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Minutes

Santa Cruz City Council
October 8, 2024

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October 8, 2024
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Approved at the October 22, 2024 City Council Meeting
City of Santa Cruz
809 Center Street
Santa Cruz, California 95060

MINUTES OF A CITY COUNCIL MEETING
October 8, 2024
12:30 PM
Mayor Keeley opened the City Council Closed Session at 12:32 p.m. in a public meeting via Zoom and in Council Chambers, for the purpose of announcing the agenda, and receiving public testimony.

Roll Call

Present: Councilmembers Newsome, Brown, Watkins, Brunner (arrived at 12:33 p.m., after roll call), Kalantari-Johnson; Mayor Keeley.

Absent: Vice Mayor Golder.

Staff: City Manager M. Huffaker, City Attorney T. Condotti, Deputy City Clerk Administrator J. Wood, City Clerk Administrator B. Bush.

Statements of Disqualification – None.

Public Comment
Mayor Keeley opened the public comment period at 12:33 p.m. There were no speakers. Mayor Keeley closed the public comment period at 12:34 p.m., at which time the meeting was closed to the public and Council adjourned to the Courtyard Conference Room.

October 8, 2024 CITY COUNCIL MINUTES 6964
Closed Session

1. Conference with Labor Negotiators (Government Code §54957.6) SEIU Temporary Employees
SEIU Service Employees
Mid Managers, OE3
Supervisors, OE3
Fire Management
Fire, IAFF
Police Management
Police Officers Association
Executives
City Negotiator - Sara De Leon
Council received a status report from the City Negotiator, and no reportable action was taken.

October 8, 2024 CITY COUNCIL MINUTES 6965
City of Santa Cruz
809 Center Street
Santa Cruz, California 95060

MINUTES OF THE ANNUAL MEETING OF THE

BOARD OF DIRECTORS OF THE INDUSTRIAL DEVELOPMENT AUTHORITY October 8, 2024
1:30 PM
Call to Order – at 1:37 p.m.

Roll Call

Present: Directors Newsome, Brown, Watkins, Brunner, Kalantari-Johnson; Chair Keeley.

Absent: Vice Chair Golder.

General Business

2. Election of Officers
MOTION: Director Kalantari-Johnson moved, seconded by Director Brunner, to elect new officers as set forth in Section 3.02 of the Industrial Development Authority bylaws as follows:

Executive Director: City Manager M. Huffaker
Treasurer: Director of Finance E. Cabell
Chair: Mayor Keeley
Vice Chair: Vice Mayor Golder
Secretary: City Clerk Administrator B. Bush
ACTION: The motion carried with the following vote.

AYES: Directors Newsome, Brown, Watkins, Brunner, KalantariJohnson; Chair Keeley.

NOES: None.

ABSENT: Vice Chair Golder.

DISQUALIFIED: None.

October 8, 2024 CITY COUNCIL MINUTES 6966
General Business (continued)

3. Minutes of the October 10, 2023 Industrial Development Authority (IDA) Chair Keeley opened the public comment period. There were no speakers.

Chair Keeley closed the public comment period.

MOTION: Director Brown moved, seconded by Director Watkins, to approve as submitted.

ACTION: The motion carried with the following vote.

AYES: Directors Newsome, Brown, Watkins, Brunner, KalantariJohnson; Chair Keeley.

NOES: None.

ABSENT: Vice Chair Golder.

DISQUALIFIED: None.

Adjournment - The Industrial Development Authority adjourned at 1:39 p.m.

October 8, 2024 CITY COUNCIL MINUTES 6967
City of Santa Cruz
809 Center Street
Santa Cruz, California 95060

MINUTES OF THE ANNUAL MEETING OF THE BOARD OF DIRECTORS OF

THE SANTA CRUZ PUBLIC IMPROVEMENT FINANCING CORPORATION October 8, 2024
At or around 1:35 PM
Call to Order – at 1:39 p.m.

Roll Call

Present: Directors Newsome, Brown, Watkins, Brunner, Kalantari-Johnson; President Keeley.

Absent: Vice President Golder.

General Business

4. Election of Officers
MOTION: Director Watkins moved, seconded by Director Newsome, to elect new officers as set forth in Section 3.02 of the Santa Cruz Public Improvement Financing Corporation bylaws as follows:

Chief Executive Officer: City Manager M. Huffaker
Chief Financial Officer: Director of Finance E. Cabell
President: Mayor Keeley
Vice President: Vice Mayor Golder
Secretary/Treasurer: City Clerk Administrator B. Bush
ACTION: The motion carried with the following vote.

AYES: Directors Newsome, Brown, Watkins, Brunner, KalantariJohnson; President Keeley.

NOES: None.

ABSENT: Vice President Golder.

DISQUALIFIED: None.

October 8, 2024 CITY COUNCIL MINUTES 6968
General Business (continued)

5. Minutes of the October 10, 2023 Santa Cruz Public Improvement Finance Corporation (SCPIFC)
President Keeley opened the public comment period. There were no speakers.

President Keeley closed the public comment period.

MOTION: Director Brown moved, seconded by Director Kalantari-Johnson, to approve as submitted.

ACTION: The motion carried with the following vote.

AYES: Directors Newsome, Brown, Watkins, Brunner, KalantariJohnson; President Keeley.

NOES: None.

ABSENT: Vice President Golder.

DISQUALIFIED: None.

Adjournment - The Santa Cruz Public Improvement Financing Corporation adjourned at 1:42 p.m.

October 8, 2024 CITY COUNCIL MINUTES 6969
City of Santa Cruz
809 Center Street
Santa Cruz, California 95060

MINUTES OF A CITY COUNCIL MEETING
October 8, 2024
At or around 1:40 PM
Call to Order – Mayor Keeley called the meeting to order at 1:42 p.m. in Council Chambers.

Roll Call

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

Absent: Vice Mayor Golder.

Staff: City Manager M. Huffaker, Assistant City Manager M. Templeton, City Attorney T. Condotti, Chief of Fire R. Oatey, Director of Public Works N.

Nguyen, Director of Planning and Community Development L. Butler, Director of Economic Development and Housing B. Lipscomb, Director of Water H. Luckenbach (via Zoom), Director of Information Technology K.

Morgan (via Zoom), Chief of Police B. Escalante, Deputy City Manager L.

Murphy, Principal Planner M. VanHua, Senior Planner C. Stanger, Code Compliance Supervisor K. Dorey, 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 1:43 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.

Garrett spoke regarding ballot measures and stated he believes the City would apply for any grant, raise any tax, and would raise any fee for any purpose to do the bidding of any moneyed interest no matter the public’s own will.

Mr. Golder spoke regarding a survey completed in 2006 for the General Plan particularly related to sports fields, and asked Council why only one ballpark has been opened within City limits in the past 60 years.

October 8, 2024 CITY COUNCIL MINUTES 6970
Oral Communications (continued)
Steve Bosworth spoke regarding the current election system stating only half of the population is happy with their representation.

Nancy Caruso spoke regarding marginal ranked-choice voting, and requested that Council form an ad-hoc committee and agendize it to discuss.

David Tannaci spoke regarding proportionate ranked-choice voting and requested that Council form a committee and agendize it for discussion.

Greg Benson spoke regarding homelessness.

At 1:58 p.m. Mayor Keeley closed Oral Communications.

Presentations

6. Mayoral Proclamation Declaring October as Domestic Violence Awareness Month
Councilmember Kalantari-Johnson read from and presented a proclamation to members of the Commission for the Prevention of Violence Against Women, Chair Long spoke.

7. Fire Prevention Week: October 6—October 14, 2024
Chief of Fire R. Oatey gave a presentation on Fire Prevention Week.

At this time, Mayor Keeley rearranged the agenda to hear Presiding Officer’s Announcements.

8. CARE Act Services Update
Nicole Coburn, Assistant County Administrator, Megan Marevich, Assistant County Council, Athena Reis, Chief Deputy of the Public Defenders’ Office, and Brenda Campbell, Behavioral Health Program Manager, provided Council with an update of the CARE Act Services.

Presiding Officer's Announcements
Statements of Disqualification – None.

Additions and Deletions – None.

October 8, 2024 CITY COUNCIL MINUTES 6971
City Attorney Report on Closed Session – See page 6964 for the report.

Council Meeting Calendar

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

At this time, Council heard item #8.

Consent Agenda
Councilmembers Newsome and Brown made a comment on item 13.

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

Unidentified person spoke regarding items 10 and 11.

Mayor Keeley closed the public comment period.

MOTION: Councilmember Kalantari-Johnson moved, seconded by Councilmember Watkins, to approve the Consent Agenda.

ACTION: The motion carried with the following vote.

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

NOES: None.

ABSENT: Vice Mayor Golder.

DISQUALIFIED: None.

10. Minutes of the September 24, 2024 City Council Meeting (CC) Motion carried to approve as submitted.

11. Resolution Extending the Emergency Declarations in Connection with the 2022/2023 Winter Storms and 2023/2024 Winter Storms (CA/CM) Resolution No. NS-30,393 was adopted extending by sixty days the Local Emergency Declarations in connection with the 2022/2023 and 2023/2024 winter storms.

October 8, 2024 CITY COUNCIL MINUTES 6972
Consent Agenda (continued)

12. Award Agreement for Plan Review and Inspection Services for Building and Safety Division. CEQA: Exempt 15061(b)(3) (PL)
This item was continued to November 19, 2024, and was not discussed.

13. Retaining Wall Reconstruction Project Budget Adjustment - 141 Archer Drive (g402402) (PW)
Resolution No. NS-30,394 was adopted amending the FY 2025 budget for Retaining Wall Reconstruction Project - 141 Archer Drive (g402402) in the amount of $359,926 to fully fund the project.

End Consent Agenda
Public Hearings

14. Housing and Urban Development (HUD) Pathways to Removing Obstacles to Housing Grant Program: Authorization for Application, Acceptance, and Appropriation of Grant Funds for Preserving and Promoting Equitable Housing Affordability and Climate Resilience in Santa Cruz, CA (CM) Sustainability and Resiliency Officer T. Wise-West spoke and responded to Council questions.

Principal Planner M. VanHua responded to Council questions.

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

Unidentified person
Garrett
Judi Grunstra
Mayor Keeley closed the public comment period.

Director of Planning and Community Development L. Butler responded to Council questions.

October 8, 2024 CITY COUNCIL MINUTES 6973
Public Hearings (continued)

14. Housing and Urban Development (HUD) Pathways to Removing Obstacles to Housing Grant Program: Authorization for Application, Acceptance, and Appropriation of Grant Funds for Preserving and Promoting Equitable Housing Affordability and Climate Resilience in Santa Cruz, CA (CM) (continued) MOTION: Councilmember Brown moved, seconded by Mayor Keeley, to:
1) Adopt Resolution No. NS-30,395 authorizing the City Manager to apply for, accept, and appropriate funds from the Housing and Urban Development (HUD) Pathways to Removing Obstacles to Housing Grant Program to carry out a project entitled “Preserving and Promoting Equitable Housing Affordability and Climate Resilience in Santa Cruz, CA.” 2) Establish an anti-displacement working group to identify partners in grants as at-risk residents.
3) Delete the following element: Incentivizing and streamlining a greater variety of housing within single-family neighborhoods using policy tools including expansion of allowances for duplexes, triplexes, fourplexes and more on property currently zoned for single-family uses, by making amendments to the City’s Zoning Code and General Plan, building codes, and supporting the purchase of property rights and affordability covenants enabled by the Affordable Housing and Climate Resilience Fund, and in partnership with community-based organizations (CBOs) and affordable housing developers.

After discussion, Councilmember Brown withdrew #3 of her motion.

Council took a break at 3:27 p.m. and returned at 3:42 p.m.

After further discussion, Councilmember Brown amended her motion, which was then seconded by Councilmember Watkins:
1) Adopt Resolution No. NS-30,395 authorizing the City Manager to apply for, accept, and appropriate funds from the Housing and Urban Development (HUD) Pathways to Removing Obstacles to Housing Grant Program to carry out a project entitled “Preserving and Promoting Equitable Housing Affordability and Climate Resilience in Santa Cruz, CA.” 2) Establish an anti-displacement working group to include partners identified in grant proposal and at-risk residents.

October 8, 2024 CITY COUNCIL MINUTES 6974
Public Hearings (continued)

14. Housing and Urban Development (HUD) Pathways to Removing Obstacles to Housing Grant Program: Authorization for Application, Acceptance, and Appropriation of Grant Funds for Preserving and Promoting Equitable Housing Affordability and Climate Resilience in Santa Cruz, CA (CM) (continued) MOTION (continued):
3) Amend the following element: Incentivizing and streamlining a greater variety of housing within single-family neighborhoods using policy tools including expansion of allowances for duplexes, triplexes, fourplexes and more on property currently zoned for single-family uses, To promote compatibility with surrounding single-family neighborhoods, develop policy tools, including local objective standards, to implement the expansion of allowances for duplexes, triplexes, fourplexes and more on property currently zoned for single-family uses resulting from recent changes to state law by making amendments to the City’s Zoning Code and General Plan, building codes, and supporting the purchase of property rights and affordability covenants enabled by the Affordable Housing and Climate Resilience Fund, and in partnership with Community-Based Organizations (CBOs) and affordable housing developers.

ACTION: The motion carried with the following vote.

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

NOES: None.

ABSENT: Vice Mayor Golder.

DISQUALIFIED: None.

October 8, 2024 CITY COUNCIL MINUTES 6975
Public Hearings (continued)

15. Ordinance Amending Santa Cruz Municipal Code Chapters 21.06, 23.04, 23.12,

23.37, and 24.08; Amending Chapter 24.16 Part 1 and Part 2; and Adding New Section 24.16.165; and Ordinance Adding New Santa Cruz Municipal Code Section 24.04.095 and Amending Santa Cruz Municipal Code Chapter 24.04, Chapter 24.08, Chapter 24.10, and Chapter 24.12; Ordinances Are Related to Accessory Dwelling Units to Maintain Consistency with State Regulations, Clarify Existing Standards, Remove Owner-Occupancy Requirements for Existing Accessory Dwelling Units, Require Properties with Accessory Dwelling Units to Enroll in the Residential Rental Inspection Service, and to Allow for the Condominium Mapping and Separate Sale of Accessory Dwelling Units and Their Associated Primary Dwellings, and Related to Other Minor Technical Changes Regarding Hearing Bodies for Design Permit Approval. Amendments to Chapter 24.04; Chapter 24.08 Parts 5, 9a, 14, 21, and 22; Chapter 24.10 Parts 3, 4, 5, 6, 6a, 7, 8, 10, 11, 12, 13, 16, 19, 21, and 24(a); and Chapter 24.12 Are Part of the Local Coastal Program Implementation Plan (LCP IP) and Will Require Approval by the California Coastal Commission Prior to Taking Effect Inside the Coastal Zone (CEQA: Exempt Pursuant to CEQA Guidelines Section 15183 as a Project Consistent With the General Plan for Which an EIR Was Certified) (PL)
Senior Planner C. Stanger and Principal Planner M. VanHua, gave a presentation and responded to Council questions.

Code Compliance Supervisor K. Dorey responded to Council questions.

Director of Planning and Community Development L. Butler responded to Council questions.

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

James Ewing-Whitman
Garrett
Hugh Fowler
Unidentified person
Eric Cromer
John Golder
Carol Polhamus
Mayor Keeley closed the public comment period.

October 8, 2024 CITY COUNCIL MINUTES 6976
Public Hearings (continued)

15. Ordinance Amending Santa Cruz Municipal Code Chapters 21.06, 23.04, 23.12,

23.37, and 24.08; Amending Chapter 24.16 Part 1 and Part 2; and Adding New Section 24.16.165; and Ordinance Adding New Santa Cruz Municipal Code Section 24.04.095 (PL) (continued)
MOTION: Councilmember Kalantari-Johnson moved to:
1) Acknowledge the environmental determination and introduce for publication Ordinance No. 2024-17 adding new Santa Cruz Municipal Code Section 24.04.095 and amending Santa Cruz Municipal Code Chapters

24.04, 24.08, 24.10, and 24.12 related to accessory dwelling units and related to other minor technical changes regarding hearing bodies for design permit approval and comprising parts of the LCP IP with amendments to remove rental inspection registration, and consider a phased approach to the removal of the owner-occupancy;
2) Acknowledge the environmental determination and introduce for publication Ordinance No. 2024-18 amending Santa Cruz Municipal Code Chapters 21.06, 23.04, 23.12, 23.37, and 24.08; amending Chapter 24.16 Part 1 and Part 2; adding new Section 24.16.165 related to accessory dwelling units, and rescinding Temporary Ordinance Nos. 2022-22 and 2023-01 with amendments to remove rental inspection registration, and consider a phased approach to the removal of the owner-occupancy; and 3) Direct the City Manager to submit the LCP IP amendments to the California Coastal Commission for approval, should they be formally adopted as part of a second reading.

The motion failed due to lack of a second.

MOTION: Councilmember Watkins moved, seconded by Councilmember Newsome, to:
1) Acknowledge the environmental determination and introduce for publication Ordinance No. 2024-17 adding new Santa Cruz Municipal Code Section 24.04.095 and amending Santa Cruz Municipal Code Chapters

24.04, 24.08, 24.10, and 24.12 related to accessory dwelling units and related to other minor technical changes regarding hearing bodies for design permit approval and comprising parts of the LCP IP with the following amendments to remove the owner-occupancy requirements for accessory dwelling units constructed before 2020 to comply with state law:

October 8, 2024 CITY COUNCIL MINUTES 6977
Public Hearings (continued)

15. Ordinance Amending Santa Cruz Municipal Code Chapters 21.06, 23.04, 23.12,

23.37, and 24.08; Amending Chapter 24.16 Part 1 and Part 2; and Adding New Section 24.16.165; and Ordinance Adding New Santa Cruz Municipal Code Section 24.04.095 (PL) (continued)
MOTION (continued):

Title:

AN ORDINANCE OF THE CITY OF SANTA CRUZ ADDING NEW SANTA CRUZ MUNICIPAL CODE SECTION 24.04.095 - NOTICE OF ADMINISTRATIVE

COASTAL PERMIT FOR ACCESSORY DWELLING UNITS AND AMENDING SANTA CRUZ MUNICIPAL CODE CHAPTER 24.04 – ADMINISTRATION; CHAPTER 24.08 – LAND USE PERMITS AND FINDINGS; CHAPTER 24.10 – LAND USE DISTRICTS; AND CHAPTER 24.12 – COMMUNITY DESIGN

RELATED TO ACCESSORY DWELLING UNITS TO MAINTAIN CONSISTENCY

WITH STATE REGULATIONS, CLARIFY EXISTING STANDARDS, REMOVE

OWNER-OCCUPANCY REQUIREMENTS FOR EXISTING ACCESSORY

DWELLING UNITS, AND REQUIRE PROPERTIES WITH RENTED ACCESSORY

DWELLING UNITS TO ENROLL IN THE RESIDENTIAL RENTAL INSPECTION

SERVICE, AND TO ALLOW FOR THE CONDOMINIUM MAPPING AND

SEPARATE SALE OF ACCESSORY DWELLING UNITS AND THEIR ASSOCIATED PRIMARY DWELLINGS; AND RELATED TO OTHER MINOR TECHNICAL CHANGES REGARDING HEARING BODIES FOR DESIGN PERMIT APPROVAL.

AMENDMENTS TO CHAPTER 24.04; CHAPTER 24.08 PARTS 5, 9A, 14, 21, AND 22; CHAPTER 24.10 PARTS 3, 4, 5, 6, 6A, 7, 8, 10, 11, 12, 13, 16, 19, 21, AND 24(A); AND CHAPTER 24.12 ARE PART OF THE LOCAL

COASTAL PROGRAM IMPLEMENTATION PLAN (LCP IP) AND WILL REQUIRE

APPROVAL BY THE CALIFORNIA COASTAL COMMISSION PRIOR TO TAKING EFFECT INSIDE THE COASTAL ZONE. (CEQA: EXEMPT PURSUANT TO CEQA GUIDELINES SECTION 15183 AS A PROJECT CONSISTENT WITH THE GENERAL PLAN FOR WHICH AN EIR WAS CERTIFIED.)

Page 2 ends

WHEREAS, in 2023, AB 1033 (Ting) was signed into law, allowing local jurisdictions to create an ordinance to allow for the separate sale of accessory dwelling units and their associated primary dwellings as condominiums; and
October 8, 2024 CITY COUNCIL MINUTES 6978
Public Hearings (continued)

15. Ordinance Amending Santa Cruz Municipal Code Chapters 21.06, 23.04, 23.12,

23.37, and 24.08; Amending Chapter 24.16 Part 1 and Part 2; and Adding New Section 24.16.165; and Ordinance Adding New Santa Cruz Municipal Code Section 24.04.095 (PL) (continued)
MOTION (continued):
2) Acknowledge the environmental determination and introduce for publication Ordinance No. 2024-18 amending Santa Cruz Municipal Code Chapters 21.06 and 24.08; amending Chapter 24.16 Part 1 and Part 2; and rescinding Temporary Ordinance Nos. 2022-22 and 2023-01 with the following amendments to comply with state law, to clarify existing standards, and to remove the requirement to register for the rental inspection program if the accessory dwelling unit is not being rented:

Title:

AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING SANTA CRUZ MUNICIPAL CODE CHAPTERS 21.06 - RESIDENTIAL RENTAL DWELLING UNIT INSPECTION AND MAINTENANCE PROGRAM, 23.04 – SUBDIVISION ORDINANCE – GENERAL PROVISIONS, 23.12 – MAPS REQUIRED, 23.37 – COMMUNITY HOUSING PROJECTS, AND 24.08 - LAND USE PERMITS AND FINDINGS; AMENDING CHAPTER 24.16 PART 1 – INCLUSIONARY HOUSING REQUIREMENTS AND PART 2 – ACCESSORY DWELLING UNITS; ADDING NEW SECTION 24.16.165 RELATED TO ACCESSORY DWELLING UNITS TO

MAINTAIN CONSISTENCY WITH STATE REGULATIONS, CLARIFY EXISTING

STANDARDS, REMOVE OWNER-OCCUPANCY REQUIREMENTS FOR EXISTING

ACCESSORY DWELLING UNITS, AND TO REQUIRE PROPERTIES WITH

ACCESSORY DWELLING UNITS THAT ARE RENTED TO ENROLL IN THE

RESIDENTIAL RENTAL INSPECTION SERVICE, AND TO ALLOW FOR THE CONDOMINIUM MAPPING ; AND SEPARATE SALE OF ACCESSORY DWELLING UNITS AND THEIR ASSOCIATED PRIMARY DWELLINGS; AND RESCINDING TO REPEAL ORDINANCE NOS. 2022-22 AND 2023-01. (CEQA: EXEMPT PURSUANT TO CEQA GUIDELINES SECTION 15183 AS A PROJECT

CONSISTENT WITH THE GENERAL PLAN FOR WHICH AN EIR WAS
CERTIFIED.)

Page 1 ends

WHEREAS, in 2023, AB 1033 (Ting) was signed into law, allowing local jurisdictions to create an ordinance to allow for the separate sale of accessory dwelling units and their associated primary dwellings as condominiums; and
October 8, 2024 CITY COUNCIL MINUTES 6979
Public Hearings (continued)

15. Ordinance Amending Santa Cruz Municipal Code Chapters 21.06, 23.04, 23.12,

23.37, and 24.08; Amending Chapter 24.16 Part 1 and Part 2; and Adding New Section 24.16.165; and Ordinance Adding New Santa Cruz Municipal Code Section 24.04.095 (PL) (continued)
MOTION (continued):

Amend Section 1 Chapter 21.06.030(B) From:

The provisions of this chapter shall not apply to rooms rented to single individuals in an owner-occupied single-family residence, hotel or motel units subject to the transient occupancy tax ordinance codified at Chapter 3.28, units inspected by another governmental authority for housing and safety standards, newly constructed multiple dwelling units (including townhouse dwelling groups and condominium projects that are rented) for a period of five years from the issuance of certificate of occupancy, and mobile home parks.

To:

The provisions of this chapter shall not apply to legal accessory dwelling units that are not rented, rooms rented to single individuals in an owneroccupied single-family residence, hotel or motel units subject to the transient occupancy tax ordinance codified at Chapter 3.28, units inspected by another governmental authority for housing and safety standards, newly constructed multiple dwelling units (including townhouse dwelling groups and condominium projects that are rented) for a period of five years from the issuance of certificate of occupancy, and mobile home parks.

Remove Sections 2—5, renumbering all subsequent sections.

October 8, 2024 CITY COUNCIL MINUTES 6980
Public Hearings (continued)

15. Ordinance Amending Santa Cruz Municipal Code Chapters 21.06, 23.04, 23.12,

23.37, and 24.08; Amending Chapter 24.16 Part 1 and Part 2; and Adding New Section 24.16.165; and Ordinance Adding New Santa Cruz Municipal Code Section 24.04.095 (PL) (continued)
MOTION (continued):

Amend Section 7 (previously Section 11) Chapter 24.16.020(7) From:

For the purposes of calculating the number and type of inclusionary units required by this section, rental accessory dwelling units that are not eligible for separate conveyance, constructed either as part of the initial development or anytime thereafter, shall be subject to the requirements of subsection (5), and ownership accessory dwelling units or rental accessory dwelling units that are mapped, created either as part of the initial development or anytime thereafter shall be subject to the requirements of subsections (3) and (4). The calculation shall be based on the total resulting number of accessory dwelling units on the original lot. The inclusionary requirement for accessory dwelling units constitutes a separate inclusionary requirement than that of the primary residential use, such that only accessory dwelling units shall count toward the inclusionary requirement calculation for the accessory dwelling units on the lot, and only the residential units comprising the primary residential use shall count toward the inclusionary requirement calculation for the primary residential use on the lot. The accessory dwelling unit inclusionary requirement shall be met with accessory dwelling units or as otherwise permitted under Section 24.16.030, including, but not limited to payment of the in-lieu fee.

To:

For the purposes of calculating the number and type of inclusionary units required by this section, rental accessory dwelling units constructed either as part of the initial development or anytime thereafter, shall be subject to the requirements of subsection (5). The inclusionary requirement for accessory dwelling units constitutes a separate inclusionary requirement than that of the primary residential use, such that only accessory dwelling units shall count toward the inclusionary requirement calculation for the accessory dwelling units on the lot, and only the residential units comprising the primary residential use shall count toward the inclusionary requirement calculation for the primary residential use on the lot. The accessory dwelling unit inclusionary requirement shall be met with accessory dwelling units or as otherwise permitted under Section 24.16.030, including, but not limited to payment of the in-lieu fee.

October 8, 2024 CITY COUNCIL MINUTES 6981
Public Hearings (continued)

15. Ordinance Amending Santa Cruz Municipal Code Chapters 21.06, 23.04, 23.12,

23.37, and 24.08; Amending Chapter 24.16 Part 1 and Part 2; and Adding New Section 24.16.165; and Ordinance Adding New Santa Cruz Municipal Code Section 24.04.095 (PL) (continued)
MOTION (continued):

Amend Section 14 (previously Section 18) Chapter 24.16.150(1) From:

For any unit that is not approved for separate sale under the provisions of 24.16.165: the accessory dwelling unit shall not be sold separately To:

For any unit that is not approved for separate sale under the provisions of Government Code Sections 66340-66341: the accessory dwelling unit shall not be sold separately.”
Amend Section 14 (previously Section 18) Chapter 24.16.150(7) From:

The accessory dwelling unit and primary dwelling unit shall be registered with the residential rental dwelling unit inspection and maintenance program.

To:

If rented, the accessory dwelling unit and primary dwelling unit shall be registered with the residential rental dwelling unit inspection and maintenance program.

Add item 8 to Chapter 24.16.150 of Section 14 (previously 18):

Occupancy.
a. For accessory dwelling units permitted on or after January 1, 2020, owner occupancy shall not be required and no land use agreement requiring owner occupancy shall be recorded or enforced on properties containing these units.

October 8, 2024 CITY COUNCIL MINUTES 6982
Public Hearings (continued)

15. Ordinance Amending Santa Cruz Municipal Code Chapters 21.06, 23.04, 23.12,

23.37, and 24.08; Amending Chapter 24.16 Part 1 and Part 2; and Adding New Section 24.16.165; and Ordinance Adding New Santa Cruz Municipal Code Section 24.04.095 (PL) (continued)
MOTION (continued):
b. For accessory dwelling units permitted on or before December 31, 2019, the property owner or an adult member of the property owner’s immediate family, limited to the property owner’s spouse, adult children, parents, or siblings, and subject to verification by the city, shall occupy either the primary or accessory dwelling as his or her principal place of residence except under circumstances as established by resolution by the city council that may allow the property owner or the executor or trustee of the property owner’s estate to apply to the city council for approval of a temporary change in use allowing both units to be rented for a period of no more than two years with a possible extension of one year by the planning director if circumstances warrant. Upon the expiration of the rental period, the property owner and/or the property owner’s immediate family member, as specified above, shall reoccupy the property, or the property owner shall cease renting one of the units, or shall demolish the accessory dwelling unit, or shall sell the property to a buyer who will reside on the property. A fee to cover the costs of processing such a request shall be in an amount established by resolution by the city council.
c. For purposes of this chapter, the property owner is the majority owner of the property as shown in the most recent Santa Cruz County assessor’s roll.
d. If there is more than one property owner of record, the owner with the majority interest in the property shall be deemed the property owner for purposes of this chapter. Any property owner of record holding an equal share interest in the property may be deemed the majority property owner if no other property owner owns a greater interest. (For example, if the property is owned by two people, each with a fifty percent interest, either of the two owners may be deemed the property owner for purposes of the owner occupancy requirement. If three people own the property, each with a thirtythree and one-third percent interest, any one of the three may be deemed the property owner for purposes of the owner occupancy requirement.)
October 8, 2024 CITY COUNCIL MINUTES 6983
Public Hearings (continued)

15. Ordinance Amending Santa Cruz Municipal Code Chapters 21.06, 23.04, 23.12,

23.37, and 24.08; Amending Chapter 24.16 Part 1 and Part 2; and Adding New Section 24.16.165; and Ordinance Adding New Santa Cruz Municipal Code Section 24.04.095 (PL) (continued)
MOTION (continued):

Remove Section 16 (previously 20), renumbering all subsequent sections. 3) Direct the City Manager to submit the LCP IP amendments to the California Coastal Commission for approval, should they be formally adopted as part of a second reading; and
4) Direct staff to return to Council in two years with a report detailing the regional and statewide landscape and data related to ADU condo conversions and how it has worked in other jurisdictions.

ACTION: The motion carried with the following vote.

AYES: Councilmembers Newsome, Brown, Watkins; Mayor Keeley.

NOES: Councilmembers Brunner, Kalantari-Johnson.

ABSENT: Vice Mayor Golder.

DISQUALIFIED: None.

October 8, 2024 CITY COUNCIL MINUTES 6984
General Business

16. Santa Cruz County Civil Grand Jury Response (CM)
Mayor Keeley opened the public comment period. The following person spoke.

Gillian Greensite
Mayor Keeley closed the public comment period.

MOTION: Councilmember Watkins moved, seconded by Councilmember Newsome, 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.

Councilmember Brown requested to split the motion so that the report on Preventing Rape and Domestic Violence was its own motion. Mayor Keeley agreed.

MOTION: Councilmember Watkins moved, seconded by Councilmember Newsome, to authorize the Mayor to submit the response to the Santa Cruz Civil Grand Jury on behalf of the Santa Cruz City Council for the Honoring Commitments to the Public report.

ACTION: The motion carried with the following vote.

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

NOES: None.

ABSENT: Vice Mayor Golder.

DISQUALIFIED: None.

MOTION: Councilmember Watkins moved, seconded by Councilmember Newsome, to authorize the Mayor to submit the response to the Santa Cruz Civil Grand Jury on behalf of the Santa Cruz City Council for the Housing for Whom report.

ACTION: The motion carried with the following vote.

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

NOES: None.

ABSENT: Vice Mayor Golder.

DISQUALIFIED: None.

October 8, 2024 CITY COUNCIL MINUTES 6985
General Business (continued)

16. Santa Cruz County Civil Grand Jury Response (CM) (continued) MOTION: Councilmember Watkins moved, seconded by Councilmember Newsome, to authorize the Mayor to submit the response to the Santa Cruz Civil Grand Jury on behalf of the Santa Cruz City Council for the Preventing Rape and Domestic Violence report.

ACTION: The motion carried with the following vote.

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

NOES: Councilmember Brown.

ABSENT: Vice Mayor Golder.

DISQUALIFIED: None.

Adjournment – Councilmember Kalantari-Johnson moved, seconded by Councilmember Newsome, to adjourn. By consensus City Council adjourned at 5:20 p.m.

RESPECTFULLY SUBMITTED: ss/Julia Wood, Deputy City Clerk Administrator, ATTEST: ss/Bonnie Bush, City Clerk Administrator, APPROVED: ss/Fred Keeley, Mayor.

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