP updates, as applicable
Assumptions:

1. Contractor safety plan submittals for construction projects during FY25 will be reviewed by the City’s third-party safety consultant.

2. Contractor safety data are submitted to the Program by the CM for each respective project for the Program’s reporting.

Subtask 3.2: Risk Management
HDR will administer and manage the Risk Management Plan (RMP), and support associated activities as follows:

1. Develop, maintain, and improve processes, tools, and templates, including updating the PgMP document as appropriate.

2. Review and manage the Program risk register (quarterly). Coordinate with risk item owners to support the development and implementation of mitigation activities.

3. Coordinate and facilitate the biannual risk review meetings for the purpose of communicating progress, challenges, and successful mitigations associated with the Program risk register (and establish new risks, as applicable).

4. Facilitate risk planning discussions, including assessment and use of management reserves.

Incorporate identified risks and mitigations into cost and schedule reporting.

5. Coordinate with the PMs to conduct a risk assessment workshop and perform qualitative and/or quantitative risk analysis with risk specialist for a TBD project before construction contract award.

6. Support PMs in their implementation of risk management at the project level, including progression of project risk register documentation, and associated mitigation activities.

7. Support the Program director on project and Program risk contingency management.

Deliverables:

1. Quarterly (or as-needed) Program risk register updates

2. Biannual risk review meeting materials, meeting minutes

3. Draft and final risk workshop report (one project and one Program-wide) Assumptions:

1. One quantitative risk workshop for the Program and one quantitative risk workshop for projects (GHWTP FIP Upgrades) will be performed in this SO 10, assuming up to 156 total hours with input from the risk specialist, senior economist, and risk workshop assistant

2. Up to three qualitative facilitated project risk workshops will be performed in this SO 10 Subtask 3.3: Document Management
HDR will implement the Document Management Plan, per the PgMP. Specific activities within this task and estimated combined hours for the document management team include:

1. Provide general management and oversight of the Document Management and SharePoint processes and support tasks (6 hours per month).

2. Provide ongoing document management support (30 hours per month).

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a. Monitoring placement of documents and use of proper naming conventions and folder structures.
b. Provide communication and ongoing training to support team members on accessing and using document storage.
c. Work with City staff to maintain alignment of P: drive and SharePoint document and folder structures.
d. Identify areas for improvement, develop options, and facilitate decision making regarding long-term storage and repository of project files.
e. Execute ad hoc support tasks and special projects as requested by leadership and team members. If not achievable within assumed budget, develop scope and LOE for approval in advance of initiating such work.
f. Maintain and support the Photo Management workflow.
g. Support Stage Gate preparation as requested.
h. Maintain project files for reference, retrieval, and storage in electronic format. Maintain hard copies for those documents that the City deems necessary, according to the PgMP; contractual-related or contract change documents are to be finalized in hard-copy format.

3. Provide basic SharePoint administration support (10 hours per month). a. Maintain and update user profile information
b. Provide ongoing training and support for team members c. Perform basic technical support, including tech support requests, management of site settings, editing of Program pages, photos, and schedules d. Create and manage SharePoint libraries and folder structures e. Act as liaison for team members and information technology (IT) support

4. Provide ongoing SharePoint maintenance, configuration, and technical support throughout the year for system functionality and end-user experience, including the following (20 hours per month):
a. Perform detailed technical support including troubleshooting and trainings, set up new projects, create workflows, respond to team member technical support requests. b. Perform system updates and resolve issues with Microsoft. c. Activate and deactivate user accounts. Manage and update individual groups, including access and permissions.
d. Provide ongoing necessary tasks during the year such as creating new lists, adding libraries and landing pages, and editing metadata.

5. Support continuous improvements, such as adding security groups, dashboards, workflows, closeout repository, metadata, and long-term storage decisions as feasible within the budget established for items 3–4 above. Where improvements would require exceeding the approved budget, a scope and LOE will be developed for approval by Program Director in advance of performing work (15 hours per month):

Deliverables:

1. Document management processes and tools updated, as appropriate

2. Updates to SharePoint processes and tools, as appropriate

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Subtask 3.4:Training/Workforce Development
Continue to support the City’s workforce development objectives and efforts by providing direct training on project management and Program management processes to City staff through day-today interactions with the Program management team, short monthly refresher trainings, 1-hour topical seminars, extended workshops, and ongoing refinement of project management tools.

Update the workforce development technical memorandum (TM) in the PgMP, as required, to reflect changes and input from the Program leadership team. Coordinate and plan for training topics with Program leadership.

Deliverables:

1. Presentation materials for all training sessions and seminars

2. Updates to the PgMP, as appropriate
Assumptions:

1. 10 monthly 10-minute “refresher” trainings during the PM monthly meeting at 3 hours each for preparation and presentation.

2. Six 1-hour-long trainings at 6 hours each for preparation and presentation. Assume half of these are performed by core Program staff and half are performed by others traveling to Santa Cruz.

3. One half-day training at 10 hours each for planning, execution, and trainer travel.

Subtask 3.5: Quality Management
HDR will administer and manage the Quality Management Plan, per the PgMP. The primary objective of the Quality Management Plan is to assist project teams in the compliance with Program and project standards. As such, the management of quality covers the four general categories listed below:
• Process quality: covers implementation of the processes and procedures established for the Program
• Project Quality Plan: covers preparation and implementation of a Project Quality Plan by each project team, primarily by the consultants preparing deliverables • Business delivery: covers how well each project is delivering to business metrics—cost, schedule, change, and risk management
• Technical delivery: covers the overall technical quality of the work being done, primarily associated with deliverables
HDR’s scope for this task includes:

1. Develop, maintain, and improve processes, tools, and templates, including updating the PgMP document, as appropriate.

2. On a monthly basis, perform a quality check at the Program and project levels, identifying areas of compliance as well as areas for improvement, and report the results in the Program quality report card and Program monthly report. Example areas include monthly project reporting, risk registers, and Program tools, such as project quality checklist and project quality plans.

Summarize in the monthly quality report card and Program overview table.

3. Quality management reviews are performed and reported once every 4 months via a report delivered to the Program Director. The report covers four general categories including (1) process quality, (2) Project Quality Plan, (3) business delivery, and (4) technical delivery.

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4. Review and evaluate key performance indicators (KPIs) for continuing development and refinement to support Program tracking. For FY25, it is assumed that monthly project overview KPIs for cost, schedule, and quality will be continued within the monthly Program report. No additional KPIs will be developed.

Deliverables:

1. Updates to the PgMP, and other processes and tools, as appropriate

2. Monthly quality reports, including project overview and quality report card

3. Triannual review reports
Subtask 3.6: Program Controls
This subtask includes services required to implement the Program Controls Plan, per the PgMP.

Subtask 3.6.1: Program General Management
The Program controls lead oversees Program administration activities, including risk, document management, quality, administration of the Program SharePoint site, and controls, including change management. The controls lead has scope in several Program administration subtasks. Scope and effort associated with Subtasks 3.2 through 3.5 and 3.7 are included in each respective task. The hours associated with this subtask (Program General Management) are estimated at 22 hours per month (0.15 FTE):

1. Participate in various Program meetings, including executive, leadership, and PM meetings, as well as other miscellaneous meetings and workshops (14 hours per month)

2. Support Program Director and Program manager as requested (6 hours per month)

3. Participate in and provide training for various Program processes and tools (2 hours per month, plus additional hours in Subtask 3.4, Training)
Subtask 3.6.2: Program Schedule
Program schedule will continue to be developed and maintained in P6 by the designated P6 scheduler. Schedules will be updated with PMs during and as follow-up to the recurring individual monthly project update meetings and will be posted monthly to the SharePoint site for review and use by the Program team.

1. General oversight and schedule support (12 hours per month).

2. Attending monthly PM update meetings, updating schedules, performing variance analysis and generating various reports (28 hours per month).

3. The following eight types of schedules are anticipated for posting monthly during FY25:
a. Level 1 single-line schedule
i. Consolidated high level, showing “key” work breakdown structure (WBS) phase durations b. Level 3 activity detail
i. Expanded to show all detailed activities; this is the lowest level schedule c. Level 3 60-day look-ahead
i. A layout showing detailed activities that have been finished in the previous 30 days, activities in progress, and activities highlighted starting within the next 60 days, and anticipated activities during the current fiscal year
d. Level 3 activity detail by PM

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i. Expanded to show all detailed activities, sorted by PM e. Level 3 City Council and Water Commission meetings
f. Level 3 z01 detail schedule
i. Detailed schedule of Program administrative activities g. Level 3 activity detail for procurement activities
h. Project implementation schedule
i. A layout showing specific activities across projects that impact priority projects In addition, at the request of Program team members, the P6 scheduler will support producing specific schedule reports (such as variance reports), filtered schedules, and custom layouts. HDR will perform schedule re-baselining per the PgMP, in conjunction with change management, and in coordination with the Program Director.

Deliverables:

1. Updated monthly schedules, as indicated above

2. Updated scheduling processes, tools as part of PgMP updates, as appropriate Assumptions:

1. This subtask assumes no hours for reviewing construction contractors’ schedules or construction progress reporting. Where needed, effort for construction schedule review is included in Task 5:

Construction Management.

Subtask 3.6.3: Program Cost/Estimating
HDR will perform estimating, cost collection, analysis, forecasting, and reporting of Program and project costs. Specific activities include:
• Update the PgMP documents, and associated processes and templates, as appropriate (estimated 2 hours per month).
• Prepare for and address action items from the monthly PM update meetings. Review and evaluate Program and project cost, schedule, risk, and change management status. Present for review and approval by the City as part of the Program monthly report (estimated 24 hours per month).
• Support PMs in the updates of their PCE. Review and update project budgets, forecasts, and perform variance analysis (8 hours per month).
• In coordination with the City Finance team, collect Program and project actual costs on a monthly basis. Update CASPER (the Program cost management system [CMS]) with Programlevel data, including Program administration, escalation, contingencies, management reserves, and time-phasing based on the current schedule (24 hours per month). Develop and distribute regular cost performance reports, including cost and cash flows, through a variety of tables, dashboards, graphs, and reports with appropriate levels of detail for various audiences. Also provide various ad hoc reports as requested (8 hours per month). • Maintain CASPER, the CMS, an Excel and database tool, which is the Program’s primary tool for managing costs (estimated 16 hours per month).
• Support Program Director on general cost- and schedule-related items, including the approach, development, monitoring, and use of Program and project contingencies, and management reserves (estimated 8 hours per month).

Deliverables:

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1. Monthly dashboards posted to SharePoint, a cost performance report (included in the Program monthly report), and various cost reports as requested

2. Updated cost and estimating processes, tools as part of PgMP updates, as appropriate Assumptions:

1. Katy Fitzgerald (City) will provide cost controls support at up to 12 hours per month.

Subtask 3.6.4: Program Change Management
Program controls will provide ongoing support to the change management process, according to the PgMP. The change management process facilitates the identification, tracking, and resolution of changes that impact project or Program cost or schedules (8 hours per month). Specific activities include:
• Maintain and improve processes, tools, and templates related to change management, including updating the PgMP document, as appropriate. Communicate updates to the Program team in a timely manner.
• Coordinate with PMs to efficiently prepare and submit appropriate documentation of proposed changes for recommendation and approval by Program leadership. • Support the administration and maintenance of the Program change log that resides on SharePoint.

Deliverables:

1. Updates to Section 2 (Change Management) of the PgMP, as appropriate Assumptions:

1. Katy Fitzgerald (City) will provide change support at up to 16 hours per month.

Subtask 3.7: Water Finance/Accounting Support to the Water Department As requested by the City, HDR will provide miscellaneous support in the areas of finance and accounting to assist the City in capital planning, annual budgeting, alternative funding, or similar tasks. This scope is intended to reflect work that is beyond the scope of Subtask 3.6, which may include, but is not limited to, the following:
• Additional reporting for Program capital improvement project (CIP) and non-Program CIP projects
• Support for development of annual budgets, additional cost/cash flows and forecasting alternatives, coordination with the City’s pro forma consultant • Support associated with project funding options
Assumptions:

1. An allowance of 8 hours per month is allocated for this task.

Subtask 3.8: Design Drawing Review Software
The City continues to implement Bluebeam as a collaborative design drawing review tool that enables multiple reviewers to edit and comment on a common document. The City will need to continue to provide training, enhance the use of Bluebeam, and support the review work processes as more Program projects use the tool. This subtask provides additional support for the Bluebeam collaborative review processes. The anticipated work includes:

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• Prepare one Program refresher (4 hours).
• Project support for the different projects moving forward/going into design. Staff will engage HDR as the first resource, and a City subject-matter expert will provide additional support as needed (12 hours for three projects: 3.3.1, 4.4, and 4.8).
• Update training documentation: This will include modification of existing training materials previously implemented with incorporation of lessons learned (3 hours).

Deliverables:

1. Updated Program documents (3 hours)
Assumptions:

1. Three projects will use Bluebeam for design drawing review during the fiscal year.

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Task 4: Planning and Preliminary Engineering
In general, Task 4 covers activities critical to the planning of Program projects. This task involves planning and preliminary engineering efforts by HDR that would be performed during this service order. It includes the following subtasks:
• Subtask 4.1: Planning Efforts
• Subtask 4.1.6: Distribution System Water Quality Improvements [carryover from SO7] • Subtask 4.1.19: GHWTP SCADA [Supervisory Control and Data Acquisition] Radio System Replacement [not used]
• Subtask 4.1.20: Program Maturity
• Subtask 4.2: Preliminary Engineering Efforts [not used] • Subtask 4.3: Asset Management
• Subtask 4.3.6: Asset On-boarding Support
• Subtask 4.3.7: CMMS [Computerized Maintenance Management System] Implementation Support [completed]
• Subtask 4.3.8: Computerized Maintenance Management System Implementation Support • Subtask 4.4: Main Replacement Program Support [completed] • Subtask 4.5: GHWTP CMMS Implementation Planning [not used] • Subtask 4.6: [not used]
• Subtask 4.7: Beltz 12 Well Ammonia Removal
• Subtask 4.8: Riverbank Filtration Design
• Subtask 4.9: Downtown Generator Design and Construction • Subtask 4-6.1: U4 Tank Electrical, I&C Design Support Subtask 4.1: Planning Efforts
Subtasks 4.1.1–4.1.5 Completed under Previous Service Orders Subtask 4.1.6: Distribution System Water Quality
The task lead will use the City’s hydraulic water model to assess improvements needed in the outer reaches of the water system where water age can be excessive and requires constant maintenance to flush the system.

Issues anticipated to be addressed include:

1. System requirements
• Storage capacity
• Reliable pumping capacity (accounts for redundant pumps and backup power) • Fire flow reserve (FFR)
• Current average day demand (ADD)
• Current maximum day demand (MDD)

2. Long distribution mains with low demand

3. Fire storage significantly larger than daily demands of the area

4. Ability to implement effective system flushing because of staff availability or pipe diameter (water volumes)

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A planning-level study to determine feasible projects will be prepared. Alternatives will be evaluated to compare the advantages, disadvantages, and order-of-magnitude costs to provide recommendations and a prioritized list of projects for City implementation. Assistance with the Solicitation Package for the RFP will also be provided by the Program manager.

Three areas have been identified for evaluation:

1. DeLaveaga–Santa Cruz Gardens

2. Pasatiempo–Rolling Woods system

3. Carbonera
Anticipated alternatives in each area are summarized below. A preliminary solution to water quality issues will be generated to a 10 percent design level.

1. DeLaveaga–Santa Cruz Gardens Zones Water Quality Improvement: 10 percent design alternative development. Investigation/modeling of the following project alternatives:
• Reduced storage and fire storage only in Santa Cruz Gardens tanks • Deliveries to Soquel Creek Water District
• ASR injection wells

2. Water Quality Improvement: 10 percent design alternative development Pasatiempo–Rolling Woods zones. Investigation/modeling of the following project alternatives:
• Improvements to the Pasatiempo tank
• Reduced online storage
• Use of aerators
• Pressure-reducing valve (PRV) at Eastridge Way and elimination of Carbonera tank • Rolling Woods pressure zone improvements
• Resizing pump station
• Convert zone to hydropneumatics
• Deliveries to Scotts Valley Water District (SVWD)
• Water exchange Scotts Valley Intertie
• Deliveries to San Lorenzo Valley Water District
• ASR injection wells
• Recirculation/bleed-down station connection to raw water at Newell Creek • Rolling Woods tank site improvements
• Aerators
• Tank recirculation pump
• Bleed-down recirculation station to relocated Newell Creek raw water transmission main (current recirculation bleed-down effectiveness is limited by recirculation back to Rolling Woods Pump Station)
• Expand Rolling Woods tank zone into the Hillsdale–Oak Knoll and/or Myers Drive neighborhoods
• New pressure-reducing station at zone valve between Pasatiempo and Carbonera

3. Carbonera Pressure Zone Water Quality Improvement: 10 percent design alternative development. Investigation/modeling of the following project alternatives:
• Carbonera zone reconfiguration
• Removal of Carbonera tank

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• Isolate Carbonera tank either seasonally or semi-permanently and make Carbonera a sub-zone of Pasatiempo
• Interconnection of R-12 and Eastridge Way/Highway 17 zone valve • Reconfiguration such that Tanner Heights line is fed from Pasatiempo Zone through R12 • Reconfiguration of Carbonera pump station in basement of GHWTP • Operate Carbonera pump station in basement of GHWTP continuously to serve fresh water to Carbonera (fill tank with low total organic carbon [TOC], isolate and manage water quality because of low turnover) zone backed up by Pasatiempo • Consideration of long dead-end water quality issues at Branciforte Drive • Reinstall fire booster pump station along B40 Drive
• Reinstall water storage tank and/or hydropneumatic system at end of B40 Drive • Drill new production well at end of B40 Drive
Alternatives for each of the studied areas will include figures appropriate for a 10 percent conceptlevel planning to clarify information provided to the City and will also include preliminary conceptlevel order-of-magnitude costs to determine feasibility and to be used to prioritize future projects.

Meetings:

1. As needed with on-site Program management staff and by phone with off-site Program management staff
Deliverables:

1. Draft and final Distribution System Water Quality Improvements TM (emailed Portable Document Format [PDF] file)

2. Draft and final design services solicitation package Assumptions:

1. Any condition assessment, pilot test, survey, geotechnical investigation, CEQA analysis, or other testing needed will be covered under a separate contract.

2. HDR will use the model received from the City for the analysis.

3. HDR’s scope does not include model updates, or model calibration or validation.

4. The model received from the City is adequate for water age analysis in that it is calibrated and properly represents the network configuration and controls.

5. The scope of the modeling analysis is limited to water age analysis. Other water quality analyses such as chlorine residual or tracer study analyses are not included in this scope of work.

6. Modeling analyses to address water age in the system may include evaluation of storage and pressure zone configuration.

7. Fire protection requirements and/or land use information will be made available to HDR in electronic format.

8. Maximum day and peak hour demand information for each pressure zone will be provided to HDR for use in the analysis.

City Responsibilities:

1. Provide model access

2. Identify environmental documents, permits, and processes needed for selected alternative

3. Provide project description of CEQA process

4. Confirm ROW needs

5. Provide background data

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6. Identify any changes/modifications to as-builts
Subtasks 4.1.7–4.1.16 Completed under previous Service Orders Subtask 4.1.17: Riverbank Filtration (RBF)/Proposed Tait Wells Cost-Benefit Analysis (completed in SO9)
Subtask 4.1.18: Arc Flash Study (scope and efforts included in Task 2.0) Subtask 4.1.19: GHWTP SCADA Radio System Replacement [Completed in SO9] Subtask 4.1.20: Program Maturity [TBD]
Subtask 4.2: Preliminary Engineering Efforts [None Scoped for FY25] Subtask 4.3: Asset Management
Subtasks 4.3.1–4.3.5 Completed under Previous Service Orders Subtask 4.3.6: Asset Onboarding Supp ort
This subtask provides as-needed support to implement asset onboarding for capital projects that will be designed or constructed during FY25 as well as additional services to help the City improve the use of its data management systems to support asset management. The effort for this subtask is based on allocating a budget for two capital projects in the Design phase (50 hours of support) and five projects in the Construction phase (a total of 256 hours) during FY25, and budget to provide data management support to update the asset maintenance management system (AMMS) database so that data collected during construction of these new capital projects are ready for use.

Meetings:

1. Up to two meetings with each project team for training and project coordination

2. 12 meetings to support as-needed data management coordination for the AMMS Deliverables:

1. Training materials for asset onboarding for each project Assumptions:

1. Each project’s PM will be responsible for developing the initial managed asset list during project design.

2. Contractors will be responsible for providing construction-phase asset data in the defined format during project construction.

Subtask 4.3.7: Computerized Maintenance Management System Implementation Support [completed]
Subtask 4.3.8: Computerized Maintenance Management System Implementation Support The City has successfully implemented Cityworks CMMS for operation and maintenance of the potable water distribution system. This task will enable the City to expand the use of Cityworks to support the Meter Shop. This effort has been started as part of the current Service Order 9 scope of work. The remaining tasks to fully implement the system for the Meter Shop are included here.

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To achieve this goal, HDR will provide a Project Manager who will be responsible for managing and coordinating implementation activities to provide for the successful completion of the project to meet the meter program’s implementation goals on schedule and within budget. These services typically include coordination of City staff resources necessary for the implementation, as well as oversight of the implementation vendor (Centricity) who will be providing as-needed implementation support. It is assumed that Centricity will work directly for the City under a separate contract. Their effort is into included in this scope of work.

Subtask 4.3.8.1. Project Management (50% completed in SO9) Project Management subtasks and activities include the work necessary to manage the overall implementation. Under this Task, HDR will coordinate the provided City resources to complete the work plan an and assist the City to coordinate Centricity staff in completion of their stated scope of work. Also, this task will include project management activities for completion of this Task Order (e.g. project status reporting, invoicing, etc.)
Subtask 4.3.8.1.1. Project Coordination
Project Coordination provides a means to communicate and collaborate with the Water and Information Technology staff to execute the tasks necessary to complete the scope of work. At the start of the project, HDR will develop a detailed project plan that includes the tasks and steps necessary to successfully complete the implementation and achieve the goals of the project. This plan will be reviewed with the City and updated as needed.

It also includes communication with City sponsors and stakeholders to keep all parties informed and to facilitate strategic decision-making at the project progresses. Activities include virtual and inperson status meetings, providing status reports and other update activities as needed.

This task also provides for Vendor Project Management which includes communication and coordination with Centricity, facilitating review of vendor monthly invoices and project status reports, tracking of project risks, agreements, and actions items.

Subtask 4.3.8.1.2. Management of Project Management Task Order Management of Project Management Task Order activities are management actions to monitor and manage this Scope of Work. They include conducting weekly project coordination meetings, status reporting for this Task Order, monthly evaluation of earned value and estimate to complete, monitoring and update of the Task Order schedule, and reviewing/approving Task Order invoices.

Task 4.3.8.1 Deliverables:
• Detailed Work Plan
• Monthly Project Status Reports and Invoices
• Weekly Project Coordination Meeting Notes
Task 4.3.8.1 Assumptions:

This project is estimated to be completed in 6 months
Subtasks 4.3.8.2 through 4.3.8.6 were completed as part of Service Order 9.

Subtask 4.3.8.7. User Acceptance Testing
User Acceptance Testing (UAT) is the process of independently testing the completed configured system and integrations to verify that they perform as defined during the Business Process Evaluation task. HDR will lead the UAT, however, the actual testing will be performed by City staff.

HDR will develop a test plan that City staff can follow to perform UAT testing. The testing will be performed over a 3-week period. Bugs, issues, and enhancements will be documented and

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prioritized in the Issue Tracker SharePoint site. The team will meet up to 2 times a week to discuss the UAT process, evaluate and prioritize entries in the Issue Tracker and assess testing progress.

Testing will be completed when there are no more Critical or High-priority bugs or issues remaining to be resolved. Updates to the Cityworks configuration and the integrations will be performed by City staff.

Task 4.3.8.7 Deliverables:
• UAT Test Plan
• UAT Issue Tracker
• UAT Testing Results Report
Task 4.3.8.7 Assumptions:
• Coordination of testing progress will be addressed via 2, 2-hour meetings a week for 3 weeks.
• UAT testing will occur over a 3-week period
• Updates to Cityworks and the integrations will be completed by City staff Task 4.3.8.8. End User Training
It is expected that general Cityworks training will be provided by Centricity and augmented by City staff to address business-specific needs. HDR will spend 1 day monitoring the training to verify completeness.

Task 4.3.8.8 Deliverables:
• None anticipated
Task 4.3.8.8 Assumptions:
• Training will be conducted by Centricity and City staff • HDR will participate in one day of on-site training
Task 4.3.8.9. Rollout Support and Go-Live
Once UAT has been successfully completed and the users have been trained, the system will be ready to be rolled out into production. The team will select a Go-Live date at which the City will begin using the Cityworks system and transition away from the current methods of the work process.

To support this transition, HDR will develop a Go-Live plan and Go-live checklists to account for the steps necessary for success. These steps will include timing as well as roles and responsibilities necessary for completion. This plan and the checklists will be evaluated weekly with the team to evaluate progress. During Go-Live, HDR staff will be on-site to facilitate the transition and help address any issues or challenges that come up.

Task 4.3.8.9 Deliverables:
• Draft and final Go-Live Plan and Checklists
Task 4.3.8.9 Assumptions:
• Go-live will be two days on-site attended by 1 HDR staff Task 4.3.8.10. Post-Production Support
Once the system had been successfully put into production, HDR will continue to provide postproduction support. This includes regular coordination with the system users and implementation team as well as software governance planning.

HDR will conduct weekly post-production coordination meetings for 4 weeks after go-live. These meetings will be used to discuss how the new business processes are working and to make needed additional adjustments to the software or work processes. During this task, HDR will also facilitate

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discussions on the roles and responsibilities needed to maintain and update the system and integrations and will document these recommendations in a software governance worksheet.

Task 4.3.8.10 Deliverables:
• Maintenance of issue log
• Software governance worksheet
Task 4.3.8.10 Assumptions:
• Post go-live support will be provided for 4 weeks after go-live Subtasks 4.4–4.6 [Not Used]
Subtask 4.7: Design: Beltz 12 Ammonia Removal
Since 2020, elevated ammonia and varying levels of hydrogen sulfide have put Beltz 12 out of production because of limited treatment capacity. It was determined that equipment and site improvements would be required to remove ammonia and hydrogen sulfide at Beltz 12 to regain operational functionality of Beltz 12.

The project is proceeding in two phases. Phase I will install a new contact tank and piping, and modify the chlorine injection system to increase chlorine contact time. Construction for Phase I is completed under SO9. Phase II will review the need of replacing current metering pumps and design a replacement on-site chlorine generation system to increase chlorination capacity. The decision to replace the current on-site chlorine generation system was established after reviews of other treatment alternatives. Design for Phase II has been completed under SO9, with construction occurring in FY25.

Subtask 4.7.1: Task Management and Quality Assurance/Quality Control Task management is a continuous task throughout the ESDC duration including project administration and meetings. Project administration includes monitoring and controlling project budget and schedule, informal project updates, QA/QC for project deliverables, and staff scheduling.

Project coordination and review meetings are also included as part of the project management task.

HDR shall prepare agendas, and record and distribute meeting minutes. HDR assumes 12 total meetings. The meetings shall be:

1. Twelve monthly check-in meetings
Deliverables:

1. Meeting agenda and minutes, including action items
Assumptions:

1. Preparation meetings will be completed via telephone call or online meeting and will last no more than 1 hour.

2. Agendas for all meetings will be emailed at least 1 day in advance of the meetings.

3. Draft meeting minutes will be emailed within 1 day after the meeting. The City will have 2 days to review and provide comments. Final meeting minutes will be released 5 days after the meeting.

City Responsibilities:

1. Provide review and comment on all meeting minutes

2. Select representative(s) to participate in biweekly status meetings

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Subtasks 4.7.2–4.7.5 [completed]
Subtask 4.7.6: Engineering Services during Construction (Phase II) HDR will provide engineering services during construction of Phase II including the review and responses to requests for information (RFIs) and submittals, participating weekly construction meetings, and assisting in permitting activities such as updating the O&M manual and supporting contractor to complete record drawings.

Deliverables:

1. Submittal reviews

2. RFI responses

3. Materials required for permit applications

4. Startup and commissioning services
Assumptions:

1. One RFI per sheet

2. Two submittals per sheet

3. One site visit for startup and commissioning, and for punch-list walk

4. Up to two HDR staff will participate in the weekly construction progress meetings City Responsibilities:

1. City will lead the CM efforts including communications with the contractor.

Subtask 4.9: Downtown Generator Design and Construction Support The City is installing a standby generator at the downtown Water Department/Library Admin building at 212 Locust St in Santa Cruz. The scope of the work will be to assist in the review and response to RFIs and Submittals and to participate in Construction Support, as needed.

Total estimated coordination visits: 1
Support: 20 hours over the fiscal year
Subtask 4-6.1: U4 Tank Electrical, I&C Design Support
HDR will provide engineering services during construction of Phase II including the review and responses to requests for information (RFIs) and submittals, and change orders, and assisting in permitting activities such as updating the O&M manual and completing record drawings.

Deliverables:

1. Submittal reviews

2. RFI responses

3. Design change notifications / Change orders

4. Materials required for permit applications

5. Startup and commissioning services
Assumptions:

1. One RFI per sheet

2. Two submittals per sheet

3. One site visit for startup and commissioning, and for punch-list walk

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4. Up to two HDR staff will participate in the weekly construction progress meetings City Responsibilities:

City will lead the CM efforts including communications with the contractor.

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Task 5: Construction Management
CM for the Program projects is implemented in accordance with the CM Strategy and CM Guidelines documents that were developed during mobilization and are included in the PgMP. CM may be performed by the City, HDR, an integrated City-HDR team, or, in certain circumstances, by a thirdparty firm. HDR will implement or continue CM services for the following project subtasks for this service order:
• Task 5: 0.0 General Construction Management Oversight • Task 5: 2.2.1 Newell Creek Pipeline Felton–Graham Hill • Task 5: 2.2.3 Brackney Landslide Area Risk Reduction
• Task 5: 2.4 Intertie 1: Santa Cruz–Scotts Valley
• Task 5: 4.3 GHWTP Concrete Tanks project
• Task 5: 4.4 GHWTP Facilities Improvements project
• Task 5: 4.7 Beltz 12 Well Ammonia Removal
• Task 5: 6.1 U4 Tank Rehab/Replacement
Each project subtask includes performing CM services that align with the phase(s) of project construction during FY2025. Table 2 summarizes the types of services for each subtask that are planned for SO 10. A detailed description of each type of service follows.

Table 2. Construction Management Key Activities Duration in SO10 by Project Task No. Project
Pre-Construction
Services
Construction
Phase
Services
Facility Testing and
Commissioning
Project
Closeout
and
Transfer of
Operations

2.2.1 Newell Creek
Pipeline Felton–
Graham Hill a
1 month 12 months Included in construction phase Not in FY25

2.2.3 Brackney Landslide
Area Risk Reduction
b
Done 11 months Included in construction phase 3 months

2.4 Intertie 1: Santa
Cruz–Scotts Valley b
Done 12 months Included in construction phase Not in FY25

4.3 GHWTP Concrete
Tanks b
Done 9 months Included in construction phase Not in FY25

4.4 GHWTP Facilities
Improvements b
9 months 4 months Not in FY25 Not in FY25

4.7 Beltz 12 Well
Ammonia Removal c
Done 6 months Included in construction phase 6 months

6.1 U4 Tank Rehab/
Replacement c
Done 12 months Not in FY25 Not in FY25
a. Third-party-led CM team.
b. HDR-led CM team (may include part-time City support or part time HDR and subcontractor inspectors). c. City-led PM/CM team.

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Task 5.0. General Construction Management Support
The CM lead or designee will provide oversight of CM planning and implementation for the Program.

Typical tasks will include:

1. Coordinate planning for CM services with project PMs and Program Director.

2. Lead staffing for CM team, whether HDR or integrated City/HDR teams.

3. Develop project-specific CM services budgets.

4. Oversee CM services across Program for consistency and adherence to CM Strategy and CM Guidelines to facilitate accomplishment of project goals, including timely reporting and communication withthe City on key issues.

5. Develop monthly CM report, for inclusion in Program monthly report, to provide status on each project in the construction phase, including those such as Newell Creek Dam Inlet/Outlet with a third-party CM.

6. Coordinate technical support resources, as required, for the construction phase such as cost estimating. Provide cost estimating support during the construction phase, either “in house” or from third-party party consultant.

7. Champion the use of the Program’s CM information system software (Procore) for all projects, wherever possible. Coordinate technical support and training supplements to enhance use by CMs and optimize capability of the system.

8. Support City CM lead as needed on select projects (Project 3.1 Water Supply and Augmentation)
Assumptions:

1. The LOE for the CM lead to perform the above tasks is 0.8 FTE. In addition, this task includes 22 hours for operations liaison support, 120 hours for CM support, and 80 for CM document controls administrator.

Task 5: 2.2.1 Newell Creek Pipeline Felton–Graham Hill
High level support to City PM’s management of the third-party CM consultant.

Task 5: 2.2.3 Brackney Landslide Area Risk Reduction
HDR proposes to provide CM services with staffing plan below.

Lead construction manager: Edwin Zadeh, PE (Michigan), CCM, 17 years of experience including water and wastewater projects in California
Lead inspector: Jin Chong, 40 years of experience including water, wastewater, and horizontal directional drilling (HDD) projects in California
Assumptions

1. Material testing and sampling for density compaction and concrete testing and sampling are a rough-order-of-magnitude estimate.

2. CM services do not include environmental and biological observation and monitoring. These observations will be done by the City or other.

3. Public outreach and notification are done by the City or other.

4. CM services include labor compliance by a subconsultant WITS.

5. Sampling, testing, compaction, and welding inspection: BAGG.

6. Scheduler’s hours are limited to the review of contractor schedule for baseline and monthly update. Scheduler’s time does not include detail review of the contractor Time Impact Analysis (TIA) or claims schedule review.

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Task 5: 2.4 Intertie 1: Santa Cruz–Scotts Valley
HDR proposes to provide CM services with staffing plan below:

Lead construction manager: Edwin Zadeh, PE (Michigan), CCM, 17 years of experience including water and wastewater projects in California
Lead inspector: Jin Chong, 40 years of experience including water, wastewater, and HDD projects in California
In addition, HDR proposes to provide support for the City PM’s management and other constructionrelated tasks including environmental team coordination. Public outreach, County and California Department of Transportation (Caltrans) encroachment permit coordination, and coordination between CM/contractor and ESDC.

Assumptions:

1. Material testing and sampling for density compaction and concrete testing and sampling are a rough-order-of-magnitude estimate.

2. CM services do not include environmental and biological observation and monitoring.

3. Public outreach and notification are done by the City or other.

4. Sampling, testing, compaction, welding, and specialty discipline inspection—BAGG.

5. Scheduler’s hours are limited to the review of contractor schedule for baseline and monthly update. Scheduler’s time does not include detailed review of the contractor TIA or claims schedule review.

Task 5: 4.3 Concrete Tanks Replacement CM
This section describes each of the key activities that may occur during FY25 for a specific project subtask, as indicated by the construction phases in Table 2. This section is organized as follows:
• Activity 1: Project-Specific Construction Management Activities • 1.1 Project Management and Construction Management Plan • 1.2 Communications
• 1.3 Document Control and internet-Based Communication System (Procore) • 1.4 Contract Compliance Verification
• 1.5 Progress and Coordination Meetings
• 1.6 Schedule Monitoring
• 1.7 Change Management
• 1.8 Contractor Invoices and Payment Recommendations
• 1.9 Quality Assurance/Quality Control
• 1.10 Submittal Process
• 1.11 Request for Information Process
• 1.12 Record Documents
• Activity 2: Inspections, Special and Specialty Inspections • 2.1 Inspections
• 2.2 Specialty Inspections
• Activity 3: Division 1 and Special Provisions Compliance • Activity 4: Training, Testing, Startup, and Commissioning • 4.1 Operators Training

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• 4.2 Testing, Startup, and Commissioning
• Activity 5: Acceptance and Closeout
Activity 1. Project-Specific Construction Management Activities The Program manager will administer the construction contract in accordance with the requirements as stated in HDR’s agreement with the City. HDR will maintain project records and finalize during project closeout. The construction manager will coordinate the activities of the project participants including City management and operations staff, the designer, and the construction contractor. The construction manager will balance the objectives of stakeholders to achieve cdompletion of construction, startup, and commissioning while managing the project risks including cost, schedule, and quality.

1.1. Project Management and Construction Management Plan This task includes all project management efforts required to organize the Program manager’s CM team, assign and control work, and report progress to the City in the form of monthly progress reports.

The Construction Management Plan (CMP) defines project guidelines and procedures that conform to the Program’s CM Guidelines as applicable and incorporates the Program manager’s CM best management practices (BMPs) to address and mitigate the anticipated challenges and risks of each project. The CMP will define the approach of the CM team in completing the scope of services. It will explain the structure and organization of the CM team with roles and responsibilities defining tasks and deliverable actions of team members, as well as communication between the CM team, City staff, designer, contractor, and other project participants. The processes and procedures for construction contract administration and quality assurance will be defined along with the methodology for their implementation. The CMP will provide for documentation and recordkeeping and define the document control system (DCS) and use.

The construction manager will:

1. Define an approach to effectively manage and administer the construction contract.

2. Develop and implement a CMP that includes guidelines, procedures, and policies for management of project construction. The CMP guidelines and procedures will conform with the construction contract documents and/or consultant’s CM BMPs as applicable and appropriate.

3. Include, but not be limited to, the following components in the CMP:
a. CM organization, structure, roles and responsibilities, staffing plan, and contact list, including identifying CM team staff to conduct direct communications with the City and design consultant performing the project design services (City designer) b. CM activities and deliverables, including, but not limited to, communications protocols, document control, progress meetings, schedule reviews, change management, contractor invoicing, QA/QC, submittal process, RFI process, and preparation of record documents
c. Inspections and contractor compliance with the City’s Special Provisions portion of the Contract Documents
d. Project-Specific Safety Management Plan for HDR staff e. Training, testing, and startup
f. Partnering and dispute management
g. Spare parts and warranties
h. Acceptance and closeout of Construction Contract

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4. Amend and update the CMP during the project as required to incorporate changes or refinements in scope, schedule, or deliverables.

5. Implement the CMP.

Deliverables:

1. Original and updated CMPs, as necessary

1.2. Communications
The construction manager will facilitate teamwork; achieve common goals for the project; facilitate coordination of team members to complete tasks without disruption of plant operations; and generate and maintain a record of project activities, communications, quality of performance, negotiations, and payments.

The construction manager will:

1. Coordinate communications among the participants in the project by directing communications through the construction manager or other representative at the job site, in accordance with the consultant’s CM BMPs as applicable and appropriate. Participants include, but are not limited to, the contractor, City, and City’s designer.

2. Serve as the primary point of communication for coordination between the contractor, City, City’s designer, and other parties; receive contractor correspondence; prepare draft responses; and transmit City-approved responses.

3. Establish, implement, and manage a master calendar of significant events and meetings for the construction project. The master calendar will be accessible by team members from their personal computer workstations.

4. Establish, implement, and maintain a master project directory listing project participants, their role on the project, address, phone number(s), email address, and other pertinent information.

The master project directory will be accessible by team members from their personal computer workstations.

5. Initiate correspondence with and respond to correspondence from the contractor, designer, City, and other entities as may be required to administer the project.

Deliverables:

1. Project data and communications as compiled within the DCS (project record)

1.3. Document Control and Internet-Based Communication System The Program has selected and will provide Procore, the web-based DCS, and Internet connectivity to facilitate efficient communication and maintain project data and records. The DCS will include features to log and track documents (submittals, RFIs, potential change order [PCO]) as well as store electronic copies. It will provide secure viewing levels that will be controlled by the City, and it will be configured and monitored by the CM team, which will train project participants on its use. A primary objective of the DCS is to provide the project team with a centralized document exchange portal to communicate technical and other project-related information. The construction manager will post project information, logs and reports, meeting agendas and notes, QA reports, and other similar information. The DCS will provide a repository for project data and records; its electronic database will be archive-able and will provide for a protected record of the project history.

The construction manager will maintain complete, current files using the City’s project directory on project-related records including correspondence, construction photographs, public outreach tracking inquiries, job files, submittals, shop drawings, RFIs, Contract Document clarification, PCO

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documentation, directed change order documentation, change order and PCO documentation, issue/action tracking log, claims, nonconformance reports, stop-work notices, daily inspection diaries, weekly inspection summary report, field memoranda, claims management files, warranty/guarantee files, as-built drawings and specifications, shop drawings, training plan, qualification records, material test reports, project payment estimates and records, certified payrolls, manpower utilization reports, insurance, bonds, status reports, and meeting minutes, in accordance with the CM BMPs as applicable and appropriate.

1. Use on-site DCS (Procore) for the timely logging, filing, and tracking of project-related correspondence, and to enable efficient retrieval and to establish the chronology of events

2. Maintain an Internet-based communication system that can be asked to share information among team members and track project communication by date, subject, and status and contract specification number

3. Allow the use of the Internet-based communication system to connect the project controls system to the job site, central project personnel, and City managers

4. Provide training for the City, consultant, designer, and contractor as appropriate for proper use of Internet-based communication system

5. At completion of the project, provide the complete project database of CM documentation to the City in a format that does not need the Internet-based system to review Assumptions:

1. The construction manager will organize and maintain the DCS (Procore).

1.4 Contract Compliance Verification
The construction manager will administer the construction Contract Documents to check contractor compliance with its terms and conditions. The construction manager will:

1. Administer the Construction Contract including prosecution and progress of work, QC administration, daily documentation of work, and measurement and payment.

2. When necessary and appropriate, consult and coordinate with the City’s designer regarding interpretation of the Contract Documents; notify the City in writing in cases of disagreements regarding such interpretations that require resolution. The construction manager will analyze such disagreements and provide input to the City.

3. Document contractor-obtained permits, licenses, insurance, bonds, warranties, and guarantees in accordance with the Contract Documents.

4. Monitor that documentation required from the contractor is received in a timely manner and that project records are complete.

5. Review and document compliance with the Contract Documents.

1.5 Progress and Coordination Meetings
The construction manager will organize, coordinate, and lead progress and coordination meetings.

The construction manager will provide the project team with agendas, meeting notes, and action items and identify follow-up activities. The weekly meetings will include review of recent activities and agenda items, exchange of new information, and planning and coordination of upcoming construction and related activities.

The construction manager will:

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1. Organize and conduct regular weekly progress meetings with the contractor, City, and other participants as necessary to discuss construction progress and planned work, coordination with City operations, submittals, RFIs, construction issues, and PCOs.

2. Organize and conduct periodic and special meetings to resolve issues with the contractor, utilities (e.g., PG&E), regulators, and local agencies having jurisdiction (e.g., Department of Health Services, fire department, Bay Area Air Quality Management), City’s operations staff and contractors, and any participants as necessary and appropriate.

3. Identify construction, schedule, and/or cost coordination and potential dispute issues and recommend an approach for resolving issues.

4. Prepare agendas and produce meeting minutes with a summary of meeting discussion, action items, and decision logs.

5. If required, attend other periodic and/or special meetings organized by the City.

Deliverables:

1. Meeting agenda, minutes, and action items log
Assumptions:

1. The construction manager will organize and lead project meetings and will receive information from other team members in planning and coordinating meetings.

2. Deliverables will be distributed through the DCS and email.

3. Meetings will be held weekly for the duration of the project or as otherwise directed by the City.

1.6. Schedule Monitoring
The CM team will manage contract time through the implementation of project controls on the construction schedule. The construction manager will review the contractor’s preliminary and baseline schedules prior to commencement of work to verify that the full scope of construction work is included and properly sequenced, and that adequate time is provided for the performance of construction activities.

Monthly monitoring of the contractor’s schedule and progress will provide early feedback on deviations from the baseline schedule and identify trends that could lead to project delay. To validate the schedule for measuring work progress, the construction manager will confirm that the schedule updates provided by the contractor are consistent with the work actually performed. To maintain an accurate accounting of project time from the Notice to Begin Work to project completion, schedule updates will be compared with previous submissions, noting progress compared to observations of current and planned work activities.

Negotiated adjustments in contract time and schedule will be evaluated by analyzing each PCO and change order for its impact. The construction manager will include and evaluate rain delays, work disruptions, and other impacts to the contractor’s schedule for adjustments to project completion.

Incorporating the baseline schedule with the time adjustments made during change management will provide a basis for evaluating timely completion, evaluating potential assessment of liquidated damages, and the resolution of potential claims.

The construction manager will:

1. Review the construction baseline schedule and monthly updates for conformance with the Contract Documents with regard to activity sequencing, logic, milestones, and constraints, in accordance with the Program Construction Guidelines and/or Program manager’s CM BMPs as applicable and appropriate; check for proper preparation and accuracy of the contractor’s schedule and recommend acceptance or rejection to the City.

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2. Review monthly construction schedule updates and evaluate progress and associated effect on project cost.

3. Monitor actual start and finish dates.

4. Track and document individual activity duration and sequencing through comparisons with daily inspector’s reports.

5. Identify critical and sub-critical activities, including the City’s operational requirements; check that work is scheduled in an acceptable sequence with reasonable staffing, and includes appropriate time for shop drawing preparation, review, material fabrication and shipping, complete installation, finishing, systems testing, and delivery of third party’s material and equipment; verify that submittals are included in the schedule and that schedule includes acceptance-testing period and indicates milestone completion for each separate portion and/or phase of work.

6. Review activities that interface or tie in within the same construction contract, or with other construction contracts or City activities to optimize preparation for the coordination of these interfaces or tie-ins.

7. Evaluate initial schedules submitted by the contractor pending complete schedule submittal are adequate to pursue initial construction work.

8. Conduct a pre-schedule submission meeting with the contractor to inform the contractor of its contract responsibilities regarding the development and submission of the preliminary and baseline schedules.

9. After prior approval by the City’s PM, the construction manager will require the contractor to prepare and submit a recovery schedule demonstrating its program and proposed plan to make up a lag in scheduled progress and to demonstrate completion of the work within the contract time. The construction manager will review the contractor’s recovery schedule for compliance with the Contract Documents and coordination with the overall project and submit it to the City’s PM with written recommendation for acceptance or rejection.

10. On a monthly basis, review the progress of construction, evaluate the percentage complete of each construction activity as indicated in the contractor’s updated schedule, and review such percentages with the contractor.

11. After the City’s acceptance, use the accepted schedule to monitor progress. When significant changes are made to the Contract Documents or when time extensions are granted, the construction manager will direct the contractor to immediately revise the schedule based on the changed conditions.

12. Evaluate potential delays and advise the City accordingly. The construction manager will highlight such matters during each weekly progress meeting.

13. Observe the contractor’s progress with the work and evaluate whether completion will occur within the specified time and will conform with the requirements of the Contract Documents. If a delay in the work is identified or it appears that the work is not progressing such that the project can be completed within the specified time, or if the project is beyond the completion date and still not complete, inform the City promptly.

14. If delays continue and it appears likely that the construction contractor is not cooperating in correcting the problem, the Program manager will immediately consider and recommend appropriate contract enforcement actions to the City.

1.7 Change Management (Contract Document Clarification, Potential Change Orders, Directed Change Orders, and Change Orders)
The Program manager will perform services relating to changes to the Contract Documents including change orders. The construction manager will:

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1. Develop a change management process to manage and control changes to the Contract Documents, including claims in accordance with the City’s and/or Program manager’s CM BMPs as applicable and appropriate.

2. Manage timely processing of documents in accordance with the construction Contract Documents.

3. Work with the contractor to mitigate field conditions that could result in added work or completion schedule delays.

4. Institute a screening process for change requests initiated by the City, City’s designer, or contractor.

5. Initiate appropriate negotiation, approval, payment, and documentation of changes.

6. Administer the changes as follows, for each PCO:
a. Receive the contractor’s proposal and perform technical analysis for negotiations of final term and price.
b. Analyze the contractor’s requests for time extensions with analytical software and generate an independent schedule, and prepare findings of fact for extending or not extending time.
c. Compare and evaluate the contractor’s proposal with the reconciled and City-approved independent cost estimate and schedule analysis.
d. Upon the City’s approval, negotiate with the contractor the cost and any time extensions associated with the PCO work; if mutually agreeable terms cannot be negotiated on change orders, submit to the City’s PM the pertinent facts and a recommendation of what action should be taken.
e. For change orders on which agreement has not been reached on the amount of equitable adjustment prior to commencing work, the construction manager will inspect construction contractor performance and make detailed records of equipment, material, and labor used; the impact of changed and unchanged work; and other data or information pertinent to a determination of the amount of equitable adjustment of contract price and time of performance.
f. Prepare a change order package for approval and execution by the City and contractor; for each change order package, prepare and submit to City. g. Issue directed change order to the contractor for the purpose of unilaterally modifying the Contract Documents if: (1) the contractor fails to submit a proposal for PCO work within the time specified, or (2) when the City and contractor cannot agree on the terms and conditions of PCO work within a reasonable amount of time as determined by City and CN.
h. Or when in the judgment of the City, it is impractical because of the nature of the change or for any other reason, such as the best interests of the City or the public, for the City and contractor to determine and agree on the costs and schedule impacts before the change must be performed. The construction manager will prepare a draft directed change order with a cover letter for the City PM’s approval before issuing. i. Negotiate with the contractor mutually acceptable terms and conditions of a change order to replace a directed change order, if deemed appropriate by the City.

7. Establish and implement a Construction Contract change order management system to track the status of proposed and executed changes in the work of the contractor, in a format acceptable to, or prescribed by, the City.

8. Keep the City informed of potential changes. All changes affecting project design, quality, schedule, or costs are subject to approval by the City.

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1.8. Contractor Invoices and Payment Recommendations
The construction manager will review the contractor’s proposed schedule of values for reasonableness and ease of monitoring in progressing payments. Changes will be negotiated as needed to provide for accurate valuation, ease of verification, and processing payments. Once approved, the schedule of values will be entered into the City’s standard payment forms and submitted for City approval. The approved payment form will be used by the construction manager and contractor in preparing monthly payment requests. The progress payments will incorporate Contract Document changes, payment for materials on hand, and retentions withheld.

In reviewing the contractor’s payment request, the construction manager will consider compliance with permits, small-business enterprise (SBE) participation, prevailing wages, quality of work, current insurance certificates, State Revolving Fund (SRF) funding requirements, labor compliance requirements, and other items. Each month, the construction manager will review the progress payment with the contractor and members of the CM team to confirm progress of the work and its conformance with the Contract Documents.

The construction manager will, in accordance with the City’s Construction Manual and/or CM BMPs as applicable and appropriate:

1. Review the contractor’s initial cost breakdown (schedule of values) for reasonableness and ease of monitoring and examine the schedule of values to evaluated for front-loading, that the work is sufficiently itemized to determine appropriate progress payments, and the work item values are realistic.

2. Provide an independent assessment of progress, quantities of materials placed, and equipment delivered and installed based upon acceptability of work.

3. Document that the contractor has updated record drawings and provided a monthly project schedule update.

4. Review applications for payment with the contractor for compliance with contract requirements and verify that payment requested comprises payment due based on work completed as related to the schedule of values, and materials and equipment furnished but not incorporated into the work.

5. Evaluate and document the contractor-certified payroll submittal provide labor compliance monitoring.

6. Prepare monthly progress payment using the City’s standard form. The payment application review period will comply with review period requirements established in the Construction Contract.

1.9 Quality Assurance/Quality Control
The objective of QA/QC Plan is to monitor the contractor in compliance with the Contract Documents and permit requirements. The QA/QC Plan will address the contractor’s work requirements including plant operations and startup and testing. The construction manager will perform QA inspections to identify and address potential defects in construction. The construction manager will establish a Field Quality Assurance Plan, providing procedures and guidelines to monitor the contractor’s QA/QC activities.

1. Establish the Field Quality Assurance Plan, including describing the methods for conducting and evaluating that the required Special Inspections and tests are performed according to the Construction Contract drawings and specifications, as well as in compliance with applicable codes, standards, and regulations.

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a. Review and approval of contractor’s QA/QC Plan
b. Field design change control
c. Monitoring of special processes
d. Manufacturing source inspection and witness testing
e. Inspections and test control; special and specialty inspections f. Verification and calibration of measuring and test equipment

2. Document the contractor’s compliance with the QA/QC Plan including materials testing requirements in accordance with Program CM Guidelines, City and/or CM BMPs, as applicable and appropriate.
a. Develop and implement as part of the Field Quality Assurance Plan the methods for inspections and verifications, but not be limited to, the following activities:
i. Inspection of civil work, including excavation and backfill, pile driving, concrete construction, paving
ii. Inspection of structural work
iii. Mechanical equipment inspection
iv. Plumbing; heating, ventilation, and air conditioning (HVAC); and fire protection inspections
v. Electrical inspection and testing
vi. Field welding and inspection
vii. Hydrostatic and pneumatic testing
viii. Instrumentation and control (I&C) inspection and testing ix. Special and specialty inspections, if applicable

3. Document the contractor’s compliance with the QA/QC Plan including materials testing requirements in accordance with Program CM Guidelines, City, and/or CM BMPs, as applicable and appropriate.

1.10 Submittal Process
The construction manager will coordinate and manage the submittal and shop drawing review and approval process. Each project design requires specialized materials, equipment, and performance of tasks, which are specified within the Contract Documents. The submittal process will provide an understanding between the contractor, City’s designer, City, and construction manager of the acceptability of products or procedures proposed by the contractor.

Product information or proposed procedures will be submitted to the construction manager and processed with reviews by the City’s designer, City, and construction manager. Submittals will be reviewed and stamped (approving or not approving) in accordance with the Contract Documents, with the comments provided. Submittals not meeting specification requirements will be returned to the contractor for correction. Complete submittals when approved will be distributed to all parties and provide for a common understanding of the acceptable materials to be incorporated into the project.

SRF funding compliance may require American Iron and Steel (AIS)-compliant product certification as part of the submittal.

The construction manager will, in accordance with the Program Construction Guidelines and/or CM BMPs as applicable and appropriate:

1. Review Contract Documents and prepare anticipated submittal list

2. Receive, log, and confirm compliance with submittal requirements, and distribute for review, and monitor the submittals to achieve timely return to the contractor

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3. Review submittals for format, compliance, and general completeness prior to forwarding to the City’s designer

4. Forward or return submittals within 2 business days from time of receipt by the construction manager

5. Prepare the submittal tracking log in accordance with City standards

6. Maintain a computerized submittal base showing submittal number, description, date received, dates forwarded to and returned from the City and/or City’s designer, date returned to the contractor, and approval status

7. Develop a tracking procedure to enable follow-up on the status of materials and equipment through the entire duration of the project including documentation of AIS compliance

8. Develop lists and monitor status of manufacturer’s certificates, services, spare parts, manuals, and warranties

9. Receive, log, and file manufacturer’s certificates, including warranties; review for compliance with Contract Documents

10. Receive, log, and turn over spare parts to the City

11. Receive, log, and distribute manufacturer’s O&M manuals for review and acceptance; review for compliance with the Contract Documents

1.11 Request For Information (RFI) Process
The construction manager will coordinate and manage a formal RFI review and approval process.

RFIs submitted by the contractor will be processed into the DCS by the construction services manager and routed to the City’s designer and City for information and comment. The review comments of the CM team, City’s designer, and City will be coordinated and a response is logged into the DCS and provided to the contractor.

The construction manager will, in accordance with the Program CM Guidelines and/or CM BMPs as applicable and appropriate:

1. Receive, review, analyze, log and distribute for review, and monitor the RFIs to achieve timely return to the contractor
a. Determine required response suspense date to avoid contractor delay b. Track the status of RFIs and advise the City’s designer of unusual site conditions affecting RFI review
c. Review RFIs for appropriateness, format, content, and general completeness prior to forwarding to the City’s designer
d. Forward or return RFIs within 2 business days from time of receipt by the construction manager

2. Prepare the RFI tracking log

3. Develop and maintain a computerized RFI database showing RFI number, general description, date received, responsible party or parties, dates forwarded to and returned from party or parties, date returned to contractor, and disposition status; continually monitor status of RFIs to track responses and/or compliance with contract-specified turnaround times, as applicable

4. In the case an RFI requests for change, or a response to an RFI results in change, provide input based on the contractual merit of the request or response

5. Monitor status of responses for compliance with agreed or contract-specified turnaround times

6. Track reasons for each RFI, including unforeseen conditions, design issue, and answerable in existing contract documents (unnecessary)

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1.12 Record Documents
The CM team will maintain a set of Contract Documents recording the addenda, design clarifications, and other modifications implemented during the project. At the conclusion of the project, the CM team will combine this information with additional documentation from the contractor’s as-built drawings. The contractor’s as-built documents reflect precisely how the contractor constructed the project, including changes made to the Contract Documents during construction. These compiled specifications and drawings will provide a complete field record of the Contract Documents and their revisions.

The CM team will also provide the marked-up plans and specifications to the City’s designer, who will use them to update the Contract Documents and create Record Drawings. The complete, revised Contract Documents will then be provided to the City as the Record Documents for the project. Accuracy and completion are important as they are a critical project record for the City’s ongoing maintenance and operations of the plant.

The construction manager will, throughout the project and otherwise as appropriate during individual phases of construction or necessary because of interim plant operational status:

1. Maintain a control and record set of plans and specifications with any changes as a result of RFIs, PCOs, directed change orders, change orders, or field memorandum.

2. Review and maintain records of marked-up as-built drawings and specifications so that the Record Documents will be consistent with the construction in progress; the marked-up as-built drawings and specifications shall be neat, clean, and accurately reflect work as constructed. The marked-up as-built drawings will include accurate graphical representations of construction changes, including redlines, detailed drawings, sketches, call-outs, and notes. The marked-up specifications will include redlines and text describing the specific changes. Just referencing RFIs, submittals, design clarifications, or change order documents on the marked-up, as-built drawings and specifications will not be sufficient or acceptable.

3. After confirming the completeness, coordinate the transmittal of Record Documents from the City’s designer to the City.

4. Secure from the contractor, review for compliance with the Contract Documents, and transmit to the City the required guarantees, warranties, bonds, waivers, keys, manuals, as-built drawings, maintenance stocks, and originals of other Contract Documents and papers, including correspondence.

Activity 2. Inspections, Special and Specialty Inspections The CM team inspection staff will provide immediate feedback to the construction manager on project activities and site and operational conditions, and will document the work performed in detailed daily reports. The reports will be logged into the DCS and will be readily available for viewing by the City. The inspection reports will provide a detailed accounting of the work performed and serve to ensure that work is completed in accordance with the Contract Documents.

2.1 Inspections
The construction manager’s inspection staff will be present during construction work hours to evaluate if it is accomplished in accordance with the Contract Documents.

Inspections will provide for monitoring of the construction work and field verification of the contractor’s QC program.

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The CM lead and contractor will plan and coordinate inspections of construction work to provide the needed special and specialty inspections. Inspections will focus on contractor compliance with Contract Documents, permit requirements, and coordination with ongoing plant operations.

The inspection reports will provide a written and photographic record of observations including weather conditions, contractor work force and equipment, and significant material or equipment deliveries.

The CM team inspection staff will monitor the work quality through visual inspection and materials testing, and will use as-needed special and specialty inspections.

During inspections, the contractor will be advised of any nonconforming work observed and, if not corrected within designated time frames, the City will be notified.

Nonconforming work, corrected or not corrected in accordance with designated time frames, will both be recorded on deficiency lists and addressed.

The construction manager will:

1. Provide sufficient qualified, experienced inspection staff to monitor all major work activities associated with work performed on shifts and days worked by the contractor, and to perform inspections and special and specialty inspections as required per the Contract Documents.

2. Inspect materials, equipment, construction procedures, work in progress, and completed work for compliance with the Contract Documents.

3. Monitor the contractor’s look-ahead schedule and confer with the contractor to schedule qualified personnel including specialty inspectors on an as-needed basis to inspect and monitor QC for major work activities.

4. Monitor completed work for contract compliance and generate appropriate deficiency lists.

5. Prepare daily inspection reports detailing weather conditions, status of work, and the location and type of work performed by the contractor, in accordance with the City’s Construction Manual and/or CM BMPs as applicable and appropriate.

6. For each work activity, document the number and classification of craft labor, supervision, equipment (including idle equipment), and materials used.

7. Note material and equipment deliveries or off-hauls, delays (including cause of delay), equipment breakdowns or other field problems, visitors, and other pertinent observations.

Augment reports with sketches and digital photographs.

8. Track progress of work for payment purposes and evaluate if the contractor’s progress payment request reflects the submitted schedule of values and the work actually performed.

9. Develop and implement a written communication system and database notifying the contractor of nonconforming work.

2.2 Specialty Inspections
The as-needed inspections will include structural steel, concrete, soil, and other architectural and mechanical specialties. These inspections will require specialized training and in many cases are associated with risks of wind, seismic, and fire. The construction manager will provide highly skilled specialty inspectors to provide assurance that the work quality will mitigate these potential risks.

The construction manager will:

1. Provide and conduct special inspections in accordance with the requirements set forth in Chapter 17 of the California Building Code (CBC)

2. Provide, at minimum, special inspections for the following work:

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a. Structural steel inspections and verification, including special provisions for seismic resistance
b. Concrete inspections and verification, including special provisions for seismic resistance c. Inspection for wind resistance
d. Foundation soil inspections and verification
e. Inspections and verification for seismic resistance for other building systems, including designated seismic systems, mechanical and electrical components, storage racks and access floors, and architectural components
f. Specialty inspections for the following work disciplines: architectural, structural, mechanical, plumbing, HVAC, fire protection, electrical, and process and instrumentation Activity 3. Division 1 and Special Provisions Compliance The Special Provisions section of the Contract Documents state work requirements for the project including phasing and sequencing, construction coordination with plant operation, and permit compliance. The Project Construction Manual provides specific instructions on monitoring for special provisions compliance such as restrictions on work hours, traffic control, and limiting impacts to the surrounding neighborhood.

The CM team inspection staff will monitor contractor compliance with the Special Provisions and mitigation measures, thereby reducing project risk. Key areas of monitoring by the consultant include stormwater (Stormwater Pollution Prevention Plan [SWPPP]), environmental compliance, discharge permits, and disruption to the neighborhood.

The construction manager will, in accordance with the City’s CM Guidelines and/or CM BMPs as applicable and appropriate:

1. Monitor contractor compliance with Division 1 and Special Provisions specifications including, but not limited to, mitigation commitments, wildlife protection and environmental permits, discharge permits, and erosion and sedimentation control requirements

2. Monitor the contractor’s noise, vibration, traffic, and odor control mitigation plans for contract requirements

3. Provide written notification to the contractor and City with a compliance concern

4. Provide immediate notification to the contractor and City of noncompliance with specifications and permits
Activity 4. Training, Testing, Startup, and Commissioning The construction manager will perform services relating to City staff training, plant startup, and commissioning.

4.1 Operators Training
The construction manager will coordinate contractor-provided operator training and assist in developing operating procedures and processes so that City staff can learn to operate the upgraded plant.

The construction manager will arrange for manufacturer-provided staff training, focusing on operations within the upgraded treatment plant. Trainings will include an on-site training facility with video and audio facilities, and after installation of equipment, instruction classes will be held on operation and maintenance of the equipment. Operations manuals for process equipment will be reviewed and their procedures will be incorporated into the plant operation manual. The construction

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manager will assist the City in developing interim operation procedures and assist staff in initial phases of operation.

The construction manager will:

1. Facilitate and coordinate training of the City’s plant operators with contractor, manufacturers/suppliers, City staff, and City’s designer

2. Review the contractor’s training schedules and training plans

3. Coordinate and provide logistics for the training

4.2 Testing, Startup, and Commissioning
The construction manager will coordinate training once the equipment has arrived and installation is advanced sufficiently to provide for manufacturer inspections and certification of proper installation.

A representative of the manufacturer will visit the site and examine installation to confirm proper installation. After necessary adjustments are made, the manufacturer’s representative will certify the proper installation of equipment and provide operations staff with training on operation and maintenance.

The plant operations support team will organize a startup team from City staff, the City’s designer, and the contractor and lead this team in testing, startup, and commissioning for each phase of the project.

The construction manager will:

1. Coordinate functional and operational testing activities with the contractor, manufacturers, City’s designer, and City.

2. Review the contractor’s test procedures, witness the contractor’s testing, and receive and review the contractor’s test reports

3. Coordinate and schedule startup and commissioning activities

4. Lead, coordinate, direct, and manage day-to-day startup and commissioning activities Activity 5. Acceptance and Closeout
The construction manager will facilitate commissioning in accordance with the project construction phases and facilitate acceptance of each project milestone and the project once their respective commissioning period has been completed. During the later stages of construction for each milestone and of the project, the construction manager will meet with the contractor and develop deficiency lists based on record of inspection and observed noncompliant work.

The construction manager will regularly follow up with the contractor to address the deficient work items prior to commencement of operational testing. Included with system acceptance will be obtaining required warranties and guarantees from equipment manufacturers and contractors that fully comply with the Contract Documents.

The construction manager will begin the process of milestone acceptance near the conclusion of each milestone and the process of project acceptance and Construction Contract closeout near the conclusion of the project.

The construction manager will implement the steps called out in the City’s Construction Manual and/or CM BMPs as applicable and appropriate. Each step will be documented and include a complete review of contract administration, quality assurance and inspection, and plant operations.

A complete review of the DCS will be made to identify any unresolved issues for RFIs/submittals/deliveries/warranties services or certifications. Documentation for each step of the

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closeout process will be assembled along with a calendar of warranty inspection and follow-up activities.

The construction manager will, in accordance with the City’s Construction Manual and/or CM BMPs as applicable and appropriate:

1. Manage the deficiency list process

2. Coordinate the efforts of the City’s designer, City, City operations, and permit authorities to develop a list of deficiencies

3. Coordinate with the contractor, City operations, and other parties to correct the deficiencies

4. Conduct an inspection of the completed work for each milestone, and of the entire job site, and review documents to determine if all construction efforts are in compliance with the Contract Documents

5. Evaluate the closure/completeness/delivery of RFls, submittals, O&M documents, spare parts, training and testing activities, record documents, construction photographs, warranties, guarantees, maintenance bonds, and nonconformance reports

6. Provide the City with complete documentation required for each milestone acceptance and the final project acceptance and closeout of the Construction Contract

7. Coordinate warranty services with the contractor and City through completion of each milestone as required and through final completion and acceptance of the project

8. Provide the City with warranty calendars with recommended warranty inspection dates prior to warranty expirations
Task 5: 4.4 GHWTP Facilities Improvements
The FY25 scope of FIP CM focuses on pre-construction tasks to prepare for future construction activities. Specifically, the HDR CM team will carry out the following pre-construction tasks:
• Review and coordinate with design-builder on 100% drawing and specifications • Review draft and final version of 100% front-end contract documents • Review draft and final version of PDB Agreement
• Review draft and final version of GMP
• Review pre-construction submittals
In parallel, other typical pre-construction tasks outlined in the section below will be carried out:
• Activity 1: Project-Specific Construction Management Activities • 1.1 Project Management and Construction Management Plan • 1.2 Communications
• 1.3 Document Control and internet-Based Communication System (Procore) • 1.4 Contract Compliance Verification
• 1.5 Progress and Coordination Meetings
• 1.6 Schedule Monitoring
• 1.7 Change Management
• 1.8 Contractor Invoices and Payment Recommendations
• 1.9 Quality Assurance/Quality Control
• 1.10 Submittal Process
• 1.11 Request for Information Process
• 1.12 Record Documents

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• Activity 2: Inspections, Special and Specialty Inspections • 2.1 Inspections
Activity 1. Project-Specific Construction Management Activities The Program manager will administer the construction contract in accordance with the requirements as stated in HDR’s agreement with the City. HDR will maintain project records and finalize during project closeout. The construction manager will coordinate the activities of the project participants including City management and operations staff, the designer, and the construction contractor. The construction manager will balance the objectives of stakeholders to achieve completion of construction, startup, and commissioning while managing the project risks including cost, schedule, and quality.

1.1. Project Management and Construction Management Plan This task includes all project management efforts required to organize the Program manager’s CM team, assign and control work, and report progress to the City in the form of monthly progress reports.

The Construction Management Plan (CMP) defines project guidelines and procedures that conform to the Program’s CM Guidelines as applicable and incorporates the Program manager’s CM best management practices (BMPs) to address and mitigate the anticipated challenges and risks of each project. The CMP will define the approach of the CM team in completing the scope of services. It will explain the structure and organization of the CM team with roles and responsibilities defining tasks and deliverable actions of team members, as well as communication between the CM team, City staff, designer, contractor, and other project participants. The processes and procedures for construction contract administration and quality assurance will be defined along with the methodology for their implementation. The CMP will provide for documentation and recordkeeping and define the document control system (DCS) and use.

The construction manager will:

1. Define an approach to effectively manage and administer the construction contract.

2. Develop and implement a CMP that includes guidelines, procedures, and policies for management of project construction. The CMP guidelines and procedures will conform with the construction contract documents and/or consultant’s CM BMPs as applicable and appropriate.

3. Include, but not be limited to, the following components in the CMP:
a. CM organization, structure, roles and responsibilities, staffing plan, and contact list, including identifying CM team staff to conduct direct communications with the City and design consultant performing the project design services (City designer) b. CM activities and deliverables, including, but not limited to, communications protocols, document control, progress meetings, schedule reviews, change management, contractor invoicing, QA/QC, submittal process, RFI process, and preparation of record documents
c. Inspections and contractor compliance with the City’s Special Provisions portion of the Contract Documents
d. Project-Specific Safety Management Plan for HDR staff e. Training, testing, and startup
f. Partnering and dispute management
g. Spare parts and warranties
h. Acceptance and closeout of Construction Contract

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4. Amend and update the CMP during the project as required to incorporate changes or refinements in scope, schedule, or deliverables.

5. Implement the CMP.

Deliverables:

1. Original and updated CMPs, as necessary

1.2. Communications
The construction manager will facilitate teamwork; achieve common goals for the project; facilitate coordination of team members to complete tasks without disruption of plant operations; and generate and maintain a record of project activities, communications, quality of performance, negotiations, and payments.

The construction manager will:

1. Coordinate communications among the participants in the project by directing communications through the construction manager or other representative at the job site, in accordance with the consultant’s CM BMPs as applicable and appropriate. Participants include, but are not limited to, the contractor, City, and City’s designer.

2. Serve as the primary point of communication for coordination between the contractor, City, City’s designer, and other parties; receive contractor correspondence; prepare draft responses; and transmit City-approved responses.

3. Establish, implement, and manage a master calendar of significant events and meetings for the construction project. The master calendar will be accessible by team members from their personal computer workstations.

4. Establish, implement, and maintain a master project directory listing project participants, their role on the project, address, phone number(s), email address, and other pertinent information.

The master project directory will be accessible by team members from their personal computer workstations.

5. Initiate correspondence with and respond to correspondence from the contractor, designer, City, and other entities as may be required to administer the project.

Deliverables:

1. Project data and communications as compiled within the DCS (project record)

1.3. Document Control and Internet-Based Communication System The Program has selected and will provide Procore, the web-based DCS, and Internet connectivity to facilitate efficient communication and maintain project data and records. The DCS will include features to log and track documents (submittals, RFIs, potential change order ) as well as store electronic copies. It will provide secure viewing levels that will be controlled by the City, and it will be configured and monitored by the CM team, which will train project participants on its use. A primary objective of the DCS is to provide the project team with a centralized document exchange portal to communicate technical and other project-related information. The construction manager will post project information, logs and reports, meeting agendas and notes, QA reports, and other similar information. The DCS will provide a repository for project data and records; its electronic database will be archive-able and will provide for a protected record of the project history.

The construction manager will maintain complete, current files using the City’s project directory on project-related records including correspondence, construction photographs, public outreach tracking inquiries, job files, submittals, shop drawings, RFIs, Contract Document clarification, PCO

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documentation, directed change order documentation, change order and PCO documentation, issue/action tracking log, claims, nonconformance reports, stop-work notices, daily inspection diaries, weekly inspection summary report, field memoranda, claims management files, warranty/guarantee files, as-built drawings and specifications, shop drawings, training plan, qualification records, material test reports, project payment estimates and records, certified payrolls, manpower utilization reports, insurance, bonds, status reports, and meeting minutes, in accordance with the CM BMPs as applicable and appropriate.

1. Use on-site DCS (Procore) for the timely logging, filing, and tracking of project-related correspondence, and to enable efficient retrieval and to establish the chronology of events

2. Maintain an Internet-based communication system that can be asked to share information among team members and track project communication by date, subject, and status and contract specification number

3. Allow the use of the Internet-based communication system to connect the project controls system to the job site, central project personnel, and City managers

4. Provide training for the City, consultant, designer, and contractor as appropriate for proper use of Internet-based communication system

5. At completion of the project, provide the complete project database of CM documentation to the City in a format that does not need the Internet-based system to review Assumptions:

1. The construction manager will organize and maintain the DCS (Procore).

1.4 Contract Compliance Verification
The construction manager will administer the construction Contract Documents to check contractor compliance with its terms and conditions. The construction manager will:

1. Administer the Construction Contract including prosecution and progress of work, QC administration, daily documentation of work, and measurement and payment.

2. When necessary and appropriate, consult and coordinate with the City’s designer regarding interpretation of the Contract Documents; notify the City in writing in cases of disagreements regarding such interpretations that require resolution. The construction manager will analyze such disagreements and provide input to the City.

3. Document contractor-obtained permits, licenses, insurance, bonds, warranties, and guarantees in accordance with the Contract Documents.

4. Monitor that documentation required from the contractor is received in a timely manner and that project records are complete.

5. Review and document compliance with the Contract Documents.

1.5 Progress and Coordination Meetings
The construction manager will organize, coordinate, and lead progress and coordination meetings.

The construction manager will provide the project team with agendas, meeting notes, and action items and identify follow-up activities. The weekly meetings will include review of recent activities and agenda items, exchange of new information, and planning and coordination of upcoming construction and related activities.

The construction manager will:

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1. Organize and conduct regular weekly progress meetings with the contractor, City, and other participants as necessary to discuss construction progress and planned work, coordination with City operations, submittals, RFIs, construction issues, and PCOs.

2. Organize and conduct periodic and special meetings to resolve issues with the contractor, utilities (e.g., PG&E), regulators, and local agencies having jurisdiction (e.g., Department of Health Services, fire department, Bay Area Air Quality Management), City’s operations staff and contractors, and any participants as necessary and appropriate.

3. Identify construction, schedule, and/or cost coordination and potential dispute issues and recommend an approach for resolving issues.

4. Prepare agendas and produce meeting minutes with a summary of meeting discussion, action items, and decision logs.

5. If required, attend other periodic and/or special meetings organized by the City.

Deliverables:

1. Meeting agenda, minutes, and action items log
Assumptions:

1. The construction manager will organize and lead project meetings and will receive information from other team members in planning and coordinating meetings.

2. Deliverables will be distributed through the DCS and email.

3. Meetings will be held weekly for the duration of the project or as otherwise directed by the City.

1.6. Schedule Monitoring
The CM team will manage contract time through the implementation of project controls on the construction schedule. The construction manager will review the contractor’s preliminary and baseline schedules prior to commencement of work to verify that the full scope of construction work is included and properly sequenced, and that adequate time is provided for the performance of construction activities.

Monthly monitoring of the contractor’s schedule and progress will provide early feedback on deviations from the baseline schedule and identify trends that could lead to project delay. To validate the schedule for measuring work progress, the construction manager will confirm that the schedule updates provided by the contractor are consistent with the work actually performed. To maintain an accurate accounting of project time from the Notice to Begin Work to project completion, schedule updates will be compared with previous submissions, noting progress compared to observations of current and planned work activities.

Negotiated adjustments in contract time and schedule will be evaluated by analyzing each PCO and change order for its impact. The construction manager will include and evaluate rain delays, work disruptions, and other impacts to the contractor’s schedule for adjustments to project completion.

Incorporating the baseline schedule with the time adjustments made during change management will provide a basis for evaluating timely completion, evaluating potential assessment of liquidated damages, and the resolution of potential claims.

The construction manager will:

1. Review the construction baseline schedule and monthly updates for conformance with the Contract Documents with regard to activity sequencing, logic, milestones, and constraints, in accordance with the Program Construction Guidelines and/or Program manager’s CM BMPs as applicable and appropriate; check for proper preparation and accuracy of the contractor’s schedule and recommend acceptance or rejection to the City.

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2. Review monthly construction schedule updates and evaluate progress and associated effect on project cost.

3. Monitor actual start and finish dates.

4. Track and document individual activity duration and sequencing through comparisons with daily inspector’s reports.

5. Identify critical and sub-critical activities, including the City’s operational requirements; check that work is scheduled in an acceptable sequence with reasonable staffing, and includes appropriate time for shop drawing preparation, review, material fabrication and shipping, complete installation, finishing, systems testing, and delivery of third party’s material and equipment; verify that submittals are included in the schedule and that schedule includes acceptance-testing period and indicates milestone completion for each separate portion and/or phase of work.

6. Review activities that interface or tie in within the same construction contract, or with other construction contracts or City activities to optimize preparation for the coordination of these interfaces or tie-ins.

7. Evaluate initial schedules submitted by the contractor pending complete schedule submittal are adequate to pursue initial construction work.

8. Conduct a pre-schedule submission meeting with the contractor to inform the contractor of its contract responsibilities regarding the development and submission of the preliminary and baseline schedules.

9. After prior approval by the City’s PM, the construction manager will require the contractor to prepare and submit a recovery schedule demonstrating its program and proposed plan to make up a lag in scheduled progress and to demonstrate completion of the work within the contract time. The construction manager will review the contractor’s recovery schedule for compliance with the Contract Documents and coordination with the overall project and submit it to the City’s PM with written recommendation for acceptance or rejection.

10. On a monthly basis, review the progress of construction, evaluate the percentage complete of each construction activity as indicated in the contractor’s updated schedule, and review such percentages with the contractor.

11. After the City’s acceptance, use the accepted schedule to monitor progress. When significant changes are made to the Contract Documents or when time extensions are granted, the construction manager will direct the contractor to immediately revise the schedule based on the changed conditions.

12. Evaluate potential delays and advise the City accordingly. The construction manager will highlight such matters during each weekly progress meeting.

13. Observe the contractor’s progress with the work and evaluate whether completion will occur within the specified time and will conform with the requirements of the Contract Documents. If a delay in the work is identified or it appears that the work is not progressing such that the project can be completed within the specified time, or if the project is beyond the completion date and still not complete, inform the City promptly.

14. If delays continue and it appears likely that the construction contractor is not cooperating in correcting the problem, the Program manager will immediately consider and recommend appropriate contract enforcement actions to the City.

1.7 Change Management (Contract Document Clarification, Potential Change Orders, Directed Change Orders, and Change Orders)
The Program manager will perform services relating to changes to the Contract Documents including change orders. The construction manager will:

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1. Develop a change management process to manage and control changes to the Contract Documents, including claims in accordance with the City’s and/or Program manager’s CM BMPs as applicable and appropriate.

2. Manage timely processing of documents in accordance with the construction Contract Documents.

3. Work with the contractor to mitigate field conditions that could result in added work or completion schedule delays.

4. Institute a screening process for change requests initiated by the City, City’s designer, or contractor.

5. Initiate appropriate negotiation, approval, payment, and documentation of changes.

6. Administer the changes as follows, for each PCO:
a. Receive the contractor’s proposal and perform technical analysis for negotiations of final term and price.
b. Analyze the contractor’s requests for time extensions with analytical software and generate an independent schedule, and prepare findings of fact for extending or not extending time.
c. Compare and evaluate the contractor’s proposal with the reconciled and City-approved independent cost estimate and schedule analysis.
d. Upon the City’s approval, negotiate with the contractor the cost and any time extensions associated with the PCO work; if mutually agreeable terms cannot be negotiated on change orders, submit to the City’s PM the pertinent facts and a recommendation of what action should be taken.
e. For change orders on which agreement has not been reached on the amount of equitable adjustment prior to commencing work, the construction manager will inspect construction contractor performance and make detailed records of equipment, material, and labor used; the impact of changed and unchanged work; and other data or information pertinent to a determination of the amount of equitable adjustment of contract price and time of performance.
f. Prepare a change order package for approval and execution by the City and contractor; for each change order package, prepare and submit to City. g. Issue directed change order to the contractor for the purpose of unilaterally modifying the Contract Documents if: (1) the contractor fails to submit a proposal for PCO work within the time specified, or (2) when the City and contractor cannot agree on the terms and conditions of PCO work within a reasonable amount of time as determined by City and CN.
h. Or when in the judgment of the City, it is impractical because of the nature of the change or for any other reason, such as the best interests of the City or the public, for the City and contractor to determine and agree on the costs and schedule impacts before the change must be performed. The construction manager will prepare a draft directed change order with a cover letter for the City PM’s approval before issuing. i. Negotiate with the contractor mutually acceptable terms and conditions of a change order to replace a directed change order, if deemed appropriate by the City.

7. Establish and implement a Construction Contract change order management system to track the status of proposed and executed changes in the work of the contractor, in a format acceptable to, or prescribed by, the City.

8. Keep the City informed of potential changes. All changes affecting project design, quality, schedule, or costs are subject to approval by the City.

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1.8. Contractor Invoices and Payment Recommendations
The construction manager will review the contractor’s proposed schedule of values for reasonableness and ease of monitoring in progressing payments. Changes will be negotiated as needed to provide for accurate valuation, ease of verification, and processing payments. Once approved, the schedule of values will be entered into the City’s standard payment forms and submitted for City approval. The approved payment form will be used by the construction manager and contractor in preparing monthly payment requests. The progress payments will incorporate Contract Document changes, payment for materials on hand, and retentions withheld.

In reviewing the contractor’s payment request, the construction manager will consider compliance with permits, small-business enterprise (SBE) participation, prevailing wages, quality of work, current insurance certificates, State Revolving Fund (SRF) funding requirements, labor compliance requirements, and other items. Each month, the construction manager will review the progress payment with the contractor and members of the CM team to confirm progress of the work and its conformance with the Contract Documents.

The construction manager will, in accordance with the City’s Construction Manual and/or CM BMPs as applicable and appropriate:

1. Review the contractor’s initial cost breakdown (schedule of values) for reasonableness and ease of monitoring and examine the schedule of values to evaluated for front-loading, that the work is sufficiently itemized to determine appropriate progress payments, and the work item values are realistic.

2. Provide an independent assessment of progress, quantities of materials placed, and equipment delivered and installed based upon acceptability of work.

3. Document that the contractor has updated record drawings and provided a monthly project schedule update.

4. Review applications for payment with the contractor for compliance with contract requirements and verify that payment requested comprises payment due based on work completed as related to the schedule of values, and materials and equipment furnished but not incorporated into the work.

5. Evaluate and document the contractor-certified payroll submittal provide labor compliance monitoring.

6. Prepare monthly progress payment using the City’s standard form. The payment application review period will comply with review period requirements established in the Construction Contract.

1.9 Quality Assurance/Quality Control
The objective of QA/QC Plan is to monitor the contractor in compliance with the Contract Documents and permit requirements. The QA/QC Plan will address the contractor’s work requirements including plant operations and startup and testing. The construction manager will perform QA inspections to identify and address potential defects in construction. The construction manager will establish a Field Quality Assurance Plan, providing procedures and guidelines to monitor the contractor’s QA/QC activities.

1. Establish the Field Quality Assurance Plan, including describing the methods for conducting and evaluating that the required Special Inspections and tests are performed according to the Construction Contract drawings and specifications, as well as in compliance with applicable codes, standards, and regulations.

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a. Review and approval of contractor’s QA/QC Plan
b. Field design change control
c. Monitoring of special processes
d. Manufacturing source inspection and witness testing
e. Inspections and test control; special and specialty inspections f. Verification and calibration of measuring and test equipment

2. Document the contractor’s compliance with the QA/QC Plan including materials testing requirements in accordance with Program CM Guidelines, City and/or CM BMPs, as applicable and appropriate.
a. Develop and implement as part of the Field Quality Assurance Plan the methods for inspections and verifications, but not be limited to, the following activities:
x. Inspection of civil work, including excavation and backfill, pile driving, concrete construction, paving
xi. Inspection of structural work
xii. Mechanical equipment inspection
xiii. Plumbing; heating, ventilation, and air conditioning (HVAC); and fire protection inspections
xiv. Electrical inspection and testing
xv. Field welding and inspection
xvi. Hydrostatic and pneumatic testing
xvii. Instrumentation and control (I&C) inspection and testing xviii. Special and specialty inspections, if applicable

3. Document the contractor’s compliance with the QA/QC Plan including materials testing requirements in accordance with Program CM Guidelines, City, and/or CM BMPs, as applicable and appropriate.

1.10 Submittal Process
The construction manager will coordinate and manage the submittal and shop drawing review and approval process. Each project design requires specialized materials, equipment, and performance of tasks, which are specified within the Contract Documents. The submittal process will provide an understanding between the contractor, City’s designer, City, and construction manager of the acceptability of products or procedures proposed by the contractor.

Product information or proposed procedures will be submitted to the construction manager and processed with reviews by the City’s designer, City, and construction manager. Submittals will be reviewed and stamped (approving or not approving) in accordance with the Contract Documents, with the comments provided. Submittals not meeting specification requirements will be returned to the contractor for correction. Complete submittals when approved will be distributed to all parties and provide for a common understanding of the acceptable materials to be incorporated into the project.

SRF funding compliance may require American Iron and Steel (AIS)-compliant product certification as part of the submittal.

The construction manager will, in accordance with the Program Construction Guidelines and/or CM BMPs as applicable and appropriate:

1. Review Contract Documents and prepare anticipated submittal list

2. Receive, log, and confirm compliance with submittal requirements, and distribute for review, and monitor the submittals to achieve timely return to the contractor

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3. Review submittals for format, compliance, and general completeness prior to forwarding to the City’s designer

4. Forward or return submittals within 2 business days from time of receipt by the construction manager

5. Prepare the submittal tracking log in accordance with City standards

6. Maintain a computerized submittal base showing submittal number, description, date received, dates forwarded to and returned from the City and/or City’s designer, date returned to the contractor, and approval status

7. Develop a tracking procedure to enable follow-up on the status of materials and equipment through the entire duration of the project including documentation of AIS compliance

8. Develop lists and monitor status of manufacturer’s certificates, services, spare parts, manuals, and warranties

9. Receive, log, and file manufacturer’s certificates, including warranties; review for compliance with Contract Documents

10. Receive, log, and turn over spare parts to the City

11. Receive, log, and distribute manufacturer’s O&M manuals for review and acceptance; review for compliance with the Contract Documents

1.11 Request For Information (RFI) Process
The construction manager will coordinate and manage a formal RFI review and approval process.

RFIs submitted by the contractor will be processed into the DCS by the construction services manager and routed to the City’s designer and City for information and comment. The review comments of the CM team, City’s designer, and City will be coordinated and a response is logged into the DCS and provided to the contractor.

The construction manager will, in accordance with the Program CM Guidelines and/or CM BMPs as applicable and appropriate:

1. Receive, review, analyze, log and distribute for review, and monitor the RFIs to achieve timely return to the contractor
b. Determine required response suspense date to avoid contractor delay c. Track the status of RFIs and advise the City’s designer of unusual site conditions affecting RFI review
d. Review RFIs for appropriateness, format, content, and general completeness prior to forwarding to the City’s designer
e. Forward or return RFIs within 2 business days from time of receipt by the construction manager

2. Prepare the RFI tracking log

3. Develop and maintain a computerized RFI database showing RFI number, general description, date received, responsible party or parties, dates forwarded to and returned from party or parties, date returned to contractor, and disposition status; continually monitor status of RFIs to track responses and/or compliance with contract-specified turnaround times, as applicable

4. In the case an RFI requests for change, or a response to an RFI results in change, provide input based on the contractual merit of the request or response

5. Monitor status of responses for compliance with agreed or contract-specified turnaround times

6. Track reasons for each RFI, including unforeseen conditions, design issue, and answerable in existing contract documents (unnecessary)

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1.12 Record Documents
The CM team will maintain a set of Contract Documents recording the addenda, design clarifications, and other modifications implemented during the project. At the conclusion of the project, the CM team will combine this information with additional documentation from the contractor’s as-built drawings. The contractor’s as-built documents reflect precisely how the contractor constructed the project, including changes made to the Contract Documents during construction. These compiled specifications and drawings will provide a complete field record of the Contract Documents and their revisions.

The CM team will also provide the marked-up plans and specifications to the City’s designer, who will use them to update the Contract Documents and create Record Drawings. The complete, revised Contract Documents will then be provided to the City as the Record Documents for the project. Accuracy and completion are important as they are a critical project record for the City’s ongoing maintenance and operations of the plant.

The construction manager will, throughout the project and otherwise as appropriate during individual phases of construction or necessary because of interim plant operational status:

1. Maintain a control and record set of plans and specifications with any changes as a result of RFIs, PCOs, directed change orders, change orders, or field memorandum.

2. Review and maintain records of marked-up as-built drawings and specifications so that the Record Documents will be consistent with the construction in progress; the marked-up as-built drawings and specifications shall be neat, clean, and accurately reflect work as constructed. The marked-up as-built drawings will include accurate graphical representations of construction changes, including redlines, detailed drawings, sketches, call-outs, and notes. The marked-up specifications will include redlines and text describing the specific changes. Just referencing RFIs, submittals, design clarifications, or change order documents on the marked-up, as-built drawings and specifications will not be sufficient or acceptable.

3. After confirming the completeness, coordinate the transmittal of Record Documents from the City’s designer to the City.

4. Secure from the contractor, review for compliance with the Contract Documents, and transmit to the City the required guarantees, warranties, bonds, waivers, keys, manuals, as-built drawings, maintenance stocks, and originals of other Contract Documents and papers, including correspondence.

Activity 2. Inspections, Special and Specialty Inspections The CM team inspection staff will provide immediate feedback to the construction manager on project activities and site and operational conditions, and will document the work performed in detailed daily reports. The reports will be logged into the DCS and will be readily available for viewing by the City. The inspection reports will provide a detailed accounting of the work performed and serve to ensure that work is completed in accordance with the Contract Documents.

2.1 Inspections
The construction manager’s inspection staff will be present during construction work hours to evaluate if it is accomplished in accordance with the Contract Documents.

Inspections will provide for monitoring of the construction work and field verification of the contractor’s QC program.

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The CM lead and contractor will plan and coordinate inspections of construction work to provide the needed special and specialty inspections. Inspections will focus on contractor compliance with Contract Documents, permit requirements, and coordination with ongoing plant operations.

The inspection reports will provide a written and photographic record of observations including weather conditions, contractor work force and equipment, and significant material or equipment deliveries.

The CM team inspection staff will monitor the work quality through visual inspection and materials testing, and will use as-needed special and specialty inspections.

During inspections, the contractor will be advised of any nonconforming work observed and, if not corrected within designated time frames, the City will be notified.

Nonconforming work, corrected or not corrected in accordance with designated time frames, will both be recorded on deficiency lists and addressed.

The construction manager will:

1. Provide sufficient qualified, experienced inspection staff to monitor all major work activities associated with work performed on shifts and days worked by the contractor, and to perform inspections and special and specialty inspections as required per the Contract Documents.

2. Inspect materials, equipment, construction procedures, work in progress, and completed work for compliance with the Contract Documents.

3. Monitor the contractor’s look-ahead schedule and confer with the contractor to schedule qualified personnel including specialty inspectors on an as-needed basis to inspect and monitor QC for major work activities.

4. Monitor completed work for contract compliance and generate appropriate deficiency lists.

5. Prepare daily inspection reports detailing weather conditions, status of work, and the location and type of work performed by the contractor, in accordance with the City’s Construction Manual and/or CM BMPs as applicable and appropriate.

6. For each work activity, document the number and classification of craft labor, supervision, equipment (including idle equipment), and materials used.

7. Note material and equipment deliveries or off-hauls, delays (including cause of delay), equipment breakdowns or other field problems, visitors, and other pertinent observations.

Augment reports with sketches and digital photographs.

8. Track progress of work for payment purposes and evaluate if the contractor’s progress payment request reflects the submitted schedule of values and the work actually performed.

9. Develop and implement a written communication system and database notifying the contractor of nonconforming work.

Task 5: 4.7 Beltz 12 Well Ammonia Removal CM Support
Up to 16 hours of construction-phase support for this project is assumed for the Program CM lead and up to 24 hours of construction-phase support is assumed from the Concrete Tanks project construction manager.

Task 5: 6.1 U4 Tank Rehab/Replacement CM Support. Key Scope Activities Up to 16 hours of construction-phase support for this project is assumed for the Program CM lead and up to 24 hours of construction-phase support is assumed from the Concrete Tanks project construction manager. Additionally, a half-time Resident Engineer will support construction management activities as requested by the City.

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Task 6: Program Support
Task 6 groups together several tasks and activities that are critical to project success, including environmental support services, ROW investigation and acquisition, survey, geotechnical investigation, and other miscellaneous services. Project type and phase of development dictate the degree to which particular projects may require the use of these tasks. For example, a treatment plant project may have very extensive geotechnical investigation needs, but very little survey or ROW needs. The following subtasks are included in this service order:
• Subtask 6.1: Environmental Advisory, Compliance, and Technical Support (12-month expected duration)
• Subtask 6.1-0: Environmental Advisory/General Environmental Support • Subtask 6.1-1.5: Newell Creek Inlet/Outlet Dam Restoration Projects • Subtask 6.1-2.2.3: Brackney Landslide Area Pipeline Risk Reduction Compliance Management
• Subtask 6.1-2.4: Intertie 1—Santa Cruz–Scotts Valley Compliance Management • Subtask 6.1-4.3: GHWTP Concrete Tanks Compliance Management • Subtask 6.1–6.1: University Tank 4 (U4) Project
• Subtask 6.2: ROW Acquisition
• Subtask 6.2-2.2.1: Newell Creek Pipeline Felton–Graham Hill ROW • Subtask 6.2-2.2.3: Newell Creek Pipeline Brackney ROW [completed] • Subtask 6.3: Support Communications and Public Outreach (12-month expected duration) • Subtask 6.3.1: Ongoing Communications and Public Outreach Support • Subtask 6.4: Salmonoid Habitat Conservation Plan Consultation • Subtask 6.5: Geotechnical Investigations [not used]
• Subtask 6.6: Project Funding Assistance [not used]
• Subtask 6.7: Program Technical Support (12-month expected duration) Subtask 6.1: Environmental Advisory, Compliance, and Technical Support Under SO 10, HDR will support all projects across the Program as noted below.

Subtask 6.1-0: Environmental Advisory/General Environmental Support Under SO 10, HDR will support all projects across the Program by providing environmental advisory support in the form of Program QA, project-level QC, process improvement, and professional development for the environmental team members. The environmental advisor will work with each project EL collectively and individually to understand the projects and provide useful and objective technical strategy. They will work with Program leadership to identify and lead process improvement opportunities as well as staff development, project negotiations, and both professional and project technical advancement opportunities. They will coordinate with the CEQA/permitting consultant to bring consistent QA and objective feedback to our extended team. They will support the hiring and development of environmental team members and provide support as needed (either directly or through the identification of specific technical expertise or availability within the HDR Program team).

The environmental advisor will participate in regular Program and team meetings including but not limited to the monthly Program PM meetings; monthly environmental Program team meeting;

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monthly HDR environmental team meetings; monthly HDR Program team meetings; monthly HDR leadership meeting; project-specific strategy; and as-needed controls or planning meetings, Water Infrastructure and Finance Innovation Act (WIFIA)/funding strategy meetings, risk management meetings, project lessons-learned or conflict resolution meetings, Program trainings, or team building meetings. The environmental advisor will further participate in as-needed meetings with the CEQA/permitting consultant, other Program team meetings, environmental team initiative meetings, or other Program meetings requiring environmental advisory services.

Outside of general environmental advisory, under SO 10, HDR could, upon request, provide other types of environmental technical support such as, but not limited to:
• Maintenance of PgMP Chapter 17
• Coordination with HDR technical support
• Participation in Program meetings
• Supporting Program environmental processes and advancements • Preparation of technical resource studies
• Providing peer review technical studies or documents
• Scoping or providing strategic advisory to technical approach • Completion of historic records searches, cultural resource inventory analysis, field survey, or review of studies prepared by the City or other consultant(s) • Completion of aquatic resource delineations, biological reconnaissance surveys, avian surveys, or other site verification surveys
• Completion of field verifications or surveys and prepare related reports to support environmental reviews or permitting
• Conducting fisheries studies, modeling, or engineering • Reviewing or providing guidance or direction on stormwater issues including coordination with a local stormwater consultant
• Reviewing or providing guidance or direction on hazardous-materials issues including coordination with a local hazardous-materials consultant/contractor • Hazardous-materials support might be needed to advise on materials found at the FIP and U4 sites
• Monterey Bay Air Resources District (MBARD) air contaminant permitting • Supporting construction teams on unexpected or unprescribed technical issues at the direction of the project EL. An additional 8 hours per project was added to cover undefined hazardousmaterials, stormwater, biological, cultural, or other undefined technical support for the following construction projects:
• Newell Creek Pipeline: Felton to Graham Hill
• Newell Creek Pipeline: Brackney
• Intertie 1: Santa Cruz–Scotts Valley
• Riverbank Filtration
• U4 Tanks
• Branciforte
• Providing geospatial or geographic information system (GIS) support to assess environmental conditions
• Supporting regulatory consultation processes
• Providing QC or peer technical review on environmental methodology or study reports • Supporting project alternative screenings including analysis

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• Supporting project consultant negotiations
• Supporting project business case evaluations
• Coordinating with environmental consultants to the City to maintain performance standards • Working with environmental team to continue to develop the environmental processes and functions of the overall Program
• Conducting other environmental support functions as defined through the project development and collaboration process
Subtask 6.1-1.5: Newell Creek Dam Inlet/Outlet Restoration Projects Under SO 10, HDR will serve in a PM function including participation in monthly project meetings with the City and the restoration contractor (Ecological Concerns, Inc. [ECI]), invoice reviews, QC reviews, and maintenance and monitoring oversight. Building off of FY24, this is estimated as 8 hours per month and includes one site visit by HDR to assess the condition of the Phase I and Phase II restoration sites (i.e., Newell Creek instream and riparian restoration areas, Loch Lomond shoreline restoration area, and Canham meadow restoration area).

Subtask 6.1-4.3: GHWTP Concrete Tanks Compliance Management Under SO 10, HDR will provide continued construction compliance management for the GHWTP Concrete Tanks project. Specifically, HDR will provide technical compliance managers with expertise in cultural resources and biological resources with the roles and responsibilities defined below:
• The cultural-resources compliance manager will oversee and guide the work of the contractors during project initiation and should cultural or archeological resources be encountered during construction.
• The biological-resources compliance manager will oversee and guide the work of Jodi McGraw and team (Jodi McGraw Consulting), the biological monitoring consultant, and Kurt Fouts (consulting arborist).

No stormwater compliance management or monitoring is assumed under this task. A local subconsultant will provide stormwater compliance support during FY25 as part of project CM Task 5-

4.3. The compliance manager will coordinate with the local stormwater subconsultant on scheduling its site visits.

The compliance manager will function under the purview of the City’s EL for the project. Activities might include:
• Site visits, estimated at one visit every 6 months
• Yearly special-status species surveys, estimated at two per year • Development, review, or update of worker environmental awareness training • Preparation of monthly compliance reports
• Compliance tracking of all CEQA mitigations and permitting conditions • Oversight and coordination with monitoring subcontractors • Supporting monitoring procurement processes
• Working with the project EL to develop project-specific monitoring plans, bringing processes and lessons learned from across the Program
• Relaying project requirements to the monitoring team
• Participating in project construction monitoring meetings, as needed • Participating in project construction status meetings, as needed (e.g., when construction schedule changes or changes in activities are expected)

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• Managing monitoring resourcing when there is a change in monitor, change in construction schedule, or when multiple monitors are needed
• Resolving issues with monitoring team, should they arise • Providing day-to-day point of contact to monitoring team, EL, CM team, or project team for compliance questions
• Helping resolve monitoring or finding questions/issues • Collecting and documenting daily/weekly reports
• Managing and filing all pertinent project transmittals • Scheduling and reviewing agency noticing
Two subcontractors are included in this scope of work: Jodi McGraw, who is performing biological monitoring, and Kurt Fouts, an arborist. The scope of work for each will be revisited as the project progresses and after project startup to find efficiencies and process improvement; however, based on current negotiations, Jodi McGraw will complete necessary daily biological monitoring including that required for the Mount Hermon June beetle. She will lead worker environmental awareness program (WEAP) trainings and make necessary updates through the course of the project. She will make sure that BMPs are in place and maintained with integrity, and will support regulatory engagements and provide updates to the compliance tracking. The arborist scope of work is limited to as-needed arborist surveys when work is required on site. That work will be identified by the City’s EL and coordinated by the compliance manager.

Subtask 6.1-2.2.3 Brackney Landslide Area Risk Reduction ECM The Brackney project (referred to in the CEQA documentation as the Brackney North Section) extends approximately 2,600 feet between the intersection of Glen Arbor Road and Schaaf Road on the north and Brackney Road on the south. The Brackney North Section alignment is located along an abandoned railroad bed near the San Lorenzo River between the Glen Arbor Road and Brackney Road neighborhoods. The majority of the Brackney North Section (approximately 1,700 linear feet [LF]) would be a single fused high-density polyethylene (HDPE) pipeline installed using the HDD trenchless method. The pipe would be installed at depths of approximately 80 to 100 feet.

Installation via open-cut trench construction is proposed for approximately 1,000 LF within a 4-footwide trench. Open-trench construction would occur at the north tie-in along Glen Arbor Road to Schaaf Road and along Schaaf Road to the HDD entry point, and also at the southern tie-in at Brackney Road. Upon completion of construction, construction sites would be revegetated and disturbed roadways would be repaved in accordance with County requirements. The Brackney project environmental documentation consists of the Newell Creek Pipeline Environmental Impact Report (EIR), certified by the Santa Cruz City Council in May 2022, and an in process National Environmental Policy Act (NEPA) review and federal consultations conducted by the Federal Emergency Management Agency (FEMA)/California Governor’s Office of Emergency Services (CalOES) as a requirement of project funding. An Addendum to the EIR was posted to the City’s website to address an increase in working hours.

Construction Compliance Management
To assist the City with environmental compliance and management of biological and cultural resources before, during, and after construction, HDR will provide general oversight and management by an environmental compliance manager (ECM). The ECM will be responsible for day-to-day environmental compliance activities, overseeing all environmental field and subcontractors’ work. HDR staff will perform administrative services to procure, monitor, and administer subcontracts. The ECM will perform related tasks to monitor mitigation measures and standard construction practices applicable to the project including, but not limited to, pre-construction

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surveys, environmental awareness training development, monthly compliance reporting, oversight of compliance monitoring, oversight of subconsultants’ work, and project/contractor coordination, and will provide professional expertise.

The environmental aspects of the project will be managed together with two coordinated levels of oversight including the overall environmental management by the City EL and the compliance oversight and management by the ECM. This scope of work applies to the second level. This scope of work includes the strategy, scoping, and coordination of these services as well as any subconsultant contract management and oversight to make sure that all necessary work is completed for the project. The ECM will maintain effective communication with the EL as well as documentation of the compliance process through completion of the project. The EL will be responsible for overall environmental compliance and will handle all regulatory coordination, agency engagement, and any changes to the construction contract documents that have potential environmental considerations.

Document Review
The ECM will review documentation and specifications for the project and assist the EL with compliance requirements over the construction period. The ECM will review and comment on contractor certain submittals, RFIs, and change orders as appropriate in Procore and communicate or escalate any potential issues to the EL for resolution.

The ECM will review CEQA/NEPA documents, project designs, and project specifications as required to perform the scope of work. The ECM will identify discrepancies between project requirements and the environmental subconsultant’s final scope of work and recommend modifications and improvements to improve implementation.

The ECM will review the project documentation including permits, references, conditions of project approval, and work requirements. Below is a list of documents to be furnished by the City for ECM review:
• Divisions 00 and 01 of the construction specifications documents • 2022 State Water Resources Control Board Construction General Permit (CGP) • Project-specific Mitigation Monitoring and Reporting Programs (MMRPs) • Brackney: National Pollutant Discharge Elimination System (NPDES) Drinking Water Discharge Permit to Waters of the United States
• Newell Creek Pipeline EIR and Addendum for Brackney North project • Brackney 100 percent plans
Documents that have not been prepared yet that will have an impact on the timing of the work are the contractor’s construction schedules and submittals. Submittals will contain the means and methods of accomplishing the work. Certain submittals will be reviewed by the ECM.

Meetings and Site Visits
The ECM will attend weekly meetings with the Brackney construction team. Each meeting will be 1 hour long, during the construction period, approximately 40 weeks. The ECM will also attend biweekly meetings with the EL; each will be 30 minutes long and will continue until the project has been completed (30 weeks). Up to 10 additional meeting hours are factored herein to account for any construction delays, issues, or project closeout meetings deemed necessary.

The ECM shall visit the Brackney project site monthly for a total of 13 visits. Each site visit is estimated to take up to 2.5 hours. Three additional visits are included to account for any project issues that arise that may require ECM visitation or for pre- or post-project visits.

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Compliance Management
The ECM will develop reporting and monitoring schedules to maintain project environmental compliance and will provide monthly updated schedules for the duration of construction. The ECM will coordinate with the City and the contractor about upcoming scheduled activities and provide a “2-week look-ahead” for use by the PM and construction manager as needed. This will include monthly updates of an MMRP tracker (mitigation and monitoring plan comments log). Reporting will include weekly logs in a format agreed upon by the City and filed in Procore. When biological monitoring is occurring, the ECM will maintain a weekly log on Procore and will upload copies of all documentation to Procore to allow the City’s EL to keep abreast of the issues and progress. As required, the ECM will solicit a map from subconsultants with the site plan showing areas monitored and results. Weekly compliance management is assumed to take 2 hours per week. Any GIS files developed shall be provided to the City as an ArcGIS map package. The ECM will work with the EL and construction manager, as necessary, to resolve issues and conflicts or adjust the process as needed to make the project run smoothly. File management, archiving, and related documentation with conflict resolution in a format agreed upon by the City will also be included. In addition, the ECM will complete monthly compliance updates via the MMRP tracker for the project totaling up to 10 updates.

6.1-2.2.3 Deliverables:
• Project compliance tracking spreadsheet
• Weekly logs when biological monitoring is occurring
• 2 week look-ahead schedule of environmental activities • Monthly compliance updates MMRP tracker reports
• Final project compliance report

6.1-2.2.3 Assumptions:
• HDR Construction Management services will begin prior to construction and will continue through the end of construction for the Brackney Project. • The EL will coordinate with regulators about the project. The EL will submit documents to regulators.
• Both the construction manager and ECM will have the power to immediately shut down work for violations of safety and environmental compliance.
• The HDR CM team will exercise management oversight over the stormwater responsibilities of the contractor. The CM team will inform the environmental team the results of the SWPPP inspections. The CM team will issue stop-work notices if the SWPPP deficiencies are not addressed in a timely manner. The ECM will not have responsibilities in this regard. The construction manager and ECM will structure a communication strategy to ensure clear lines of communication. Contractor permit violations, deficiencies, and noncompliance are controlled by the construction manager.

In the event that the contractor puts the City at risk of impacting sensitive resources because of noncompliance with environmental documentation, specifications, and plans, the CM lead inspector will provide the contractor with written notification. If the CM team (regarding all contract requirements) or environmental compliance team (regarding the MMRP or SCP]) observes work activities or job conditions that violate requirements and restrictions of the special provisions. Any noncompliance notifications will be logged into Procore by the inspector and notification will be provided to the ECM and EL. These concerns will be logged and communicated based on the level of urgency for resolution and discussed at weekly project meetings and at QA/QC meetings to ensure that the contractor mitigates previous actions and performs work in a timely manner and in

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accordance with special provisions. At the ECM’s and/or EL’s direction, a biological monitor may be called to the site(s) if a special-status species is at risk from project activities. HDR will monitor contractor compliance with the project permits, special provisions, and MMRP. The ECM will notify the EL within 1 business day of the discovery of compliance deficiencies with fencing, MMRP restrictions, etc. HDR will communicate with the construction manager to address noncompliance issues.
• The following services will be provided by others:
• Construction manager (HDR)
• SWPPP oversight: SWPPP field implementation, enforcement, and inspection • Stormwater expert to review the SWPPP and on-site inspections • Noise monitoring, lead and asbestos testing and monitoring, and contaminated-soils monitoring
• Engineering Services During Construction (Mott MacDonald) • Geological monitoring
Subconsultant Procurement and Management
The ECM has obtained qualified, local subconsultants to provide biological,arboricultural and paleontological services including construction monitoring to meet environmental compliance requirements set forth by the project’s documentation and specifications. The elements of the subconsultant environmental services needed as part of this scope of work may include implementing a WEAP, biological resources surveys and monitoring, arboricultural surveys and monitoring, and paleontological resources impact mitigation program (PRIMP) development and monitoring.

Subconsultant Management
The ECM will coordinate with biological, arboricultural, and paleontological subcontractors as needed via either email or conference call. Coordination includes scheduling, reviewing deliverables (WEAP, datasheets, inspection reports), and project reporting to the City’s EL. This coordination is estimated to take up to 4 hours on average per month for the project up to 15 months during the contract period.

6.1-2.2.3 Deliverables
• Monthly compliance update MMRP tracker report
Subtask 6.1-2.4 Intertie 1 – Santa Cruz/Scott’s Valley ECM The Intertie 1 project consists of a new intertie pipeline and associated pump station to connect the water distribution systems of the City and SVWD. The purpose of the proposed Intertie 1 project is to increase the emergency and drought resilience of the City and SVWD by augmenting water supply, water storage, and fire flow capacities. The project will result in 9,600 LF of 12-inch-diameter bidirectional intertie pipeline and a pump station between the City and SVWD distribution systems.

The pipeline will run from the City’s Pasatiempo tanks at the southern extent of the project area along Firehouse Lane to Sims Road, and then north along La Madrona Drive to the city of Scotts Valley where the new pump station would be constructed. The pump station will consist of a singlestory, approximately 800-square-foot building that will contain three 40-horsepower pumps and their associated VFDs and related electrical equipment and piping. Removal of and/or impacts to approximately 25 mature trees will be required. Construction along the currently undeveloped portions of the alignment may require limited areas of temporary regrading to provide ground surfaces suitable for construction. The Intertie 1 project’s compliance with CEQA is the Santa Cruz

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Water Rights Project EIR (June 2021) and an addendum, which was considered by the Santa Cruz City Council in August 2023.

Environmental Construction Management
To assist the City with environmental compliance and management of biological and cultural resources before, during, and after construction, HDR will provide general oversight and management by an ECM. The ECM will be responsible for day-to-day environmental compliance activities, overseeing all environmental field coordination and subcontractors. HDR staff will perform administrative services to monitor and administer subcontracts. The ECM will perform related tasks to monitor mitigation measures and standard construction practices applicable to the projects including, but not limited to, pre-construction surveys, environmental awareness training development, monthly compliance reports, oversight of compliance monitoring and subconsultants, and project/contractor coordination, and will provide professional expertise.

The environmental aspects of the projects will be managed together with two coordinated levels of oversight including the overall environmental management of the City EL and the compliance oversight and management of the ECM. This scope of work applies to the second level. This scope of work includes the strategy, scoping, and coordination of these services as well as any subconsultant contract management and oversight to make sure that all necessary work is completed for the project. The ECM will maintain effective communication with the EL as well as effective documentation of the compliance process through completion of the projects. The EL will be responsible for overall environmental compliance and will handle all regulatory coordination, agency engagement, and any changes to the construction contract documents that have potential environmental considerations.

Document Review
The ECM will review documentation and specifications for the project and assist the EL with compliance requirements over the contract period. The ECM will review and comment on contractor submittals, RFIs, and change orders as appropriate in Procore and communicate or escalate any potential issues to the EL for resolution.

The ECM will review CEQA/NEPA documents, project designs, and project specifications as required to perform the scope of work. The ECM will identify discrepancies between project requirements and the environmental subconsultant’s final scope of work and recommend modifications and improvements to improve implementation.

The ECM will review the project’s documentation including permits, references, conditions of project approval, and work requirements. Below is a list of documents that would be furnished by the City for HDR review:
• Divisions 00 and 01 of the construction specifications documents • 2022 State Water Resources Control Board CGP
• Project-specific MMRPs
• Santa Cruz Water Rights Project EIR and Addendum for Intertie 1 project • Intertie 1 Arborists Report and Tree Protection Plan
• Intertie 1 100 percent plans
Documents that have not been prepared yet that will have an impact on the timing of the work are the contractor’s construction schedules and submittals. Submittals will contain the means and methods of accomplishing the work. Certain submittals will need to be reviewed by the ECM.

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Meetings and Site Visits
The ECM will attend weekly meetings with the Intertie 1 construction team; each will be 1 hour long, through the construction period (~56 weeks). The ECM will attend biweekly meetings with the EL, construction manager, and PM; each will be 30 minutes long and will continue until the project has been completed (~26 weeks). Up to 10 additional meeting hours are factored herein to account for any construction delays, issues, or project closeout meetings deemed necessary.

The ECM may visit the Intertie 1 project site monthly for a total of 16 visits. Each site visit is estimated to take up to 2.5 hours. Three additional visits are included to account for any project issues that arise that may require ECM visitation or for pre- or post-project visits.

Compliance Management
The ECM will develop reporting and monitoring schedules to maintain project environmental compliance and will provide monthly updated schedules for the duration of construction. The ECM will coordinate with the City and contractor about upcoming scheduled activities and provide a “2- week look-ahead” for use by the PM and construction manager as needed. This will include monthly updates of an MMRP tracker (mitigation and monitoring plan comments log). Reporting will include weekly logs in a format agreed upon by the City and filed in Procore. When biological monitoring is occurring, the ECM will maintain a weekly log on Procore and will upload copies of all documentation to Procore to allow the City’s EL to keep abreast of the issues and progress. As required, the ECM will provide a site plan showing areas monitored and results. Weekly compliance management is assumed to take 2 hours per week. Any GIS files developed shall be provided to the City as an ArcGIS map package. The ECM will work with the EL and construction manager, as necessary, to resolve issues and conflicts or adjust the process as needed to make the project run smoothly. File management, archiving, and related documentation with conflict resolution in a format agreed upon by the City will also be included. In addition, the ECM will complete monthly compliance updates via the MMRP tracker for the project totaling up to 10 updates.

6.1-2.4 Deliverables:
• Project compliance tracking spreadsheet
• Weekly logs when biological monitoring is occurring
• 2 week look-ahead schedule of environmental activities • Monthly compliance updates MMRP tracker reports
• Final project compliance report

6.1-2.4 Assumptions:
• HDR CM services will begin in 2024, and span two fiscal year periods. • The EL will coordinate with regulators about the project. The EL will submit documents to regulators.
• The HDR construction manager and inspector (separate from this scope of services) will cooperate with the ECM and support environmental compliance activities while carrying out CM responsibilities. Both the construction manager and ECM will have the power to immediately shut down work for violations of safety and environmental compliance. • The HDR CM team will exercise management oversight over the stormwater responsibilities of the contractor. The CM team will inform the environmental team of the results of the SWPPP inspections. The CM team will issue stop work notices if the SWPPP deficiencies are not addressed in a timely manner. The ECM will not have responsibilities in this regard. The ECM

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will participate in structuring a communication strategy for each project to ensure clear lines of communication. Contractor permit violations, deficiencies, and non-compliance are controlled with inspection monitoring and reporting.
• In the event that the contractor puts the City at risk of impacting sensitive resources because of noncompliance with environmental documentation, specifications and plans, the CM lead inspector will provide the contractor with written notification when the CM team (regarding all contract requirements) or environmental compliance team (regarding the MMRP or SCPs) observes work activities or job conditions that violate requirements of the special provisions.

These noncompliance notifications will be logged into Procore by the inspector and notification will be provided to the ECM team and the City EL. These concerns will be logged and communicated based on the level of urgency for resolution and discussed at weekly project meetings and at QA/QC meetings to ensure that the contractor mitigates previous actions and performs work in a timely manner and in accordance with special provisions. At the ECM’s and/or EL’s direction, a biological monitor may be called to the site if a special-status species is at risk from project activities. HDR will monitor contractor compliance with the project permits, special provisions, and MMRP. The ECM will notify the EL within 1 business day of the discovery of compliance deficiencies with fencing, MMRP restrictions, etc. • These services are not included in this scope1:
• SWPPP oversight: SWPPP field implementation, enforcement, and inspection is a part of the CM contract’s scope of work.
• Noise monitoring, lead and asbestos testing and monitoring, and contaminated-soils monitoring. Under HDR CM contract.

Subconsultant Procurement and Management
HDR obtained qualified, local subconsultants to provide biological, arboricultural, and paleontological construction monitoring to meet environmental compliance requirements set forth by the project’s documentation and specifications. The City will not pay for travel expenses for consultants. All expenses should be included in the professional rate of the employee submitted in the proposal. The elements of the subconsultant environmental services needed as part of this scope of work may include project management, reporting and documentation, preparing and implementing a WEAP, biological resources surveys and construction monitoring, arboricultural surveys and monitoring, PRIMP development, and paleontological -resources monitoring.

Subconsultant Management
The HDR ECM will coordinate with biological, arboricultural, and cultural subcontractors each month as needed via either email or conference call. Coordination includes scheduling, reviewing deliverables (WEAP, datasheets, inspection reports), and project reporting to the City’s EL. This coordination is estimated to take up to 4 hours on average per month for the project up to 18 months during the contract period.

Subtask 6.1-6.1 U4 Tank ECM
The U4 project is located down a 0.25-mile access road from Empire Grade between Heller Drive and Cave Gulch Road (Figure 1; 36.998188, -122.069412; APN: 062-041-49) on University of California Santa Cruz (UCSC) property where the City will obtain an easement. As part of the Work 1 The ECM should have awareness, will track compliance, and may coordinate directly or indirectly with these service lines.

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Agreement, UCSC will inspect stormwater drainage infrastructure improvements. The City proposes to replace the existing U4 Tank including decommissioning and removing the existing U4 Tank, constructing a new in-kind steel 400,000-gallon storage U4 Tank on a new foundation, and making pump control upgrades and fire hardening the roof of Pump Station 6. The project will include protecting water-supply pumps while the main U4 Tank is being replaced by installing a 45,000- gallon maintenance tank; paving two road pullouts along the narrow 0.25-mile access road to allow small fire trucks and other vehicles to turn around; performing maintenance work including replacing fencing and existing drainage infrastructure, installing a new curb and gutter, and minor resurfacing and repairs to the access road once construction is complete; and minor vegetation management for site access. Construction staging will occur at the Tank U4 site, at access road turnouts, and other off-site locations. The U4 Tank project will be funded by a federal loan and a grant from the U.S.

Environmental Protection Agency (EPA).

Construction Compliance Management
To assist the City with environmental compliance and management of biological resources before, during, and after construction, HDR will provide general oversight and management by an ECM. The ECM will be responsible for day-to-day environmental compliance activities, overseeing all environmental field coordination and subcontractors. HDR staff will perform administrative services to monitor and administer subcontracts. The ECM will perform related tasks to monitor mitigation measures and standard construction practices applicable to the project including, but not limited to, pre-construction surveys, environmental awareness training development, monthly compliance reports, oversight of compliance monitoring and subconsultants, and project/contractor coordination, and will provide professional expertise.

The environmental aspects of the project will be managed together with two coordinated levels of oversight including the overall environmental management of the City EL and the compliance oversight and management of the ECM. This scope of work applies to the second level. This scope of work includes the strategy, scoping, and coordination of these services as well as any subcontractor contractual management and oversight to make sure that all necessary work is completed for the project. The ECM should maintain effective communication with the EL as well as documentation of the compliance process through completion of the project. The EL will be responsible for overall environmental compliance and will handle all regulatory coordination, agency engagement, and any changes to the construction contract documents that have potential environmental considerations.

Document Review
The ECM will review documentation and specifications for the project and assist EL with compliance requirements over the contract period. The ECM will review and comment on contractor submittals, RFIs, and change orders as appropriate in Procore and communicate or escalate any potential issues to the EL for resolution.

The ECM will review CEQA/NEPA documents, project designs, and project specifications as required to perform the scope of work. The ECM will identify discrepancies between project requirements and the environmental subconsultant’s final scope of work and recommend modifications and improvements to improve implementation.

The ECM will review the project documentation including permits, references, conditions of project approval, and work requirements. Below is a list of documents that would be furnished by the City for HDR review:
• Divisions 00 and 01 of the construction specifications documents • Notice of Exemption U4 Tank Replacement project

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• U4 project 100 percent plans
• U4 project WIFIA federal loan application, NEPA review documentation (Endangered Species Act [ESA] consultation, biological memorandum, species list, and O&M Habitat Conservation Plan [HCP] measures and standard construction practices and State Historic Preservation Office [SHPO] consultation)
• U4 project Division of Drinking Water [DDW] environmental checklist Documents that have not been prepared yet that will have an impact on the timing of the work are the contractor’s construction schedules and submittals. Submittals will contain the means and methods of accomplishing the work. Submittals will need to be reviewed by the ECM.

Meetings and Site Visits
The ECM will attend weekly meetings with the U4 Tank construction team. Each meeting will be 1 hour long for up to 75 weeks until the project has been completed. The ECM will also attend biweekly meetings with the EL; each will be 30 minutes long and continue until the project has been completed (~38 weeks). Up to 6 additional meeting hours are factored herein to account for any construction delays, issues, or project closeout meetings deemed necessary for a total of 44 weeks of biweekly meetings.

The ECM shall visit the U4 Tank project site monthly for a total of up to 20 visits. Each site visit is estimated to take up to 225 hours. Three additional visits are included to account for any project issues that arise that may require ECM visitation or for pre- or post-project visits.

Compliance Management
The ECM will develop reporting and monitoring schedules to maintain project environmental compliance and will maintain schedules on a monthly basis for the duration of construction. The ECM will coordinate with the City and contractor about upcoming scheduled activities. Reporting will include monthly updates of a MMRP tracker (mitigation and monitoring plan comments log) in a format agreed upon by the City totaling 19 updates. The ECM will upload copies of all documentation to Procore to allow the City’s EL to keep abreast of the issues and progress. As required, subconsultants will map and produce a site plan showing areas monitored and results. This monthly compliance management is assumed to take 1 hour per month. The ECM will work with the EL and construction manager, as necessary, to resolve issues and conflicts or adjust the process as needed. File management, archiving, and related documentation with conflict resolution Each update is assumed to take up to 1 hour per month.

6.1-6.1 Deliverables:
• Project compliance tracking spreadsheet
• Monthly monitoring reports
• Final project compliance report

6.1-6.1 Assumptions:
• The EL will coordinate with regulators about the project. The EL will submit documents to regulators.
• The City’s construction manager and Inspector (separate from this scope of services) will cooperate with the ECM and support environmental compliance activities while carrying out CM responsibilities. Both the construction manager and the ECM will have the power to immediately shutdown work for violations of safety and environmental compliance. • The construction manager will exercise management oversight over the stormwater responsibilities of the contractor. The construction manager will inform the and environmental team the results of the ESCP inspections. The CM team would issue stop work notices if the ESCP deficiencies are not addressed in a timely manner. The ECM would not have

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responsibilities in this regard. The ECM will participate in structuring a communication strategy for each project to ensure clear lines of communication. Contractor permit violations, deficiencies, and noncompliance are controlled with inspection monitoring and reporting. • In the event that the contractor puts the City at risk of impacting sensitive resources because of noncompliance with environmental documentation, specifications, and plans, the CM lead inspector will provide the contractor with written notification when the CM team (regarding all contract requirements) or environmental compliance team (regarding the mitigation measures or SCPs) observes work activities or job conditions that violate requirements of the special provisions. These noncompliance notifications will be logged into Procore by the inspector and notification will be provided to the ECM team and the City EL. These concerns will be logged and communicated based on the level of urgency for resolution and discussed at weekly project meetings and at QA/QC meetings to ensure that the contractor mitigates previous actions and performs work in a timely manner and in accordance with special provisions. At the ECM’s and/or EL’s direction, a biological monitor may be called to the site if a special-status species is at risk from project activities. The construction manager will monitor contractor compliance with the project permits, special provisions, and MMRP. The ECM will notify the EL within 1 business day of the discovery of compliance deficiencies with fencing, mitigation measures, SCP restrictions, etc.
• These services are not included in this scope2:
• Erosion Sediment Control Plan monitoring
• Noise monitoring
• Lead and asbestos testing and monitoring
• Contaminated soils monitoring
Subconsultant Procurement and Management
HDR will obtain qualified, local subconsultants to provide biological construction monitoring to meet environmental compliance requirements set forth by the project’s documentation and specifications.

The elements of the subconsultant environmental services needed as part of this scope of work may include project management, reporting and documentation, preparing and implementing a WEAP, and biological resources surveys and construction monitoring.

Subconsultant Management
The HDR ECM will coordinate with biological subcontractors each month via either email or conference call. Coordination includes scheduling, reviewing deliverables (WEAP, datasheets, inspection reports), and project reporting to the City’s EL. This coordination is estimated to take up to

1.5 hours on average per month for the project up to 20 months during the contract period.

Task 6.1 Assumptions:

1. The estimated LOE for Subtask 6.1-0 (Environmental Advisor/General Environmental Technical Support) assumes 26 hours per month (generally considering 12 hours per month for environmental advisor and 14 hours per month for other general environmental technical support) and includes regular participation in Program, team, and project meetings; Programand project-level discussions; process development/maintenance initiatives with the City’s environmental team; undefined technical support (stormwater, biological resources, cultural resources, hazardous materials, regulatory); and project-level QC reviews of all deliverables. 2 The ECM should have awareness, will track compliance, and may coordinate directly or indirectly with these service lines.

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2. Up to 10 one-day trips are included in the scope either by the environmental advisor or general environmental technical support team members.

3. Per the City’s CEQA Process Review Guidance, QC reviews are anticipated to include the project and alternative descriptions; Notices of Preparation; Administrative Draft Initial Studies/EIR documents; draft final documents; or other document iterations, sections, materials, or supporting studies, as needed.

4. Subtask 6.1-0 includes CEQA and permitting contract reviews.

5. Support for projects that do not have a designated 6.1-X subtask will be provided as general technical support under Subtask 6.1-0.

6. Subtask 6.1-0 includes 2 hours per month (included in Assumption 1 hours) for Clayton Mokri to support the Newell Creek Pipeline project.

7. Environmental compliance management functions are anticipated for the Concrete Tanks, U4 Tanks, Brackney Landslide Risk Reduction and Intertie 1 projects. Any other compliance support needs will be addressed through the contract change/amendment process.

8. The scope of work and LOE for the Concrete Tanks project, including that of subcontractors, are based on negotiations prior to starting the construction phase of the project. This scope of work is intended to encompass what might be performed and the related LOE.

9. Fees for literature reviews, licenses, trainings, permit fees, agency environmental document review fees, or other external expenses will be covered by the City or negotiated separately when the need arises.

10. Environmental support functions assume work from an HDR office other than on-site meetings when needed. No seconded positions are assumed.

11. HDR is not authorized to coordinate directly with permitting or regulatory agencies without taskor project-specific authorization to do so from a City PM or associate planner.

Subtask 6.2: ROW Acquisition
Various Program projects will require permits-to-enter (for planning and design work) and/or ROWs or property purchase (for construction and permanent facilities). HDR will be responsible for:

1. Research and investigation into existing easements and property boundaries

2. Compiling record information

3. Negotiating temporary and permanent easements

4. Coordinating ROW and property acquisitions with City staff

5. Obtaining appraisals and market valuations as required

6. Interfacing with land, facility, or property managers; real-estate agents; brokers; surveyors; and title companies
In FY25, HDR anticipates providing ROW services for the following projects:

Newell Creek Pipeline: Felton–Graham Hill (2.2.1). HDR will support the procurement of temporary and permanent easements. Services for this fiscal year may include:
a. Continuing consideration of acquisition strategies when favorable circumstances for funding, cost mitigation, and environmental compliance develop.
b. Engagement with City staff and property owners/tenants to acquire necessary temporary and permanent easements.

Negotiation of agreements with property owners for use of staging and/or mitigation area(s) for both projects through completion of construction.

Assumptions:

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1. HDR will manage an acquisition subconsultant. Other efforts are not currently budgeted.

Amendments to this scope will be negotiated separately, as needed based on project definition.

Subtask 6.3: Support Communications and Public Outreach Communications and public outreach on the Program generally occur in the following areas:

1. Internal departmental communications: Communications between the Program team and City staff members about Program activities.

2. Management communications: Communications from the Program team to City management staff, the City Council, and the Water Commission. These communications will always flow through City staff, usually the Program Director and the Director of Engineering.

3. Public outreach: External communication to the public at large. This is usually “one-way” in nature (from the Program out to the public) and involves communications with the public about the purpose and progress of the Program. These communications flow through the City communications lead.

4. Stakeholder communications and engagement: External communication to specific members of the public. This is usually “two-way” in nature and involves communicating with specific stakeholders about issues impacting them individually (e.g., a homeowner that we are trying to purchase a pipeline easement from). These communications may involve the PM and/or department directors, but always engage the City communications lead.

Subtask 6.3.1: Ongoing Communications and Public Outreach Support Provide support for communications and public outreach by doing the following:

1. Internal communications: Train new staff on the Communications Guidelines and assessment tool.

2. Management communications: Support the Program Director by preparing memoranda, PowerPoint presentations, graphics, and other support materials for use in communicating with the City Council and Water Commission.

3. Public outreach: Support the City communications lead by preparing text, graphics, and other support materials for use in communicating with the public. Support the preparation of public information documents (e.g., fliers, brochures, posters, frequently asked questions [FAQs]) for use at public meetings/workshops, for uploading to the City’s Water Program and Projects web pages, and participate in those meetings if requested.

Assumptions:

1. 37 hours are allocated for implementing communications and outreach support per Subtask

6.3.1. Subtask 6.4: Salmonoid Habitat Conservation Plan Consultation HDR will assist the City and NMFS/NOAA with the development of a Programmatic Agreement to guide NMFS/NOAA Section 106 regulatory obligations throughout the life of the ASHCP. The PA will identify the nature and need for the PA, consulting parties (both signatory and concurring), and definition of the undertaking’s APE. The PA will also include stipulations that will, minimally, specify time frames and review procedures, Tribal involvement, identifying the APE, historic property identification and evaluation procedures, a process for determining effects, professional qualifications, provisions for inadvertent discoveries and/or unanticipated effects, and a dispute resolution process.

In support of the PA, HDR will also assist NMFS/NOAA with outreach and coordination with the Native American community. HDR will contact the Native American Heritage Commission to request

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their most recent Section 106 consultation list for Santa Cruz County and will prepare PA notification letters on NMFS/NOAA’s behalf to inform local Tribes of the PA process and schedule.

Meetings:

1. Two (2) one-hour internal meeting with NMFS/NOAA, the City, HDR, and other interested parties to discuss the draft PA prior to submittal to SHPO.

2. Two (2) one-hour meeting with SHPO to discuss the draft PA.

Deliverables:

1. Draft and final SHPO Transmittal Letter

2. Draft and final Native American Notification Letters

3. Draft and final Programmatic Agreement
Assumptions:

1. NMFS/NOAA will be the lead federal agency for Section 106 compliance. Consultation with other federal agencies will not be necessary.

2. No more than two internal rounds of review and comment will be necessary.

3. No more than two rounds of review and comment with SHPO will be necessary.

4. Development of a Historic Properties Treatment Plan to resolve adverse effects resulting from the undertaking will not be necessary.

Subtask 6.5: Geotechnical Investigations [not used this service order] Subtask 6.6: Project Funding Assistance [not used this service order] Subtask 6.7: Program Technical Support
Outside of specific technical reviews on projects (covered in Task 2.0: Design and Planning Management), HDR will provide technical expert input on water infrastructure, treatment, and water quality issues, as requested by the City. An allocation of 48 senior-level labor hours has been made in this service order for these as-needed efforts.

38.83 Estimated Work Effort and Fee Estimate
Table 3 - Estimated Work Effort and Fee Estimate (May 2024) City of Santa Cruz
Program Management Services, Service Order 10 — Fiscal Year 25 Program Activities (assumed NTP July 1, 2024) Task
No. Task Description Total HDR Total APC Charge Total HDR Expenses Subs w/ Total Rate Range Labor Hours ($) $5.25 + 5% MU ($) 5% MU ($) Cost ($) SERVICE ORDER 10
Task 2 - Design and Planning Management
Subtotal Task 2 14,990 3,456,961.08 $64,398 $43,890 $0 $3,565,249 Task 3 - Program Administration
Subtotal Task 3 6,478 1,528,498.00 $34,012 $169,636 $0 $1,732,146 Task 4 Planning Efforts
Subtotal Task 4 1,391 336,251.00 $7,146 $4,985 $0 $348,382 Task 5 Construction Management
Subtotal Task 5 6,948 1,830,710.00 $11,582 $248,324 $494,550 $2,585,166 Task 6 Program Support
Subtotal Task 6 1,628 459,045.20 $8,548 $6,828 $598,232 $1,072,653 COLUMN TOTALS (SO10 - Full Scope) 31,435.14 7,611,465.28 $125,685 $473,663 $1,092,782 $9,303,595.76 Exhibit B

38.84 Activity ID Activity Name Dur Start Finish
City of SC City of SCWP 248 01-Jul-24 30-Jun-25
Service O Service Order 10 - z01 - HDR Pro r ject Management Contract 248 01-Jul-24 30-Jun-25 SO10-438260 Notice to Proceed 0 01-Jul-24*Task 2 - Des Task 2 - Design and Planning Management 248 01-Jul-24 30-Jun-25 Sub Task A - Sub Task A - Support Best Value Delivery Methods Implementation 248 01-Jul-24 30-Jun-25 SO10-2A30 Implementation oversight of delivery method contract 248 01-Jul-24 30-Jun-25SO10-2A40 Coordination and/or support of the City's legal department in delivery method use 248 01-Jul-24 30-Jun-25 Sub Task B - Sub Task B - Select Final Design (or other) Consultants 248 01-Jul-24 30-Jun-25 SO10-2B50 City meeting agenda and minutes 248 01-Jul-24 30-Jun-25SO10-2B60 Draft and final design RFP(s) 248 01-Jul-24 30-Jun-25SO10-2B70 Written recommendation for selection of final design consultant 248 01-Jul-24 30-Jun-25SO10-2B80 City Council agenda package (attachments to staff reports) for final design contracts 248 01-Jul-24 30-Jun-25 Sub Task C - Sub Task C - Monitor Project Progress and Changes 248 01-Jul-24 30-Jun-25 SO10-2C50 Meeting agendas, presentations, and minutes from project coordination and review meetings 248 01-Jul-24 30-Jun-25SO10-2C60 Change log entries, as required 248 01-Jul-24 30-Jun-25SO10-2C70 Monthly project status reports 248 01-Jul-24 30-Jun-25SO10-2C80 Permit applications (prepared by others) 248 01-Jul-24 30-Jun-25 Sub Task D - Sub Task D - Technical Review of Deliverables, Plans and Specifications 248 01-Jul-24 30-Jun-25 SO10-2D40 Review Comments at 30%, 60%, 90% and 100% Final Design Completion 248 01-Jul-24 30-Jun-25SO10-2D50 Agenda and Minutes for City O&M Staff Reviews at 60% and 90% Final Design Consultant Submittals 248 01-Jul-24 30-Jun-25SO10-2D60 Spreadsheet to Document and Track Design Review Comments and Actions 248 01-Jul-24 30-Jun-25 Sub Task E - Sub Task E - Facilitate Bidding Process 248 01-Jul-24 30-Jun-25 SO10-2F40 Agenda and Minutes from Pre-Bid Meetings 248 01-Jul-24 30-Jun-25SO10-2F50 Contractor Pre-Qualification Solicitation Documents 248 01-Jul-24 30-Jun-25SO10-2F60 Bid Tabulations 248 01-Jul-24 30-Jun-25 Sub Task F - Sub Task F - Cost Estimating Support 248 01-Jul-24 30-Jun-25 SO10-2H20 Cost Estimate and basis of estimate document 248 01-Jul-24 30-Jun-25 Task 3 - Project Administration 248 01-Jul-24 30-Jun-25 Sub Task 3.1 Sub Task 3.1 - General Program Administration 248 01-Jul-24 30-Jun-25 SO10-438120 Draft and final Service Order scope, fee, and Annual Work Plan 248 01-Jul-24 30-Jun-25SO10-438270 Monthly Program Progress Report 248 01-Jul-24 30-Jun-25SO10-438280 Monthly invoices 248 01-Jul-24 30-Jun-25SO10-438290 Contract change log updates 248 01-Jul-24 30-Jun-25SO10-438300 Staff approval requests, as applicable 248 01-Jul-24 30-Jun-25SO10-438310 Updates to working Program tracking tools, including staff planning spreadsheets, and program improvement log 248 01-Jul-24 30-Jun-25SO10-438320 PgMP updates, as applicable 248 01-Jul-24 30-Jun-25 Sub Task 3.2 Sub Task 3.2 - Risk Management 248 01-Jul-24 30-Jun-25 Risk Register & Tool U e pdates 248 01-Jul-24 30-Jun-25 SO10-438110 Risk Register and Planning Tool updates 248 01-Jul-24 30-Jun-25 Quarterly Risk Reviews s 204 03-Sep-24 30-Jun-25
SO10-438100 Quarterly Risk Reviews (1st Quarter of FY 2024) - Risk Register Update and Risk Review Meeting 20 03-Sep-24 30-Sep-24SO10-438040 Quarterly Risk Reviews (2nd Quarter of FY 2024) - Risk Register Update 20 02-Dec-24 31-Dec-24SO10-438030 Quarterly Risk Reviews (3rd Quarter of FY 2024) - Risk Register Update and Risk Review Meeting 21 03-Mar-25 31-Mar-25SO10-438020 Quarterly Risk Reviews (4th Quarter of FY 2024) - Risk Register Update 20 02-Jun-25 30-Jun-25 Risk Works Risk Workshop(s) 80 30-Oct-24 28-Feb-25
SO10-438090 Program Quantitative Risk Workshop 1 30-Oct-24 30-Oct-24SO10-438010 Program Quantitative Draft Risk Report 34 07-Nov-24 31-Dec-24SO10-437770 Risk Report Meeting 1 30-Jan-25 30-Jan-25SO10-438000 Program Quantitative Draft Final Risk Report 20 31-Jan-25 28-Feb-25 Sub Task 3.3 Sub Task 3.3 - Document Management 248 01-Jul-24 30-Jun-25 SO10-437730 Provide general management and over-sight of the Document Management and SharePoint processes and suppor 248 01-Jul-24 30-Jun-25SO10-438080 Provide ongoing document management support 248 01-Jul-24 30-Jun-25SO10-438230 Provide basic SharePoint administration support 248 01-Jul-24 30-Jun-25SO10-438240 Provide ongoing SharePoint maintenance, configuration and technical support 248 01-Jul-24 30-Jun-25SO10-438250 Support continuous improvements 248 01-Jul-24 30-Jun-25 Sub Task 3.4 Sub Task 3.4 - Training / Workforce Development 248 01-Jul-24 30-Jun-25 SO10-438070 Monthly Refresher Trainings 248 01-Jul-24 30-Jun-25Training Schedule 209 22-Aug-24 26-Jun-25 SO10-437720 Hour Training #1 1 22-Aug-24 22-Aug-24SO10-438130 Hour Training #2 1 24-Oct-24 24-Oct-24SO10-438140 Hour Training #3 1 23-Jan-25 23-Jan-25SO10-438150 Hour Training #4 1 27-Mar-25 27-Mar-25SO10-438330 Hour Training #5 1 24-Apr-25 24-Apr-25 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 2024 2025
CITY of SANTA CRUZ WATER PROGRAM
Capital Improvement Projects
Level 3 - z01 Detail Schedule
Remaining Actual Critical Remaining Work
MilestoneSummaryActual Work
Remaining Work Page 1 of 3 City Program Director: Isidro Rivera HDR Program Manager: Holly Burles
Data Date: 30-Apr-24
Print Date: 14-May-24

38.85 Activity ID Activity Name Dur Start Finish
SO10-438340 Hour Training #6 1 22-May-25 22-May-25SO10-438160 Half Day Training #1 1 26-Jun-25 26-Jun-25 Sub Task 3.5 Sub Task 3.5 - Quality Management 248 01-Jul-24 30-Jun-25 SO10-437780 Updates to the PgMP 248 01-Jul-24 30-Jun-25SO10-438060 Monthly Quality Reports 248 01-Jul-24 30-Jun-25SO10-438220 Quality Review and Report #1 22 01-Oct-24 31-Oct-24SO10-438350 Quality Review and Report #2 19 03-Feb-25 28-Feb-25SO10-438360 Quality Review and Report #3 20 02-Jun-25 30-Jun-25 Sub Task 3.6 Sub Task 3.6 - Program Controls 248 01-Jul-24 30-Jun-25 Task 3.6.1 - Task 3.6.1 - Program General Management 248 01-Jul-24 30-Jun-25 SO10-438370 Program Meetings 248 01-Jul-24 30-Jun-25SO10-438380 Program Director and Program Manager Support 248 01-Jul-24 30-Jun-25SO10-438390 Participate in and provide training for various Program processes and tools 248 01-Jul-24 30-Jun-25 Task 3.6.2 - Task 3.6.2 - Program Schedule 248 01-Jul-24 30-Jun-25 SO10-437830 Updated Monthly Schedules 248 01-Jul-24 30-Jun-25SO10-437960 Updated Scheduling Processes, Tools as part of PgMP updates 248 01-Jul-24 30-Jun-25 Task 3.6.3 - Task 3.6.3 - Program Cost / Estimating 248 01-Jul-24 30-Jun-25 SO10-437810 Monthly Dashboards posted to Sharepoint, and a Cost Performance Report 248 01-Jul-24 30-Jun-25SO10-437820 Updated Cost and Estimating Processes and Tools as part of the PgMP 248 01-Jul-24 30-Jun-25 Task 3.6.4 - Task 3.6.4 - Program Change Management 248 01-Jul-24 30-Jun-25 SO10-437790 Updates to Section 2 (Change Management) of the PgMP 248 01-Jul-24 30-Jun-25SO10-437800 Coordinate with PMs to prepare and submit proposed changes 248 01-Jul-24 30-Jun-25 Task 3.7 - W Task 3.7 - Water Finance / Accountin a g Support to the Water Department 248 01-Jul-24 30-Jun-25 SO10-437950 Water Finance / Accounting Support to the Water Department 248 01-Jul-24 30-Jun-25 Task 3.8 - De Task 3.8 - Design Drawing Review Software 248 01-Jul-24 30-Jun-25 SO10-437980 Project support for projects moving into design 248 01-Jul-24 30-Jun-25SO10-437990 Updated Program Documents 248 01-Jul-24 30-Jun-25SO10-438050 Program Refresher 1 24-Apr-25 24-Apr-25 Task 4 - Pla Task 4 - Planning and Preliminary Engineering 248 01-Jul-24 30-Jun-25 Task 4.1 - Pl Task 4.1 - Planning Efforts 224 01-Jul-24 23-May-25 Task 4.1.6 - Task 4.1.6 - Distribution S D ystem Water Quality 224 01-Jul-24 23-May-25 SO10-438500 Draft Distribution System Water Quality Improvements TM 124 01-Jul-24 31-Dec-24SO10-438610 City Review of Draft TM 20 02-Jan-25 30-Jan-25SO10-438170 Final Distribution System Water Quality Improvements TM 20 31-Jan-25 28-Feb-25SO10-438490 Draft Design Services Solicitation Package 20 03-Mar-25 28-Mar-25SO10-438620 City Review of Draft Solicitation Package 20 31-Mar-25 25-Apr-25SO10-438180 Final Design Services Solicitation Package 20 28-Apr-25 23-May-25 Task 4.1.20 Task 4.1.20 - Program Maturity 127 01-Jul-24 06-Jan-25 SO10-438200 Prepare Phase 1 Draft Program Maturity Report 20 01-Jul-24 29-Jul-24SO10-438210 Phase 1 Work Sessions with Interview Teams 10 30-Jul-24 12-Aug-24SO10-438770 Prepare Phase 1 Final Program Maturity Report 20 13-Aug-24 10-Sep-24SO10-438780 Virtual Presentation Summarizing the Phase 1 Final Program Maturity Report 1 18-Sep-24 18-Sep-24SO10-438790 Phase 2 Work Sessions with Interview Teams 10 18-Oct-24 31-Oct-24SO10-438800 Prepare Phase 2 Draft Program Maturity Report 20 01-Nov-24 03-Dec-24SO10-438810 Virtual Presentation Summarizing Phase 2 Recommendations and Roadmap 1 11-Dec-24 11-Dec-24SO10-438820 Finalize Program Maturity Assessment 15 12-Dec-24 06-Jan-25 Task 4.3 - A Task 4.3 - Asset Mana s gement 248 01-Jul-24 30-Jun-25 Task 4.3.6 - Task 4.3.6 - Asset On-boardin A g Support 248 01-Jul-24 30-Jun-25 SO10-437970 Training materials for asset on-boarding for each project 248 01-Jul-24 30-Jun-25Projects In Des Projects In Design 133 01-Jul-24 14-Jan-25 SO10-438430 4.4 - GHWTP Facility Improvements Project 133 01-Jul-24 14-Jan-25SO10-438600 3.3.1 - ASR Mid County Existing Infrastructure 64 01-Jul-24 30-Sep-24 Projects in Con Projects in Construction 248 01-Jul-24 30-Jun-25 SO10-438420 4.3 - GHWTP Concrete Tanks Project 225 01-Jul-24 27-May-25SO10-438440 4.7 - Beltz 12 Well Ammonia (Phase II) 136 01-Jul-24 17-Jan-25SO10-438650 6.1 - University Tank No. 4 Rehab/Replacement 248 01-Jul-24 30-Jun-25SO10-438590 2.4 - Intertie 1 - Santa Cruz-Scotts Valley 217 14-Aug-24 30-Jun-25SO10-438580 2.2.3 - Brackney Landslide Area Pipeline Risk Reduction 146 26-Nov-24 30-Jun-25SO10-438480 2.2.1 - Newell Creek Pipeline Felton/Grapham Hill 135 13-Dec-24 30-Jun-25SO10-438640 4.4 - GHWTP Facility Improvements Project 28 20-May-25 30-Jun-25 Task 4.3.7 - Task 4.3.7 - Computerized Maintenance Management System Implementation Support 64 01-Jul-24 30-Sep-24 Task 4.3.7.9 - Task 4.3.7.9 - CityWorks Implementation for Meter Shop 64 01-Jul-24 30-Sep-24 SO10-438760 Coodination with Meter Shop 64 01-Jul-24 30-Sep-24 Task 4.7 - Be Task 4.7 - Beltz 12 Ammonia Remova l l 248 01-Jul-24 30-Jun-25 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 2024 2025
CITY of SANTA CRUZ WATER PROGRAM
Capital Improvement Projects
Level 3 - z01 Detail Schedule
Remaining Actual Critical Remaining Work
MilestoneSummaryActual Work
Remaining Work Page 2 of 3 City Program Director: Isidro Rivera HDR Program Manager: Holly Burles
Data Date: 30-Apr-24
Print Date: 14-May-24

38.86 Activity ID Activity Name Dur Start Finish
SO10-438400 Task 1 - PM and QA/QC 248 01-Jul-24 30-Jun-25SO10-438470 Task 5 - Engineering Services During Construction (Phase II - Process Improvement) 248 01-Jul-24 30-Jun-25 Task 4.6.1 - Task 4.6.1 - Universit U y Tank No. 4 Rehab / Replacement 248 01-Jul-24 30-Jun-25 SO10-438630 Engineering Services During Construction 248 01-Jul-24 30-Jun-25 Task 5 - Co Task 5 - Construction Mana n gement 248 01-Jul-24 30-Jun-25

5.0. General 5.0. General Construction Mana C gement Oversight 248 01-Jul-24 30-Jun-25 SO10-437940 General Construction Management Oversight 248 01-Jul-24 30-Jun-25 CM Support CM Support 248 01-Jul-24 30-Jun-25
SO10-438520 2.2.3 - Brackney Landslide Area Risk Reduction CM Support 248 01-Jul-24 30-Jun-25SO10-438530 2.4 - Intertie 1 - Santa Cruz-Scotts Valley CM Support 248 01-Jul-24 30-Jun-25SO10-438540 4.3 - GHWTP Concrete Tanks Replacement CM Support 248 01-Jul-24 30-Jun-25SO10-438550 4.7 - Beltz 12 Well Ammonia Removal CM Support 111 01-Jul-24 10-Dec-24SO10-438560 6.1 - U4 Tank Rehab/Replacement CM Support 248 01-Jul-24 30-Jun-25SO10-438510 2.2.1 - Newell Creek Pipeline Felton/Graham Hill CM Support 198 11-Sep-24 30-Jun-25SO10-438710 3.3.1 - ASR Mid County Existing Infrastructure 184 01-Oct-24 30-Jun-25SO10-438720 4.4 - GHWTP Facility Improvements Project 164 30-Oct-24 30-Jun-25 Task 6 - Program Support 248 01-Jul-24 30-Jun-25
Task 6.1 - En Task 6.1 - Environmental Advisory, Compliance and Technical Support 248 01-Jul-24 30-Jun-25 SO10-437890 Environmental Advisory/General Environmental Support 248 01-Jul-24 30-Jun-25Environmen Environmental Support 248 01-Jul-24 30-Jun-25 SO10-437740 1.5 - Newell Creek Inlet/Outlet Dame Restoration Projects 248 01-Jul-24 30-Jun-25SO10-437880 4.3 - GHTWP Concrete Tanks Compliance Management 248 01-Jul-24 30-Jun-25SO10-438460 2.2.3 - Brackney Landslide Area Pipeline Risk Reduction Compliance Management 248 01-Jul-24 30-Jun-25SO10-438730 2.4 - Intertie 1 - Santa Cruz-Scotts Valley Compliance Management 248 01-Jul-24 30-Jun-25SO10-438740 4.4 - GHWTP Facilities Improvements Project Environmental Support 248 01-Jul-24 30-Jun-25SO10-438750 6.1 - U4 Tank Rehab/Replacement Support 248 01-Jul-24 30-Jun-25 Task 6.2 - R Task 6.2 - ROW Acquisition Support 124 01-Jul-24 31-Dec-24 SO10-437900 2.2.1 - Newell Creek Pipeline Felton/Graham Hill ROW 124 01-Jul-24 31-Dec-24SO10-438570 2.2.3 - Newell Creek Pipeline Brackney ROW 124 01-Jul-24 31-Dec-24 Task 6.3 - Support Communications and Public Outreach 248 01-Jul-24 30-Jun-25 SO10-437910 Ongoing Communications and Public Outreach 248 01-Jul-24 30-Jun-25 Task 6.7 - Pr Task 6.7 - Program Technical Support 248 01-Jul-24 30-Jun-25 SO10-437920 Program Technical Support 248 01-Jul-24 30-Jun-25 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 2024 2025
CITY of SANTA CRUZ WATER PROGRAM
Capital Improvement Projects
Level 3 - z01 Detail Schedule
Remaining Actual Critical Remaining Work
MilestoneSummaryActual Work
Remaining Work Page 3 of 3 City Program Director: Isidro Rivera HDR Program Manager: Holly Burles
Data Date: 30-Apr-24
Print Date: 14-May-24

38.87 5/31/2024 Fiscal Year 2025 Annual Work Plan 1 of 15 Fiscal Year 2025-Annual Work Plan
Santa Cruz Water Program
Introduction
The City of Santa Cruz’s Water Department is implementing the Santa Cruz Water Program (Program) to address a number of critical needs for backbone infrastructure rehabilitation or replacement and to develop supplemental supply that would improve the reliability of the Santa Cruz water system. In the fall of 2017, the Water Department selected HDR to provide program management services to support implementation of the Program, and in December 2017, The City Council approved a five-year Master Services Agreement that is the basis for developing specific task or service orders. The Master Services Agreement was renewed for another five years as of July 1, 2022. This Annual Work Plan (AWP) summarizes Service Order 10 and covers HDR’s anticipated program management activities, staffing, schedule, and fees in fiscal year 2025 (FY 2025), which covers the period of July 1, 2024 to June 30, 2025.

Overview of Work Performed during FY 2024
Over the past fiscal year, the Program team of City and HDR staff engaged in Program implementation in the areas of design and planning project management, program administration and controls, planning and preliminary engineering, construction management, and other program support areas such as environmental and right of way services. Table 1 summarizes the Program wide, and project level activities for fiscal year 2024.

Table 1 – Project Work Completed (Fiscal Year 2024)
No. Projects Phase Key Work Completed

1.3.1 Tait Diversion Rehab /
Replacement Project
Planning  Completed project definition
 Completed Climate Adaptation Plan
 Completed Regulatory Outreach Memo

1.5 Newell Creek Dam Inlet/Outlet
Replacement Project
Closeout  Substantial completion of construction
 Completed Tunnel Portal construction and
excavation
 Completed testing and commissioning
 Completed outlet structure construction
 Punchlist near completion
 Initiated environmental mitigation
 Completed record drawings

2.2.1 Newell Creek Pipeline -
Felton/Graham Hill
Design  Completed preparation of bid documents
 Obtained RWQCB 401 review and final issuance
 Submitted draft LSAA Issuance
 Completed ROW negotiations
 Completed draft RFP for CM services

2.2.3 Brackney Landslide Area
Pipeline Risk Reduction
Design  Completed grant modification request for Phase 2 budget
 Completed draft bid documents
 Completed EIR addendum
 Completed tribal, USFW, NMFS, SHPO
consultations
 Completed ROW negotiations
 Created shortlist of HDD contractors
 Completed CM proposal negotiations

38.88 5/31/2024 Fiscal Year 2025 Annual Work Plan 2 of 15 No. Projects Phase Key Work Completed
 Completed Environmental Compliance Services
Procurement

2.4 Intertie 1 – Santa Cruz-Scotts
Valley
Design  Obtained authorization to bid and award
 Obtained council approval of project CEQA
 Obtained council authorization for ROW purchase
 Posted project for bid
 Completed CM proposal negotiations
 Completed Environmental Compliance Services
Procurement

3.1 Water Supply Augmentation Planning  Finalized Technical Memorandum 1 Data Gap Analyses and Optimization Approach
 Pure Water Soquel Groundwater Replenishment
Reuse Project approved by the Central Coast
Regional Water Quality Control Board
 Completed Groundwater modeling for SGMA MidCounty Groundwater Agency Optimization Study

3.3 ASR Mid County Planning and Design  Completed Beltz 9 ASR pilot setup  Completed Cycle 1, 2 and 3 of Beltz 9 pilot testing
 Completed 30% and 60% designs for Beltz 12 and
Beltz 8 ASR conversions
 Summary of Operations Reports for Beltz 8 & 12
ASR Demonstration Studies
 Initiated DDW permit amendment process
 Initiated RWQCB permanent ASR permitting
process

4.3 Graham Hill WTP Concrete
Tanks
Construction  Completed the construction of
o Site work
o Solids Storage Tank
o Electrical Building
o Reclaim Tank
o Wash Water Supply Pump Station
o Electrical Work
o Reclaim and Decant Pump Station
 Completed DDW design review

4.4 Graham Hill WTP Upgrades
(Facility Improvements Project)
Design  Submitted WIFIA funding full application
 Completed 60% and 90% packages including cost
estimates
 Prepared construction sequencing plan
 Prepared and released draft EIR
 Finalized EIR with public comments
 Initiated City and DDW permit applications

4.5 Riverbank Filtration Study Planning  Completed BCE study of alternatives

4.7 Beltz 12 Well Ammonia
Treatment
Design, Construction Phase 1 (Pressure Contact Vessel):
 Completed construction and testing
 Completed construction
Phase 2 (Chlorination System):
 Completed design of Phase 2
 Posted project to bid

4.8 Beltz Water Treatment Plant
Upgrades
Design  Completed Groundwater Alternatives Tech Memo
 Completed ASR Alternatives Tech Memo

38.89 5/31/2024 Fiscal Year 2025 Annual Work Plan 3 of 15 No. Projects Phase Key Work Completed
 Initiated procurement for design of selected
alternative
 Explored alternative delivery methods to maintain
City’s treatment capacity

5.2 Meter Replacement Construction  On-going efforts to complete installations by City staff

6.1 University Tank No. 4 Rehab /
Replacement
Design  Completed final design
 Received final Notice of Exemption
 Received authorization to bid and award
 Posted project to bid
 Initiated environmental monitoring activities
B40 Branciforte Creek Restoration
Project
Design  Completed 90% and 100% design
 Submitted environmental permit applications
ECIP.301 Felton Diversion Emergency
Pipeline Replacement
Completed  Completed design and construction of pipeline replacement after flooding emergency
N/A Asset Management Planning  Completed implementation of new Computerized Maintenance Management System
(CMMS) software with Centricity/Cityworks
 Started planning for the Meter Shop Cityworks
implementation
 Working with the project teams for Beltz 8 & 12,
Concrete Tanks, FIP, and Newell Creek I/O to
capture asset data for configuration in Cityworks.

N/A Program Wide Items All / Ongoing  Risk Management: quarterly program risk reviews; risk quantification workshop and
annual update to risk quantification model
 Quality Management: triennial reviews and
reports
 Monthly Program reporting
 Updates to Program Management Plan
o Project Delivery Model
o Change Management
o Business Case Evaluation (BCE) Format
o O&M Coordination
o Program Controls Plan - IT Approach
o Program Controls Plan – Invoice Review
o Program Controls Plan – Progress
Reporting and Annual Workplan
o Quality Management Plan
o Training and Workforce Development
Plan
o Design Management Guidelines
o Cost Estimating Guidelines
o Communications and Public Outreach
Plan
o Environmental Program Management
 Workforce development trainings including
Change Management, Communication
Training, Cost Estimating, and Front-end
Specification Preparation
 Maintained program progress while supporting
Water Department leadership transitions

38.90 5/31/2024 Fiscal Year 2025 Annual Work Plan 4 of 15 No. Projects Phase Key Work Completed
 Continued implementation of O&M Liaison role
to support treatment projects and balance
operations resource limitations
 Program controls implementation: monthly
schedule updates and master format
enhancement, cost management system updates
with monthly reporting, document management,
finance team support of fiscal year budgeting
 Implemented program schedule improvements
 “Regulator Roadshow” engagement to maintain
collaborative communication on upcoming
projects and reviews
 Review and update the Program Escalation
Factor
 Document management maintenance; initiated
MS365 user integration
 Program safety reporting
 Design Review (Bluebeam) software training for
FIP

38.91 5/31/2024 Fiscal Year 2025 Annual Work Plan 5 of 15 Photo 1: GHTWP Facility Improvements - Design-Builder
System Integration Team Site Visit
Photo 2: Brackney Landslide - Survey point for geotechnical investigation work near geotechnical monitoring well
Photo 3: Beltz 12 Well - New Chemical Injection Point Added Downstream of Filter
Photo 4: Beltz 12 Well - Contact Tank Successfully Set on Concrete Pad

38.92 5/31/2024 Fiscal Year 2025 Annual Work Plan 6 of 15 Photo 5: Newell Creek Dam Inlet/Outlet Replacement –
Placing Type 2 RipRap at Ephemeral Creek
Photo 6: Newell Creek Dam Inlet/Outlet Replacement – LWD - Instream log placement
Photo 7: Newell Creek Dam Inlet/Outlet Replacement –
Decompaction for staging area 1 hydroseeding
Photo 9: Newell Creek Dam Inlet/Outlet Replacement –
Completion of asphalt paving at dam road
Photo 8: Newell Creek Dam Inlet/Outlet Replacement –
Hydroseeding at spoils pile staging area 5
Photo 10: Newell Creek Dam Inlet/Outlet Replacement –
Exterior Coating surface pipe

38.93 5/31/2024 Fiscal Year 2025 Annual Work Plan 7 of 15 Photo 11: GHWTP Concrete Tanks Replacement – Installation of the mixer pumps inside the Reclaim tank
Photo 12: GHWTP Concrete Tanks Replacement – Installing platform around the Solids tank and stairway
around the Reclaim tank
Photo 13: Graham Hill WTP Concrete Tanks Replacement – Cupertino Electric pulling wires for the scraper at the Solids tank

38.94 5/31/2024 Fiscal Year 2025 Annual Work Plan 8 of 15 Photo 14: GHWTP Concrete Tanks Replacement - Installing stairway at Reclaim Tank
Photo 15: GHWTP Concrete Tanks Replacement - Electricians pulling wires and terminating in the Solid Pumps Station Photo 16: GHWTP Concrete Tanks Replacement - Demolition of the existing filtered water tank slab (1 of 2)
Photo 18: GHWTP Concrete Tanks Replacement - Excavation of the last section of the soil nail wall.

Photo 17: GHWTP Concrete Tanks Replacement - Demolition of the existing filtered water tank slab (2 of 2)
Photo 19: GHWTP Concrete Tanks Replacement - Installation of the 12-inch drain line

38.95 5/31/2024 Fiscal Year 2025 Annual Work Plan 9 of 15 Photo 20: Felton Diversion Pipeline 2023 Emergency Repairs - Digging keyway trench under water table
Photo 21: Felton Diversion Pipeline 2023 Emergency Repairs - Installing rock for the keyway
Photo 22: Felton Diversion Pipeline 2023 Emergency Repairs - Excavated keyway and sloped bank
Photo 23: Felton Diversion Pipeline 2023 Emergency Repairs - Placing 2-ton RSP rock and Sono tubes cover
Photo 24: Felton Diversion Pipeline 2023 Emergency Repairs - Hydroseeding at the top of the keyway

38.96 5/31/2024 Fiscal Year 2025 Annual Work Plan 10 of 15 Overview of Planned Work during FY 2025
During FY 2025, the Santa Cruz Water Program team of City and HDR staff will continue to implement the Program Management Plan, an organizational framework with processes for managing and staffing individual capital projects that are at different stages of development. During FY 2025, projects will continue to progress from planning into design and from design into construction and through the construction phase. Table 2 lists the Program projects starting or ongoing in FY 2025 and divides them into their particular phase(s) of work: Planning Projects, Projects in Design and Projects in Construction.

Table 2 –Program and Project Work Planned by Phasea
(Fiscal Year 2025)
Program Wide
 Risk management: quarterly reviews,
risk model update
 Technical expert support and
deliverable reviews
 Quality management implementation
 Design Review software
implementation – ongoing support
 Monthly Program reporting
 Program controls implementation:
schedule, cost, change management
 Document management
 Department finance support
 Program CM Oversight
 Program Environmental Advisory
 General electrical staff support
 Program O&M Liaison
 Workforce development trainings
 Asset Management (Asset
Onboarding and CMMS
Implementation support)
 Right of Way support
 Constructability reviews
Planning Projects Projects in Design Projects in Construction

3.1 - Water Supply Augmentation

3.3 - Aquifer Storage & Recovery Planning

4. 1.6 - Distribution System Water Quality
Improvements

4.5 - River Bank Filtration Study

2.2.1- Newell Creek Pipeline Rehab/
Replacement (Felton/Graham Hill)

2.2.3 - Brackney Landslide Area Pipeline
Risk Reduction

3.3.1 - ASR Mid County Existing
Infrastructure

3.3 - Aquifer Storage & Recovery Planning

4.4 - Graham Hill WTP Facilities
Improvement Project

4.8 - Beltz Water Treatment Plant
Upgrades

2.2.1- Newell Creek Pipeline Rehab/
Replacement (Felton/Graham Hill)

2.2.3 - Brackney Landslide Area Pipeline
Risk Reduction

2.4 – Intertie 1 – Santa Cruz-Scotts Valley

3.3.1 - ASR Mid County Existing
Infrastructure

4.3 - Graham Hill WTP Concrete Tanks

4.4 - Graham Hill WTP Facilities
Improvement Project

4.7 – Beltz 12 Ammonia Removal (Phase
2)

4.8 - Beltz Water Treatment Plant
Upgrades

6.1 – University Tank No. 4 Rehab /
Replacement
a) Projects may be shown twice if they transition between phases, for example from design to construction.

This AWP includes a wide range of services focused on progressing each of the projects forward. Table 3 summarizes the types of services for each of the three categories of services that HDR will be providing during FY 2025 as part of Service Order 10.

38.97 5/31/2024 Fiscal Year 2025 Annual Work Plan 11 of 15 Table 3 –Types of Services for each Project Phase (Fiscal Year 2025) HDR Planning Services HDR Design Management Services HDR Construction Services  Review and document existing
information and identify data gaps.
 Conduct planning level studies to
define technical feasibility and cost.
 Prepare reports, presentations, and
briefing materials to support
decision making processes and stage
gate meeting approvals.
 Develop implementation and
sequencing plans and schedules for
recommendations.
 Facilitate planning meetings and
workshops for Water Department
Staff to discuss alternatives and
coordinate with stakeholders.
 Perform/support business case
evaluations and document
recommendations.
 Support Water Department Staff in
the update and calibration of
hydraulic models.
 Perform infrastructure condition
assessments to support planning.
 Assist the Department in financial
analysis associated with program
funding efforts
 Support the Department’s
implementation of asset
management system onboarding for
capital projects.
 Augment the city staff by providing
PMs, and project engineers for
various projects including: Water
Supply Augmentation including ASR
planning.
 Assist in reviewing of planning
consultant deliverables
 Provide environmental advisory
support, program-wide
 Provide discipline specific support
including: general electrical
engineering, operations specialist,
structural, geotechnical,
environmental staff augmentation
support.
 Support PMs in management of
consultants and alignment with
program reporting and processes.
 Support implementation of design
management and cost estimating
guidelines.
 Augment the City staff by providing
PMs and/or project engineers for
various projects including: GHWTP
Facility Improvement Project,
Newell Creek Pipeline
Felton/Graham Hill, and Brackney
Landslide Risk Reduction.
 Assist in reviewing consultant
deliverables and conducting cost
estimating reviews, as requested.
 Support ROW acquisition activities
(Newell Creek Pipeline projects
(Felton/Graham Hill, Brackney),
ASR).
 Provide environmental compliance
management services
 Assist with other environmental
technical support, including CEQA,
NEPA, technical study, field surveys,
or permit application.
 Support Department Staff in the
development and implementation
of communications and community
engagement plans.
 Provide technical expert input as
requested.
 Support ongoing implementation
and use of collaborative design
review software on projects.
 Provide Construction Management
lead.
 Implement Program Construction
Management Guidelines
 Implement Construction
Management software for new
construction projects.
 Augment the City staff by providing
PMs and/or project engineers for
construction phase projects including:

Newell Creek Dam Inlet/Outlet
Pipeline, Newell Creek Pipeline
Felton/Graham Hill, U4 Tank Project,
Brackney Landslide Risk Reduction,
Belt 12 Ammonia Removal, Intertie 1,
and Concrete Tanks Replacement.
 Provide project manager, project
engineer, construction management
resident engineer, document
manager, lead or special inspector(s),
as required, for the GHWTP Concrete
Tanks project, U4 Tank Project,
Brackney Landslide Risk Reduction
and Intertie 1.
 Provide post construction start-up
commissioning and operations
support.
 Provide monthly Program reporting of
CM activities.
 Provide workforce development
training in areas of Construction
Management
 Assist with environmental mitigation,
monitoring and/or procurement of
such services.

Figure 1 shows the schedule of activities planned for each project, with work broken down into several phases: planning, design, bidding, construction, and project close out.

38.98 6/3/202431/2024 FY 2025 Annual Work Plan 12 of 15 `
Figure 1: Santa Cruz Water Program Master Program Schedule

38.99 6/3/20245/31/2024 FY 2025 Annual Work Plan 13 of 15 Staffing
The major resources being provided through the HDR Program Management Contract involves staffing services. These services are necessary because, on average, the Water Department’s annual capital program expenditures are rising nearly five-fold over spending levels during the last decade. The Water Department’s Engineering Section currently includes around 12 full time equivalent (FTE) positions supporting the capital program in various capacities, including vacant engineering positions. The staffing analysis completed in 2018 during the Program Validation effort estimated total staffing needs required to manage and support the Program projects in peak years at 20 FTEs. Staff augmentation for project management (including project managers, engineers, environmental leads, but not including program administration or construction management, for example) is estimated at 8.71 FTEs for FY25.

The staffing augmentation plan for FY25 was developed to support the implementation plans and schedules for each Program project. The staffing plan integrates the Water Department’s available staff in Engineering and Operations and Maintenance and supplements resource needs with compatible HDR staff. A key focus of both City and HDR administrative and operating personnel who are part of the Program is the consistent and efficient delivery of project from planning through construction, while maintaining the Department’s ability to produce and deliver a reliable supply of high quality drinking water to its customers throughout project construction. Achieving this goal requires ongoing planning and coordination by all members of the team.

Part of the ongoing work on the Program to date has been to identify, integrate, and maintain HDR Program team members. Table 4 identifies HDR key staff in each of the three major Service Order 10 work areas.

Table 4 – Key HDR Staffing for Planned Program Management Services (Fiscal Year 2025) HDR Planning Services HDR Design
Management Services
HDR Construction Services
Allan Scott
Kristine Shaw
Jillian Brown
Lock Kwan
Ray Genato
Trishna Patel
Darren Thompson
Alex Johnson
Greg Bradshaw
Donald Champenois
Phoenix Nguyen
Brian Watanabe
Yihan Zhang
Arista Wu
Jillian Brown
Ray Genato
Pierre Gouley
Allison McReynolds
Ron Perkins
Roger Hatton
Pierre Gouley
Sandie Goings
Scott Joslyn
Sifang Shan
Lock Kwan
Eric Yao
Edwin Zadeh
Ajmal Khan Shams
Yihan Zhang
Morgan DeAngelis
Arista Wu
Danielle Tannourji
Ongoing Program management and administration will be led by Holly Burles (Program Manager), Sifang Shan (Deputy Program Manager), Molly Owens (Controls Manager), and Sandie Goings (Document Management). Implementation of the Santa Cruz Water Program also involves a range of ongoing administrative and quality control services including, for example:
 Monthly progress reporting including cost and schedule tracking, risk management and quality assurance;  Document management and SharePoint site maintenance and updates; and  Application and updates to the Program Management Plan, implementation of the program health and safety plan.

38.100
6/3/20245/31/2024 FY 2025 Annual Work Plan 14 of 15
All personnel to support the Program are identified in writing and authorized by the City’s Program Director. The personnel and labor hours for the FY 2025 Work Plan represent the Program Team’s best understanding of the strategic, technical, and administrative requirements for delivering the planned services. Actual requirements may vary and the City and HDR will work together to adjust the staffing and distribution of labor hours within this AWP to maintain progress toward delivery of the Program.

Estimated Fees
Table 5 presents the FY 2025 HDR fees for services for the work to be done on each project during the coming year. The fee estimate is also presented by task and total hours as an attachment to Contract Amendment 2025-01.

Table 5 –Project Budget and Associated HDR Fee
# Project
HDR FY25
Service Order
Budget
Planning Design Bid Construction

1.5 Newell Creek Dam Inlet-Outlet Pipeline Replacement
Project 24,273

2.2.1 Newell Creek Pipeline Rehab/Replacement – Felton / Graham Hill 394,246 X X

2.2.3 Newell Creek Pipeline – Brackney Landslide Area
Pipeline Risk Reduction 1,089,929 X X

2.4 Intertie 1 – Santa Cruz-Scotts Valley 1,044,853 X X

3.1 Water Supply Augmentation a 485,200 X X X X

4.3 Graham Hill WTP Concrete Tanks Project 1,770,974 X

4.4 Graham Hill WTP Facility Improvements Project 1,410,684 X X X

4.7 Beltz 12 Well Ammonia Removal 117,397 X X

4.8 Beltz Water Treatment Plant Upgrades 120,237 X X X

6.1 University Tank No. 4 Rehab/Replacement 308,458 X X B40 Branciforte Creek Restoration 41,341 X
N/A Asset Management: On Boarding and Computerized
Maintenance Mgt. System Implementation Support 147,706 X

4.1.6 Distribution System Water Quality Improvements 81,458 X N/A Program Administration b 1,696,395
N/A Other Program-Wide Work c 570,446
Total HDR FY25 Service Order 10 Budget 9,303,596
a Includes planning support for all Water Supply Planning projects, including Recycled Water Feasibility (3.2), and ASR Planning (3.3) b Includes General Program Administration, Construction Management information system procurement, Risk Management, Document Management, Procurement & Contract Administration Implementation support, SH&E Plan documentation, Quality Assurance Implementation, Project Delivery Model Implementation, Program Controls (Schedule, Cost Management, Program Monthly Report), Annual Work Plan, Workforce Development Trainings, Program staffing and resource management, Invoice preparation. c Includes Staff Augmentation (Planning & Design Management, Project Management, Project Engineering support, Environmental Leads, Environmental Advisory, Electrical support, Operations support), Design Review Software Implementation, General Construction Management oversight, , Communication & Public Outreach, As-Needed project support not included in CIP, Project Funding, and Program Technical (general).

38.101
6/3/20245/31/2024 FY 2025 Annual Work Plan 15 of 15
Funding Source:

Funding for all activities planned as part of Service Order 10, including the program management fee, is included in the Water Department’s FY 2025 Capital Investment Program. Additional work planned for FY 2025 includes continuation of minimal activities pre-authorized and funded within the prior Service Order 9. As many of the projects included in Water Program are large and will occur over multiple years, the Department developed the 2021 Long Range Financial Plan to identify the steps needed to fund these investments in rehabilitating or replacing existing water system infrastructure and developing a supplemental supply to improve the reliability of the Santa Cruz water system. That plan was approved by the City Council on April 6, 2021 and is guiding the Department’s approach to planning for and funding this more than decade long capital reinvestment cycle.

The Water Department executed low-interest loans through the State Revolving Fund (SRF) for: Newell Creek Inlet/Outlet and Concrete Tanks, and is in progress on loans for: FIP and Newell Creek Pipeline. The Department also submitted the Water Infrastructure Finance and Innovation Act (WIFIA) loan application and received approval for projects: Newel Creek Pipeline, FIP, ASR and U4. Both the State (SRF) and Federal (WIFIA) loan programs reimburse for design, construction, and program management costs-to implement projects. Intertie has obtained a DWR grant through Scotts Valley Water District. Additionally, the City is awaiting approval of a FEMA Hazard Mitigation Program grant funding for the Brackney project, and has secured Sustainable Groundwater management Act (SGMA) grant funding for the groundwater basin ASR projects. The City continues to seek grant opportunities for the program.

38.102
ORDINANCE NO. 2024-10
AN ORDINANCE OF THE CITY OF SANTA CRUZ ADDING CHAPTER 6.110 - 6.110.070 ENTITLED “PROHIBITION OF GASOLINE-POWERED LEAF BLOWERS’ TO TITLE SIX

HEALTH AND SANITATION OF THE CITY OF SANTA CRUZ MUNICIPAL CODE WHEREAS, in February 2000, the California Air Resources Board (CARB) submitted a report to the California Legislature describing the health and environmental impacts of gasolinepowered leaf blowers; and WHEREAS, the CARB report presents strong evidence suggesting the use of gasolinepowered leaf blowers can have significant adverse effects on the overall health, safety, and wellbeing of residents and landscapers; and WHEREAS, various studies have found that gas-powered leaf blowers release significant amounts of carbon emissions into the air each year; and WHEREAS, the Intergovernmental Panel on Climate Change (IPCC) identifies carbon emissions as a primary driver of global warming and human caused climate change; and WHEREAS, as of January 1, 2024, State of California AB 1346 prohibited the sale of new gasoline-powered leaf blowers (among other small off-road engines) but leaves it to localities to regulate their continued use; and
WHEREAS, many municipalities have already banned or restricted the use of internal combustion engine powered equipment with ordinances adopted by the cities of Berkeley, Oakland, Piedmont, Beverly Hills, Claremont, Lafayette, Laguna Beach, Lawndale, Los Altos, Los Angeles, Menlo Park, Novato, Newport Beach, San Clemente, Santa Monica and others; and WHEREAS, on November 27, 2018, the City Council passed a resolution declaring a climate emergency (RESOLUTION NO. NS-29,462); and
WHEREAS, on September 13, 2022 the City Council adopted the City’s Climate Action Plan 2030; and
WHEREAS, the City’s Climate Action Plan 2030 specifically identifies passing a ban on gas-powered small off-road engines, which includes gas-powered leaf blowers, by 2024; and WHEREAS, the City’s Climate Action Plan 2030, commits the City to exploring and mitigating equity impacts of electrifying and upgrading off-road equipment.

BE IT ORDAINED by the City Council of the City of Santa Cruz as follows:

39.1 ORDINANCE NO. 2024-10
2 Section 1. That Chapter 6.110 of the Santa Cruz Municipal Code is added to read as follows:

PROHIBITION OF GAS-POWERED LEAF BLOWERS

6.110.010 Purpose and Findings
The City Council finds and expressly declares as follows:

1. The purpose of this addition to the Santa Cruz Municipal Code is to reduce greenhouse gas emissions and promote the general health, safety, and welfare of City residents by prohibiting the use of gas-powered leaf blowers within Santa Cruz city limits.

2. Strong evidence indicates that gasoline-powered leaf blowers can significantly harm the general health, safety, and welfare of residents. These blowers release substantial amounts of carbon emissions annually. Additionally, their two-stroke engines, which require a mixture of gasoline and oil, produce excessive pollution in various forms, including liquid and solid particulate matter, ozone, carbon monoxide, nitrogen oxides, and hydrocarbons.

3. Santa Cruz is already experiencing the negative impacts of climate change which present various threats to the health and wellbeing of Santa Cruz communities such as displacement, coastal erosion, and flooding.

4. Carbon emissions from gasoline-powered leaf blowers further exacerbate the climate change impacts that the City of Santa Cruz is currently experiencing.

5. Advancements in the development of electric-powered leaf blowers and increased battery capacity have made these electric models a viable and cost-effective alternative to gasolinepowered leaf blowers.

6.110.020 Definitions
The following words and phrases, whenever used in this section, shall have the meanings defined herein:

1. “Leaf blower” means a machine, powered by an internal combustion engine or electric motor, used to blow, displace or vacuum leaves, dirt, and/or debris.

2. “Gas-powered leaf blower” means any leaf blower directly powered by an internal combustion engine using gasoline, diesel, or other volatile fuel.

3. “Internal combustion” means a method of producing power where gasoline, alcohol, or other liquid fuel is combusted within an engine.

4. “Authorize” means to allow, with or without express permission. Authorizing the operation of a gas-powered leaf blower includes but is not limited to the following scenarios:

39.2 ORDINANCE NO. 2024-10
3 a. Hiring any person to perform landscaping services who uses a gas-powered leaf blower to effectuate those services, with or without the knowledge of the hirer. b. Providing a gas-powered leaf blower to another person for use. c. Operating a gas-powered leaf blower.
d. Renting or leasing to a tenant who operates or hires any person who operates a gaspowered leaf blower on the property.

6.110.030 Prohibitions

1. It is prohibited for any property owner to authorize the operation of a gas-powered leaf blower at any time for any purpose on the property they own.

2. The property owner shall be the party responsible for any violations of this chapter that occur on their property.

3. No property owner shall authorize the use of any leaf blower, gas-powered or otherwise, without taking reasonable precautions to avoid depositing dirt, dust, leaves, grass clippings, trimmings, green waste, solid waste or debris onto a neighboring property or into a street, sidewalk, gutter, or storm drain.

4. No property owner shall authorize the use of an internal combustion generator to charge batteries for, or, provide power to, leaf blowers.

6.110.040 Enforcement

1. Any individual may report a suspected violation of this ordinance. a. Suspected violations will be reported to the Planning and Community Development Code Compliance Division through the Planning and Community Development Department’s website complaint portal or by telephone.
b. When a complaint is received a written courtesy notice shall be issued to the responsible party who allegedly authorized the use of gas-powered leaf blowers.

The courtesy notice will specify the alleged violation and possible penalties in the event of future violations and include information on incentives available for compliant leaf blowers. The responsible party will be required to sign and return an affidavit that will be included with the courtesy notice. The affidavit will declare that the responsible party has been put on notice of the ordinance and the possible penalties of violating the ordinance.

2. Any violations of the prohibitions contained in this Chapter shall be punishable by any provision contained in Title 4.

39.3 ORDINANCE NO. 2024-10
4 a. The enforcement mechanisms of this Chapter may include but are not limited to the following:
(1) Public and private nuisance abatement proceedings pursuant to Chapter 4.18 and 4.30.
(2) Administrative citations with penalties increasing at a rate pursuant to Chapter 4.14.
(3) Civil penalties assessed per violation subject to notice and hearing procedures pursuant to Chapter 4.12.
(4) Criminal prosecution pursuant to Chapter 4.04.

6.110.050 Exemptions
This chapter shall not apply to:

1. The maintenance of parcels of ten (10) acres or more. Parcels owned or maintained by homeowners’ associations that, in the aggregate, are ten (10) acres or more shall not be exempt from this chapter.

2. The maintenance of the designated parks, greenways and open spaces listed here:

DeLaveaga Park, Depot Park, Harvey West Park, Neary Lagoon, San Lorenzo Park, Rail Trail, University Terrace Park, Riverwalk, and West Cliff.

3. Use of gas-powered leaf blowers is exempt from this section when utilized by or at the direction of emergency responders for the purposes of responding to an emergency, or necessary to restore, preserve, protect, or save lives or property from imminent danger of loss or harm.

6.110.060 Severability
If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance, or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remainder of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

6.110.070 Effective Date
The prohibitions of this chapter shall become effective on January 1, 2025.

39.4 ORDINANCE NO. 2024-10
5 PASSED FOR PUBLICATION this 11th day of June 2024, by the following vote:

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

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
PASSED FOR FINAL ADOPTION this XX day of XX, 2024, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
This is to certify that the above and
foregoing document is the original
of Ordinance No. 2024-10 and that
it has been published or posted in
accordance with the Charter of the
City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator

39.5 Proof of Publication
(2015 C.C.P.)
I, the undersigned, declare:

That I caused the attached legal notice/advertisement to be published in the Santa Cruz Good Times, a weekly newspaper published and circulated in the County of Santa Cruz, and adjudged a newspaper of general circulation by the Superior Court of California in and for the County of Santa Cruz, under Proceeding No. 68833; and that the legal notice/advertisement was published in the above-named newspaper on the following date(s), to wit:

June 19, 2024
I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge.

This 20th day of June, 2024, Santa Cruz, California
____________________________
Julia Wood
Deputy City Clerk Administrator

39.6 DECLARATION OF POSTING

STATE OF CALIFORNIA )
) SS.

COUNTY OF SANTA CRUZ )
On the 13th day of June, 2024, I posted conspicuously in three public places within the City of Santa Cruz, Ordinance No. 2024-10, to wit:

1. City Hall: 809 Center Street: Bulletin Board outside Room 9/10

2. City Hall: Bulletin Board outside Council Chambers

3. The City of Santa Cruz website
The document, posted in its entirety, consists of pages 1—5.

I declare under penalty of perjury that the foregoing is true and correct. Executed this 13th day of June, 2024, in Santa Cruz, California.
_______________________________
Julia Wood
Deputy City Clerk Administrator

39.7 1
Lindsay Nelson
From: Debra Spencer <[email protected]>
Sent: Tuesday, June 11, 2024 12:07 PM
To: City Council
Cc: [email protected]
Subject: Please pass the ban on gas-powered leaf blowers It's the noise that is most upsetting. It travels over several blocks. When I walk by someone using a gaspowered leaf blower, I put on a mask, because even if the operator shuts it off as I pass (they usually do), the air is still full of dust and fumes. I'm completely in favor of a ban on these machines.

Debra Spencer
Shopper's Corner Heights, Santa Cruz

39.8 2
Lindsay Nelson
From: Ellen Sevy <[email protected]>
Sent: Thursday, June 13, 2024 5:49 PM
To: City Council
Cc: Tiffany Wise-West
Subject: leaf blowers gas vs electric opinion
Dear Ms Wise -West and Council Members,
I am all for decarbonizaƟon but when it comes to leaf blowers, the electric ones dont work really well and if they are not charged with a non carbon creaƟng source then are they really beƩer? As far as noise goes I have heard some of the noisiest blowers and they turn out to be electric. They are higher pitched so of course women will hear them beƩer as well as people with good hearing.

Yes electric smells beƩer.

It seems to me that the gardeners that go out for the enƟre day will need to recharge as well.

The city gardeners and home owners associaƟons can probably afford this beƩer than the individual homeowner or gardener. It seems like if this is to happen everyone should follow the same rules.

Is there a fund for gardeners that are self employed or homeowners to help retool and buy large more effecƟve electric blowers.

More things to enforce and more piƫng neighbor against neighbor… I just dont think this is as important as someone breaking into my home or car, or smash and grab or people riding electric type bikes in bike lanes and sidewalks that are non pedal and go 28 miles per hour,
I have seen the transiƟon in other ciƟes. They give warnings and Ɵckets in the beginning and then enforcement just stops. We dont have the people to enforce our even bigger problems that are illegal.

Thank you
Ellen sevy
Homeowner lower westside santa cruz for 47 years

39.9 1
Lindsay Nelson
From: Linda Snook <[email protected]>
Sent: Saturday, June 22, 2024 7:37 PM
To: City Council
Subject: in support of the leaf blower ban
Dear Council members,
Thank you very much for drafting and considering the ban on gas leaf blowers. I appreciate your proactive approach to protecting the air quality and reducing the noise levels in our neighborhood.

Sincerely,
Linda Snook

39.10 2
Lindsay Nelson
From: [email protected]
Sent: Sunday, June 23, 2024 7:25 PM
To: City Council
Subject: Item 39, Please pass the ban on gas-powered leaf blowers I strongly support the leaf blower ordinance and hope you will vote to pass it Tuesday June 25th. thank you,
josh atar
westside resident

39.11 3
Lindsay Nelson
From: [email protected]
Sent: Sunday, June 23, 2024 7:57 PM
To: City Council
Cc: [email protected]
Subject: Item 39, Please pass the ban on gas-powered leaf blowers dear mayor and city council,
i whole-heartedly support a ban. this ordinance will be a big step in the right direcƟon. vote yes to reduce air polluƟon, reduce noise, improve health, and make santa cruz a beƩer place to live. typos courtesy of my iphone

39.12 4
Lindsay Nelson
From: Lauren <[email protected]>
Sent: Sunday, June 23, 2024 9:44 PM
To: City Council
Cc: [email protected]
Subject: Item 39, Please pass the ban on gas-powered leaf blowers Hi there! I'm a long time resident of Santa Cruz near the UCSC campus. We used to be woken up constantly by the sound of leaf blowers in the morning, but now our HOA has switched to electric leaf blowers and it is a world of difference, much better! But surrounding houses in the area still sometimes use gas leaf blowers and it is awful and smelly and loud. Please pass an ordinance against gas powered leaf blowers Santa Cruz city. Thanks!
Lauren Owen

39.13 5
Lindsay Nelson
From: Brett Garrett <[email protected]>
Sent: Sunday, June 23, 2024 9:53 PM
To: City Council
Cc: [email protected]
Subject: Item 39, Please pass the ban on gas-powered leaf blowers Please continue to support the ban on gas-powered leaf blowers.

These devices are terrible for the climate, and they're also a nuisance! Thank you,
Brett Garrett

39.14 6
Lindsay Nelson
From: Jeremy Chatwin <[email protected]>
Sent: Sunday, June 23, 2024 10:54 PM
To: City Council
Cc: [email protected]
Subject: Item 39, Please pass the ban on gas-powered leaf blowers For the attention of:

Mayor Fred Keeley,
Vice Mayor Renee Golder,
Councilmember Sandy Brown,
Councilmember Sonja Brunner,
Councilmember Shebreh Kalantari-Johnson,
Councilmember Scott Newsome,
Councilmember Martine Watkins
23rd June 2024
I implore you to pass this agenda item. Many arguments support this item however I advance just two here: one selfish, and one altruistic.

I cannot bear the noise. It's akin to someone slowly riding a dirt bike around me. Whilst working I experience a sudden, violent rent in my concentration caused by startup. Then, the persistent drone, punctuated by random revving makes resuming concentration impossible. Functionally, 30 mins of my working day are stolen at random times. There is no escape - at home, at the office in public spaces, these infernal machines are everywhere. Passing this ban would restore a little bit of sanity to my day.

However, frustrated as I am by these machines, at least I am not yoked to them to earn my living. I can escape their toxic fumes and deafening noise levels whereas their operators, even with appropriate safety gear, cannot. These operators, be they employee or proprietor, are obliged by competitive pressure to put their health and well-being on the line just to clear a sidewalk. Passing this ban reduces one element of this pressure. It makes the workplace a little less toxic for our hard working neighbors.

I urge you to do the right thing. This is about Quality of Life for Santa Cruzans, *all* of us.

Comments respectfully submitted by:

Jeremy Chatwin
131 Getchell st., Santa Cruz

39.15 7
Lindsay Nelson
From: E. Ma <[email protected]>
Sent: Monday, June 24, 2024 8:20 AM
To: City Council
Cc: [email protected]
Subject: Item 39, Please pass the ban on gas-powered leaf blowers Yes! I request your vote in favor of Item 39. It will bring a measure of relief to those of us who are aƯected by the use of gas powered leaf blowers. Thank you!
Ester Mattioli
Santa Cruz

39.16 1
Lindsay Nelson
From: Helen Lindsey <[email protected]>
Sent: Monday, June 24, 2024 10:54 AM
To: City Council
Cc: [email protected]
Subject: Item 39, Please pass the ban on gas-powered leaf blowers Dear City Council and all who care about the air and water we share in and around the City and County of Santa Cruz.

It’s hard to imagine anyone in these days of rampant construcƟon who would not favor such a modest, sensible and affordable ban.

Who would not savour the relief that would accompany it?

Think birds for example: wouldn’t it be nice to hear them again? Think fresh clean air. Wouldn’t it be nice if it weren’t full of extra dust, pollen, and worse? Let such judicial wisdom and love of life serve as examples to all of us who truly want to protect what is vital to all of us.

Thank you in advance and from the heart for your aƩenƟon to this iniƟaƟve.

Robert and Helen Lindsey

39.17 2
Lindsay Nelson
From: Katie Fortney <[email protected]>
Sent: Monday, June 24, 2024 11:20 AM
To: City Council
Subject: Please pass the ban on gas powered leaf blowers Hello City Council,
I hope you'll pass the ban on gas powered leaf blowers.

As a person who works full time from home, the noise is disruptive.

As someone who likes to take walks in our beautiful town with my kids, the exhaust and dust is bad for our health.

And in Santa Cruz, of all places, I hope we could get behind an ordinance that reduces such a huge - and unnecessary! - source of environmental pollution.

Sincerely,
Katie Fortney
127 Getchell St.

Santa Cruz

39.18 3
Lindsay Nelson
From: Kathi Lovelace <[email protected]>
Sent: Monday, June 24, 2024 12:36 PM
To: City Council
Cc: C.H.A.S.E. Santa Cruz
Subject: Item 39, Please pass the ban on gas-powered leaf blowers Dear City Council Members,
It is imperative that you pass the ban on gas-powered leaf blowers.

Leaf blowers negatively affect my health (asthma) through all the dust that fills the air while blowers are being used. The dust blows dog urine and feces into the air and eliminates my right to breathe clean air.

The noise also eliminates my right to reasonable peace and quiet.

Even worse is the impact of blowers on the natural environment. They deplete the soil, remove food and habitats for birds, butterflies and various pollinators. The City should be stewards of the environment and work to decrease the negative impacts of climate change. Blowers make everything worse.

Blowers in my neighborhood are ruining the environment. They are present EVERY day and they significantly reduce the quality and quantity of my life because my heart races as all the dust blows on my yard, house, and car and the noise makes it so I can't concentrate on my work.

Please vote in favor of this important ordinance. It is the first time I've written to City Council because the ban on gas-powered leaf blowers is so important to me and the environment. Please help make a stand and support our natural environment and community sanity.

Sincerely,
Kathi J. Lovelace, Ph.D.
303 Marnell Ave, Santa Cruz, CA 95062

39.19 4
Lindsay Nelson
From: Travis Cary <[email protected]>
Sent: Monday, June 24, 2024 12:45 PM
To: City Council
Cc: [email protected]
Subject: Item 39, Please pass the ban on gas-powered leaf blowers Dear Mayor Keeley, Vice Mayor Golder, and City Council Members, I am writing today to implore you to please vote in favor of Item 39 to adopt Ordinance 2024-10 to prohibit the use of gas-powered leaf blowers.

This issue is my number one concern regarding the health and safety of our neighborhood, and I can tell you that many of my neighbors feel the same way. I have lived in Santa Cruz for 14 years and I have never written to the City Council previously. That's how important this issue is to our family.

The use of leaf blowers in our neighborhood is beyond excessive. Every day of the week there are multiple hours-long impacts that are just impossible to ignore. Not surprisingly, there is a leaf blower operating across the street as I write this letter during my lunch break with the windows closed to avoid the noise and the cloud of dust blowing down the street on what could be a very enjoyable summer day.

It is time to move on from the antiquated technology that has so many negative impacts on our neighborhood, including excessive noise, dust, and the myriad proven negative environmental impacts of leaf blowers. The City of Santa Cruz should finally join the list of other cities in California that have taken a stand on this issue.

Please show your support for the physical and mental health of our community by voting to adopt Ordinance 2024-10 to prohibit the use of gas-powered leaf blowers.

Sincerely,
Jason Travis Cary, MRP
303 Marnell Ave
Santa Cruz, CA 95062

39.20 5
Lindsay Nelson
From: Susan Cavalieri <[email protected]>
Sent: Monday, June 24, 2024 2:04 PM
To: City Council
Subject: leaf blowers
City of Santa Cruz Councilmembers,
I am writing in support of mandating electric leaf blowers in the City of Santa Cruz. I know you are aware of the outrageous GHG emissions from small engine gas lawn devices, and their impact on both the City Climate Action Plan and rising global emissions. As global temperatures have reached crisis levels over the past year, causing deaths by heat, terrible storms, flooding and fires, the City needs to rapidly enact policies to drastically cut emissions. Please join other municipalities in enacting a ban on gas powered leaf blowers at the council meeting on 6/25/24.

Humanity is running out of time to save a livable future. Please act on reducing emissions from all sources, including enacting a ban on gas powered leaf blowers.

Thank you,
Susan Cavalieri
City of Santa Cruz

39.21 3
Lindsay Nelson
From: NAOMI GOSCIMINSKI <[email protected]>
Sent: Monday, June 24, 2024 3:30 PM
To: City Council
Cc: [email protected]
Subject: Item 39, Please pass the ban on gas-powered leaf blowers Sent from my iPad
Dear Mayor Keeley, Vice Mayor Golder and City Council Members, I am wriƟng today to strongly encourage you to vote in favor of Item 39 and adopt Ordinance 2024-10 which would prohibit the use of gas-powered leaf blowers in the city of Santa Cruz and all surrounding ciƟes within our county.

The use of gas powered leaf blowers creates serious health issues for those of us with compromised lungs. An example which almost sent me to the urgent care was the neighbor having a crew use powerful gas powered blowers to clean out their guƩers. The massive dust/dirt/debris cloud that was blown into our back yard as the employee was on the roof of the house caused a severe asthma aƩack which made it extremely difficult to breathe. When I spoke with the owner of the business, I was shocked with his total lack of awareness regarding that how his employees performed their job could actually cause a health emergency. I doubt very many people correlate the effects of these powerful gas leaf blowers with the many health issues it causes. It seems like almost everywhere you go, someone is using a gas powered leaf blower to move the dirt/dust/debris either into the streets or onto someone else’s property. In addiƟon, this is truly noise polluƟon which could be avoided so it does not interfere with our health or enjoying our beauƟful surroundings.

Thank you so much,
Naomi Florin
515 Parnell St
Santa Cruz, Ca. 95062

39.22 1
Lindsay Nelson
From: [email protected]
Sent: Monday, June 24, 2024 3:32 PM
To: City Council
Cc: [email protected]
Subject: Item 39, Please pass the ban on gas-powered leaf blowers Sent from my iPad
Dear Mayor Keeley, Vice Mayor Golder and City Council Members, I am writing today to strongly encourage you to vote in favor of Item 39 and adopt Ordinance 2024-10 which would prohibit the use of gas-powered leaf blowers in the city of Santa Cruz and all surrounding cities within our county.

The use of gas powered leaf blowers create serious health issues for those of us with compromised lungs. An example which almost sent me to the urgent care was the neighbor having a crew use gas powered blowers to clean out their gutters. The massive dust/dirt/debris cloud that was blown into our back yard as the employee was on the roof of the house caused a severe asthma attack which made it extremely difficult to breathe. When I spoke with the owner of the business, I was shocked with his total lack of awareness regarding how his employees performed their job could actually cause a health emergency. I doubt very many people correlate the effects of these powerful gas leaf blowers with the health issues it causes. It seems like everywhere you go someone is polluting the air with a or In addition, I consider the blowers noise pollution which disrupts enjoying being outside.

39.23 2
Lindsay Nelson
From: Naomi Florin-Gosciminski <[email protected]>
Sent: Monday, June 24, 2024 3:53 PM
To: City Council
Cc: [email protected]
Subject: Item 39, Please pass the ban on gas-powered leaf blowers Sent from my iPad
Dear Mayor Keeley, Vice Mayor Golder and City Council Members, I am wriƟng today to strongly encourage you to vote in favor of Item 39 and adopt Ordinance 2024-10 which would prohibit the use of gas powered leaf blowers in the City of Santa Cruz and all surrounding ciƟes within our county.

The use of gas powered leaf blowers creates serious health issues for those of us with compromised lungs. An example which almost sent me to urgent care was the neighbor having a crew use powerful gas powered blowers to clean their guƩers. The massive dust/dirt/debris cloud that was blown into our back yard as the employee was on the roof of the house caused a severe asthma aƩack which made it extremely difficult to breathe. When I spoke with the owner of the business, I was shocked with his total lack of awareness regarding that how his employees performed their job could actually cause a health emergency. I doubt very many people correlate the effects of these powerful gas leaf blowers with the many health issues it causes. It seems like almost everywhere you go, someone is using a gas powered leaf blower to move the dirt/dust/debris either into the streets or onto someone else’s property. In addiƟon, this is truly noise polluƟon which could be avoided so it does not interfere with our health or enjoying our beauƟful surroundings.

Thank you so much,
Naomi Florin
515 Parnell St
Santa Cruz, Ca. 95062

39.24 4
Lindsay Nelson
From: C.H.A.S.E. Santa Cruz <[email protected]> Sent: Monday, June 24, 2024 4:55 PM
To: City Council
Subject: Item 39, Please pass the ban on gas-powered leaf blowers June 24, 2024

Dear City Councilmembers,

Thank you for bringing the gas-powered leaf blower ordinance to a vote, and thank you Councilmember Kalantari-Johnson for sponsoring this initiative.

There are numerous reasons to phase-out the use of gas-powered leaf blowers, which members of our group and the public at large have been citing for many years in our pleas to pass a sensible policy. We won’t repeat all those reasons here now but suffice it to say that the emissions from two-stroke landscaping equipment are uniquely harmful to human health and the environment—they make the emissions of a two-ton pickup truck look clean by comparison.

These outdated machines increase the risks of a range of diseases, ailments, and cancers; they increase smog and contribute to climate change; their noise disturbs and stresses everyday life in the city six to seven days a week; and they’re especially harmful to the workers who are forced to endure their noise and toxic emissions just to make a living.

Gas-powered leaf blowers and other landscaping tools should be phased out of use for public health, our environment, quality of life, and basic equity.

After passage of this ordinance, Santa Cruz C.H.A.S.E. is happy to work with the city to publicize the ordinance and its effective date of January 1st, and to continue help landscapers and the public learn about the steep discounts available for new battery-powered landscaping equipment and the opportunities for recycling gas-powered equipment.

Sincerely,

Chris Ryan
Carol Wilhelmy
Ken Foster
David Bezanson

Santa Cruz Coalition for a Healthy & Safe Environment (C.H.A.S.E.) [email protected]
chasesantacruz.org

39.25 5

39.26 City Council

AGENDA REPORT
DATE: 6/6/2024
AGENDA OF: 6/25/2024
DEPARTMENT: Planning and Community Development
SUBJECT: 302, 310, 314, 322, 324, 326, 328 Front Street: CP24-0097 (APN 005- 151-29, -34, -35, -43, -48, -51) Major Modification to Previously Approved Application File Number CP21-0051 to Amend the Conditions of Approval to Add Voluntary Public Benefits to the Previously-Approved Six-Story, 232-Room Hotel Project with Restaurant, Bar, Banquet, and Other Related Facilities located in the CBD (Central Business District) Zone District. (Environmental Determination: Categorical Exemption, Section 15332 & Statutory Exemption 15061(b)(3)) Applicant: SCFS Venture LLC (PL)
RECOMMENDATION: Motion to adopt a resolution approving application CP24-0097 based on the attached Findings and Conditions of Approval.

BACKGROUND: On March 26, 2024, the City Council approved application file number CP21-0051, which included a project to demolish a commercial building and construct a new sixstory hotel with 232 rooms, three floors of underground parking, ground floor retail, banquet and conference space, a restaurant, bar, café, and associated hotel amenities such as a gym, spa, riverwalk amenities, and rooftop pool/bar.

Following the Council approval, three separate letters of appeal were received by the Coastal Commission, appealing the Coastal Permit approval to the Coastal Commission. One of the central issues raised by the appeals was the project’s lack of on-site, low-cost visitor accommodations. The applicant and city staff have met with the local Coastal Commission staff over the past few weeks to determine how best to address this issue, and the applicants have offered several voluntary benefits as additions to the approved application’s previous conditions of approval. While the proposed revisions to the application would qualify as a Minor Modification that could be approved administratively at the staff level, the applicants have applied for a Major Modification requiring approval by the City Council in the interest of full transparency and to allow for public comment at a public hearing.

40.1 DISCUSSION: Coastal Act Section 30213 states:

Lower cost visitor and recreational facilities shall be protected, encouraged, and, where feasible, provided. Developments providing public recreational opportunities are preferred.

The commission shall not: (1) require that overnight room rentals be fixed at an amount certain for any privately owned and operated hotel, motel, or other similar visitor-serving facility located on either public or private lands; or (2) establish or approve any method for the identification of low or moderate income persons for the purpose of determining eligibility for overnight room rentals in any such facilities.

The term “low-cost visitor and recreational facilities” can apply to both physical public access, which is abundant in the City (i.e., the Boardwalk, West Cliff Drive Path, Small Craft Harbor, Wharf, and Monterey Bay Marine Sanctuary Exploration Center), as well as visitor serving accommodations. Interestingly, most of the City’s Local Coastal Program (LCP) policies addressing visitor accommodations seek to upgrade existing hotel facilities and attract quality hotel and conference facilities, though Policy ED5.2.3 seeks to ensure “the retention of moderatelypriced accommodations.” The proposed project balances these two goals through the hotel room rates, the inclusion of conference facilities, and the overall package of visitor serving amenity and overnight accommodation improvements and monetary contributions.

Aside from the very specific development standards addressing pedestrian connectivity in the Downtown Plan, none of the LCP policies or implementing ordinances include specific objective standards articulating how the Coastal Act low-cost visitor facilities policy can be implemented through conditions of approval. Nevertheless, the applicant and City have recognized the importance of low-cost visitor serving amenities and addressed the issue through the incorporation of conditions of approval. Prior to the City Council approval on March 26, 2024, the applicants worked closely with City and Coastal Commission staff to address the Coastal Act and LCP policy with voluntary measures approved as Condition #84 in the Council’s initial project approval (see attachment titled “Conditions of Approval Approved by the City Council on March 26, 2024”). While staff (and the Council, through their initial approval) believed the original package of amenities and contributions was consistent with both the Coastal Act and the LCP, the applicant’s proposed additional, voluntary conditions further expand the project’s approach in providing low-cost visitor accommodations.

In response to the appeals to Coastal Commission, the applicants are proposing modifications to the previously approved condition #84 to include additional voluntary benefits and modify some of the language for simplification. A new set of conditions of approval with the proposed detailed modifications is attached as “Resolution with Findings and New Conditions of Approval with Proposed Conditions Included.” The following summarizes the changes to the voluntary benefits now offered to help ensure the overnight accommodations are available at a range of price points in the Coastal Zone:

40.2  The final plans shall include no less than six (6) family suites that can accommodate families and include kitchenettes so that families can prepare meals. o This offering was part of the initial approvals and did not change. It should be noted that condition #81 which is repetitive has been corrected to be consistent with #84(A).
 Pay an in-lieu fee for low-cost visitor accommodations in the amount of $5,000,000. o This offering previously required a long mathematical formula to calculate, including inflationary increases and deductions for various contributions. The formula has been removed, and the dollar amount is now specified.  Standard double-occupancy low-cost rate rooms shall be made available for a minimum of 3,650 guest nights per year.
o This is a new offering.
 The low-cost room availability shall be evenly distributed across the four quarters of the fiscal year (minimum of 912 rooms during any one quarter of the year). o This is a new offering.
 Underserved communities shall have access to standard double-occupancy rooms at the minimum operation cost (estimated to be $80/night) for a minimum of 150 guest nights per year (minimum of 37 rooms during any one quarter of the year). o This is a new offering.
 Annual report to be submitted to the City and Coastal Commission that provides an analysis of the usage of low-cost accommodations.
o This is a new offering.

The specific language in the attachment provides additional details of the proposed voluntary condition. Other conditions of approval remain unaffected by this change, including some that also address low-cost accommodations and visitor amenities, such as Condition #77, which provides for a $50,000 contribution to the Santa Cruz Hostel Society and an annual payment of $10,000 for ten years to fund the “Santa Cruzer” downtown and beach shuttle program, as well as other amenities such as free public bike rentals for the first 90 minutes and free public Wi-Fi.

While not related to low-cost accommodations, Condition #29 also requires a mandatory contribution of approximately $227,500 to the City’s affordable housing trust fund, and it includes a voluntary offering as part of the condition whereby the applicant will provide no fewer than four market rate units at an affordable, subsidized rate for employees for a period of 20 years.

Because this application involves a Major Modification to the entitlements approved by City Council on March 26, 2024, all the findings will need to be re-adopted, though finding no. 5 (Coastal Permit) has been updated to acknowledge some of the enhanced visitor-serving conditions volunteered by the applicant. The updated findings and conditions are underlined in the attached resolution.

ENVIRONMENTAL REVIEW: A California Environmental Quality Act (CEQA) Categorical Exemption Review was prepared by Dudek. The review determined that the project is categorically exempt from environmental review under Article 19 of the CEQA Guidelines, Section 15332, related to infill development. More information on the City’s prior CEQA determination is available online as part of the March 26, 2024 Council agenda materials. The

40.3 proposed changes to the conditions of approval address room rates and revised voluntary contributions towards low-cost accommodations, and they do not affect the initial CEQA determination. This Major Modification is also covered under the “common sense” CEQA exemption in CEQA Guidelines Section 15061(b)(3) in that it has no possibility that the action will have a significant effect on the environment.

HEALTH IN ALL POLICIES (HiAP): HiAP is a collaborative approach to improving the health of all people by incorporating health considerations into decision-making across sectors and policy areas. HiAP is based on 3 pillars: equity, public health, and sustainability. The goal of HiAP is to ensure that all decision-makers are informed about the health, equity, and sustainability impacts of various policy options during the policy development process. The project supports the pillar of equity by providing a range of jobs that cater to diverse backgrounds, by being a visitor-serving use available to all income levels, and by providing various amenities (restaurant/bar/meeting rooms/conference/café/outdoor extension area) that are all open and available to the public at large.

The newly offered low-cost accommodations further promote the HiAP equity component. The development is on a site that is improved with sidewalks and street trees and that is close to public transportation, commercial goods and services, and recreational areas. Development in this central location encourages a sustainable and healthy lifestyle by promoting alternative forms of transportation by providing key pedestrian and bike connections via the Maple Paseo and Riverwalk which connect the downtown and other neighborhoods along the levee. The hotel will generate significant Transit Occupancy Tax which can be used to further HiAP objectives. Additionally, the applicant has volunteered financial contributions to the Santa Cruz Hostel Society and the Boys and Girls Clubs of Santa Cruz County, as well agreed to offer tower viewers on site to view the river habitat as well as provide bike rentals that are free of charge to the public for the first 90 minutes.

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

SUMMARY AND RECOMMENDATION: Staff supports the modifications to the Conditions of Approval and recommends approval based on the attached Findings and Conditions of Approval.

FISCAL IMPACT: The applicant has paid fees to compensate for costs associated with staff time processing this application. The project will contribute to increased property tax and sales tax revenue to the City, and the project developer will be required to pay City impact fees. The project’s primary revenue generation will come from transient occupancy tax (TOT). The applicant projects that the first full year of TOT revenue to the City will be approximately $2.4 million, with annual TOT revenues expected to increase from that point. The project would result in a substantial annual net fiscal benefit, and the revenue will allow the City to spend funds on a wide range of services. As detailed in the separate and associated staff report, the sale of the properties by the City to the developer would generate $2.55 million. In addition, the hotel occupants will generate sales for downtown restaurants and retail businesses, and that will result in sales tax for the City.

Prepared By:

Ryan Bane
Senior Planner
Submitted By:

Lee Butler
Director of Planning and
Community Development
Approved By:

Matt Huffaker
City Manager

40.4 ATTACHMENTS:

1. RESOLUTION WITH FINDINGS AND CONDITIONS OF APPROVAL WITH

PROPOSED CONDITIONS INCLUDED

2. CONDITIONS OF APPROVAL AS APPROVED BY THE CITY COUNCIL ON MARCH 26, 2024

40.5 RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ

ACKNOWLEDGING THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)

DETERMINATION AND APPROVING A MAJOR MODIFICATION TO A PREVIOUSLY APPROVED SIX-STORY, 232-ROOM HOTEL WITH RESTAURANT, BAR, BANQUET, AND OTHER RELATED FACILITIES (APPLICATION FILE NUMBER CP21-0051) BY

AMENDING THE CONDITIONS OF APPROVAL TO ADD VOLUNTARY PUBLIC BENEFITS. THE PROJECT IS LOCATED IN THE CBD (CENTRAL BUSINESS

DISTRICT)/CZ-O (COASTAL ZONE OVERLAY)/ SP-O (SHORELINE PROTECTION

OVERLAY)/ F-P (FLOODPLAIN)/FP-O (FLOODPLAIN OVERLAY) ZONE DISTRICTS

AND WITHIN THE FRONT STREET/RIVERFRONT SUBAREA OF THE DOWNTOWN PLAN. (ENVIRONMENTAL DETERMINATION: CATEGORICAL EXEMPTION, SECTION 15332 & STATUTORY EXEMPTION 15061(B)(3))
(APPLICATION NO. CP24-0097)
WHEREAS, on April 14, 2021, SCFS Venture LLC (“applicant”), for properties located at 302, 310, 314, 324, 326 and 328 Front Street also known as Assessor’s Parcel Numbers 005- 151-29, -34, -35, -43 -48, and -51, applicant has applied for various entitlements to allow the above-described project; and
WHEREAS, the project site and its development is governed by the standards and guidelines contained in California State Law, the City of Santa Cruz General Plan 2030, the Downtown Plan, Local Coastal Plan and Santa Cruz Municipal Code; and WHEREAS, the project qualifies for a Categorical Exemption for In-Fill Development pursuant to CEQA Guidelines Section 15332, as described fully in the staff report; and WHEREAS, the Planning Commission determined the sale of the exempt surplus property to be consistent with the General Plan in accordance with the Surplus Lands Act; WHEREAS, the Planning Commission conducted a duly noticed public hearing on February 15, 2024 to consider the project and by a vote of 6-0 made a recommendation to the City Council to approve the project; and
WHEREAS, the City Council conducted a duly noticed public hearing on March 26, 2024 to consider the application and the full public record; WHEREAS, the City Council approved application CP21-0051 on a 5-1 vote on March 26, 2024;
WHEREAS, an application for a Major Modification was received on June 6, 2024 to amend the Conditions of Approval to include additional voluntary benefits and modify some of the language for simplification; and

40.6 WHEREAS, the intent of the Modification is to amend the specific condition of approval described in the attached staff report and to maintain the remainder of the conditions as approval to that which was approved by the City Council on March 26, 2024; WHEREAS, the City Council now makes the following findings:

Coastal Permit, Section 24.08.250, which encompasses the Heritage Tree Removal Permit

1. Maintain views between the sea and the first public roadway parallel to the sea.

The project will not affect coastal views because the property is located on the corner of Front and Laurel Streets, almost a half mile inland from Beach Street, the first public roadway parallel to the sea.

2. Protect vegetation, natural habitats and natural resources consistent with the Local Coastal Land Use Plan.

The project site is not located within any sensitive natural habitat or resource areas as mapped in the General Plan and the Local Coastal Program. An Arborist report prepared by Kurt Fouts dated April 13, 2021, inventoried the trees in the project area, including along Front and Laurel Streets and the adjacent Riverwalk, and recommendations from the report are incorporated as conditions of approval for the project. Twenty-four trees were inventoried, including seven street trees and seventeen trees located along the Riverwalk. Most trees inventoried were in good or fair condition. Due to the excavation for the new hotel in addition to the placement of fill between the levee and the proposed building to allow for the development of an outdoor extension area adjacent to the Riverway path, sixteen of the trees are recommended for removal. Two of the eight trees to be retained are street trees, and six are Riverwalk trees.

Conditions of approval require replacement trees or in-lieu fees, if replacement trees cannot be accommodated on site.

The property is located within a sensitive archaeological area. A cultural resource evaluation was conducted in January of 2022 by Basin Research Associates, which concluded that both environmental factors and the archival data indicate a low to very low potential for the exposure of significant historic resources and/or unique archaeological sites during ground disturbing construction. Based on a review of pertinent records, maps, and other documents and a field inventory, it was determined that the project will not affect any recorded historic properties or unique archaeological resources and that archaeological monitoring during ground disturbing construction does not appear warranted due to the low sensitivity for exposing significant subsurface cultural resources. If prehistoric and/or historic deposits or features are discovered during construction, construction will be required to cease and a qualified archaeologist to inspect and prepare recommendations for handling of the artifacts.

The project includes, either through design or conditions of approval, bird-safe strategies consistent with those enumerated in the Downtown Plan, including 1) Avoiding passageways or atriums that trap birds; 2) Using window glazing treatments that create a visual barrier to

40.7 birds for the majority of glazing within the first 40-feet of ground level façade facing the Riverwalk; 3) Exterior illumination will be thoughtfully designed to minimize light pollution;, 4) Use of timers and avoiding up-lighting and spotlights that would be detrimental to wildlife; and 5) Landscape designed to allow views from the building and to keep birds away from the building façade.

3. Be consistent with any applicable design plans and/or area plans incorporated into the Local Coastal Land Use Plan.

The project is consistent with the Downtown Plan and San Lorenzo Urban River Plan. The project implements the Downtown Plan First Principles and the Planning Principles and Strategies in several ways. The proposed building has its own unique character while still maintaining consistency with the design standards and guidelines within the Downtown Plan.

The building height is consistent with Additional Height Zone B. The project provides a visitor-serving hotel which will in turn support other local businesses such as restaurants and retail in the downtown. The project’s design creates a strong linkage to the river by having the restaurant, bar and banquet uses on the east side of the building orientated toward the Riverwalk. Finally, the site layout enhances pedestrian and bicycle usage with an outdoor stairway and new accessible pathways connecting Front Street and the Riverwalk as part of the Maple Paseo.

The project is consistent with the following San Lorenzo Urban River Plan polices:
 Improve the scenic and recreational value of the Riverfront  Improve public access and pedestrian/bicycle movement to and along the River  Improve the urban and neighborhood interface with the San Lorenzo River, Branciforte Creek, and Jessie Street Marsh
 Incorporate the San Lorenzo River, Branciforte Creek, and Jessie Street Marsh into the surrounding urban fabric of downtown and neighborhoods.  Front Street – Significant Riverfront Areas (SRFA)-1: Require new development projects to incorporate design features that encourage active engagement with the Riverwalk such as: filling adjacent to the Riverwalk and landscaping, providing direct physical access to the Riverwalk, including appropriate active commercial and/or residential uses adjacent to the Riverwalk or providing a combination of these and/or other design features that support the resource enhancement and river engagement policies of the San Lorenzo River Plan.  SRFA-3: Maintain the ten-foot setback area between residential and commercial uses adjacent to the levee trail from the western edge of the trail. The area between the property line and the Riverwalk shall be filled to raise the adjacent ground-level use to a similar or higher elevation as the Riverwalk. The public lands between the Riverwalk and the private property may incorporate publicly accessible commercial or residential amenities, such as outdoor public seating. Trees planted as part of the San Lorenzo Flood Control Improvement Project should be maintained and incorporated into new development where feasible and where not in conflict with the required fill or publicly accessible amenities.

4. Maintain public access to the coast along any coastline as set forth in the Local Coastal Land Use Plan.

40.8 The project’s design creates a strong linkage to the river and coastline by having the restaurant, bar, and banquet uses on the east side of the building orientated toward the Riverwalk. Also, the site layout enhances pedestrian and bicycle usage with an outdoor stairway and new accessible pathways connecting Front Street, Pacific Station Transit Center, and the Riverwalk as part of the Maple Paseo.

5. Be consistent with the Local Coastal Land Use Plan goal of providing visitor-serving needs as appropriate.

The proposed hotel will introduce 232 new high-quality hotel rooms to the Coastal Zone and provides a visitor-serving use which will in turn support other local businesses such as restaurants and retail in the downtown. The proposed project is consistent with the policies of the Local Coastal Program, including but not limited to the following policies:
 2.4.6 Provide for the development of supporting land uses adjacent to retail shopping areas (e.g., motels/hotels around visitor-shopping areas, and residences and offices around resident-serving shopping areas), while assuring protection of existing residential neighborhoods. (See policies under L 2.9, ED 2.3, ED 5.2)  5.3.5 Ensure that visitor-serving facilities are arranged and developed in a compact, integrated manner to reduce automobile circulation and emphasize pedestrian movement. (See policy ED 5.3)
 5.2 Encourage upgrades of existing hotel facilities and attract quality hotel and conference facilities in locations and scale appropriate to the City's character to enhance the quality of visitor-serving areas and promote development of the conference tourism market. (See policy ED 2.4.6)
 2.7.2 Improve the character and quality of visitor-serving commercial areas to encourage more off-season and overnight visits. (See policies under goal ED 5)  7.6 Improve the San Lorenzo River levee to provide an additional community “linear park” resource which serves as improved access to Downtown in accordance with river design concept plans. (P. 278)
 T-5 Access and pathways in the Front Street corridor should be designed to draw people out of the downtown to the River.
 SRFA –7 Ensure that any parcel consolidation strategy provides for public access from the Front Street sidewalk to the levee. Maintain the ten-foot step back requirement between buildings included in the Downtown Recovery Plan for any development. Encourage pedestrian traffic through creative inviting design and incorporate water features, gardens, paving, and stairways up the levee as design features.
 3.6 In pedestrian areas, require building design to be responsive to the pedestrian environment. These areas include but are not limited to Downtown, South of Laurel, the Beach, wharf, shoreline, and commercial shopping areas.  3.7 Require development to incorporate features to promote pedestrian use including new linkages to the pedestrian system. (See policy C 2.2.6)  2.6.3 Prioritize development of high-density mixed residential and commercial development in the City's Downtown Central Business District, North River Street, and

40.9 South of Laurel areas over undeveloped lands at the periphery of the City. (See policies under CD 1.1, H 1.3.1.1, and H 1.3.1.3).
 5.2.1 Encourage the development of facilities that would help accommodate conference users in conjunction with existing hotels or new hotel development.  5.2.2 Investigate the attraction of a top-end, full-service hotel to expand and improve the year-round conference segment of the tourism market.

The project proposes a wide range of public benefits, from publicly-accessible amenities to affordable housing contributions to low-cost overnight accommodation contributions as referenced in the City Council report. While the project’s room rental rate is in the range of what the Coastal Commission would typically characterize as a high-cost accommodation, it is in the lower end of the range and is only marginally higher than the top end of the projected range for moderately-priced accommodations. Collectively, the project offers a package of accommodations, including six suites that can accommodate families and availability of double occupancy low cost rate rooms for a minimum of 3,650 guest nights per year evenly distributed across the four quarters of the fiscal year; public amenities, and contributions that meet the City’s visitor serving accommodation needs.

6. Be consistent with the Local Coastal Land Use Plan goal of encouraging coastal development uses as appropriate.

The Local Coastal Program encourages the expansion of visitor-serving accommodations in the Coastal Zone and will draw visitors to the downtown and nearby beach area. As proposed, the project is consistent with applicable policies of the Local Coastal Program, which seek to minimize the impact of development on coastal resources and provide visitor-serving uses in the beach area.

Nonresidential Demolition Authorization Permit, Section 24.08.1230.3

7. The cultural resources evaluation is accepted as accurate and complete; and the cultural resources evaluation concludes that the building or structure is not eligible for listing on the city historic building survey.

The primary commercial building on the site (Santa Cruz Community Credit Union) is proposed for demolition. Based on City of Santa Cruz Building Permit records, the original structure was constructed in 1978. Pursuant to the Nonresidential Demolition Authorization Permit ordinance, the purpose of this permit is to evaluate requests for demolition of nonresidential structures fifty years of age or older, and of undetermined age, to ensure that those which may have historic value are not demolished. The structure is less than fifty years in age and staff has evaluated the structure and determined that that the property is not listed on the California Register of Historic Resources, the National Register of Historic Places, or the City of Santa Cruz Historic Building Survey. The building is not the work of a prominent architect or builder, does not possess architectural interest nor significance, and is not eligible for listing in any of the aforementioned registers.

40.10 8. The project which will replace the demolished building or structure has been, or is concurrently being, approved by the city, and an appropriate building permit has been, or is concurrently being, issued; unless some other practical hardship can be documented rendering this requirement inappropriate.

The hotel project that will replace the demolished structure is being concurrently approved by the City. A condition of approval requires the building permit to be issued concurrently with the demolition permit for the existing building unless some other practical hardship renders this requirement inappropriate.

9. The property owner has been advised of the benefits of listing the property on the city historic building survey and incorporating the preservation of the historic resource into the proposed project.

The building in question is not eligible for listing on the historic building survey; therefore, this finding does not apply.

10. The cultural resources evaluation determines that the resource is eligible for listing on the city historic building survey, appropriate environmental review has been completed in accordance with the California Environmental Quality Act, and the zoning administrator can make a finding of overriding consideration that the replacement project will have public benefits which will outweigh the impact of loss of the historic resource.

It has been concluded that the building in question is not eligible for listing on the historic building survey and is not historically significant under CEQA; therefore, this finding does not apply.

Design Permit, Section 24.08.430

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

The majority of the project site, within the privately owned parcels and where the building is proposed, has a General Plan land use designation of Regional Visitor Commercial (RVC)/Downtown Santa Cruz. The RVC/Downtown Santa Cruz designation emphasizes a mix of uses such as office and retail uses, residential and mixed-use developments, restaurants, and visitor attractions. The proposed use of the parcel as a hotel project is consistent with the intent of the RVC/Downtown Santa Cruz designation. The area of the project on City-owned land east of the building to the Riverwalk that is proposed to be filled and landscaped with outdoor amenities has a land use designation of Natural Area. This designation provides for land that should remain in an undeveloped state to provide for habitat protection, public safety, or public recreation. While the designation allows a public recreation use on a case-by-case basis, it should also be noted that the Downtown Plan and

40.11 the San Lorenzo Urban River Plan requires such a use to be developed in this location as described below. The proposal creates a publicly accessible outdoor extension area connecting the development to the Riverwalk in this area consistent with the land use designation. The proposed project is also consistent with many General Plan policies relating to visitor-serving uses, alternative transportation, open space access, and downtown area development as follows:
 Community Design CD1.1.4 Identify and emphasize distinguishing natural features that strengthen Santa Cruz’s visual image (i.e., open space, Monterey Bay).  Community Design CD1.4.2 Consider visual access to nearby natural areas as part of developmental review.
 Community Design CD1.5.1 Enhance the prominence of the San Lorenzo River as a natural feature that provides structure, orientation, and recreational enjoyment by including it in surrounding area and management plans.
 Community Design CD1.5.2 Provide incentives for new development adjacent to the San Lorenzo River that includes patios overlooking the river, enhanced connections to the levee trails, and other design features that connect the built environment to the river.  Community Design CD3.1.1 Strengthen the linkage between Downtown, the Beach Area, and San Lorenzo River through amendments to corresponding Area Plans and the Zoning Ordinance.
 Community Design CD3.1.2 Maintain, update, and implement the City’s San Lorenzo Urban River Plan.
 Community Design CD3.3.1 Develop incentives to encourage the assembly of small parcels through Area Plan amendments and Zoning Ordinance changes.  Community Design CD4.1.1 Support compact mixed-use development Downtown, along primary transportation corridors, and in employment centers.  Community Design CD4.1.1 Where possible, site buildings at the street frontage and place parking areas away from street corners and to the rear of buildings.  Community Design CD4.2.3 Underground utilities when major road improvement or reconstruction is proposed, if possible.
 Community Design CD4.3.6 Implement streetscape and other landscaping plans in the City's Area and Specific Plans.
 Community Design CD5.2.1 Encourage buildings to be oriented towards sidewalks, public plazas, walkways, or rivers and to include features such as public benches and natural seating areas.
 Community Design CD5.2.2 Encourage the incorporation of public benches and natural seating areas along public walkways and in public plazas and parks.  Community Design CD5.2.4 Ensure that new and revised design guidelines encourage the use of pedestrian-scaled fenestration, awnings, entrances, landscaping, and other amenities.
 Land Use LU1.1.2 Create incentives for the consolidation of underdeveloped parcels relative to development potential.
 Land Use LU1.2.1 Environmental review for specific projects shall be accompanied by sufficient technical data and reviewed by appropriate departments.

40.12  Land Use LU2.3.1 Protect, maintain, and enhance publicly accessible coastal and open space areas.
 Land Use LU3.11.2 Ensure appropriate land uses and development standards that do not adversely impact adjacent open spaces.
 Mobility M1.1.1 Create walkable, transit-oriented activity centers throughout the city.  Mobility M1.1.2 Connect activity centers with pedestrian and bicycle paths.  Mobility M2.1.2 Encourage use of alternative modes of transportation.  Mobility Development Policy M1.3 - Create pedestrian-friendly frontage and streetscapes and attractive pedestrian-oriented areas.
 Mobility M4.1.6 Enhance the pedestrian orientation of the Downtown Central Business District.
 Mobility M4.1.7 Require the site and building design facilitate pedestrian activity.  Mobility M4.1.9 Require landscaping in the development, replacement, and repair of sidewalks, including the placement of trees on private property and/or in tree wells on sidewalks.
 Economic Development ED1.1.2 – Support the development and expansion of businesses that make a balanced contribution to the cultural, environmental, and economic health of the city.
 Economic Development ED1.1.3 - Encourage the development of year-round businesses and visitor activities, resources, and destinations that can also attract and engage local residents.
 Economic Development ED 1.1.6 - Revitalize the RiverFront area.  Economic Development ED 1.5.1 - Encourage the development of facilities that would accommodate conferences and conference-goers in conjunction with existing or new hotel development.
 Economic Development ED 1.5.2 - Attract a top-end, full-service hotel to expand and improve the year-round conference segment of the tourism market.  Economic Development ED1.7.2 - Diversify the range of visitor attractions in Santa Cruz, particularly those that draw on the city’s unique natural and cultural assets.  Economic Development ED 5.5.1 - Enhance Downtown as a welcoming and inviting destination for residents, visitors, and businesses.
 Economic Development ED 5.5.3 - Retain existing businesses and attract new ones to downtown Santa Cruz.
 Economic Development ED 5.5.4 - Create a distinctive and active pedestrian environment downtown.
 Economic Development ED5.1.1 Provide for the development of supporting land uses adjacent to retail shopping areas, while assuring protection of existing residential neighborhoods.
 Economic Development ED5.3.1 Provide for attractive commercial development (including more intensive and higher quality ground floor retail) along commercial corridors provided the uses are compatible with or transition easily to adjacent residential areas.
 Economic Development ED5.5.5 Allow for the extension of café and retail uses within the public right-of-way, subject to design standards and management guidelines.

40.13  Hazards, Safety, Noise HZ6.4.8 Minimize the alteration of natural floodplains, stream channels, and natural protective barriers that accommodate or channel floodwaters.  Parks, Recreation, and Open Space PR1.6.1 Maintain and enhance access for vehicles, transit, bicycles, and pedestrians.
 Parks, Recreation, and Open Space PR4.1.3 Maintain and enhance the recreational value of the San Lorenzo River walkway and the East and West Cliff Drive pathways  Natural Resources and Conservation NRC1.1.2 Where consistent with riparian and wetland protection, provide actual or visual access of a low-impact nature  Natural Resources and Conservation NRC1.1.1 Require setbacks and implementation of standards and guidelines for development and improvements within the city and adjacent to creeks and wetlands as set forth in the Citywide Creeks and Wetlands Management Plan.
 Natural Resources and Conservation NRC1.3.1 Conserve creek, riparian, and wetland resources in accordance with the adopted City-wide Creeks and Wetlands Management Plan and the San Lorenzo River Plan.

The project’s proposed building design and open space improvements adjacent to the Riverwalk are consistent with the following San Lorenzo Urban River Plan (SLURP) goals and policies:
 Improve the scenic and recreational value of the Riverfront  Improve public access and pedestrian/bicycle movement to and along the River  Improve the urban and neighborhood interface with the San Lorenzo River, Branciforte Creek, and Jessie Street Marsh
 Incorporate the San Lorenzo River, Branciforte Creek, and Jessie Street Marsh into the surrounding urban fabric of downtown and neighborhoods.  Front Street – Significant Riverfront Areas (SRFA)-1: Require new development projects to incorporate design features that encourage active engagement with the Riverwalk such as: filling adjacent to the Riverwalk and landscaping, providing direct physical access to the Riverwalk, including appropriate active commercial and/or residential uses adjacent to the Riverwalk or providing a combination of these and/or other design features that support the resource enhancement and river engagement policies of the San Lorenzo River Plan.  SRFA-3: Maintain the ten-foot setback area between residential and commercial uses adjacent to the levee trail from the western edge of the trail. The area between the property line and the Riverwalk shall be filled to raise the adjacent ground-level use to a similar or higher elevation as the Riverwalk. The public lands between the Riverwalk and the private property may incorporate publicly accessible commercial or residential amenities, such as outdoor public seating. Trees planted as part of the San Lorenzo Flood Control Improvement Project should be maintained and incorporated into new development where feasible and where not in conflict with the required fill or publicly accessible amenities.

The project implements the Downtown Plan’s First Principles and the Planning Principles and Strategies in that the proposed building has its own unique character while still maintaining consistency with the design standards and guidelines within the Downtown Plan; the building height is consistent with Additional Height Zone B (although augmented by the Density Bonus Request); the project provides a substantial amount of housing with 276

40.14 dwellings; the project’s design creates a strong linkage of both the commercial and residential uses to the San Lorenzo River by having commercial and residential amenity uses on the east side of the building orientated toward the public plaza and Riverwalk; and the site layout enhances pedestrian and bicycle usage by connecting Soquel Avenue and the Riverwalk to the public plaza and the proposed indoor bicycle parking space.

The project is requesting additional height for a 70-foot tall base density project pursuant to the provisions of Additional Height Zone B. The project is consistent with criteria and standards for this additional height zone and meets the Additional Height Zone B objectives as follows:
i. The additional height will help to achieve the First Principles of the Downtown Plan (e.g. form, scale, housing, accessibility and open space).

The additional height to 70 feet allows the building to retain a form that provides architectural articulation as well as provide publicly accessible open space and access from Front Street to the Riverwalk via the Maple Paseo. The additional height allows for 116 more hotel rooms than would be created under a project that met only the base height, providing more visitor-serving accommodations and positive economic benefits to the downtown.
ii. The additional height will contribute to an improved social and economic environment; The Additional Height Request brings the building height to 70 feet and adds 116 more hotel rooms than would be accommodated within the 50-foot building base height. The result is a project that provides not only additional hotel rooms, but generates significant Transit Occupancy Tax, important conference/meeting room space, as well as restaurant and retail space in a location adjacent to the Riverwalk and walkable to many businesses in the downtown, generating economic and social activity in both of these areas.
iii. The form of the development promotes the appearance of a grouping of buildings rather than large monolithic building masses;
The building follows a development standard for Additional Height Zone B that requires a building façade break with a length of at least 15 feet and depth of at least 10 feet along the Front Street elevation, as well as required stepbacks. The project meets the performance criteria in the Additional Height Zone B section which are intended to promote the appearance of multiple building rhythms at ground, middle and upper levels to promote the appearance of a grouping of buildings rather than large monolithic building masses.
iv. The development receiving additional height will physically and/or financially contribute its fair share (through an Improvement District, Development Agreement or similar mechanisms) to the implementation of internal pedestrian connections between Front Street and the Riverwalk;

40.15 The parcel furthest north (APN 005-151-34) will remain owned by the city but will be improved with a 50-foot wide public paseo (Maple Paseo) connecting Front Street to the Riverwalk to be designed, constructed and maintained by the hotel. v. The additional height will help to meaningfully achieve one or more of the following key community objectives, including but not limited to: Economic Development Contributions to the Downtown, Affordable Housing, Day Care Center, exceed Green Building minimums, Incubator Space for Small Business, Public Access Easements, Public Right-of-way Improvements, Publicly Accessible Open Space, Structured or Shared Parking, and Transportation Demand Management concepts.

The Additional Height Request brings the building height to 70 feet and adds 116 more hotel rooms than would be accommodated within the 50-foot building base height. The result is a project that provides not only additional hotel rooms, but important conference/meeting room space, as well as restaurant and retail space in a location adjacent to the Riverwalk and walkable to many businesses in the downtown, generating economic and social activity in both of these areas. In addition, the project contributes a 50-foot wide public paseo (Maple Paseo) connecting Front Street to the Riverwalk which will be designed, constructed and maintained by the hotel. Compliance with Criteria vii. below will result in the contribution of funds toward the City’s Affordable Housing Trust Fund.
vi. Clear demonstration of the public benefit relating to two principal objectives: highquality public access between Front Street and the river, and the appropriate treatment of the riverfront edge along the Riverwalk.

The parcel furthest north (APN 005-151-34) will remain owned by the city but will be improved with a 50-foot wide public paseo (Maple Paseo) connecting Front Street to the Riverwalk to be designed, constructed and maintained by the hotel.

The proposed extension area includes amenities such an outdoor dining patio adjacent to the proposed restaurant and bar space, as well as an events lawn adjacent to the banquet/ballroom connecting this space to the adjacent Riverwalk. vii. Affordable Housing Public Benefit Fee For Non-Residential Projects. An application for additional height is voluntary. Because an applicant requesting additional height is receiving a benefit in the form of increased height and intensity and to ensure that non-residential projects which are granted additional height reasonably contribute to the City’s need for affordable housing, non-residential projects that are granted additional height shall be required to pay an in-lieu public benefit fee. The in-lieu public benefit fee shall be a minimum of $5.00 per square foot of gross floor area occurring above the 50-foot Base Height limit (i.e., the additional gross floor area occurring within the project on levels that exceed the 50-foot Base Height limit). The fee shall be paid prior to occupancy of the project. All fees provided collected under this section shall be deposited in the City of Santa Cruz’s affordable housing trust fund.

40.16 With the hotel qualifying as a Non-Residential project and requesting additional height, the project will be required to pay an in-lieu public benefit fee of at least $5.00 per square foot of gross floor area occurring about the 50-foot base height. With an estimated 45,500 square feet of gross floor area above the 50-foot base height, the minimum fee would be approximately $227,500 which will be required to be paid into the City’s affordable housing trust fund prior to occupancy of the hotel. A condition of approval has been included that speaks to this requirement.

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

The proposed Front Street ground-floor lobby entry, porte cochere, retail space, and café uses have a compatible height and size with other ground-floor commercial uses in the Front Street area. Additionally, the project proposes to fill the City-owned property between the east side of the new building and the levee and create a publicly accessible outdoor extension area connecting the development to the Riverwalk. This is consistent with the Downtown Plan as well as the other development occurring along the Riverwalk stretch between Soquel Avenue and Laurel Street. Conditions of approval to maintain outdoor seating areas and the extension area adjacent to the Riverwalk in a safe and clean manner ensure that these areas will not adversely affect adjacent properties or the public health, safety, and welfare. In regards to size and height, the surrounding area has projects either under construction or that have been approved that are six to seven stories and therefore are similar in size and height.

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

The proposed mixed-use project includes ground floor commercial uses and open spaces on the Front Street, Laurel Street, and Riverfront elevations. These improvements are compatible with the surrounding neighborhood that is comprised of ground floor commercial uses with upper floor residential, office, or parking garage uses. The scale and location of the commercial uses is therefore similar to that of the surrounding area.

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

The property is located in the Front Street/Riverfront neighborhood of the Downtown Plan, which includes design standards to ensure new development is consistent with the design and appearance of existing buildings and structures in the area. The exterior design and

40.17 appearance of the building is compatible with the design and appearance of development in the area that are six to seven stories in height. The project is consistent with the development standards of the Downtown Plan.

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

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

The 153,601 square foot, six-story building has a compatible scale to larger buildings in the downtown as well as new approved buildings such as the Front/Riverfront, Pacific/Laurel, Pac South, and Pac North developments nearly adjacent to the west and north. The site plan creates a well-connected development with a direct pedestrian and bike connection between downtown and the Riverwalk. The Riverwalk extension area also connects to the restaurant, bar and banquet room areas within the development, creating a building layout that balances and interconnects open space areas with commercial uses. The Laurel Street frontage and the extension area adjacent to the Riverwalk are well-landscaped, softening the view of the site from the public view and creating a harmonious transition to the San Lorenzo River.

The building has a consistent architectural style with a high level of detail on all elevations.

Siding materials include a brick base, precast concrete or cement plaster above, wood or wood composite slats and panels, charcoal glazed brick veneer, dark metal canopies, dark aluminum storefront windows and doors, and hedge planters with glass windscreens that reflect building materials of the surrounding area. The colors appear in a variety of patterns along the building face, breaking up the massing and creating interest along the elevations.

The building walls are punctuated by many windows, and vertical and horizontal detailing creates further relief. Balconies on upper floor units provide additional architectural detailing.

The proposed building would not block any significant public views identified in LCP Map CD-3 of the LCP or the visual sensitivity map included in the General Plan 2030 EIR. The site plan creates a public open space area between the new building and the Riverwalk that provides public views of the San Lorenzo River. Rooftop mechanical equipment is screened and compatible with the building design. A condition of approval requires all utility installations and mechanical equipment to be accessible and screened.

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

40.18 The project site is surrounded by mixed use and commercial uses, a metro transit bus station, and the San Lorenzo River. The proposed hotel project is located in a highly urbanized area of the City. The use is compatible with the surrounding commercial, and residential mixeduse developments and is not anticipated to negatively affect those uses. The San Lorenzo River provides habitat for birds and other species. The project is designed to meet stormwater retention and treatment regulations, which ensures the project does not impact water quality of the river. Conditions of approval required bird-safe glazing, railings, and landscaping on this side of the building to minimize bird-building strikes near this habitat area. The extension area adjacent to the Riverwalk provides for passive and light active (walking, bicycling, etc.) recreation adjacent to the River and also creates a transition from the urban nature of the new building to the adjacent natural area. Conditions of approval require the extension area to be maintained in a clean and safe condition and to regulate any large events in this location, which will ensure compatibility with the adjacent river.

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

The site has 24 trees, including seven street trees and seventeen trees located along the Riverwalk. Most trees inventoried were in good or fair condition. Due to the excavation for the new hotel in addition to the placement of fill between the levee and the proposed building to allow for the development of an outdoor extension area adjacent to the Riverway path, sixteen of the trees are recommended for removal, eleven of which are heritage. Two of the eight trees to be retained are street trees, and six are Riverwalk trees. An Arborist report prepared by Kurt Fouts dated April 13, 2021 inventoried the trees on the site and provided recommendations with regard to the project. The City Urban Forester has reviewed the arborist report and agrees with the recommendations. A condition of approval requires the project to follow the report’s recommendations.

Removal of the eleven heritage trees requires approval of a Heritage Tree Removal Permit, which is encompassed by the Coastal Permit since the site is in the Coastal Zone. The trees to be removed must be replaced with new trees at a ratio of either two 24-inch box trees or six 15-gallon trees for each tree to be removed, or by payment of a comparable in-lieu fee as allowed by the City Urban Forester. A condition of approval requires the project to meet the replacement requirement for these trees.

The riparian trees to be removed are potentially under the jurisdiction of the U.S. Army Corps of Engineers (ACOE) and/or the California Department of Fish and Wildlife (CDFW). A condition of approval require the project to obtain any required permits from these agencies prior to removing the riparian trees.

The Downtown Plan’s Guidance for Bird Safe Structures Along the San Lorenzo River calls for avoidance of transparent glass on building corners and walls and for design to avoid funneling open space to a building façade. The guidance measures also call for glass

40.19 treatment to create a visual signal or barrier to prevent birds from flying into the glass. The citywide Bird Safe Building Design Standards call for similar measures for glazing within 40 feet above the ground. To ensure the project is consistent with these standards, conditions of approval require glazing along the east side of the building facing the San Lorenzo River within 40 feet of the ground and all glazing within 30 feet of building corners to be treated in a manner accepted by the American Bird Conservancy.

The site does not have any significant natural landforms that the project would alter. The project involves filling a section of land adjacent to the existing man-made levee to the extent needed to create a connection between the new building and the Riverwalk.

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

There are no views of the ocean or designated scenic coastal areas identified on Map CD-3 of the LCP from or through the project site, and the site is not located in a scenic coastal area.

As the site is currently underdeveloped, development of the site with the proposed quality design will enhance the visual quality of the area.

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

Any noise or vibrations that may occur as a result of construction are temporary; once constructed, the proposed mixed-use development will not cause any noise, vibrations, or other factors beyond those normally associated with a commercial development that would make the environment less desirable. An environmental noise study for the project was prepared by Salter Inc. in March of 2022 and then was updated in November of 2022. The purpose of the study was to determine the noise environment at the proposed site, compare measured data with applicable City and state standards, and provide mitigation measures, as necessary, to meet those standards. In summary, the project will require sound-rated windows to reduce exterior noise intrusion in order to meet the State and local noise standards. A second noise study was prepared by SM&W dated March 13, 2024. That study evaluated construction noise control & operations. A condition of approval requires the project to implement the recommendations in both noise analyses. A standard condition of approval requires that the project operate in a manner that adheres to the City’s Municipal Code standards related to noise. The proposed extension area will be required to meet any local and outside agency regulations regarding outdoor dining, alcohol service, and events, which will ensure compatibility on the site.

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

40.20 The new building includes windows on all four elevations to allow light and air to pass through the building. Landscaping in the Riverfront extension area, Maple Alley, and along the Laurel Street frontage provide a natural cooling effect for the project site, and new trees provide shading. The flat roof provides space for solar photovoltaic equipment.

Boundary Line Adjustment, Section 23.12.030.1b

21. The parcels resulting from the lot line adjustment will conform to the general plan, any applicable specific plan, any applicable coastal plan, zoning and building ordinances.

The project site is comprised of five lots which the project consolidates into one lot through a sequential lot line adjustment. A lot line adjustment can be done with four or fewer parcels, and the consolidation of five parcels into two can be done sequentially through lot line adjustments that each involve no more than four lots. The resulting lot exceeds the 5,000 square foot minimum lot area for the Central Business District zone district. The existing buildings, as well as the proposed new development, conform to the zoning ordinance and California Building Codes with regard to construction assemblies in close proximity to the new lot lines.

22. A greater number of parcels than originally existed are not created by the lot line adjustment.

The lot line adjustment results in one lot, which is fewer than the five lots originally existing before the lot line adjustment.

Administrative Use Permit for Low-Risk Alcohol Outlet, Section 24.12.1104

23. The proposed use complies with all of the requirements of this section and Section 24.12.1106;
The alcohol related uses proposed as part of the project have been reviewed and determined to be in compliance with the mandatory requirement listed in Zoning Code Section

24.12.1106, The requirements have been included as conditions of approval in addition to conditions added by the Santa Cruz Police Department as part of the project review.

24. The proposed use will not adversely affect the health, safety or welfare of area residents, or uses, or will not result in a harmful concentration in the area of establishments dispensing, for sale or other consideration, alcoholic beverages, including beer and wine;
The proposed use will not adversely affect the health, safety, or welfare of area residents in that the proposed bar uses are located within the hotel structure or within the defined outdoor extension areas adjacent to the hotel facing the Riverwalk and are not adjacent to residential uses. Rooftop deck and bar uses have been evaluated through a noise study, and no significant impacts are anticipated as a result of those operations. Conditions of approval have been included to establish requirements that prevent nuisance issues. It has been determined that

40.21 the proposed use will not result in a harmful concentration in the area of establishments that dispense or sell alcohol.

25. The operational characteristics of the proposed use, such as live or amplified entertainment, will not have a negative impact upon the surrounding area; and Entertainment would be subject to an Entertainment Permit from the Police Department.

Conditions in this permit require that any entertainment be conducted in a manner that does not create a public or private nuisance. Entertainment is expected to be temporary and intermittent. Hours, locations, types of entertainment allowed, and other factors are regulated as part of this permit and as part of Entertainment Permits to ensure compatibility with the surrounding area. Conditions of approval are incorporated for live entertainment, regardless of the location of that entertainment on the site, so that the proposed use will not have a negative impact upon the surrounding area. Similarly, sound from the rooftop deck and bar were evaluated as part of a noise analysis from acoustical consultants SM&W, and noise levels from those uses are not expected to create adverse impacts on the nearby sensitive receptors (e.g., residences across Front Street) or other uses in the vicinity. Standard conditions of approval require that the use operates in a manner that adheres to the noise requirements of the City’s Municipal Code. Any non-compliance with conditions of an Entertainment Permit, including that the use operate in a manner that does not create a public or private nuisance, can result in revocation of the Entertainment Permit. As conditioned, the operational characteristics and associated safeguards (such as Entertainment Permit revocation) ensure that the proposed use will not have a negative impact on the surrounding area.

26. The proposed use is consistent with the surrounding neighborhood character.

The bar uses are common amenities associated with a hotel of this size and will be compatible with the surrounding uses in the downtown area.

Special Use Permit, Section 24.08.050

27. The proposed structure or use conforms to the requirements and the intent of this title, and of the General Plan, relevant area plans, and the Coastal Land Use Plan, where appropriate;
A Special Use Permit (SUP) is required to allow the development of the outdoor extension area within the Floodplain Zone District as part of the application. The purpose of the Zoning Ordinance includes, among other goals, an intent to protect and promote the public health, safety, morals, peace, prosperity, and the general community welfare. The outdoor extension area creates an outdoor public recreational area adjacent to the San Lorenzo River that adds to the general community welfare. Conditions of approval to maintain the extension area ensure a level of safety and community welfare within this outdoor area.

The project is located within the Central Business District (CBD) zone district. The intent of this district is to implement the objectives of the Downtown Plan, and the project is consistent

40.22 with the Downtown Plan. The outdoor extension area spans across land zoned CBD as well as land zoned Floodplain (F-P). Conditions of approval require the property owner to enter into a revocable license agreement to meet requirements for a revocable extension area license per the CBD zone district. The proposal is consistent with the development standards of the F-P zone district in that the site plan shows this area developed as an outdoor public space with pathways, seating, outdoor recreation spaces, and landscaping; the proposed grading plans show the dimensions of the existing land profile and the proposed level of fill on the exterior side of the levee; and fill will be on the exterior side of the levee and will not affect floodway capacity or flood heights. In addition, the project fulfills environmental review requirements with a conclusion that the project qualifies for a categorical exemption from CEQA for infill development and with a condition of approval to complete the Army Corps of Engineers permit and associated NEPA review required to fill the west side of the levee. The entire project site is within the Floodplain Overlay Zone District (FP-O). The site’s A-99 FEMA floodplain designation exempts all aspects of the project from the floodplain development standards of the FP-O zone district.

The majority of the project site, within the privately owned parcels where the new building is proposed, has a General Plan land use designation of Regional Visitor Commercial (RVC)/Downtown Santa Cruz, which emphasizes a mix of uses such as office and retail uses, residential and mixed-use developments, restaurants, and visitor attractions. The proposed hotel is consistent with the land use designation. The area of the project on City owned land east of the building to the Riverwalk that is proposed to be filled and landscaped with outdoor amenities has a land use designation of Natural Area. This designation provides for land that should remain in an undeveloped state to provide for habitat protection, public safety, or public recreation. The proposal creates a publicly accessible outdoor extension area consistent with the land use designation. The outdoor extension area is consistent with the following general plan policies:
 CD1.1.4 Identify and emphasize distinguishing natural features that strengthen Santa Cruz’s visual image (i.e., open space, Monterey Bay).
 CD1.4.2 Consider visual access to nearby natural areas as part of developmental review.  CD1.5.1 Enhance the prominence of the San Lorenzo River as a natural feature that provides structure, orientation, and recreational enjoyment by including it in surrounding area and management plans.
 CD1.5.2 Provide incentives for new development adjacent to the San Lorenzo River that includes patios overlooking the river, enhanced connections to the levee trails, and other design features that connect the built environment to the river.  CD3.1.1 Strengthen the linkage between Downtown, the Beach Area, and San Lorenzo River through amendments to corresponding Area Plans and the Zoning Ordinance.  CD3.1.2 Maintain, update, and implement the City’s San Lorenzo Urban River Plan.  CD4.1.3 Identify and establish design concepts that make visitor-serving corridors attractive and interesting through landscaping, banners, flags, art, and displays.  CD4.3.6 Implement streetscape and other landscaping plans in the City's Area and Specific Plans.
 CD5.2.1 Encourage buildings to be oriented towards sidewalks, public plazas, walkways, or rivers and to include features such as public benches and natural seating areas.

40.23  CD5.2.2 Encourage the incorporation of public benches and natural seating areas along public walkways and in public plazas and parks.
 CD5.2.4 Ensure that new and revised design guidelines encourage the use of pedestrianscaled fenestration, awnings, entrances, landscaping, and other amenities  LU2.3.1 Protect, maintain, and enhance publicly accessible coastal and open space areas.  LU3.11.2 Ensure appropriate land uses and development standards that do not adversely impact adjacent open spaces.
 M1.1.2 Connect activity centers with pedestrian and bicycle paths.  M2.1.2 Encourage use of alternative modes of transportation.  M4.1.6 Enhance the pedestrian orientation of the Downtown Central Business District.  M4.1.7 Require the site and building design facilitate pedestrian activity.  ED1.1.6 Revitalize the Riverfront area.
 ED1.7.2 Diversify the range of visitor attractions in Santa Cruz, particularly those that draw on the city’s unique natural and cultural assets.
 ED5.5.1 Enhance Downtown as a welcoming and inviting destination for residents, visitors, and businesses.
 ED5.5.4 Create a distinctive and active pedestrian environment downtown  ED5.5.5 Allow for the extension of café and retail uses within the public right-of-way, subject to design standards and management guidelines.
 PR1.1.3 Evaluate all lands, regardless of size, for their potential development as small parks, community gardens, or landscape lots.
 PR1.6.1 Maintain and enhance access for vehicles, transit, bicycles, and pedestrians.  PR3.1.1 Provide recreational and educational opportunities within the open space lands and coastline consistent with adopted master or management plans.  PR4.1.3 Maintain and enhance the recreational value of the San Lorenzo River walkway and the East and West Cliff Drive pathways
 NRC1.1.2 Where consistent with riparian and wetland protection, provide actual or visual access of a low-impact nature
The proposed extension area use of the project is consistent with and implements the following goals and policies of the San Lorenzo Urban River Plan:
 Improve the scenic and recreational value of the Riverfront  Improve public access and pedestrian/bicycle movement to and along the River  Improve the urban and neighborhood interface with the San Lorenzo River, Branciforte Creek, and Jessie Street Marsh
 Incorporate the San Lorenzo River, Branciforte Creek, and Jessie Street Marsh into the surrounding urban fabric of downtown and neighborhoods.  Front Street – Significant Riverfront Areas (SRFA)-1: Require new development projects to incorporate design features that encourage active engagement with the Riverwalk such as; filling adjacent to the Riverwalk and landscaping, providing direct physical access to the Riverwalk, including appropriate active commercial and/or residential uses adjacent to the Riverwalk or providing a combination of these and/or other design features that support the resource enhancement and river engagement policies of the San Lorenzo River Plan.  SRFA-3: Maintain the ten-foot setback area between residential and commercial uses adjacent to the levee trail from the western edge of the trail. The area between the property

40.24 line and the Riverwalk shall be filled to raise the adjacent ground-level use to a similar or higher elevation as the Riverwalk. The public lands between the Riverwalk and the private property may incorporate publicly accessible commercial or residential amenities, such as outdoor public seating. Trees planted as part of the San Lorenzo Flood Control Improvement Project should be maintained and incorporated into new development where feasible and where not in conflict with the required fill or publicly accessible amenities.

With regard to the Downtown Plan, the hotel’s extension area use implements the Downtown Plan’s First Principles as well as the plan’s Planning Principles and Strategies in that the proposed building has its own unique character while still maintaining consistency with the design standards and guidelines within the Downtown Plan; the building height is consistent with Additional Height Zone; the project provides an important visitor-serving use; the project’s design creates a strong linkage to the river by having commercial uses on the east side of the building orientated toward the Riverwalk; and the site layout enhances pedestrian and bicycle usage by connecting Front Street and Laurel Street to the Riverwalk.

The proposed project is consistent with the policies of the Local Coastal Program, including but not limited to the following policies:
 2.4.6 Provide for the development of supporting land uses adjacent to retail shopping areas (e.g., motels/hotels around visitor-shopping areas, and residences and offices around resident-serving shopping areas), while assuring protection of existing residential neighborhoods. (See policies under L 2.9, ED 2.3, ED 5.2)  5.3.5 Ensure that visitor-serving facilities are arranged and developed in a compact, integrated manner to reduce automobile circulation and emphasize pedestrian movement. (See policy ED 5.3)
 5.2 Encourage upgrades of existing hotel facilities and attract quality hotel and conference facilities in locations and scale appropriate to the City's character to enhance the quality of visitor-serving areas and promote development of the conference tourism market. (See policy ED 2.4.6)
 2.7.2 Improve the character and quality of visitor-serving commercial areas to encourage more off-season and overnight visits. (See policies under goal ED 5)  7.6 Improve the San Lorenzo River levee to provide an additional community “linear park” resource which serves as improved access to Downtown in accordance with river design concept plans. (P. 278)
 T-5 Access and pathways in the Front Street corridor should be designed to draw people out of the downtown to the River.
 SRFA –7 Ensure that any parcel consolidation strategy provides for public access from the Front Street sidewalk to the levee. Maintain the ten-foot step back requirement between buildings included in the Downtown Recovery Plan for any development. Encourage pedestrian traffic through creative inviting design and incorporate water features, gardens, paving, and stairways up the levee as design features.
 3.6 In pedestrian areas, require building design to be responsive to the pedestrian environment. These areas include but are not limited to Downtown, South of Laurel, the Beach, wharf, shoreline, and commercial shopping areas.  3.7 Require development to incorporate features to promote pedestrian use including new linkages to the pedestrian system. (See policy C 2.2.6)

40.25  2.6.3 Prioritize development of high-density mixed residential and commercial development in the City's Downtown Central Business District, North River Street, and South of Laurel areas over undeveloped lands at the periphery of the City. (See policies under CD 1.1, H 1.3.1.1, and H 1.3.1.3).
 5.2.1 Encourage the development of facilities that would help accommodate conference users in conjunction with existing hotels or new hotel development.  5.2.2 Investigate the attraction of a top-end, full-service hotel to expand and improve the year-round conference segment of the tourism market.

The Local Coastal Program encourages the expansion of visitor-serving accommodations in the Coastal Zone and will draw visitors to the downtown and nearby beach area. As proposed, the project is consistent with applicable policies of the Local Coastal Program, which seek to minimize the impact of development on coastal resources and provide visitor-serving uses in the beach area.

28. That any additional conditions stipulated as necessary in the public interest have been imposed;
In addition to conditions to ensure consistency with the Downtown Plan, conditions of approval require maintenance of the extension area in a clean and safe condition and removal of moveable furniture at the close of business to ensure that the extension area space will be maintained in a safe and nuisance-free manner. Finally, a condition of approval requires stairwell entrances to be illuminated, secured, and accessible to police and other emergency responders.

29. That such use or structure will not constitute a nuisance or be detrimental to the public welfare of the community; and
The outdoor extension areas are not expected to constitute a nuisance or otherwise be detrimental to the public welfare since the use will not produce odor, glare, sounds, or other nuisance features. For the development of the outdoor extension area, conditions of approval that require maintenance of the extension area in clean and safe condition and removal of moveable furniture at the close of business ensure that the space will be maintained in a safe and nuisance-free manner. Finally, a condition of approval requires stairwell entrances to be secured and accessible to police and other emergency responders.

30. That all thrift store uses shall include a management plan that identifies collection facilities for donated items, operating hours for donation facilities which discourage unsupervised dropoffs, adequate storage areas for sorting the materials, and provides a plan to properly dispose of unusable items in a timely, secure, and orderly fashion and maintains premises in a clean and attractive condition.

The project does not contain a thrift store; therefore, this finding does not apply.

Extension Area Revocable License Findings, Section 24.10.2340(6)(c)

40.26 31. The extension area in the particular location on the sidewalk will not adversely affect the use of the public street, will implement the Downtown Recovery Plan, and the General Plan.

The project includes fill between the outer edge of the levee and the building to expand the Riverwalk area west of the existing path. Commercial spaces face the Riverwalk and Maple Paseo, and the area is conditioned to be maintained in a safe and clean manner. The permit is conditioned to require the owner to obtain a modified Revocable License Agreement for the use and management of the expanded fill areas together with a perpetual Maintenance Agreement to sustain landscaping and improvements in an attractive manner for the life of the project. The extension area includes landscaping, seating opportunities, and commercial spaces that bridge the gap between the public and private realm, as encouraged by the Downtown Plan at the Riverwalk. The Riverwalk extension area does not adversely affect the use of a public street in that it is not located adjacent to a public street and is consistent with the goals in the Downtown Plan. Maple Paseo will not adversely impact a public street as it encourages non-motorized transportation from the adjacent transit center (Pacific Station), directs bicycle and pedestrian activity toward the Riverwalk and off of Front Street, and provides outdoor seating away from Front Street within the Paseo.

32. The proposed use will not be detrimental to persons residing, visiting, or working in the area.

The extension area at the Riverwalk is not detrimental to the general public in that conditions of approval are included that require maintenance of the extension area in clean and safe condition and removal of moveable furniture at the close of business. The presence of public and quasi-public commercial activity along the Riverwalk within the extension area promotes crime prevention though environmental design and is believed to help improve conditions for persons, residing, visiting, or working the area.

33. The proposed use will conform to all relevant regulations in the Municipal Code, and applicable county regulations and state law.

The use of the extension area conforms to all relevant regulations in the Municipal Code and the Downtown Plan and applicable County Environmental Health regulations and State Law in that the property owner and/or future tenants are required to obtain approval of all pertinent City, County and State agencies prior to construction and use, including but not limited to accessibility requirements, outdoor food service and alcohol service, entertainment, and outdoor programmed events.

Shoreline Protection Overlay District, Section 24.10.2430

34. Protect trees and vegetation and sensitive wildlife habitat; The project site is not located within any sensitive natural habitat or resource areas as mapped in the General Plan and the Local Coastal Program. An Arborist report prepared by Kurt

40.27 Fouts dated April 13, 2021 inventoried the trees in the project area, including along Front and Laurel Streets and the adjacent Riverwalk. Twenty-four trees were inventoried, including seven street trees and seventeen trees located along the Riverwalk. Most trees inventoried were in good or fair condition. Due to the excavation for the new hotel in addition to the placement of fill between the levee and the proposed building to allow for the development of an outdoor extension area adjacent to the Riverway path, sixteen of the trees are recommended for removal (eleven of which qualify as heritage). Two of the eight trees to be retained are street trees, and six are Riverwalk trees. The City Urban Forester has reviewed the arborist report and agrees with the recommendations. A condition of approval requires the project to follow the report’s recommendations and that the trees to be removed must be replaced with new trees at a ratio of either two 24-inch box trees or six 15-gallon trees for each tree to be removed, or by payment of a comparable in-lieu fee as allowed by the City Urban Forester.

35. Be consistent with the following criteria for bluff or cliff development:
a. The development is sited and designed to assure stability and structural integrity of its expected economic life span and minimize alterations to natural land forms. b. The development will not create or contribute significantly to problems of erosion or geologic instability on the site or on surrounding geologically hazardous areas. c. The development minimizes alteration of cliffs, bluff tops, faces or bases, and will not interfere with sand movement.
d. The development which proposes use of retaining walls shall be allowed only to stabilize slopes. Sea walls at the toe of sea cliffs to check marine erosion shall be allowed only where there is no less environmentally damaging alternative. e. The development within one hundred feet of any cliff or bluff line shall follow the recommendations of an approved geologic report by a registered geologist. The area where such a report is required may be increased where the issue of slope stability requires a greater distance from any cliff or bluff line.

Not applicable. The project is located inland from the first public roadway parallel to the sea and is not located on a coastal bluff or cliff.

36. Provide maximum erosion protection, using accepted engineering practices and other methods and specifications set forth in this title;
The project site does not contain steep slopes. Erosion control measures will be required as part of the grading permit. Plans submitted for building permits will be required to demonstrate compliance with the revised Chapter 6B of the City's Best Management Practices Manual – Storm Water BMPs for Private and Public Development Projects. Required documentation will include a Storm Water Control Plan following the guidance in Chapter 6B demonstrating compliance with the water quality treatment and runoff retention requirements, and an Operation and Maintenance Plan for stormwater control measures

40.28 incorporated in to the project design. Site plans shall contain notes and details on stormwater control measures incorporated in the project design.

37. Maintain public view corridors between the sea and the first public roadway parallel to the sea and maintain natural views of the coastline;
The project will not affect coastal views because the property is located behind Beach Hill and well inland from the first public roadway parallel to the sea and will not impact views between the sea and the first public roadway.

38. Protect paleontological resources as prescribed in the Land Use Plan; The site is not located within a mapped sensitive paleontological area. A condition of approval requires work to be stopped in the unlikely event that resources are discovered during construction.

39. Protect and enhance free public access to or along the beach, and sign such access when necessary;
The project includes development of Maple Paseo which provides a direct pedestrian and bike connection between downtown, public transit, and the Riverwalk as well outdoor extension area improvements between the building and the Riverwalk. These improvements protect and enhance the Riverwalk which provides access to the beach area for pedestrian and cyclists.

Wayfinding signage is anticipated within the Paseo.

40. Include mitigation measures prescribed in any applicable environmental document; Not applicable.

41. Be compatible with the established physical scale of the area; The project site is surrounded by developed urban commercial uses on the north, west, and south. The project is bordered by the Santa Cruz Riverwalk and San Lorenzo River on the east; urban commercial and residential developments exist to the east of the river. Mixed-use projects varying from six to eight stories consisting of residential uses with ground floor commercial uses, are being developed or are approved in the vicinity. Therefore, the proposed six-story hotel is compatible with the established physical scale of the area.

42. Be consistent with the design review guidelines of this title and the policies of any applicable area plan;
The project is consistent with the Downtown Plan and San Lorenzo Urban River Plan. The project implements the Downtown Plan First Principles and the Planning Principles and Strategies in several ways. The proposed building has its own unique character while still maintaining consistency with the design standards and guidelines within the Downtown Plan.

The building height is consistent with Additional Height Zone B. The project provides a

40.29 visitor-serving hotel which will in turn support other local businesses such as restaurants and retail in the downtown. The project’s design creates a strong linkage to the river by having the restaurant, bar and banquet uses on the east side of the building orientated toward the Riverwalk. Finally, the site layout enhances pedestrian and bicycle usage with an outdoor stairway and new accessible pathways connecting Front Street and the Riverwalk as part of the Maple Paseo.

The project is consistent with the following San Lorenzo Urban River Plan polices:
 Improve the scenic and recreational value of the Riverfront  Improve public access and pedestrian/bicycle movement to and along the River  Improve the urban and neighborhood interface with the San Lorenzo River, Branciforte Creek, and Jessie Street Marsh
 Incorporate the San Lorenzo River, Branciforte Creek, and Jessie Street Marsh into the surrounding urban fabric of downtown and neighborhoods.  Front Street – Significant Riverfront Areas (SRFA)-1: Require new development projects to incorporate design features that encourage active engagement with the Riverwalk such as: filling adjacent to the Riverwalk and landscaping, providing direct physical access to the Riverwalk, including appropriate active commercial and/or residential uses adjacent to the Riverwalk or providing a combination of these and/or other design features that support the resource enhancement and river engagement policies of the San Lorenzo River Plan.  SRFA-3: Maintain the ten-foot setback area between residential and commercial uses adjacent to the levee trail from the western edge of the trail. The area between the property line and the Riverwalk shall be filled to raise the adjacent ground-level use to a similar or higher elevation as the Riverwalk. The public lands between the Riverwalk and the private property may incorporate publicly accessible commercial or residential amenities, such as outdoor public seating. Trees planted as part of the San Lorenzo Flood Control Improvement Project should be maintained and incorporated into new development where feasible and where not in conflict with the required fill or publicly accessible amenities.

43. Be consistent with the policies of the Local Coastal Program, the General Plan, and the California Coastal Act.

The majority of the project site, within the privately owned parcels and where the building is proposed, has a General Plan land use designation of Regional Visitor Commercial (RVC)/Downtown Santa Cruz. The RVC/Downtown Santa Cruz designation emphasizes a mix of uses such as office and retail uses, residential and mixed-use developments, restaurants, and visitor attractions. The proposed use of the parcel as a hotel project is consistent with the intent of the RVC/Downtown Santa Cruz designation. The area of the project on City-owned land east of the building to the Riverwalk that is proposed to be filled and landscaped with outdoor amenities has a land use designation of Natural Area. This designation provides for land that should remain in an undeveloped state to provide for habitat protection, public safety, or public recreation. While the designation allows a public recreation use on a case-by-case basis, it should also be noted that the Downtown Plan and the San Lorenzo Urban River Plan requires such a use to be developed in this location as described below. The proposal creates a publicly accessible outdoor extension area connecting the

40.30 development to the Riverwalk in this area consistent with the land use designation. The proposed project is also consistent with many General Plan policies relating to visitor-serving uses, alternative transportation, open space access, and downtown area development as follows:
 Community Design CD1.1.4 Identify and emphasize distinguishing natural features that strengthen Santa Cruz’s visual image (i.e., open space, Monterey Bay).  Community Design CD1.4.2 Consider visual access to nearby natural areas as part of developmental review.
 Community Design CD1.5.1 Enhance the prominence of the San Lorenzo River as a natural feature that provides structure, orientation, and recreational enjoyment by including it in surrounding area and management plans.
 Community Design CD1.5.2 Provide incentives for new development adjacent to the San Lorenzo River that includes patios overlooking the river, enhanced connections to the levee trails, and other design features that connect the built environment to the river.  Community Design CD3.1.1 Strengthen the linkage between Downtown, the Beach Area, and San Lorenzo River through amendments to corresponding Area Plans and the Zoning Ordinance.
 Community Design CD3.1.2 Maintain, update, and implement the City’s San Lorenzo Urban River Plan.
 Community Design CD3.3.1 Develop incentives to encourage the assembly of small parcels through Area Plan amendments and Zoning Ordinance changes.  Community Design CD4.1.1 Support compact mixed-use development Downtown, along primary transportation corridors, and in employment centers.  Community Design CD4.1.1 Where possible, site buildings at the street frontage and place parking areas away from street corners and to the rear of buildings.  Community Design CD4.2.3 Underground utilities when major road improvement or reconstruction is proposed, if possible.
 Community Design CD4.3.6 Implement streetscape and other landscaping plans in the City's Area and Specific Plans.
 Community Design CD5.2.1 Encourage buildings to be oriented towards sidewalks, public plazas, walkways, or rivers and to include features such as public benches and natural seating areas.
 Community Design CD5.2.2 Encourage the incorporation of public benches and natural seating areas along public walkways and in public plazas and parks.  Community Design CD5.2.4 Ensure that new and revised design guidelines encourage the use of pedestrian-scaled fenestration, awnings, entrances, landscaping, and other amenities.
 Land Use LU1.1.2 Create incentives for the consolidation of underdeveloped parcels relative to development potential.
 Land Use LU1.2.1 Environmental review for specific projects shall be accompanied by sufficient technical data and reviewed by appropriate departments.  Land Use LU2.3.1 Protect, maintain, and enhance publicly accessible coastal and open space areas.

40.31  Land Use LU3.11.2 Ensure appropriate land uses and development standards that do not adversely impact adjacent open spaces.
 Mobility M1.1.1 Create walkable, transit-oriented activity centers throughout the city.  Mobility M1.1.2 Connect activity centers with pedestrian and bicycle paths.  Mobility M2.1.2 Encourage use of alternative modes of transportation.  Mobility Development Policy M1.3 - Create pedestrian-friendly frontage and streetscapes and attractive pedestrian-oriented areas.
 Mobility M4.1.6 Enhance the pedestrian orientation of the Downtown Central Business District.
 Mobility M4.1.7 Require the site and building design facilitate pedestrian activity.  Mobility M4.1.9 Require landscaping in the development, replacement, and repair of sidewalks, including the placement of trees on private property and/or in tree wells on sidewalks.
 Economic Development ED1.1.2 – Support the development and expansion of businesses that make a balanced contribution to the cultural, environmental, and economic health of the city.
 Economic Development ED1.1.3 - Encourage the development of year-round businesses and visitor activities, resources, and destinations that can also attract and engage local residents.
 Economic Development ED 1.1.6 - Revitalize the RiverFront area.  Economic Development ED 1.5.1 - Encourage the development of facilities that would accommodate conferences and conference-goers in conjunction with existing or new hotel development.
 Economic Development ED 1.5.2 - Attract a top-end, full-service hotel to expand and improve the year-round conference segment of the tourism market.  Economic Development ED1.7.2 - Diversify the range of visitor attractions in Santa Cruz, particularly those that draw on the city’s unique natural and cultural assets.  Economic Development ED 5.5.1 - Enhance Downtown as a welcoming and inviting destination for residents, visitors, and businesses.
 Economic Development ED 5.5.3 - Retain existing businesses and attract new ones to downtown Santa Cruz.
 Economic Development ED 5.5.4 - Create a distinctive and active pedestrian environment downtown.
 Economic Development ED5.1.1 Provide for the development of supporting land uses adjacent to retail shopping areas, while assuring protection of existing residential neighborhoods.
 Economic Development ED5.3.1 Provide for attractive commercial development (including more intensive and higher quality ground floor retail) along commercial corridors provided the uses are compatible with or transition easily to adjacent residential areas.
 Economic Development ED5.5.5 Allow for the extension of café and retail uses within the public right-of-way, subject to design standards and management guidelines.  Hazards, Safety, Noise HZ6.4.8 Minimize the alteration of natural floodplains, stream channels, and natural protective barriers that accommodate or channel floodwaters.

40.32  Parks, Recreation, and Open Space PR1.6.1 Maintain and enhance access for vehicles, transit, bicycles, and pedestrians.
 Parks, Recreation, and Open Space PR4.1.3 Maintain and enhance the recreational value of the San Lorenzo River walkway and the East and West Cliff Drive pathways  Natural Resources and Conservation NRC1.1.2 Where consistent with riparian and wetland protection, provide actual or visual access of a low-impact nature  Natural Resources and Conservation NRC1.1.1 Require setbacks and implementation of standards and guidelines for development and improvements within the city and adjacent to creeks and wetlands as set forth in the Citywide Creeks and Wetlands Management Plan.
 Natural Resources and Conservation NRC1.3.1 Conserve creek, riparian, and wetland resources in accordance with the adopted City-wide Creeks and Wetlands Management Plan and the San Lorenzo River Plan.

The proposed project requires a Coastal Permit because it is located within the Coastal Zone Overlay (CZ-O) district, with portions located within the Shoreline Protection Overlay (SP-O) District. The proposed project is consistent with the policies of the Local Coastal Program, including but not limited to the following policies:
 2.4.6 Provide for the development of supporting land uses adjacent to retail shopping areas (e.g., motels/hotels around visitor-shopping areas, and residences and offices around resident-serving shopping areas), while assuring protection of existing residential neighborhoods. (See policies under L 2.9, ED 2.3, ED 5.2)  5.3.5 Ensure that visitor-serving facilities are arranged and developed in a compact, integrated manner to reduce automobile circulation and emphasize pedestrian movement. (See policy ED 5.3)
 5.2 Encourage upgrades of existing hotel facilities and attract quality hotel and conference facilities in locations and scale appropriate to the City's character to enhance the quality of visitor-serving areas and promote development of the conference tourism market. (See policy ED 2.4.6)
 2.7.2 Improve the character and quality of visitor-serving commercial areas to encourage more off-season and overnight visits. (See policies under goal ED 5)  7.6 Improve the San Lorenzo River levee to provide an additional community “linear park” resource which serves as improved access to Downtown in accordance with river design concept plans. (P. 278)
 T-5 Access and pathways in the Front Street corridor should be designed to draw people out of the downtown to the River.
 SRFA –7 Ensure that any parcel consolidation strategy provides for public access from the Front Street sidewalk to the levee. Maintain the ten-foot step back requirement between buildings included in the Downtown Recovery Plan for any development. Encourage pedestrian traffic through creative inviting design and incorporate water features, gardens, paving, and stairways up the levee as design features.
 3.6 In pedestrian areas, require building design to be responsive to the pedestrian environment. These areas include but are not limited to Downtown, South of Laurel, the Beach, wharf, shoreline, and commercial shopping areas.

40.33  3.7 Require development to incorporate features to promote pedestrian use including new linkages to the pedestrian system. (See policy C 2.2.6)  2.6.3 Prioritize development of high-density mixed residential and commercial development in the City's Downtown Central Business District, North River Street, and South of Laurel areas over undeveloped lands at the periphery of the City. (See policies under CD 1.1, H 1.3.1.1, and H 1.3.1.3).
 5.2.1 Encourage the development of facilities that would help accommodate conference users in conjunction with existing hotels or new hotel development.  5.2.2 Investigate the attraction of a top-end, full-service hotel to expand and improve the year-round conference segment of the tourism market.

Surplus Lands General Plan Consistency Finding, Government Code Section 65402 Section 65402 of the Government Code requires a general plan consistency determination be prepared by the planning agency prior to the sale of public land, and the Planning Commission serves as the City’s planning agency. While the majority of the project site is privately owned (23,231 square feet), two city owned parcels are proposed to be sold to be incorporated in the project. The third city parcel (005-151-34) involved in the project will remain owned by the city, but would contain a 50-foot wide public paseo (Maple Paseo) connecting Front Street to the Riverwalk to be designed, constructed, and maintained by the hotel. The 4,623 square foot most southerly property consists of mostly landscaping, and the 4,407 square foot northerly parcel is currently surface parking. Both parcels are not being utilized for their highest and best use, and with a public parking garage to be constructed as part of the recently approved library project, new public parking will be available in the nearby vicinity to help with the downtown parking supply. The parcels are both within the Downtown Plan area where hotels are a principally permitted use, and as discussed above the proposed project is consistent with General Plan including the following policies:
 Economic Development ED1.1.2 – Support the development and expansion of businesses that make a balanced contribution to the cultural, environmental, and economic health of the city.
 Economic Development ED1.1.3 - Encourage the development of year-round businesses and visitor activities, resources, and destinations that can also attract and engage local residents.
 Economic Development ED 1.1.6 - Revitalize the RiverFront area.  Economic Development ED 1.5.1 - Encourage the development of facilities that would accommodate conferences and conference-goers in conjunction with existing or new hotel development.
 Economic Development ED 1.5.2 - Attract a top-end, full-service hotel to expand and improve the year-round conference segment of the tourism market.  Economic Development ED1.7.2 - Diversify the range of visitor attractions in Santa Cruz, particularly those that draw on the city’s unique natural and cultural assets.  Economic Development ED 5.5.1 - Enhance Downtown as a welcoming and inviting destination for residents, visitors, and businesses.
 Economic Development ED 5.5.3 - Retain existing businesses and attract new ones to downtown Santa Cruz.

40.34 The Downtown Plan speaks to visitor-serving uses that are sustainable and provide economic strength to the region. The first line of “The Community’s Vision” in the Downtown Plan states “Vibrant, vital and active, the central business district constitutes the primary retail, commercial, professional, and employment center for the City of Santa Cruz.” To achieve this, the General Plan contains policies and the Downtown Plan contains regulations that seek to attract more visitors and businesses to the downtown. The hotel will drive economic vitality in the downtown, bringing new visitors and tourists to the downtown, including during the off-peak season, which is critical to supporting downtown retailers, restaurants, and businesses. Adding a hotel to the mix of established businesses and attractions will contribute to the overall success of the downtown. In addition, the hotel development accomplishes many other key principles and strategies of the Downtown Plan, such as enhancing the open space and pedestrian network, creating new open space, celebrating the San Lorenzo River as a major open space, reinforcing the pedestrianoriented environment with ground-level and Riverwalk-level commercial spaces, seizing the opportunity to intensify development, strengthening downtown as a place of local and regional employment (both directly through jobs on site and indirectly through improved business travel opportunities in proximity to downtown businesses), concentrating commercial development in the downtown, and creating a stronger relationship between downtown and the beach by improving the Riverwalk and paseos that connects the two. Therefore, the City’s sale of the two surplus parcels to support the subject project is consistent with the General Plan and Downtown Plan.

While alternative uses are not proposed at this time, other uses of the two properties being sold would also be consistent with the City’s General Plan and Downtown Plan. The General Plan states that Downtown Santa Cruz “Emphasizes a mix of regional office and retail uses, residential and mixed-use developments, restaurants, and visitor attractions such as entertainment venues.

The Downtown Recovery Plan provides detailed requirements for this area.” The Downtown Recovery Plan (now renamed the “Downtown Plan”), in addition to supporting the hotel use that boosts local businesses and promotes economic activity, also supports a range of other uses, such as offices, residential (as a component of mixed-use projects with ground-floor commercial), entertainment, and other uses. Future development of the site with alternative uses to the hotel would also be consistent with the General Plan, if they follow the applicable allowable uses and principles from the General Plan and Downtown Plan.

With Respect to the California Environmental Quality Act (CEQA) A CEQA Categorical Exemption Review was prepared by Dudek. The review, included in the materials prepared for the March 26, 2024 City Council meeting, determined that the project is categorically exempt from environmental review under Article 19 of the California Environmental Quality Act (CEQA) Guidelines, Section 15332, related to infill development. The proposed changes to the conditions of approval address room rates and revised voluntary contributions towards low-cost accommodations, and they do not affect the initial CEQA determination. This Major Modification is also covered under the “common sense” CEQA exemption in CEQA Guidelines Section 15061(b)(3) in that it has no possibility that the action will have a significant effect on the environment.

40.35 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz that it hereby acknowledges the CEQA determination, authorizes, and approves the Major Modification to previously approved application file number CP21-0051 to amend the conditions of approval to add voluntary public benefits to the previously-approved six-story, 232-room hotel project with restaurant, bar, banquet, and other related facilities located in the CBD (Central Business District)/CZ-O (Coastal Zone Overlay)/SP-O (Shoreline Protection Overlay)/F-P (Floodplain)/FP-O (Floodplain Protection Overlay) Zone Districts And Within The Front Street/Riverfront Subarea of The Downtown Plan. zone district, subject to the Findings listed above and the updated Conditions of Approval listed in Exhibit “A,” attached hereto and made a part hereof.

PASSED AND ADOPTED this _____day of ________ 2024, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________
Fred Keeley, Mayor
ATTEST: _________________________
Bonnie Bush, City Clerk Administrator
EXHIBIT "A"

CONDITIONS OF APPROVAL FOR THE PROJECT ON PROPERTY AT

40.36 302, 310, 314, 324, 326, 328 Front Street – CP24-0097 Major Modification to Previously Approved Application File Number CP21-0051 to Amend the Conditions of Approval to Add Voluntary Public Benefits to the PreviouslyApproved Six-Story, 232-Room Hotel Project with Restaurant, Bar, Banquet, and Other Related Facilities located in the CBD (Central Business District)/CZ-O (Coastal Zone Overlay)/SP-O (Shoreline Protection Overlay)/F-P (Floodplain)/FP-O (Floodplain Protection Overlay) Zone Districts And Within The Front Street/Riverfront Subarea of The Downtown Plan. (Environmental Determination: Categorical Exemption, Section 15332 & Statutory Exemption 15061(b)(3))

1. If one or more of the following conditions is not met with respect to all its terms, then this approval may be revoked.

2. All plans for future construction which are not covered by this review shall be submitted to the City Planning and Community Development Department for review and approval.

3. This permit shall be exercised within three (3) years of the date of final approval or it shall become null and void. When a building permit is required, a zoning permit shall be considered exercised following the issuance of a valid building permit. When only an occupancy permit is required, a zoning permit shall be considered exercised when the occupancy permit is issued.

4. If, upon exercise of this permit, this use is at any time determined by the Planning Commission to be incompatible with the surrounding neighborhood, revocation of, or amendment to, this permit by the Planning Commission could occur.

5. The use shall meet the standards and shall be developed within limits established by Chapter

24.14 of the Santa Cruz Municipal Code as to the emission of noise, odor, smoke, dust, vibration, wastes, fumes or any public nuisance arising or occurring incidental to its establishment or operation.

6. The applicant shall be responsible for the completeness and accuracy of all forms and supporting material submitted in connection with any application. Any errors or discrepancies found therein may result in the revocation of any approval or permits issued in connection therewith.

7. All final working drawings shall be submitted to the Zoning Administrator for review and approval in conjunction with building permit application. The plans submitted for building permits shall have the same level of articulation, detailing, and dimensionality as shown in the approved plans. All approved exterior finishes and materials shall be clearly notated on the building permit plans.

8. The applicant and contractor who obtains a building permit for the project shall be required to sign the following statement at the bottom of these conditions, which will become conditions of the building permit:
“I understand that the subject permit involves construction of a building (project) with an approved Design Permit. I intend to perform or supervise the performance

40.37 of the work allowed by this permit in a manner which results in a finished building with the same level of detail, articulation, and dimensionality shown in the plans submitted for building permits. I hereby acknowledge that failure to construct the building as represented in the building permit plans, may result in delay of the inspections process and/or the mandatory reconstruction or alteration of any portion of the building that is not in substantial conformance with the approved plans, prior to continuation of inspections or the building final.”
Signature of Building Contractor Date

9. All requirements of the Building, Fire, Economic Development, Public Works, and Water Departments shall be completed prior to occupancy and continuously maintained thereafter.

10. The property owner and/or project applicant agree(s) as a condition and in consideration of the approval of this discretionary development permit that it will, pursuant to agreement and/or statutory provisions as applicable, including but not limited to Government code Section 66474.9, defend, indemnify and hold harmless the City of Santa Cruz or its agents, officials, officers and employees from any claim, action or proceeding against the City or its agents, officials, officers or employees to attack, set aside, void or annul this approval, which action is brought within the time period provided for under law, including but not limited to, Government Code Section 66499.37, as applicable. The property owner and/or project applicant will reimburse the City for any court costs and attorney’s fees, which the City may be required by a court to pay as a result of such action. City may, at its sole discretion, participate in the defense of such action; but such participation shall not relieve the property owner and/or project applicant of these obligations under this condition. An agreement to this effect shall be recorded upon demand of the City Attorney or concurrent with the issuance of building permits, use of the property, filing of the final map, whichever occurs first and as applicable. The City shall promptly notify the property owner and/or project applicant of any such claim, action or proceeding and the City shall cooperate fully in the defense thereof. If the City fails to promptly notify the property owner and/or project applicant of any such claim, action or proceeding or fails to cooperate fully in the defense thereof, the property owner and/or project applicant shall not thereafter be responsible to defend, indemnify or hold the City harmless.

11. The applicant and/or property owner shall be responsible for ensuring that any existing buildings approved for demolition or conversion remain occupied by a tenant or, if any buildings are vacant or become vacant prior to demolition or conversion, that these buildings are adequately secured to prevent break-ins and other vandalism. All windows, doors, and other openings into vacant buildings shall be completely covered and a six-foot tall chain link fence shall be installed around the perimeter of the property. Graffiti shall be removed or painted over within 72 hours. If a break-in occurs, the applicant and/or property owner shall, within 24 hours, clean the site of trash and debris, and re-secure the site and building(s).

Additionally, following a break-in, the applicant/property owner shall provide the Planning

40.38 Department, SCFD Fire Marshall and SCPD with a copy of a signed contract with a private security company to provide ongoing monitoring of the site. If a break-in or other public safety concern occurs at the site that requires an emergency response, the applicant and/or property owner shall be responsible for paying the fully burdened hourly rates for Police, Fire, Code Compliance, or other City Staff to respond and follow up.

PRIOR TO BUILDING PERMIT APPLICATION:

12. Pursuant to Section 66412(d) of the California Government Code the following requirements have been imposed in order for the lot-line adjustment to conform with the City's Zoning and Building Ordinances, or to facilitate the relocation of existing utilities, infrastructure, or easements:
 The lot line adjustment shall be recorded as a sequential lot line adjustment, with each lot line adjustment involving no more than four lots;
 For each sequential lot line adjustment, a new property description shall be recorded with the County Recorder's office and a copy of the recorded description provided to the City Planning Department. The deed(s) of conveyance must contain the following statement after the description of the property(ies) or portion(s) of property to be transferred:
"The purpose of the deed is to adjust the boundary between Lots [insert lots here] as approved by the City of Santa Cruz under Application CP21-0051. This conveyance may not create a separate parcel and is null and void unless the boundary is adjusted as stated."  Prior to recordation of the Lot Line Adjustments, accommodations shall be made to ensure that the City retains possession of the portion of the southernmost lot (005-151- 48) located at the northeast corner of Front and Laurel Streets that falls within the public right-of-way and any additional right-of-way necessary and not yet dedicated to facilitate completion of the Downtown Intersection Improvements Project, which is planned to widen the intersection of Laurel Street, Front Street, and Broadway; provided that additional right-of-way does not materially impact development of the project as approved.

13. The sequential lot line adjustments needed to establish the project site shall be recorded prior to approval of any demolition, grading, or building permit.

14. The applicant shall apply for and obtain new addresses for the site from the City Planning Department.

15. Prior to building permit application, applicant shall pay any outstanding fees associated with environmental review or preparation of documentation for federal permits.

PRIOR TO BUILDING PERMIT ISSUANCE:

16. Adequate provisions shall be made to supply water to each of the premises covered by this application. The design of water facilities shall be to standards of the Water Department and plans therefore must be submitted to the Water Department Director for review and approval prior to the issuance of a building permit.

40.39 17. Landscape and irrigation plans shall be submitted at the time of the building permit application and will be reviewed by both the Planning Department and Water Department.

The landscape and irrigation plans shall demonstrate compliance with all requirements of the City’s Water-Efficient Landscaping Ordinance in Chapter 16.16 of the Santa Cruz Municipal Code prior to issuance of the building permit.

18. Public Improvement Agreement for Fill Structure and Levee Improvements. The applicant shall work with the Public Works Department to record an agreement addressing the fill structure adjacent to the levee, which may include easements or other such rights necessary for construction of the fill and Levee improvements. The agreement(s) shall require that the applicant or Project Owner, and its successors are responsible for ongoing maintenance of the fill area and any damage to the levee resulting from installation or maintenance of the fill, the project or any associated work or environmental conditions over the life of the project. It shall also be specific as to the design, engineering, and construction of the fill and Riverwalk improvements including detailing all utilities, both public and private, within the fill structure. The agreement(s) shall also include the tree and landscape maintenance responsibilities per the flood control improvement project.

The Project developer shall design, construct, and maintain the proposed public improvements between Front Street and the San Lorenzo River (the “Maple Alley Paseo”) as more particularly shown on the approved plans and as specified in the Public Improvement Agreement, unless otherwise directed by the City in writing, and subject to City specifications and approval. The design of the paseo shall be in accordance with the accepted principles of crime prevention through environmental design (CPTED) to the satisfaction of the City. The Project shall enter into a maintenance agreement for the paseo and Riverwalk (Levee) Improvements with the City prior to the Certificate of Occupancy to the satisfaction of the City. The Maintenance Agreement shall require the Project owner to maintain all public or quasi-public improvements, landscaping, trees, fixtures, and furnishings on public property for the life of the project, which may include periodic replacement or restoration of materials upon terms set in the Agreement.

19. Section 408 Army Corps of Engineers Permit: Prior to the issuance of a building, grading, or demolition permit for the site, a Section 408 Permit shall be issued for the project by the Army Corps of Engineers (ACOE). The plans approved by the ACOE must be consistent with the plans submitted for building/grading permit issuance and the applicant must demonstrate that the ACOE has approved the landscaping plans submitted with the building permit application.

The applicant shall be responsible for the documentation, consultants, and fees related to obtaining the Section 408 Permit.

20. The project shall provide replacement trees or an equivalent in-lieu fee, as determined by the City Urban Forester, for the eleven heritage trees approved for removal due to their location within the project footprint. Replacement trees shall be shown on the building permit plans at a ratio of two 24-inch box tree or six 15-gallon trees for each of the four trees to be removed and shall identify a location, size, and species as approved by the City Urban Forester. If an in-lieu

40.40 fee is provided, the fee shall be paid prior to issuance of any demolition, building, or grading permit or removal of any heritage trees.

21. Prior to building permit approval, and prior to removal of any riparian tree, applicant shall submit evidence of a permit from Army Corps of Engineers to remove the existing riparian trees within the project site.

22. Final colors, materials and transitions shall be approved by the Zoning Administrator prior to approval of building permits.

23. Prior to issuance of the building permit, the property owner shall sign and submit a BMP maintenance agreement ensuring that they will provide long-term operation and maintenance of structural storm water control measures (see template in Appendix C of Chapter 6B Storm Water BMPs for Private and Public Development Projects). The signed maintenance agreement should be attached to the O&M Plan.

24. Prior to issuance of the demolition permit(s), the applicant shall obtain a building permit for the construction of the new building. Issuance of the demolition permit may be made prior to building permit issuance at the discretion of the Planning Director, if building permit plan check is nearing completion and permit issuance is eminent or if special circumstances warrant earlier demolition.

25. Prior to issuance of a demolition, building, or grading permit, the applicant shall meet the requirements of the Santa Cruz County Environmental Health (SCCEH) Department.

26. Final building permit plans shall include the following:
a. Plans submitted for building permit issuance shall include electric vehicle charging stations as required per Section 24.12.241 of the Zoning Ordinance. b. Plans submitted for building permit issuance shall show all exterior site lighting locations and fixture details. All exterior building lighting shall be shielded and contained in a downward direction. No exterior lighting shall produce off-site glare. Exterior site lighting shall be provided along pedestrian pathways and in the vehicle parking area. Security lighting shall be motion sensor only.
c. Building permit plans shall specify the glass treatments consistent with the City of Santa Cruz Bird Safe Building Design Standards (City Standards) for building exteriors within 40 feet of grade and facing the San Lorenzo River. Treatments should follow the “2” x 4” rule” included in the City Standards and may include:
o Bird safe glass approved for use by the American Bird Conservancy o Fritted windows
o Patterned windows
o UV pattern film (not appropriate for all locations)
o Window nets
o Window screens
o Any American Bird Conservancy approved product:https://abcbirds.org/glasscollisions/stop-birds-hitting-windows/

40.41 o Other design measures identified by a qualified biologist with a background in ornithology as providing adequate bird protections and that do not conflict with required findings for a Planning Permit.
d. Bicycle parking shall be provided in accordance with Section 24.12.250-252 of the City's Zoning Ordinance and shall be shown on final building permit plans. e. All utilities and transformer boxes shall be placed underground in accordance with the provisions of Section 24.12.700 through 24.12.740 of the Zoning Ordinance. Location of utilities and transformer boxes shall be shown on final building permit plans. Pursuant to Chapter 24.12, Part 8 of the Zoning Ordinance the project shall install dark conduit for future expansion of the City’s broadband network along its street frontage. f. A drainage plan shall be submitted in conjunction with application for building permits. g. Final building permit plans shall indicate the type of glass used in all ground level windows.

The use of reflective or tinted glass in ground level show windows is prohibited. h. Final building permit landscape plans shall indicate the height at maturity of all plants proposed in the Riverwalk extension area. All plants proposed in this area, other than trees, shall be no more than 42 inches in height at maturity.
i. Final building permit plans shall include a lighting plan that shows exterior lighting at all building entryways and stairways.
j. Final building permit plans shall not include any up-lighting or spotlights. k. Building permit plans shall show design of roof drainage. l. Final building permit plans shall include a lighting plan that provides the following: lighting shall be incorporated into the facade of the building and shall complement the style of the building. Lights on buildings shall not be glaring to pedestrians and shall illuminate only the extension area and the activities within. General illumination shall be at 5 foot-candles, with a maximum of 10 foot-candles. Table lamps or candles are encouraged in cafe areas. m. All commercial spaces shall allow for future food and/or beverage service uses. Final building permit plans shall identify the venting and grease trap locations for the restaurant space as well as possible future venting and grease trap locations for commercial spaces 1, 3, and 4. n. Development shall meet any applicable flood zone requirements, including but not limited to FEMA requirements, any applicable regulations in Parts 21 and 28 of Chapter 24.10 of the Zoning Ordinance, and any other applicable flood requirements. o. The vehicular driveway exit from the hotel may include an automated warning buzzer, sign, or other mechanism to alert pedestrians of outgoing vehicles, to the satisfaction of the Public Works and Planning & Community Development Directors.

27. A pre-construction nesting bird survey shall be conducted by a qualified biologist if construction, including tree removal, adjacent to the San Lorenzo River, is scheduled to begin from February 1 to August 31 to determine if active nests are present in or near the construction sites. The survey shall be conducted no more than seven days before the start of any construction activities on the site (including tree removal, clearing, and excavation). If nesting bird species protected under the Migratory Bird Treaty Act and/or California Fish and Game Code (§3503) are found and the biologist determines that construction activities could result in the removal of an active nest or cause mortality of eggs or young, the biologist shall identify a suitable nodisturbance buffer around the nest in which no work would be allowed until after the biologist has determined the nest is no longer in use or the young have fledged. Alternatively, construction may be delayed until after the nesting season (i.e., September). The nesting survey

40.42 shall be submitted to the Planning Department for review and approval prior to the start of construction.

28. Rooftop structures, shade canopies, and equipment shall meet appliable setbacks, heights, and any other applicable criteria from the Downtown Plan or Zoning Code Section 24.12.150. The shade structures proposed as part of the rooftop pool area shall meet the required 15-foot setback from the roof edge. This shall be demonstrated on the construction drawings as part of the building permit plan check review.

29. Prior to the issuance of the first building permit, the applicant shall contribute to the provision of affordable housing in accordance with the Downtown Plan by providing an in-lieu public benefit fee payment to the City of Santa Cruz of $5.00 per additional square foot of floor area above the base height limit as required by the certified Local Coastal Program.

In addition, prior to the issuance of a certificate of occupancy, the applicant shall enter into a recorded agreement with the City of Santa Cruz to implement an affordable workforce housing program whereby the hotel operator would lease no fewer than four market rate offsite dwelling units located within the City of Santa Cruz (studios and 1-bedrooms, at the applicant’s discretion), with preference for units in the downtown area, and make them available at subsidized rents for qualifying low or very-low income employees of the hotel as affordable workforce housing for a period of 20 years. The agreement shall be subject to the review and approval of the Economic Development & Housing Director. If required by applicant’s lender as a condition to any construction or other financing to be secured by the hotel, such agreement shall also be fully subordinated to the deed of trust in favor of such lender. Rents shall be subsidized such that hotel workers would be paying no more than 30% of their income, with income verification conducted by the hotel operator. Compliance monitoring shall occur on an annual basis and require the hotel operator to provide a certification and sworn affidavit, in a format to be agreed upon by the applicant and the City of Santa Cruz, indicating how the project is complying with the program, the location and type of unit leased, and amount paid for rent. In the event that the applicant demonstrates that, despite good faith efforts, it is not feasible to implement the program described above prior to occupancy, the applicant may alternatively provide an in-lieu public benefit fee equivalent to the average construction cost of providing four low-income units, similar to the in-lieu fees authorized in compliance with Section 24.16.030(6) of the City’s Zoning Ordinance, which shall be calculated based on the average production cost per unit of the three most recently completed affordable housing projects in the City of Santa Cruz.

30. If a vibratory ground improvement system, such as vibro replacement stone columns (VSCs), is selected for the project, require vibration data be provided by the ground improvement contractor prior to construction so that potential effects to adjacent structures can be evaluated, and that continuous vibration monitoring be performed during installation of the VSCs to make sure structural vibration criteria is not exceeded.

31. Prior to building permit issuance or at a later time, no later than certificate of occupancy, with said payment timing subject to the discretion of the Director of Public Works, the applicant shall contribute fair-share payments for improvements at the following intersections: Front/Soquel (signal timing and lane modifications); Front/Laurel (westbound

40.43 lane addition and north and south right-turn overlap); and Pacific/Laurel (southbound leftturn lane addition), consistent with the EIR prepared for the Downtown Plan Amendments in 2017.

DURING CONSTRUCTION:

32. All refuse and recycling activities during construction shall be done in accordance with Chapter

6.12 of the Santa Cruz Municipal Code. Be aware that private companies offering refuse or debris box services are not allowed to operate within the City limits, except under certain limited circumstances detailed in Chapter 6.12.160.

33. Any person exercising a development permit or building permit who, at any time in the preparation for or process of excavating or otherwise disturbing earth, discovers any human remains of any age or any artifact or any other object which reasonably appears to be evidence of an archaeological/cultural resource or paleontological resource, shall:
a. Immediately cease all further excavation, disturbance, and work on the project site; b. Cause staking to be placed completely around the area of discovery by visible stakes not more than ten feet apart forming a circle having a radius of not less than one hundred feet from the point of discovery; provided, that such staking need not take place on adjoining property unless the owner of the adjoining property authorizes such staking; c. Notify the Santa Cruz County sheriff-coroner and the city of Santa Cruz planning director of the discovery unless no human remains have been discovered, in which case the property owner shall notify only the planning director; d. Grant permission to all duly authorized representatives of the sheriff-coroner and the planning director to enter onto the property and to take all actions consistent with this section.

34. Grading shall be done during periods of dry weather and protective measures shall be incorporated during grading to prevent siltation from any grading project halted due to rain.

35. Prior to site grading or any disturbance all trees and/or tree stands indicated for preservation or approved plans shall be protected through fencing or other approved barricade. Such fencing shall protect vegetation during construction and shall be installed to the satisfaction of the Director of Planning and Community Development.

36. The project shall implement all recommendations of the arborist report by Kurt Fouts dated April 13, 2021.

37. All new trees shall be a minimum 15-gallon size.

38. The project shall implement all recommendations of the two noise assessment studies: 1)The Cruz Hotel, Santa Cruz, CA prepared by Salter Inc. dated March 2022; and 2) Construction Noise Control & Operational Assessment prepared by SM&W dated March 13, 2024.

39. All diesel-fueled off-road construction equipment greater than 75 horsepower shall be zero-emissions or equipped with California Air Resources Board (CARB) Tier 4 Final or Interim compliant engines. Alternatively, CARB Tier 2 or 3 compliant engines may be

40.44 used if CARB Level 3 Verified Diesel Emissions Control Strategy (VDECS) filters are added to each piece of off-road diesel-fueled equipment.

PRIOR TO BUILDING PERMIT FINAL/OCCUPANCY:

40. The development of the site shall be in substantial accordance with the approved plans submitted and on file in the Department of Planning and Community Development of the City of Santa Cruz. All aspects of construction must be completed prior to occupancy. Major modifications to plans or exceptions to completion may be granted only by the City authority which approved the project.

41. All landscaping shall be installed prior to final utility release or issuance of occupancy permits, and shall be subject to a minimum 1 year establish period with warranty.

42. All new mechanical equipment and appurtenances, including gas and water meters, electrical boxes, roof vents, air conditioners, antennas, etc. visible from the public way and from adjacent properties, shall be screened with material compatible with the materials of the building and shall be subject to the approval of the Zoning Administrator.

43. Prior to final occupancy, the applicant shall file a trespass letter with the Santa Cruz Police Department (SCPD) in accordance with Santa Cruz Municipal Code section 9.60.012 providing SCPD the authority to remove trespassers on the premises when closed to the public.

44. Prior to final occupancy, the applicant, or its assignee, shall enter into Revocable License Agreement(s) for operation and maintenance of the extension area(s), including but not limited to the outdoor dining or other uses by the property owner(s) or tenant(s) on public property.

This requirement shall apply regardless of any easement rights that may be granted. The Owner may use credits, if established by the aforementioned Maintenance Agreement, toward any applicable Extension Area fees required by the City for such Extension Areas.

45. Perpetual Maintenance. Prior to Issuance of a Certificate of Occupancy for the Project, Owner shall execute an Agreement with the City by which the Owner shall provide, at Owner's sole cost, the ongoing maintenance, integrated pest control, and security of all exterior areas of the project, including, without exception, all public and extension areas, such as landscape, furnishings, lighting, and improvements along the Riverwalk as well as the Maple Paseo. This Agreement may establish maintenance credits for the Owner toward any applicable Extension Area Fees based upon Owner's annually documented cost of maintenance and security for the public areas. Owner shall be responsible for the periodic rehabilitation or replacement of certain furnishings, improvements, and landscape matter identified within the Maintenance Agreement.

OPERATIONAL CONDITIONS:

46. The project plans shall specify exterior lighting that is downcast and avoids up-lighting and spotlighting. During operation of the project, non-emergency lighting shall be turned off

40.45 (such as by automatic shutoff), or shielded, at night to minimize light from buildings that is visible to birds, especially during bird migration season (February-May and AugustNovember).

47. Prior to issuance of a certificate of occupancy for the Project, including any Temporary Certificates of Occupancy, Owner shall execute an Agreement with the City to memorialize Owner’s obligation to provide hotel guests with a voluntary option to provide a financial contribution to the City for (1) affordable housing creation and preservation, (2) addressing and reducing conditions of homelessness in the City, and (3) projects or purposes that benefit the Santa Cruz Riverwalk and related environmental conservation, activation, and restoration efforts, such as programs or initiatives by the City, Coastal Watershed Council or similar community organizations. Owner shall allow hotel guests to direct the payment of any fee to one or more of the designated purposes. All payments provided by hotel guests in connection with the voluntary fee program will be remitted to the City in the same manner as transient occupancy taxes.

48. Prior to commercial/business use of a building or site, owners or tenants shall obtain a Zoning Clearance/Occupancy Permit from the City Planning Department and a Business License from the City Finance Department.

49. The use shall operate in conformance with Chapter 9.36 of the Municipal Code (Noise).

50. The applicant shall enter into a Revocable Expansion Area Agreement with the City that will outline the allowable uses, and hours of operation. Any entertainment must adhere to the requirements of Condition #64 and must be conducted according to City rules and in a manner that does not create a public or private nuisance. Any Public/Major Special Events on the premises shall be conducted in accordance with Chapter 10.64 of the Municipal Code, with requisite permit applications being filed in accordance with the timelines outlined therein. Subsequent to occupancy of the premises, all landscaping shall be permanently maintained. The City reserves the right to reserve outdoor public property for events, provided such events do not prohibit existing or planned activities otherwise authorized in the Revocable Expansion Area Agreement.

51. Street front entries shall remain unlocked and unblocked and shall remain in use during store hours.

52. Store displays shall be configured in such a way as to allow pedestrians to see into the store from the sidewalk. Goods, posters, photos or other visual images shall be placed a sufficient distance from the store windows to enable pedestrians to see clearly into the store.

53. Turn non-emergency exterior lighting off (such as by automatic shutoff), or shield it, at night to minimize light from buildings that is visible to birds, especially during bird migration season (February-May and August-November).

54. Any signage for commercial spaces shall obtain a Sign Permit and any required building permit prior to installation of such signage.

40.46 55. All outdoor furniture (e.g., tables, chairs, retailing stands) shall be durable, well maintained, and of a high quality, suitable for outdoor use; such furniture shall be light, not heavy or massive in nature, to ensure that it does not visually dominate the street.

56. The design materials and colors used for outdoor chairs, tables, display stands, lighting, and other fixtures (including umbrellas and awnings) shall be generally consistent with both the architectural style and colors used on the building façade.

57. The Riverwalk extension area shall be managed and maintained in a manner to keep it clean, safe, nuisance free, and consistent with other laws and regulations.

58. Outdoor moveable furniture shall be removed at the close of business hours.

59. Stairwell entrances shall be secured and shall be accessible to police and other emergency responders.

60. Alcohol present at location must be served in accordance to the existing Alcohol Beverage Control license conditions.

61. Intoxicated people will not be served and/or consume alcohol on the premises. Persons under the age of twenty-one (21) will not be served and/or consume alcohol.

62. Persons serving alcohol shall attend a Responsible Beverage Service type class with the Santa Cruz Police Department (or other approved agency).

63. An operational and recorded video surveillance system is to be in place on the premises. The system shall provide video surveillance coverage of all common areas where alcoholic beverages are served and consumed, and shall also provide video surveillance coverage of the exterior of the premises, including the entire parking lot and interior parking garage, all building and garage vehicle and pedestrian entry/exit areas, all common stairwells (including emergency stairwells), all elevators, lobby areas (including elevator lobbies), all common residential floor hallways (all floors), any exterior courtyards, any entertainment areas, and any common pool or recreational areas. The system must maintain at least twenty eight (28) days of recorded video storage which must be made available to law enforcement when requested.

64. Live entertainment is permitted with the hotel and on the riverwalk, subject to the approval and issuance of a revocable Entertainment Permit from the Police Department and subject to the following conditions:
a) Within the restaurant (interior and exterior) and outdoors within the Riverwalk extension area, live entertainment shall be incidental only and shall only occur between the hours of 8:00 a.m. and 10:00 p.m.
b) For indoor events, such as weddings or conferences, live entertainment shall be permitted pursuant to the conditions of an Entertainment Permit and shall comply with the City’s noise ordinance.

40.47 c) Live entertainment, including DJ’s, is not permitted at rooftop deck and pool area without a modification of this permit.
d) Hours of events may be further limited at any time at the discretion of the Police Department in order to fulfill nuisance avoidance or other objectives. e) Entertainment Permits shall be conditioned to ensure that any uses operate in a manner that does not create a public or private nuisance related to noise or other issues. f) The number of events is not limited by this permit and shall be specified as part of an Entertainment Permit.
g) Entertainment Permit conditions can be modified by the Police Department, and any Entertainment Permit is revocable if non-compliance occurs.

65. Exterior lighting is to be in place on the premises. The exterior of the premises, including the parking lot, interior garage areas, and vehicle and pedestrian entry/exit areas, should have sufficient lighting for security purposes.

66. Borders shall be in place separating any outdoor seating area and any public space to provide separation between any alcohol service area and any public area. The borders shall not be topped with a flat surface to avoid alcoholic beverage placement.

67. A sign shall be posted in a conspicuous space at the entrance/exit points of any outdoor patio area(s) onto any public area(s), which shall state, NO ALCOHOLIC BEVERAGES BEYOND THIS POINT. Said sign shall measure no less than seven inches by eleven inches (7 x 11), and contain lettering no less than one (1) inch height.

68. A general property map indicating room/area (residential, banquet, recreational, etc.) locations shall be posted in a visible location at the main access point to the property, and a general floor map shall be posted in a visible location at the main access points to each floor.

69. All common areas (e.g., trash enclosure, storage, laundry, maintenance, community, lobby, bike room, etc.) shall be secured and only open to guests/employees via a locking mechanism.

70. The hotel shall have a public telephone listing.

71. The hotel shall provide evidence of the adoption and implementation of responsible beverage service (RBS) policies and practices, including but not limited to participation in a formal RBS training program. For the purposes of this subsection, “formal RBS training program” shall mean any program from a list of vendors or programs approved by the Santa Cruz police department.

72. Employees shall be at least twenty-one years of age to sell and serve alcohol.

73. The applicant must bear the cost of modifications or cease operations if, subsequent to the approval of a administrative use permit, it is determined pursuant to Section 24.12.1110 that the establishment constitutes a public nuisance.

40.48 74. Replacement plant material shall be, to the extent feasible, consistent with the Project’s approved plant palette, or shall endeavor to be low allergen, drought tolerant, and native.

75. The Project owner shall endeavor to employ sustainable practices of integrated pest management and non-toxic pest control for management of pests and vectors that may occur on or about the project from time to time.

76. The applicant shall develop an employee parking plan in consultation with City staff that shall be finalized prior to issuance of the certificate of occupancy. The plan shall permit the use of onsite parking spaces for hotel employees as capacity allows, and shall provide for low or no-cost parking options for employees when onsite parking is not available.

VOLUNTARY COMMUNITY BENEFIT CONDITIONS BY THE APPLICANT:

The following conditions proposed by the applicants are voluntary and are directly linked to the Coastal Permit. Given that these are voluntary, the applicant has conditioned these contributions will be null and void upon an appeal of the project to the Coastal Commission and a finding of substantial issue as part of the Coastal Permit appeal process.

77. As an additional condition of approval for the Coastal Permit only, as voluntarily agreed to by the applicant, the project shall make the following payments prior to the certificate of occupancy being issued, unless otherwise specified:
a. Prior to final occupancy, the applicant shall provide a one-time financial contribution to the Santa Cruz Hostel Society in the amount of $50,000. b. Prior to final occupancy the applicant shall provide the Boys and Girls Clubs of Santa Cruz County with a one-time contribution in the amount of $50,000 to assist with revitalization of its indoor swimming pool at the Downtown Santa Cruz club house. c. The applicant shall provide an annual payment of $10,000 for a period of ten years to the City of Santa Cruz to fund the City’s “Santa Cruzer” downtown and beach shuttle program.

78. Tower viewers for visitors shall be provided on site to view the river habitat.

79. The hotel shall provide bike rentals that are free of charge to the public for the first 90 minutes.

80. The hotel shall provide free public Wi-Fi access at the Paseo and Riverwalk within the vicinity of the hotel.

81. Final building floorplans shall indicate that no fewer than three six (6) family suites included to accommodate families of four or five without the need to book multiple rooms. Said family suites shall be maintained throughout the duration of the project.

82. The hotel owner shall provide no fewer than three community days per year for local nonprofit organizations to have access to the hotel’s rooftop facilities or conference facilities for community uses, such as fundraisers or events, at cost (e.g., Boys and Girls Club of Santa

40.49 Cruz County, Nueva Vista Community Resources, and similar organizations). The Hotel Owner shall work with the Economic Development and Housing Department to establish rules, guidelines, and processes for reservation of community days.

83. Amenities such as the restrooms, Riverwalk and Paseo improvements, bar and restaurant services will remain publicly accessible during operating hours, subject to rules and regulations approved by the City in writing.

84. Lower-Cost Overnight Accommodations. To help ensure that overnight accommodations are available at a range of price points in the Coastal Zone, the applicant shall provide onsite accommodations and pay an in-lieu fee as set forth below.

A. Concurrent with a building permit application, Applicant shall submit, for the Planning Director's review and written approval, two full-size sets of revised project plans for the proposed development. The final plans shall include no less than six family suites, approximately 470 sf in size, that can accommodate families of four or more (which may or may not include bunk beds, pullout sofas, and other amenities designed to increase occupancy for families of four), and which also include kitchenettes so that families can prepare meals.

B. At the time of building permit issuance, the Applicant shall pay an in-lieu fee for low-cost visitor accommodations in the amount of $5,000,000, subject to any increase due to inflation based on the Turner Building Cost Index from the date of final approval up until the date of payment. The in-lieu fee amount shall be adjusted on a pro rata basis in the event that the number of hotel rooms ultimately constructed is different than the 232 hotel rooms approved. The in-lieu fee shall be deposited into one or more interest-bearing accounts to be established and managed by the State Coastal Conservancy. The purpose of the account(s) shall be to facilitate the County of Santa Cruz’s development of new low-cost overnight visitor accommodations at Greyhound Rock. If no development of low-cost overnight visitor accommodations proceeds at Greyhound Rock within five years after the funds have been deposited, the State Coastal Conservancy may utilize the funds for a different purpose, provided that purpose is related to the provision of low-cost overnight accommodation within the Coastal Zone. The State Coastal Conservancy shall provide notice to the Executive Director of the California Coastal Commission of the intended recipient(s) and obtain the Executive Director’s written approval of the recipient(s) prior to the expenditure of any funds.

C. For a minimum of 3,650 guest nights per year, Applicant shall make available standard double-occupancy rooms where the cost to rent such rooms shall not at any time exceed the low-cost rate established by the Coastal Commission, calculated based on 75% of the statewide average daily rate for the months of July and August. The cost shall be inclusive of all service and other fees (e.g., parking, cleaning, resort, administrative) but exclusive of any government-mandated fees (e.g., sales tax, transient occupancy taxes). The Applicant shall attempt to evenly distribute the low-cost room nights across the four quarters of the fiscal year, and shall not make available fewer than 912 rooms during any one quarter of the year.

40.50 Modifications to the manner in which room nights are allocated under this condition may be permitted with the written approval from both the Community Development Director of the City of Santa Cruz and Executive Director of the Coastal Commission. The Applicant may provide more lower-cost onsite rooms than the minimum identified without such written approval.

D. For a minimum of 150 guest nights per year, the Applicant shall make available standard double-occupancy rooms where the cost to rent such rooms shall not at any time exceed the minimum operating cost to the Applicant of maintaining the room, which is estimated to be $80 per night in the first year of operation (subject to annual CPI increases), to underserved communities (such as lower-income communities, communities of color, and other communities that have been historically marginalized and face greater barriers to coastal access). The Applicant shall attempt to evenly distribute the rooms that are made available across the four quarters of the fiscal year, and shall not make available fewer than 37 rooms during any one quarter of the year. Modifications to the manner in which room nights are allocated under this condition may be permitted with the written approval from both the Community Development Director of the City of Santa Cruz and Executive Director of the Coastal Commission. The Applicant shall make a good faith effort to partner with organizations that serve such underserved communities to satisfy this requirement, which could include publicizing the availability of the rooms on the hotel’s website and social media account(s), targeted outreach to organizations, and issuance of press releases. For informational purposes, representative organizations that would qualify under this condition include, but are not limited to, O’Neill Sea Odyssey, the City Surf Project, MeWater Foundation, Watsonville Youth Center, Salted Roots Surf, and the Coastal Watershed Council.

E. Applicant shall submit an annual report (with the first report due by December 31st of the first year of project occupancy, and subsequent reports due by December 31st of subsequent years) to the City and Executive Director of the Coastal Commission for review and written approval. The report shall provide an analysis of: (1) the number of room nights provided at low-cost to visitors, (2) the number of room nights provided to underserved groups, (3) the rate charged, (4) the group or groups that the Applicant partnered with, and (5) other information that can help to assess the effectiveness of the requirements outlined in subsections C and D of this condition. The report shall also specify the efforts anticipated to comply with this condition for the upcoming year.

40.51 EXHIBIT "A"

CONDITIONS OF APPROVAL FOR THE PROJECT ON PROPERTY AT
302, 310, 314, 324, 326, 328 Front Street – CP21-0051
Coastal Permit, Non-Residential Demolition Authorization Permit, Design Permit, Boundary Line Adjustment, Special Use Permit, Administrative Use Permit, Additional Height Request, a Revocable License for an 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)/CZ-O (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 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)

1. If one or more of the following conditions is not met with respect to all its terms, then this approval may be revoked.

2. All plans for future construction which are not covered by this review shall be submitted to the City Planning and Community Development Department for review and approval.

3. This permit shall be exercised within three (3) years of the date of final approval or it shall become null and void. When a building permit is required, a zoning permit shall be considered exercised following the issuance of a valid building permit. When only an occupancy permit is required, a zoning permit shall be considered exercised when the occupancy permit is issued.

4. If, upon exercise of this permit, this use is at any time determined by the Planning Commission to be incompatible with the surrounding neighborhood, revocation of, or amendment to, this permit by the Planning Commission could occur.

5. The use shall meet the standards and shall be developed within limits established by Chapter

24.14 of the Santa Cruz Municipal Code as to the emission of noise, odor, smoke, dust, vibration, wastes, fumes or any public nuisance arising or occurring incidental to its establishment or operation.

6. The applicant shall be responsible for the completeness and accuracy of all forms and supporting material submitted in connection with any application. Any errors or discrepancies found therein may result in the revocation of any approval or permits issued in connection therewith.

40.52 7. All final working drawings shall be submitted to the Zoning Administrator for review and approval in conjunction with building permit application. The plans submitted for building permits shall have the same level of articulation, detailing, and dimensionality as shown in the approved plans. All approved exterior finishes and materials shall be clearly notated on the building permit plans.

8. The applicant and contractor who obtains a building permit for the project shall be required to sign the following statement at the bottom of these conditions, which will become conditions of the building permit:
“I understand that the subject permit involves construction of a building (project) with an approved Design Permit. I intend to perform or supervise the performance of the work allowed by this permit in a manner which results in a finished building with the same level of detail, articulation, and dimensionality shown in the plans submitted for building permits. I hereby acknowledge that failure to construct the building as represented in the building permit plans, may result in delay of the inspections process and/or the mandatory reconstruction or alteration of any portion of the building that is not in substantial conformance with the approved plans, prior to continuation of inspections or the building final.”
Signature of Building Contractor Date

9. All requirements of the Building, Fire, Economic Development, Public Works, and Water Departments shall be completed prior to occupancy and continuously maintained thereafter.

10. The property owner and/or project applicant agree(s) as a condition and in consideration of the approval of this discretionary development permit that it will, pursuant to agreement and/or statutory provisions as applicable, including but not limited to Government code Section 66474.9, defend, indemnify and hold harmless the City of Santa Cruz or its agents, officials, officers and employees from any claim, action or proceeding against the City or its agents, officials, officers or employees to attack, set aside, void or annul this approval, which action is brought within the time period provided for under law, including but not limited to, Government Code Section 66499.37, as applicable. The property owner and/or project applicant will reimburse the City for any court costs and attorney’s fees, which the City may be required by a court to pay as a result of such action. City may, at its sole discretion, participate in the defense of such action; but such participation shall not relieve the property owner and/or project applicant of these obligations under this condition. An agreement to this effect shall be recorded upon demand of the City Attorney or concurrent with the issuance of building permits, use of the property, filing of the final map, whichever occurs first and as applicable. The City shall promptly notify the property owner and/or project applicant of any such claim, action or proceeding and the City shall cooperate fully in the defense thereof. If the City fails to promptly notify the property owner and/or project applicant of any such claim, action or proceeding or

40.53 fails to cooperate fully in the defense thereof, the property owner and/or project applicant shall not thereafter be responsible to defend, indemnify or hold the City harmless.

11. The applicant and/or property owner shall be responsible for ensuring that any existing buildings approved for demolition or conversion remain occupied by a tenant or, if any buildings are vacant or become vacant prior to demolition or conversion, that these buildings are adequately secured to prevent break-ins and other vandalism. All windows, doors, and other openings into vacant buildings shall be completely covered and a six-foot tall chain link fence shall be installed around the perimeter of the property. Graffiti shall be removed or painted over within 72 hours. If a break-in occurs, the applicant and/or property owner shall, within 24 hours, clean the site of trash and debris, and re-secure the site and building(s).

Additionally, following a break-in, the applicant/property owner shall provide the Planning Department, SCFD Fire Marshall and SCPD with a copy of a signed contract with a private security company to provide ongoing monitoring of the site. If a break-in or other public safety concern occurs at the site that requires an emergency response, the applicant and/or property owner shall be responsible for paying the fully burdened hourly rates for Police, Fire, Code Compliance, or other City Staff to respond and follow up.

PRIOR TO BUILDING PERMIT APPLICATION:

12. Pursuant to Section 66412(d) of the California Government Code the following requirements have been imposed in order for the lot-line adjustment to conform with the City's Zoning and Building Ordinances, or to facilitate the relocation of existing utilities, infrastructure, or easements:
 The lot line adjustment shall be recorded as a sequential lot line adjustment, with each lot line adjustment involving no more than four lots;
 For each sequential lot line adjustment, a new property description shall be recorded with the County Recorder's office and a copy of the recorded description provided to the City Planning Department. The deed(s) of conveyance must contain the following statement after the description of the property(ies) or portion(s) of property to be transferred:
"The purpose of the deed is to adjust the boundary between Lots [insert lots here] as approved by the City of Santa Cruz under Application CP21-0051. This conveyance may not create a separate parcel and is null and void unless the boundary is adjusted as stated."  Prior to recordation of the Lot Line Adjustments, accommodations shall be made to ensure that the City retains possession of the portion of the southernmost lot (005-151- 48) located at the northeast corner of Front and Laurel Streets that falls within the public right-of-way and any additional right-of-way necessary and not yet dedicated to facilitate completion of the Downtown Intersection Improvements Project, which is planned to widen the intersection of Laurel Street, Front Street, and Broadway; provided that additional right-of-way does not materially impact development of the project as approved.

13. The sequential lot line adjustments needed to establish the project site shall be recorded prior to approval of any demolition, grading, or building permit.

40.54 14. The applicant shall apply for and obtain new addresses for the site from the City Planning Department.

15. Prior to building permit application, applicant shall pay any outstanding fees associated with environmental review or preparation of documentation for federal permits.

PRIOR TO BUILDING PERMIT ISSUANCE:

16. Adequate provisions shall be made to supply water to each of the premises covered by this application. The design of water facilities shall be to standards of the Water Department and plans therefore must be submitted to the Water Department Director for review and approval prior to the issuance of a building permit.

17. Landscape and irrigation plans shall be submitted at the time of the building permit application and will be reviewed by both the Planning Department and Water Department.

The landscape and irrigation plans shall demonstrate compliance with all requirements of the City’s Water-Efficient Landscaping Ordinance in Chapter 16.16 of the Santa Cruz Municipal Code prior to issuance of the building permit.

18. Public Improvement Agreement for Fill Structure and Levee Improvements. The applicant shall work with the Public Works Department to record an agreement addressing the fill structure adjacent to the levee, which may include easements or other such rights necessary for construction of the fill and Levee improvements. The agreement(s) shall require that the applicant or Project Owner, and its successors are responsible for ongoing maintenance of the fill area and any damage to the levee resulting from installation or maintenance of the fill, the project or any associated work or environmental conditions over the life of the project. It shall also be specific as to the design, engineering, and construction of the fill and Riverwalk improvements including detailing all utilities, both public and private, within the fill structure. The agreement(s) shall also include the tree and landscape maintenance responsibilities per the flood control improvement project.

The Project developer shall design, construct, and maintain the proposed public improvements between Front Street and the San Lorenzo River (the “Maple Alley Paseo”) as more particularly shown on the approved plans and as specified in the Public Improvement Agreement, unless otherwise directed by the City in writing, and subject to City specifications and approval. The design of the paseo shall be in accordance with the accepted principles of crime prevention through environmental design (CPTED) to the satisfaction of the City. The Project shall enter into a maintenance agreement for the paseo and Riverwalk (Levee) Improvements with the City prior to the Certificate of Occupancy to the satisfaction of the City. The Maintenance Agreement shall require the Project owner to maintain all public or quasi-public improvements, landscaping, trees, fixtures, and furnishings on public property for the life of the project, which may include periodic replacement or restoration of materials upon terms set in the Agreement.

19. Section 408 Army Corps of Engineers Permit: Prior to the issuance of a building, grading, or demolition permit for the site, a Section 408 Permit shall be issued for the project by the Army

40.55 Corps of Engineers (ACOE). The plans approved by the ACOE must be consistent with the plans submitted for building/grading permit issuance and the applicant must demonstrate that the ACOE has approved the landscaping plans submitted with the building permit application.

The applicant shall be responsible for the documentation, consultants, and fees related to obtaining the Section 408 Permit.

20. The project shall provide replacement trees or an equivalent in-lieu fee, as determined by the City Urban Forester, for the eleven heritage trees approved for removal due to their location within the project footprint. Replacement trees shall be shown on the building permit plans at a ratio of two 24-inch box tree or six 15-gallon trees for each of the four trees to be removed and shall identify a location, size, and species as approved by the City Urban Forester. If an in-lieu fee is provided, the fee shall be paid prior to issuance of any demolition, building, or grading permit or removal of any heritage trees.

21. Prior to building permit approval, and prior to removal of any riparian tree, applicant shall submit evidence of a permit from Army Corps of Engineers to remove the existing riparian trees within the project site.

22. Final colors, materials and transitions shall be approved by the Zoning Administrator prior to approval of building permits.

23. Prior to issuance of the building permit, the property owner shall sign and submit a BMP maintenance agreement ensuring that they will provide long-term operation and maintenance of structural storm water control measures (see template in Appendix C of Chapter 6B Storm Water BMPs for Private and Public Development Projects). The signed maintenance agreement should be attached to the O&M Plan.

24. Prior to issuance of the demolition permit(s), the applicant shall obtain a building permit for the construction of the new building. Issuance of the demolition permit may be made prior to building permit issuance at the discretion of the Planning Director, if building permit plan check is nearing completion and permit issuance is eminent or if special circumstances warrant earlier demolition.

25. Prior to issuance of a demolition, building, or grading permit, the applicant shall meet the requirements of the Santa Cruz County Environmental Health (SCCEH) Department.

26. Final building permit plans shall include the following:
a. Plans submitted for building permit issuance shall include electric vehicle charging stations as required per Section 24.12.241 of the Zoning Ordinance. b. Plans submitted for building permit issuance shall show all exterior site lighting locations and fixture details. All exterior building lighting shall be shielded and contained in a downward direction. No exterior lighting shall produce off-site glare. Exterior site lighting shall be provided along pedestrian pathways and in the vehicle parking area. Security lighting shall be motion sensor only.
c. Building permit plans shall specify the glass treatments consistent with the City of Santa Cruz Bird Safe Building Design Standards (City Standards) for building exteriors within

40.56 40 feet of grade and facing the San Lorenzo River. Treatments should follow the “2” x 4” rule” included in the City Standards and may include:
o Bird safe glass approved for use by the American Bird Conservancy o Fritted windows
o Patterned windows
o UV pattern film (not appropriate for all locations)
o Window nets
o Window screens
o Any American Bird Conservancy approved product:https://abcbirds.org/glasscollisions/stop-birds-hitting-windows/ o Other design measures identified by a qualified biologist with a background in ornithology as providing adequate bird protections and that do not conflict with required findings for a Planning Permit.
d. Bicycle parking shall be provided in accordance with Section 24.12.250-252 of the City's Zoning Ordinance and shall be shown on final building permit plans. e. All utilities and transformer boxes shall be placed underground in accordance with the provisions of Section 24.12.700 through 24.12.740 of the Zoning Ordinance. Location of utilities and transformer boxes shall be shown on final building permit plans. Pursuant to Chapter 24.12, Part 8 of the Zoning Ordinance the project shall install dark conduit for future expansion of the City’s broadband network along its street frontage. f. A drainage plan shall be submitted in conjunction with application for building permits. g. Final building permit plans shall indicate the type of glass used in all ground level windows.

The use of reflective or tinted glass in ground level show windows is prohibited. h. Final building permit landscape plans shall indicate the height at maturity of all plants proposed in the Riverwalk extension area. All plants proposed in this area, other than trees, shall be no more than 42 inches in height at maturity.
i. Final building permit plans shall include a lighting plan that shows exterior lighting at all building entryways and stairways.
j. Final building permit plans shall not include any up-lighting or spotlights. k. Building permit plans shall show design of roof drainage. l. Final building permit plans shall include a lighting plan that provides the following: lighting shall be incorporated into the facade of the building and shall complement the style of the building. Lights on buildings shall not be glaring to pedestrians and shall illuminate only the extension area and the activities within. General illumination shall be at 5 foot-candles, with a maximum of 10 foot-candles. Table lamps or candles are encouraged in cafe areas. m. All commercial spaces shall allow for future food and/or beverage service uses. Final building permit plans shall identify the venting and grease trap locations for the restaurant space as well as possible future venting and grease trap locations for commercial spaces 1, 3, and 4. n. Development shall meet any applicable flood zone requirements, including but not limited to FEMA requirements, any applicable regulations in Parts 21 and 28 of Chapter 24.10 of the Zoning Ordinance, and any other applicable flood requirements. o. The vehicular driveway exit from the hotel may include an automated warning buzzer, sign, or other mechanism to alert pedestrians of outgoing vehicles, to the satisfaction of the Public Works and Planning & Community Development Directors.

40.57 27. A pre-construction nesting bird survey shall be conducted by a qualified biologist if construction, including tree removal, adjacent to the San Lorenzo River, is scheduled to begin from February 1 to August 31 to determine if active nests are present in or near the construction sites. The survey shall be conducted no more than seven days before the start of any construction activities on the site (including tree removal, clearing, and excavation). If nesting bird species protected under the Migratory Bird Treaty Act and/or California Fish and Game Code (§3503) are found and the biologist determines that construction activities could result in the removal of an active nest or cause mortality of eggs or young, the biologist shall identify a suitable nodisturbance buffer around the nest in which no work would be allowed until after the biologist has determined the nest is no longer in use or the young have fledged. Alternatively, construction may be delayed until after the nesting season (i.e., September). The nesting survey shall be submitted to the Planning Department for review and approval prior to the start of construction.

28. Rooftop structures, shade canopies, and equipment shall meet appliable setbacks, heights, and any other applicable criteria from the Downtown Plan or Zoning Code Section 24.12.150. The shade structures proposed as part of the rooftop pool area shall meet the required 15-foot setback from the roof edge. This shall be demonstrated on the construction drawings as part of the building permit plan check review.

29. Prior to the issuance of the first building permit, the applicant shall contribute to the provision of affordable housing in accordance with the Downtown Plan by providing an in-lieu public benefit fee payment to the City of Santa Cruz of $5.00 per additional square foot of floor area above the base height limit as required by the certified Local Coastal Program.

In addition, prior to the issuance of a certificate of occupancy, the applicant shall enter into a recorded agreement with the City of Santa Cruz to implement an affordable workforce housing program whereby the hotel operator would lease no fewer than four market rate offsite dwelling units located within the City of Santa Cruz (studios and 1-bedrooms, at the applicant’s discretion), with preference for units in the downtown area, and make them available at subsidized rents for qualifying low or very-low income employees of the hotel as affordable workforce housing for a period of 20 years. The agreement shall be subject to the review and approval of the Economic Development & Housing Director. If required by applicant’s lender as a condition to any construction or other financing to be secured by the hotel, such agreement shall also be fully subordinated to the deed of trust in favor of such lender. Rents shall be subsidized such that hotel workers would be paying no more than 30% of their income, with income verification conducted by the hotel operator. Compliance monitoring shall occur on an annual basis and require the hotel operator to provide a certification and sworn affidavit, in a format to be agreed upon by the applicant and the City of Santa Cruz, indicating how the project is complying with the program, the location and type of unit leased, and amount paid for rent. In the event that the applicant demonstrates that, despite good faith efforts, it is not feasible to implement the program described above prior to occupancy, the applicant may alternatively provide an in-lieu public benefit fee equivalent to the average construction cost of providing four low-income units, similar to the in-lieu fees authorized in compliance with Section 24.16.030(6) of the City’s Zoning Ordinance, which shall be calculated based on the average production cost per unit of the three most recently completed affordable housing projects in the City of Santa Cruz.

40.58 30. If a vibratory ground improvement system, such as vibro replacement stone columns (VSCs), is selected for the project, require vibration data be provided by the ground improvement contractor prior to construction so that potential effects to adjacent structures can be evaluated, and that continuous vibration monitoring be performed during installation of the VSCs to make sure structural vibration criteria is not exceeded.

31. Prior to building permit issuance or at a later time, no later than certificate of occupancy, with said payment timing subject to the discretion of the Director of Public Works, the applicant shall contribute fair-share payments for improvements at the following intersections: Front/Soquel (signal timing and lane modifications); Front/Laurel (westbound lane addition and north and south right-turn overlap); and Pacific/Laurel (southbound leftturn lane addition), consistent with the EIR prepared for the Downtown Plan Amendments in 2017.

DURING CONSTRUCTION:

32. All refuse and recycling activities during construction shall be done in accordance with Chapter

6.12 of the Santa Cruz Municipal Code. Be aware that private companies offering refuse or debris box services are not allowed to operate within the City limits, except under certain limited circumstances detailed in Chapter 6.12.160.

33. Any person exercising a development permit or building permit who, at any time in the preparation for or process of excavating or otherwise disturbing earth, discovers any human remains of any age or any artifact or any other object which reasonably appears to be evidence of an archaeological/cultural resource or paleontological resource, shall:
a. Immediately cease all further excavation, disturbance, and work on the project site; b. Cause staking to be placed completely around the area of discovery by visible stakes not more than ten feet apart forming a circle having a radius of not less than one hundred feet from the point of discovery; provided, that such staking need not take place on adjoining property unless the owner of the adjoining property authorizes such staking; c. Notify the Santa Cruz County sheriff-coroner and the city of Santa Cruz planning director of the discovery unless no human remains have been discovered, in which case the property owner shall notify only the planning director; d. Grant permission to all duly authorized representatives of the sheriff-coroner and the planning director to enter onto the property and to take all actions consistent with this section.

34. Grading shall be done during periods of dry weather and protective measures shall be incorporated during grading to prevent siltation from any grading project halted due to rain.

35. Prior to site grading or any disturbance all trees and/or tree stands indicated for preservation or approved plans shall be protected through fencing or other approved barricade. Such fencing shall protect vegetation during construction and shall be installed to the satisfaction of the Director of Planning and Community Development.

40.59 36. The project shall implement all recommendations of the arborist report by Kurt Fouts dated April 13, 2021.

37. All new trees shall be a minimum 15-gallon size.

38. The project shall implement all recommendations of the two noise assessment studies: 1)The Cruz Hotel, Santa Cruz, CA prepared by Salter Inc. dated March 2022; and 2) Construction Noise Control & Operational Assessment prepared by SM&W dated March 13, 2024.

39. All diesel-fueled off-road construction equipment greater than 75 horsepower shall be zero-emissions or equipped with California Air Resources Board (CARB) Tier 4 Final or Interim compliant engines. Alternatively, CARB Tier 2 or 3 compliant engines may be used if CARB Level 3 Verified Diesel Emissions Control Strategy (VDECS) filters are added to each piece of off-road diesel-fueled equipment.

PRIOR TO BUILDING PERMIT FINAL/OCCUPANCY:

40. The development of the site shall be in substantial accordance with the approved plans submitted and on file in the Department of Planning and Community Development of the City of Santa Cruz. All aspects of construction must be completed prior to occupancy. Major modifications to plans or exceptions to completion may be granted only by the City authority which approved the project.

41. All landscaping shall be installed prior to final utility release or issuance of occupancy permits, and shall be subject to a minimum 1 year establish period with warranty.

42. All new mechanical equipment and appurtenances, including gas and water meters, electrical boxes, roof vents, air conditioners, antennas, etc. visible from the public way and from adjacent properties, shall be screened with material compatible with the materials of the building and shall be subject to the approval of the Zoning Administrator.

43. Prior to final occupancy, the applicant shall file a trespass letter with the Santa Cruz Police Department (SCPD) in accordance with Santa Cruz Municipal Code section 9.60.012 providing SCPD the authority to remove trespassers on the premises when closed to the public.

44. Prior to final occupancy, the applicant, or its assignee, shall enter into Revocable License Agreement(s) for operation and maintenance of the extension area(s), including but not limited to the outdoor dining or other uses by the property owner(s) or tenant(s) on public property.

This requirement shall apply regardless of any easement rights that may be granted. The Owner may use credits, if established by the aforementioned Maintenance Agreement, toward any applicable Extension Area fees required by the City for such Extension Areas.

45. Perpetual Maintenance. Prior to Issuance of a Certificate of Occupancy for the Project, Owner shall execute an Agreement with the City by which the Owner shall provide, at Owner's sole cost, the ongoing maintenance, integrated pest control, and security of all

40.60 exterior areas of the project, including, without exception, all public and extension areas, such as landscape, furnishings, lighting, and improvements along the Riverwalk as well as the Maple Paseo. This Agreement may establish maintenance credits for the Owner toward any applicable Extension Area Fees based upon Owner's annually documented cost of maintenance and security for the public areas. Owner shall be responsible for the periodic rehabilitation or replacement of certain furnishings, improvements, and landscape matter identified within the Maintenance Agreement.

OPERATIONAL CONDITIONS:

46. The project plans shall specify exterior lighting that is downcast and avoids up-lighting and spotlighting. During operation of the project, non-emergency lighting shall be turned off (such as by automatic shutoff), or shielded, at night to minimize light from buildings that is visible to birds, especially during bird migration season (February-May and AugustNovember).

47. Prior to issuance of a certificate of occupancy for the Project, including any Temporary Certificates of Occupancy, Owner shall execute an Agreement with the City to memorialize Owner’s obligation to provide hotel guests with a voluntary option to provide a financial contribution to the City for (1) affordable housing creation and preservation, (2) addressing and reducing conditions of homelessness in the City, and (3) projects or purposes that benefit the Santa Cruz Riverwalk and related environmental conservation, activation, and restoration efforts, such as programs or initiatives by the City, Coastal Watershed Council or similar community organizations. Owner shall allow hotel guests to direct the payment of any fee to one or more of the designated purposes. All payments provided by hotel guests in connection with the voluntary fee program will be remitted to the City in the same manner as transient occupancy taxes.

48. Prior to commercial/business use of a building or site, owners or tenants shall obtain a Zoning Clearance/Occupancy Permit from the City Planning Department and a Business License from the City Finance Department.

49. The use shall operate in conformance with Chapter 9.36 of the Municipal Code (Noise).

50. The applicant shall enter into a Revocable Expansion Area Agreement with the City that will outline the allowable uses, and hours of operation. Any entertainment must adhere to the requirements of Condition #64 and must be conducted according to City rules and in a manner that does not create a public or private nuisance. Any Public/Major Special Events on the premises shall be conducted in accordance with Chapter 10.64 of the Municipal Code, with requisite permit applications being filed in accordance with the timelines outlined therein. Subsequent to occupancy of the premises, all landscaping shall be permanently maintained. The City reserves the right to reserve outdoor public property for events, provided such events do not prohibit existing or planned activities otherwise authorized in the Revocable Expansion Area Agreement.

51. Street front entries shall remain unlocked and unblocked and shall remain in use during store hours.

40.61 52. Store displays shall be configured in such a way as to allow pedestrians to see into the store from the sidewalk. Goods, posters, photos or other visual images shall be placed a sufficient distance from the store windows to enable pedestrians to see clearly into the store.

53. Turn non-emergency exterior lighting off (such as by automatic shutoff), or shield it, at night to minimize light from buildings that is visible to birds, especially during bird migration season (February-May and August-November).

54. Any signage for commercial spaces shall obtain a Sign Permit and any required building permit prior to installation of such signage.

55. All outdoor furniture (e.g., tables, chairs, retailing stands) shall be durable, well maintained, and of a high quality, suitable for outdoor use; such furniture shall be light, not heavy or massive in nature, to ensure that it does not visually dominate the street.

56. The design materials and colors used for outdoor chairs, tables, display stands, lighting, and other fixtures (including umbrellas and awnings) shall be generally consistent with both the architectural style and colors used on the building façade.

57. The Riverwalk extension area shall be managed and maintained in a manner to keep it clean, safe, nuisance free, and consistent with other laws and regulations.

58. Outdoor moveable furniture shall be removed at the close of business hours.

59. Stairwell entrances shall be secured and shall be accessible to police and other emergency responders.

60. Alcohol present at location must be served in accordance to the existing Alcohol Beverage Control license conditions.

61. Intoxicated people will not be served and/or consume alcohol on the premises. Persons under the age of twenty-one (21) will not be served and/or consume alcohol.

62. Persons serving alcohol shall attend a Responsible Beverage Service type class with the Santa Cruz Police Department (or other approved agency).

63. An operational and recorded video surveillance system is to be in place on the premises. The system shall provide video surveillance coverage of all common areas where alcoholic beverages are served and consumed, and shall also provide video surveillance coverage of the exterior of the premises, including the entire parking lot and interior parking garage, all building and garage vehicle and pedestrian entry/exit areas, all common stairwells (including emergency stairwells), all elevators, lobby areas (including elevator lobbies), all common residential floor hallways (all floors), any exterior courtyards, any entertainment areas, and any common pool or recreational areas. The system must maintain at least twenty eight (28)

40.62 days of recorded video storage which must be made available to law enforcement when requested.

64. Live entertainment is permitted with the hotel and on the riverwalk, subject to the approval and issuance of a revocable Entertainment Permit from the Police Department and subject to the following conditions:
a) Within the restaurant (interior and exterior) and outdoors within the Riverwalk extension area, live entertainment shall be incidental only and shall only occur between the hours of 8:00 a.m. and 10:00 p.m.
b) For indoor events, such as weddings or conferences, live entertainment shall be permitted pursuant to the conditions of an Entertainment Permit and shall comply with the City’s noise ordinance.
c) Live entertainment, including DJ’s, is not permitted at rooftop deck and pool area without a modification of this permit.
d) Hours of events may be further limited at any time at the discretion of the Police Department in order to fulfill nuisance avoidance or other objectives. e) Entertainment Permits shall be conditioned to ensure that any uses operate in a manner that does not create a public or private nuisance related to noise or other issues. f) The number of events is not limited by this permit and shall be specified as part of an Entertainment Permit.
g) Entertainment Permit conditions can be modified by the Police Department, and any Entertainment Permit is revocable if non-compliance occurs.

65. Exterior lighting is to be in place on the premises. The exterior of the premises, including the parking lot, interior garage areas, and vehicle and pedestrian entry/exit areas, should have sufficient lighting for security purposes.

66. Borders shall be in place separating any outdoor seating area and any public space to provide separation between any alcohol service area and any public area. The borders shall not be topped with a flat surface to avoid alcoholic beverage placement.

67. A sign shall be posted in a conspicuous space at the entrance/exit points of any outdoor patio area(s) onto any public area(s), which shall state, NO ALCOHOLIC BEVERAGES BEYOND THIS POINT. Said sign shall measure no less than seven inches by eleven inches (7 x 11), and contain lettering no less than one (1) inch height.

68. A general property map indicating room/area (residential, banquet, recreational, etc.) locations shall be posted in a visible location at the main access point to the property, and a general floor map shall be posted in a visible location at the main access points to each floor.

69. All common areas (e.g., trash enclosure, storage, laundry, maintenance, community, lobby, bike room, etc.) shall be secured and only open to guests/employees via a locking mechanism.

70. The hotel shall have a public telephone listing.

40.63 71. The hotel shall provide evidence of the adoption and implementation of responsible beverage service (RBS) policies and practices, including but not limited to participation in a formal RBS training program. For the purposes of this subsection, “formal RBS training program” shall mean any program from a list of vendors or programs approved by the Santa Cruz police department.

72. Employees shall be at least twenty-one years of age to sell and serve alcohol.

73. The applicant must bear the cost of modifications or cease operations if, subsequent to the approval of a administrative use permit, it is determined pursuant to Section 24.12.1110 that the establishment constitutes a public nuisance.

74. Replacement plant material shall be, to the extent feasible, consistent with the Project’s approved plant palette, or shall endeavor to be low allergen, drought tolerant, and native.

75. The Project owner shall endeavor to employ sustainable practices of integrated pest management and non-toxic pest control for management of pests and vectors that may occur on or about the project from time to time.

76. The applicant shall develop an employee parking plan in consultation with City staff that shall be finalized prior to issuance of the certificate of occupancy. The plan shall permit the use of onsite parking spaces for hotel employees as capacity allows, and shall provide for low or no-cost parking options for employees when onsite parking is not available.

VOLUNTARY COMMUNITY BENEFIT CONDITIONS BY THE APPLICANT:

The following conditions proposed by the applicants are voluntary and are directly linked to the Coastal Permit. Given that these are voluntary, the applicant has conditioned these contributions will be null and void upon an appeal of the project to the Coastal Commission and a finding of substantial issue as part of the Coastal Permit appeal process.

77. As an additional condition of approval for the Coastal Permit only, as voluntarily agreed to by the applicant, the project shall make the following payments prior to the certificate of occupancy being issued, unless otherwise specified:
a. Prior to final occupancy, the applicant shall provide a one-time financial contribution to the Santa Cruz Hostel Society in the amount of $50,000. b. Prior to final occupancy the applicant shall provide the Boys and Girls Clubs of Santa Cruz County with a one-time contribution in the amount of $50,000 to assist with revitalization of its indoor swimming pool at the Downtown Santa Cruz club house. c. Prior to final occupancy the The applicant shall provide an annual payment of $10,000 for a period of ten years to the City of Santa Cruz with a one-time contribution in the amount of $50,000 to fund the City’s “Santa Cruzer” downtown and beach shuttle program.

78. Tower viewers for visitors shall be provided on site to view the river habitat.

40.64 79. The hotel shall provide bike rentals that are free of charge to the public for the first 90 minutes.

80. The hotel shall provide free public Wifi access at the Paseo and Riverwalk within the vicinity of the hotel.

81. Final building floorplans shall indicate that no fewer than three family suites with bunk beds are included to accommodate families of four or five without the need to book multiple rooms. Said family suites shall be maintained throughout the duration of the project.

82. The hotel owner shall provide no fewer than three community days per year for local nonprofit organizations to have access to the hotel’s rooftop facilities or conference facilities for community uses, such as fundraisers or events, at cost (e.g., Boys and Girls Club of Santa Cruz County, Nueva Vista Community Resources, and similar organizations). The Hotel Owner shall work with the Economic Development and Housing Department to establish rules, guidelines, and processes for reservation of community days.

83. Amenities such as the restrooms, Riverwalk and Paseo improvements, bar and restaurant services will remain publicly accessible during operating hours, subject to rules and regulations approved by the City in writing.

84. Lower-Cost Overnight Accommodations. Prior to issuance of the first building permit, to help ensure that overnight accommodations are available at a range of price points in the Coastal Zone, the applicant shall provide onsite accommodations and pay an in-lieu fee as set forth below.

A. Concurrent with a building permit application, Applicant shall submit, for the Planning Director's review and written approval, two full-size sets of revised project plans for the proposed development. The final plans shall include no less than six family suites, approximately 470 sf in size, that can accommodate families of four or more (which may or may not include bunk beds, pullout sofas, and other amenities designed to increase occupancy for families of four), and which also include kitchenettes so that families can prepare meals.

B. At the time of building permit issuance, the Applicant shall pay an in-lieu fee for lowcost visitor accommodations according to the following formula. The in-lieu fee shall be determined by calculating the product of 25% of the total number of rooms in the project at the time of building permit issuance (not including suites provided pursuant to the preceding paragraph) and a fee of $144,750 per room, which fee shall be subject to any increase due to inflation based on the Turner Building Cost Index from the date of final approval up until the date of payment. That amount shall then be adjusted to reflect a credit for the following:
(1) the amount of the in-lieu public benefit fee required by Condition 30 for housing that would be payable prior to occupancy (i.e., $5.00 per additional square foot of floor area above the base height limit, plus the equivalent BMR in-lieu fee for four low-income units, with the understanding that the election to either provide units or pay the additional fee would not occur until prior to occupancy), and (2) the $50,000 contribution to the Santa

40.65 Cruz Hostel Society and $50,000 contribution to the Boys and Girls Clubs of Santa Cruz County subject to review and approval by the Planning Director. Concurrent with submitting a building permit application, the Applicant shall provide the Planning Director with all information requested by the Planning Director for purposes of calculating the amount of the in-lieu fee and associated credits, which such determination shall be made at the discretion of the Planning Director.
i. The City of Santa Cruz shall deposit the in-lieu fee into one or more interest bearing trust account(s) that are actively managed by the City. The purpose of the account shall be to establish, promote or improve lower-cost overnight visitor accommodations, such as lower-cost hotel and motel rooms, hostel beds, tent campsites, cabins or campground units, at appropriate locations within the City of Santa Cruz or greater Santa Cruz County.

The expenditure of any funds by the City of Santa Cruz to (1) the Santa Cruz Hostel Society or (2) to the County of Santa Cruz for purposes of providing overnight accommodations at Greyhound Rock County Park is permitted without further approval by the Executive Director of the California Coastal Commission. ii. If the City of Santa Cruz intends to utilize the funds for anything other than the preapproved purposes outlined above, the City of Santa Cruz shall provide notice to the Executive Director of the California Coastal Commission of the intended recipient(s) and obtain the Executive Director’s written approval of the recipient(s) prior to the expenditure of any funds.
iii. Prior to the City’s approval of any expenditure, the entity accepting the funds shall enter into a memorandum of understanding with the City which must include the following:
(1) a description of how the funds will be used to establish, promote or improve lowercost accommodations (generally defined as accommodations that are made available at a daily rate that is 75% or less relative to the average statewide average rate for overnight accommodations);
(2) a requirement that the entity accepting the funds must maintain operations of the accommodations at a lower-cost rate;
(3) an agreement that the entity accepting the funds will obtain all necessary regulatory permits and approvals, including but not limited to, a coastal permit for development of the lower-cost accommodations, if necessary.

iv. If any portion of the funds remain in the City’s interest-bearing account seven years after the funds have been deposited, then the City shall donate the remaining amount to one or more of the State Park units or non-profit entities providing lower-cost visitorserving amenities in a Santa Cruz County, Monterey County, or San Mateo County jurisdiction within the coastal zone or other organization acceptable to the Executive Director. The Executive Director may extend the seven-year deadline to expend the funds for good cause if the City makes a request in writing prior to expiration of the deadline.

40.66 1
Lindsay Nelson
From: Phyllis Galvan <[email protected]>
Sent: Saturday, June 22, 2024 11:29 AM
To: City Council
Subject: Hotel project SCFS Venture LLC 6/25/2024 12:00pm meeting Dear, Honorable Mayor Keeley, Vice Mayor Golder, Council Members, Brown, Brunner Kalantari Johnson, Newsome and Wakins.

I am wriƟng to you because, I cannot be at the scheduled council meeƟng on Tuesday the 25th of June. I would like to personally express my concerns about the maƩer of the upcoming Giant hotel project previously approved. In my opinion the Costal Commission got their approval wrong. This project will have a significant impact on our environment and community. The loss of this open space, heritage trees and disrupƟon of bird flight paƩerns, traffic, polluƟon, noise, will sadly take its toll. In a Ɵme where we should be preserving our environment for the future we are choosing the change our environment in the interest of funding the Rich outside of the area corporaƟons. No consideraƟon has been given to the adjacent communiƟes affected. I would like to believe that you as our elected representaƟves you would be looking out for our interests not those of the wealthy corporaƟons who obviously have only monetary interests.

My name is Phyllis Galvan, I live at the adjacent property Clearview Court in Space #44. I have had the privilege of living here for 39 years, many of those years fighƟng to keep this truly affordable housing opƟon available for the future. Not a popular posiƟon in the eyes of the wealthy developers. Although I will not actually lose my home, this project will adversely affect my quality of life as I know it. My home sits at the common fence line between our park and the Dream Inn parking lots, I am 10 feet from the proposed service entrance road, service entrance meaning trash truck hauling and trucked in goods. All of that is noisy and polluƟng. That will be aŌer a very long noisy, dusty, jarring construcƟon process.

Just look at the church circle project what an ugly mess. I’m sƟll wondering if I and my neighbors will be able to withstand the construcƟon process and then live with the aŌermath, which will be no sun to our homes, day and night noise and traffic from cars, trucks and polluƟon from people who don’t even live here. I cannot even imagine the traffic nightmare that will ensue. Have you driven this area when the traffic is bumper to bumper on any given summer weekend. This will be a polluƟng and dangerous safety issue. How will emergency vehicles be able to respond? All the traffic proposal opƟons will not fix this issue. I myself in the process of living out my golden years, will have no sun for my beloved garden, no warmth of the sun to my home, no birds flying over nesƟng and living where I can enjoying them.

Instead I while have rich people looking down from their condos, and wishing they didn’t have to look at the Trailer Park Where the elderly and low or fixed income people dwell. If ever there was a definiƟon of environmental gentrificaƟon and inequality this is it.

Although this is an approved project, our City Council has been able in the past 40 years to preserve our affordable housing situaƟon from the greed of the developers. That is why I sƟll have hope that this project could be reconsidered.

If we lived in San Jose or other ciƟes we would have been displaced many years ago. Our Santa Cruz has been different and should be conscious about the preservaƟon of environmental protecƟon and truly affordable housing stock that is disappearing at an alarming pace.

I want to thank each of you for your Ɵme and consideraƟon in this maƩer. It is in you hands now.

Thank you Sincerely,
Phyllis Galvan
170 West Cliff Dr SPC # 44
Santa Cruz, Ca. 95060
831 419 8234
[email protected]

40.67 2
Lindsay Nelson
From: Brad Brereton <[email protected]>
Sent: Sunday, June 23, 2024 1:09 PM
To: City Council
Subject: Cruz Hotel
Dear City Council
Please support the proposed Cruz Hotel. It will bring needed jobs and revenues to the City, and it will allow the improvement of a problematic section of the Riverfront area. The improvements are long overdue. Please continue improving the downtown area by allowing this much needed addition without further delay.

Thanks.

Brad C. Brereton

40.68 3
Lindsay Nelson
From: Jacob Knobel <[email protected]>
Sent: Sunday, June 23, 2024 1:11 PM
To: City Council
Subject: Cruz Hotel
Hello,
I’m wriƟng to express my support for the Cruz Hotel project that is up for approval again.

As a Santa Cruz resident, more hotel opƟons are a major plus for friends and family who visit, especially if it’s located in our awesome growing downtown.

I’m also a business owner downtown, and welcome projects that bring more tourists, residents, and customers.

I’m very excited for the future of our downtown over the next few years and this project is one key component of that.

Thank you!
Jacob

40.69 4
Lindsay Nelson
From: Ian McRae <[email protected]>
Sent: Sunday, June 23, 2024 1:15 PM
To: City Council
Subject: Downtown Hotel
I am in support of a downtown hotel. As a downtown business owner for twenty years I know first hand the value of good jobs in the service industry. Secondly, if you are in support of locally owned downtown businesses you should be in support of a hotel. These are all potential customers for downtown businesses. And yes I own a downtown business. We employ 70 people with a living wage and health insurance. We would be hiring more staff, as would many other downtown businesses as a result of more downtown residents and hotel guests. And thirdly, I have to assume that the tax revenue from such a venture would be a great benefit to the city for such things as our teachers, first responders, and local infrastructure projects.

Ian McRae
Hula's Island Grill and Tiki Room

40.70 5
Lindsay Nelson
From: Bob Cagle <[email protected]>
Sent: Sunday, June 23, 2024 1:41 PM
To: City Council
Subject: Cruz Hotel
Esteemed City Council,
Please vote yes on the proposed changes to the Cruz Hotel project.

I've had a business downtown since 1999 and we have needed more hotel space and quality conference space for my clients and visitors downtown.

As well - affordability is critically important for our community and we need to take action to back up all of the talk about it.

You can do that - please. Let's continue to improve the vibrancy, safety and economic health of our downtown.

Please vote yes on item 40 this coming week.

Best regards,
Bob Cagle,
CEO, productOps.

40.71 6
Lindsay Nelson
From: Thomas Brezsny <[email protected]>
Sent: Sunday, June 23, 2024 3:49 PM
To: City Council
Subject: Downtown Hotel Project
Dear Council,
I want to urge you to vote yes on item 40 on your Tuesday agenda regarding the Downtown Hotel Project. In addition to the housing being added to the Downtown Plan that brings permanent residents to the Downtown sphere and eases the housing crisis and at the same time it helps the Downtown economy, the addition of a 232 room hotel and conference facility is vital to help support both existing businesses and the new commercial spaces that will be added on the first floors of some of those residential projects. We need more residents AND more visitors to create a truly viable Downtown Business Community.

Tom Brezsny
Christie's Sereno Real Estate
--
Tom Brezsny
Vice President of Experience - Coastal Region
t. 831.818.1431
w. TomBrezsny.com
DRE 01063297

40.72 7
Lindsay Nelson
From: Douglas Ley <[email protected]>
Sent: Monday, June 24, 2024 7:24 AM
To: City Council
Subject: Cruz Hotel
Dear Council Members.

The City has performed admirably over the last decade to revitalize the downtown south of Cathcart. Please continue this very, very important transformation by approving changes to the Cruz Hotel project. Keep up the good work.

Doug Ley
Douglas P. Ley, President of the General Partner
Redtree Partners LP
1200 Pacific Avenue, Suite 210
Santa Cruz, CA 95060
831.346.6414

40.73 8
Lindsay Nelson
From: Eric Gil <[email protected]>
Sent: Monday, June 24, 2024 8:19 AM
To: City Council
Subject: Cruz Hotel - Absolutely Yes!
Good Morning Santa Cruz Council,
As the co-owner of Sockshop & Shoe Company I'm writing to show my support for the proposed Cruz Hotel in downtown Santa Cruz. Downtown has needed a functional hotel for visitor's for many years. This is the kind of connection that will make a difference between the wharf and downtown. With the transition to downtown housing, we also need a place for tourists and business professionals to stay and enjoy what downtown has to offer. This is part of a highly functioning downtown district.

Please consider the potential of having the kind of demographic that has money to spend and can enjoy downtown Santa Cruz while being blocks away from the main beach, wharf and boardwalk. This is essential to having the kind of working downtown that will benefit not only the businesses downtown, but the City of Santa Cruz and everyone who lives here.

Respectfully,
Eric Gil
Co-owner - Sockhop & Shoe Co.
--
Eric Gil
Co-Founder / CEO - Socksmith Design Inc
p: 831.426.6416 f: 831.401.2331
w: socksmith.com e: [email protected]
a: 1115 Thompson Avenue, Suite 5
Santa Cruz, California 95062

40.74 1
Lindsay Nelson
From: Charles Jack <[email protected]>
Sent: Monday, June 24, 2024 9:07 AM
To: City Council
Subject: YES on Item 40 - New Dowtown Hotel
Dear City Council,
I wanted to write and urge you to vote YES on Item 40 tomorrow. The proposed new hotel will be a positive for our downtown businesses and help support economic growth for Santa Cruz, all while introducing new visitors to our wonderful town. Please vote yes on Item 40.

Thank you,
Charles Jack
Cat & Cloud Coffee, Co-owner
3600 Portola Drive
Santa Cruz, CA 95062
catandcloud.com

40.75 2
Lindsay Nelson
From: Ellen Gil <[email protected]>
Sent: Monday, June 24, 2024 9:14 AM
To: City Council
Subject: Yes on Downtown Cruz Hotel as planned
Dear City Council,
As the co-owner of Sockshop & Shoe Company, I am very excited about the Downtown Cruz Hotel as it is currently proposed. It is exactly what we need to bring visitor's downtown who can park their car and walk to the shops and restaurants and the music and sports venues that Santa Cruz has to offer. This is exactly the vitality we are missing now. People don't have a place to stay downtown so they come to the 'beach' and they disperse to their hotels with no option of staying in a vital downtown area where they've gone out to play.

We used to be open till 9:00 at night because there were people walking around in the evening after enjoying dinner and a movie but there is no one on the street at night anymore. Imagine the new commerce and community that can come from more people trying to enjoy our unique downtown.

With the addition of all of the new tall buildings downtown I believe that a stately hotel is a smart addition to the mix. The design of the Downtown Cruz Hotel looks like it will fit in very nicely! Let's not slow down progress on this project if we can help it.

Thank you,
Ellen Gil
Sockshop & Shoe Company

40.76 3
Lindsay Nelson
From: Linnaea Holgers James <[email protected]> Sent: Monday, June 24, 2024 9:24 AM
To: City Council
Subject: Item 40
Dear City Council,
Please vote yes on item 40. A hotel downtown will be hugely helpful in the vitality of our community. Hotel Paradox is the only current option downtown and it is on the other side of the river. We constantly have people asking where they could stay and walk downtown easily. These are people who want to come spend time and money in our unique downtown. And the conference space provides an opportunity for us to expand our reach beyond just beach tourism where the majority of hotel/motel options exist in Santa Cruz.

Thank you,

LINNAEA HOLGERS JAMES
(831) 423-8183
1368 Pacific Avenue, Santa Cruz, CA 95060
www.artisanssantacruz.com
To help protect your priv acy, Microsoft Office prevented automatic download of this picture from the Internet.

40.77 4
Lindsay Nelson
From: Cara Pearson <[email protected]>
Sent: Monday, June 24, 2024 9:26 AM
To: City Council
Subject: In Support of Cruz Hotel
Good morning Councilmembers,
I am wriƟng to you as a small business owner and board member of the Downtown AssociaƟon. I would like to show my enthusiasƟc support for Cruz Hotel. We believe it is a perfect addiƟon to our expanding downtown district and look forward to the business it will bring our downtown community. Please support this project and its modificaƟons.

All my best,
Cara
Cara Pearson, President
Pacific Cookie Company
831.429.9709
800.969.9709
https://pacificcookie.com/

40.78 5
Lindsay Nelson
From: Shiri Gradek <[email protected]>
Sent: Monday, June 24, 2024 11:09 AM
To: City Council
Subject: PLEASE VOTE YES on Item 40
Dear council members,
Please consider voƟng yes on item 40 - let’s get the hotel approved! The downtown expansion plan and all the current development in the downtown district is so exciƟng and vital to Santa Cruz’ economic future. It would be incomplete without a downtown based hotel like the Cruz Hotel.

We are aƩracƟng so many tech companies to operate in the downtown businesses, but don’t offer a hotel in walking distance to the offices. We are spending money and effort in the downtown expansion plan, but how can we aƩract the Warriors experience to visitors without giving them lodging? The hotel is the missing piece to an amazing future downtown. Please vote yes.

Shiri Gradek

40.79 6
Lindsay Nelson
From: [email protected]
Sent: Monday, June 24, 2024 11:19 AM
To: City Council
Subject: In Support of Item #40
Dear City Council Members,
The Downtown Association works to support the hundreds of existing business owners in the Downtown Santa Cruz district, where the new Downtown Cruz Hotel is proposed. A hotel is a very welcome, complimentary business for our neighborhood. Please vote in favor of item #40.

We are often asked where large, several hundred-person business, nonprofit and educational events can be held Downtown. The Civic is too large for these groups (and lacking in tech and hospitality services), and our other Downtown venues are too small. A hotel conference facility would allow Downtown Santa Cruz to host innumerable more groups, both locals and visitors, bringing positive and healthy traƯic to our city center on a regular basis.

In addition to benefiting from conference traƯic, Downtown businesses would have the opportunity to attract the hotel’s hundreds of nightly guests as they walk to dine out, souvenir shop, and seek entertainment in the district.

Hotels are important components of healthy cities everywhere. Thank you for supporting a hotel for Downtown Santa Cruz!
Warmly,
Jorian Wilkins
Executive Director
Cell | 303-905-1424
Downtown Association of Santa Cruz
www.DowntownSantaCruz.com
Instagram | Facebook | Newsletter

40.80 7
Lindsay Nelson
From: Emily Bernard Coonerty <[email protected]>
Sent: Monday, June 24, 2024 12:09 PM
To: City Council
Cc: Fred Keeley
Subject: vote YES on item 40
Hello Mayor Keeley & City Council Members ---
I urge you to vote yes on Item 40 and support The Cruz Hotel.

My family has been in business in Downtown Santa Cruz for almost 100 years. We wholeheartedly support this development and believe in the need for projects like this in order to increase the vitality of the downtown business district and the overall health of our city's economy. This opportunity is so exciting and would be such a huge, longawaited, positive addition to our precious community.

Emily
--
Emily Bernard Coonerty

DELL WILLIAMS JEWELERS
1320 Pacific Avenue, Santa Cruz, CA 95060
t | 831.423.4100 c | 831.251.4642
DellWilliams.com | Instagram
When only the finest will do.

Confidentiality Notice: This e-mail message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and/or privileged information. Any review, use, disclosure, or distribution by unintended recipients is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message.

40.81 8
Lindsay Nelson
From: Ron Pomerantz <[email protected]>
Sent: Monday, June 24, 2024 12:14 PM
To: City Council
Subject: 6-25-24 Council Agenda item #24: Cruz Hotel
re. 6-25-24 Council agenda item #24: Cruz Hotel
Good day Mayor and Council members.

Attached below is our appeal to the Coastal Commission after your approval of the Cruz Hotel that was strongly in favor of providing low cost visitor accommodations. The proposal before you is inadequate.

The developers were clear at the Council meeting when the hotel was approved that there was no way the hotel would provide on-site affordable accommodations and instead would give a few shekels for such accommodations at Greyhound Rock campground. Now miraculously they’ll provide some of these accommodations on-site. What else are they being disingenuous about? 25% of the rooms as affordable is what you should be approving as a condition of approval as the Coastal Commission staff implied.

The Council needs to be aware there are other important grounds of appeal which should’ve been addressed in this agenda item. Such as affordable housing and parking for hotel workers. Public benefits like access and recreational opportunities. The protection of coastal resources is also needed to be addressed by you.

I request you deny the applicant’s proposal for low cost affordable accommodations as inadequate. Have staff bring back this issue when you know what the Coastal Commission staff is requiring. This along with the other grounds of appeal and CCC staff’s demands. Please read the attached appeal.

Thank your your time and thoughtful consideration.

Ron Pomerantz
April 16, 2024
California Coastal Commission
Central Coast District
725 Front Street #300
Santa Cruz, CA 95060
[email protected]

Re: Appeal of Coastal Development Permit No. CP21-0051 - Cruz Hotel Project

Dear Commissioners,

Like other California coastal cities, the City of Santa Cruz has an abundance of low paid service jobs and a shortage of affordable housing for those workers. While there are some low cost visitor amenities, it lacks proportionate lower-cost accommodations for visitors. Yet the City of Santa Cruz seems to have bent over backwards to get an additional chic, mid-range hotel through their approval process. Significant changes to zoning, density, height, a bargain sale price of city-owned property deemed surplus despite the potential of it being used for affordable housing, and the offer

40.82 9
of a Categorical Exemption to satisfy California Environmental Quality Act (CEQA) requirements were all maneuvered into place to facilitate this project. Without any other obvious benefit to the community or the state, we can only assume that the hotel is being courted by the City to add its Transient Occupancy Tax to City coffers.

On March 26, 2024, the Santa Cruz City Council approved a coastal development permit (CDP) for the Cruz Hotel, a new 232-room upscale hotel and other related developments at Laurel and Front Streets, two of the main arteries of the Downtown City corridor and the city’s East-West connection. The project will include 11,498 sq ft of ground floor retail, banquet and conference space, a restaurant and bar, and rooftop deck and pool areas. The City’s approval raises questions for the community and supporters of the Unite HERE Local 19 hotel union about the project’s consistency with the Coastal Act section 30213, the City’s Local Coastal Program (LCP), and Local Land Use Policies (LUP) on issues related to providing lower-cost visitor accommodations, public benefits, access and amenities, community character, and affordable housing, as specified below:

Fails to provide lower-cost visitor accommodations to meet Section 30213 Coastal Act mandates:

The Cruz Hotel project, as currently approved by the City of Santa Cruz, will be a 232-room chic hotel with average room rates projected to be $330 a night and up, plus taxes. As of its City Council approval, the project developer has not identified adequate units within the hotel to meet the lower-cost accommodations requirement for retail shopping areas like downtown Santa Cruz.

The California Coastal Commission (CCC) website states, “the Commission has typically required approximately 25% of the total number of new rooms to be lower-cost.” The Commission has found that new higher-cost hotel projects that do not provide for or protect lower-cost units are inconsistent with Coastal Act Section 30213. Section 30213 also includes an affirmative mandate to provide lower-cost facilities where feasible as well as a mandate to protect existing lower-cost facilities.

Coastal Act Sections 30210 and 30604 (h) call for providing “equitable, maximum access for people of all income levels to coastal waters.” The website further states, “a lack of affordable accommodations remains a barrier to coastal access.” Supposedly addressing this lack, the developer’s November 13, 2023 letter to the CCC states that in 2014, the City “had an inventory of 2170 hotel/motel rooms with 40% of the City’s hotel inventory classified as economy.” These statistics are from a decade ago and pertain to research justifying the in-process La Bahia project. Since then the city has added a significant number of mid- and upper-mid-range hotel rooms, and the county even more.

The same letter points out that our City’s LCP does not have explicit policies that apply to overnight accommodations such as hotels, as well as the fact that the LCP can be interpreted as incorporating the standards of section 30213 of the Coastal Act which encourage low-cost visitor facilities where feasible. The developer is claiming that lower-cost accommodations are not

40.83 10
financially feasible for their hotel. Although our LCP is not as specific as some other LCPs, the CCC mandate for environmental justice, equality, and social equity should be respected and enforced.

As of this appeal, no explanation for why this project can’t offer more lower-cost accommodation on site has been provided. To be consistent with CCC coastal access policies, Cruz Hotel should be required to provide 58 units of on-site lower-cost accommodations–25% of the project total. This would be in keeping with the goal of the Commission to have overnight accommodations that offer “variety and affordability” particularly to “lower- and moderate-income families and to organizations that serve young or at-risk populations.” There is no reason why developing a program to remove or lessen economic barriers–with coupons or vouchers for example–should create an undue burden.

Surveys of California residents conducted by the CCC to provide a more complete picture of residents’ attitudes about coastal overnight accommodations provide the following insights: 74% of Latinos, 73 % of Blacks, and 73 % of Asians said they would not stay overnight due to financial considerations. Breakouts by income levels were equally stark: for those making less than $25,000 a year, 75% said no to staying overnight at the coast; for those making $25,000 to $50,000 a year, 63% said no to staying overnight at the coast. The developer conveniently ignored these findings in their November 13 letter. The hotel, by developer design and intent, is not intended for the California populations identified as most in need through the Commission’s own research.

Most importantly, we believe that the developer has failed to provide a rational and adequate proposal to meet the in lieu requirement “that no lower-cost accommodations should be required or exacted if the CCC can make a finding that each of its in lieu objectives are met.” At the March City Council meeting, the developer offered an additional $5 million dollar donation via the City to the County of Santa Cruz toward the construction of cabins at Greyhound Rock Park, to add to the stock of lower-cost visitor accommodations. Aside from the vagueness of the offer’s language, the fact that Greyhound Rock is a 30 minute drive from Downtown Santa Cruz is inconsistent with providing lower-cost accommodations for Santa Cruz City visitors. It is also notable that the CCC has stated, “transportation is one of the main barriers to Californians to access and enjoy the coast”, yet the Cruz Hotel project would offer no public transportation from the purported Greyhound Rock housing facilities to the City of Santa Cruz.

Presumably the $50,000 donation to the Hostel Society is to support the expansion of their facility to offer more low-cost visitor accommodations. However, there is no indication from the Santa Cruz Hostel Society that their organization could use the one-time $50,000 donation to expand to accommodate more visitors since it is located in a small public park. In any event, $50,000 would accomplish little toward expanded facilities.

Furthermore, the Commission’s website very clearly states that a financial analysis of the project needs to be provided if the developer’s claim that providing lower-cost accommodation would

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make the project infeasible. As of this writing, the community, the Union, and the Commission are left to take the developers at their word, which is clearly unwise.

Fails to provide meaningful, adequate public access as a public benefit per Section 30213 Coastal Act mandates:

Not only does the hotel project fail to fulfill the goals and mandates of the California Coastal Act and Commission policy in regard to low cost accommodations, the project falls far short of affording public benefits and recreational opportunities as required of coastal waterways and waters. The developer has highlighted to City and CCC staff the so-called “benefits” of the project for the public with a list of promises rather than legally binding obligations to assure that mentioned benefits will become reality. Any permit or finding of the CCC should set specific operational parameters so there is no misunderstanding as to how these benefits to the public are to be fulfilled.

The developer has stated that public access is allowed in the rooftop pool area and cited as an example that it will allow the Boys and Girls Club access to the rooftop pools 3 times a year. This is hardly “public access.” With true public access, our community would be designated access to the pool area any time it is open. A clear statement of intent detailing public access should be added to the developer’s coastal permit application as a condition for approval from the CCC.

Lack of accessible, affordable housing and parking for the hotel’s 130-150 employees:

More logical hotel worker housing could be accomplished near existing and future hotels through the Commission’s requirement of off-site employee accommodations where more on-site accommodation for employees is not feasible. The hotel employees will need affordable housing near their jobs. The City and developer should be required to do more to help accomplish this.

Parking downtown for the large number of workers is a big issue. Given that there is no parking onsite for the anticipated 130 to 150 employees, there has been a condition made that the developer find accessible parking elsewhere for its employees. Providing parking for Hotel Cruz employees in the area of the hotel will result in an overall net loss of public parking available for residents and visitor shoppers in Downtown Santa Cruz. Given that there are many proposed and underconstruction housing projects in Downtown Santa Cruz with very limited parking available for their tenants, providing parking for hotel employees in our downtown will affect residents profoundly.

There is virtually no mitigation required of the developer for this impact.

Community Character for the City of Santa Cruz means affordable housing:

Californians, including our State Senate and Assembly members–know that housing access and affordability are a top priority. This issue is particularly acute for employees at non-union hotels – which in Santa Cruz constitute all of our hotels with the exception of the Dream Inn. Housing access is also acute for State residents who are Latino, Black, Indigenous, or Asian, our youth, and

40.85 12
residents with disabilities–all of whom are important to the CCC environmental justice policy as evidenced in the aforementioned analysis of development impacts on underserved and disadvantaged communities (per the CCC website).

The City has options to preserve public property for public good, rather than selling off lots as Surplus Property. They could have used their Front Street parcels to build a substantial, truly affordable non-profit housing development by consolidating the future paseo and current parking lot parcels to create an 8,000+ sq ft lot perfect for more affordable housing. They could have negotiated purchase of the Santa Cruz Community Credit Union parcels and created even more public benefit. They could have swapped the smallest parcel, on the corner of Front and Laurel Streets, to hotel developers and approved a smaller, boutique project, while maintaining ownership of a large chunk of land for public housing with true public amenities. The City could even have purchased and maintained ownership of all of these parcels and leased them to hotel developers, to have an annual rental income in addition to TOT, instead of negotiating one-time payments that will barely cover the cost of a handful of desperately-needed affordable units for the hotel workers that are already commuting hours every day.

These parcels are a prime downtown location zoned multi-residential within a block of our public transit hub, surrounded by other housing projects under construction, nearing completion, or proposed, as well as numerous existing and new commercial rental spaces in need of year-round tenants and customers. Our City can and MUST do better.

As for the City’s affordable housing trust fund, this project is only being charged $5 per sq ft which will only generate approximately $227,500 for the Fund. According to the Commission Staff report to CCC of December 2023, this should be “sufficient to cover the costs associated with planning, permitting, and constructing affordable units,” but in fact it is not. The developer has only offered to rent four housing units to its employees for a limited time. These employees are unlikely to earn enough to afford even these units. The appropriate and reasonable expectation of the developer would be to either rent more units for its employees or contribute considerably more than the $5 per sq ft minimum to the City’s affordable housing trust fund.

It bears mentioning that the original zoning of this area, and that of the rest of downtown, is for multi-residential housing. A building this size could host more than 100 units, with 11 to 20 of them being affordable–depending on density bonuses. In contrast, the $5 per sq. foot fee will not even generate enough income for half of one affordable unit, even if the City were to use the money for that purpose. It is relevant to note that the City’s affordable housing trust fund is not an enterprise fund, meaning that there is no enforceable guarantee that the fee will be even used for the pittance of affordable housing for which it is targeted.

We assert that the developer’s November 13, 2023 letter’s statement that this project alone will “bring needed economic growth to a depressed local economy” is unfounded, considering that the City is going to have hundreds of affordable and market rate units available to lease or rent well before this project would be completed. If this planned infusion of full-time city residents doesn't

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create economic growth in our downtown, how can a hotel with 232 rooms for a transient population and 130 to 150 non-union employees, commuting long hours from locations both up and down the coast, be expected to turn the tide?

The City already has a surplus of low-wage service jobs in restaurants and hotels, without housing to support these positions. Has the developer provided the City or the Commission with any economic impact analysis of how a moderate-sized hotel produces more economic impact than potentially hundreds of full-time residents? Has the City examined how an additional 130-150 downtown employees affects the jobs to housing balance? We haven’t seen any such documentation.

In regard to the question of unionizing the hotel as a developer concession, our discussions with the local Unite HERE organizers have ascertained that they would much prefer the more concrete public benefit of changing this project to an affordable housing development rather than constructing a new union hotel. Why? Because what their current and future members need is an affordable place to live near their workplace. It’s that simple.

The environmental justice impact of the Cruz Hotel project on underserved and disadvantaged communities should be identified and analyzed. It takes a diverse range of residents to create a healthy, thriving, and vibrant city.

Major CEQA environmental concerns regarding lack of much-needed environmental impact report:

In keeping with the mission of the California Environmental Quality Act (CEQA) to protect and enhance our coastal resources, it is essential that an Environmental Impact Report (EIR) be required for the Cruz Hotel project to evaluate and mitigate the significant impacts that will likely be caused by the proposed riverside development. We feel strongly that adoption of a Categorical Exemption in lieu of an EIR is highly inappropriate given the design and location of this development which will have significant and irreversible impacts on the city’s natural and urban environments. The California Code of Regulations, Title 14, Section 15332, Class 32, states that a categorical exemption for infill projects may be applied when the following criteria are met:
“Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality.” This development, along with the cumulative impacts of other developments underway and on the drawing board, will have a significant negative impact on vehicle miles traveled (VMT), traffic congestion, noise level, air quality, river water quality, water demand, habitat for local fish and wildlife, and safe river recreation. This is not just a simple infill project as characterized by the City of Santa Cruz.

The proposed infill of the space between the hotel and the river levee to create a contiguous walkway area between the two would displace floodwaters and subject adjacent low-lying neighborhoods to potential flooding in the event of the levee overflowing during severe winter storms, as almost occurred in 2023. Downtown flooding is a very real danger.

40.87 14

The plan to excavate 3-stories of soil adjacent to the river levee in order to create an underground parking garage–without first conducting a levee stability study and a geotechnical study of the potential for soil liquefaction at the site in the event of an earthquake–is dangerously irresponsible.

Pumps will need to be in operation constantly to address groundwater/river seepage due to hydraulic pressure. Multiple health and safety questions arise: Will there be diesel generators to run the backup pumps that require diesel fuel storage? If so, diesel fuel will have to be transported to the site and stored. Running a diesel backup generator will cause noise and air pollution for Cruz Hotel guests and city residents, and fossil fuel exhaust from diesel pumps will affect those who are in the vicinity. Will there be other chemicals stored, like herbicides and fertilizers, in the same area as the diesel pumps? If there’s a leak while the pumps are running, how will the diesel and hazardous chemicals be prevented from filtering into the river? Many of these critical questions will be the same for every new Front Street building that has underground facilities, regardless of the side of the street they are located. Will the continuous stream of river seepage into the garage, polluted by auto and generator oil and gas, be treated before being discharged into the river? Where are the plans for water treatment?

The property will be landscaped to the hilt. Lush green landscape will potentially require off-road landscape equipment, fertilizers, and herbicides that percolate down into soil and groundwater outside of the hotel area, ultimately ending up in the river alongside the auto tire and hydrocarbon pollutants in the atmosphere and waterways.

What are the impacts of an 85+ ft. structure towering over the river on the native bird populations that migrate between the San Lorenzo River habitat, Jessie Street Marsh, and Neary Lagoon ? The San Lorenzo River is part of the migratory path of the Pacific Flyway–a major north-south migratory pathway extending from Alaska to Patagonia for millions of birds transversing the Americas. What will be done to protect migrating birds from the real possibility of crashing into hotel windows, as well as impacts from light pollution on the riverwalk and the rooftop amenities?

Other considerations:

Noise impact during construction and in operation need to be evaluated. See attached “Revised Comments on the Cruz Hotel Noise Analysis” from Wilson IHRIG, dated March 26, 2024.

Loss of sunlight and solar radiation resulting in increased use of fossil fuels. The creation of a transient cold and dark microclimate surrounding the building area created by the shadow of the Cruz Hotel must be evaluated in the following contexts:
● Loss of human right to light and solar radiation; ;
● Loss of future solar energy generation capacity in the surrounding area due to extended periods of shadow;
● Loss of carbon offset for generating heating and electricity, which would help the city meet its climate action goals.

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What will be the cumulative impacts from the many other 80-90’ structures being built and planned along the river, next to and around the hotel? Loss of the majestic coastal mountain view surrounding Santa Cruz, as it relates to neighborhood aesthetics, a sense of community, and the neighborhood character of lower Pacific Avenue, due to construction of an 85+ ft. tall, block-long, massive structure. These mountains and expansive views set Santa Cruz apart from other California coastal cities, and our iconic views are under threat of disappearing if the Cruz Hotel gets built as currently proposed, in opposition to our LCP to preserve downtown views to the river and surroundings.

Conclusion:

In conclusion, it is a disappointment that the City of Santa Cruz, an iconic California beach town, is soliciting a hotel project that does not serve existing residents, will likely harm the river and river environs, and will gentrify our downtown.

Given that the California CCC faces increasing pressure from the State Legislature to support housing projects on our coast, and the tremendous need for workers to have access to affordable housing close to work, it is a travesty that city-owned property downtown will be prioritized for visitors rather than supporting those who are trying to live and work here. At the very least, this project should have a Community Workforce Agreement.

With the Cruz Hotel project’s numerous potential impacts to surrounding urban and natural environments, a Categorical Exemption is clearly inadequate and inappropriate. In light of the potential impacts enumerated here, an EIR should be developed if this project is to move forward.

The lack of affordable accommodations and affordable worker housing accommodated by this project is unacceptable. We ask the Commission to make the determination that these are Substantial Issues and overturn the City of Santa Cruz decision to approve the Cruz Hotel and require the City to return with a viable housing development.

Respectfully,
Joy Schendledecker
Ron Pomerantz
Micha Posner

Attachments:

Expert Noise_DW Santa Cruz Hotel.pdf

Supplemental Local 19 Comments_Santa Cruz Hotel_exhibits attached.pdf Sent from my Magic phone

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Lindsay Nelson
From: Patrick Prindle <[email protected]>
Sent: Monday, June 24, 2024 12:25 PM
To: City Council
Subject: Downtown Cruz Hotel
I am fully in support of the Downtown Hotel project. As everyone is aware the downtown is going through a transition period and it's important that it be managed correctly. The hotel is an essential component. Santa Cruz has and always will be a tourist destination. Tourists come, they deliver money to our community, and then they go home. And they are more likely to spend that money within walking distance of the place they stay. They go out to have a cup of coffee or eat a nice meal. They are more willing to buy souvenirs and things to remember their visit. This supports our local downtown restaurants and retail shops that in all honesty are struggling right now. And the plan is to add more retail shops and restaurants with each new housing development. Will those continue to sit empty? Someone once told me that in Santa Cruz the locals will pay your bills for 12-months out of the year, but the tourists will make you profitable. You need both to run a successful business downtown. Yet currently all the hospitality is focused on the beach and there are very limited options that would put a tourist in close proximity to our downtown core for an extended period of time. The reality is that we don't need one downtown hotel. We need several.

Patrick

PATRICK O.A. PRINDLE, CCIM
Vice President
Santa Cruz/Monterey Bay
CA BRE# 01860453

MCM DIVERSIFIED, INC
777 N First Street, Suite 600
San Jose, CA 95112
Main: 408.288.2400
Fax: 408.293.2695
www.mcmdiversified.com

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Lindsay Nelson
From: Todd and Jill Prindle <[email protected]>
Sent: Monday, June 24, 2024 12:40 PM
To: City Council
Subject: Cruz Hotel
The Cruz Hotel is going to be almost 6 stories, but next door there are going to be possibly 12 stories. I believe this is what we use to call a "No Brainer". The customers are going to be downtown and want to get outside to enjoy our shops/cafes/etc.

The visitor tax money and shoppers will be very substantial to City Hall and the our downtown shops...Todd Prindle

40.91 18
Lindsay Nelson
From: Stacy Nagel <[email protected]>
Sent: Monday, June 24, 2024 2:11 PM
To: City Council
Subject: Yes on Item 40 for the Downtown Cruz Hotel
I am thrilled to welcome the Downtown Cruz Hotel to our business and tourism community. Creating a stable downtown economy is key to Santa Cruz and this hotel will drive visitors to downtown again and again. Please vote yes on item 40!
Thank you,
Stacy
--
To help protect your priv acy, Microsoft Office prevented automatic download of this picture from the Internet.

Stacy Nagel
Strategy & Operations Program Manager
Business Platforms & Cloud Operations |Chief of Staff Office http://go/usermanual/snagel
If you are a woman or you love a woman, make sure they get their yearly mammograms because they saved my life.

40.92 19
Lindsay Nelson
From: Marie Beaugureau <[email protected]>
Sent: Monday, June 24, 2024 2:31 PM
To: City Council
Subject: please support the downtown hotel
Hi City Council,
As someone who works in downtown Santa Cruz, I'd like to voice my support for the Cruz Hotel being developed on Front St. It would be great to have a hotel/conference center bring people and business to downtown Santa Cruz.

Our downtown currently feels sadly under-populated and under-utilized compared to other downtowns in similarly sized central coast communities. I'd like to see it revitalized! It would be great to bring more people to support our local downtown businesses and restaurants.

Thanks,
Marie Beaugureau

40.93 324 Front Street
CP24-0097
City Council
June 25, 2024

40.94 Background
• CC approved on 3/26/24
• Appealed to Coastal Commission
• Low-cost visitor accommodations
• Major Mod application
• COAs updated
2 40.95
3 Revised Conditions

84. Lower-Cost Overnight Accommodations. To help ensure that overnight accommodations are available at a range of price points in the Coastal Zone, the applicant shall provide onsite accommodations and pay an in-lieu fee as set forth below.

A. Concurrent with a building permit application, Applicant shall submit, for the Planning Director's review and written approval, two full-size sets of revised project plans for the proposed development. The final plans shall include: (1) no less than six family suites, approximately 470 sf in size, that can accommodate families of four or more (which may or may not include bunk beds, pullout sofas, and other amenities designed to increase occupancy for families of four), and which also include kitchenettes so that families can prepare meals, and (2) the provision of no less than 10 lower-cost onsite rooms at daily rates of no more than 75% of the 2023 statewide peak-season (average of July and August) average daily rate (“ADR”) as estimated by Smith Travel Research. The plans shall show the location of the lower-cost rooms within the proposed development footprint, in addition to the layout, size, and amenities.
i. The daily rate for the 10 lower-cost onsite rooms shall apply every day of the year and shall not be adjusted seasonally.

The rate may be adjusted for changes in the Consumer Price Index (“CPI”) starting in 2024 no more than once every year.
ii. No additional resort fees shall be applied to the lower-cost rooms.

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Revised Conditions
C. For a minimum of 3,650 guest nights per year, Applicant shall make available standard doubleoccupancy rooms where the cost to rent such rooms shall not at any time exceed the low-cost rate established by the Coastal Commission, calculated based on 75% of the statewide average daily rate for the months of July and August. The cost shall be inclusive of all service and other fees (e.g., parking, cleaning, resort, administrative) but exclusive of any government-mandated fees (e.g., sales tax, transient occupancy taxes). The Applicant shall attempt to evenly distribute the low-cost room nights across the four quarters of the fiscal year, and shall not make available fewer than 912 rooms during any one quarter of the year.

Modifications to the manner in which room nights are allocated under this condition may be permitted with the written approval from both the Community Development Director of the City of Santa Cruz and Executive Director of the Coastal Commission. The Applicant may provide more lower-cost onsite rooms than the minimum identified without such written approval.

40.97 5
Revised Conditions
B. At the time of building permit issuance, the Applicant shall pay an in-lieu fee for low-cost visitor accommodations in the amount of $5,000,000, subject to any increase due to inflation based on the Turner Building Cost Index from the date of final approval up until the date of payment. The in-lieu fee amount shall be adjusted on a pro rata basis in the event that the number of hotel rooms ultimately constructed is different than the 232 hotel rooms approved. The City of Santa Cruz shall deposit the in-lieu fee shall be deposited into one or more interest-bearing trust accounts to be established and that are actively managed by the State Coastal Conservancy City. The purpose of the account(s) shall be to facilitate the County of Santa Cruz’s development of new low-cost overnight visitor accommodations at Greyhound Rock, or another appropriate location in the County. If no development of low-cost overnight visitor accommodations proceeds at Greyhound Rock within five years after the funds have been deposited, the State Coastal Conservancy City may utilize the funds for a different purpose, provided that purpose is related to the provision of low-cost overnight accommodations within the Coastal Zone. The State Coastal Conservancy City shall provide notice to the Executive Director of the California Coastal Commission of the intended recipient(s) and obtain the Executive Director’s written approval of the recipient(s) prior to the expenditure of any funds.

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Revised Conditions
D. Applicant shall submit an annual report (with the first report due by December 31st of the first year of project occupancy, and subsequent reports due by December 31st of subsequent years) to the City and Executive Director of the Coastal Commission for review and written approval. The report shall provide an analysis of: (1) the number of room nights provided at low-cost to visitors, (2) the number of room nights provided to underserved groups, (3) the rate charged, (4) the group or groups that the Applicant partnered with served, and (5) other information that can help to assess the effectiveness of the requirements outlined in subsections A and C and D of this condition. The report shall also specify the efforts anticipated to comply with this condition for the upcoming year.

40.99 7
Revised Conditions
E. Any modification to this condition shall require an
amendment to the Coastal Permit, which shall be appealable to the California Coastal Commission unless both the City’s Planning Director and Executive Director of the California Coastal Commission concur that no such amendment is required.

40.100
8 Appeals
• If approved, prior Final Local Action Notice (FLAN) rescinded • New FLAN to California Coastal Commission (CCC)
• Prior appeals to CCC nullified
• New appeals to be filed
• Appellants have been informed

40.101
Recommendation
Adopt a resolution approving application CP24-0097 based on the Findings and Conditions of Approval provided.
9 40.102
City Council

AGENDA REPORT
DATE: 06/06/2024
AGENDA OF: 06/25/2024
DEPARTMENT: City Council
SUBJECT: City Council Sugar-Sweetened Beverage Ad Hoc Committee Recommendations Related to the Placement of a General Purpose Tax Measure of Two-Cents Per Ounce on Distributors of Sugar-Sweetened Beverages on the November 5, 2024 Ballot (CN)
RECOMMENDATION: Motion to:
1) Accept recommendations from the recent work of the City Council Sugar-Sweetened Beverage Ad Hoc Committee;
2) Adopt a resolution requesting that the November 5, 2024 General Election ballot include a general tax of two-cents per fluid ounce on distributors of sugar sweetened beverages that includes a Community Oversight Panel to transmit an annual report and make recommendations to the City Council; and
3) Support the measure for the purpose of authorizing arguments; directing the Mayor to designate up to three Councilmembers to identify authors and signers for the arguments in favor of this measure, working with members of the community if they so choose; directing the City Attorney to prepare the impartial analysis; and providing direction to the City Manager regarding the preparation of the fiscal analysis, as appropriate.

BACKGROUND: Over 50 countries have implemented taxes on sugar-sweetened beverages.

In early June 2018, the Santa Cruz City Council approved a one-cent per ounce sugar-sweetened beverage (SSB) tax ballot initiative to submit to a vote by city residents at the November 2018 election, but the initiative was brought to a halt when then-Governor Jerry Brown signed the Keep Groceries Affordable Act (“the Act”) into law in late June 2018, forcing the City to remove the item from the ballot.

The Act, prompted by pressure on California lawmakers from the beverage industry, prevented local agencies from imposing new taxes on certain grocery items, including SSBs. The Act included a severe penalty provision – the loss of all revenue from sales and use taxes - for any charter city that implemented a new grocery-related tax.

In 2018, Fresno-based nonprofit, Cultiva La Salud, and Councilmember Martine Watkins, sued the state of California, arguing that the penalties stipulated by the Act were unconstitutional. In a 2023 decision, Cultiva La Salud v. State of California (2023) 89 Cal.App.5th 868, the Third

41.1 District Court of Appeal struck down the Act’s penalty provision, finding that it “improperly uses the threat of crippling penalties to chill charter cities from exercising their constitutional rights”.

Considering the court case, in May of 2023, the City Council appointed Councilmembers Watkins, Brunner and Kalantari-Johnson to a City Council Sugar-Sweetened Beverage Ad Hoc Committee (Ad Hoc) to evaluate the feasibility of placing a new SSB tax measure on either the March or November 2024 ballot.

DISCUSSION: Since 2014, four California cities (Berkeley, Oakland, San Francisco, and Albany) and several cities in other states have instituted SSB taxes as a critical measure to both improve community health, and support local programs and facilities that contribute to community wellness. The Ad Hoc committee has evaluated resources, advisory committees, and studies from Berkeley, San Francisco, and Oakland, as well as public health reports.

Various studies have linked a daily sugary drink habit to a 26 percent higher risk of type 2 diabetes [12], a 27 percent increased risk of adult obesity [8] and a 55 percent greater risk of childhood obesity [8], as well as higher incidences of heart disease, liver disease and metabolic disorder. Santa Cruz County health data indicates that although Santa Cruz is doing relatively better than other jurisdictions in the state, they are seeing a rise in diabetes and other harmful health impacts. In addition to these health risk factors, the following are some key facts about sugar-sweetened beverages (see attachment for full source information):
 Infants who drink sugary drinks have an 83% chance of cavities at age 6 [11].  A 20-ounce bottle of soda is equivalent to 16 packets of sugar.  A single can of soda provides 1.5-times the amount of sugar that the American Heart Association recommends for children [2].
 2 in 3 California teenagers drink at least one soda or other sugary drink each day(5).  When sugar is delivered in a liquid form it bypasses the body’s defense against consuming too many calories [14].
 Beverage companies spend hundreds of millions annually marketing directly to youth, bypassing parents, and market more heavily to youth of color [7].  46% more of Hispanic children aged 2-8 have cavities in their baby teeth [11].  40% of all children will develop Type 2 diabetes in their lifetimes; the projected rate for Latino and African American children is even greater, at 50% [1].

Berkeley was the first California City to lead this effort with support from nearly 70 community organizations like the Federation of Teachers, the Latinos Unidos, Health and Active before 5, leading public health experts and local restaurants and grocers [5]. A year after Berkeley’s tax was implemented in March 2015, studies showed a decrease in soda consumption of 9.6% and a corresponding 15.6% increase in drinking bottled or tap water [9]. Another Berkeley poll indicated that 5% of residents reported switching purchases to another city but only 2% of them said it was because of the tax [4].

In San Francisco, research found that sugary drink consumption is highest among youth (middle school more than high school), young adults (age 18-29), and ethnic minorities, particularly Black and Latino populations. In their March 2018 committee report, preliminary data indicated that there were also reductions in sugary drink consumption and increases in water consumption.

41.2 A new study by researchers at UC Berkeley - including those at UC Berkeley School of Public Health and the Department of Agricultural and Resource Economics - and elsewhere - shows that after excise taxes were placed on sugary beverages, purchases declined dramatically and steadily across five American cities [15]. The Study found that, on average, prices for sugar-sweetened drinks went up by 33.1% and purchases went down by 33%.

The City of Santa Cruz has invested for many years in promoting community health through its parks and beaches, public facilities, senior programs, recreation programs, public safety and youth development initiatives, and partnership with schools, public and non-profit organizations delivering a broad spectrum of health and wellness services for residents of all ages. During times of severe fiscal constraints, these investments have often been among the first to be eliminated, decreased, or delayed.

It is clear from the experience of other communities that sugar-sweetened beverage taxes yield a two-fold benefit of healthier consumer choices and additional revenue to sustain and support community health investments. A successful outcome will require a strong independent campaign that is broad-based and well-funded with robust community involvement.

The Ad-Hoc Committee has conducted outreach to stakeholders over the past year including American Lung Association, American Heart Association, Santa Cruz Seaside Company, Santa Cruz City Schools, Santa Cruz County Office of Education, County Health Department, Dientes Community Dental, Health Improvement Partnership, Black Health Matters, Community Action Board, United Way Santa Cruz, as well as other leaders in business, healthcare, dental and medical care industry to gather input on the placement of the tax measure on the ballot.

After a comprehensive review and analysis of revenue tax options, consideration of health challenges in our community, and the strong and measurable efficacy of similar measures in other parts of the country and world, the Ad Hoc recommends the placement of a two-cent per fluid ounce tax measure on distributors of sugar-sweetened beverages on the November 5, 2024 General Election ballot. The goal of this measure is to improve community health and support investments that advance community health and wellness in the City of Santa Cruz. Future proceeds from this general tax would support the City’s ability to maintain funding for community-based and safety net services. Examples of these investments could include programs such as:
 Maintaining parks and facilities that are accessible, vibrant, and safe.  Supporting programs that provide positive opportunities for children and youth.  Maintaining active recreation programs and facilities for seniors, children, and people of all ages.
 Supporting community-based organizations that contribute to community health and wellness.

This measure would also establish a Community Oversight Panel, comprised of 7 community members, to report annually on the impact of this tax and include recommendations on the use of future revenues.

Administration of the tax will be simple and straightforward. The process for tracking, collecting, and remitting the tax will be modeled after the City of Berkeley. Distributors will use an online form for tracking and reporting total number of taxable ounces of sugar sweetened

41.3 beverages distributed and can remit payment using the City’s online tax portal. Many local businesses already utilize the online tax portal for purposes of remitting other taxes and are familiar with the process
To proceed, the Council must adopt a resolution requesting the measure placement on the November ballot at its June 25, 2024 meeting, the last regularly scheduled meeting before the August 9, 2024 deadline.

There are some common misconceptions about a sugar-sweetened distribution tax. Some of the primary themes are outlined below.
 The tax is on the distribution of the beverage/syrup into the City and is accordingly paid by the distributors, not the community or local retail and restaurants. o However, like other communities have seen, the large beverage distributors will pass on this cost in the form of higher beverage prices.  There are many commonsense tax exemptions that the tax does not apply to:
o Diet Soda
o Any natural juices that have sugar (like apple and orange juice, coconut water) o Milk and milk substitute products (like almond or soy milk) o Any beverage for diet supplements or for medical purposes o All alcohol
 The Santa Cruz measure, like others passed in California, includes a small business exemption. Based on local business feedback, the Santa Cruz measure sets the exemption at $500,000 gross annual revenues, the largest exemption to date among other sugarsweetened tax measures.  This tax only applies to beverages with sugar; it does not apply to any grocery or consumer food products including packaged sugar or drink powders. o It would not apply to any beverages where the customer adds their own sugar.

Finally, it is expected that the American Beverage Association (ABA) and other corporate and business associations will aggressively mount a well-funded campaign against this tax that will outspend supporters 3 or 4 to 1. In Berkeley, large corporations led the campaign against the proposed tax and poured in over $2.4 million to fight the measure [3]. In San Francisco, the opposition poured in $22.5 million [6]. Despite the significant efforts and spending by these special interest groups, the measures in these communities passed despite disproportionate opposition spending. A similar tax is well positioned to pass in Santa Cruz, even with substantial opposition funding. However, a successful effort will require a strong, well-funded independent campaign that represents and engages broad community support.

Source Information
[1] “40% of Americans Will Develop Diabetes: CDC.” WebMD. 2005-2018. www.webmd.com/diabetes/news/20140812/40-percent-of-americans-will-developdiabetes-cdc-projects#1/. Accessed 20 Jun. 2018. [2] “Added Sugars and Cardiovascular Disease Risk in Children” American Heart Association. 2016. http://circ.ahajournals.org/content/early/2016/08/22/CIR.0000000000000439. Accessed 20 May 2024

41.4 [3] “Around $3.4M spent in Berkeley soda tax campaign.” Berkeleyside. 2015. www.berkeleyside.com/2015/02/05/around-3-4m-spent-on-berkeley-soda-taxcampaign/. Accessed 20 Jun. 2018. [4] “Berkeley sees a big drop in soda consumption after penny-per-ounce ‘soda tax’.” Los Angeles Times. 2016. http://www.latimes.com/science/sciencenow/la-sci-sn-soda-tax- works20160823-snap-story.html/. Accessed 20 Jun. 2018. [5] Berkeley vs. Big Soda. 2015. www.berkeleyvsbigsoda.com/. Accessed 24 May 2024. [6] “Campaign Finance Dashboards – June 7, 2016 and November 8, 2016 Elections.” City & County of San Francisco Ethics Commission. 2018.
https://sfethics.org/ethics/2016/06/campaign-finance-dashboards-june-7-2016-and- november8-2016-elections.html/. Accessed 20 Jun. 2018. [7] “Marketing Food To Children and Adolescents: A Review of Industry Expenditures, Activities, and Self-Regulation: A Federal Trade Commission Report To Congress.” Federal Trade Commission Protecting America’s Consumers. 2008. www.ftc.gov/reports/marketing-food-children-adolescents-review-industry- expendituresactivities-self-regulation/. 20 Jun. 2018. [8] “Press Release: City of Stockton Passes Second in Nation ‘Healthy-by-Default’ Kids’ Beverage Ordinance.” Public Health Advocates.
www.publichealthadvocacy.org/2016/06/press-release-city-stockton-passes-second- nationhealthy-default-kids-beverage-ordinance/. Accessed 20 Jun. 2018. [9] “Large study on Berkeley’s soda tax finds significant drop in sugary beverage sales.” Berkeley News. 2017. http://www.berkeleyside.com/2017/04/24/large-study-berkeleys- sodatax-finds-significant-drop-sugary-beverage-sales%20. Accessed 20 Jun. 2018. [10] “Soda taxes win in Oakland, San Francisco and Albany. The Mercury News. 2016. www.mercurynews.com/2016/11/08/voters-to-decide-on-oakland-albany-soda-taxmeasures/amp/. Accessed 20 June 2018. [11] “Sugar & Tooth Decay.” Healthy Food America Moving Science to Action. 2018. www.healthyfoodamerica.org/sugar_tooth_decay/. Accessed 24 May. 2024. [12] “Sugar & Type II Diabetes.” Healthy Food America Moving Science to Action. 2018. http://www.healthyfoodamerica.org/sugar_type_ii_diabetes/. Accessed 24 May 2024. [13] “Sugary Drinks in America: Who’s Drinking What and How Much?” Healthy Food America Moving Science to Action. 2018. www.healthyfoodamerica.org/publications/.

Accessed 24 May 2024.

41.5 [14] “Why Liquid Sugar Is the Worst.” Healthline. 2016. www.healthline.com/nutrition/liquid-sugar-calories#section3/. Accessed 24 May 2024. [15] “Evaluation of Changes in Prices and Purchases Following Implementation of SugarSweetened Beverage Taxes Across the US.” Berkeley Public Health. 2024. https://jamanetwork.com/journals/jama-health-forum/fullarticle/2813506 Accessed 23 May 2024
FISCAL IMPACT: Voter approval of the proposed revenue tax ballot measure could generate up to $1.3 million in additional general revenue in the first full year for the City to support essential investments in community well-being, through its vital parks, beaches, opens space, providing recreational, wellness and community programs for youth and seniors, and address public safety. The Finance Department estimated this amount based on the City of Berkeley numbers adjusted for population size (we are 55% of Berkeley’s population) and assumed a collection rate of 75% of what Berkeley collected. However, future annual tax receipts are likely to decline to a new lower base as businesses and consumers change purchasing and consumption behavior over time.

The cost of the election is estimated to be in the range of $91,685 to $165,033 based on figures from the Santa Cruz County Elections Department. This amount may fluctuate, based on the number of registered voters at the time of the election and the number of items the City places on the ballot.

Submitted By:

Martine Watkins
Councilmember
Submitted By:

Sonja Brunner
Councilmember
Submitted By:

Shebreh Kalantari-Johnson
Councilmember
ATTACHMENTS:

1. RESOLUTION.DOCX

2. EXCERPTS FROM SOURCE INFORMATION REGARDING SSB TAX.PDF

41.6 RESOLUTION NO. NS-30,XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ:
(1) ORDERING AN ELECTION ON A MEASURE TO DETERMINE WHETHER THE CITY SHOULD IMPOSE A TAX OF TWO CENTS ($0.02) PER FLUID OUNCE ON THE DISTRIBUTION OF SUGAR SWEETENED BEVERAGE PRODUCTS; (2) REQUESTING

THAT THE SANTA CRUZ COUNTY CLERK/ELECTIONS DEPARTMENT CONDUCT THE ELECTION FOR SAID MEASURE; AND (3) REQUESTING CONSOLIDATION WITH THE NOVEMBER 5, 2024 GENERAL ELECTION
WHEREAS, in 2018 the City Council approved a ballot measure to place a one cent per ounce sugar-sweetened beverage tax on the ballot in November 2018; however, the City was forced to remove the item from the ballot when then Governor Jerry Brown signed the Keep Groceries Affordable Act into law; and
WHEREAS, the non-profit Cultiva La Salud and Councilmember Watkins sued the state, arguing that the penalties stipulated in the Act were unconstitutional. In the 2023 decision, Cultiva La Salud v. State of California (2023) 89 Cal.App.5th 868, the Third District Court of Appeal struck down the Act’s penalty provision, finding that it “improperly uses the threat of crippling penalties to chill charter cities from exercising their constitutional rights.” (Id. at 882); and WHEREAS, the City Council Ad-Hoc Sugar-Sweetened Beverage Tax Committee was established in May of 2023 to evaluate the feasibility of placing a ballot measure for the November 2024 general election; and
WHEREAS, the City Council Ad Hoc Sugar-Sweetened Beverage Tax Committee has considered and reviewed the experience of other local jurisdictions in seeking to combat the negative health impacts of sugar sweetened beverages; and WHEREAS, children and minority populations are disproportionately affected by the negative health effects associated with the consumption of sugary beverages. Locally, according to the Santa Cruz County United Way’s 2019 Community Assessment Project: (a) only 47.1% of local 5th graders, 55.1% of local 7th graders, and 58.1% of local 9th graders are achieving physical fitness goals appropriate for their grade level; (b) 25% of local adults are obese and

36.7% are overweight; (c) 42.8% of local Latino adults are overweight and 33.5% are obese; and (d) 17% of local children 2-17 drink one or more sugar-sweetened beverages per day. (See Santa Cruz County Community Assessment Project: 2019 Comprehensive Report, https://www.unitedwaysc.org/sites/unitedwaysc/files/CAP25_FINAL_WEB_REV_1125B.pdf, Accessed 12 June 2024); and
WHEREAS, according to the 2022 Dignity Health Community Needs Assessment for Santa Cruz County, “Healthy weight is a significant issue in Santa Cruz County, with a larger proportion of children who are overweight for their age compared to all California children.” Additionally, “expenditures on high sugar foods and beverages are trending upward”. (See 2022 Community Health Needs Assessment, https://www.dignityhealth.org/content/dam/dignityhealth/bay-area/pdfs/misc/dominican-chna-2022-1.pdf, Accessed 12 June 2024); and

41.7 WHEREAS, research shows that sugar-sweetened beverages have potentially addictive properties among adolescents (See
https://www.sciencedirect.com/science/article/abs/pii/S0195666318301740 ); and WHEREAS, a new study by researchers at UC Berkeley—including those at UC Berkeley School of Public Health and the Department of Agricultural and Resource Economics—and elsewhere shows that after excise taxes were placed on sugary beverages, purchases declined dramatically and steadily across five American cities. The Study found that, on average, prices for sugar-sweetened drinks went up by 33.1% and purchases went down by 33% (“Evaluation of Changes in Prices and Purchases Following Implementation of Sugar-Sweetened Beverage Taxes Across the US.” Berkeley Public Health. 2024. https://jamanetwork.com/journals/jama-healthforum/fullarticle/2813506, Accessed 23 May 2024); WHEREAS, decreased consumption of sugary beverages is anticipated to have a positive impact on health and wellness in the City of Santa Cruz, given that studies have linked a sugary drink habit to an increased risk of type 2 diabetes, adult obesity, childhood obesity, as well as higher incidences of heart disease, liver disease and metabolic disorder; and WHEREAS, the City Council accepts the Ad Hoc Committee’s recommendation for placement of a tax measure on the ballot for the November 5, 2024 General Election, for the voters to determine whether to levy a tax of two cents ($0.02) per fluid ounce on the distribution of sugar sweetened beverage products in the city for unrestricted general revenue purposes, in order to promote community health & wellness, and sustain vital city services - such as support for parks, beaches, and open spaces; programs for youth, seniors, and working families; and facilities for community activities - and establish a community oversight panel, with all funds to be used locally; and
WHEREAS, pursuant to Elections Code Section 10002, the governing body of any city may by resolution request the Board of Supervisors of the county to permit the county elections official to render specified services to the city relating to the conduct of an election; and WHEREAS, the resolution of the City Council of the City of Santa Cruz shall specify the services requested; and
WHEREAS, pursuant to Elections Code Section 10002, the city shall reimburse the county in full for the services performed upon presentation of a bill to the city; and WHEREAS, pursuant to Elections Code Section 10400, “whenever two or more elections, including bond elections, of any legislative or congressional district, public district, city, county, or other political subdivision are called to be held on the same day, in the same territory, or in territory that is in part the same, they may be consolidated . . . upon the order of the governing body or bodies or officer or officers calling the elections”; and WHEREAS, pursuant to Elections Code Section 10400, such election for cities and special districts may be either completely or partially consolidated; and

41.8 WHEREAS, pursuant to Elections Code Section 10403, “whenever an election called by a district, city or other political subdivision for the submission of any question, proposition, or office to be filled is to be consolidated with a statewide election, and the question, proposition, or office to be filled is to appear upon the same ballot as that provided for that statewide election, the district, city or other political subdivision shall, at least 88 days prior to the date of the election, file with the board of supervisors, and a copy with the elections official, a resolution of its governing board” requesting the consolidation, setting “forth the exact form of any question, proposition, or office to be voted upon at the election, as it is to appear on the ballot”, and acknowledging “that the consolidation election will be held and conducted in the manner prescribed in Section 10418.” (Elections Code § 10403(a).) Upon such request, the Board of Supervisors may order the consolidation; and
WHEREAS, pursuant to Elections Code Section 10418, “if consolidated, the consolidated election shall be held and conducted, election boards appointed, voting precincts designated, candidates nominated, ballots printed, polls opened and closed, voter challenges determined, ballots counted and returned, returns canvassed, results declared, certificates of election issued, recounts conducted, election contests presented, and all other proceedings incidental to and connected with the election shall be regulated and done in accordance with the provisions of law regulating the statewide or special election, or the election held pursuant to Section 1302 or 1303, as applicable”; and
WHEREAS, the resolution requesting the consolidation shall be adopted and filed at the same time as the adoption of the ordinance, resolution, or order calling the election; and WHEREAS, various district, county, state and other political subdivision elections may be or have been called to be held on November 5, 2024; and NOW THEREFORE, BE IT RESOLVED AND ORDERED that the City Council of the City of Santa Cruz hereby orders an election to be called and consolidated with any and all elections also called to be held on November 5, 2024 insofar as said elections are to be held in the same territory or in territory that is in part the same as the territory of the City of Santa Cruz and requests the Board of Supervisors of the County of Santa Cruz to order such consolidation under Elections Code Sections 10401, 10403, and 10418; and
BE IT FURTHER RESOLVED AND ORDERED that the City Council hereby requests the Board of Supervisors to permit the Santa Cruz County Elections Department to provide any and all services necessary for conducting the election and agrees to pay for said services; and BE IT FURTHER RESOLVED AND ORDERED that the Santa Cruz County Elections Department shall conduct the election for the attached measure(s) to be voted on at the November 5, 2024 election; and
BE IT FURTHER RESOLVED AND ORDERED THAT the Santa Cruz County Elections Department is requested to print the attached measure text exactly as filed or indicated on the filed document in the County Voter Information Guide for the November 5, 2024 election. Cost of printing and distribution of the measure text will be paid for by the city; and

41.9 BE IT FURTHER RESOLVED AND ORDERED THAT pursuant to its right, title, and authority under Section 3 of Article XI of the California Constitution and Sections 1415(a)(2) and 9255(b)(1) of the California Elections Code, the City Council hereby calls an election to be held in the City of Santa Cruz on Tuesday, November 5, 2024 for the purpose of submitting to the voters the following measure (and such other questions as the City Council may hereafter order to be presented to the voters):

Measure “___” Sugar-Sweetened Beverage Distribution Tax Ordinance (see Exhibit A for full text)
To sustain vital City services such as improving/ Yes
maintaining neighborhood parks/ beaches/ open space,
providing safe routes to schools, expanding community
recreational/ youth/ senior programs, addressing crime/ public safety, improving bike/ pedestrian safety, and
help fight diabetes, heart disease, and childhood obesity, shall City of Santa Cruz’s measure levying a two-cents
per ounce tax for general governmental use on the
wholesale distribution of sugar-sweetened beverages
(e.g., sodas, energy drinks); generating $1,300,000
annually, until ended by voters, be adopted?
No
BE IT FURTHER RESOLVED AND ORDERED THAT the City Council of the City of Santa Cruz submits to the qualified electors said Ballot Measure Question as set forth above and designates and refers to said measure as the measure to be set forth on the ballots for use in said election. The full text of the measure is as set forth in the attached Exhibit A; and BE IT FURTHER RESOLVED AND ORDERED THAT in accordance with the provisions of Section 9280 of the California Elections Code, the City Attorney is hereby directed to prepare an impartial analysis of this measure. In accordance with the provisions of Section 9212 of the California Elections Code, the Finance Director is hereby directed to prepare a fiscal impact statement of this measure.

PASSED AND ADOPTED this 25th day of June, 2024 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

41.10 RESOLUTION NO. NS-30,XXX

EXHIBIT A
BE IT ORDAINED by the electorate of the City of Santa Cruz that Section 3.38 of the Santa Cruz Municipal Code is hereby added as follows:

ORDINANCE NO. 2024-XX

AN ORDINANCE OF THE CITY OF SANTA CRUZ IMPOSING AN EXCISE TAX OF TWO CENTS ($0.02) PER FLUID OUNCE ON THE DISTRIBUTION OF SUGAR-SWEETENED

BEVERAGE PRODUCTS IN THE CITY OF SANTA CRUZ
Section 1. Chapter 3.38 – SUGAR-SWEETENED BEVERAGE DISTRIBUTION TAX is hereby added to Title 3 – REVENUE AND FINANCE of the City of Santa Cruz Municipal Code, to read as follows:
“Chapter 3.38 - SUGAR-SWEETENED BEVERAGE DISTRIBUTION TAX

3.38.005 - SHORT TITLE
This chapter shall be known as the "Sugar-Sweetened Beverage Distribution Tax Ordinance."

3.38.010 – PURPOSE OF THIS CHAPTER
The purpose of this chapter is to impose a general excise tax on the Distribution of SugarSweetened Beverage Products to raise funds for unrestricted general revenue purposes, including, but not limited to, promoting community health & wellness, and sustaining vital City services. The excise tax imposed by this chapter is also expected to lead to decreased consumption of sugary beverages in the City of Santa Cruz, which is anticipated to have a positive impact on health and wellness in the City of Santa Cruz, given that sugary drinks are linked to various health conditions, including type 2 diabetes, adult obesity, childhood obesity, heart disease, liver disease, and metabolic disorder.

3.38.015 - COMMUNITY OVERSIGHT PANEL
There is hereby established a Community Oversight Panel:

1. A Community Oversight Panel shall report on the impact of the tax, review expenditures, and include recommendations on the use of future revenues to promote community health & wellness and general revenue purposes, as consistent with this chapter.

2. The Community Oversight Panel shall be comprised of 7 members in total. The Parks & Recreation Commission may select one person to be a part of the Community Oversight Panel, and the Council may select one City Councilmember to be a part of the Community Oversight Panel. The remaining members shall be recommended by the City Manager’s Office and ratified by the City Council, and shall, to the greatest extent possible, be comprised of community members representing categories that include: healthcare, dental, and/or

41.11 wellness professional(s); representative(s) from the education industry; and representative(s) from youth organization(s).

3. The Community Oversight Panel will transmit its annual report and recommendations to the City Council.

3.38.020- DEFINITIONS
Except where the context otherwise requires, the following definitions govern the construction of this chapter:
"Alcoholic Beverage" means any beverage that is subject to taxation as an Alcoholic beverage under California Revenue and Taxation Code, Sections 32001 et seq., as may be amended from time to time.
"Beverage for Medical Use" means a beverage suitable for human consumption and manufactured for use as an oral nutritional therapy for persons who cannot absorb or metabolize dietary nutrients from food or beverages, or for use as an oral rehydration electrolyte solution formulated to prevent or treat dehydration due to illness. "Beverage for Medical Use" also means a "medical food" as defined in Section 109971 of the California Health and Safety Code. "Beverage for Medical Use" shall not include beverages commonly referred to as "sports drinks" or any other common names that are derivations thereof. "Business Entity" means any Person except for a natural person. "City" means the City of Santa Cruz, California.
"Community Oversight Panel" means the Sugar-Sweetened Beverage Distribution Tax Community Oversight Panel described in this chapter.
“Concentrate” means a syrup, powder, frozen or gel mixture, or other product containing one or more sweeteners as an ingredient, intended to be used in making, mixing, or compounding a sweetened beverage by combining the concentrate with one or more other ingredients.

Concentrate does not include Natural or Common Sweeteners. "Consumer" or "Consumers" means a natural person or persons who purchase a SugarSweetened Beverage Product(s) in the City for a purpose other than resale in the ordinary course of business.
"Distribution", "Distribute" or "Distributing" means the transfer of title, ownership, or possession other than by a common carrier: (a) from one Business Entity to another for consideration; or (b) within a single Business Entity, such as by a wholesale or warehousing unit to a retail outlet or between two or more employees or contractors of said Business Entity. "Distribution" or "Distribute" shall not mean the retail sale to a Consumer. "Distributor" means any Person who engages in the business of Distribution of Sugar41.12 Sweetened Beverage Product(s) within the City.
"General Tax" means any tax imposed for unrestricted general governmental purposes. "Milk Product" means: (a) any beverage in which natural milk secreted by an animal is the primary and first ingredient in the product ingredient list; and (b) any plant-based substance or combination of substances in which (i) water and (ii) grains, nuts, legumes, or seeds, constitute the first two ingredients in the product ingredient list. For purposes of this definition, " Milk Product" includes concentrate and dehydrated forms, whether or not reconstituted. For purposes of this definition, "Milk Product" includes, but is not limited to, soy milk, almond milk, rice milk, coconut milk, hemp milk, oat milk, hazelnut milk, flax milk. “Natural Fruit Juice” means the original liquid resulting from the pressing of fruit, and includes natural fruit juice concentrate, and dehydrated natural fruit juice. “Natural Vegetable Juice” means the original liquid resulting from the pressing of vegetables, and includes natural vegetable juice concentrate, and dehydrated natural vegetable juice. "Natural or Common Sweetener" means: a sweetening agent on its own and independent of any Sugar-Sweetened Beverage Product, including but not limited to, granulated white sugar, brown sugar, honey, molasses, xylem sap of maple trees, agave nectar, or corn syrup. “Nonalcoholic Beverage” means any beverage that is not subject to tax under California Revenue and Taxation Code sections 32001 et seq.
"Person" means any natural person, partnership, cooperative, association, limited liability company, corporation, personal representative, receiver, trustee, assignee, or any other legal entity.
"Retailer" means any Person who serves a Sugar-Sweetened Beverage Product(s) to Consumer(s) for payment.
"Small Business" means any Person with less than $500,000 in annual gross receipts in the most recent calendar year that distributes, sells, serves or provides Sugar-Sweetened Beverage Product(s) directly to final Consumers.
"Sugar-Sweetened Beverage" means any nonalcoholic beverage prepared in any form intended for human consumption to which one or more Caloric Sweeteners has been added and that contains 40 or more calories per 12 fluid ounces of beverage including, but not limited to, drinks and beverages commonly referred to as "soda," "pop," "cola," "soft drinks," "sports drinks," "energy drinks," "slushies," "sweetened ice teas and coffees," or any other common names that are derivations thereof.
"Sugar-Sweetened Beverage Distribution Tax" or "Tax" is the general excise tax imposed under Section 3.38.030.