Agenda packet — Santa Cruz City Council, September 10, 2024 (part 1 of 3)

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

CITY COUNCIL AGENDA
Regular Meeting - September 10, 2024
10:00 A.M. CLOSED SESSION, ZOOM/COURTYARD CONFERENCE ROOM 11:30 A.M. ORAL COMMUNICATIONS, CONSENT, GENERAL BUSINESS AND PUBLIC

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

Correspondence to be included in the agenda packet must be received by 5:00 pm on Monday, September 9th
PLEASE NOTE:
 Council may take a break(s) as needed.
 Requests for extra speaking time on items other than Oral Communications must be made by 5:00 p.m. on Sunday, September 8th by emailing the Mayor and the City Clerk.

Approval will be confirmed via email.
[email protected] [email protected]
September 10, 2024 City Council 2
The City of Santa Cruz does not discriminate against persons with disabilities. Out of consideration for people with chemical sensitivities we ask that you attend fragrance free. Upon request, the agenda can be provided in a format to accommodate special needs. Additionally, if you wish to attend this public meeting and will require assistance such as an interpreter for American Sign Language, Spanish, or other special equipment, please call the City Clerk’s Department at 420-5030 at least five days in advance so that we can arrange for such special assistance, or email [email protected]. The CalRelay system number: 1-800-735-2922.

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

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

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

Need more information? Contact the City Clerk’s office at 831-420-5030. 10:00 AM
Statements of Disqualification
Closed Session

1. Real Property Negotiations (Government Code §54956.8) 1) Property: 17 B/C Municipal Wharf
APN: 007-331-06 and -07
Owner: Roseanne Mazzone and John Eicholz dba Bonnie’s Gifts City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Roseanne Mazzone and John Eicholz
Under Negotiation: Price, terms of payment, or both
2) Property: 55 A Municipal Wharf
APN: 007-381-01
Owner: Marini’s Candies, Inc.

City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Nick & Gino Marini Under Negotiation: Price, terms of payment, or both
September 10, 2024 City Council 3
Closed Session (continued)

1. Real Property Negotiations (Government Code §54956.8) (continued) 3) Property: 55 D Municipal Wharf
APN: 007-351-02
Owner: Genesis Peck dba Made in Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Genesis Peck Under Negotiation: Price, terms of payment, or both
4) Property: 47 Municipal Wharf
APN: 007-341-06
Owner: Flotsam of California, Inc. dba Noland’s
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Bruce Noland Under Negotiation: Price, terms of payment, or both
5) Property: 15 Municipal Wharf
APN: 007-331-04
Owner: JFS, Inc. dba Santa Cruz Boat Rentals
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Sally Ealy
Under Negotiation: Price, terms of payment, or both
6) Property: 17 E Municipal Wharf
APN: 007-331-09
Owner: Sock Shop & Shoe Company, Inc.

City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Ellen Gill
Under Negotiation: Price, terms of payment, or both
7) Property: 1070 River Street
APN: 007-331-06 and -07
Owner: Arts Council Santa Cruz County
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Jim Brown
Under Negotiation: Price, terms of payment, or both
8) Property: 41 Municipal Wharf
APN: 007-381-01
Owner: Flotsam of California, Inc.

City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Bruce Noland Under Negotiation: Price, terms of payment, or both
September 10, 2024 City Council 4
Closed Session (continued)

1. Real Property Negotiations (Government Code §54956.8) (continued) 9) Property: 2 Municipal Wharf
APN: Right of Way (No APN)
Owner: Dave Johnston DBA Venture Quest
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Dave Johnston Under Negotiation: Price, terms of payment, or both
10) Property: 125 Coral Street
APN: 008-171-24 and -25
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Housing Matters Under Negotiation: Price, terms of payment, or both
11) Property: 125 Coral Street
APN: 008-171-24 and -25
Owner: City of Santa Cruz
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Harley and Jim Gillespie Under Negotiation: Price, terms of payment, or both

2. Conference with Legal Counsel - Existing Litigation (Government Code §54956.9(d)(1))
1) Santa Cruz Cop Watch v. City of Santa Cruz
(Santa Cruz County Superior Court Case No. 24CV01767)
2) Douglas Wallace, et al v. City of Santa Cruz, et al
(Santa Cruz County Superior Court Case No. 24CV02414)

3. Conference with Legal Counsel – Anticipated Litigation (Government Code §54956.9(d)(2))
Significant exposure to litigation (one potential case to be discussed)

4. Conference with Legal Counsel – Anticipated Litigation (Government Code §54956.9(d)(4))
Initiation of litigation (one potential case to be discussed) September 10, 2024 City Council 5
City Council
11:30 AM
Call to Order
Roll Call
Oral Communications Announcement – Members of the public may address Council on matters not on the agenda, but within the jurisdiction of the Council. 30 minutes is allocated for Oral Communications. No extra time for groups will be granted.

Oral Communications
Presentations

5. Mayoral Proclamation Declaring September as Service Dog Awareness Month

6. Mayoral Proclamation Declaring September as Childhood Cancer Awareness Month

7. National Emergency Preparedness Month

8. West Cliff Projects Update
Presiding Officer's Announcements
Statements of Disqualification
Additions and Deletions
City Attorney Report on Closed Session
September 10, 2024 City Council 6
Council Meeting Calendar

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

Consent Agenda

10. Minutes of the August 27, 2024 City Council Meeting (CC) Motion to approve as submitted.

11. Commission for the Prevention of Violence Against Women (CPVAW) Appointment (CC)
Motion to approve Councilmember Kalantari-Johnson's nomination of Shiri Gradek to the Commission for the Prevention of Violence Against Women (CPVAW).

12. Authorization of a Contract with Housing Matters for Encampment Resolution Funding Grant (CM)
Motion to:
1) Authorize the City Manager to execute an agreement in a form to be approved by the City Attorney, with Housing Matters in an amount not to exceed $3,882,184 to implement Encampment Resolution Fund Grant funded work; and
2) Authorize the City Manager to execute change orders within the approved budget.

13. Santa Cruz County Civil Grand Jury Response (CM)
Motion to authorize the Mayor to submit responses to the Santa Cruz Civil Grand Jury on behalf of the Santa Cruz City Council for the (1) Honoring Commitments to the Public, (2) Housing for Whom, and (3) Preventing Rape and Domestic Violence reports.

September 10, 2024 City Council 7
Consent Agenda (continued)

14. State Match Local Housing Trust Fund Program (LHTF Program) Funding Application for Funding Affordable Housing Development (EDH) Motion to:
1) Adopt a resolution to approve the 2024 State Local Housing Trust Fund Program (LHTF) funding application submittal and, if selected, receive an allocation of State Match funding through the LHTF Program and execute any documents related to the 2024 LHTF funding award; 2) Approve revised City Affordable Housing Trust Fund (AHTF) Administrative Guidelines for consistency with the LHTF program requirements;
3) Approve the Housing Authority of the County of Santa Cruz’s contribution of up to $3.2 million for the 136 River Street Project (Project) to be administered as a City AHTF loan contingent on the Housing Authority review and Board approval of the RFQ response submitted by Eden Housing Inc. and For the Future Housing Inc.; and 4) Approve an increase to the already committed $1.8 million AHTF Project loan that includes the Housing Authority’s and/or the AHTF’s funding up to the $5 million maximum per the LHTF program requirements.

15. Permanent Outdoor Dining and Curb Café Program – Waiver of Deferred Pandemic Era Fees and Related Authorizations (EDH)
Motion to approve a waiver of Permanent Outdoor Expansion Area and Curb Café fees between July 2020-December 2023 and authorize the City Manager to execute any agreements, amendments, or documents necessary to implement said waiver, in a form approved by the City Attorney.

16. Neary Lagoon Floating Walkway Decking and Railing Rehabilitation (m409668 - Neary Lagoon Park Rehabilitation - Maintenance): Notice of Completion (PR)
Motion to accept the work of Cen-Con, Inc. (Santa Cruz, CA) as completed per plans and specifications and authorize the filing of the Notice of Completion for the Neary Lagoon Floating Walkway Project.

September 10, 2024 City Council 8
Consent Agenda (continued)

17. 2024 Laurel Street Surface Seal Project (c400809) (PW) Motion to reject all bids for the 2024 Laurel Street Surface Seal Project (c400809), authorize staff to re-advertise the project for bids proposals, and to authorize the City Manager to execute an agreement in a form approved by the City Attorney. The Director of Public Works is authorized to execute amendments within the approved project budget.

18. Contract Amendment 2 with BCycle, LLC for Santa Cruz County Regional Bike Share Program (PW)
Motion to authorize the City Manager to execute the Second Amendment to the Professional Service Agreement with BCycle, LLC for Santa Cruz County Regional Bike Share Program in a form acceptable to the City Attorney.

19. Regional Participation in Household Hazardous Waste Grant Cycle 43 (PW)
Motion to adopt a resolution to authorize the City of Santa Cruz’s regional participation in the CalRecycle Household Hazardous Waste Cycle 43 and authorize the City Manager to submit all required documentation and payment requests.

20. Award Contract for London Nelson Community Center Roof Repair (PW) Motion to award a contract for the purchase of tile and roof repair from Weatherproofing, Technologies, Inc (Beachwood, OH) in the amount of $159,325.46. The Director of Public Works is authorized to execute changes orders within the approved project budget.

21. West Cliff Multi-Use Path Rehabilitation Project (m400819) – Reject Bids (PW)
Motion to reject all bids for the West Cliff Multi-Use Path Rehabilitation Project (m400819), authorize staff to re-advertise the project for bids proposals and to authorize the City Manager to execute an agreement in a form approved by the City Attorney. The Director of Public Works is authorized to execute amendments within the approved project budget.

September 10, 2024 City Council 9
Consent Agenda (continued)

22. Beltz 8 and 12 Aquifer Storage and Recovery (ASR) Project Addendum to the Santa Cruz Water Rights Project Final Environmental Impact Report – Project Approval (WT)
Motion to approve the Beltz 8 and 12 Aquifer Storage and Recovery Project considering the certified Santa Cruz Water Rights Project Final Environmental Impact Report and the Beltz 8 and 12 Aquifer Storage and Recovery Project Addendum to the Santa Cruz Water Rights Project Final Environmental Impact Report.

23. Soquel Avenue Main Replacement Project (c700002) – Notice of Completion (WT)
Motion to accept the work of Pacific Underground Construction, Inc. (San Jose, CA) as complete per the plans and specifications, authorizing the filing of a Notice of Completion for the Soquel Avenue Main Replacement Project (c700002), and authorize the Water Director to sign the Notice of Completion as the Owner’s Authorized Agent.

End Consent Agenda
Public Hearing

24. 2nd Reading and Final Adoption of Ordinance No. 2024-14 Amending Chapter 2.40, Boards and Commissions, Related to the Membership Term Year for the Commission for the Prevention of Violence Against Women (CPVAW) (CC)
Motion to adopt Ordinance No. 2024-14 amending Chapter 2.40, Boards and Commissions, related to the membership term year for the Commission for the Prevention of Violence Against Women.

September 10, 2024 City Council 10
General Business

25. Collective of Results and Evidence-Based (CORE) Investments Update (CM)
Motion to:
1) Accept staff report on the status of the Collective of Results and Evidence-based (CORE) Investments Program Request for Proposals (RFP);
2) Direct staff to carve out any Council-prioritized services from competitive procurement;
3) Approve staff recommended funding Option 2, to distribute funding and initiate recommended awards; and
4) Direct staff to coordinate with the Human Services Department (HSD) to report back with recommended awards from the CORE RFP by November 19, 2024.

26. Ordinance and Resolution Responsive to Incident Involving the City of Hanford Police Department (CN)
Motion to:
1) Introduce for publication an ordinance adding Chapter 9.91, the Prohibition of Government-Sponsored Unsanctioned Transport of Homeless Persons Ordinance, to the Santa Cruz Municipal Code; 2) Adopt a resolution directing (a) the Santa Cruz Police Department (SCPD) to add a “Prohibition of Unsanctioned Transport of Homeless Persons” policy to the SCPD Policy Manual; and (b) City staff to continue, to the greatest extent practicable, the City’s current practice of reserving City-funded and City-managed shelter resources for persons experiencing homelessness that are currently residing in the City of Santa Cruz; and
3) Approve the CEQA determination contained in this Agenda Report.

The Council’s action is not a “project” under CEQA. And, even if it were considered a “project”, it would be categorically exempt under 14 CCR § 15321(b) (law enforcement action) and 14 CCR § 15061(b)(3) (“commonsense” exemption).

September 10, 2024 City Council 11
General Business (continued)

27. Industrial Land Preservation Policy. Location: Citywide. CEQA: General Plan 2030 Environmental Impact Report (PL)
Motion to adopt a resolution approving the Industrial Land Preservation Policy and acknowledging the action is consistent with the General Plan 2030 Environmental Impact Report.

28. Ministerial Design Review Authority for Affordable Streamlined Ministerial Projects with a Density Bonus. Location: Citywide. CEQA:

Not a Project (PL)
Motion to direct staff to do the following, which will supersede the direction provided at the September 7, 2021, City Council Meeting:
1) Conduct the objective, ministerial Design Review of revisions to the 831 Water Street Project, including potential revisions to the Density Bonus approval, administratively with the option to refer the project to the Planning Commission; and
2) Any future requests for an affordable housing streamlined ministerial project that include a Density Bonus request shall be reviewed by the Zoning Administrator at a noticed public hearing with the option to refer review to the Planning Commission.
[Environmental Determination: Not a Project]

29. Climate Resilient Santa Cruz: Graham Hill Water Treatment Plant Facility Improvements Project Final Environmental Impact Report and Project Approval (WT)
Motion to:
1) Adopt a resolution certifying the Final Environmental Impact Report for the Climate Resilient Santa Cruz: Graham Hill Water Treatment Plant Facility Improvements Project;
2) Adopt a resolution approving the project entitlements (Special Use Permit, Design Permit, Nonresidential Demolition Authorization Permit, Heritage Tree Removal Permit, and Slope Development Permit), based on Planning Commission’s Recommendations; and
3) Adopt a resolution approving Graham Hill Water Treatment Plant Facility Improvements Project, adopting a Mitigation, Monitoring, and Reporting Program, and adopting California Environmental Quality Act Findings and a Statement of Overriding Considerations.

September 10, 2024 City Council 12
General Business (continued)

30. Ordinance Extending AB 1482 Rental Increase Protections Upon Expiration of Affordable Housing Rental Restrictions (CN) Introduce for publication an ordinance amending Chapter 21.07 “Just Cause Eviction Above AB 1482 Requirements” of the Santa Cruz Municipal Code to extend AB 1482 rental increase protections to tenants in units with expiring affordable housing rental restrictions.

Adjournment
September 10, 2024 City Council 13

INFORMATION ITEMS PREVIOUSLY DISTRIBUTED TO CITY COUNCILMEMBERS ADDENDUM TO CITY COUNCIL AGENDA – SEPTEMBER 10, 2024

31. Finance Department: Portfolio Management Report – Pooled Cash and Investments as of June 30, 2024 - 7/22/24 (FNFYI 377)

32. Public Works Department: Annual San Lorenzo River Vegetation Management Update - 8/28/24 (PW 0110)

MAYOR'S PROCLAMATIONS
None issued.

Advisory Body Appointment
The following position is either currently vacant or the term is due to expire.

Council will make the appointment at a future meeting.

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

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

Emergency Preparedness Month 2024:

Community Evacuation Preparedness
Meredith Albert, Principal Management Analyst

7.1 1 Emergency Preparedness
2 3
Agenda
Evacuation Planning
Community Engagement
4 Equity and accessibility

7.2 7.3
Emergency Preparedness
Ready in four steps

1.Have a plan

2. Make a kit

3. Stay informed

4. Know your neighbors
Resources for preparedness
Alerts Plans Neighbors

7.4 Evacuation
And sheltering in place

7.5 Evacuation

7.6 Evacuation
www. https://www.cityofsantacruz.com/community /emergency-management

7.7 Feedback
0 0 0 0
3 4
1 2 2 2
1 4
5 0
2 0
1 1 1 1
4 2 2 2
0 0
4 0 0 0 0
0 1
2 3
4 5
6 Community Feedback by Evacuation Zone

7.8 • Inclusive
• Tailored
• Accessible
• Resourceful

7.9 1 Emergency Preparedness
2 3
Evacuation Planning
Community Engagement
4 Equity and accessibility
QUESTIONS?

7.10 West Cliff
Infrastructure Updates
Santa Cruz City Council
September 10, 2024
1 Artwork by Farallon Strategies 8.1
• West Cliff Storm Damages • Order of Recovery • 900 Block • 1000 Block • 2100 Storm Drain • 1100 Block • 800 Block • Lighthouse Point iStock
2 Overview

8.2 Sites Damaged by
December 2023 & 2024 Storms
Sites Damaged by West Cliff Storm Damages January 2023 Storms 2100: 60” Storm Drain Damage
Funding TBD (State)
800 Block: Path Damaged
Funding TBD (FHWA EO)
920/932: Infill Walls
Funding FHWA EO Program
Bethany Culvert
Funding FHWA EO Program, RTC Grant, State
1030: Infill Wall
Funding FHWA EO Program
9 Sites: Repair Armoring
Funding TBD (FEMA)
944/960: Sinkhole Damages
Funding FHWA EO Program
2024 Bluff Erosion
3 1100: Pathway Damage
Funding TBD (FHWA or State)

8.3 4
920 & 932 Recovery
920 Infill Wall
Est. Cost: $1.7M
Sep. 2024
932 Infill Wall
Est. Cost: $3.2M
Sep. 2024

8.4 5
944 & 960 Recovery
944
944 Sinkhole
Est. Cost: $1.3M
Est. Completion: Oct. 2024
960 Hybrid Wall
Est. Cost: $1.6M
Est. Completion: Nov. 2024 8.5
6 1000 Block Recovery
1030 Infill Wall
Est. Cost: $2.5M
Summer 2025 1016 Infill Wall
Est. Cost: $3.4
Oct. 2024
Bethany Culvert
Est. Cost: $9M
Nov. 2024

8.6 7
1100 (David Way) & 2100 (Sacramento Ave.) Recovery
1100 Pathway Restoration
Est. Cost: $500K
Est. Completion: Spring 2025
2100 New SD Headwall
Est. Cost: $650K
Est. Completion: Nov. 2024

8.7 8
800 Recovery
Roadway Relocation
Est. Cost: $2M
Est. Completion: Summer 2026

8.8 9
Lighthouse Point
Hazard Analysis &
Engineering Study
Est. Cost: $150K-$350K
Est. Completion: Summer 2025

8.9 Questions?
10 8.10
Meeting Type
Holiday
Jewish Holiday
Regular Meeting
Special Meeting (will be added as scheduled)
Study Session (will be added as scheduled)
Budget Hearing
DATE Location Meeting Type
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public October 2/3
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public October 11/12
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public November 11
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public November 28
November 29
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public December 25/26
December 25
December 24 Meeting Cancelled - CITY COUNCIL DARK
City Hall Closure - Christmas Day
Rosh Hashanah (City observed - sundown to sundown)
November 19
October 8
October 22
City Hall Closure - Veteran's Day (observed)
Hanukkah (City observed - sundown to sundown)
Yom Kippur (City observed - sundown to sundown)
City Council Meeting Calendar for 2024
December 10
City Hall Closure - Thanksgiving Day
City Hall Closure - Day After Thanksgiving Day
September 24
Please note: Meeting times are not final and are likely to change

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

MINUTES OF A CITY COUNCIL MEETING
August 27, 2024
12:30 PM
Mayor Keeley opened the City Council Closed Session at 12:35 p.m. in a public meeting via Zoom and in Council Chambers, for the purpose of announcing the agenda, and receiving public testimony.

Roll Call

Present: Councilmembers Newsome, Brown, Watkins (arrived at 12:36 p.m. after roll call), Brunner, Kalantari-Johnson (arrived at 12:35 p.m. after roll call); Vice Mayor Golder (arrived at 12:35 p.m. after roll call); Mayor Keeley.

Absent: None.

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

Bush.

Statements of Disqualification – Councilmember Brunner announced she will be recusing herself from item 2 as it relates to her employment.

Public Comment
Mayor Keeley opened the public comment period at 12:36 p.m. There were no speakers. Mayor Keeley closed the public comment period at 12:36 p.m., at which time the meeting was closed to the public and Council adjourned to the Courtyard Conference Room.

10.1 August 27, 2024 CITY COUNCIL MINUTES 6919
Closed Session

1. Conference with Legal Counsel – Liability Claims (Government Code §54956.95) 1) Claimant: David Santana Mata
2) Claimant: State Farm Insurance
3) Claimant: Efrain and Maritza Ayala Talamantes Haro
4) Claimant: Frances S. Lopez
Claims against the City of Santa Cruz
Council received a status report, items 1—3 were taken up under agenda item 14 and took no reportable action.

2. Real Property Negotiations (Government Code §54956.8) Property: 877 Cedar Street
APN: 005-951-01
Owner: Ecology Action
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Ecology Action Under Negotiation: Price, terms of payment, or both
Council received a status report from and gave direction to the City Negotiator and took no reportable action.

3. Conference with Legal Counsel – Anticipated Litigation (Government Code §54956.9(d)(2))
Significant exposure to litigation (one potential case to be discussed) Council received a status report, gave direction, and took no reportable action.

4. Conference with Legal Counsel – Anticipated Litigation (Government Code §54956.9(d)(4))
Initiation of litigation (one potential case to be discussed) Council received a status report, gave direction, and took no reportable action.

10.2 August 27, 2024 CITY COUNCIL MINUTES 6920
City of Santa Cruz
809 Center Street
Santa Cruz, California 95060

MINUTES OF A CITY COUNCIL MEETING
August 27, 2024
1:30 PM
Call to Order – Mayor Keeley called the meeting to order at 1:33 p.m. in Council Chambers.

Roll Call

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

Absent: None.

Staff: City Manager M. Huffaker, City Attorney T. Condotti, Director of Information Technology K. Morgan, Director of Finance E. Cabell, Chief of Fire R. Oatey, Director of Water H. Luckenbach, Director of Public Works N. Nguyen, Director of Parks and Recreation T. Elliot, Director of Planning and Community Development L. Butler, Director of Economic Development and Housing B. Lipscomb (via Zoom), Chief People Officer S. De Leon (via Zoom), Associate Planner II E. Dhakni, Parking Program Manager G. Hussey, Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush.

Oral Communications Announcement - The Mayor provided a brief announcement about Oral Communications.

Oral Communications
At 1:34 p.m. Mayor Keeley opened Oral Communications for members of the public who wished to speak regarding items not listed on the City Council agenda.

Kevin Cummings spoke regarding the St. George Apartments, the five handicap accessible units, and the rent increases they are facing.

Unidentified person spoke regarding homelessness encampments and a meeting happening at the Capitola Library tonight addressing this matter.

At 1:39 p.m. Mayor Keeley closed Oral Communications.

10.3 August 27, 2024 CITY COUNCIL MINUTES 6921
Presentations

5. Mayoral Proclamation Declaring September 2024 as Ovarian Cancer Awareness Month
Councilmember Brown read from and presented a proclamation to Jenny Hart, Leader Advocate for the Ovarian Cancer Research Alliance, declaring September 2024 as Ovarian Cancer Awareness Month.

6. Oral Health Access 2024—2028 Strategic Plan
Sheree Storm, Dientes Chief Strategy Officer, and David Brody, First 5 Santa Cruz County Executive Director, gave a presentation on the Oral Health 2024— 2028 Strategic Plan.

Presiding Officer's Announcements
Statements of Disqualification – None.

Additions and Deletions – None.

City Attorney Report on Closed Session – See page 6919 for the report.

Council Meeting Calendar

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

10.4 August 27, 2024 CITY COUNCIL MINUTES 6922
Consent Agenda
Councilmember Brunner made a comment on items 11, 13, and 18.

Councilmember Kalantari-Johnson made a comment on item 13.

Vice Mayor Golder made a comment on items 11, 12, 17, 18 and 20.

Councilmember Watkins made a comment on items 9 and 13.

Councilmember Brown made a comment on items 9, 10, and 13.

Councilmember Newsome made a comment on items 10 and 17.

Mayor Keeley made a comment on items 10 and 13.

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

MOTION: Councilmember Watkins moved, seconded by Councilmember Brunner, to approve the Consent Agenda.

ACTION: The motion carried unanimously with the following vote.

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

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

8. Minutes of the August 13, 2024 City Council Meeting (CC) Motion carried to approve as submitted.

9. 2024 A City Like Me: Santa Cruz Report (CM)
Motion carried to accept the 2024 A City Like Me: Santa Cruz report as submitted.

10. Endorsement of California Senate Bill 867 (CN)
Motion carried to direct the Mayor to send a letter of endorsement in support of California Senate Bill 867.

10.5 August 27, 2024 CITY COUNCIL MINUTES 6923
Consent Agenda (continued)

11. Approve Purchase of Pierce Enforcer Pumper Fire Engine and Lease Agreement with PNC Equipment Finance (FD)
Motion carried to:
 Award a contract for the purchase of a Pierce Enforcer Pumper Fire Engine (Apparatus) to Golden State Fire Apparatus in the amount of $1,029,503.26.  Adopt Resolution No. NS-30,374 approving a lease agreement with PNC Equipment Finance to prepay for the purchase and finance the Apparatus for the City with a 5.32% interest rate over three (3) years for a total cost of $1,140,934.14; and authorizing the City Manager to execute the agreement and related documents in a form to be approved by the City Attorney.

12. First Amendment to the Agreement for Fire Protection and Emergency Response Services and First Amendment of Lease of the UCSC Fire Station (FD) Motion carried to authorize the City Manager to execute the First Amendment to the Agreement for Fire Protection and Emergency Response Services (Service Agreement) and the First Amendment of Lease of the University of California Santa Cruz (UCSC) Fire Station (Lease) between the City of Santa Cruz (City) and the Regents of the University of California, on behalf of its Santa Cruz Campus, extending the term for one (1) year with minor modifications.

13. Council Policy 5.19 for Stipend for Advisory Body Members (FN) Motion carried to:
 Adopt Resolution No. NS-30,375 approving Council Policy 5.19 – Stipend for Advisory Body Members;
 Direct staff to prepare amendments to Ordinance 1440 and Chapter 18.41 of the Municipal Code; and
 Direct staff to create a communication and training plan to promote the new policy.

10.6 August 27, 2024 CITY COUNCIL MINUTES 6924
Consent Agenda (continued)

14. Liability Claims Filed Against the City of Santa Cruz (FN) Motion carried to reject the liability claims of 1) David Santana Mata, 2) State Farm Insurance, and 3) Efrain and Maritza Ayala Talamantes Haro; based on staff recommendation.

15. Award Contract for Disaster Cost Recovery Services (FN) Motion carried to:
 Award a three-year contract for Disaster Cost Recovery Services to Integrated Solutions Consulting (ISC) beginning on August 27, 2024, and ending June 30, 2025, 2026, and 2027 (with an option for an additional two years for Fiscal Years ending June 30, 2028, and 2029);  Authorize the City Manager to execute an agreement in a form approved by the City Attorney with ISC; and
 Authorize the Finance Director to execute any amendments that may be needed for new emergencies during the course of the contract.

16. Microsoft SharePoint Implementation and Configuration Services (IT) Motion carried to:
 Accept the change order from AdaptivEdge, LLC for additional Microsoft SharePoint Online implementation and configuration services in the amount of $31,400.00, for a total contract amount of $127,400.00. The IT Director is authorized to execute further change orders within the approved project budget; and
 Authorize the City Manager to execute additional contracts with AdaptivEdge, LLC for Microsoft SharePoint Online implementation and configuration services in a form approved by the City Attorney. The IT Director is authorized to execute change orders within the approved project budget.

10.7 August 27, 2024 CITY COUNCIL MINUTES 6925
Consent Agenda (continued)

17. Downtown Recovery – Phase IV – Authorization to Award Bid for Downtown Site Furnishings Painting to H.B. Restoration Inc. in the Amount of $112,550.00 (PR) Motion carried to authorize staff to award a contract for services in the amount of $112,550.00 to H.B. Restoration for the painting of existing site furnishings and kiosks, serving as the final component of the Downtown Recovery – Phase I-IV project (c302312). Per Resolution No. NS-27,563, the City Manager is hereby authorized and directed to execute the contract in a form approved by the City Attorney. The Parks and Recreation Director, Economic Development and Housing Director, and Public Works Director are authorized to execute change orders within approved budgets.

18. Award Contract for Purchase of Three Refuse Trucks (PW) Motion carried to award a contract for the purchase of one roll-off and two split rear loader vehicles from TEC of California (Oakland, CA) in the amount of $1,390,000.

19. Resource Recovery Facility North Canyon Paving Project (m400020) – Authorization to Advertise for Bids and Award Contract (PW) Motion carried to approve the plans and specifications for the Resource Recovery Facility North Canyon Paving Project (m400020) and authorize staff to advertise for bids and award the contract. The City Manager is hereby authorized and directed to execute an agreement in a form approved by the City Attorney. The Director of Public Works is authorized to execute change orders within the approved project bud

20. Fisheries Monitoring Support – Award of Professional Services Contract to Confluence Restoration (WT)
Motion carried authorizing the City Manager to execute an agreement in a form approved by the City Attorney with Confluence Restoration (Santa Cruz, CA) for ongoing fisheries biology support of the City of Santa Cruz's Habitat Conservation Plan development and Incidental Take Permitting in the amount of $127,860.00 and to authorize the Water Director to execute up to three annual agreement renewals.

10.8 August 27, 2024 CITY COUNCIL MINUTES 6926
Consent Agenda (continued)

21. Acceptance and Budgeting of Grant Funding for Brackney Landslide Area Pipeline Risk Reduction Project - Budget Adjustment (WT) Resolution No. NS-30,376 was adopted authorizing acceptance of additional Hazard Mitigation Grant Program funding in the amount of $3,858,079 and amending the Water Department FY 2025 revenue budget for the Capital Investment Program (c702002), Brackney Landslide Area Pipeline Risk Reduction Project, accordingly.

End Consent Agenda
Consent Public Hearings
Mayor Keeley opened the public comment period. There were no speakers. Mayor Keeley closed the public comment period.

MOTION: Councilmember Brown moved, seconded by Councilmember KalantariJohnson, to approve the Consent Public Hearing Agenda.

ACTION: The motion carried unanimously with the following vote.

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

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

22. 2nd Reading and Final Adoption of Ordinance No. 2024-11 which Amends Chapter 24.12 of the Santa Cruz Municipal Code Related to Historic Variations in Response to Action by the California Coastal Commission (PL) Ordinance No. 2024-11 was adopted finding that the project is exempt under the California Environmental Quality Act (CEQA) and amending parts of Chapter 24.12 of the Santa Cruz Municipal Code (SCMC) related to Historic Variations in response to action by the California Coastal Commission.

10.9 August 27, 2024 CITY COUNCIL MINUTES 6927
Consent Public Hearings (continued)

23. 2nd Reading and Final Adoption of Ordinance No. 2024-12 Amending Municipal Code Chapter 24.10 and Sections 24.12.190, 24.12.290, and 24.12.1108 and Adding New Sections 24.10.2342 and 24.12.191 to Streamline Permitting and Establish Standards for Private Property Outdoor Seating Associated with Eating and/or Drinking Establishments (PL/EDH)
Motion carried to:
 Adopt Ordinance No. 2024-12 amending Santa Cruz Municipal Code Chapter

24.10 and Sections 24.12.190, 24.12.290, and 24.12.1108, and adding new Sections 24.10.2342 and 24.12.191 to streamline permitting and establish standards for private property outdoor seating associated with eating and/or drinking establishments.
 Adopt Resolution No. NS-30,377 authorizing the City Manager to submit the proposed Title 24 amendments to the California Coastal Commission for final certification.

24. 2nd Reading and Final Adoption of Ordinance No. 2024-13 Amending Uncodified Ordinance No. 2020-27 Extending Temporary Use of Certain Adjacent Public Street and Outdoor Areas for Eligible Businesses that Extends the Temporary Period for Commercial Use on Private Property from May 31, 2025, to July 1, 2026 (PL/EDH)
Ordinance No. 2024-13 was adopted amending uncodified Ordinance No. 2020- 27 extending temporary use of certain adjacent public street and outdoor areas for eligible businesses that extends the temporary period for commercial use on private property from May 31, 2025, to July 1, 2026.

10.10 August 27, 2024 CITY COUNCIL MINUTES 6928
General Business

25. Harvey West Pool Update and Amending the FY 2025 Budget and Appropriation of Funds for Harvey West Pool - Budget Adjustment (PR)
Director of Parks and Recreation T. Elliot gave a presentation and responded to Council questions.

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

Unidentified person
Mayor Keeley closed the public comment period.

MOTION: Councilmember Brown moved, seconded by Councilmember Watkins, to:
 Receive an update on the Harvey West Pool operational plan; and  Adopt Resolution No. NS-30,378 to amend the Fiscal Year 2025 budget and appropriate funds in the amount of $400,000 from the fund balance of the General Fund, to be allocated to Parks and Recreation for expenses to run and resource a Harvey West Pool hybrid operational model.

ACTION: The motion carried unanimously with the following vote.

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

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

10.11 August 27, 2024 CITY COUNCIL MINUTES 6929
General Business (continued)

26. No-Parking Street Sweeping Pilot Program (PW)
Associate Planner II E. Dhakni gave a presentation and responded to Council questions.

Parking Program Manager G. Hussey responded to Council questions.

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

Unidentified person
Jasmeen Miah
Mayor Keeley closed the public comment period.

MOTION: Councilmember Kalantari-Johnson moved, seconded by Councilmember Newsome, to:
 Adopt Resolution No. NS-30,379 to approve parking restrictions for the pilot street sweeping program in Zones 1—4 and Zones 5—6 during posted hours and direct the City Manager or designee to implement the 1-year pilot program, upon approval of the Coastal Development Permit for Zones 5—6.

Zones 5—6 are located within the Coastal Zone, the Coastal Development Permit will be subject to a Coastal Commission appeal period following approval by the Council; and;
 Direct staff to return before the conclusion of the No-Parking Street Sweeping Pilot Program with findings and recommendations.

ACTION: The motion carried with the following vote.

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

NOES: Councilmember Brown.

ABSENT: None.

DISQUALIFIED: None.

10.12 August 27, 2024 CITY COUNCIL MINUTES 6930
General Business (continued)

27. Ordinance Amending Chapter 2.40, Boards and Commissions, Related to the Membership Term Year for the Commission for the Prevention of Violence Against Women (CPVAW) (CC)
City Clerk Administrator B. Bush spoke.

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

Mayor Keeley closed the public comment period.

MOTION: Councilmember Kalantari-Johnson moved, seconded by Councilmember Watkins, to introduce for publication Ordinance No. 2024-14 amending Chapter 2.40, Boards and Commissions, related to the membership term year for the Commission for the Prevention of Violence Against Women.

ACTION: The motion carried unanimously with the following vote.

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

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

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

Casey Van den Heuvel
Eric Christen
Rex Hime
Casey Beyer
Mayor Keeley closed the public comment period.

10.13 August 27, 2024 CITY COUNCIL MINUTES 6931
General Business (continued)

28. Award Professional Service Agreement to Intelligent Partnerships to Explore Feasibility of Community Workforce or Project Labor Agreements for City Capital Investment Projects (CN) (continued)
MOTION: Councilmember Newsome moved, seconded by Councilmember Watkins, to:
 Award a professional services agreement to Intelligent Partnerships to conduct a feasibility study of the potential options and implications of adopting either a Community Work Force Agreement (CWA) or Project Labor Agreement (PLA); and
 Authorize the City Manager to execute said agreement in the form approved by the City Attorney. The Water and Public Works Directors are authorized to execute non-substantive contract amendments within the approved budget.

ACTION: The motion carried unanimously with the following vote.

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

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

29. Newell Creek Pipeline Replacement – Felton to Graham Hill Water Treatment Plant Project (c702105): Purchase of Real Property, Approval of Plans and Specifications, Authorization to Advertise for Bids and Award of Contract; Authorizing Approval of an SRF Financing Agreement, and Acceptance of Community Grant Program Funds and Amending Water Department FY 2025 Budget – Budget Adjustment (WT)
Director of Water H. Luckenbach responded to Council questions.

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

Mayor Keeley closed the public comment period.

10.14 August 27, 2024 CITY COUNCIL MINUTES 6932
General Business (continued)

29. Newell Creek Pipeline Replacement – Felton to Graham Hill Water Treatment Plant Project (c702105): Purchase of Real Property, Approval of Plans and Specifications, Authorization to Advertise for Bids and Award of Contract (WT) (continued)
MOTION: Councilmember Watkins moved, seconded by Councilmember Newsome, to:
 Adopt Resolution No. NS-30,380 authorizing and directing the City Manager to execute a purchase sale agreement between the City of Santa Cruz and Santa Cruz, Big Trees & Pacific Railway for the permanent easement on APN 066-211-03 for the Newell Creek Pipeline Replacement – Felton to Graham Hill Water Treatment Plant Project (c702105);
 Adopt Resolution No. NS-30,381 authorizing and directing the City Manager to execute a purchase sale agreement between the City of Santa Cruz and Santa Cruz, Big Trees & Pacific Railway for a permanent easement on APN 066-212-05;
 Approve the plans and specifications for the Newell Creek Pipeline Replacement – Felton to Graham Hill Water Treatment Plant Project (c702105) and authorize staff to advertise for bids at
https://procurement.opengov.com/portal/santacruzca. The City Manager is hereby authorized and directed to execute the contract as authorized by Resolution No. NS-27,563; and authorize the Water Director to execute change orders within the approved project budget;
 Adopt Resolution No. NS-30,382 authorizing approval of a financing agreement in an amount not to exceed $41,352,000 with the California State Water Resources Control Board for the Newell Creek Pipeline Replacement – Felton to Graham Hill Water Treatment Plant Project (c702105); and
 Adopt Resolution No. NS-30,383 amending the FY 2025 budget to accept $959,752 in Community Grant Funds for the Newell Creek Pipeline Replacement – Felton to Graham Hill Water Treatment Plant Project (c702105); and
 Authorize the Mayor to write a letter to Congressman Jimmy Panetta thanking him for his actions in securing around $1,000,000 in federal funds for this project.

10.15 August 27, 2024 CITY COUNCIL MINUTES 6933
General Business (continued)

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

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

Adjournment – Vice Mayor Golder moved, seconded by Councilmember Brown, to adjourn. By consensus City Council adjourned at 3:36 p.m.

Respectfully Submitted:

Julia Wood, Deputy City Clerk Administrator
Attest:

Bonnie Bush, City Clerk Administrator
Approved:

Fred Keeley, Mayor

10.16 City Council

AGENDA REPORT
DATE: 08/22/2024
AGENDA OF: 09/10/2024
DEPARTMENT: City Clerk
SUBJECT: Commission for the Prevention of Violence Against Women (CPVAW) Appointment (CC)
RECOMMENDATION: Motion to approve Councilmember Kalantari-Johnson's nomination of Shiri Gradek to the Commission for the Prevention of Violence Against Women (CPVAW).

BACKGROUND: The Commission for the Prevention of Violence Against Women is comprised of members who have been nominated by each Councilmember. When a new Councilmember is elected, or if there is a vacancy for any reason, new commissioners must be nominated.

DISCUSSION: Due to the resignation of Gabriela Trigueiro, Councilmember KalantariJohnson has a nomination to the Commission for the Prevention of Violence Against Women, which Council must vote to approve. Councilmember Kalantari-Johnson would like to nominate Shiri Gradek to serve on the Commission for the duration of Commissioner Trigueiro’s term ending January 31, 2025, plus a full term, ending January 31, 2029, eligible for reappointment.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: None.

HEALTH IN ALL POLICIES (HiAP): CPVAW aims to improve public health and safety of those affected by violence.

FISCAL IMPACT: None.

Prepared By:

Bonnie Bush
City Clerk
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. APPLICATION.PDF

11.1 11.2

11.3 City Council

AGENDA REPORT
DATE: 08/22/2024
AGENDA OF: 09/10/2024
DEPARTMENT: City Manager
SUBJECT: Authorization of a Contract with Housing Matters for Encampment Resolution Funding Grant (CM)
RECOMMENDATION: Motion to:
1) Authorize the City Manager to execute an agreement in a form to be approved by the City Attorney, with Housing Matters in an amount not to exceed $3,882,184 to implement Encampment Resolution Fund Grant funded work; and
2) Authorize the City Manager to execute change orders within the approved budget.

BACKGROUND: Over the last two years the City has seen notable progress in reducing homelessness. The 2023 and 2024 Santa Cruz County Point-in-Time Counts have reported decreases in homelessness within the City of 29% and 36%, respectively. However, even with this recent progress, unsheltered homelessness and the impact of encampments continues to be a significant issue in the community. The City’s recently adopted three-year Homelessness Response Strategic Plan seeks to continue this progress, and holds reducing the number of people experiencing homelessness, and in particular, unsheltered homelessness, as one of its key objectives, and continues to seek funding to support these efforts.

In November 2023, the California Interagency Council on Homelessness (Cal-ICH) issued a Notice of Funding Availability for the Encampment Resolution Fund - Round 3. The City collaborated with Housing Matters and the County of Santa Cruz Housing for Health Division in the development of a grant application in response to this opportunity. Collectively, the decision was made to focus this request on encampments in the Harvey West neighborhood (Friendship Garden & Coral Street) which represented the largest encampments in the City at the time. The selection of this site also allows for leveraging the nearby access to supportive services, shelter, and interim housing at Housing Matters, the County’s largest provider of services related to homelessness.

On January 23, 2024, the City Council approved a resolution authorizing the City to apply to the California Interagency Council on Homelessness (Cal-ICH) for Encampment Resolution Funding Program Round 3 (ERF-3-R) funding. The City’s submitted the grant application on January 31, 2024, ahead of the deadline for the first application window for this funding. The City requested $4,032,184. In addition to the expertise and proximity to existing and new services this collaboration with Housing Matters and the County of Santa Cruz provides, this

12.1 partnership brought forward an additional $3 million in local math through other funding commitments that improved the competitiveness of this grant application.

DISCUSSION: On April 18, 2024, the City was notified that it was awarded an ERF grant in the amount of $4.032 million over two years (the full amount requested) to implement the work in partnership with Housing Matters and the County of Santa Cruz. As described in the grant application, this work will:

1. Serve approximately 55 unhoused individuals in the Coral St. and Harvey West area by providing them interim housing and supporting their progress towards housing solutions.

2. Provide targeted outreach efforts to individuals camping on Coral Street.

3. Connect these individuals experiencing homelessness to interim shelter where they can stabilize and take advantage of case coordination.

4. Expand access to case management and housing navigation by hiring additional skilled personnel.

5. Expand interim shelter capacity on the Housing Matters campus and support continued operations of existing interim shelter to provide more individuals the opportunity to participate in case management and eventual re-housing.

The budget for Housing Matters proposed contract for the two-year grant period is $3,882,184.

This includes personnel costs of $1,638,617 for approximately 11 full-time equivalent positions, $1,804,617 related to Interim Housing infrastructure (20 modular units), and $438,950 in program operating costs.

The grant will support the expansion of services on the Housing Matters campus, which already provides robust day services as well as interim housing. The requested funds will allow both Housing Matters and the City to expand outreach and housing connection staff to specifically target the prioritized encampment, as well as adding 20 new non-congregate modular shelter units at the campus. The funding will provide the resources necessary for the infrastructure, supportive services staff, and other operating costs related to the interim housing on the campus.

The proposal leverages a range of permanent housing resources, including 13 new Permanent Supportive Housing (PSH) vouchers through a 2023 award of Continuum of Care Unsheltered Notice of Funding Opportunity funding, turnover of existing PSH units filled through Coordinated Entry, and new units in the pipeline that the City is developing. The proposal also leverages significant services funding, including California Advancing and Innovating Medi-Cal (CalAIM) funds that will support the additional housing connector staff at Housing Matters.

The desired outcomes for this grant funded work include:

1. Of the 55 encampment residents served over the course of the ERF grant period, 40 (73%) will secure interim housing.

2. Of the 55 encampment residents served over the course of the ERF grant period, 30 (55%) will secure permanent housing.

3. Of the 55 encampment residents served over the course of the ERF grant period, 50 will receive housing connector and housing navigation services (91%).

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: Not applicable.

12.2 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 actions and approaches discussed herein support the pillar of equity by providing outreach, shelter, and connection to services that support individuals experiencing homelessness. They support public health by providing mental health, case management, and hygiene resources to those experiencing homelessness. The actions and approaches support sustainability by providing resource and land management staff, shelter, and hygiene resources, thereby decreasing the amount of litter, debris, and human waste that is disposed of improperly.

Therefore, these actions and approaches are consistent with the three pillars of HiAP.

FISCAL IMPACT: The Encampment Resolution Fund grant award from the State will cover the costs related to this contract. There is no impact to the General Fund.

Prepared By:

Larry Imwalle
Homelessness Response
Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. PROFESSIONAL SERVICES AGREEMENT.DOCX

2. ERF-3-R AWARD LETTER.PDF

12.3 City of Santa Cruz Professional Services Agreement for Interim Housing Development and Operation July 2024 (Form Rev.01/24 ) Page 1
Professional Services Agreement With

HOUSING MATTERS
For INTERIM HOUSING DEVELOPMENT AND OPERATION (SEPTEMBER 15, 2024 – JUNE 30, 2026)
THIS AGREEMENT for professional services is made by and between the City of Santa Cruz (“City”) and People First of Santa Cruz County, a nonprofit corporation (“Consultant”) (each is referred to individually as a “Party” and collectively, as the “Parties”) as of September 15, 2024 (the “Effective Date”).

NOW, THEREFORE, in consideration of each other’s mutual promises, the Parties hereto agree as follows:

SECTION 1: SCOPE OF WORK
Consultant will furnish services as defined and described in the Scope of Work, attached hereto as Exhibit A and incorporated herein.

SECTION 2: RESPONSIBILITIES OF CONSULTANT
All work performed by Consultant, or under Consultant’s direction, shall be rendered in accordance with the generally accepted practices, and to the standards of, Consultant's profession. Consultant represents and agrees that Consultant: (i) is fully experienced and properly qualified to perform the work and services provided for herein, (ii) has the financial capability required for the performance of the work and services, and (iii) is properly equipped and organized to perform the work and services in a competent, timely, and workmanlike/professional manner, in accordance with the requirements of this Agreement.

Consultant shall not undertake any work beyond the Scope of Work set forth in Exhibit A unless such additional work is approved in advance and in writing by City. The cost of such additional work shall be reimbursed to Consultant by City on the same basis as provided for in Section 4.

If, in performing the work, it is necessary to conduct field operations, security and safety of the job site will be the Consultant's responsibility excluding, the security and safety of any facility of City within the job site which is not under the Consultant's control.

Consultant shall meet with Larry Imwalle, Homelessness Response Manager, hereinafter called "Director", or other designated and authorized City personnel, or third parties as necessary, on all matters connected with carrying out of Consultant’s services described in Exhibit A. Such meetings shall be held at the request of either Party. Review and City approval of completed work shall be obtained monthly, or at other intervals as may be mutually agreed upon during the course of this Agreement. Review, approval, or acceptance of Consultant’s work by City or others shall not relieve Consultant from responsibility for errors and omissions in Consultant’s work.

SECTION 3: RESPONSIBILITIES OF THE CITY
City shall make available to Consultant all necessary data and information in the City's possession and shall actively assist Consultant in obtaining such information from other agencies and individuals as needed. Consultant is entitled to reasonably rely upon the accuracy and completeness of such data and information, and Consultant shall provide City prompt written notice of any known defects in such data and information.

The Director may authorize a staff person to serve as his or her representative. The work in progress shall be reviewed at such intervals as may be mutually agreed upon between the Parties. The City will be the sole judge of acceptable work, provided that such approval will not be unreasonably withheld or delayed. If the work is not acceptable, City will inform Consultant of the changes or revisions necessary to secure approval.

12.4 City of Santa Cruz Professional Services Agreement for Interim Housing Development and Operation July 2024 (Form Rev.01/24 ) Page 2
SECTION 4: FEES AND PAYMENT
For services actually performed, the City will compensate Consultant at the rates set forth in the Fee Schedule detailed in Exhibit B and in accordance with the terms set forth therein. Payment for Consultant's services in carrying out the entire Scope of Work shall be made within the budget limit, or limits shown, upon Exhibit B.

Consultant agrees that the payments to Consultant specified in this Section 4 will constitute full and complete compensation for all obligations assumed by Consultant under this Agreement. Such payments shall be considered the full compensation for all personnel, materials, supplies, and equipment used by Consultant in the Scope of Work Where conflicts regarding compensation may occur, the provisions of this section apply.

Variations from the budget for each task which are justified by statements indicating personnel time expended and submittal of a revised budget are only allowed with prior City approval; however, in no event shall the total fee charged for the Scope of Work set forth in Exhibit A exceed the budget of $3,882,184 (“the Maximum Fee Amount”) without advance written City authorization in the form of an amendment or change order.

This Agreement is contingent upon the appropriation of sufficient funding by the City for the services covered by this Agreement. If funding is reduced or deleted by the City for the services covered by this Agreement, the City has the option without penalty or liability to either terminate this Agreement or to offer an amendment to this Agreement indicating the reduced amount.

SECTION 5: TRAVEL REIMBURSEMENT POLICY
The City shall not be responsible for any travel, meal, or lodging reimbursements to Consultant and/or Consultant’s employees.

SECTION 6: CHANGES IN WORK
City may negotiate changes in the Scope of Work. No changes in the Scope of Work shall be made without the written approval of City and Consultant. Any change requiring compensation in excess of the sum specified in Exhibit B shall be approved in advance in writing by the City. Only City’s authorized representative(s) is authorized to approve changes to this Agreement on behalf of City.

SECTION 7: TERM AND SCHEDULE
The term of this Agreement shall be effective September 15, 2024, and terminating on June 30, 2026. At the option of the City, this Agreement may be renewed annually under the same contractual terms and conditions by letter agreement.

Consultant shall begin work as specified in a written authorization (e.g., Notice to Proceed) to perform services. The written authorization to perform work shall not be issued until after this Agreement has been approved and authorized by the City.

Neither party will be held responsible for delay or default caused by declared emergencies, natural disasters, or any Force Majeure event which is beyond the party's reasonable control. Consultant will, however, make all reasonable efforts to remove or eliminate such a cause of delay or default and will, upon the cessation of the cause, diligently pursue performance of its obligations in this Agreement.

12.5 City of Santa Cruz Professional Services Agreement for Interim Housing Development and Operation July 2024 (Form Rev.01/24 ) Page 3
The City reserves the right to obtain the item(s) and/or services covered by this Agreement from another source during any on-going suspension of service due to the circumstances outlined above.

SECTION 8: TERMINATION
The City may terminate the Agreement for any reason by providing written notice to Consultant not less than 30 calendar days prior to an effective termination date.

The City may, at its option, allow Consultant to cure its failure to perform within 10 business days (or longer period authorized in writing by the City) from the date of the City’s termination notice. The termination shall become effective if Consultant has not cured within the specified time period to the City’s satisfaction.

Consultant may terminate this Agreement for cause if the City fails to cure a material default in performance within a period of 30 calendar days (or such longer period agreed to by the Consultant), from the date of the Consultant’s written termination notice specifying the default in performance. Consultant must provide a written notice of termination to the City not less than 30 calendar days of the effective termination date.

Upon notice of termination by either the City or Consultant, the Consultant will immediately act to not incur any additional obligations, costs or expenses, except as may be reasonably necessary to terminate its activities. The City’s only obligation to the Consultant will be just and equitable payment for services authorized by, and received to the satisfaction of, the City up to and including the effective date of termination less any amounts withheld. All finished or unfinished work or documents procured or produced under the Agreement will become property of the City upon the termination date. In the event of Consultant’s failure to perform pursuant to the Agreement, the City reserves the right to obtain services elsewhere and Consultant will be liable for the difference between the prices set forth in the terminated Agreement and the actual cost to the City. Termination of the Agreement pursuant to this paragraph shall not relieve the Consultant of any liability to City for additional costs, expenses, or damages sustained by City due to failure of the Consultant to perform pursuant to the Agreement. City may withhold any payments to Consultant for the purpose of set-off until such time as the exact amount of damages due City from Consultant is determined. After the effective date of termination, Consultant will have no further claims against the City under the Agreement. No other compensation will be payable for anticipated profit on unperformed services.

SECTION 9: INSURANCE
Prior to the beginning of and throughout the duration of the Agreement, Consultant will maintain and comply with the Insurance Requirements as set forth in Exhibit D. Consultant will insure the City against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder. The insurance coverages required shall not in any way limit the liability of the Consultant.

SECTION 10: INDEMNIFICATION
Consultant agrees, to the fullest extent permitted by law, to indemnify, defend, and hold harmless the City, its officials, officers, employees, agents, and volunteers (collectively, “Indemnitees”) from and against any and all liability, claim, action, loss, injury, damage, judgment, or expense, including attorneys’ fees and costs (“Losses”) caused by or resulting from the negligence, recklessness, or willful misconduct of Consultant, Consultant’s officers, employees, agents, or subcontractors in any way related to this Agreement. Consultant’s duty to indemnify and hold harmless Indemnitees shall not apply to the extent such Losses are caused by the sole or active negligence or willful misconduct of Indemnitees. Consultant’s obligation to defend shall arise regardless of any claim or assertion that Indemnitees caused or contributed to the Losses.

In the event this Agreement involves the performance of design professional services by Consultant, Consultant’s officers, employees, agents, or subcontractors, Consultant’s costs to defend Indemnitees shall not exceed the

12.6 City of Santa Cruz Professional Services Agreement for Interim Housing Development and Operation July 2024 (Form Rev.01/24 ) Page 4
Consultant’s proportionate percentage of fault per Civil Code §2782.8. This section shall survive the termination or expiration of this Agreement.

SECTION 11: EQUAL EMPLOYMENT OPPORTUNITY/NON-DISCRIMINATION POLICIES City’s policies promote a working environment free from abusive conduct, discrimination, harassment, and retaliation; and require equal opportunity in employment for all regardless of race, religious creed (including religious dress and grooming practices), color, national origin (including language use restrictions), ancestry, religion, disability (mental and physical), medical condition, sex, gender (including gender identity and gender expression), physical characteristics, marital status, age, sexual orientation, genetic information (including family health history and genetic test results), organizational affiliation, and military or veteran status, or any other consideration made unlawful by local, State or Federal law. City requires Consultant to comply with all applicable Federal and State and local equal employment opportunity laws and regulations, and Consultant is responsible for ensuring that effective policies and procedures concerning the prevention of abusive conduct, discrimination, harassment, and retaliation exist in Consultant’s business organization. The City’s current Equal Employment Opportunity and Non-Discrimination policies to which this Section applies may be viewed at http://www.codepublishing.com/CA/SantaCruz/?SantaCruz09/SantaCruz0983.html and http://www.cityofsantacruz.com/home/showdocument?id=59192.

SECTION 12: LEGAL ACTION/ATTORNEYS’ FEES
If any action at law or in equity is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief. The laws of the State of California, with jurisdiction in the Santa Cruz County Superior Court, shall govern all matters relating to the validity, interpretation, and effect of this Agreement and any authorized or alleged changes, the performance of any of its terms, as well as the rights and obligations of Consultant and the City.

SECTION 13: AMENDMENTS
This Agreement may not be amended in any respect except by way of a written instrument which expressly references and identifies this particular Agreement, which expressly states that its purpose is to amend this particular Agreement, and which is duly executed by the City and Consultant. Consultant acknowledges that no such amendment shall be effective until approved and authorized by the City’s authorized representative. No representative of the City is authorized to obligate the City to pay the cost or value of services beyond the scope of services set forth in Exhibit A.

Such authority is retained solely by the City Manager, Director, or their designee. Unless expressly authorized by the City Manager or Director, Consultant’s compensation shall be limited to that set forth in Exhibit B, Fee Schedule.

SECTION 14: MISCELLANEOUS PROVISIONS

1. Project Manager/Key Staff. Director reserves the right to evaluate and confer with Consultant regarding the project manager or other key staff assigned by Consultant to perform the work under this Agreement. Consultant shall replace the project manager or key staff upon Director’s request due to Director’s concern about their performance.

Otherwise, no change in assignment by the Consultant may occur without prior written approval of the City.

2. Consultant Services Only. Consultant is employed to render professional services only and any payments made to Consultant are compensation solely for such professional services.

3. Independent Contractor. In the performance of this Agreement, it is expressly understood that Consultant, including each of Consultant’s employees, agents, subcontractors or others under Consultant’s supervision or control, is an independent contractor solely responsible for its own acts and omissions, and shall not be considered an employee of the City for any purpose. Consultant agrees to indemnify, defend and hold harmless the City, its officials, officers,

12.7 City of Santa Cruz Professional Services Agreement for Interim Housing Development and Operation July 2024 (Form Rev.01/24 ) Page 5
employees, and agents against any claim or liability, including attorneys’ fees and costs, arising in any manner related to this Agreement that an employee, agent or others under Consultant’s supervision or control was misclassified.

In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

4. Consultant Not an Agent. Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.

5. Subcontractors. Consultant shall obtain prior approval of the City prior to subcontracting of any work pursuant to this Agreement. If at any time, the City determines any subcontractor is incompetent or unqualified, Consultant will be notified and will be expected to immediately cancel the subcontract. Consultant shall require and verify that all subcontractors maintain insurance meeting all of the requirements stated herein, including naming the City of Santa Cruz, its officers, officials, employees, agents, and volunteers as additional insureds. Any modification to the insurance requirements for subcontractors must be agreed to by the City in writing.

Consultant shall be as fully responsible to the City for the negligent acts and omissions of its contractors and subcontractors or subconsultants, and of persons either directly or indirectly employed by them, or acting on Consultant’s behalf pursuant to this Agreement, as it is for the acts and omissions of persons directly employed by Consultant. Consultant’s obligation to pay its subconsultants is an independent obligation from the City’s obligation to make payments to the Consultant.

6. Assignment. This Agreement shall not be assigned without first obtaining the express written consent of the Director or after approval of the City Council. Neither party may assign this Agreement unless this Agreement is amended in accordance with its terms.

7. Conflicts of Interest. Consultant agrees to comply with conflict of interest laws in performing the work and services under this Agreement. Consultant covenants (on behalf of Consultant and Consultant’s employees, agents, representatives, and subcontractors) that there is no direct or indirect interest, financial or otherwise, which would conflict in any manner or degree with the performance of services required under this Agreement. Consultant acknowledges and agrees to comply with applicable provisions of conflict of interest law and regulations, including the CA Political Reform Act, Sections 1090 and 87100 of the Government Code, and the City’s conflict of interest code. Consultant will immediately advise City if Consultant learns of a conflicting financial interest of Consultant during the term of this Agreement.

8. City Property. The work, or any portion, of Consultant in performing this Agreement shall become the property of City. The Consultant may be permitted to retain copies of such work for information and reference in connection only with the provision of services for the City. All materials and work product, whether finished or unfinished, shall be delivered to City upon completion of contract services or termination of this Agreement for any reason.

Consultant acknowledges and agrees that the work product shall be considered a work made for hire within the meaning of the patent and copyright laws of the United States; and Consultant agrees that all copyrights which arise from creation of project-related documents and materials pursuant to this Agreement shall be vested in the City and Consultant waives and relinquishes all claims to copyright or other intellectual property rights in favor of City. Any work product related to this Agreement shall be confidential, not to be used by the Consultant on other projects or

12.8 City of Santa Cruz Professional Services Agreement for Interim Housing Development and Operation July 2024 (Form Rev.01/24 ) Page 6
disclosed to any third party, except by agreement in writing by the City, or except as otherwise provided herein.

Consultant’s final deliverables shall comply with Section 508 (29 U.S.C. Section 794d) accessibility requirements, as applicable.

9. Intellectual Property and Indemnity. Consultant represents to City that, to the best of Consultant’s knowledge, any Intellectual Property (including but not limited to: patent, patent application, trade secret, copyright and any applications or right to apply for registration, computer software programs or applications, tangible or intangible proprietary information, or any other intellectual property right) in connection with any services and/or products related to this Agreement does not violate or infringe upon any Intellectual Property rights of any other person or entity.

To the fullest extent permitted by law, Consultant agrees to indemnify, defend, and hold harmless City, its officials, officers, employees, and agents, from any and all claims, demands, actions, liabilities, damages, or expenses (including reasonable attorneys’ fees and costs) arising out of a claim of infringement, actual or alleged, direct or contributory, of any Intellectual Property rights in any way related to Consultant’s performance under this Agreement or to the City’s authorized intended or actual use of Consultant’s product or service under this Agreement. This provision shall survive termination or expiration of this Agreement.

If any product or service becomes, or in the Consultant’s opinion is likely to become, the subject of a claim of infringement, the Consultant shall, at its sole expense: (i) provide the City the right to continue using the product or service; or (ii) replace or modify the product or service so that it becomes non-infringing; or (iii) if none of the foregoing alternatives are possible even after Consultant’s commercially reasonable efforts, in addition to other available legal remedies, City will have the right to return the product or service and receive a full or partial refund of an amount equal to the value of the returned product or service, less the unpaid portion of the purchase price and any other amounts, which may be due to the Consultant. City shall have the right to retrieve its data and proprietary information at no charge prior to any return of the product or termination of service.

10. Confidentiality.
a. Consultant shall not acquire any ownership interest in data and information (“City Data”) received by Consultant from City, which shall remain the property of the City. Certain information may be considered confidential (“Confidential Information”). Confidential Information shall mean all information or proprietary materials (in every form and media) not generally known to the public and which has been or is hereafter disclosed or made available directly or indirectly to Consultant through any means of communication, either verbally or in writing even if it has not been designated in writing as “Confidential” to Consultant in connection with this Agreement. Unless otherwise required by law, Consultant shall not, without City’s written permission, use or disclose City Data and/or Confidential Information other than in the performance of the obligations under this Agreement. As between Consultant and City, all City Confidential Information shall remain the property of the City. Consultant shall not acquire ownership interest in the City’s Confidential Information.
b. Consultant shall be responsible for ensuring and maintaining the security and confidentiality of City Data and Confidential Information, protect against any anticipated threats or hazards to the security or integrity of City Data and Confidential Information, protect against unauthorized access to or use of City Data and Confidential Information that could result in substantial harm or inconvenience to City or any end users; and ensure the proper return and/or disposal of City Data and Confidential Information upon termination of this Agreement with notice to the City.
c. Consultant shall take appropriate action to address any incident of unauthorized access to City Data and Confidential Information, including addressing and/or remedying the issue that resulted in such

12.9 City of Santa Cruz Professional Services Agreement for Interim Housing Development and Operation July 2024 (Form Rev.01/24 ) Page 7
unauthorized access, notifying City as soon as possible of any incident of unauthorized access to City Data and Confidential Information, or any other breach in Consultant’s security that materially affects City or end users; and be responsible for ensuring compliance by its officers, employees, agents, and subcontractors with the confidentiality provisions hereof. Should confidential and/or legally protected City Data be divulged to unauthorized third parties, Consultant shall comply with all applicable federal and state laws and regulations, including but not limited to California Civil Code sections 1798.29 and 1798.82 at Consultant’s sole expense. Consultant shall not charge City for any expenses associated with Consultant’s compliance with these obligations.
d. Consultant shall defend, indemnify and hold harmless City, its officials, officers, employees and agents against any claim, liability, loss, injury or damage (including attorneys’ fee and costs) arising out of, or in connection with, the unauthorized use, access, and/or disclosure of City Data and/or Confidential Information by Consultant and/or its agents, employees or subcontractors, excepting only loss, injury or damage caused by the sole negligence or willful misconduct of the City. This provision shall survive the termination or expiration of this Agreement.

11. Consultant's Records/Audits. Consultant shall maintain accurate accounting records and other written documentation pertaining to the costs incurred relating to this Agreement for examination and audit by the City, State, or federal government, as applicable, in compliance with Gov. Code §8546.7 for a contract in excess of $10,000, or in compliance with other applicable federal laws (e.g. 48 CFR 31) or regulations for a period of three (3) years from: the date of the final City payment for Consultant's services, or from the date of final disposition of real property or equipment acquired with federal funds, or date of the termination of this Agreement, whichever is later. If Consultant engages a subcontractor to perform work related to this Agreement with a cost of $10,000 or more over a 12-month period, such subcontract shall contain these same requirements. This provision shall survive the termination of this Agreement.

12. California Public Records Act. City is a public agency subject to the disclosure requirements of the California Public Records Act (“CPRA”). If Consultant’s proprietary information is contained in documents or information submitted to City, and Consultant claims that such information falls within one or more CPRA exemptions, Consultant must clearly mark such information “Confidential and Proprietary,” and identify the specific lines containing the information. In the event of a request for such information, City will make best efforts to provide notice to Consultant prior to such disclosure. If Consultant contends that any documents are exempt from the CPRA and wishes to prevent disclosure, it is required to obtain a protective order, injunctive relief, or other appropriate remedy from a court of law in Santa Cruz County before the City is required to respond to the CPRA request. If Consultant fails to obtain such remedy within the time the City is required to respond to the CPRA request, City may disclose the requested information without any liability. Consultant further agrees that it shall defend, indemnify and hold City harmless against any claim, action or litigation (including but not limited to all judgments, costs, and attorney’s fees) that may result from denial by City of a CPRA request for information arising from any representation, or any action (or inaction), by the Consultant.

13. Compliance with Laws. All activities of Consultant, its employees, subcontractors and/or agents will be carried out in compliance with all applicable federal, state, and local laws and regulations. Consultant further agrees to comply with the covenant of good faith and fair dealing and other provisions of Santa Cruz Municipal Ordinance chapter 3.09, or otherwise Consultant may be subject to penalties including being declared an irresponsible contractor.

14. Licensure. Consultant agrees that Consultant, its subcontractors and/or agents (if any) has/have complied with all applicable federal, state, and local licensing requirements and agrees to provide proof of a current City of Santa Cruz Business Tax Certificate if:
 Consultant, its subcontractor(s) and agent(s) or its business is/are located in the City of Santa Cruz;

12.10 City of Santa Cruz Professional Services Agreement for Interim Housing Development and Operation July 2024 (Form Rev.01/24 ) Page 8
 Will perform actual work in the City of Santa Cruz for 6 or more days annually; or  Will use company vehicles to deliver within the City of Santa Cruz for 6 or more days annually.

For additional information and licensing requirements, view the City’s Business Licenses and Permits webpage or call the Revenue and Taxation division at 831/420-5070.

15. Living Wage. Every contract for services to the City for $10,000 or more, is subject to City of Santa Cruz Living Wage Ordinance number 2000-25. If applicable, Consultant agrees to comply with the requirements of the Living Wage ordinance as provided in Santa Cruz Municipal Code Chapter 5.10.

16. Prevailing Wages for Public Work. To the extent that the work or services to be performed under this Agreement may be considered a “public work” (construction, alteration, demolition, or repair work) pursuant and subject to Labor Code section 1720 et seq., Consultant (and any subconsultant performing the work or services) shall conform to any and all prevailing wage requirements applicable to such work/and or services under this Agreement. Consultant (and any subconsultant) shall adhere to the prevailing wage determinations made by the Director of Industrial Relations (DIR) pursuant to California Labor Code Part 7, Chapter 1, Article 2, applicable to the work, if any. All workers employed in the execution of a public works contract (as such term is defined California Labor Code section 1720 et seq. and section 1782(d)(1)) must be paid not less than the specified prevailing wage rates for the type of work performed. (CA Labor Code sections 1720, 1774 and 1782.) To the extent applicable to the scope of work and services under this Agreement, Consultant agrees to be bound by the state prevailing wage requirements, including, but not limited to, the following:
a. If a worker is paid less than the applicable prevailing wage rate owed for a calendar day (or any portion thereof), Consultant shall pay the worker the difference between the prevailing wage rate and the amount actually paid for each calendar day (or portion thereof) for which the worker(s) was paid less than the prevailing wage rate, as specified in Labor Code section 1775; b. Consultant shall maintain and make available payroll and worker records in accordance with Labor Code sections 1776 and 1812;
c. If Consultant employs (and/or is legally required to employ) apprentices in performing the work and/or services under this Agreement, Consultant shall ensure compliance with Labor Code section 1777.5; d. Consultant is aware of the limitations imposed on overtime work by Labor Code sections 1810 et seq. and shall be responsible for any penalties levied in accordance with Labor Code section 1813 for failing to pay required overtime wages;
e. Consultant shall post a copy of the applicable wage rates at each jobsite at a location readily available to its workers.
f. Any failure of Consultant and/or its subconsultant to comply with the above requirements relating to a public work project shall constitute a breach of this Agreement that excuses the City’s performance of this Agreement at the City’s sole and absolute option and shall be at the sole risk of Consultant. Consultant on behalf of itself and any subconsultant, agree to indemnify, defend and hold harmless the City and its officials, officers, employees, and agents from and against any and all claims, liabilities, losses, costs, expenses, attorney’s fees, damages, expenses, fines, financial consequences, interest, and penalties, of any kind or nature, arising from or relating to any failure (or alleged failure) of the Consultant and any subconsultant to pay prevailing wages or to otherwise comply with the requirements of prevailing wage law relating to a public work.
g. Consultant acknowledges that it and/or any subconsultant may not engage in the performance of any contract for public work unless currently registered with the DIR and qualified to perform public work

12.11 City of Santa Cruz Professional Services Agreement for Interim Housing Development and Operation July 2024 (Form Rev.01/24 ) Page 9
pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].

17. Storm Water Requirements. To the extent applicable to the Scope of Work under this Agreement, Consultant, Consultant’s employees, subcontractors, and agents are required to abide by the applicable City of Santa Cruz Storm Water Best Management Practices (BMPs) for the duration of the work. The City’s mandatory Storm Water BMPs, which are listed according to the type of work, operations, or business, are located on the City website at: https://www.cityofsantacruz.com/government/city-departments/public-works/stormwater/bestmanagement-practices

18. Dispute Resolution. The Parties agree to attempt in good faith to resolve through negotiation any dispute, claim or controversy arising out of or relating to this Agreement. Either party may initiate negotiations by providing written notice in letter form to the other party, setting forth the subject of the dispute and the relief requested.

Promptly upon such notification, the Parties shall meet at a mutually agreeable time and place in order to exchange relevant information and perspective, and to attempt to resolve the dispute. In the event that no resolution is achieved, and if, but only if, the parties mutually agree, then prior to pursuing formal legal action, the parties shall make a good faith effort to resolve the dispute by non-binding mediation or negotiations between representatives with decision-making power, who, to the extent possible, shall not have had substantive involvement in the matters of the dispute. To the extent that the dispute involves or relates to a public works project, the Parties agree to attempt to resolve the dispute by complying with the claims process as set forth in Public Contract Code sections 9204(e), 20104-20104.6, but without waiving the requirements of the California Tort Claims Act, Gov’t Code section 800 et seq. unless otherwise agreed to by the Parties.

19. Force Majeure. Neither party hereto shall be considered in default in the performance of its obligation hereunder to the extent that the performance of any such obligation is prevented or delayed by an act of God, natural disaster, pandemic, acts of terrorism, war, a strike, lockout or other labor difficulty, or other peril, which is beyond the reasonable control of the affected party and without the negligence of the respective Parties. Each party hereto shall give notice promptly to the other of the nature and extent of any Force Majeure claimed to delay, hinder or prevent performance of the services under this Agreement. Each Party will, however, make all reasonable efforts to remove or eliminate such a cause of delay or default and will, upon the cessation of the cause, diligently pursue performance of its obligations in this Agreement. In the event either party is prevented or delayed in the performance of its respective obligation by reason of such Force Majeure, the only remedy is that there may be an equitable adjustment of the schedule based on City’s sole discretion.

20. Complete Agreement. This Agreement, along with any attachments, is the full and complete integration of the Parties’ agreement with respect to the matters addressed herein, and that this Agreement supersedes any previous written or oral agreements between the Parties with respect to the matters addressed herein. Unless otherwise stated, to the extent there is any conflict between this Agreement and any other agreement (written or oral), the terms of this Agreement shall control.

21. Severability. The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the other provisions unenforceable, invalid or illegal.

22. Waiver. Waiver by any party of any portion of this Agreement shall not constitute a waiver of the same or any other portion hereof.

23. Governing Law. This Agreement shall be governed by and interpreted in accordance with California law.

12.12 City of Santa Cruz Professional Services Agreement for Interim Housing Development and Operation July 2024 (Form Rev.01/24 ) Page 10

24. Contract Interpretation. Each party acknowledges that it has reviewed this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement.

25. MacBride Principles/Peace Charter. City of Santa Cruz Resolution NS-19,378 (7/24/90) encourages all companies doing business in Northern Ireland to abide by the MacBride Principles and Peace Charter.

26. Notices. If either party shall desire or is required to give notice to the other such notice shall be given in writing, via email, and concurrently delivered by: (a) personal delivery, in which case notice is effective upon delivery; (b) overnight courier (i.e., Federal Express) with charges prepaid or charged to the sender’s account, in which case notice is effective when delivered; (c) priority U.S. Mail, in which case notice shall be deemed delivered on the second business day after the deposit thereof with the U.S. Postal Service. Notices shall be addressed to recipient as follows:

To CITY:

City Manager’s Office
Larry Imwalle
809 Center St. Rm 10
Santa Cruz, Ca 95060
[email protected]
(831) 420-5405
To CONSULTANT:

Housing Matters
Phil Kramer
115 Coral St.

Santa Cruz, Ca 95060
(831) 458-6020
Changes to the above information shall be given to the other party in writing ten (10) business days before the change is effective.

27. Counterparts. The Parties may execute this Agreement in two or more counterparts, which shall, in the aggregate, be deemed an original but all of which, together, shall constitute one and the same instrument. A scanned, electronic, facsimile or other copy of a party’s signature shall be accepted and valid as an original.

28. Warranty of Authority. The signatories to this Agreement warrant and represent that each is authorized to execute this Agreement and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this Agreement. [SIGNATURES ON FOLLOWING PAGE]

12.13 City of Santa Cruz Professional Services Agreement for Interim Housing Development and Operation July 2024 (Form Rev.01/24 ) Page 11
Approved As To Form:

By: ______________________________ Date: __________________ Office of the City Attorney,

CITY OF SANTA CRUZ
By: ______________________________ Date: __________________ Matt Huffaker
City Manager

CONSULTANT
By: ______________________________ Date: __________________ Printed: ___________________________ Title: __________________ By: ______________________________ Date: __________________ Printed: ___________________________ Title: __________________ Signature Requirements for a Corporation – 2 officer signatures required (one from each group, unless person signing holds officer positions in both Group 1 and 2):

Group 1: Chief Executive Officer, Chairman of the Board, President, or Vice President Group 2: Secretary, Assistant Secretary, Chief Financial Officer, Treasurer, Assistant Treasurer

12.14 City of Santa Cruz Professional Services Agreement for Interim Housing Development and Operation July 2024 (Form Rev.01/24 ) Page 12
EXHIBIT A: SCOPE OF WORK
The City of Santa Cruz (CITY) is entering into a contract with Housing Matters (AFC) A California Corporation (CONTRACTOR), to conduct the outreach, interim housing development and operations, and permanent housing supportive services as described in the scope of work described herein, in order to accomplish the objectives and outcomes of the Encampment Resolution Fund grant awarded to the City of Santa Cruz by the State of California.

Task 1: Outreach & Engagement
 Develop an outreach plan for engaging with persons experiencing homelessness in the Harvey West neighborhood and Coral St. area.
 Conduct outreach to persons experiencing homelessness, and make referrals to shelter, interim housing, permanent housing, and other needed services.
 Facilitate connections to Housing Connectors to work with program participants after they are enrolled in shelter programs, interim housing, or permanent housing.

Task 2: Interim Housing Development
 Develop new interim housing of between 15-20 units on the Housing Matters Coral St. campus, in accordance with applicable zoning and building requirements.  Implement a procurement process, and procure 15-20 modular units (sleeping cabins) and related interim housing program infrastructure (e.g. bathrooms, shower, hygiene facilities), in consultation with the City of Santa Cruz.
 Shelter layout that meets all applicable government zoning and building requirements Task 3: Interim Housing Operation and Management
 Provide ongoing operation and management of interim housing program, including:
 Ensure the interim housing program operates on a 24 hours/day, 7 days/week basis;  Hire, maintain, and supervise appropriate levels of staffing to ensure safe and effective operation of the housing program
 Ensure staff is trained on Housing First, Trauma Informed Care, and Harm Reduction principles: and
 Utilize HMIS for data collection and reporting, as well as participant and program assessment and evaluation;
 Provide all program participants with access to other campus facilities including, meals, showers, restrooms, mail service, and charging stations.  Provide supportive services for program participants, including:
 Coordinating with service providers from the County, non-profits, and other organizations to facilitate connections to services provided by those entities;  Ensure that all participants with physical limitations receive the personal assistance needed to support accessibility to services;
 Ensure that all shelter participants are able to safely access and use all campus amenities  Ensure secure storage is available to all participants so that they may store valuables or specific items that are not allowed in community spaces within shelter sites; and  Maintain and update interim housing program policies and procedures, as appropriate including:
 Participant behavioral expectations policy;
 Safety procedures;
 Parking policies;
 Pet policy;
 Public visitation policy;
 Neighborhood interface procedures;
 Shower policies;

12.15 City of Santa Cruz Professional Services Agreement for Interim Housing Development and Operation July 2024 (Form Rev.01/24 ) Page 13
 Written plan for responding to first aid and health emergencies including basic first aid supplies accessible on site;
 Written evacuation plan for emergencies, i.e. Fire, Earthquake and evacuation plan; Task 4: Permanent Housing Support
 Connect persons experiencing homelessness in the encampment, including those who have moved from the encampment into emergency shelter and interim housing, to permanent housing resources through coordinated entry and other pathways.

Task 5: Housing Connection and Housing Navigation
 Hire, train, and supervise two full-time equivalent Housing Connectors who will be dedicated to this grant funded program.
 Housing Connectors will provide housing problem solving, conduct Coordinated Entry assessments, and provide flexible support to facilitate connection to permanent housing for program participants.  Leverage CalAIM funding to support these positions.

Task 6: Data Collection and Reporting
 Utilize Santa Cruz County Homelessness Management Information System (HMIS) for collecting participant demographic data, as well as all intake assessments, and ongoing case documentation, and exit data.
 Provide periodic reports of aggregate data to demonstrate program performance Expected Number of People Served
 Number of people residing in the prioritized encampment that will be served during this grant period: 55  Number of people residing in the prioritized encampment that are projected to transition into interim housing during the grant period: 40
 Number of people that are projected to transition into permanent housing over the grant period: 30 Expected Outcomes
 Of the 55 encampment residents served over the course of the ERF grant period, 40 (73%) will secure interim housing.
 Of the 55 encampment residents served over the course of the ERF grant period, 30 (55%) will secure permanent housing.
 Of the 55 encampment residents served over the course of the ERF grant period, 50 will receive housing connector and housing navigation services (91%).

Consultant’s Employee Conduct
Consultant will agree to remove any employee whose conduct is improper, inappropriate, or offensive as determined by the City. A removed employee(s) is not to work on City premises without the written consent of the City. The Consultant will remove any employee from working in, or delivering to, City facilities who is convicted of a felony during their employment.

12.16 City of Santa Cruz Professional Services Agreement for Interim Housing Development and Operation July 2024 (Form Rev.01/24 ) Page 14
EXHIBIT B: FEE SCHEDULE
The total amount payable under this agreement shall not exceed $3,882,184. CONTRACTOR shall provide monthly invoices, using a template provided by the CITY, to document services costs based on the budget detailed in this scope of work and the attached Exhibit B – Fee Schedule/Budget document Contractor will invoice the City on or before the 15th of each month for actual expenses incurred based upon the agreed upon budget included in this contract. Monthly invoices should include the following information and costs:
 Personnel costs with staff levels/hours for the invoicing month  Operational and supply costs with list of supplies purchased to support the Program during the invoicing month
PERSONNEL Category Monthly FTE Months 2 year total
Housing Matters Connectors Street Outreach 6,026.75 2.00 24 $173,570.40 Program Manager Street Outreach 8,589.75 1.00 24 $206,154.00 Housing Matters Case Manager Interim Sheltering 6,026.75 1.00 24 $144,642.00 Housing Matters Housing Navigators Interim Sheltering 6,026.75 2.00 24 $289,284.00 Housing Matters Direct Service Coordinators Interim Sheltering 4,546.50 4.20 24 $458,287.20 Housing Matters Custodial Workers Interim Sheltering 4,546.50 0.50 12 $27,279.00 Housing Matters Kitchen Workers Interim Sheltering 4,546.50 0.50 12 $27,279.00 Housing Matters Mental Health Specialist Interim Sheltering 6,978.33 1.00 24 $167,480.00 Housing Matters Substance Abuse Specialist Interim Sheltering 6,026.75 1.00 24 $144,642.00 Subtotal Personnel 13.20 $1,638,617.60
OPERATING Units Cost
Incentives Street Outreach 1 10,000.00 2 20,000.00
New non-congregate modular units Interim Sheltering 20 84,377.90 1,687,558.00 Operating costs for 20 non-congregate units Interim Sheltering 1 130,000.00 130,000.00 Materials and supplies for 20 non-congregate units Interim Sheltering 1 33,000.00 33,000.00 Laundry vouchers Street Outreach 30 50.00 24 36,000.00
Improve privacy for existing HM dormitory units Interim Sheltering 1 15,000.00 15,000.00 Flex funds for HM connectors (ERF) Permanent Housing Support 20 5,000.00 100,000.00 Office lease 1 2,500.00 12 30,000.00
192,008.78
Subtotal Operating 2,243,566.78
TOTAL $3,882,184.38
Administration, Finance and accounting, budget tracking, participant assistance costs, payroll, office support,grant tracking and reporting, HR

12.17 City of Santa Cruz Professional Services Agreement for Interim Housing Development and Operation July 2024 (Form Rev.01/24 ) Page 15
EXHIBIT C: WORK SCHEDULE
Consultant shall provide interim housing development, management and operations, and housing connection and housing navigation as described in Exhibit A (Scope of Work), from September 15, 2024 through June 30, 2026.

12.18 City of Santa Cruz Professional Services Agreement for Interim Housing Development and Operation July 2024 (Form Rev.01/24 ) Page 16
EXHIBIT D: INSURANCE REQUIREMENTS
Consultant shall procure and maintain insurance against claims for injuries to persons or damages to property and otherwise which may arise from or in connection with the performance of the work under this Agreement and the results of that work by Consultant, its agents, representatives, employees, or subcontractors.

A. CERTIFICATE REQUIREMENTS
The City will be issued a Certificate of Insurance (a Memorandum of Understanding will not be accepted) with the following minimum requirements:
 Certificate(s) will show current policy number(s) and effective dates,  Coverage and policy limits will meet, or exceed, requirements below,  The Certificate Holder will be City of Santa Cruz, Risk Management, 1200 Pacific Ave., Suite 290, Santa Cruz, CA 95060,
 Certificate will be signed by an authorized representative,  An endorsement, if required below, will be provided to show the City, its officers, officials, employees, and volunteers as additional insureds, and
 Coverages must be maintained during the term of the Agreement with the City, unless a longer duration is required as specified below.

B. MINIMUM SCOPE AND LIMITS OF INSURANCE
Consultant acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. If Consultant maintains broader insurance coverage and/or higher limits than the minimums shown below, the City of Santa Cruz requires and shall be entitled to the broader insurance coverage and/or higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Santa Cruz.

Coverage will be at least as broad as:
 COMMERCIAL GENERAL LIABILITY (CGL): $5,000,000 PER OCCURRENCE; $5,000,000 AGGREGATE Proof of coverage for $5 Million per occurrence and $5 Million in the aggregate including products and completed operations, property damage, bodily injury, personal and advertising injury will be provided on Insurance Services Office (ISO) Form CG 00 01 covering CGL.  SEXUAL ABUSE OR MOLESTATION (SAM) LIABILITY: If the work will include contact with minors, and the CGL policy referenced above is not endorsed to include affirmative coverage for sexual abuse or molestation, Contractor shall obtain and maintain a policy covering Sexual Abuse and Molestation with a limit no less than $1,000,000 per occurrence or claim.  PROFESSIONAL LIABILITY (ERRORS AND OMISSIONS): $1,000,000 PER OCCURRENCE OR CLAIM, $2,000,000 AGGREGATE.

Consultant will maintain insurance appropriate to Consultant’s profession; with limit no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after date of completion of the services under this Agreement. If coverage is canceled or non-renewed and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date or start of work date, Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of the contract of work.

12.19 City of Santa Cruz Professional Services Agreement for Interim Housing Development and Operation July 2024 (Form Rev.01/24 ) Page 17
 AUTOMOBILE LIABILITY:

Proof of coverage for $1,000,000 provided on ISO Form Number CA 00 01 covering any auto (Code 1), or if Consultant has no owned autos, hired, (Code 8) and non-owned autos (Code 9), per accident for bodily injury and property damage.
 WORKERS’ COMPENSATION AS REQUIRED BY THE STATE OF CALIFORNIA, WITH STATUTORY LIMITS, AND EMPLOYER’S LIABILITY INSURANCE: $1,000,000 per accident for bodily injury or disease.

The Worker’s Compensation policy must be endorsed with a waiver of subrogation in favor of the City for all work performed by the Consultant and its employees. (Not required if Consultant provides written verification it has no employees) - If Consultant has no employees, Consultant shall complete and sign a Workers’ Compensation Exemption Declaration and Release of Liability.

C. OTHER INSURANCE PROVISIONS
The insurance policies are to comply with the following provisions:
 ADDITIONAL INSURED STATUS
The City, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of Consultant including materials, parts, or equipment furnished in connection with such work or operations, products and completed operations. General liability coverage will be provided in the form of an endorsement to Consultant’s insurance at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 (if a later edition is used).
o PRIMARY COVERAGE
For any claims related to this Agreement, Consultant’s and all subcontractor’s insurance coverage will be primary and non-contributory as respects the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents, or volunteers will be excess of Consultant’s and all subcontractor’s insurance and will not contribute with it.
 NOTICE OF CANCELLATION
Each insurance policy required above shall state that the coverage shall not be canceled, except with notice to the City.
 WAIVER OF SUBROGATION
Consultant hereby grants to the City a waiver of any right to subrogation, except as otherwise not applicable, which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss, including attorney’s fees under such insurance. Consultant agrees to obtain any endorsement that may be necessary to effectuate this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.  EXCESS LIABILITY/UMBRELLA INSURANCE POLICIES
Consultant may use excess liability/umbrella policies to meet the required liability limits on the condition that they provide all of the insurance coverages required herein, including, but not limited to, primary and non-contributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements. The excess liability/umbrella insurance policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying CGL insurance. No insurance policies maintained by the additional insureds, whether primary or excess, and

12.20 City of Santa Cruz Professional Services Agreement for Interim Housing Development and Operation July 2024 (Form Rev.01/24 ) Page 18
which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Consultant’s primary and excess liability policies are exhausted.  SELF-INSURED RETENTIONS (SIR)
Self-insured retentions must be declared to and approved by the City. City may require Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related expenses.

The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.
 ACCEPTABILITY OF INSURERS
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A: VII, unless otherwise acceptable to the City.
 CLAIMS MADE POLICIES
If any of the required policies provide coverage on a claims-made basis:

1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained, and evidence of insurance must be provided, for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work.  VERIFICATION OF COVERAGE
Consultant will furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy (and CPL, automobile and any Excess Liability/Umbrella policies, as applicable) listing all policy endorsements to be approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning will not waive the Consultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

D. SUBCONTRACTORS
Consultant shall include their subcontractor(s) as additional insured(s) under the policies or shall furnish separate certificates and endorsements for each contractor and subcontractor. Consultant shall require and verify that all contractors and subcontractors maintain insurance meeting all the requirements stated herein, and Consultant shall ensure that City, its officers, officials, employees, agents, and volunteers are named as additional insureds on insurance required from its contractor(s) and subcontractor(s).

E. SPECIAL RISKS/CIRCUMSTANCES
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances and provide notice to Consultant.

12.21 April 18, 2024
City of Santa Cruz
Attn: Larry Imwalle
809 Center Street
Santa Cruz, CA 95060
RE: ERF-3-R Award Announcement – City of Santa Cruz
Award Amount: $4,032,184.38
Dear Larry Imwalle:

The Business, Consumer Services and Housing Agency’s (BCSH) California Interagency Council on Homelessness (Cal ICH) is pleased to announce that the City of Santa Cruz has been awarded an Encampment Resolution Funding Round 3 (ERF-3-R) grant in the amount of $4,032,184.38. This letter constitutes notice of the award of ERF-3-R funds. Please note that this letter does not constitute the formation of a contract between the State and City of Santa Cruz.

The City of Santa Cruz will receive its full disbursement of funds after the Standard Agreement is fully executed. Please be advised that this award is subject to the terms and conditions of the Standard Agreement.

Due to the imminent transition of all Cal ICH grant programs to the Department of Housing and Community Development (HCD) and the inability of the State Controller’s Office to issue payments in June, you will not receive your Standard Agreement for this award until July. Please note that your jurisdiction may begin expending eligible costs under your approved ERF project as of the date of this award letter. Eligible costs may be reimbursed once a Standard Agreement is executed between the City of Santa Cruz and the State and you receive your full award. The City of Santa Cruz will not acquire any legal or equitable rights to the ERF-3-R award until a Standard Agreement is executed.

You may reference the ERF-3-R Notice of Intent to Award on the Cal ICH website.

BUSINESS, CONSUMER

SERVICES AND

HOUSING AGENCY
801 Capitol Mall
Suite 601
Sacramento, CA 95814
(916) 651-2820
bcsh.ca.gov/calich
Gavin Newsom,
Governor
Tomiquia Moss,
Secretary

12.22 2
Congratulations on your successful application. For further information or if you have any questions, please contact me at [email protected] or [email protected]. Sincerely,
Jeannie McKendry
Jeannie McKendry
Grants Development Section Chief, Cal ICH

12.23 City Council

AGENDA REPORT
DATE: 08/21/2024
AGENDA OF: 09/10/2024
DEPARTMENT: City Manager
SUBJECT: Santa Cruz County Civil Grand Jury Response (CM) RECOMMENDATION: Motion to authorize the Mayor to submit responses to the Santa Cruz Civil Grand Jury on behalf of the Santa Cruz City Council for the (1) Honoring Commitments to the Public, (2) Housing for Whom, and (3) Preventing Rape and Domestic Violence reports.

BACKGROUND: The Grand Jury issued three reports which require responses from the Santa Cruz City Council. These included:

1. Honoring Commitments to the Public—Review of 2020-21 Grand Jury Report Responses Response due date: September 16, 2024;

2. Housing For Whom? An Investigation of Inclusionary Housing in the City of Santa Cruz Response due date: September 19, 2024; and

3. Preventing Rape and Domestic Violence—Where’s the Priority? Response due date: September 25, 2024.

DISCUSSION: Following the approach of previous Councils, the Council is being requested to authorize the Mayor to respond, on behalf of the Council, to the published Civil Grand Jury reports that required responses. After gathering feedback from various City Departments, staff has prepared responses for Council’s review. Upon approval, responses will be submitted to the Civil Grand Jury by September 16, 2024.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

Under Pub. Resources Code, § 21065, the proposed Council action is not a “project” under CEQA because no direct or indirect physical change to the environment is anticipated, nor does the proposed Council action represent the type of “activity” described in subdivisions (a) through (c) of Section 21065.

HEALTH IN ALL POLICIES (HiAP): The City’s prioritization of the subject areas addressed by the Grand Jury reports is supportive of many current Collective of Results and Evidencebased Investments program goals pertaining to health and wellness, economic security and mobility, thriving families, community connectedness, healthy environments, a safe and just community, and stable, affordable housing and shelter. While there is little nexus with sustainability, the City activities to address the Grant Jury’s subject areas support two of the

13.1 three pillars of HiAP, equity and public health, as well as related community well-being outcome metrics adopted as part of the HiAP initiative.

FISCAL IMPACT: None.

Prepared By:

Gina Liebig
Principal Management
Analyst
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. HONORING COMMITMENTS TO THE PUBLIC.DOCX

2. HOUSING FOR WHOM.DOCX

3. PREVENTING RAPE AND DOMESTIC VIOLENCE.DOCX

13.2 Honoring Commitments to the Public Published on June 17, 2024 Page 1 of 5 The 2023–2024 Santa Cruz County Civil Grand Jury
Requires the
Santa Cruz City Council
to Respond by September 16, 2024
to the Findings and Recommendations listed below
which were assigned to them in the report titled
Honoring Commitments to the Public
Review of 2020-21 Grand Jury Report Responses
Responses are required from elected officials, elected agency or department heads, and elected boards, councils, and committees which are investigated by the Grand Jury. The California Penal Code (PC) §933(c) requires you to respond as specified below and to keep your response on file.

Your response will be considered compliant under PC §933.05 if it contains an appropriate comment on all findings and recommendations which were assigned to you in this report.

Please follow the instructions below when preparing your response.

13.3 Required Response from the Santa Cruz City Council Honoring Commitments to the Public Due by September 16, 2024 Page 2 of 5 Instructions for Respondents
Your assigned Findings and Recommendations are listed on the following pages with check boxes and an expandable space for summaries, timeframes, and explanations.

Please follow these instructions, which paraphrase PC §933.05:

1. For the Findings, mark one of the following responses with an “X” and provide the required additional information:
a. AGREE with the Finding, or
b. PARTIALLY DISAGREE with the Finding – specify the portion of the Finding that is disputed and include an explanation of the reasons why, or c. DISAGREE with the Finding – provide an explanation of the reasons why.

2. For the Recommendations, mark one of the following actions with an “X” and provide the required additional information:
a. HAS BEEN IMPLEMENTED – provide a summary of the action taken, or b. HAS NOT YET BEEN IMPLEMENTED BUT WILL BE IN THE FUTURE – provide a timeframe or expected date for completion, or c. REQUIRES FURTHER ANALYSIS – provide an explanation, scope, and parameters of an analysis to be completed within six months, or d. WILL NOT BE IMPLEMENTED – provide an explanation of why it is not warranted or not reasonable.

3. Please confirm the date on which you approved the assigned responses:

We approved these responses in a regular public meeting as shown in our minutes dated ________________.

4. When your responses are complete, please email your completed Response Request as a PDF file attachment to both
The Honorable Katherine Hansen, Grand Jury Supervising Judge [email protected] and
The Santa Cruz County Grand Jury [email protected].

If you have questions about this request form, please contact the Grand Jury by calling 831-454-2099 or by sending an email to [email protected].

13.4 Required Response from the Santa Cruz City Council Honoring Commitments to the Public Due by September 16, 2024 Page 3 of 5 Findings
F6. With regard to the City Manager’s response to Recommendation R8, the City’s FY 2024 Annual Budget does not provide a detailed plan and accounting of how homeless funds have been used. The City’s response only partially fulfilled its commitment to make related budget figures available.
__ AGREE
__ PARTIALLY DISAGREE
_X_ DISAGREE
Response explanation (required for a response other than Agree):

The Annual Budget as presented by the City of Santa Cruz provides an overview of General Fund revenues and expenditures and Capital Investment Program for the City. The budget document provides information about total expenditures by department and is not intended to be a detailed expenditure plan for a specific program as recommended by the Grand Jury. An Annual Budget is a financial plan, policy document, operations guide and a communication device.

The specific request relates to funds received in December 2022 in the amount of $14M from a grant from the State of California, and $4.7M from the American Recovery Act. Both sources of funds were one-time in nature and utilized over two Fiscal Years, FY23 and FY24. A detailed accounting of those funds was presented to the City Council during the FY24 Budget Hearing’s and was attached to the City Council Report which is publicly available on the City’s website located here: FY24 Budget Hearings Homelessness Response. The report details the FY23 expenditures and the planned expenditures for FY24 on page 17 of the power point presentation.

The recently adopted FY25 budget provides an overview of the expenditures for homelessness response programs that occurred in FY24 and the budget for FY25.

These expenditures are contained in three City Departments: City Manager, Public Works and Police Department under the Activity Code 6105. While the expenditures are not broken out into expenses by detail, they are reported categorically as is consistent with all of the city program budgets and consistent with the Governmental Accounting Standards Board (GASB) accounting and financial reporting standards.

The FY25 budget is publicly available on the City’s web site.

13.5 Required Response from the Santa Cruz City Council Honoring Commitments to the Public Due by September 16, 2024 Page 4 of 5 Recommendations
R5. Within 90 days the City Manager should publish the figures that their initial response indicated were available for prior for years. (F6) __ HAS BEEN IMPLEMENTED – summarize what has been done
__
HAS NOT YET BEEN IMPLEMENTED BUT WILL BE IN THE FUTURE – summarize what will be done and the timeframe
__
REQUIRES FURTHER ANALYSIS – explain the scope and timeframe (not to exceed six months)
X__ WILL NOT BE IMPLEMENTED – explain why
Required response explanation, summary, and timeframe:

On May 23, 2023, during the budget presentation for the FY24 budget, staff provided a power point presentation which includes detailed expenditures for the $14M State of California Grant and the $4.7M ARPA funds on page 17 of the presentation. The FY24 expenditures for the homelessness response program are presented in three departments: City Manager’s Office, Public Works and the Police Department. This document is available on-line on the city’s website located here: FY24 Budget Hearings Homelessness Response.

The recently adopted Three Year Homelessness Response Strategic Plan (Plan) requires an annual update to the City Council on the progress made on the Plan. This update will be provided to the City Council in June of 2025. Included in this update will be a fiscal analysis of the past year’s activities.

13.6 Required Response from the Santa Cruz City Council Honoring Commitments to the Public Due by September 16, 2024 Page 5 of 5 R6. Within 90 days the City should publish the summary of expenditures as presented to the City Council in May 2023 that expand on the figures provided in the FY 2024 Annual Budget. (F6)
__ HAS BEEN IMPLEMENTED – summarize what has been done
__
HAS NOT YET BEEN IMPLEMENTED BUT WILL BE IN THE FUTURE – summarize what will be done and the timeframe
__
REQUIRES FURTHER ANALYSIS – explain the scope and timeframe (not to exceed six months)
_X_ WILL NOT BE IMPLEMENTED – explain why
Required response explanation, summary, and timeframe:

On May 23, 2023, during the budget presentation for the FY24 budget, staff provided a power point presentation which includes detailed expenditures for the $14M State of California Grant and the $4.7M ARPA funds on page 17 of the presentation located here: FY24 Budget Hearings Homelessness Response. The FY24 expenditures for the homelessness response program are presented in three departments: City Manager’s Office, Public Works and the Police Department. This document is available on-line on the city’s website.

The recently adopted Three Year Homeless Response Strategic Plan (Plan) requires an annual update to the City Council on the progress made on the Plan. This update will be provided to the City Council in June of 2025. Included in this update will be a fiscal analysis of the past year’s activities.

13.7 Housing For Whom? Published on June 21, 2024 Page 1 of 9 The 2023–2024 Santa Cruz County Civil Grand Jury
Requires the
Santa Cruz City Council
to Respond by September 19, 2024
to the Findings and Recommendations listed below
which were assigned to them in the report titled
Housing For Whom?
An Investigation of Inclusionary Housing
in the City of Santa Cruz
Responses are required from elected officials, elected agency or department heads, and elected boards, councils, and committees which are investigated by the Grand Jury. The California Penal Code (PC) §933(c) requires you to respond as specified below and to keep your response on file.

Your response will be considered compliant under PC §933.05 if it contains an appropriate comment on all findings and recommendations which were assigned to you in this report.

Please follow the instructions below when preparing your response.

13.8 Required Response from the Santa Cruz City Council Housing For Whom? Due by September 19, 2024 Page 2 of 9 Instructions for Respondents
Your assigned Findings and Recommendations are listed on the following pages with check boxes and an expandable space for summaries, timeframes, and explanations.

Please follow these instructions, which paraphrase PC §933.05:

3. Please confirm the date on which you approved the assigned responses:

We approved these responses in a regular public meeting as shown in our minutes dated ________________.

If you have questions about this request form, please contact the Grand Jury by calling 831-454-2099 or by sending an email to [email protected].

13.9 Required Response from the Santa Cruz City Council Housing For Whom? Due by September 19, 2024 Page 3 of 9 Findings
F1. The contradictory entries on the City’s website and in the City’s legal documents on whether Inclusionary Housing is restricted to Low, Very Low and Extremely Low-income levels or whether it includes the Moderateincome level is a major discrepancy with consequences about who is eligible for and who obtains Inclusionary Housing.
__ AGREE
__ PARTIALLY DISAGREE
_X_ DISAGREE
Response explanation (required for a response other than Agree):

The process for determining income eligibility depends on the governing resolution that was approved by the City Council at the specific point in time that the affordable housing agreement between the City and the Developer was executed. This does not change over time for units in a specific project, so a project approved in 2007 would have different requirements and governing resolutions than a project approved in 2024. On the City’s Measure O Resolutions and Ordinances web page, eight resolutions are posted that govern the calculation of income eligibility for Inclusionary Housing /Measure O units in the City of Santa Cruz. Measure O is a voter-approved initiative originally adopted in 1979 that requires developers of residential projects to provide a certain percentage of the total number of units as affordable to income eligible households. The City’s Inclusionary Ordinance (Municipal Code Chapter

24.16, Part One) codifies the requirements of Measure O. Each resolution was approved by Santa Cruz City Council at different times to establish the income, monthly housing cost guidelines, and asset limits for the inclusionary units throughout the City of Santa Cruz. Additionally, each project has specific requirements related to the affordability threshold depending on the project type. The applicable resolution for an available Inclusionary Unit is noted when a unit is available either under the “AVAILABLE MEASURE O UNITS FOR PURCHASE” or “AVAILABLE MEASURE O UNITS FOR RENT” lists respectively.

13.10 Required Response from the Santa Cruz City Council Housing For Whom? Due by September 19, 2024 Page 4 of 9 F2. The City has no data on whether Inclusionary Housing is occupied by income-verified local residents and local workers. Both groups are given preference for housing as required by Ordinance. Without data, neither the City nor the community can be assured that such housing is meeting its intended purpose.
__ AGREE
__ PARTIALLY DISAGREE
_X_ DISAGREE
Response explanation (required for a response other than Agree):

Generally, the intended purpose for inclusionary housing is to serve low-income households (with exceptions allowing moderate-income housing for some projects).

Local preferences are not required by Measure O; they were initially adopted in October 2006, and some projects are not subject to the preferences.

Our annual compliance monitoring verifies income eligibility of occupants of rental inclusionary housing. We also confirm eligibility of homebuyers when a for-sale unit is purchased. The Santa Cruz Housing Authority reviews the actual applications and confirms income eligibility for Measure O units, and the City reviews the Housing Authority’s determination and associated documentation. However, in 100 percent affordable projects, the City’s agreements generally allow the property manager to review and certify tenant applications, because those projects are subject to the requirements of multiple funding sources and then the property manager sends this reporting to the City for annual review and verification. In some cases, conditions placed on federal, or state funds may not be consistent with the City’s preferences.

However, at initial lease-up, where permitted, typically the developer establishes a lottery system with rankings based on the required preferences.

Staff has recently initiated a new compliance form for developers/property managers to sign prior to Temporary Certificate of Occupancy, when the units are getting ready to be leased up or sold, verifying that the developer or property manager is complying with the City’s local preference policy. In addition, the affordable housing agreements entered into between the City and the Developer at the time of building permit issuance require the Developer to comply with the City’s local preferences, and these agreements are recorded on title.

The City believes that the mechanisms in place effectively enforce the City’s preferences to the extent possible given existing agreements and state and federal laws, while avoiding excessive administrative burdens on property managers.

13.11 Required Response from the Santa Cruz City Council Housing For Whom? Due by September 19, 2024 Page 5 of 9 F3. The City has no data on the percentage of units in Inclusionary and 100% Affordable Housing projects that are rented to UCSC students. This leaves the City and the public unable to assess the impact of UCSC on the local affordable housing supply. Such data is important for the City’s ongoing negotiations with UCSC to build more on-campus housing. __ AGREE
_x_ PARTIALLY DISAGREE
__ DISAGREE
Response explanation (required for a response other than Agree):

The City does not currently track the percentage of UCSC students occupying Inclusionary Units or 100% affordable housing projects. The City does recommend that UCSC track where their students live. The impact of UCSC students on the availability of inclusionary units is likely fairly limited as the income eligibility requirements would disqualify UCSC students who are claimed as dependents by their parents.

At this time, the City is unaware of UCSC students renting inclusionary units. Most undergraduate students (nearly 90% of USCS students) are likely to be claimed as dependents. If the students are dependents, then the entire household’s income must be shown on the Measure O application and all household members must reside in the unit as their principal place of residence. This likely excludes most students from being deemed eligible for inclusionary housing. The City recommends that UCSC track where their students live, which would allow the City to determine if they are residing in inclusionary unit

13.12 Required Response from the Santa Cruz City Council Housing For Whom? Due by September 19, 2024 Page 6 of 9 Recommendations
R1. The Grand Jury recommends that the Santa Cruz City Council state exactly which HCD Income Levels are covered by the City’s Inclusionary Housing Ordinance and Resolutions, and make that information public by December 31, 2024. (F1)
_x_ HAS BEEN IMPLEMENTED – summarize what has been done __
HAS NOT YET BEEN IMPLEMENTED BUT WILL BE IN THE FUTURE – summarize what will be done and the timeframe
__
REQUIRES FURTHER ANALYSIS – explain the scope and timeframe (not to exceed six months)
__ WILL NOT BE IMPLEMENTED – explain why
Required response explanation, summary, and timeframe:

The HCD income is listed in each linked resolution on the City’s Measure O Rents and Incomes webpage. Please note that State HCD updates the income limits annually and these are the incomes that the City uses to determine the City’s Measure O calculations as specified by each resolution.

Additionally, the specific resolution for an available inclusionary unit is noted when a unit is available either under the “AVAILABLE MEASURE O UNITS FOR PURCHASE” or “AVAILABLE MEASURE O UNITS FOR RENT” lists respectively.

13.13 Required Response from the Santa Cruz City Council Housing For Whom? Due by September 19, 2024 Page 7 of 9 R2. The Grand Jury recommends that the Santa Cruz City Council develop an ongoing system to track, document and verify within 30 days of occupancy whether a unit is occupied by an income-verified local resident or local worker as required by the Ordinance, specifying which category the renter fulfills, and have such a system in place by January 31, 2025. (F2)
_x_ HAS BEEN IMPLEMENTED – summarize what has been done __
HAS NOT YET BEEN IMPLEMENTED BUT WILL BE IN THE FUTURE – summarize what will be done and the timeframe
__
REQUIRES FURTHER ANALYSIS – explain the scope and timeframe (not to exceed six months)
__ WILL NOT BE IMPLEMENTED – explain why
Required response explanation, summary, and timeframe:

The City local preference only applies to the following resolutions: NS-29,463, NS27,885, NS-27,629, and NS-27,383; the earliest resolution was adopted in October 2006. The City’s practice is generally not to reveal personally identifiable information for residents of inclusionary units and so does not provide preference information for a specific unit address that is rented or sold. Please refer to the City’s response to Finding #2 for more information on the City’s compliance monitoring.

13.14 Required Response from the Santa Cruz City Council Housing For Whom? Due by September 19, 2024 Page 8 of 9 R3. The Grand Jury recommends that the Santa Cruz City Council document the percentage of the City’s Inclusionary and 100% Affordable Housing units that are rented to UCSC students, making that data public by February 28, 2025 with annual updates. (F3)
__ HAS BEEN IMPLEMENTED – summarize what has been done
__
HAS NOT YET BEEN IMPLEMENTED BUT WILL BE IN THE FUTURE – summarize what will be done and the timeframe
__
REQUIRES FURTHER ANALYSIS – explain the scope and timeframe (not to exceed six months)
_x_ WILL NOT BE IMPLEMENTED – explain why
Required response explanation, summary, and timeframe:

As previously stated in the response for F3, at this time, the City is unaware of UCSC students renting inclusionary units. Most undergraduate students (nearly 90% of USCS students) are likely to be claimed as dependents. If the students are dependents, then the entire household’s income must be shown on the Measure O application and all household members must reside in the unit as their principal place of residence. This likely excludes most students from being deemed eligible for inclusionary housing. The City recommends that UCSC track where their students live, which would allow the City to determine if they are residing in inclusionary units.

13.15 Required Response from the Santa Cruz City Council Housing For Whom? Due by September 19, 2024 Page 9 of 9 R4. The Grand Jury recommends that the Santa Cruz City Council create an Inclusionary Housing public dashboard that covers the data called for in this report by February 28, 2025. (F1, F2, F3)
_x_ HAS BEEN IMPLEMENTED – summarize what has been done __
HAS NOT YET BEEN IMPLEMENTED BUT WILL BE IN THE FUTURE – summarize what will be done and the timeframe
__
REQUIRES FURTHER ANALYSIS – explain the scope and timeframe (not to exceed six months)
__ WILL NOT BE IMPLEMENTED – explain why
Required response explanation, summary, and timeframe:

The City does not want to stigmatize tenants of Inclusionary/Measure O units by publicly releasing their addresses. Specific units available for rent or sale are listed on the City’s Measure O website. The City currently curates an interactive map, which notes the inclusionary requirement for larger projects, but does not directly display which specific units are affordable. Please refer to the website link here:
https://www.choosesantacruz.com/resources/affordable-housing-projects-map

13.16 Preventing Rape and Domestic Violence Published on June 27, 2024 Page 1 of 31 The 2023–2024 Santa Cruz County Civil Grand Jury
Requires the
Santa Cruz City Council
to Respond by September 25, 2024
to the Findings and Recommendations listed below
which were assigned to them in the report titled
City Of Santa Cruz: Preventing Rape and Domestic
Violence
Where’s The Priority?
Responses are required from elected officials, elected agency or department heads, and elected boards, councils, and committees which are investigated by the Grand Jury. The California Penal Code (PC) §933(c) requires you to respond as specified below and to keep your response on file.

Your response will be considered compliant under PC §933.05 if it contains an appropriate comment on all findings and recommendations which were assigned to you in this report.

Please follow the instructions below when preparing your response.

13.17 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 2 of 31 Instructions for Respondents
Your assigned Findings and Recommendations are listed on the following pages with check boxes and an expandable space for summaries, timeframes, and explanations.

Please follow these instructions, which paraphrase PC §933.05:

3. Please confirm the date on which you approved the assigned responses:

We approved these responses in a regular public meeting as shown in our minutes dated ________________.

If you have questions about this request form, please contact the Grand Jury by calling 831-454-2099 or by sending an email to [email protected].

13.18 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 3 of 31 Findings
F1. Since 2016, the lack of comprehensive Annual Reports with detailed metrics on rape, including the tracking of stranger rape, leaves the community less informed, more vulnerable, and less safe. __ AGREE
__ PARTIALLY DISAGREE
_X_ DISAGREE
Response explanation (required for a response other than Agree):

The Santa Cruz City Council (“the Council) disagrees with the assertion that the community is less informed due to the Annual Report lacking detailed metrics. The Annual report includes both current and historical data on rape and domestic violence. While detailed metrics on rape are not mandated, the Annual Report is required by Ordinance No. 81-29, Section 5.(d), requires the Commission for Prevention of Violence Against Women (“the Commission”) to “…submit annually, and the City Council review and act upon a report documenting, in detail, City, community, and police efforts to carry out the purposes of this ordinance.” Over the years, the reports have included relevant data on rape and domestic violence, including the most recent Annual Report for 2023. The 2023 Report includes details from the FBI Uniform Crime Report (UCR) for rape as well as data from 2010-2023 on the following California Penal Code Sections relating to rape: 220 Attempted Rape; 261/262 Rape; 286 Sodomy; 387/288 Oral Copulation and 289 Penetration with a foreign object. Additionally, the 2023 report also includes domestic violence statistics from 2015 to 2023.

13.19 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 4 of 31 The Council disagrees with the Grand Jury’s claim that a lack of detailed metrics on rape leaves the community more vulnerable and less safe. The absence of specific metrics in the Annual Report, or its contents, does not correlate to increased vulnerability or decreased safety. In fact, the FBI Uniformed Crime Report shows a 26% reduction in rape from 2022 to 2023, along with a 34% decrease in Domestic Violence cases by from 2020 to 2021 and a decline of 14% between 2022 and 2023. The Commission voted in November 2023 to accept a revised reporting format for rape and domestic violence statistics to include all FBI UCR Data, and various California Penal Code Sections on rape and domestic violence. If the Commission chooses to reassess the metrics it requests from SCPD, including stranger rape data, the SCPD is prepared to provide the requested information. However, the Commission must decide what metrics it needs to review and how the Commission will utilize the information in relation to prevention and education. When the Commissioners request various information and try to compare it to UCR data and/or National Incident-Based Reporting System/California Incident-Based Reporting System (NIBRS/CIBRS) the information may not be consistent because the methodology for collecting the data sets are not the same, which causes confusion and leads to the perception of deception which is not accurate.

In 2024, the Commission has enhanced their outreach to the community by collaborating with other Community Based Organizations to raise awareness about prevention and available services. This includes co-sponsoring the “Stronger Together” Fun Run/5K Race with Monarch Services in September 2023 & 2024, participating in both the Dyke and Pride Parades, the 2024 March to End Homelessness and the “She is Beautiful” race. Additionally, the Commission partnered with Monarch Services by providing $6,000 to support their efforts to end domestic violence and provide assistance to victims of rape.

13.20 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 5 of 31 F2. By highlighting a generic national statistic on stranger rape, rather than assessing local metrics in the CPVAW 2023 Report, the City is minimizing stranger rape and misleading the public into a possible false sense of security.
__ AGREE
_X_ PARTIALLY DISAGREE
__ DISAGREE
Response explanation (required for a response other than Agree):

The CPVAW 2023 Annual Report includes, as approved by the Commission on November 1, 2023, data from the US Department of Justice, Federal Bureau of Investigations, Uniform Crime Report on Rape, which is data specific to the City of Santa Cruz. The Annual Report also includes specific data on 5 types of Sexual Assault violations committed in the City of Santa Cruz. It is correct that this data does not distinguish between a stranger and an acquaintance. While this type of distinction may be useful, there is no data supporting that this is misleading the public into a false sense of security. The data cited in the Annual Report is from a nationally recognized association; Rape, Abuse, Incest National Network (RAINN) and is consistent with previous data analysis as reported in the 2005-07 Annual Report.

The data shows that the City is safer in 2023 than in previous years. The Uniformed Crime Report shows a decrease in rape by 26% from 2022 to 2023, and a decrease in Domestic Violence cases by 34% from 2020 to 2021 and a decrease of 14% between 2022 and 2023.

If the Commission chooses to reconsider its previous decision on which metrics SCPD should provide to the Commission, including stranger rape, SCPD will provide that information. SCPD supports the collection of this information but would prefer the Commission decide on all the metrics they are interested in and show how it will be useful towards the prevention and education mission of CPVAW. SCPD feels both national statistics on stranger rape and local metrics are important to provide the public with a local view as well as a broader perspective.

13.21 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 6 of 31 F3. The lack of attention to long-time Commission programs such as the Safe Place Network and the Bar Coaster program leaves residents and visitors without important resources for their personal safety.
__ AGREE
__ PARTIALLY DISAGREE
_X_ DISAGREE
Response explanation (required for a response other than Agree):

The Commission believes in leveraging their funds to partner with community-based organizations who specialize in providing victims of domestic violence and rape with much needed financial support to continue their successful programs and services.

These organizations provide tangible resources that the Commission could not provide nor have the expertise to provide. In 2024, the Commission provided the following with sponsorships to support local non-profit organizations: $2,000 to Walnut Ave Women’s Center, a non-profit organization based in Santa Cruz that provides direct services to survivors of domestic violence including prevention and education and $6,000 to Monarch Services, another local non-profit that offers immediate crisis response to survivors of domestic violence, sexual assault and human trafficking.

The Commission has created new programs to promote personal safety. In 2023, the Commission partnered with the Santa Cruz City School district to provide high school students with an on-line course through Vector Solutions. This program offered targeted courses for grades 6-8 and 9-12, which reached approximately 2,000 students. This mandatory program enabled the school to extend its reach, empowering more students to make informed choices, resist peer pressure, and foster healthy relationships. Topics included: Dealing with Stress and Anxiety; Self-Harm Awareness and Resolving Disagreements. Additional content included Mental Health and Wellbeing, Healthy Relationships & Inclusion, Personal & Community Safety and Student Safety and Wellness.

The City is the only local agency to have a Victim Advocate on staff in the Police Department. This important resource keep victims informed of their rights in the legal system and makes referrals to local agencies. The Advocate works with victims to ensure they are treated with fairness and respect.

With regards to the Bar Coaster Program, the Commission agrees with continuing this program. As of July 1st, State Law requires all bars that do not provide food to provide drug testing kits to customers. The Commission supports this new law. In June of 2024, the Commission purchased an additional 500 drug testing coasters to distribute to bars located in the City of Santa Cruz.

13.22 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 7 of 31 The Commission had a program entitled Safe Place Network which is no longer active. The program began over 25 years ago by providing a window sticker to businesses stating they were a “Safe Place”; however, there was very little to no training provided for businesses and their staff. The program also lacked a comprehensive marketing and outreach plan to inform visitors and the community of its existence. There are no metrics or data to substantiate the claim that not having this program has left residents and visitors without important resources for their personal safety. However, the Commission could consider re-establishing the program if it chooses to do so in the future.

13.23 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 8 of 31 F4. The loss of the in-person self-defense program for boys and girls in Santa Cruz City Schools lessens students’ ability to prevent sexual assault and interpersonal violence, inconsistent with the mandate of Ordinance 81-29. __ AGREE
__ PARTIALLY DISAGREE
_X_ DISAGREE
Response explanation (required for a response other than Agree):

The Commission has offered self-defense classes either through City Schools and/or the Parks and Recreation Department. Over the years, participation in the Parks & Recreation program significantly declined, leading to the cancellation of classes.

In FY2023, the City Council approved a budget of $15,000 for self-defense classes to be administered by the Commission. In November of 2023, the Commission considered how best to use the funds at a regularly scheduled public meeting. The Commission considered two options: 1) Self Defense program through the City Parks & Recreation Department, or 2) A proposal by City Schools for an on-line course through a private contractor, Vector Solutions. The Commission chose the City Schools proposal.

This program offered targeted courses for grades 6-8 and 9-12, which reached approximately 2,000 students. This mandatory program enabled schools to extend their reach significantly, empowering more students to make informed choices, resist peer pressure, and foster healthy relationships. Topics included: Dealing with Stress and Anxiety; Self-Harm Awareness and Resolving Disagreements. Additional content included Mental Health and Well-being, Healthy Relationships & Inclusion, Personal & Community Safety and Student Safety and Wellness.

Vector Solutions is already being used in other school districts across the country to reduce violence against women. This valuable program will help prevent violence against women by providing students with the knowledge and skills they need to make healthy choices and build positive relationships.

In addition, the Commission authorized an additional $5,000 to enable one Commissioner to work with the Parks and Recreation department to offer a selfdefense course. Unfortunately, the program never came to fruition, and the funds were not spent.

In the FY25 Budget, the City Council approved re-authorization of $15,000 to continue offering these types of programs. The Commission will consider how to utilize those funds at their meeting on September 4, 2024.

13.24 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 9 of 31 F5. The City’s replacement of a dedicated 20-hour per week Commission staff position with rotating staff with minimal hours has resulted in a loss of visibility for the prevention of rape and domestic violence, a loss of community connections, a lack of programs, inadequate resource distribution and less public awareness.
__ AGREE
__ PARTIALLY DISAGREE
_X_ DISAGREE
Response explanation (required for a response other than Agree):

The part-time Events Coordinator position was eliminated in 2016/2017 and replaced with a more senior staff member to provide enhanced support to the Commission.

From 2017 to 2020, there were three staffing changes involving personnel from both the City Manager’s Office and the Police Department. The Commission also saw turnover among its members during this same period. Additionally, the COVID-19 pandemic severely limited the Commission’s ability to organize and participate in public events, as well as to support local non-profits and schools until 2022.

In 2023, as the community began to recover from the pandemic, the Commission resumed its participation in and organization of events.

As part of the Fiscal Year 2024, the City Council also approved funding for an Administrative Assistant III staff position that will dedicate half of their work week (20 hours per week) to supporting the Commission’s work. With the addition of this new position, the Commission will have more staff support than it has had for the last several years.

Notably, crime data indicates that the city is safer in 2023 than in previous years. The Uniformed Crime Report reveals a 26% decrease in rape incidents from 2022 to 2023, as well as a 34% drop in domestic violence cases from 2020 to 2021, and a further decline of 14% between 2022 and 2023.

13.25 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 10 of 31 F6. The City’s refusal to allow the Commission continued access to redacted police reports prevents the Commission from making recommendations for police training and evaluating community complaints as required by Ordinance.
__ AGREE
__ PARTIALLY DISAGREE
_X_ DISAGREE
Response explanation (required for a response other than Agree):

The Commission’s inability to review redacted police reports does not prevent the Commission from either making recommendations for police training or evaluating community complaints. The Commission does not require redacted police reports to fulfill its duty to hear citizen’s complaints about the City Police Department’s service to women who have been raped or battered (Ordinance #81-29 Section 5.(d) 4) or to make recommendations to the City Council regarding police training in the areas of rape and domestic violence (Ordinance #81- 29 Section 5.(d)5).

Police reports documenting instances of rape, sexual assault, or domestic violence are extremely sensitive. These reports provide intimate details about horrific crimes. Even if heavily redacted, it is likely the reports would still include details that would enable some to identify the victim or parties involved.

Given the extremely sensitive nature of these police reports, even when redacted, the City Attorney’s Office recommends not to provide redacted police reports to the Commission for the following reasons:
(1) Under the Brown Act, there is no legal basis for the Commission (or the Commission’s Police Subcommittee) to review the redacted police reports in a confidential or closed session (see Gov't Code § 54962).
(2) While the Commission is not permitted to meet in closed session, the Commission could hypothetically meet in open session to review the reports. However, review of police reports in open session would waive any applicable exemption under the Public Records Act (Gov’t Code § 7921.505), and the City would be required to release those redacted reports to any member of the public that requests them. In other words, if the Commission were to review the redacted police reports in open session, the City would be waiving the future confidentiality of those reports, without the consent of the individuals who are referenced in that report, and without input as to how that lack of confidentiality might impact their lives.
(3) The City is legally prohibited from releasing some reports, even in redacted form. For example, state law prohibits the release of a police report where a juvenile is the subject of the report (Wel & Inst Code § 827.95), or reports involving mandated reports of suspected child abuse and neglect (Penal Code § 11167.5). Various Constitutional provisions, such as The Victims’ Bill of Rights Act of 2008: Marsy’s Law, Section 28 of Article I of the California Constitution, or the right to privacy afforded by Section 1 of Article I of the California Constitution may also be considered when determining whether to release a police report. Even for reports that the City is not legally

13.26 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 11 of 31 prohibited from releasing, all of the referenced police reports are generally exempt from disclosure to the public pursuant to Government Code section 7923.600.

Based on the foregoing, including the advice of the City Attorney’s Office, the Commission voted to not require the SCPD provide redacted police reports to the Commission or the Commission’s Police Sub-Committee. However, the Commission did vote to include additional California Penal Code Sections, all Domestic Violence cases, and the FBI Uniform Crime Reporting data in the monthly data SCPD reports to the Commission.

The Commission still retains the ability to hear citizen complaints regarding the SCPD’s service to women who have been raped or battered. With improvements in technology and changes in state law and City Council requirements, citizen complaints go directly to the SCPD Professional Standards Unit, the Chief of Police, and the Independent Police Auditor. Any concerns about a Police Department employee’s conduct, actions or service are investigated by the Police Department’s Professional Standards Unit. All completed investigations are reviewed by the Independent Police Auditor to provide an independent review of the citizen complaint process. The Independent Police Auditor provides an annual report to the City Council in a public meeting on the level of thoroughness and objectivity of these investigations. The process to file a complaint can either be started in person at the Police Department, online on the SCPD website, or directly through the Independent Police Auditor.

The City also employs a Victim Advocate and is the only one in the county that does so. The Advocate provides information to victims about their rights and the criminal legal system and makes referrals to local agencies when appropriate. The Advocate works alongside SCPD personnel to ensure all victims of domestic violence and sexual assault are treated with fairness and respect. The Victim Advocate also provides training to officers and detectives to provide the highest level of professional service to the victims.

With regards to Police Training, the CPVAW Police Subcommittee received a presentation on November 1, 2023, from SCPD on their training standards. This provided an opportunity for the Commission to review and provide input on SCPD’s training program. The Police Subcommittee intends to conduct an annual review of the SCPD training program. All SCPD training records are kept up to date and in accordance with State law and Peace Officer Standards and Training (POST) standards.

13.27 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 12 of 31 F7. The SCPD’s decision to drop stranger rape alerts and case-by-case updates leaves the community unaware about this serious crime and therefore less safe.
__ AGREE
__ PARTIALLY DISAGREE
X__ DISAGREE
Response explanation (required for a response other than Agree):

SCPD has not made the decision to drop stranger rape alerts and case-by-case updates. If there was a stranger rape case and an alert to the community was appropriate, SCPD would not hesitate to make the community aware. SCPD is very active on social media, and transparently shares valuable information with the community.

13.28 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 13 of 31 F8. The inconsistencies the Grand Jury found in SCPD’s rape numbers means the public, the CPVAW and the City have no accurate metrics about reported rape, leaving the community ill-informed and Annual Commission Reports unreliable.
__ AGREE
__ PARTIALLY DISAGREE
_x_ DISAGREE
Response explanation (required for a response other than Agree):

City of Santa Cruz Ordinance No. 81-29 establishes specific responsibilities and cooperation between SCPD and CPVAW:
 Section 5(e): The Commission for the Prevention of Violence Against Women, in carrying out its duties shall have the authority to call upon members of the Police Department to present information which is not defined as confidential by State law.

The Santa Cruz Police Department shall offer full and open cooperation to the Commission.
 Section 6(b): The Police Department shall create a separate statistical report form to document and consolidate all domestic violence and women beating calls. This shall be compiled monthly.

The SCPD has adhered to these requirements, explicitly providing data as the Commission requested. Before the February 7, 2024, CPVAW meeting, where the SCPD’s statistical report (Appendix A – Figure 8 Full Table) was first presented, the SCPD had been producing a simplified statistical monthly report. This report included data on domestic violence calls, domestic violence cases, rape cases, sexual assaults, stalking cases, and intimate partner homicide cases.

At the November 1, 2023, CPVAW meeting, upon a specific commissioner’s request and approved by the Commission, sodomy and forcible sexual penetration with a foreign object were separated from the generalized rape column, and assault to commit rape was added. In the following two meetings (February 1, 2024, and May 1, 2024), SCPD complied and continued to make improvements to provide an accurate and comprehensive statistical report.

Improvements included updating all the monthly summary values to reflect the addition of any cold cases when they occurred, not when reported, and footnotes were added to provide clarifying language. This was to try and explain why the old numbers had changed from previous reports.

Discrepancies in Appendix A – Figure 8 Full Table were due to the removal of cases involving minors during the development of the new table format and improper communication of this omission. The oversight was corrected in the following report (Appendix B – Figure 9 Full Table), presented to CPVAW on May 1, 2024, and included up-to-date data encompassing all genders, adults, and minors.

The SCPD would like to respond to the Grand Jury’s assessment of the SCPD’s statistical report (Appendix A – Figure 8 Full Table). The Grand Jury compared the year 2021 Case

13.29 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 14 of 31 Totals to SCPD’s website UCR figure of reported rape totals for the same year and questioned why the two values - 34 vs. 26 did not match and therefore concluded the statistical report was inaccurate. As defined in the SCPD response to the Grand Jury's R4 question, UCR data reports out monthly victim counts, while NIBRS reports on the total number of rape-related offenses.

In effect, the SCPD's monthly statistical report does both, but special consideration is needed when summing values. Rape cases can involve multiple offenses, and a case typically involves only one victim. The SCPD statistical report breaks out rape-related offenses but places an asterisk next to any offense that is already associated with another offense listed in the same case. By excluding any value with an asterisk while summing values, the SCPD statistical report will provide a rape case count similar to UCR Summary data. If all raperelated values are summed, ignoring the presence of asterisks, the SCPD statistical report will generate a rape offense count similar to NIBRS data.

Due to the confusion reported in the grand jury report, the SCPD has reservations regarding the effectiveness of the current format of the monthly statistical report in keeping the community well-informed. The SCPD requests that the Commission review what data is needed to better understand the nature and extent of rape-related crimes in the community and asks the Commission to provide details on how it intends to use the data to tailor prevention and intervention strategies. A better understanding of the Commission’s work plan will help improve the collaborative work between the Commission and the SCPD.

To add to the confusion, one member of the Commission has requested certain metrics not consistent with the other members of the Commission. The SCPD, trying to be collaborative and responsive, provided this information but it has been taken out of context, creating confusion and the perception the SCPD is changing the data. The SCPDt recommends, prior to producing any future data or metrics, the Commission decides exactly what information they are looking for and what they will do with the information in the world of prevention and education. There are many different means to produce the data, but it will be clearer to the Commission and the public if we can agree on one methodology and then understand the nuisances of that data.

The SCPD remains committed to providing accurate and comprehensive statistical reports, ensuring transparency and continuous improvement in response to the Commission's needs.

13.30 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 15 of 31 F9. The SCPD and the Commission’s lack of a consistent definition of rape leads to public confusion and potential undercounting of rape crimes in the City.
__ AGREE
__ PARTIALLY DISAGREE
_X_ DISAGREE
Response explanation (required for a response other than Agree):

When the Federal Government changed the definition of rape in 2013, SCPD immediately included the additional penal codes that now fall under the new definition and have been reporting these numbers since this change. The lack of consistency is more related to the different data collected and methodologies between UCR data, NIBRS/CIBRS, and specific metrics requested by the Commission.

13.31 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 16 of 31 F10. The Five Year Strategic Plan’s failure to include the prevention of rape and domestic violence leaves the community less aware and less safe. __ AGREE
__ PARTIALLY DISAGREE
X__ DISAGREE
Response explanation (required for a response other than Agree):

The absence of rape and domestic violence prevention from the Public Safety focus area of the Five-Year Strategic Plan does not lessen its significance as a priority for the City. The recently adopted strategic plan serves as a framework that balances community needs with the City's resource capacity. It reflects the policy priorities set by the City Council and acts as a high-level roadmap for future actions. The plan includes a vision to guide future focus, seven focus areas to direct organizational efforts, goal statements, strategies for achieving these goals, and a workplan for implementation.

The lack of specific mention of the Commission in the Five-Year Strategic Plan does not imply that the community is less informed or safe regarding the prevention of rape and domestic violence. Moreover, it does not undermine the Council's commitment to these issues. Notably, the Commission is the only advisory body that receives a dedicated budget and staffing from the City Council. The Council has demonstrated its commitment by increasing the Commission's budget by over 150% for FY25, enabling additional staff support and resources to further the Commission’s goals in preventing rape and domestic violence in Santa Cruz.

13.32 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 17 of 31 F11. The City Manager’s Weekly Update to the community has not highlighted the work of the CPVAW for the past two years, effectively relegating the prevention of rape and domestic violence to a low priority, leaving the public uninformed.
__ AGREE
__ PARTIALLY DISAGREE
X__ DISAGREE
Response explanation (required for a response other than Agree):

There is no evidence to suggest that the absence of the Commission’s activities in the City Manager’s Weekly Updates has left the public uninformed or perceived as a low priority. The Weekly Update is a communication tool that shares relevant city activities and projects, drawing information from City Departments and highlighting key city council actions and significant projects. The Commission is encouraged to submit updates about its work to the City Manager’s office for inclusion.

The Commission focuses on partnering with community-based organizations that specialize in supporting victims of domestic violence and sexual assault. In 2024, the Commission provided funding to local non-profits, including $2,000 to the Walnut Avenue Women’s Center, which offers direct services to survivors, and $8,000 to Monarch Services, which provides crisis response for survivors of domestic violence, sexual assault, and human trafficking. These organizations have a broader reach than the City Manager’s Weekly Update, effectively disseminating more information to the public.

Furthermore, the Commission has significantly increased its community presence by participating in events such as co-sponsoring the "Stronger Together" Fun Run/5K with Monarch Services in September 2023 and 2024, marching in the Dyke March and the 2024 Pride Parade, and taking part in the 2024 March to End Homelessness and the “She is Beautiful” race. These events enhance awareness and provide crucial information on preventing rape and domestic violence.

Additionally, the Commission has launched a dedicated newsletter to highlight its events and activities, allocating funds for two publications in FY25. It also uses social media platforms to promote and inform the community about the initiatives of the Commission.

13.33 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 18 of 31 Recommendations
R1. The Grand Jury recommends that the City Council fund a dedicated staff person for the Commission with skills commensurate to the need for program and resource development, community outreach and visibility, data research and report writing and have such position advertised by December 31, 2024. (F5, F3)
__ HAS BEEN IMPLEMENTED – summarize what has been done
_X_ HAS NOT YET BEEN IMPLEMENTED BUT WILL BE IN THE FUTURE – summarize what will be done and the timeframe
__
REQUIRES FURTHER ANALYSIS – explain the scope and timeframe (not to exceed six months)
__ WILL NOT BE IMPLEMENTED – explain why
Required response explanation, summary, and timeframe:

As part of the FY25 Budget, the City Council has approved a part-time (20 hours per week) Administrative Assistant III to support the work of the Commission. The recruitment is scheduled to begin in late August or early September 2024.

13.34 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 19 of 31 R2. The Grand Jury recommends that the City Council reevaluate the legal ability of CPVAW commissioners to access redacted police reports of rape as described in this investigation, and present the results of that research by December 31, 2024. (F6)
__ HAS BEEN IMPLEMENTED – summarize what has been done
__
HAS NOT YET BEEN IMPLEMENTED BUT WILL BE IN THE FUTURE – summarize what will be done and the timeframe
__
REQUIRES FURTHER ANALYSIS – explain the scope and timeframe (not to exceed six months)
X__ WILL NOT BE IMPLEMENTED – explain why
Required response explanation, summary, and timeframe:

Police reports documenting instances of rape, sexual assault, or domestic violence are extremely sensitive. These reports provide intimate details about horrific crimes.

Even if heavily redacted, it is likely the reports would still include details that would enable some to identify the victim or parties involved.

However, review of police reports in open session would waive any applicable exemption under the Public Records Act (Gov’t Code § 7921.505), and the City would be required to release those redacted reports to any member of the public that requests them. In other words, if the Commission were to review the redacted police reports in open session, the City would be waiving the future confidentiality of those reports, without the consent of the individuals who are referenced in that report, and without input as to how that lack of confidentiality might impact their lives.
(3) The City is legally prohibited from releasing some reports, even in redacted form. For example, state law prohibits the release of a police report where a juvenile is the subject of the report (Wel & Inst Code § 827.95), or reports involving mandated reports of suspected child abuse and neglect (Penal Code § 11167.5). Various Constitutional provisions, such as The Victims’ Bill of Rights Act of 2008: Marsy’s Law, Section 28 of Article I of the California

13.35 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 20 of 31 Constitution, or the right to privacy afforded by Section 1 of Article I of the California Constitution may also be considered when determining whether to release a police report. Even for reports that the City is not legally prohibited from releasing, all of the referenced police reports are generally exempt from disclosure to the public pursuant to Government Code section 7923.600.

Based on the foregoing, including the advice of the City Attorney’s Office, the Commission voted to not require the SCPD to provide redacted police reports to the Commission or the Commission’s Police Sub-Committee.

13.36 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 21 of 31 R3. The Grand Jury recommends that the City Council begin evaluating options with the Santa Cruz City School District to reinstate the in-person self-defense program for middle and high school students of all genders by January 31, 2025. (F4)
__ HAS BEEN IMPLEMENTED – summarize what has been done
__
HAS NOT YET BEEN IMPLEMENTED BUT WILL BE IN THE FUTURE – summarize what will be done and the timeframe
_X_ REQUIRES FURTHER ANALYSIS – explain the scope and timeframe (not to exceed six months)
__ WILL NOT BE IMPLEMENTED – explain why
Required response explanation, summary, and timeframe:

The Commission has previously offered self-defense classes either through City Schools and/or the Parks and Recreation Department. Over the years, participation in the Parks & Recreation program significantly declined, leading to the cancellation of classes. Based on the lack of participation, free classes sponsored by the Commission are no longer offered through Parks and Recreation.

In FY2023, the City Council approved a budget of $15,000 for self-defense classes to be administered by the Commission. In November of 2023, the Commission considered how best to use the funds at a regularly scheduled public meeting. The Commission considered two options: 1) Self Defense program through the City Parks & Recreation Department or 2) A proposal by Santa Cruz City Schools for an on-line course through a private contractor, Vector Solutions. The Commission chose the City Schools proposal.

This program offered targeted courses for grades 6-8 and 9-12, which would reach approximately 2,000 students. This mandatory program would enable the school to extend its reach, empowering more students to make informed choices, resist peer pressure, and foster health relationships. Topics included: Dealing with Stress and Anxiety; Self-Harm Awareness and Resolving Disagreements. Additional content included Mental Health and Wellbeing, Healthy Relationships & Inclusion, Personal & Community Safety and Student Safety and Wellness.

13.37 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 22 of 31 In addition, the Commission authorized an additional $5,000 to enable one Commissioner to work with the Parks and Recreation department to offer a selfdefense course. Unfortunately, the program never came to fruition, and the funds were not spent.

In the FY25 Budget, the City Council approved re-authorization of $15,000 to continue offering these types of programs. Consideration of how to utilize these funds will be considered by the Commission at its meeting on September 4, 2024.

13.38 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 23 of 31 R4. The Grand Jury recommends that the SCPD update its website to include the detailed metrics on Rape Incidents submitted to NIBRS and CIBRS, ensuring all data entries are accurate and available at each meeting of the CPVAW, and have this in place by January 31, 2025. (F8, F9)
__ HAS BEEN IMPLEMENTED – summarize what has been done
__
HAS NOT YET BEEN IMPLEMENTED BUT WILL BE IN THE FUTURE – summarize what will be done and the timeframe
__
REQUIRES FURTHER ANALYSIS – explain the scope and timeframe (not to exceed six months)
_x_ WILL NOT BE IMPLEMENTED – explain why
Required response explanation, summary, and timeframe:

The publication of metrics on rape incidents from the National Incident-Based Reporting System (NIBRS) and California Incident-Based Reporting System (CIBRS) would introduce an additional data set to the two preexisting data sets regularly published by the Santa Cruz Police Department (SCPD) – Uniform Crime Reporting (UCR) data and its own monthly statistical data report provided to the Commission. SCPD believes this would increase public confusion regarding rape incidents within the City of Santa Cruz. All three data sets report on rape occurrence, but variations in methodology, scope, and level of detail make direct comparisons unsound.

Uniform Crime Reporting System (UCR)
The UCR Summary system reports are based on when a crime is reported, not when the crime occurs. For example, in many rape-related cases, individuals come forward weeks, months, or even years after being victimized. This limitation can distort monthly victim counts and create erroneous trends within a community. Another constraint lies in how the data is prioritized. UCR Summary data reflects the hierarchy rule, which states that only the most severe crime contributes to an agency’s monthly crime totals when more than one offense occurs within an incident. For example, an incident involving a murder, robbery, and rape, the stats only reflect the homicide for the monthly totals, as homicide is the highest offense on the hierarchy.

UCR data is calculated by the number of victims and does not account for multiple offenses committed against one victim during one incident. For example, a victim of rape (261 pc) could also be a victim of oral copulation (288a pc) and sodomy (286 pc). All of these offenses fall under the definition of rape per the new definition in 2013 but there are different penal code sections and charges. UCR data will calculate this example as one incident because it only includes one victim. However, in other reporting methodologies like NIBRS or metric collecting like CPVAW has requested, the one incident can be counted multiple times depending on the number of penal code sections or charges brought forward on the perpetrator.

13.39 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 24 of 31 National Incident-Based Reporting System (NIBRS)
NIBRS collects detailed data on each reported crime incident, including information on the victim, offender, location, weapon used, and circumstances surrounding an incident. Unlike UCR Summary, NIBRS captures all offenses reported in a single incident, providing a more complete picture of criminal activity. NIBRS’ labile data set allows for constant updates to monthly summaries as cold cases are reported.

Publishing static monthly NIBRS/CIBRS data on SCPD’s website or through the Commission’s meetings immortalizes data designed to change over time, offering little added benefit to the public. NIBRS/CIBRS data is not updated until several weeks after the end of each month, producing the data monthly would cause more confusion and provide inaccurate data to the public.

The level of detailed data provided by NIBRS allows law enforcement agencies, policymakers, and researchers to better understand the nature and extent of crime in their communities, identify emerging trends, and tailor prevention and intervention strategies accordingly, but may not be suitable for public consumption without proper analysis and a simplified synopsis.

Additionally, unlike UCR data, NIBRS/CIBRS data will change based on when a crime occurred versus when the crime was reported. Therefore NIBRS/CIBRS data is fluid and could constantly change. However, UCR data is locked once each month is complete. This adds to the confusion and perception of the inaccuracies to the data.

13.40 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 25 of 31 R5. The Grand Jury recommends that the SCPD reinstate community alerts for incidents of stranger rape, with case-by-case updates, by December 31, 2024. (F7)
_x_ HAS BEEN IMPLEMENTED – summarize what has been done __
HAS NOT YET BEEN IMPLEMENTED BUT WILL BE IN THE FUTURE – summarize what will be done and the timeframe
__
REQUIRES FURTHER ANALYSIS – explain the scope and timeframe (not to exceed six months)
__ WILL NOT BE IMPLEMENTED – explain why
Required response explanation, summary, and timeframe:

SCPD never stopped executing community alerts for incidents of stranger rape when the circumstances were necessary to keep the community safe and well-informed.

13.41 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 26 of 31 R6. The Grand Jury recommends that the Commission and the SCPD submit comprehensive annual reports as called for in Ordinance 81-29, using the 2005-07 reports as a model, with the 2024 Annual Report placed on the Commission's agenda by December 31, 2024 and future reports submitted on a consistent, annual basis. (F1)
__ HAS BEEN IMPLEMENTED – summarize what has been done
__
HAS NOT YET BEEN IMPLEMENTED BUT WILL BE IN THE FUTURE – summarize what will be done and the timeframe
__
REQUIRES FURTHER ANALYSIS – explain the scope and timeframe (not to exceed six months)
_X_ WILL NOT BE IMPLEMENTED – explain why
Required response explanation, summary, and timeframe:

The Annual Report as required by Ordinance No. 81-29, Section 5.(d), requires the Commission to “…submit annually, and the City Council review and act upon a report documenting, in detail, City, community, and police efforts to carry out the purposes of this ordinance.” The Ordinance does not require the Annual Report to provide detailed metrics on rape. However, various Annual Reports over the years have included data on rape and domestic violence, including the most recent Annual Report for 2023. The 2023 Report includes details the FBI Uniform Crime Report for Rape and Domestic Violence from 2015 to 2023, and data from 2010-2023 on the following California Penal Code Sections relating to Rape: 220 Attempted Rape; 261/262 Rape; 286 Sodomy; 387/288 Oral Copulation and 289 Penetration with a foreign object. The Commission will continue to provide comprehensive reports as required by the Ordinance.

The 2023 Annual Report is modeled after the 2005-2007 and the 2008-2010 Annual Report. Both of those reports were a Joint Report by the Commission and the Santa Cruz Police Department, same as the 2023 Report. Both reports contain data on sexual assault including incidents by Penal Code Violations. However, the previous reports did not contain information on Domestic Violence which the 2023 report contains. The previous reports include an analysis of demographics within each rape case which has not been conducted since 2017. The Commission, not individual commissioners, must decide what information or metrics they would like to see and how the information will be used towards prevention and education. There needs to be an agreement of what set of data and metrics will be evaluated because the combination of different sets of data causes confusion and the perception of deception.

The Annual Report should include a full years’ worth of data, therefore presenting an annual report in December would not include a full years’ worth of data. In order to

13.42 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 27 of 31 provide the community with a comprehensive report, with a full year’s worth of data, the report will be presented at the February meeting of the following year.

13.43 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 28 of 31 R7. The Grand Jury recommends that the 2023 Report be amended to remove the national entry on stranger rape, replacing it with accurate data for the City of Santa Cruz by December 31, 2024. (F2)
__ HAS BEEN IMPLEMENTED – summarize what has been done
__
HAS NOT YET BEEN IMPLEMENTED BUT WILL BE IN THE FUTURE – summarize what will be done and the timeframe
X__ REQUIRES FURTHER ANALYSIS – explain the scope and timeframe (not to exceed six months)
__ WILL NOT BE IMPLEMENTED – explain why
Required response explanation, summary, and timeframe:

The 2023 Annual Report provides a comprehensive data analysis over a 14-year period on rape and 16 years’ worth of data on domestic violence cases in the City of Santa Cruz. While the Annual Report does not distinguish between acquaintance and stranger rape, the data is accurate. The Ordinance does not require the Annual Report to provide crime data, however, because the data on the number of cases is readily available and is compiled by the SCPD it is included in the Annual Report.

Ordinance No. 81-29, Section 5.(d), requires the Commission to “…submit annually, and the City Council review and act upon a report documenting, in detail, City, community, and police efforts to carry out the purposes of this ordinance.” SCPD supports the collection of this information if the Commission decides on all the metrics they are interested in and shows how it will be useful towards the prevention and education mission. SCPD feels both national statistics on stranger rape and local metrics are important to provide the public with a local view as well as a broader perspective. The data SCPD has presented is accurate, but some confusion has arisen based on the different methodologies of UCR data, NIBRS/CIBRS, and specific requests from the Commission.

13.44 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 29 of 31 R8. The Grand Jury recommends that the CPVAW update the status of the Safe Place Network and the Bar Coasters program. If the programs are to be discontinued, a public CPVAW meeting is advised for that decision. If the programs are to be continued, the date of January 31, 2025 is recommended for the full reinstatement of these programs. (F3)
__ HAS BEEN IMPLEMENTED – summarize what has been done
__
HAS NOT YET BEEN IMPLEMENTED BUT WILL BE IN THE FUTURE – summarize what will be done and the timeframe
__X REQUIRES FURTHER ANALYSIS – explain the scope and timeframe (not to exceed six months)
__ WILL NOT BE IMPLEMENTED – explain why
Required response explanation, summary, and timeframe:

The Commission will agendize the Safe Place Network at their September 4, 2024 meeting to consider whether or not to continue the program.

The Bar Coaster program is in place. As of June 2024, an additional 500 coasters were purchased to be distributed to local bars.

13.45 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 30 of 31 R9. The Grand Jury recommends that Focus Area 5, Public Safety of the 2023-28 Five Year Strategic Plan include an entry prioritizing the prevention of rape and domestic violence, as mandated by Ordinance 81-29, and published by February 28, 2025. (F10)
__ HAS BEEN IMPLEMENTED – summarize what has been done
__
HAS NOT YET BEEN IMPLEMENTED BUT WILL BE IN THE FUTURE – summarize what will be done and the timeframe
__
REQUIRES FURTHER ANALYSIS – explain the scope and timeframe (not to exceed six months)
_X_ WILL NOT BE IMPLEMENTED – explain why
Required response explanation, summary, and timeframe:

13.46 Required Response from the Santa Cruz City Council Preventing Rape and Domestic Violence Due by September 25, 2024 Page 31 of 31 R10. The Grand Jury recommends that the City Manager increase the visibility of the CPVAW programs and events by publishing relevant information, at least quarterly, in the City Manager’s Weekly Update and that the first article be published by December 31, 2024. (F11)
__ HAS BEEN IMPLEMENTED – summarize what has been done
__
HAS NOT YET BEEN IMPLEMENTED BUT WILL BE IN THE FUTURE – summarize what will be done and the timeframe
__
REQUIRES FURTHER ANALYSIS – explain the scope and timeframe (not to exceed six months)
_X_ WILL NOT BE IMPLEMENTED – explain why
Required response explanation, summary, and timeframe:

13.47 From: Kim Horowitz
To: Fred Keeley; Renee Golder; Sandy Brown; Sonja Brunner; Scott Newsome; Martine Watkins; Shebreh KalantariJohnson; City Council Subject: Agenda Packet for September 10th
Date: Sunday, September 8, 2024 11:31:34 AM
Dear Mayor Keeley and City Council members,
I send this request as the 2023-2024 Civil Grand Jury foreperson:

The agenda packet for your meeting of September 10 includes staff responses to the Grand Jury reports, Housing for Whom? and Preventing Rape and Domestic Violence, Where’s the Priority?
However the agenda report does not include an attachment for the full Grand Jury Reports, only the Findings and Recommendations plus staff responses to them. The full reports contain the facts and evidence to support the Findings. Without reading the full reports, neither council nor the public can adequately assess staff responses.

The two reports can be found
at: https://www.santacruzcountyca.gov/Departments/GrandJury/2023- 2024GrandJuryReportsandResponses.aspx
Thank you for your attention to this matter. We trust you will read the full reports and we look forward to receiving your responses.

Sincerely,
Kim Horowitz

13.48 From: Gillian Greensite
To: Fred Keeley; Renee Golder; Sandy Brown; Sonja Brunner; Scott Newsome; Martine Watkins; Shebreh KalantariJohnson; City Council Subject: Council response to Grand Jury reports
Date: Monday, September 9, 2024 10:15:10 AM
Attachments: HOUSING FOR WHOM- Response to City Staff"s Responses.docx Dear Mayor, Vice-Mayor and Council members,
I am writing as an individual member of the community, not as a Grand Juror.

I did however spend the 2023-2024 year as a Grand Juror. The dedication of nineteen Grand Jurors to the enormous amount of work investigating, fact checking, writing, editing and group process to present you and the community with reports aimed at improving the transparency and efficiency of local government was inspiring. I expected a response to the reports at a similar level of integrity, even if in disagreement.

Your staff’s response to both reports is highly problematic. Details are in the attachment which contains rebuttals to their response to the Housing For Whom? report. Rebuttal to staff’s response to Preventing Rape and Domestic Violence: Where’s the Priority? will follow.

The failure of staff to include the Grand Jury reports in the respective agenda packets, both at the commission level and now at the council level is concerning. I wrote twice to the commission staff requesting that the reports be included. They weren’t. There is no way for the public or for you to assess staff’s response to the Findings and Recommendations without a careful reading of the reports. It took the Grand Jury a year to develop and publish the reports, with scrutiny from county counsel and the presiding judge. The least one should expect is that the reports be included at the public hearings.

Maybe I’m eternally hopeful. There is still time and opportunity for you to respond as a council, rather than rubber stamp staff’s responses which are demonstrably evasive and misleading.

Respectfully submitted,
Gillian

13.49 GRAND JURY REPORT 2023-2024
HOUSING FOR WHOM?
CITY STAFF REPONSES and Rebutals
Rebutal to Staff Response on F1
The city staff explana�on that Inclusionary Housing income eligibility depends on the governing Resolu�on at a specific point in �me begs the ques�on that all eight city council

13.50 Resolu�ons between 1985 and 2018 mandate that such housing be restricted to Low, Very Low and Extremely Low- income categories. There is no explana�on offered by staff for the inclusion of Moderate Income for Inclusionary Housing, both on its website and in specific, cited market-rate projects.

13.51 Rebutal to Staff Response on F2
The city staff response sidesteps the main issue: the lack of data to verify whether Inclusionary Housing since 2006 is occupied by residents and local workers as required by the Municipal Code. Income-verifica�on is a separate issue and was not of concern in the Grand Jury Findings. Nor were the condi�ons imposed by federal and state funds of concern.

Of concern is the lack of data to verify whether the mandated preferences for residents and local workers are being followed, in developers’ rankings and in affordable housing agreements, including the new Compliance Form. The mechanisms in place do not provide any data to track and verify, let alone enforce the City’s preferences.

Rebutal to Staff Response on F3
The staff response punts the issue to UCSC. It is the city, not UCSC that has a stake in knowing whether UCSC students are occupying the city’s Inclusionary Housing.

13.52 The Grand Jury report documented that the city is unaware whether UCSC students occupy Inclusionary Housing, hence the Recommenda�on that this data be tracked. The assump�on that most undergraduate students, “nearly 90%” are not income eligible for Inclusionary Housing since they are likely to be dependents fails to account for the sizable percentage of re-entry undergraduates (over 25 years of age) who are likely independent and likely eligible for Inclusionary Housing.

Rebutal to Staff Response on R1
This Recommenda�on has not been implemented. Specific HCD incomes and their updates are not the topics of concern. Of concern is which Income levels the city restricts for Inclusionary Housing. The Resolu�ons limit the Income levels to Low, Very Low and Extremely Low but the City’s website adds Moderate Income and in prac�ce allows Moderate Income eligibility for Inclusionary Housing. Given these discrepancies, the Grand Jury

13.53 Recommenda�on is for the city to determine and state exactly which Income levels are eligible for Inclusionary Housing.

Rebutal to Staff Response on R2
This Recommenda�on has not been implemented. The Grand Jury is aware that local and worker preferences were adopted in 2006 and did not apply prior to that date. This Recommenda�on is to develop a system to track preferences going forward.

Just as there is no publicly available personal tax or income iden�fica�on involved in the Housing Authority’s tracking and verifica�on of individual incomes for Inclusionary Housing eligibility, there is no need for revealing personally iden�fiable informa�on, nor specific unit addresses in the city’s development of a tracking system for preference verifica�on. To suggest this as a reason to not track preferences is a red herring.

13.54 Rebutal to Staff Response on R3
The staff response punts the issue to UCSC. It is the city, not UCSC that has a stake in knowing whether UCSC students are occupying the city’s Inclusionary Housing.

The Grand Jury report documented that the city is unaware whether UCSC students occupy Inclusionary Housing, hence the Recommenda�on that this data be tracked. The assump�on that most undergraduate students, “nearly 90%” are not income eligible for Inclusionary Housing since they are dependents fails to account for the sizable percentage of re-entry undergraduates (over 25 years of age) who are likely independent and likely eligible for Inclusionary Housing.

13.55 Rebutal to Staff Response on R4
Recommenda�on 4 has not been implemented. The Recommenda�on is not asking for the number of Inclusionary units in specific projects nor the availability of such units which is readily available on the City’s website. Nor does the Recommenda�on call for the public release of Measure O tenants’ addresses. That is alarmist and a misreading of the Recommenda�on.

Recommenda�on 4 is for the crea�on of a public dashboard that includes the numbers or percentage of Inclusionary Units occupied by residents and local workers which are preferences required since 2006, as well as to track the percentage of such units occupied by UCSC students.

13.56 From: Gillian Greensite
To: Fred Keeley; Renee Golder; Sandy Brown; Sonja Brunner; Scott Newsome; Martine Watkins; Shebreh KalantariJohnson; City Council Subject: Staff response to Grand Jury Report on Preventing Rape and Domestic Violence: Where"s the Priority? Date: Monday, September 9, 2024 3:11:23 PM
Attachments: PREVENTING RAPE & DV, staff responses & rebuttals.docx Dear Mayor, Vice Mayor and Council members,
As I wrote earlier today, here is my second rebuttal to staff’s response to the Grand Jury reports. This one is in regards to the report: Preventing Rape and Domestic Violence: Where’s the Priority? Thank you,
Gillian

13.57 Grand Jury Reports 2023-2024
City Of Santa Cruz: Preventing Rape and Domestic Violence Where’s The Priority?
Rebutal to City staff responses to Grand Jury Findings
Staff has checked Disagree for ten out of the eleven Grand Jury Findings F1 & F2 The public is likely to disagree with staff and agree with the Grand Jury that the failure to track rapes commited by un-apprehended strangers in CPVAW reports since 2016 indeed leaves the community less informed and more vulnerable. The earlier Reports included the areas of town where such rapes were commited. The only data point on rape in the 2023 Report is the total numbers of rapes over �me.

Staff’s entry notes a decrease in reported rape from 2022 to 2023 and claims this indicates the city is safer. Staff omits the fact that by August 2024, the number of reported rapes (34) has already passed the total for the full year of 2023. Numbers alone do not measure safety. But informing the public of the numbers of rapes by strangers s�ll at large and the areas of town where such rapes were commited is likely to increase awareness and safety.

F4 The Vector Solu�ons well-being video is not a replacement for in-person self-defense classes. The Grand Jury report documents this dis�nc�on and the popularity and success of the in-person self-defense classes in the schools. The staff entry reads like a promo�onal for Vector Solu�ons. “Healthy choices and posi�ve rela�onships” are not consistent with defending against gender violence. Such topics, worthwhile in other contexts, in the context of defending against rape could be regarded as “blaming the vic�m.” F5 Again, the staff entry that the city is safer in 2023 due to a decrease in reported numbers of rape from 2022 omits the fact that in 2024, reported rape numbers by August have already exceeded the total for 2023.

F6 You may disagree with gran�ng the Commission access to redacted police reports, which it has had for the past 30 years, but this lack of access prevents it from evalua�ng which areas of police response, if any, require further training. Similarly, the Commission cannot evaluate ci�zens’ complaints if it can’t review the report on which the complaint is based.

13.58 F7 Regarding public alerts for rapes by strangers, those who follow such issues would suggest this claim is specious. If not, please have SCPD provide the date of the most recent public alert of a rape by a stranger, including the text of the alert, manner and range of its distribu�on, and ar�st rendering of the suspect. What criteria does SCPD use to determine that a public alert of an at- large, unknown suspect of rape is appropriate? F8 This response is overly complicated and therefore unclear. To quote from the Grand Jury report: “One example: In Figure 8, the number entered for 2023 is eight rapes. In Figure 9, using the same definition, the number entered for 2023 is seventeen rapes.” So, is the difference due to the omission of minors in Figure 8? If so, why was that difference not brought to the Commission’s and the public’s attention at the meeting? Why no asterisk? Why is F8 checked by staff as Disagree rather than Agree or Partially Agree? F10 The city’s Five-Year Strategic Plan is a statement of its priori�es. It includes a sec�on on Public Safety. To exclude any men�on of rape and domes�c violence preven�on which are mandated to be one of the city’s highest priori�es is a significant oversight that should be acknowledged. The push back from staff is defensive rather than correc�ve. To men�on the Commission’s budget and staffing as ra�onale to demonstrate its priori�za�on is misleading.

The modest budget and staffing are because the Commission has no department atached to it to provide resources.

F11 By disagreeing with this Finding, staff is missing an opportunity for correc�ve ac�on.

Rebutal to City staff responses to Grand Jury Recommenda�ons R2 As someone who read over three hundred redacted police reports on rape while serving three terms on CPVAW, I can atest that the claim made by staff is inaccurate. The reports are heavily redacted. There is no ability to iden�fy a vic�m or other par�es involved.

R3 See earlier rebutal to F4.

R4 Staff’s reasoning to reject this recommenda�on to use NIBRS data and replace obsolete UCR data is hard to fathom. It doesn’t “introduce an addi�onal data set” but rather uses the current data gathering tool that is used na�onwide and which SCPD is already using. NIBRS gathers important metrics for community awareness such as whether the assailant is a stranger to the vic�m. Such metrics should be made available to the Commission and the community. To suggest they may not be suitable for public consump�on is not in keeping with the intent of NIBRS. The fact that NIBRS data is fluid and is updated is not an argument against its usage. A disappoin�ng response.

R5 See rebutal to F7

13.59 R6 It is inaccurate and misleading for staff to state that the 2023 Report is modeled a�er the 2005-2007 Report. That, plus the earlier report did include Domes�c Violence informa�on.

Council should read both before pu�ng your name to such a claim.

R7 Staff response misses the point of the recommenda�on. This issue should be read more carefully before council accepts this as your response.

R8 Just to note this item was not on the Commission’s September 4 agenda.

R9 See rebutal to F10
R10 A disappoin�ng response from staff. Agreeing with this recommenda�on would go a long way towards correc�ng the documented marginaliza�on of the preven�on of rape and domes�c violence in the city of Santa Cruz
Gillian Greensite
September 9, 2024

13.60 City Council

AGENDA REPORT
DATE: 08/22/2024
AGENDA OF: 09/10/2024
DEPARTMENT: Economic Development and Housing
SUBJECT: State Match Local Housing Trust Fund Program (LHTF Program) Funding Application for Funding Affordable Housing Development (EDH) RECOMMENDATION: Motion to:
1) Adopt a resolution to approve the 2024 State Local Housing Trust Fund Program (LHTF) funding application submittal and, if selected, receive an allocation of State Match funding through the LHTF Program and execute any documents related to the 2024 LHTF funding award;
2) Approve revised City Affordable Housing Trust Fund (AHTF) Administrative Guidelines for consistency with the LHTF program requirements;
3) Approve the Housing Authority of the County of Santa Cruz’s contribution of up to $3.2 million for the 136 River Street Project (Project) to be administered as a City AHTF loan contingent on the Housing Authority review and Board approval of the RFQ response submitted by Eden Housing Inc. and For the Future Housing Inc.; and 4) Approve an increase to the already committed $1.8 million AHTF Project loan that includes the Housing Authority’s and/or the AHTF’s funding up to the $5 million maximum per the LHTF program requirements.

BACKGROUND: On July 9, 2024, the State of California Department of Housing and Community Development issued a Notice of Funding Availability (NOFA) for the Local Housing Trust Fund Program (LHTF Program). The NOFA stated that approximately $53 million in state LHTF Program funds from the Veterans and Affordable Housing Bond Act Trust Fund of 2018 is available to fund Local Public Agencies or Nonprofit Corporations for eligible activities within the LHTF program.

To be eligible to apply for this funding, an applicant (such as a city, county, city and county, charitable non-profit organization or a Native American Tribe or Tribes) must have created, funded, and operated an existing Local Housing Trust Fund (LHTF) or that has created and funded a new LHTF in compliance with Guidelines Sections 102(a)(1), 102(a)(2), and 102(a)(3).

As one of the eligible funding activities, these funds would be used for the purpose of developing affordable housing in the City of Santa Cruz.

14.1 Matching funds are required for this program and the applicant must designate the project that will utilize the funding to be competitive for the State grant. All LHTF Program funds provided by the State shall be matched by the applicant on a dollar for dollar basis with matching funds derived from dedicated sources of funding, such as taxes, fees, or loan repayments, or public or private contributions by the applicant. Matching funds shall be on deposit in the City’s Affordable Housing Trust Fund (AHTF) prior to disbursement of LHTF Program funds.

Matching funds must be utilized on a dollar-for-dollar basis for the same eligible project for which LHTF Program funds are used.

On October 28, 2003, the City established an AHTF for the purpose of developing and preserving affordable housing.

DISCUSSION: Based on the eligible activities, staff is proposing that the Council direct staff to apply for funding for the LHTF Program.

This LHTF Program is highly competitive as there is not a large amount of funding available, considering any jurisdiction in California with a Housing Trust Fund may apply. In the State Housing and Community Development LHTF funding round in 2020 and 2021, the City of Santa Cruz was awarded the maximum $5,000,000 award amount after a highly competitive scoring process. For this funding application, the City must identify the project for which the LHTF funds will be used. Pacific Station South and the Library Mixed Use project were the awarding projects for the 2020 award and Pacific Station North was the awarding project for the 2021 award. In the funding program question and answer webinar, the State said they do not want to assist the same project twice with LHTF funds. In this upcoming LHTF funding application round, the 136 River Street project has the best chance at being competitive to receive funding assistance due to the scoring criteria. The 136 River Street project already has an existing City AHTF loan for $1,800,000 and staff recommends that the City leverage as much of the State LHTF dollar for dollar match as possible. Eden Housing and For the Future Housing Developers have submitted a 136 River St project application for the Housing Authority's RFQ for codevelopment. The Housing Authority’s application review process is currently underway but not complete yet. If the Housing Authority accepts the Project application, the Housing Authority would become a co-developer for the Project and provide additional funding for the State match LHTF application. Since there is a timing issue with the LHTF application deadline and when the Council next meets, staff is including a motion to accept the Housing Authority Board funding contribution if the Housing Authority makes the decision prior to the application deadline. For the LHTF program requirements, the Housing Authority project contribution must be administered by the City AHTF as a loan to the Project for the match requirements.

Otherwise, there is a remainder of up to $700,000 AHTF funding that can be committed to the Project if additional funding is needed as a gap source to leverage the State dollar for dollar match. If the project is not awarded with the LHTF funding, then the City can exercise the option to rescind the $700,000 commitment.

The LHTF Program provides a 60-month (5 year) period to fully expend the awarded funds. The LHTF program also requires that the City AHTF loan and underwriting Guidelines be consistent with the State’s Uniform Multifamily Regulations (UMRs). Most projects that seek State Housing & Community Development (HCD) funding already have to follow the State UMRs.

Staff recommends revising the City AHTF Guidelines to be consistent with the UMRs required by the LHTF program and applying for up to the maximum allowed amount, $5,000,000, for this

14.2 2024 LHTF NOFA round for the 136 River Street affordable rental housing development. A redlined version of the proposed AHTF Guidelines revisions is provided as an attachment.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: None.

HEALTH IN ALL POLICIES (HiAP): With the 136 River Street affordable rental housing project located on the edge of downtown, it will help bridge the connection from the River Street City Gateway to downtown and encourage a sustainable and healthy lifestyle by allowing residents to walk and ride to the job center and commercial uses in the downtown vicinity. By providing 100% affordable rental apartments, this will not only help the City with a more sustainable supply of rental housing, but will also help create a more inclusive equitable community.

FISCAL IMPACT: If awarded LHTF funding and if additional match funding is needed by the Developer, the City would increase the existing City AHTF loan to meet the LHTF Program matching requirement, up to $700,000. There have been and will continue to be staff costs associated with applying for, executing agreements, and administering this program that will be absorbed within the approved FY 25 budget.

Prepared By:

Jessica de Wit
Housing and Community
Development Manager
Submitted By:

Bonnie Lipscomb
Director of Economic
Development and Housing
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

2. EXHIBIT A.PDF

3. RESOLUTION ATTACHMENT1.DOCX

4. REDLINE OF PROPOSED AHTF GUIDELINES REVISIONS.DOC

14.3 RESOLUTION NO. NS-XX,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ TO APPROVE THE 2024 STATE LOCAL HOUSING TRUST FUND PROGRAM (LHTF) FUNDING

APPLICATION SUBMITTAL AND, IF SELECTED, RECEIVE AN ALLOCATION OF

STATE MATCH FUNDING THROUGH THE LHTF PROGRAM AND EXECUTE ANY DOCUMENTS RELATED TO THE 2024 LHTF FUNDING AWARD
WHEREAS, on July 9, 2024, the State of California Department of Housing and Community Development (Department) issued a Notice of Funding Availability (NOFA) for the Local Housing Trust Fund Program (LHTF); and
WHEREAS, based on the eligible activities, City staff proposed that the Council direct staff to apply for funding for the LHTF Program; and
WHEREAS, The LHTF Program provides a 60-month (5 year) period to fully expend the awarded funds. Staff recommends applying for up to the maximum allowed amount, $5,000,000, for this 2024 LHTF NOFA round for the 136 River Street affordable rental housing development; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz adopts the attached Exhibit A and Resolution Attachment 1, and directs staff to submit it to the Department.

PASSED AND ADOPTED this 10th day of September, 2024 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

14.4 1
______________________
_________________________________________________

AUTHORIZING RESOLUTION
_____________________________________of the ___________________________________ of _________________________________________________________(“Applicant”) hereby consents to, adopts and ratifies the following resolution:

A. WHEREAS, the Department is authorized to provide up to $53 million under the Local Housing Trust Fund (“LHTF”) Program from the Veterans and Affordable Housing Bond Act of 2018 (Proposition 1) (as described in Health and Safety Code section 50842.2 et seq. (Chapter 365, Statutes of 2017 (SB 3)) (“Program”).

B. WHEREAS the State of California (the “State”), Department of Housing and Community Development (“Department”) issued a Notice of Funding Availability (“NOFA”) dated 7/9/2024 under the LHTF Program;
C. WHEREAS Applicant is an eligible Local or Regional Housing Trust Fund applying to the Program to administer one or more eligible activities using Program Funds.

D. WHEREAS the Department may approve funding allocations for the LHTF Program, subject to the terms and conditions of H&S Code Section 50842.2, the LHTF Program Guidelines, NOFA, Program requirements, the Standard Agreement and other related contracts between the Department and LHTF award recipients;
NOW THEREFORE BE IT RESOLVED THAT:

1. If Applicant receives an award of LHTF funds from the Department pursuant to the above referenced LHTF NOFA, it represents and certifies that it will use all such funds on Eligible Projects in a manner consistent and in compliance with all applicable state and federal statutes, rules, regulations, and laws, including, without limitation, all rules and laws regarding the LHTF Program, as well as any and all contracts Applicant may have with the Department (“Eligible Project”).

14.5 2

2. NOW, THEREFORE, IT IS RESOLVED: That the ____________________________________ is hereby authorized to act as the ______________ in connection with the Department's funds to Eligible Projects pursuant to the above described Notice of Funding Availability in an amount not to exceed $ (the "LHTF Award"). NOTE: Dollar amount must include amount used for administrative costs, pursuant to Section 105(b) of the Guidelines.

3. Applicant hereby agrees to match on a dollar for dollar basis the LHTF Award pursuant to Guidelines Section 104. Applicant hereby agrees to utilize matching finds on a dollar-for-dollar basis for the same Eligible Project for which Program Funds are used, as required by HSC Section 50843.5(c).

INSTRUCTION: Provide a short summary on how you commit to use the Program Funds and Matching Funds. The summary, which shall be labeled Attachment 1 shall include: (1) identification of the percent of the total funds requested that will be used for each activity/project, including Area Median Income (AMI) level; and (2) a list of the jurisdictions where the activities/projects will be delivered, in the case of any HTF that serves more than one jurisdiction. Attachment 1 MUST be incorporated into your Resolution as an attachment before it is adopted.

4. Pursuant to Attachment 1 and the Applicant’s certification in this resolution, the LHTF funds will be expended only for Eligible Projects and consistent with all program requirements.

5. Nonprofit Housing Trust Funds and Native American Tribe Housing Trust Funds agree to use Program Funds only for Eligible Projects located in cities and counties that submitted an adopted Housing Element that was found by the Department to be in compliance and that have submitted their Housing Element Annual Progress Report (APR) for the current year or prior year by the application due date.

6. Applicant shall be subject to the terms and conditions as specified in the Standard Agreement, H&S Section 50842.2 and LHTF Program Guidelines

7. _______________________________ is/are authorized to execute the LHTF Program Application, the LHTF Standard Agreement and any subsequent amendments or modifications thereto, as well as any other documents which are related to the Program or the LHTF Award to Applicant, as the Department may deem appropriate.

14.6 3
PASSED AND ADOPTED at a regular meeting of
the _________________________________________________________ this _____ day of ____________, _________ by the following vote:

AYES: _____ ABSTENTIONS: _____ NOES: ____ ABSENT: _____ Approving Officer: _______________________
Signature of Approving Officer
__________________________________________
INSTRUCTION: The attesting officer cannot be the person identified in the resolution as the authorized signor

CERTIFICATE OF THE ATTESTING OFFICER
The undersigned, Officer of _________________________ does hereby attest and certify that the ________________ Resolution is a true, full and correct copy of a resolution duly adopted at a meeting of the _____________________________________________________________, which was duly convened and held on the date stated thereon, and that said document has not been amended, modified, repealed or rescinded since its date of adoption and is in full force and effect as of the date hereof.

ATTEST: ____________________
Signature of Attesting Officer
________________________________________

14.7 Attachment 1
The City of Santa Cruz commits to using 100% of the Program Funds and Matching Funds to develop Rental Housing affordable and restricted to households with average incomes of 60% AMI or less within the City of Santa Cruz. The funds will be used towards the 136 River Street Affordable Housing Project, which is located in the City of Santa Cruz.

14.8 CITY OF SANTA CRUZ

AFFORDABLE HOUSING TRUST FUND
Administrative Guidelines
Department of Economic Development & Housing
Housing & Community Development Division
As adopted by the City Council on October 28, 2003 by Resolution No. NS- 26,410 As revised by City Council on April 25, 2006 (adding Section 5.4.i) by Resolution No. NS-27,214 Minor Revisions on May 2, 2014 updating organization change to Economic Development.

Revised July 28, 2020 as directed by the City Council on June 23, 2020 and for consistency with State LHTF Program application.

14.9 City of Santa Cruz Affordable Housing Trust Fund Guidelines

TABLE OF CONTENTS

CHAPTER
PAGE
CHAPTER 1 - STATEMENT OF PURPOSE 1
CHAPTER 2 - DEFINITIONS 1
CHAPTER 3 - AFFORDABLE HOUSING TRUST FUND ESTABLISHED 2 CHAPTER 4 - MANAGEMENT 2
CHAPTER 5 DISTRIBUTION & USE OF AFFORDABLE HOUSING TRUST FUND ASSETS 3 ATTACHMENT I: AHTF LOAN AND UNDERWRITING GUIDELINES AND PROCEDURES

14.10 City of Santa Cruz Affordable Housing Trust Fund Guidelines Page 1 City Of Santa Cruz Affordable Housing Trust Fund
Chapter 1: Statement of Purpose
The purpose of the City of Santa Cruz Affordable Housing Trust Fund, (AHTF), is to assist in the creation and preservation of affordable housing in the City of Santa Cruz for the benefit of low and moderate-income households.

Chapter 2: Definitions

1. “Area median income” or “AMI” is established for metropolitan areas or non-metropolitan counties by the U.S. Department of Housing and Urban Development (HUD), pursuant to 42 U. S. C. Chapter 1437 et seq., to establish local income classification levels. These classifications are also used in California housing law with respect to income eligibility limits.

2. “Affordable Housing” for purposes of these Guidelines shall mean rental housing that is affordable to low and/or very-low income households and for sale housing that is affordable to moderate, low and/or very-low income households.

3. “Extremely low income household” shall mean a household having an income not exceeding thirty (30) percent of AMI adjusted for household size.

4. “Very low income household” shall mean a household having an income not exceeding fifty (50) percent of AMI adjusted for household size.

5. “Low income household” shall mean a household having an income not exceeding eighty (80) percent of the AMI adjusted for household size.

6. “Moderate income household” shall mean a household having an income not exceeding one hundred twenty (120) percent of the AMI adjusted for household size.

7. “In-Lieu Fees” are fees paid by a market rate developer in lieu of building affordable units within the development as a means of satisfying the City’s inclusionary housing requirement as specified under Chapter 24.16.030 of the City of Santa Cruz Municipal Code (Municipal Code). Under these Guidelines, the In-Lieu Fees will henceforth be dedicated to the AHTF as stipulated below.

8. “Permanent Local Housing Allocation (PLHA) Program” is a State program established by the Building AHTFs and Jobs Act of 2017. Funding is provided by a $75 recording fee on real estate documents with 70% of these fees being set aside for PLHA programs.

Jurisdiction funding amounts are annually defined by the State Department of Housing and Community Development (HCD), who administers the program. Jurisdictions must annually apply for these allocated PLHA funds.

14.11 City of Santa Cruz Affordable Housing Trust Fund Guidelines Page 2 Chapter 3: Housing Trust Fund Established.

1. By Resolution No. NS-26,410, the City Council established a trust fund for a special revenue account under the name of the “Santa Cruz Affordable Housing Trust Fund”.

2. Accumulated and future Moderate, Low or Very-Low Income Housing Fund In-Lieu Fee dedications under Chapter 24.16.030(b) of the Municipal Code shall become AHTF property and shall be deposited directly into the AHTF. In-lieu fee dedications are allowed under Chapter 24.16.030 of the Municipal Code to be made by a market rate developer, upon application by the developer, to meet its inclusionary housing requirement. Accordingly, Inlieu fee dedications collected under Chapter 24.16.030 of the Municipal Code shall be deposited into the AHTF account.

3. Accumulated and future Permanent Local Housing Allocation (PLHA) Program funds shall become AHTF property and shall be deposited directly into the AHTF.

4. The AHTF may accept donations from individuals or organizations other than the City of Santa Cruz. Such donations may be designated for a specific project or purpose.

5. All moneys remaining in the AHTF at the end of any fiscal year, whether or not expended by the City, remain AHTF property.

Chapter 4: Management

1. The Housing Division Manager under the Department of Economic Development shall serve as the Manager of the Affordable Housing Trust Fund. The responsibilities of the Manager, subject to direction of the City Council, shall include:
a. Maintaining all records of the AHTF.
b. Assisting prospective applicants requesting AHTF support in the preparation and presentation of their applications.
c. Monitoring the use of monies distributed to successful applicants for AHTF support to assure ongoing compliance with the purposes of the AHTF and the conditions under which these monies were granted or loaned.
d. Reporting annually to the City Council regarding the operation and activity of the AHTF.

2. The Director of the Department of Finance, or designee, in coordination with the Manager of the Affordable Housing Trust Fund shall be responsible for the following:
a. Disbursing and collecting AHTF monies.
b. Maintaining and managing a separate account or accounts for AHTF monies. c. Maintaining financial records for the AHTF.

14.12 City of Santa Cruz Affordable Housing Trust Fund Guidelines Page 3 Chapter 5: Distribution and Use of Housing Trust Fund Assets

1. Distributions may be made to individuals and/or private or public, profit or non-for-profit entities.

2. The types of investments the fund may make include: gifts, grants, loan guarantees, letters of credit or other forms of credit enhancement, or other disbursements deemed necessary and appropriate to fulfill the purposes of the AHTF.
a. AHTF funds used to provide construction loans and/or deferred payment permanent financing loans shall be at simple interest rates of no higher than 3 percent per annum, for payment of predevelopment costs, acquisition, construction, or rehabilitation of Eligible Projects.

3. Organizations or individuals bestowing a gift or grant to the AHTF may specify how such a gift or grant may be used. If the gift or grant has not been used for such purpose within a reasonable amount of time, or a time period specified as a condition of the gift or grant, the gift or grant shall be returned upon the request of the donor.

4. Types of projects in which the AHTF shall invest include:
a. Creation of new affordable units.
b. Preservation of existing affordable housing.
c. Assistance with multi-family rehabilitation programs. d. Conversion of market rate units to affordable housing units. e. Construction, conversion, or rehabilitation of accessory dwelling units (ADUs), or junior ADUs as defined in the Municipal Code.
f. Acquisition and rehabilitation of potential limited equity housing cooperatives. g. First time Homebuyer loans.
h. Predevelopment loans/grants to assist non-profit and for-profit developers with project feasibility studies, site acquisition and preliminary design studies for potential affordable housing projects.
i. Administrative costs for affordable housing programs and projects for up to 5% of the AHTF.

5. Priority in all disbursements shall be given first to housing projects that guarantee the perpetual affordability of such housing and, second, to housing projects that guarantee a term of affordability of at least 55 years together with eventual recapture of the AHTF investment.

6. The following categories identify income groups that the AHTF will serve. The percentages shown are minimum target amounts or maximum allowed amounts of funding that will be expended in each category. If eligible projects are not found for a particular category within one year after funds have been deposited, funds targeted for that category may be moved into the contingency category to be allocated to other areas. Target set aside amounts and other restrictions are as follows:

14.13 City of Santa Cruz Affordable Housing Trust Fund Guidelines Page 4 a. Extremely low-income (at or below 30% of AMI): Target 30% of AHTF funds. b. Lower-income (at or below 80% of AMI): Up to 70% of AHTF funds. c. Moderate-income (80% to 120% of AMI): Maximum of 20% of AHTF funds. d. Contingency: Target 15% of AHTF funds. These funds can be allocated to provide for any of the identified categories above.

7. Projects will be evaluated with respect to criteria that are consistent with City goals and policies. In addition, projects that provide the following will be viewed favorably and when ranked against other projects, shall be given additional merit points:
a. Projects that provide the greatest benefit per dollar of funds spent. b. Projects that demonstrate higher equity in the project and/or a lower loan to value ratio. c. Rental projects that have other funding sources identified and committed. d. Rental projects which benefit the highest percentage of low and moderate income persons, provide the lowest rents, include a greater percentage of affordable units, or will maintain longer periods of affordability.
e. Rental projects that use program funds as a match or leveraging tool to stimulate the use of conventional and below-market resources, including tax credits, state and federal funding programs, and/or other funding sources.
f. Rental projects proposed by an applicant with a successful history of project development and/or property management, as appropriate.

8. When appropriate, the AHTF shall use existing City guidelines for homebuyer, homeowner Rehabilitation, or Accessory Dwelling Unit Programs. Guidelines providing for loans and/or grants for the development of multi-unit rental projects shall be as follows:
a. A Nonprofit Community or Government Organization receiving an AHTF grant and/or loan must be a legally established tax-exempt nonprofit community organization recognized by the Internal Revenue Service and the Franchise Tax Board, a public agency, or other governmental agency.
b. Permanent financing shall be secured by a deed of trust against the land or a security agreement against physical improvements. A promissory note may be used for predevelopment costs for up to 15% of the estimated project cost. c. There must be at least 10% equity in the property after completion of a project. This value may be established by AHTF staff and/or an appraiser. Exceptions may be approved by the City Council.

9. Loan and Underwriting Guidelines for the AHTF are provided as an attachment to these Program Guidelines:

14.14 City of Santa Cruz AHTF Loan Underwriting Guidelines Attachment I Page 1

ATTACHMENT I
AHTF Loan and Underwriting Guidelines and Procedures
For purposes of the AHTF Program, underwriting involves the analysis of project assumptions and risks to determine if the public investment is reasonable and the project can be expected to meet all applicable program requirements. The following are core components of the City’s underwriting and subsidy layering review of an AHTF project. Required actions/procedures are noted at the end of each section.

1. Sources and Uses Statement and Pro Forma - An examination of the sources and uses of funds for the proposed project and a determination that all project costs are reasonable. Before committing AHTF funds the City shall evaluate a proposed project to ensure that funds are invested such that the project is likely to succeed over time. City shall assess all of the assistance that has been, or is expected to be, made available to that project, and take into account all the factors relevant to project feasibility, which may include, but are not limited to total development costs and available funds; impacts of restrictions from AHTF and/or other sources of funding such as eligible costs, maximum subsidy limits, cost allocation, and rent/utility allowance limitations; rates of return to owners, developers, sponsors, or investors; and the long-term needs of rental projects and tenants. The following elements shall be reviewed and analyzed in forecasting project success:
a. Sources and Uses Statement – the sources and uses document shall include the following:
i. Sources - all sources, both private and public, of funds with dollar amounts and timing of availability for each source must be identified.

DOCUMENTATION: The following documentation is required in support of the sources and uses statement:
 Commitment letters with all terms and conditions for all mortgages, grants, bridge (interim) loans and investment tax credits.

Acceptable documentation of firm financing include award letters, offer letters, final term sheets or commitments which are conditioned upon receipt of AHTF funds. For projects with low income housing tax credits (“LIHTC”) a reservation from the credit allocator and a good faith offer of equity investment from an investor is required.
 If the developer is a partnership or limited liability corporation, a copy of the partnership agreement or operating agreement which will indicate the cash contributions by the partners or members.
 If equity is committed by the developer or owner, evidence of available equity funds.

ACTION TO BE TAKEN: City shall determine whether funding sources are adequate and timely in their availability to cover costs at all phases of the project.

14.15 City of Santa Cruz AHTF Loan Underwriting Guidelines Attachment I Page 2 ii. Uses - All uses of funds (acquisition costs, site preparation and infrastructure costs, rehabilitation/or construction costs, financing costs, professional fees, developer fees and other soft costs) associated with the project and their costs. All costs must be necessary and reasonable.

DOCUMENTATION: The following documentation shall be required:
 Acquisition documentation such as purchase agreement, option or closing statement and appraisal or other documentation of value.
 Construction cost estimate, construction contract, or preliminary bids.  Contracts, quotes or other agreements substantiating key professional costs and the basis for estimating other soft costs and working capital items, including capitalized reserves.
 Agreements governing the various reserves which are capitalized at closing (to verify that the reserves cannot be withdrawn later as fees or distributions).  A third-party appraisal to substantiate the value of the land and the value of the property after rehabilitation or the structure being built.  If low income housing tax credits are utilized, documentation on the syndication costs (legal, accounting, tax opinion, etc.) from the organization/individual who will syndicate and sell the offering to ensure that the project can support the fees necessary to syndicate/fund the project.
 Project schedule.

ACTION TO BE TAKEN: City shall determine that the all of the proposed costs for the project are necessary and reasonable by considering costs of comparable projects in the same geographical area and costs published by recognized industry cost index services.
b. Operating Pro Forma
DOCUMENTATION: Developer shall submit an operating pro forma (project income and expense statement) for the length of the Affordability Period pertaining to the project unless another State or Federal funding source specifies an alternate length.

ACTION TO BE TAKEN: City shall evaluate the pro forma for the following:
 Reasonableness of the financial assumptions of the project to establish minimum total per unit operating costs.
 Sufficiency of specific line item and total operating costs.  Determination that long-term operating projections over the Affordability Period are based on reasonable assumptions.
 Demonstration that project can cover expenses and debt service throughout the affordability period.

14.16 City of Santa Cruz AHTF Loan Underwriting Guidelines Attachment I Page 3  Ensuring that cash flow projections are realistic in light of economic conditions.  Determination that long-term operating projections are based on reasonable assumptions about how revenues and operating costs are expected to change over time.
 Determination that long-term operating projections over the affordability period are based on reasonable assumptions.
 Demonstration that project can cover expenses and debt service throughout the affordability period. The first year Debt Service Coverage Ratio shall not be:
(a) less than 1.10:1 or
(b) greater than 1.20:1, except where a higher first-year ratio is necessary to:
(i) project first-year cash flow after debt service and required reserve deposits equal to or less than 12 percent of operating expenses; (ii) meet the requirements of subsection (i);
(iii)meet CalHFA’s standard underwriting requirements or those of a direct federal lending program; or
(iv)project a positive cash flow over 20 years, using the assumptions specified in subsection (i).
 With AHTF review and approval, these requirements may be modified on a case by case basis for Projects receiving operating or rental subsidies structured to allow for breakeven operation, or for operation at a level of cash flow that differs from that resulting from application of these requirements in order to meet the cash flow obligations in this subsection.
 Ensuring that cash flow projections are realistic in light of economic conditions.  Determination that long-term operating projections are based on reasonable assumptions about how revenues and operating costs are expected to change over time.
 That non-residential revenue from fees/late charges, commercial income, interest, laundry/vending are projected conservatively.
 That vacancy projections reflect local market conditions and account for physical vacancies and collections loss. Residential vacancy rates shall be assumed to be 5%, unless a different figure is required by another funding source (including TCAC) or supported by compelling market evidence.
 Vacancy rates for Commercial Space shall be assumed to be 50%, except the City may use the vacancy loss assumption of the Project’s senior lender or equity investor under either of the following circumstances:
(a) where the commercial income is guaranteed by the Sponsor through a long-term master lease and the amount of the Sponsor’s annual master lease payment is both:

14.17 City of Santa Cruz AHTF Loan Underwriting Guidelines Attachment I Page 4 (i) less than one percent of the Sponsor’s cash and cash equivalent current assets; and
(ii) less than or equal to the projected commercial income, as evidenced by a market study or appraisal commissioned by the first lien lender or equity investor, and reflected in the final pro forma approved by the first lien lender or equity investor; or
(b) where the Commercial Space has been leased to a national or regional firm widely recognized by the general public, and the term of the lease extends at least five years past the projected date of construction completion.  Balloon payments are not allowed on senior debt, except where the City’s affordability covenant or regulatory agreement (collectively “Use Restriction”) is recorded in a position that is senior to the debt with a balloon payment. Any such Use Restriction may include provisions that, upon foreclosure of the debt instrument securing such debt, allow the Use Restriction to be amended to delete any portion of the Use Restriction that is not necessary to ensure the continued restriction of the project to the same affordability level for all occupants, rents or amounts charged pursuant thereto, reporting requirements not related to tenant occupancy and affordability, and level of operations and maintenance (collectively, the “Affordability Provisions”). The Sponsor may also include an executory provision in the original Use Restriction that immediately limits the effect of the Use Restriction to only those set forth in the Affordability Provisions. Furthermore, in the event project-based rental assistance is terminated, the Affordability Provisions may include a provision allowing rents to increase to the minimum extent required for fiscal integrity, as defined in Section 7301(g), but not in any event shall rents exceed 30% of 50% of area median income, as such area median income is determined by the U. S. Department of Housing and Urban Development, adjusted by bedroom count by TCAC pursuant to 26 U.S. Code Section 42(g)(2)(C) with the annually published TCAC Income Limits and Maximum Rents posted on the TCAC website. Balloon payments are allowed on junior debt during the term of the Program loan only where the City determines that the balloon payment will not jeopardize project feasibility.  That the rate of projected growth for rental income and other revenues are appropriate and that in projects with deeply targeted rents, lower than average rate of revenue increases are used for comparison when possible.  Variable interest rate debt shall be underwritten at the ceiling interest rate, unless the City determines that using a lower interest rate assumption will not jeopardize project feasibility.
 The Project must demonstrate a positive cash flow for 15 years, using income and expenses increase rate assumptions specified in California Code of Regulations, Title 4, Section 10327. If projected Project income includes rental assistance or operating subsidy payments under a renewable contract, the City may assume that this contract will be renewed, where the renewal of the rental assistance or operating subsidy is likely.

14.18 City of Santa Cruz AHTF Loan Underwriting Guidelines Attachment I Page 5  Where the City is providing construction-period financing, the minimum budgeted construction contingency shall be 5 percent of construction costs for new construction projects and 10 percent of construction costs for rehabilitation and conversion projects.
 Local public agency loans shall not have required payments exceeding 0.5% per year of the original principal loan amount.

ACTION TO BE TAKEN: City shall determine that Projected Income assumptions as provided in the pro forma are reasonable based on the following that:
 Non-residential revenue from fees/late charges, commercial income, interest, laundry/vending are projected conservatively.
 Vacancy projections reflect local market conditions and account for physical vacancies and collections loss.
 The rate of projected growth for rental income and other revenues are appropriate.  For projects with deeply targeted rents, lower than average rate of revenue increases are used.
 Net operating income is sufficient to cover debt service obligations and mandatory replacement reserve funding.
 Reasonable but not excessive cash flow is generated throughout the affordability period.
 The rate of annual increase in project income is reasonable.

ACTION TO BE TAKEN: City shall determine that Projected Expenses are reasonable as provided in the pro forma submittals, including:
 Operating costs given the scope and size of the project.  Management fees and other fees to the owner.
 Adequate replacement reserve deposits: The initial deposit to the operating reserve shall be funded from development funding sources in an amount determined by the City and other funding sources such as State Housing & Community Development (HCD), which shall not be less than the total of the following: four months of projected Operating Expenses (excluding the cost of on-site Supportive Services coordination), four months of required replacement reserve deposits, and four months of non-contingent debt service. For projects with tax credits, the requirement shall be three months of these items. In setting the initial funding requirement, the City and other funding sources such as HCD shall consider factors including, but not limited to the projected level of Project cash flow, the adequacy of the operating budget, Project location, local market characteristics, the number of sites, and Project design..

14.19 City of Santa Cruz AHTF Loan Underwriting Guidelines Attachment I Page 6 The replacement reserve shall be funded from Operating Income, development sources or a combination of Operating Income and development sources. For new construction or conversion Projects, the initial amount of annual deposits to the replacement reserve account shall be equal to at least the lesser of 0.6% of estimated construction costs associated with structures in the Project, excluding construction contingency and general contractor profit, overhead and general requirements, or $500 per unit. However, the City may approve a different amount based on the results of a third-party reserve analysis, which it may require, or other reliable indicators of the need for replacement reserve funds over the initial 20 years of operation, or, in the case of transactions involving restructuring of existing City loans, 20 years of operations after the restructuring. For rehabilitation Projects, the initial amount of annual deposits to the replacement reserve account shall be determined by the City based on the results of a third-party physical needs assessment or other reliable indicators of the need for replacement reserve funds over the initial 20 years of operation. In its initial underwriting, in the absence of an approved physical needs assessment or other reliable indicators of the need for replacement reserve funds, the City may assume that the initial amount of annual deposits shall be $500 per unit.

2. Market Assessment
DOCUMENTATION: Developer shall provide data that supports unit absorption rates used in the Operating Pro Forma. Data submitted to City in support of the project market assessment shall be no more than four months old. In the event that AHTF funds are not committed to the project within that timeframe, updated data must be submitted to the City for review.

ACTION TO BE TAKEN: The City shall assess the current market demand in the area to confirm the need for the project and that the type and number of units in the project. Given the housing shortage in the City, it is assumed that there will be high demand for housing in general. The goal is encourage the projects that reflect current community needs for size, price, and other factors affecting the projects marketability.  Assess the market for the project and determine if there is sufficient demand to sell or rent the housing units within one year of construction completion.  Identify recent real estate trends that indicate demand for types and sizes of units.  Estimate the absorption period by determining how many units can be successfully leased or sold each month and how long it will take to achieve initial occupancy/sale of the AHTF units and stabilized occupancy for the project as a whole.

3. Developer Capacity Assessment: There are two elements of underwriting analysis related to the developer: 1) the experience and the capacity of the developer (including the staff and project team) to implement the project and 2) the fiscal soundness of the developer to meet its financial obligations and risks of the project. The City shall use the following procedures shall

14.20 City of Santa Cruz AHTF Loan Underwriting Guidelines Attachment I Page 7 determine what constitutes acceptable experience and financial capacity of the developer based on the size, scope, and complexity of the project.
a. Experience
DOCUMENTATION: The Developer is required to provide information on their experience and provide references in the funding application including:
 Corporate or organizational experience of the developer.  Experience of the staff assigned to the project and overall quality of the development team.
 Prior experience of the developer’s team members compared to their roles in the proposed project.
 Skills and capacity including property management, asset management, service provision (as applicable), and financing.

ACTION TO BE TAKEN: The City shall consider prior experience and the current capacity of the developer and determine if the developer has the technical and managerial experience, knowledge, and skills to successfully complete the development. b. Developer Financial Capacity – The following elements shall be analyzed to determine developer financial capacity:

ACTION TO BE TAKEN: The City will review the following information taken from the developer’s operating pro forma and information provided in the funding application (audit, references, prior projects) to determine that the developer’s experience and financial capacity are adequate to implement the project and meet financial obligations and risks of the project. The following information will be analyzed for this purpose:
 Financial management systems and practices.
 Sufficient financial resources to carry the project to completion.  Financial statements and audits to determine the developer’s net worth, portfolio risk, pre-development funding, and liquidity.

4. Developer Profit and Return –
ACTION TO BE TAKEN: The City shall require that any profits or returns on the owner’s or developer’s investment are not excessive. The City shall conduct an analysis that reviews profit expected to flow to the developer as operating cash flow from rental projects and any other professional fees being paid to the developer or related entities. The analysis shall focus on the following areas to determine that developer fees, cash flow, equity appreciation, and profit associated with the project are reasonable:
a. Developer Fee – For LIHTC projects, the developer fee may not exceed the limits established by the awarding state or federal agency. The developer fees must reflect the local market and shall be reviewed with respect to the following:

14.21 City of Santa Cruz AHTF Loan Underwriting Guidelines Attachment I Page 8 i. The scope and complexity of the project.
ii. The size of the project.
iii. The relative risk the developer is taking.
iv. The costs a developer will incur from the fee as compared to those being charged as project costs.
v. The fees that are regularly and customarily allowed in similar programs and projects. vi. Other fees the project is generating for the developer and its related entities. b. Cash-Flow – Reasonableness of net cash flow assumptions and distribution of same to developer/owner and lenders.
c. Equity Appreciation – Reasonableness of projected equity position over time. d. Identity of Interest Roles
i. If the developer owns a construction company that will be working on the project, the City shall determine that the profit and overhead of the contractor is reasonable. ii. If the owner of a rental property assisted with AHTF funds also operates a property management company contracted to service the property, the City shall determine that the management fees are reasonable.
e. Profit From Rental Operations – The City shall conduct an evaluation of the cash flow return on the investment in order to determine if the return is reasonable. The following types of cash flow analysis will be used by the City dependent on project type:
i. Cash on cash rate of return.
ii. Internal rate of return.

14.22 City Council

AGENDA REPORT
DATE: 08/22/2024
AGENDA OF: 09/10/2024
DEPARTMENT: Economic Development and Housing
SUBJECT: Permanent Outdoor Dining and Curb Café Program – Waiver of Deferred Pandemic Era Fees and Related Authorizations (EDH)
RECOMMENDATION: Motion to approve a waiver of Permanent Outdoor Expansion Area and Curb Café fees between July 2020-December 2023 and authorize the City Manager to execute any agreements, amendments, or documents necessary to implement said waiver, in a form approved by the City Attorney.

BACKGROUND: In response to the State’s business restrictions and significant economic impacts from the COVID-19 pandemic, the City Manager, acting in his capacity as the Emergency Services Director, issued two related Executive Orders to establish the Temporary Outdoor Expansion Program (TOEP) to provide no-cost permits for businesses to expand commercial activity in the public right-of-way and other outdoor spaces (Executive Order 2020- 11 executed on June 4, 2020 and Executive Order 2020-15, issued on July 30, 2020). On December 8, 2020, the City Council adopted Emergency Ordinance 2020-27, incorporating the earlier Executive Orders allowing for the outdoor expansion of commercial activity in the public right-of-way and other outdoor spaces and extending the timeframe to October 1, 2021. This timeframe was further extended to December 31, 2021, and there have been subsequent extensions to this expiration date. At the October 25, 2022, City Council meeting, the City Council approved an extension of the temporary permits for public property through October 31, 2023.

In implementing these policies, staff rapidly deployed over 100 temporary outdoor expansion areas throughout the City to help local businesses weather the COVID-19 pandemic. Following the success of these programs, staff has worked under City Council direction to develop permanent modifications to the Municipal Code to support ongoing outdoor dining on both public and private property. This effort also includes a new parklet ordinance that has already led to the creation of 17 new parklets (outdoor seating areas in public parking spaces).

Prior to the emergency measures and recent ordinance changes, over 20 local businesses were already participating in the City’s Outdoor Café Extension Area and Curb Extension Area programs. These businesses had secured the necessary zoning approvals, license agreements with the City, and in many cases constructed improvements supporting their outdoor dining use in the public right-of-way.

15.1 DISCUSSION: Outdoor dining, through both the temporary and permanent programs, has proven vital to protecting public health, promoting local economic recovery, preserving employment, and sustaining scores of locally owned businesses throughout the COVID-19 pandemic. Their combined success also helped Santa Cruz County rebound to the largest increase in tourism spending statewide, reaching $1.4 billion or 35% above pre-pandemic levels in 2023, according to Visit California. Specifically, their Economic Impact of Travel in California 2014-2023 Report estimates more than $439 million spent in food service with 6,160 hospitality workers countywide. The City’s TOEP programs helped sustain many of the businesses and employees who contributed to this success.

However, early adoption of the TOEP faced headwinds as many businesses and customers were uncertain about dining in streets, parking lots, and gathering; even when socially distanced outside. To maximize the appeal of the TOEP, the City provided basic safety fencing, traffic barriers, and in some early cases, like Cathcart Street and the Wharf, provided additional site logistics and decorative features to increase the appeal of the TOEP. Most importantly for all businesses, there were no permit fees or license fees for participating in the TOEP; as the City aimed to eliminate barriers to entry and support businesses during the recovery period.

In contrast, businesses already participating in the City’s permanent Outdoor Expansion Area and Curb Café programs had existing outdoor dining spaces already approved and in place. As part of their license agreements with the City, these businesses were obligated to pay fees for use of public property; a condition which TOEP participants were not subject to during the same period. Recognizing this inequity, the permanent program fees, which would have been due from July 2020 through December 2023, have been deferred pending City Council consideration.

Staff recommend waiving the fees for consistency and fairness between the TOEP and permanent outdoor dining program participants. The proposed waiver would span the billing period from January 1, 2020 through December 31, 2023, which includes all applicable billing cycles during the TOEP program when the City offered no-cost permits to all businesses citywide for outdoor expansion areas as well as a two month grace period following the expiration of the TOEP program on October 31, 2023 for public property permits to re-align with the typical January 1 and July 1 billing cycles noted in the City’s license agreements for café extension areas. Approval of the staff recommendation would also authorize the City Manager to negotiate and execute any necessary agreements, amendments, or documents necessary to implement the waiver.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: None.

HEALTH IN ALL POLICIES (HiAP): Approval of the waiver is consistent with the HiAP framework, especially the pillar of equity. TOEP participants were not required to pay permit fees or remit license fees that would normally be due for a permanent Café Extension Area or Curb Extension Area but received a similar benefit from use of public space. Waiver of the fees for pre-existing outdoor dining participants from January 1, 2020, through December 31, 2023 would be equitable.

Additionally, promoting locally owned businesses helps support social and community bonds, improves community economic resilience, reduces commute times and pollution from owner operators, and generally aligns business activities with local culture, organizations, and initiatives. While these factors may not in themselves influence public health, they have been

15.2 shown to have a positive impact on the social determinants of health and support social mobility, as well as overall well-being and community resilience.

FISCAL IMPACT: Approval of the recommendation would forgive approximately $119,000 in outstanding deferred license fees owed to the City for use of public right-of-way for approximately 22 businesses during the pandemic period. These funds typically accrue to the Kiosk Fund (123) and support public services downtown, like cleaning and waste removal, maintenance, repairs, and upgrades of kiosk or expansion area infrastructure. The City was able to maintain these services during the pandemic until billing resumed in January 2024 through use of a modest pre-pandemic fund balance.

Prepared By:

David McCormic
Asset Manager
Submitted By:

Bonnie Lipscomb
Director of Economic
Development and Housing
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

15.3 City Council

AGENDA REPORT
DATE: 08/21/2024
AGENDA OF: 09/10/2024
DEPARTMENT: Parks and Recreation
SUBJECT: Neary Lagoon Floating Walkway Decking and Railing Rehabilitation (m409668 - Neary Lagoon Park Rehabilitation - Maintenance): Notice of Completion (PR)
RECOMMENDATION: Motion to accept the work of Cen-Con, Inc. (Santa Cruz, CA) as completed per plans and specifications and authorize the filing of the Notice of Completion for the Neary Lagoon Floating Walkway Project.

BACKGROUND: On June 28,2022, the City Council awarded a contract to Cen-Con, Inc. for the Decking and Railing Rehabilitation on the Floating Walkway at Neary Lagoon and authorized the City Manager to execute an agreement in the amount of $407,257.40.

The City received a $200,000 matching grant award for the project through the Habitat Conservation Fund (HCF). Administered by the California State Parks and Recreation Office of Grants and Local Services (OGALS), the HCF allocates approximately $2 million each year to fund a variety of projects, including nature interpretation programs, protection of various plant and animal species, and acquisition and development of wildlife corridors and trails. Voters approved the HCF with Proposition 117 in 1990 to create a permanent source of funding for conservation of lands and waters in California.

DISCUSSION: This project included the removal of 440 linear feet of the Alaskan yellow cedar decking and railing of the floating walkway at Neary Lagoon. Upon removal of the cedar decking, the project installed an in-kind durable, composite dock and rail material and reinstalled benches and new interpretive signage. Construction occurred from August through October 2022. New interpretive signage was developed in partnership with the Santa Cruz Museum of Natural History. Concepts and initial mock-ups were finalized in Spring 2024. Signs were fabricated and delivered to the site for installation in August 2024. The project has been inspected by the Parks and Recreation Department and found to be constructed in accordance with the agreement.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: A Notice of Exemption was filed with the Santa Cruz County Clerk on February 16, 2022. The project is Categorically Exempt (15301 and 15302). The project is exempt from CEQA under Section 15301, Existing Facilities (Class 1 Exemption) as the project involves the repair, maintenance and minor alteration of existing public structures and facilities and would involve a negligible expansion of use beyond what currently exists. The Project is also exempt from

16.1 CEQA under Section 15302, Replacement or Reconstruction (Class 2 Exemption). The Class 2 exemption involves the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced. The project meets the criteria for the Class 2 exemption because the railing, decking, signs and benches that were removed were replaced above water on the existing floating substructure.

HEALTH IN ALL POLICIES (HiAP): The project enhances equity by improving access and improves public health by providing support facilities which encourage exercising, relaxing, and engaging in outdoor activities.

FISCAL IMPACT: The total construction cost was $378,424.40. The total cost for interpretive sign design and fabrication was $41,100.10. The project costs were funded through the HCF Grant Award, and a local match provided by the Public Works Wastewater Fund (721).

Prepared By:

Lindsay Bass
Principal Management
Analyst
Submitted By:

Tony Elliot
Director of Parks and
Recreation
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. NOTICE OF COMPLETION_NEARY LAGOON.DOCX

16.2 Notice of Completion (Revised Oct 2021)
(Space above for Recorder’s use only)
This instrument is being recorded for the benefit of the City of Santa Cruz.

No recording fee is required pursuant to Government Code § 27383.

NOTICE OF COMPLETION
(CA Civil Code Sections 8102 and 9204)
NOTICE IS HEREBY GIVEN THAT:

The undersigned is an authorized representative of the owner of the interest or estate stated below.

1. The Owner’s Name and Address. The Project owner is the City of Santa Cruz, a municipal corporation (the “City”). The City’s mailing address is 809 Center Street, Santa Cruz, California 95060. The City of Santa Cruz has the following interest in the subject Property described below: City Property

2. Project Title and Number. The full name of the work of improvement/public works project (the “Project”) which is the subject of this Notice of Completion is: Decking and Railing Rehabilitation on the Floating Walkway at Neary Lagoon (m409668).

3. Nature of Work Performed on the Property or Materials Furnished for the City. The Project consisted of work described as: the removal of 440 linear feet of the Alaskan yellow cedar decking and railing of the floating walkway at Neary Lagoon. Upon removal of the cedar decking, the project installed an inkind durable, composite dock and rail material and reinstalled benches.

4. The general site location description or address (the “Property”) of the public improvement is located at: 110 California St, Santa Cruz, CA 95060 (APN: 004-331-05)

5. Name and Address of Contractor. The Contractor on the Project is: Cen-Con, Inc. 335 Swift St., Santa Cruz, CA 95060

6. Date of Completion. The Project on the Property was completed on: October 22, 2022

7. The filing of this Notice of Completion was authorized by the Santa Cruz City Council Minute Order on Tuesday, September 10, 2024
DATE: September 10, 2024
Tony Elliot
Parks & Recreation Director, City of Santa Cruz
RECORDED AT THE REQUEST OF:

City of Santa Cruz, Parks and Recreation
Attn: Lindsay Bass
WHEN RECORDED MAIL TO:

City Clerk’s Department
809 Center Street, Room 8
Santa Cruz, CA 95060

16.3 City Council

AGENDA REPORT
DATE: 08/22/2024
AGENDA OF: 09/10/2024
DEPARTMENT: Public Works
SUBJECT: 2024 Laurel Street Surface Seal Project (c400809) (PW) RECOMMENDATION: Motion to reject all bids for the 2024 Laurel Street Surface Seal Project (c400809), authorize staff to re-advertise the project for bids proposals, and to authorize the City Manager to execute an agreement in a form approved by the City Attorney. The Director of Public Works is authorized to execute amendments within the approved project budget.

BACKGROUND: Laurel Street is a minor arterial roadway that connects the Westside and Seabright neighborhoods to downtown and is an important route for pedestrians, bicyclists, transit, and automobiles through the City of Santa Cruz. Over the last few years, the roadway has been impacted by the construction of the Pacific-Front mixed-used development project at 100 Laurel Street and the Pure Water Soquel underground pipeline project between San Lorenzo Boulevard and California Street. With that construction coming to an end, the Public Works Department initiated this effort to knit together the roadway rehabilitation required by both projects.

At its June 25, 2024, meeting, City Council authorized staff to advertise for bids and authorize the Public Works Director to execute change orders within the approved project budget. The project was advertised for bids on July 2, 2024.

The project includes applying a surface seal and new pavement markings on Laurel Street from Pacific Avenue to 150 feet west of California Street. Additionally, Myrtle Street will be restriped from Maple Street to approximately 300 feet south of Laurel Street to increase the parking supply, as directed at a prior Council meeting. This project will involve a variety of road treatments, including deep lift repair of sections with failed base materials, placement of chip seals with rubberized asphalt binder to act as a Stress-Absorbing Membrane Interlayer (SAMI), and placement of Micro-surfacing. This treatment is a cost-effective way to preserve the roadway's pavement condition.

DISCUSSION: On July 30, 2024, City staff received one bid for the project from a local contractor.

Bids for the project were received as follows:

VSS International, Inc. $1,022,000.00
Engineer’s Estimate: $826,884.85

17.1 Staff recommends rejecting all bids received on July 30, 2024, for the 2024 Laurel Street Surface Seal Project (c400809) due to a scheduling conflict with the ongoing Pure Water Soquel project.

The Department intends to readvertise the project as soon as we receive a hard date to complete the Pure Water Soquel Project from the Soquel Creek Water District. This will create a delay of 12 months in starting project construction, pushing it to the summer of 2025.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: Not applicable
HEALTH IN ALL POLICIES (HiAP): This project promotes the following Health in All Policies core conditions: Safe and Just Community and Community Connectedness.

FISCAL IMPACT: The project will be funded from Measure H and Measure D in the current FY 2025 Capital Investment Program (CIP) through the City Arterial and Collector Street Reconstruction and Overlay (c400809) fund (Fund 317). The Transportation Development Act (TDA) will also contribute $75,000 to the project. The Pure Water Soquel Project will also contribute its share of the striping and resurfacing effort planned for Laurel Street. The total project cost is expected to be $850,000. There is no impact to the General Fund.

Prepared By:

Miguel Lizarraga
Associate Professional
Engineer
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

17.2 City Council

AGENDA REPORT
DATE: 08/22/2024
AGENDA OF: 09/10/2024
DEPARTMENT: Public Works
SUBJECT: Contract Amendment 2 with BCycle, LLC for Santa Cruz County Regional Bike Share Program (PW)
RECOMMENDATION: Motion to authorize the City Manager to execute the Second Amendment to the Professional Service Agreement with BCycle, LLC for Santa Cruz County Regional Bike Share Program in a form acceptable to the City Attorney.

BACKGROUND: In May 2018, the City of Santa Cruz officially launched the first public bike share system in Santa Cruz County. This partnership with JUMP operated for two years, at which time JUMP merged with Lime and the program ended in the City of Santa Cruz.

Subsequently, the County of Santa Cruz, Cities of Santa Cruz, Capitola, and Watsonville, University of California Santa Cruz (UCSC), and Cabrillo College worked collaboratively to enter into contract with BCycle, LLC to operate a regional bike share system in Santa Cruz County.

The City Council (Council) approved moving forward with a new regional bike share program in June 2021. In January 2023, the City of Santa Cruz (City) finalized a contract with BCycle, LLC to be the regional bike share program vendor. In April 2023, Council approved the First Amendment to the contract to amend cyber liability requirements. In June 2023, BCycle officially launched citywide and at UCSC. In April 2024, BCycle expanded its service area to the County of Santa Cruz in the Live Oak area and to the City of Capitola.

DISCUSSION: During the first-year review of the system, ridership in the Santa Cruz BCycle system was the largest in the BCycle system as a whole, but unexpected market conditions combined with theft and vandalism led to financial losses for BCycle. Conditions included the cost of labor, utilities, and services in the Santa Cruz market, larger than standard levels of theft and vandalism, and an immediate transition of the majority of users to annual passes rather than walkup or monthly passes with higher revenue. Combined, these losses and market conditions exceed the thresholds set in Exhibit D of the original contract and entitle B-Cycle to request updated pricing terms.

In order to maintain financial sustainability and allow for continued regional expansion, the regional partners and BCycle have negotiated an updated pricing structure. All regional partners agree with this updated pricing proposal and find the proposed changes reasonable with regard to the market conditions. This pricing structure maintains status quo monthly and walkup pricing and increases the annual membership price from $150 per year to $225 per year. Additionally,

18.1 BCycle will collect sales tax and hold the ability to offer additional specialized passes, such as weekend passes, event passes, and other passes for targeted events or groups.

As such, the following language in Exhibit D: Fee Schedule to the Agreement is hereby removed in its entirety:
“User Fees

1. Initial rates will be set as listed:
a. Walk Up Pass: $7 per each 30 minutes; daily maximum is $75 b. Monthly: $30 for unlimited 30-minute trips, extra 30 minutes $3 each c. Annual: $150 for unlimited 30-minute trips, extra 30 minutes $3 each d. Low Income: None currently proposed but the vendor is encouraged to support discounted accesses through bulk-member programs.
e. Students: None proposed but the vendor is encouraged to support discounted access through bulk-member programs.

Walk-Up Fees, Monthly Fees, and Annual Fees to be charged by Vendor will be the same for all Participating Jurisdictions. Vendor may negotiate with Host Agency unique alternative or discounted rates for discrete groups of people (including, but not limited to, students and persons of low-income) or Special Event pricing for limited duration events.” Exhibit D will be replaced with the following language:
“User Fees
Beginning on the Effective Date of Amendment No. 2 to the Agreement, rates will be set not to exceed the following:
a. Walk-up Pass: $7.00 per each 30 minutes; daily maximum is $75 b. Monthly Pass: $30.00 for unlimited 30-minute trips, extra 30 minutes $3 each c. Annual Pass: $225.00 for unlimited 60-minute trips, extra 30 minutes $3 each d. Low Income: None currently proposed but the vendor is encouraged to support discounted access through bulk-member programs.
e. Students: None proposed but the vendor is encouraged to support discounted access through bulk-member programs.

The foregoing Walk-Up Fees, Monthly Fees, and Annual Fees to be charged by Vendor will be the same for all participating jurisdictions. Vendor shall have the right to offer additional fee structures or promotional rates at Vendor’s sole discretion. Vendor may also negotiate with Host Agency unique alternative or discounted rates for discrete groups of people (including, but not limited to, students and persons of low-income) or Special Event pricing for limited duration events.

Notwithstanding any other provision to the contrary in the Agreement, all posted rates are exclusive of any applicable sales and other taxes, except where same are void by law.” CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: Not applicable.

18.2 HEALTH IN ALL POLICIES (HiAP): This project promotes the following Health in All Policies core conditions: Community Contentedness and Health and Wellness.

FISCAL IMPACT: There is no impact on the General Fund.

Prepared By:

Joanna Edmonds
Transportation Coordinator
Claire Gallogly
Transportation Planner
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. CONTRACT AMENDMENT 2.DOCX

18.3 Second Amendment to Professional Services Agreement with BCycle LLC Month, Year Page 1

SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH BCYCLE LLC _________________
THIS SECOND AMENDMENT (“Second Amendment”), effective as of _________, (“effective date”) to the PROFESSIONAL SERVICES AGREEMENT dated January 6, 2023, is made by and between the CITY OF SANTA CRUZ (“City”) and BCycle LLC (“Consultant”). City and Consultant may be referred to individually as a “Party” and collectively, as the “Parties.”

RECITALS
WHEREAS, City and Consultant have previously entered into that certain Professional Services Agreement (“Agreement”) dated January 6, 2023, incorporated herein by this reference; and WHEREAS, the City Council approved the entering into a First Amendment to the Agreement on April 11, 2023, to amend the cyber liability coverage terms in the contract.

WHEREAS, City and Consultant desire to enter into this Second Amendment to the Agreement to to revise the Fee Schedule, as specified herein.

AGREEMENT
NOW, THEREFORE, it is agreed between the Parties to incorporate the above Recitals hereto, and that the Agreement is hereby amended as follows:

1. The following language in Exhibit D: Fee Schedule to the Agreement is hereby removed in its entirety:
“User Fees

1. Initial rates will be set as listed:
a. Walk Up Pass: $7 per each 30 minutes; daily maximum is $75 b. Monthly: $30 for unlimited 30-minute trips, extra 30 minutes $3 each c. Annual: $150 for unlimited 30-minute trips, extra 30 minutes $3 each d. Low Income: None currently proposed but the vendor is encouraged to support discounted accesses through bulk-member programs. e. Students: None proposed but the vendor is encouraged to support discounted access through bulk-member programs.

18.4 Second Amendment to Professional Services Agreement with BCycle LLC Month, Year Page 2
Walk-Up Fees, Monthly Fees, and Annual Fees to be charged by Vendor will be the same for all Participating Jurisdictions. Vendor may negotiate with Host Agency unique alternative or discounted rates for discrete groups of people (including, but not limited to, students and persons of low-income) or Special Event pricing for limited duration events.”
and is replaced with the following language:
“User Fees
Beginning on the Effective Date of Amendment No. 2 to the Agreement, rates will be set not to exceed the following:
a. Walk-up Pass: $7.00 per each 30 minutes; daily maximum is $75 b. Monthly Pass: $30.00 for unlimited 30-minute trips, extra 30 minutes $3 each
c. Annual Pass: $225.00 for unlimited 60-minute trips, extra 30 minutes $3 each
d. Low Income: None currently proposed but the vendor is encouraged to support discounted access through bulk-member programs. e. Students: None proposed but the vendor is encouraged to support discounted access through bulk-member programs.

Notwithstanding any other provision to the contrary in the Agreement, all posted rates are exclusive of any applicable sales and other taxes, except where same are void by law.”
Except as amended by this Second Amendment, all other applicable terms and conditions of the original Agreement and attachments, and other prior amendment(s), shall remain in full force and effect. The terms of this Second Amendment shall control if any conflict exists.

Each party acknowledges that it has reviewed this Second Amendment and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Second Amendment.

The unenforceability, invalidity or illegality of any provision(s) of this Second Amendment shall not render the other provisions unenforceable, invalid or illegal.

18.5 Second Amendment to Professional Services Agreement with BCycle LLC Month, Year Page 3
The Parties may execute this Second Amendment in two or more counterparts, which shall, in the aggregate, be deemed an original but all of which, together, shall constitute one and the same instrument. A scanned, electronic, facsimile or other copy of a party’s signature shall be accepted and valid as an original.

The signatories to this Second Amendment warrant and represent that each is authorized to execute this Second Amendment and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this Second Amendment.
[SIGNATURES ON FOLLOWING PAGE]

18.6 Second Amendment to Professional Services Agreement with BCycle LLC Month, Year Page 4
IN WITNESS WHEREOF, the City and the Consultant have executed this Second Amendment effective as of the date first written above.

Approved As To Form:

By: ______________________________ Date: ___________
Office of the City Attorney

CONSULTANT
By: ______________________________ Date: __________________ Printed: __________________________ Title: _________________________ By: ______________________________ Date: __________________ Printed: __________________________ Title: __________________

CITY OF SANTA CRUZ
By: ______________________________ Date: __________________ Matt Huffaker, City Manager

18.7 City Council

AGENDA REPORT
DATE: 08/22/2024
AGENDA OF: 09/10/2024
DEPARTMENT: Public Works
SUBJECT: Regional Participation in Household Hazardous Waste Grant Cycle 43 (PW)
RECOMMENDATION: Motion to adopt a resolution to authorize the City of Santa Cruz’s regional participation in the CalRecycle Household Hazardous Waste Cycle 43 and authorize the City Manager to submit all required documentation and payment requests.

BACKGROUND: The Department of Resources Recycling and Recovery (CalRecycle) offers the Household Hazardous Waste (HHW) Grant Program pursuant to Section 47200(a) of the Public Resources Code, with the purpose to assist local governments in implementing safe HHW programs, which may include public education, source reduction, reuse, recycling, load checking and collection components. Cycle 43, Fiscal Year 2024-25, is a grant for small projects, which allows regional participation to leverage the amount of funds available for a project.

DISCUSSION: The HHW Grant program for Small Projects allow jurisdictions to improve their collection and disposal of local hazardous wastes. The City of Santa Cruz (City) currently participates in the Countywide HHW Collection program, sponsoring a drop-off facility at the Resource Recovery Facility on Dimeo Lane. Hazardous waste items that are especially difficult to dispose of include marine and road flares, both considered explosive items.Marine and road flares are not currently managed by the Countywide program and have to be processed by facilities outside the state. Marine flares are a particularly difficult hazardous waste since they are required equipment on all vessels, and they are typically a single use item, with a short lifespan before they are required to be disposed. Unfortunately, that means that most of these flares are disposed without ever being used. The difficulty with disposal means that these items are currently turned away from our collection program. This grant will establish a pilot program to collect flares, that may be stockpiled for lack of a disposal option and provide both an education program and exchange events where reusable electronic visual distress signals will be available. The program will be conducted at the current HHW facilities in partnership with the Santa Cruz Port District. This grant will help solve a disposal dilemma and help to move boaters to a more environmentally friendly, reusable distress device. The County of Santa Cruz will be the lead agency in this grant.

Staff requests that Council adopt a resolution authorizing the City to participate in a Countywide Household Hazardous Waste Grant and authorizing the City Manager, or their designee, to execute in the name of the City of Santa Cruz all CalRecycle grant documents necessary to secure grant funds and implement the approved grant project, for a period of five years.

19.1 CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: Not applicable.

HEALTH IN ALL POLICIES (HiAP): This grant promotes the following Health in All Policies core condition: Healthy Environments.

FISCAL IMPACT: There are no matching funds required for this grant. At the end of the grant period, if the program is successful and the decision is to continue this program, there will be a slight increase in the HHW program expenses, costs that are shared with all participating jurisdictions. The City portion of costs are provided through the Refuse Fund (Fund 731) only.

There is no impact to the General Fund.

Prepared By:

Bob Nelson
Resource Recovery
Operations Manager
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

19.2 RESOLUTION NO. NS-XX,XXX

RESOLUTION OF THE CITY OF SANTA CRUZ AUTHORIZING ON ITS BEHALF THE

SUBMITTAL OF A GRANT APPLICATION BY THE COUNTY OF SANTA CRUZ FOR HOUSEHOLD HAZARDOUS WASTE GRANT PROGRAM, CYCLE 43, FISCAL YEAR 2024-25 SMALL PROJECTS GRANT
WHEREAS, Public Resources Code sections 48000 et seq. authorize the Department of Resources Recycling and Recovery (CalRecycle) to administer various grant programs (grants) in furtherance of the State of California’s (state) efforts to reduce, recycle and reuse solid waste generated in the state thereby preserving landfill capacity and protecting public health and safety and the environment; and
WHEREAS, Household Hazardous Waste Grant Program Cycle 43, Fiscal Year 2024-25, allows regional grant projects; and
WHEREAS, CalRecycle grant application procedures require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of CalRecycle grants.

NOW, THEREFORE, BE IT RESOLVED that the City of Santa Cruz authorizes the County of Santa Cruz to submit a Household Hazardous Waste Grant Program Cycle 43, Fiscal Year 2024-24, regional application on behalf of itself as a regional participant.

BE IT FURTHER RESOLVED that the County of Santa Cruz is hereby authorized and empowered to execute on behalf of the City of Santa Cruz all grant-related documents, including, but not limited to, applications, payment requests, agreements, and amendments necessary to secure grant funds and to implement the approved grant project; and BE IT FURTHER RESOLVED that these authorizations are effective for five (5) years from the date of adoption of this resolution.

PASSED AND ADOPTED this 10th day of September, 2024 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

19.3 City Council

AGENDA REPORT
DATE: 08/22/2024
AGENDA OF: 09/10/2024
DEPARTMENT: Public Works
SUBJECT: Award Contract for London Nelson Community Center Roof Repair (PW) RECOMMENDATION: Motion to award a contract for the purchase of tile and roof repair from Weatherproofing, Technologies, Inc (Beachwood, OH) in the amount of $159,325.46. The Director of Public Works is authorized to execute changes orders within the approved project budget.

BACKGROUND: The London Nelson Community Center was built in 1930 and currently houses various community programs, classes, theatre performances, and special events. Previous roof repairs consisted of minor tile replacements and resealing of topside flashing. The roof area over the auditorium leaks during rain events, and the Facilities team has found the waterproofing materials under the tiles have completely failed, and in some locations, deteriorated, leaving the wood roofing deck unprotected. After two major storm events in early 2023 and 2024, the roof showed additional water intrusion into the building from the roof area. Due to the ongoing condition of the roof, there is a possibility of dry rot that will need to be repaired once the roof tiles and underlayment are fully removed by the contractor. The roof repair proposal consists of the removal of tiles and flashings, installation of a new waterproof underlayment, and reinstallation and replacement of broken and damaged tiles.

DISCUSSION: Section 3.08.170 of the Municipal Ordinance allows the City of Santa Cruz to buy from cooperative purchasing agreements when is in the best interest of the City to do so.

Waterproofing Technologies, Inc, a subsidiary of Tremco Roofing & Building Maintenance, utilizes Omnia Partners CPN Contract # R230404 for roof management programs. The repair will be scheduled and expected to be completed within 4 weeks of mobilization.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: Not applicable.

HEALTH IN ALL POLICIES (HiAP): This project promotes the following Health in All Policies core conditions: Thriving Families.

FISCAL IMPACT: There are adequate funds in the FY 2025 Public Facilities - Maintenance (m609195) Capital Investment Program (CIP) budget. There is no impact to the General Fund.

20.1 Prepared By:

Filipina Warren
Public Works Operations
Manager
Dan Himan
Facilities Supervisor
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. WATERPROOFING TECHNOLOGIES PROPOSAL.PDF

20.2 1
City of Santa Cruz
London Nelson CC Tile Project
301 Center St.

Santa Cruz CA 95060
Cost Estimate # 5061323

20.3 2
London
Nelson
Community
Center
Tile
Project

20.4 3
Date: 2/27/2024
CITY OF SANTA CRUZ: LONDON NELSON COMMUNITY CENTER TILE PROJECT Dear Customer,
The following is our proposal for the London Nelson CC located at 301 Center St Santa Cruz CA 95060.

This cost estimate is for a roofing project.

PROPOSED SCOPE OF WORK

1. Setup safety and perform daily safety audits.

2. Remove tile underlayment and flashings to be replaced.

3. Install new SA underlayment.

4. Install new flashing where needed.

5. Reinstall old tiles, replace broken or damaged ones.

6. Remove all project-related debris.

This proposal excludes any dry rot repair.

20.5 4
PROPOSED FEES:

Total Project Cost: ……………………………………………………………………. $159,325.46 Very Truly Yours,
WEATHERPROOFING TECHNOLOGIES, INC.

Leo Jacobs
Leo Jacobs - Construction Manager
cc: Daniel Lajeunesse- Tremco
The preceding scope of work assumes the following:
 Work shall be performed during normal working hours on weekdays.  Work will be performed at one time, under one contract.  Mitigation of hazardous materials, such as lead and asbestos has not been included in this cost estimate.

COST ESTIMATE AGREEMENT
This cost estimate is an offer by WTI to provide the Scope of Work set forth above to the Customer on the terms and conditions set forth herein and in WTI’s standard terms and conditions (a copy of which may be obtained at http://www.tremcoroofing.com/fileshare/terms/TandCWTI.pdf), which are hereby incorporated by reference (together, the “Terms and Conditions”). The Terms and Conditions will govern the Work to the exclusion of any other or different terms, including in any customer purchase order, unless otherwise expressly agreed in writing pursuant to a Master Agreement or similar contract with Customer signed by an authorized representative of WTI. Any Performance and Payment Bonds issued for associated repair work are limited to performance of the repairs and one year warranty on such repairs. Bonds, if issued, do not apply to the TremCare extended service agreement. Please confirm your acceptance by return e-mail to the representative identified below. Upon receipt of acceptance, WTI will process your order and promptly begin the Scope of

20.6 WEATHERPROOFING TECHNOLOGIES, INC.

CPN CONTRACT # R230404-
Effective Date: 11/01/2023

CONFIDENTIAL
Name London Nelson Community Center
Description Tile Replacement
Quote # 5061323
Date 3.28.24
Line Item # Description Unit of Measure Unit Price Quantity Project Amount
VA211 Installer Hour $ 187.11 364 $ 68,108.04
VA115 Multiplier - roof is considered non-standard architecture or has > 4:12 slope Multiplier 2.17 $ 68,108.04 $ 147,794.45 Replacement Tiles EA 2,750 1 $ 2,750.00
Fasteners EA 1,100 1 $ 1,100.00
SA Underlayment EA 2,750 1 $ 2,750.00
Flashing, Valley and roof to wall EA 2,875 1 $ 2,875.00 VA123 Multiplier - Construction Distributor Material for Repair Work Multiplier 1.15 $ 9,475.00 $ 10,896.25
FREIGHT PREPAID & ADD: -$
$ 158,690.70
57b Performance and payment bond - bonding rate (percent of project) % 0.4% $ 634.76 TOTAL PROJECT COST $ 159,325.46
*The pricing contained in this proposal is based in part on sitespecific conditions and unique circumstances presented on each individual project as per Contract #R230404.

This price is valid for 60 days. After that time, project conditions are subject to reassessment.

20.7 City Council

AGENDA REPORT
DATE: 08/22/2024
AGENDA OF: 09/10/2024
DEPARTMENT: Public Works
SUBJECT: West Cliff Multi-Use Path Rehabilitation Project (m400819) – Reject Bids (PW)
RECOMMENDATION: Motion to reject all bids for the West Cliff Multi-Use Path Rehabilitation Project (m400819), authorize staff to re-advertise the project for bids proposals and to authorize the City Manager to execute an agreement in a form approved by the City Attorney. The Director of Public Works is authorized to execute amendments within the approved project budget.

BACKGROUND: The West Cliff Multi-Use Path is a scenic coastal trail that stretches approximately three miles along the Pacific Ocean from Natural Bridges State Beach to the Santa Cruz Beach Boardwalk. This paved path offers stunning ocean views, opportunities for wildlife observation, and access to several beaches and surf spots. It is popular for walking, jogging, biking, and leisurely strolls. The focus of this project will be the section of the West Cliff path between Natural Bridges State Beach and David Way. Currently, the width of the path generally varies from eight to ten feet, with one section that narrows down to six feet. Additionally, some sections of the existing path are deteriorating and have become tripping hazards. Our goal for this project is to continue to maintain a path that is family-friendly and accessible, making it a favorite for both locals and visitors looking to enjoy the Santa Cruz coastline.

This project will refinish the West Cliff path’s asphalt surface from Natural Bridges State Beach to David Way to enhance safety and accessibility for all users. This project aims to fix failing path sections to remove tripping hazards and replace the path's surface to extend the asphalt's life.

At its June 25, 2024, meeting, City Council authorized staff to advertise for bids, and authorize the Public Works Director to execute change orders within the approved project budget. The project was advertised for bids on July 2, 2024.

DISCUSSION: On July 29, 2024, City staff received five bids for the project from local contractors. The engineer’s estimate was $502,208.30. Bids for the project were received as follows:

S&H Construction $598,600.00
R&M Paving Contractors $822,081.37
Galeb Paving, Inc. $1,044,196.38

21.1 Granite Rock Construction $1,006,970.80
Granite Construction $1,107,576.80
Staff evaluated the bids and found some anomalies on the unit prices and total costs for the project. Consequently, the apparent low bidder, S & H Construction, has requested relief from their bid proposal due to a clerical error in their bid (attached). Furthermore, the second low bid was 50% over the engineer’s estimate. Staff will use to the bid results to refine the design to achieve cost savings and rebid the project next year. This will create a delay of 12 months in starting project construction, pushing it to summer of 2025.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: Not applicable.

HEALTH IN ALL POLICIES (HiAP): This project promotes the following Health in All Policies core conditions: Health and Wellness and Community Connectedness.

FISCAL IMPACT: The West Cliff Drive Multi-Use Maintenance project (m400819) is funded by Gas Tax Funds and $200,000 from the state’s Transportation Development Act (TDA) Funds.

There is no impact to the General Fund.

Prepared By:

Miguel Lizarraga
Associate Professional
Engineer
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. S AND H CONSTRUCTION LETTER.PDF

21.2 21.3
City Council

AGENDA REPORT
DATE: 08/22/2024
AGENDA OF: 09/10/2024
DEPARTMENT: Water
SUBJECT: Beltz 8 and 12 Aquifer Storage and Recovery (ASR) Project Addendum to the Santa Cruz Water Rights Project Final Environmental Impact Report – Project Approval (WT)
RECOMMENDATION: Motion to approve the Beltz 8 and 12 Aquifer Storage and Recovery Project considering the certified Santa Cruz Water Rights Project Final Environmental Impact Report and the Beltz 8 and 12 Aquifer Storage and Recovery Project Addendum to the Santa Cruz Water Rights Project Final Environmental Impact Report.

BACKGROUND: Since 2009, the City of Santa Cruz (City) has prepared and certified several Environmental Impact Reports (EIR) for projects that wholly or partially include the use and management of groundwater. First, the Beltz Well No. 12 Final EIR (State Clearinghouse No. 201012230) was certified by City Council in December 2011. The purpose of Beltz Well No. 12 was to shift groundwater pumping inland to protect the aquifer from the threat of seawater intrusion, while maintaining historic groundwater production. In addition to certifying the Beltz Well No. 12 Final EIR, City Council designated the reduced pumping alternative as the preferred alternative. This alternative addressed the construction of the Beltz 12 facility and established an approximate groundwater extraction pumping rate of 210 gallons per minute (gpm).

Second, the Santa Cruz Water Rights Project Final EIR (State Clearinghouse No. 2018102039), certified by the City of Santa Cruz (City) in December 2021, evaluated the potential environmental impacts of modifying the City’s existing water rights to provide flexibility for where and how those water rights can be used, as well as associated water supply augmentation components and surface water diversion improvements. One of the components analyzed in the Santa Cruz Water Rights Project EIR was the active recharge of regional aquifers through direct injection of surface water supplies for later recovery and use, referred to as Aquifer Storage and Recovery (ASR). The ASR analysis in the EIR addressed improvements at the City’s existing Beltz 8, 9, 10, and 12 facilities to allow for the conversion of these existing groundwater wells into ASR wells.

Finally, as part of the City’s Securing Our Water Future policy initiative, the City of Santa Cruz Water Department (Water Department or Department) has been evaluating the feasibility of ASR at the existing Beltz wells and are designing permanent ASR facilities at Beltz 8 and 12 to be constructed within the next several years (Proposed Project). As mentioned previously, while ASR was contemplated in the Water Rights EIR, the feasibility studies resulted in minor changes best accounted for in an addendum to the Water Rights EIR.

22.1 In February 2022, the Mid-County Groundwater Agency was awarded $7.6 million in grant funding to support Groundwater Sustainability Plan implementation through the California Department of Water Resources (DWR) Sustainable Groundwater Management Grant Program.

The DWR grant agreement allocated $1.65 million to advance ASR in the Mid-County Groundwater Basin through the design and construction of permanent ASR facilities.

Approval of the Proposed Project considering the Santa Cruz Water Rights Final Environmental Impact Report, and this Addendum will allow DWR grant administrators sufficient time to review the environmental package for the Proposed Project.

DISCUSSION: The Addendum was prepared to address minor changes to the Proposed Project after the Santa Cruz Water Rights Project EIR was certified. Recommended modifications to the previously evaluated project include minor design and project boundary changes for Beltz 8 to accommodate upgrades to the sanitary sewer and storm drain infrastructure on site; filter replacement; modifications to proposed tanks, piping, and pumping rates at Beltz 12; installation of an orthophosphate system at each site; refinements to the construction schedule and equipment; and identification of staging areas. Per the requirements of the Santa Cruz Water Rights Project EIR, the City will operate the Proposed Project in a manner consistent with the sustainable management criteria and avoid any undesirable results identified in the Santa Cruz Mid-County Groundwater Basin Groundwater Sustainability Plan.

To efficiently operate the ASR facility, the Proposed Project updates the operational rate for Beltz 12, which was established with the reduced pumping alternative for Beltz 12 in 2011.

Under the Proposed Project, the maximum pumping rate at Beltz 12 would be increased to a new maximum operational rate of 500 gpm.

Modifications to the Proposed Project analyzed in the Santa Cruz Water Rights Project EIR represent minor changes that would not result in new significant or substantially more severe impacts than those previously identified. Similarly, there are no substantial changes with respect to the circumstances under which the project is undertaken or new information of substantial importance that would result in new significant impacts or a substantial increase in severity of previously identified impacts since certification of the EIR.

Following City Council action to approve this project, staff will file a Notice of Determination with the Santa Cruz County Clerk and California State Clearinghouse to document project approval and conclusion of the California Environmental Quality Act (CEQA) process for the Proposed Project. The Beltz 12 ASR Project component is planned to be put out to bid in fall of 2024, following further City Council action to approve the plans and specifications. Additional project components will be brought to City Council for approval as designs are completed.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: As described in this staff report, a Final EIR has been prepared for the Santa Cruz Water Rights Project, and an Addendum to the Final EIR for the Santa Cruz Water Rights Project has been prepared for the Beltz 8 and 12 Aquifer Storage and Recovery Project.

HEALTH IN ALL POLICIES (HiAP): This project aligns with the public health pillar of the City’s HiAP initiative by supporting the Water Department’s work in ensuring the reliability of the public drinking water supply.

22.2 FISCAL IMPACT: There is no fiscal impact associated with this item and the requested action.

The cost of the Proposed Project is being incorporated into the Department’s financial planning efforts.

Prepared By:

Isidro Rivera
Deputy Director/ Engineering
Manager
Submitted By:

Deputy Director/ Engineering
Manager
Water Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

22.3 City Council

AGENDA REPORT
DATE: 08/22/2024
AGENDA OF: 09/10/2024
DEPARTMENT: Water
SUBJECT: Soquel Avenue Main Replacement Project (c700002) – Notice of Completion (WT)
RECOMMENDATION: Motion to accept the work of Pacific Underground Construction, Inc. (San Jose, CA) as complete per the plans and specifications, authorizing the filing of a Notice of Completion for the Soquel Avenue Main Replacement Project (c700002), and authorize the Water Director to sign the Notice of Completion as the Owner’s Authorized Agent.

BACKGROUND: The County of Santa Cruz is nearing completion of the Soquel Drive Buffered Bike Lane and Congestion Mitigation Project (County Project). The County Project introduces road surface grade changes and new retaining walls that required the relocation of above ground and buried City of Santa Cruz (City) water infrastructure in the vicinity of Harbor High School. After coordination with the County and reviewing record documents, staff identified an opportunity to replace aging infrastructure on Soquel Avenue and Soquel Drive within the vicinity of the County Project, and to improve water quality in the process.

At its meeting on November 15, 2022, City Council approved the plans, specifications, and contract documents for the Soquel Avenue Main Replacement Project (Project); found the Project exempt under the California Environmental Quality Act (CEQA); and authorized staff to advertise the Project for bids and award the contract. On April 18, 2023, the City Manager executed an agreement in a form approved by the City Attorney with Pacific Underground Construction, Inc. for the Project. The total contract amount, including a 10% contingency, was $1,539,670.66. Work for the Project included:

1. Replacement of approximately 900 lineal feet of 12-inch diameter water main between Capitola Road Extension and Bostwick Lane along Soquel Avenue in Santa Cruz, CA.

2. Replacement of 928 lineal feet of 12-inch diameter water main, including various ¾” through 8” service reconnections and service renewals, tie-ins, and other various appurtenances, between 41st Avenue and Daubenbiss Avenue along Soquel Drive in Santa Cruz County, CA.

DISCUSSION: All services required under the contract have been completed, inspected by City of Santa Cruz Water Department (Water Department) staff, and found to be constructed in accordance with the approved plans and specifications. One change order was issued during construction totaling $298,476.07.

23.1 The contractor has made a good-faith effort to meet the requirements of the City’s Local Hire Ordinance and to employ apprentices on the Project including advertisements at Laborers Local 270 and Operating Engineers unions.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: City Council found the Project to be exempt under CEQA at its meeting on November 15, 2022.

HEALTH IN ALL POLICIES (HiAP): This Project aligns with the public health pillar of the City’s HiAP initiative by supporting the Water Department’s work ensuring the reliability of the public drinking water supply.

FISCAL IMPACT: The final cost of all work under this contract was $1,698,176.66. The Project was funded by the Water Department’s Fiscal Year 2024 Capital Investment Program budget, project c700002 Main Replacements - Engineering.

Prepared By:

Isidro Rivera
Deputy Water Director/
Engineering Manager
Submitted By:

Heidi Luckenbach
Water Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. NOTICE OF COMPLETION.DOCX

23.2 Notice of Completion (Revised Oct 2021)
(Space above for Recorder’s use only)
This instrument is being recorded for the benefit of the City of Santa Cruz.

No recording fee is required pursuant to Government Code § 27383.

NOTICE OF COMPLETION
(CA Civil Code Sections 8102 and 9204)
NOTICE IS HEREBY GIVEN THAT:

The undersigned is an authorized representative of the owner of the interest or estate stated below.

1. The Owner’s Name and Address. The Project owner is the City of Santa Cruz, a municipal corporation (the “City”). The City’s mailing address is 809 Center Street, Santa Cruz, California, 95060. The City of Santa Cruz has the following interest in the subject Property described below: City Property

2. Project Title and Number. The full name of the work of improvement/public works project (the “Project”) which is the subject of this Notice of Completion is: Soquel Avenue Main Replacement Project, CWO #2022-005

3. Nature of Work Performed on the Property or Materials Furnished for the City. The Project consisted of work described as: The Work is generally described as follows: installation of 1828 lineal feet of 12-inch PVC/DI fully restrained potable water main including various ¾” through 8” service reconnections and service renewals, tie-ins, and other various appurtenances.

4. The general site location description or address (the “Property”) of the public improvement is located at: along Soquel Avenue between Capitola Extension and Bostwick Lane and along Soquel Drive between 41st Avenue and Daubenbiss Avenue in Santa Cruz County, CA.

5. Name and Address of Contractor. The Contractor on the Project is: Pacific Underground Construction, Inc., 1817 Stone Ave, San Jose, CA 95125.

6. Construction Lender. The name and address of the construction lender, if any, is: N/A

7. Date of Completion. The Project on the Property was completed on: June 28, 2024

8. The filing of this Notice of Completion was authorized by the Santa Cruz City Council Minute Order on Tuesday, September 10, 2024
DATE: ___________________
Heidi Luckenbach
Water Director, City of Santa Cruz 9.

RECORDED AT THE REQUEST OF:

City of Santa Cruz, Water
Attn: Isidro Rivera
WHEN RECORDED MAIL TO:

City Clerk’s Department
809 Center Street, Room 9
Santa Cruz, CA 95060

23.3 ORDINANCE NO. 2024-14
AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING CHAPTER 2.40, BOARDS AND COMMISSIONS, SECTION 2.40.110, ESTABLISHMENT OF COMMISSION FOR

PREVENTION OF VIOLENCE AGAINST WOMEN, OF THE SANTA CRUZ MUNICIPAL CODE
BE IT ORDAINED by the City Council of the City of Santa Cruz as follows:

Section 1. Chapter 2.40 – Boards and Commissions is hereby amended at Section 2.40.110 – Establishment of Commission for Prevention of Violence Against Women to read as follows:
“2.40.110 ESTABLISHMENT OF COMMISSION FOR PREVENTION OF VIOLENCE AGAINST WOMEN.

Pursuant to Initiative Ordinance No. 81-29, there is hereby established a commission of the city of Santa Cruz to be known as the commission for the prevention of violence against women. Each commissioner shall serve a four-year term of office beginning February 1st If the nominating councilmember leaves office prior to the expiration of the councilmember’s term, the commissioner’s term shall expire with the councilmember’s term and the succeeding councilmember shall nominate a new commissioner to fill the unexpired term.”
PASSED FOR PUBLICATION this 27th day of August, 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

24.1 ORDINANCE NO. 2024-14
2 PASSED FOR FINAL ADOPTION this 10th day of September, 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. 2024-14 and that
it has been published or posted in
accordance with the Charter of the
City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator

24.2 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:

September 4, 2024
I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge.

This 4th day of September, 2024, Santa Cruz, California ____________________________
Julia Wood
Deputy City Clerk Administrator

24.3 DECLARATION OF POSTING

STATE OF CALIFORNIA )
) SS.

COUNTY OF SANTA CRUZ )
On the 28th day of August, 2024, I posted conspicuously in three public places within the City of Santa Cruz, Ordinance No. 2024-14, 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—2.

I declare under penalty of perjury that the foregoing is true and correct. Executed this 28th day of August, 2024, in Santa Cruz, California.
_______________________________
Julia Wood
Deputy City Clerk Administrator

24.4 City Council

AGENDA REPORT
DATE: 08/26/2024
AGENDA OF: 09/10/2024
DEPARTMENT: City Manager
SUBJECT: Collective of Results and Evidence-Based (CORE) Investments Update (CM)
RECOMMENDATION: Motion to:
1) Accept staff report on the status of the Collective of Results and Evidence-based (CORE) Investments Program Request for Proposals (RFP);
2) Direct staff to carve out any Council-prioritized services from competitive procurement; 3) Approve staff recommended funding Option 2, to distribute funding and initiate recommended awards; and
4) Direct staff to coordinate with the Human Services Department (HSD) to report back with recommended awards from the CORE RFP by November 19, 2024.

BACKGROUND: CORE Investments is a funding initiative designed to enhance the wellbeing of County residents through equitable and impactful programs. Managed by the Human Services Department (HSD) in partnership with the City of Santa Cruz (City), CORE Investments uses a collective impact model to support programs that benefit lower-income residents.

For FY 2026-28 (July 1, 2026 to June 30, 2028), a total of $5,958,853 is available for CORE Investments: $4,879,000 from the County and $1,080,000 from the City. Of this, $3,790,025 is allocated for competitive funding through the CORE RFP, while $1.5M is designated for three (3) Low Barrier Navigation Centers (shelters with supportive services), and a portion of the County’s funds will be used for prevention services in South County. The County’s Housing for Health Partnership (H2P) will manage the safe and affordable housing funding through a separate process, and the remaining funds, 15% of each jurisdiction’s contributions, or $668,828 ($544,328 County and $124,500 City), is set aside for elected officials to address emerging needs.

On April 30, 2024, the Board of Supervisors (Board) and City Council (Council) prioritized four (4) CORE Conditions:

1. Lifelong Learning and Education

25.1 2. Thriving Families

3. Healthy Environments

4. Safe, Affordable Housing and Shelter
They allocated $1.5M for affordable housing and shelter through the H2P, leaving $3,790,025 for distribution through the RFP process.

The CORE RFP was issued on June 3, 2024 with proposals due by August 2, 2024. A total of 100 proposals requesting $15,301,019 were received, significantly exceeding the available $3,790,025.

DISCUSSION: The total CORE Investments budget for FY 2026-27 and FY 2027-28 funding cycle is $5,958,853 per fiscal year, designated to the following: $3,790,025 towards the CORE Investments RFP, $1.5M to H2P for affordable housing and shelter, and prevention services, and $668,828 to be set aside for elected officials for unanticipated priorities.

The CORE Investments RFP was released on June 3, 2024, with a submission deadline of August 2, 2024, at 5:00 pm. Formal RFP documents were posted on the County General Services Department (GSD) procurement website, and additional supportive information and tools on HSD were also posted. ReviewR, an online platform used for the prior RFP, was used again for proposal submittals.

Amendments
Throughout the RFP process, four (4) amendments were made (CORE RFP Amendments):
 First Amendment: Updated the RFP schedule and Appeal process to align with County procurement practices.
 Second Amendment: Corrected technical issues in the Budget and Leveraging Templates.  Third Amendment: Addressed technical fixes to some narrative information in the Leveraging Template.
 Fourth Amendment: Clarified details in Question #14 on ReviewR.

These amendments enhanced transparency, improved applicant notification, and streamlined the appeal process.

25.2 Applicant Support
In partnership with HSD and the CORE Consultants, they provided extensive support to potential applicants, including (CORE RFP Training Schedule):
 80 Individual Training and Technical Assistance Sessions: Offered to guide applicants through the RFP process.
 Applicant Conference: Recorded and available online for later viewing.  Question and Response Documents: Two documents addressing applicant queries.  Virtual trainings: Two sessions on using ReviewR, plus additional individualized support.  CORE Newsletter: Regular updates and reminders about training and assistance opportunities.

Support was provided in both English and Spanish to ensure accessibility.

CORE Proposals Received
A total of 100 proposals were submitted by 75 organizations, requesting $15,301,019 in funding across three (3) funding Tiers categorized by CORE Condition, including Impact Area. Most proposals, 58, were in Tier II, or medium-sized tier, with Thriving Families, 40, being the most popular CORE Condition, and finally, 13 organizations submitted two (2) or more proposals.

Details of the proposals are listed in Proposals Received By CORE Conditions and List of Agencies.

Review Panel Update
The RFP’s three (3) CORE Conditions allowed HSD staff to assign proposals based on Tier, CORE Condition, and Impact Area. Over 65 panelists volunteered to review the proposals, representing a diverse cross-section of community members, including those with lived experience, County and City staff, and representatives from other jurisdictions. HSD provided training on the scoring matrix, and all panelists signed a conflict-of-interest policy.

Council Direction
Council direction in two (2) key areas is necessary for staff to return with final awards recommendations for Council approval. Direction is as follows:

1. Carve-Outs: Council must decide whether to exclude any specific services or programs from the competitive procurement. If no carve-outs are specified, the set-aside funds ($668,828) will remain available for future needs.

2. Funding Distribution: With funding requests greatly exceeding available funds, the Council needs to provide guidance on allocating the CORE funding. Two (2) options are proposed:
a. Option 1: Distribute funds proportionally based on the amount requested by each CORE Condition and Tier.
b. Option 2: Distribute funds based on the number of proposals submitted in each category.

Staff recommends Option 2, which aligns with previous funding cycles and its potential to fund a broader range of proposals.

Funding Distribution
Since the CORE Investments program began, there has consistently been more demand for funding than available resources. Here’s a summary of the situation:

25.3  Past Funding Cycle (FY 2023-25): In the previous RFP cycle, 128 proposals were received, requesting a total of $15,179,382. However, the total budget was only $5,958,853. This means there were more than twice as many funding requests as there were funds available.
 Current Funding Cycle (FY 2026-28): 100 proposals have been submitted for the current RFP cycle, requesting $15,301,019. The available budget for this cycle is $3,790,000.

This situation is even more extreme, with requests being more than four (4) times the amount of available funding.

The County and City recognize that many of the organizations seeking funding provide valuable services to the community. The large gap between funding requests and available resources highlights the need to align Council priorities with the final recommendations carefully.

To determine how to distribute the available CORE funds among the top-scoring proposals, staff is seeking input on the following guidelines for funding distribution. These guidelines are designed to help allocate funds fairly and effectively.

Funding Distribution Guidelines
 Maximize Number of Proposals Funded: Aim to spread funding across as many proposals as possible.
 Distribute Funding Across Tiers and CORE Conditions: Ensure funding is allocated to various tiers and CORE Conditions as prioritized.
 Scoring Floor: Proposals will be evaluated based on the scoring matrix, with a minimum threshold set to ensure quality. HSD recommends a scoring floor of 80 for Tier I and II proposals and 60 for Tier III.
 Unallocated Funds: Any remaining funds after the initial distribution will be added to the 15% set aside for emerging needs.

Funding Distribution Options
Refer to Funding Distribution Options for the breakdown of funding distribution options.  Option 1: Fund each CORE Condition and Tier proportionally to the amount requested, allowing adjustments to ensure at least one (1) proposal per category is funded. This option is expected to fund between 16 and 36 proposals. It would allocate more resources to larger proposals, particularly in the Older and Dependent Adults category, which has the most proposals requesting $150,000 to $500,000.

Tier 1 Tier 2 Tier 3 Total
Lifelong Learning & Education
$500,000
1 to 2 apps
$272,947
1 to 5 apps
$25,000
1 app
$797,947
3 to 8 apps
Thriving Families: Children &
Youth
$655,138
1 to 3
$705,259
4 to 9
$25,847
1 to 2
$1,386,245
6 to 14
Thriving Families: Older &
Dependent Adults
$1,075,164
2 to 4
$306,324
2 to 5
$25,000
1 $1,406,488
4 to 10
Healthy Environments n/a $174,321
1 to 3
$25,000
1 $199,321
2 to 4
Total Cost $2,206,051 $1,504,133 $79,816 $3,790,000
Potential Proposals to Fund 4 to 9 8 to 22 4 to 5 16 to 36

25.4 Available funding represents just under 25% of the money requested by all CORE applicants. Option 1 proposes to fund each Tier and CORE Condition and Impact Area at about 25% of the requested funding.

The methodology would allow for adjustment to ensure that at least one (1) proposal in each category could be funded.
 Option 2: Distribute funding based on the number of proposals submitted in each category, maximizing the number of funded proposals. This option would likely fund 22 to 40 proposals. It would allocate more resources to medium-sized proposals, particularly the Children and Youth category, which has the highest number of medium-sized proposals.

Tier 1 Tier 2 Tier 3 Total
Lifelong Learning & Education $500,000
1 to 2 apps
$245,900
1 to 4 apps
$50,000
2 apps
$795,900
4 to 8 apps
Thriving Families: Children &
Youth
$518,500
1 to 2 apps
$947,500
6 to 11 apps
$50,000
2 to 3 apps
$1,516,000
9 to 16 apps
Thriving Families: Older &
Dependent Adults
$594,300
1 to 2 apps
$492,700
3 to 7 apps
$50,000
2 apps
$1,137,000
6 to 11 apps
Healthy Environments n/a $316,100
2 to 4 apps
$25,000
1 app
$341,100
3 to 5 apps
Total Cost $1,612,800 $2,002,200 $175,000 $3,790,000
# of Potential Proposals to Fund 3 to 6 12 to 26 7 to 8 22 to 40 The methodology would allow for adjustment to ensure that at least 1 proposal in each category could be funded.

Staff recommends Option 2. This option aligns with previous funding distributions and maximizes the number of programs supported. While it may result in fewer small grants compared to Option 1, it maintains consistency with past distributions. Additionally, Council could use unallocated funds from the 15% set aside to support additional small grants if desired.

Next Steps
Once the panelists have completed their evaluations, the next steps will involve compiling scores, applying Board and Council directions, and informing applicants of their funding status.

This process ensures that all proposals are assessed thoroughly and fairly and that any appeals are handled appropriately. Below is a detailed timeline of the upcoming activities:
 Review Panel Completion: Each review panel will finalize their evaluations within the next month.
 Score Compilation: HSD will compile proposal scores and apply Board and Council directions.
 Notification and Appeals: Applicants will be notified of proposed funding, with a 5-day period for appeals.
 Final Recommendations: Staff will coordinate with HSD to present final award recommendations and any unallocated funds to the Board and Council by November 19, 2024

25.5 CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: This report is not subject to CEQA as it involves funding decisions and does not constitute a project under CEQA guidelines.

HEALTH IN ALL POLICIES (HiAP): The CORE Investments initiative aligns with the Health in All Policies (HiAP) principles by integrating health and equity considerations into its funding priorities. CORE focuses on areas such as lifelong learning, affordable housing, healthy environments, and thriving families, all critical determinants of public health. CORE Investments supports a comprehensive approach to improving community health by funding programs that address these. The initiative emphasizes equitable access to resources, targeting support to lowerincome and underserved populations, directly contributing to reducing health disparities.

Additionally, CORE’s alignment with community values and feedback ensures that funded programs address immediate needs and promote long-term health and well-being, consistent with HiAP’s goal of embedding health considerations into policymaking across all sectors. This approach integrates health considerations into decision-making processes to enhance overall community well-being.

FISCAL IMPACT: Currently $4,878,853 County General Fund is allocated to CORE and is supplemented by $1,080,000 of City of Santa Cruz funds. This RFP assumes a continued minimum County General Fund contribution of $4,878,853 and $1,080,000 from the City of Santa Cruz. With the proposed recommendations at the existing level of total CORE funding of $5,958,853, $1,500,000 would be utilized for stable, affordable housing, and $668,828 would be available to be used at the discretion of the elected officials. Funding available through the competitive RFP process would be $3,790,025. The actions outlined in this report will not impact the General Fund.

Prepared By:

Larry Imwalle
Homelessness Response
Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. CORE RFP AMENDMENTS.PDF

2. CORE RFP TRAINING SCHEDULE.PDF

3. PROPOSALS RECEIVED BY CORE CONDITIONS.PDF

4. LIST OF AGENCIES.PDF

5. FUNDING DISTRIBUTION OPTIONS.PDF

25.6 COUNTY OF SANTA CRUZ
Purchasing Division
701 OCEAN STREET, SUITE 330, SANTA CRUZ, CA 95060-4073
ADDENDUM #1
Request for Proposal (RFP) #2024HSD01
FOR
Collective of Results and Evidence-based (CORE) Investments Funding Cycle Fiscal Year 2025-28 Issued June 27, 2024
This addendum (#1) is being issued to revise 2.2: RFP Process Schedule, Exhibit C: Protests and Appeals Procedures found in the RFP

1. Revised 2.2: RFP Process Schedule found on pages 4-5:

Activity Date
Advertise RFP – Sentinel & San Jose Mercury
News
6/3/24 & 6/10/24
Release RFP 6/3/24 by 5:00pm
Applicant Conference (virtual on Zoom) 6/21/24 (10 am-12 pm) Applicant Question Deadline 7/1/24 by 5:00 pm
Deadline for Submittals 8/2/24 by 5:00 pm
Online Portal Technical Assistance Session 6/26/24 (11:00 am-12 pm) https://bit.ly/CORE-RFP-Training-June26
Individualized Online Portal Support Offered  Email:

[email protected]
1st Question and Response Posting   6/21/24 by 5:00 pm
2nd Question and Response Posting   7/8/24 by 5:00 pm
Training and TA Various dates offered sign up on
the CORE website:
www.santacruzhumanservices.org/Home/
FundingOpportunities/COREInvestments
Proposals Due   Friday, 8/2/24 by 5:00 PM
Applicants informed if their Proposal is considered
incomplete or does not meet parameters
Tuesday, 8/13/24 by 5:00 pm
Panel Review August-October 2024
County Board and City Council status update September 2024 County Board and City Council receive
recommendations, approve, and finalize CORE
awards
November 2024
Contracts approved January 2025- May 2025
Attachment A - CORE Investments RFP Amendments
FY 2025-28 CORE Investments Procurement

25.7 Page 1 of 5

2. Revised- Exhibit C: PROTESTS AND APPEALS PROCEDURES found on Page 15 Protests and Appeals to the County General Services Director Protests and appeals in connection with this solicitation are to be submitted to the Santa Cruz County General Services Director, who will coordinate and consult as needed with the Santa Cruz County Human Services Director, City of Santa Cruz Manager and/or Assistant and jurisdictional legal counsel. The appeal process provided herein applies solely to decisions of the Department on this CORE RFP.

Organizations shall submit their protest and/or appeal in writing within five (5) working days from the date the notification of decision is emailed by the county.  The Protest and/or appeals shall state the reason(s) for such action, stating all relevant facts, information, and evidence, and note as applicable, any of the following:
• A determination or interpretation is not in accord with the solicitation, • There was an error or abuse of discretion,
• The record includes inaccurate information, or
• A decision is not supported by the record.

New or supplemental information not included in the original submission will not be considered in the protest or appeal. No applicant shall have the right to protest and/or appeal a decision related to another organization’s submission.

Protests and appeals are preferred to be submitted by email to: [email protected] Or by U.S.P.S or other reliable mail carrier to:

General Services Department
Purchasing Division, Att: CORE RFP
701 Ocean Street, Suite 330
Santa Cruz, CA 95060
Upon receipt of an appeal and following consultation with those named above, the General Services Director shall issue a final, written decision within ten (10) working days after receipt of the protest via e-mail or written letter with an explanation of the Director’s determination.

Final Funding Decisions
At the public meetings finalizing CORE awards, held in November, the Board of Supervisors and City Council will adopt the final awards and come to a final decision on all CORE RFP award funding.

All other information remains the same.

The deadline for all questions regarding this RFP is 5:00 PM; Pacific time, July 1, 2024 Submit questions to [email protected]. No further questions will be accepted after this deadline.

RFP SUBMITTAL DEADLINE REMAINS UNCHANGED.

RFP DUE: August 2, 2024, by 5:00 PM, Pacific time. Proposals will be submitted through the online portal:
http://my.reviewr.com/site/core_investments_rfp2024
Kimberly Petersen,
Deputy Director Human Services Department
Email [email protected]
Attachment A - CORE Investments RFP Amendments
FY 2025-28 CORE Investments Procurement

25.8 Page 2 of 5

COUNTY OF SANTA CRUZ
General Services Department
Purchasing Division
701 OCEAN STREET, SUITE 330, SANTA CRUZ, CA 95060-4073
ADDENDUM #2
Request for Proposal (RFP) #2024HSD01
FOR
Collective of Results and Evidence-based (CORE) Investments Funding Cycle Fiscal Year 2025-28 Issued July 3, 2024
This addendum (#2) is being issued to revise the FY dates in Appendix F: Budget Template, Appendix G: Leveraging Template found in the RFP

1. Revised- FY dates in Appendix F: Budget Template found on Page 54 Link to Revised Budget Template FY25-26 v2.xlsx

2. Revised- FY dates in Appending G: Leveraging Template found on Page 59 Link to Revised Leveraging Template.xlsx
All other information remains the same.

The deadline for all questions regarding this RFP was Monday, July 01, 2024 by 5:00 PM; Pacific time. No further questions will be accepted after this deadline.

RFP SUBMITTAL DEADLINE REMAINS UNCHANGED.

25.9 Page 3 of 5

COUNTY OF SANTA CRUZ
General Services Department
Purchasing Division
701 OCEAN STREET, SUITE 330, SANTA CRUZ, CA 95060-4073
ADDENDUM #3
Request for Proposal (RFP) #2024HSD01
FOR
Collective of Results and Evidence-based (CORE) Investments Funding Cycle Fiscal Year 2025-28 Issued July 10, 2024
This Addendum (#3) is being issued to revise the Leveraging Example, Notes/Instruction section, and the Narrative Description section in Appendix G: Leveraging Template found in the RFP

1. Revised- Leveraging Example, Notes/Instruction section, and the Narrative Description section in Appendix G:

Leveraging Template found on Page 59.
• Link to Revised Leveraging Template.xlsx
All other information remains the same.

The deadline for all questions regarding this RFP is 5:00 PM; Pacific time, July 1, 2024 Submit questions to [email protected]. No further questions will be accepted after this deadline.

RFP SUBMITTAL DEADLINE REMAINS UNCHANGED.

25.10 Page 4 of 5

COUNTY OF SANTA CRUZ
General Services Department
Purchasing Division
701 OCEAN STREET, SUITE 330, SANTA CRUZ, CA 95060-4073
ADDENDUM #4
Request for Proposal (RFP) #2024HSD01
FOR
Collective of Results and Evidence-based (CORE) Investments Funding Cycle Fiscal Year 2025-28 Issued July 24, 2024
This addendum (#4) is being issued to provide notification of changes to the Proposal Online Reviewr Portal system, under question #14. These edits (in blue below) have changed the fields for people over 100% poverty from required to optional as shown below:

Less than 100% federal poverty level (FPL) *required*
Less than 100% federal poverty level (FPL) Percentage % 100%-200% FPL (optional answer)
100%-200% FPL Percentage %
Above 200% FPL (optional answer)
Above 200% FPL Percentage %
Total Percent Should be 100% (removed)
All other information remains the same.

The deadline for all questions regarding this RFP is 5:00 PM; Pacific time, July 1, 2024 Submit questions to [email protected]. No further questions will be accepted after this deadline.

RFP SUBMITTAL DEADLINE REMAINS UNCHANGED.

25.11 Page 5 of 5
Attachment B – CORE Investments RFP Training & Technical Assistance Schedule FY 2025-28 CORE Investments Procurement

Page 1 of 2 ends

Santa Cruz City CouncilSeptember 10, 2024

Santa Cruz City Council
September 10, 2024