Agenda packet — Santa Cruz City Council, October 22, 2024 (part 1 of 3)

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

CITY COUNCIL AGENDA
Regular Meeting - October 22, 2024
Updated October 17, 2024 – Item 17
Updated October 18, 2024 – Item 18
11:30 A.M. CLOSED SESSION, ZOOM/COURTYARD CONFERENCE ROOM 12:00 P.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, October 21st
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, October 20th by emailing the Mayor and the City Clerk.

Approval will be confirmed via email.

October 22, 2024 City Council 2
[email protected] [email protected]
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-council-meetings 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. 11:30 AM
Statements of Disqualification
Closed Session

1. Conference with Legal Counsel – Liability Claims (Government Code §54956.95)
1) Claimant: Rosemarie Patricia Slawinski
2) Claimant: Keyan Zokaie
3) Claimant: Judith Anne Baldwin
4) Claimant: Noah J. Sweeters
5) Claimant: Rebecca Barraza
6) Claimant: Barbara Lawrence
Claims against the City of Santa Cruz

2. Conference With Legal Counsel – Anticipated Litigation (Gov’t. Code §54956.9(d)(2))
Significant exposure to litigation (one potential case to be discussed) October 22, 2024 City Council 3
City Council
12:00 PM
Call to Order
Roll Call
Oral Communications Announcement – Members of the public may address Council on matters not on the agenda, but within the jurisdiction of the Council. 30 minutes is allocated for Oral Communications. No extra time for groups will be granted.

Oral Communications
Presiding Officer's Announcements
Statements of Disqualification
Additions and Deletions
City Attorney Report on Closed Session
Council Meeting Calendar

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

Consent Agenda

4. Minutes of the October 8, 2024 City Council Meeting (CC) Motion to approve as submitted.

5. Resolution Setting the Regular Meeting Schedule for the Calendar Year 2025 (CC)
Motion to adopt a resolution setting the 2025 City Council meeting calendar.

October 22, 2024 City Council 4
Consent Agenda (continued)

6. Santa Cruz County Civil Grand Jury Response (CM)
Motion to authorize the Mayor to submit the required response to the Santa Cruz Civil Grand Jury on behalf of the Santa Cruz City Council for the Honoring Commitments to the Public report.

7. License Agreement with Bogard Construction, Inc. for Construction Staging and Access on 125 Coral Street (EDH)
Motion to authorize and direct the City Manager to negotiate and execute License and Lease Agreement(s) and any amendment(s) or extension(s) thereto of a non-substantive nature, in a form acceptable to the City Attorney, 1) with Bogard Construction, Inc. (“Developer”) for construction staging and access at 125 Coral Street (APNs 008-171- 24, and -25); and, 2) with James P. Gillespie and Boni Jean Gillespie, Trustees of Gillespie Revocable Trust, to amend existing lease terms to enable Developer’s use of the property.

8. Year-End Budget Adjustment for Fiscal Year (FY) 2024 (FN) Motion to adopt a resolution amending the FY 2024 budget adjusting annual revenues and expenditures in various funds.

9. Liability Claims Filed Against the City of Santa Cruz (FN) Motion to reject the liability claims of 1) Rosemarie Patricia Slawinski, 2) Keyan Zokaie, 3) Judith Anne Baldwin, 4) Noah J. Sweeters, 5) Rebecca Barraza, and 6) Barbara Lawrence, based on staff recommendation.

10. Request to Hire a CalPERS Retired Annuitant to Fulfill Interim Water Assistant Finance Director Duties During and After Recruitment (HR) Motion to approve a contract to hire a CalPERS Retired Annuitant to fulfill Interim Assistant Finance Director duties for the Water Department while position is vacant and during recruitment and after for cross-training.

October 22, 2024 City Council 5
Consent Agenda (continued)

11. Escalona Drive Storm Drain Rehabilitation (c401610) – Authorization to Advertise and Award (PW)
Motion to approve the Plans and Specifications for the Escalona Drive Storm Drain Rehabilitation (c401610), authorize staff to advertise for bids, award the contract, and find the project exempt under the California Environmental Quality Act. The City Manager is hereby authorized and directed to execute the contract in a form approved by the City Attorney. The Director of Public Works is authorized to execute change orders within the approved project budget.

12. Consulting Services for 800 West Cliff Drive - Request for Proposals and Award Contract (PW)
Motion to:
1) Adopt a resolution to amend the FY 2025 budget and appropriate funds in the amount of $2,000,000 to the 800 West Cliff Drive Road Realignment Project (c402515), with approximately 88% of project funding from reimbursement from the Federal Highway Administration Permanent Repair Program and the remaining 12% City match from Fund 221 – Gas Tax for consulting services for 800 West Cliff Drive; and 2) Authorize the issuance of a Request for Proposals (RFP) for Engineering, Environmental/Permitting, Geotechnical and Right of Way services and direct the City Manager to execute a Professional Service Agreement in a form acceptable to the City Attorney. The Public Works Director is authorized to execute contract amendments within the project budget.

13. Highway Safety Improvement Program (HSIP) Cycle 12 - Grant Applications (PW)
Motion to apply for, accept, and appropriate funds from the California Department of Transportation Highway Safety Improvement Program (HSIP) Cycle 12 for three projects: Nonsignalized Intersection Improvement Project, Water Street Protected Bike Lanes, and Citywide Intersection Daylighting.

October 22, 2024 City Council 6
Consent Agenda (continued)

14. City Arterial and Collector Street Reconstruction and Overlay (c400809), Bikeway Striping Minor Improvement Maintenance (m409335), and Bay Drive Protected Bike Lanes and Pedestrian Path (c402304) – Budget Adjustment (PW)
Motion to adopt a resolution to amend the FY 2025 budget and appropriate funds in the amount of $419,949 from unanticipated revenue for expenses for City Arterial and Collector Street Reconstruction and Overlay (c400809), Bikeway Striping Minor Improvement Maintenance (m409335), and Bay Drive Protected Bike Lanes and Pedestrian Path (c402304).

End Consent Agenda
General Business

15. Ordinance Rescinding Uncodified Ordinance No. 1440 – An Ordinance Establishing the Planning Commission and Amending Chapter 18.41.020 – Appointment of Board of Building Appeals and Length of Term (FN) Motion to introduce for publication an ordinance amending Chapter

18.41.020 – Appointment of Board of Building Appeals and Length of Term, and rescinding uncodified Ordinance No. 1440 – An Ordinance establishing the Planning Commission.

16. Downtown Plan Expansion, Downtown Density Bonus, and AntiDisplacement Policy. Location: South of Laurel Street, Roughly Between Center/Cedar Streets and the San Lorenzo River (in Council District 4) and, for a Future Anti-Displacement Policy, Citywide.

Applicant: City of Santa Cruz. (PL)
Motion to:
1) Direct staff to include the Downtown Density Bonus, as discussed in this report, in the forthcoming amendments to the Downtown Specific Plan as a part of the Downtown Plan Expansion Project;
2) Consider options for a funding source that could be used to create a local affordable housing tenant preference for households at risk of displacement; and
3) Acknowledge that the Council’s direction as part of this action is exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15306 – Information Gathering.

October 22, 2024 City Council 7
General Business (continued)
Attachments for the below item have been updated.

17. Amending the City of Santa Cruz Personnel Complement and Classification and Compensation Plans for the Economic Development and Housing, Finance, Fire, Human Resources, Information Technology, Parks and Recreation, Planning and Community Development, Police, Public Works, and Water Departments (HR/FN)
Motion to:
1) Adopt a resolution amending the City’s Classification and Compensation Plans for the FY 2025 budget personnel complement by implementing approved compensation adjustments and position changes in multiple departments as identified in Exhibit 1; and 2) Adopt a resolution amending the FY 2025 budget in the amount of $1,866,590 to fund compensation increases related to the 2021 Compensation Study as identified in Exhibit A.

The below item is removed and will not be discussed.

18. Homeless Garden Project Request for a General Plan Amendment, Zoning Map Amendment, and Local Coastal Program Amendment to Facilitate Continuation and Expansion of Uses at Their Existing Location on the East Side of Shaffer Road, West of Antonelli Pond (2394 Delaware Avenue). Owner: Ronald Swenson. CEQA: Not a Project.

Also, Exempt Pursuant to CEQA Guidelines Section 15306 (Information Collection) and 15061(b)(3) (Common Sense Exemption). (CN) Motion to:
1) Direct staff to process, as expeditiously as possible, the following request from the Homeless Garden Project (HGP), based on HGP’s application:
a) Amend the General Plan 2030 Map to designate the northern 4 acres of the 11-acre Swenson parcel as Agriculture/Grazing (AG) land. b) Amend the Zoning Ordinance to classify these 4 acres as E-A Exclusive Agricultural District.
c) Adopt a Local Coastal Program Amendment for submission to the Coastal Commission to designate these 4 acres as
Agriculture/Grazing (AG) land.
2) Direct staff to address any “no net loss” issue related to Recommendation #1 above when the proposed changes return to the Council for final action; and
October 22, 2024 City Council 8
General Business (continued)

Also, Exempt Pursuant to CEQA Guidelines Section 15306 (Information Collection) and 15061(b)(3) (Common Sense Exemption). (CN) (continued)
Continued from page 7
3) Approve of the CEQA determination contained in this agenda report.

The Council’s direction is not a “project” under CEQA. And, even if it were considered to be a CEQA “project” the following exemptions apply: CEQA Guidelines Section 15306 (collection of data, research, and evaluation); and “common sense” exemption (no possibility that the Council’s direction may have a significant effect on the environment.”) (14 Cal Code Regs 15061(b)(3)).

October 22, 2024 City Council 9
Public Hearings

19. 2nd Reading and Final Adoption of Ordinance No. 2024-17 Adding Santa Cruz Municipal Code Section 24.04.095, and Amending Chapters 24.04,

24.08, 24.10, and 24.12, and 2nd Reading and Final Adoption of Ordinance No. 2024-18 Amending Santa Cruz Municipal Code Chapters

21.06, and 24.08; Amending Chapter 24.16 Part 1 and Part 2.

Ordinances Are Related to Accessory Dwelling Units to Maintain Consistency with State Regulations, Clarify Existing Standards, and Require Properties with Rented Accessory Dwelling Units to Enroll in the Residential Rental Inspection Service, 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)
Motion to:
1) Adopt 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; and 2) Adopt Ordinance No. 2024-18 amending Santa Cruz Municipal Code Chapters 21.06 and 24.08 and amending Chapter 24.16 Part 1 and Part 2 related to accessory dwelling units, and rescinding Temporary Ordinance Nos. 2022-22 and 2023-01.
3) Adopt a resolution authorizing the City Manager to submit the proposed amendments within Ordinance No. 2024-17 that are part of the Local Coastal Program as Local Coastal Implementation Plan amendments to the California Coastal Commission for final certification.

October 22, 2024 City Council 10
Public Hearings (continued)

20. Review and Adopt Revised Citywide Fee Update for User Fees – Phase Two for the Departments of Planning and Community Development – Building and Safety Division, Economic Development and Housing, Public Works – Engineering Division, Fire – Marine Safety Division and Prevention Division Schedule. Location: Citywide. CEQA: Exempt 15061(b)(3) (PL/FN)
Motion to:
1) Adopt a resolution:
a) Revising the title of the fee schedule to “Citywide Fee Schedule,” adding all approved Phase Two user fees effective January 1, 2025, confirming annual October Consumer Price Index (CPI) increases and new fees go into effect annually in January, and acknowledging the California Environmental Quality Act exemption for this item;
b) Amending Resolution No. NS-29,231 “A Resolution of the City Council of Adopting the Phase One Fee Increases and the Master Fee Schedule For Fire And Police Departments and the Planning, Public Works Engineering and Special Events Division Fees” with updates to the fees for service for the Planning and Community Development Department – Building and Safety Division, Economic Development and Housing Department, Public Works Department – Engineering Division, Fire Department – Marine Safety Division and Prevention are shown in track changes on Exhibit A to the resolution, “Proposed Changes to Fees for Service”, which reduces, increases, eliminates, or adds fees for service, and these proposed fees do not exceed the cost of providing the services specified; c) Amending Resolution No. NS-30,161 "Resolution of the City Council of the City of Santa Cruz rescinding Resolution No. NS27,559, Expanding the Application of a Six Percent (6%) Technology Surcharge to Certain Fees Charged by the Planning and Community Development, Finance, Public Works, Water, Fire, and Parks and Recreation Departments, and Directing Staff to Take Related Implementing Actions” for the Technology Surcharge of 6% to be imposed for departments and programs utilizing the land management software and incorporate said increase to applicable service fees into the Citywide Fee Schedule, with a footnote that the annual Consumer Price Index increase does not apply to the Technology Surcharge;
October 22, 2024 City Council 11
Public Hearings (continued)

20. Review and Adopt Revised Citywide Fee Update for User Fees – Phase Two for the Departments of Planning and Community Development – Building and Safety Division, Economic Development and Housing, Public Works – Engineering Division, Fire – Marine Safety Division and Prevention Division Schedule. Location: Citywide. CEQA: Exempt 15061(b)(3) (PL/FN) (continued)
Continued from page 10
d) Amend Resolution No. NS-29,798 “Resolution of the City Council of the City of Santa Cruz Revising Code Compliance Related Fees to Flat Rates; Revising the Unified Master Fee Schedule (UMFS) for Planning, Building, Code, and Rental Divisions; and Changing Any Reference to Consumer Price Index Adjustments Occurring Annually in July to Occur in January and Referencing All Fees as Part of the UMFS and Rescinding Resolution No. NS-29,793” to update the Fee Schedule to include the changes set forth in Exhibit A to the resolution, as it relates to the Building and Safety Division, including increasing fees that in 2025 will be under 100 percent cost recovery, increasing to 100 percent cost recovery by 2027 as specified in Exhibit A;
e) Amend Resolution No. NS-28,085 “Resolution of the City Council of the City of Santa Cruz Adopting a New Inclusionary Housing Program Administrative Fee” to update the Citywide Fee Schedule to include the changes as set forth in Exhibit A to the resolution as it relates to the Inclusionary Housing Program; and
f) Amend Resolution No. NS-30,069 “Resolution of the City Council of the City of Santa Cruz Adopting a Fee Schedule for the Regulation of Parklets to Be Placed in the Public Right of Way” to update the Citywide Fee Schedule to include the changes as set forth in Exhibit A to the resolution as it relates to the Parklet Fee Schedule; and
2) Authorize the City Manager to approve budgetary adjustments for the Phase Two fee amendments.

Adjournment
October 22, 2024 City Council 12

INFORMATION ITEMS PREVIOUSLY DISTRIBUTED TO CITY COUNCILMEMBERS ADDENDUM TO CITY COUNCIL AGENDA – OCTOBER 22, 2024

21. Parks and Recreation Department: Santa Cruz Museum of Natural History Building Improvement Project Update - 10/22/24 (PKFYI 081)

MAYOR'S PROCLAMATIONS
ADDENDUM TO CITY COUNCIL AGENDA – OCTOBER 22, 2024

22. Proclaiming the month of October 2024 as “Domestic Violence Awareness Month” and encouraging members of our community to participate in activities during the month of October to raise awareness and work together to prevent violence in our world.

23. Proclaiming Saturday, October 5, 2024 as “Santa Cruz and Shingu Sister Cities Day” and encouraging all citizens to join in celebrating this momentous anniversary between our two cities.

Advisory Body Appointments
The following positions are either currently vacant or the terms are due to expire.

Council will make appointments at a future meeting.

Children’s Fund Oversight Committee One opening – youth organization representative County Latino Affairs Commission One opening – at-large nomination Downtown Commission One opening – at-large nomination
October 22, 2024 City Council 13
Public Hearing
If, in the future, you wish to challenge in court any of the matters on this agenda for which a public hearing is to be conducted, you may be limited to raising only those issues which you (or someone else) raised orally at the public hearing or in written correspondence received by the City at or before the hearing.

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

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
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
City Council Meeting Calendar for 2024
December 10
City Hall Closure - Thanksgiving Day
City Hall Closure - Day After Thanksgiving Day
Please note: Meeting times are not final and are likely to change December 24 Meeting Cancelled - CITY COUNCIL DARK
City Hall Closure - Christmas Day
November 19
City Hall Closure - Veteran's Day (observed)
Hanukkah (City observed - sundown to sundown)

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

MINUTES OF A CITY COUNCIL MEETING
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.

4.1 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.

4.2 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.

4.3 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.

4.4 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.

4.5 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.

4.6 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.

4.7 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.

4.8 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.

4.9 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

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.

4.10 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.

4.11 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.

4.12 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.

4.13 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:

4.14 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

4.15 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

4.16 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.

4.17 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.

4.18 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.

4.19 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.)

4.20 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.

4.21 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.

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.

4.22 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:

Julia Wood, Deputy City Clerk Administrator
Attest:

Bonnie Bush, City Clerk Administrator
Approved:

Fred Keeley, Mayor

4.23 City Council

AGENDA REPORT
DATE: 09/26/2024
AGENDA OF: 10/22/2024
DEPARTMENT: City Clerk
SUBJECT: Resolution Setting the Regular Meeting Schedule for the Calendar Year 2025 (CC)
RECOMMENDATION: Motion to adopt a resolution setting the 2025 City Council meeting calendar.

BACKGROUND: Each year the City Council adopts its regular meeting schedule, which includes calling for a mid-year break in July and an end-of-year break in December.

DISCUSSION: The regular meeting dates of July 8 and 22 will be cancelled, as well as the second regular meeting on December 23. Cancellation of these meetings enables both staff and Councilmembers to plan ahead with respect to work flow. A July recess also applies to City advisory bodies, unless a time-sensitive issue, such as an appeal, requires a decision prior to the next regular meeting.

Council Policy 14.6 "Jewish Holidays - Meeting and Event Scheduling" sets forth City observance of the Jewish holidays of Passover, Rosh Hashanah, Yom Kippur, and Hanukkah to be the first day only, beginning at sundown of the previous day. In 2025, the September 23rd Council meeting conflicts with the City’s observation of Rosh Hashanah, which is observed from sundown on September 22nd to sundown on September 23rd. Therefore, the regular meeting of September 23rd meeting will be moved to September 30, 2025.

In addition, due to the November 11th Council meeting conflicting with the observation of Veteran’s Day as well as the November 25th Council meeting falling within the week of the Thanksgiving holiday, it is proposed that Council cancel the regular meetings of November 11th and 25th and add a regular meeting on November 18th.

Council Study Sessions and special meetings will be agendized as needed.

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

HEALTH IN ALL POLICIES (HiAP): Not applicable.

FISCAL IMPACT: None.

5.1 Prepared By:

Bonnie Bush
City Clerk
Submitted By:

Michelle Templeton
Assistant City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOC

2. 2025 CITY COUNCIL MEETING CALENDAR.PDF

5.2 RESOLUTION NO. NSRESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ SETTING THE 2025 CITY COUNCIL MEETING SCHEDULE
WHEREAS, the City Council meets regularly on the second and fourth Tuesdays of each month; and
WHEREAS, in anticipation of a lack of quorum and possible lack of items needing immediate Council action, the City Council will cancel two regular meetings on July 8 and July 22, and the regular meeting on December 23 to allow for proper scheduling of workflow and vacations; and
WHEREAS, per Council Policy 14.6 “Jewish Holidays – Meeting and Event Scheduling,” the September 23, 2025 regular meeting date conflicts with the observation of Rosh Hashanah (sundown on September 22, 2025 to sundown on September 23, 2025), therefore, the September 23, 2025 meeting is cancelled and September 30, 2025 is added as a regular meeting; and WHEREAS, due to the November 11, 2025 Council meeting conflicting with the observation of Veteran’s Day as well as the November 25, 2025 Council meeting falling within the week of the Thanksgiving holiday, it is proposed that Council cancel the regular meetings of November 11th and 25th and add a regular meeting on November 18th.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz that two regular meetings on July 8 and July 22, and the second regular meeting on December 23 are hereby cancelled, the meeting that would regularly fall on September 23, 2025 will be held on September 30, 2025, and the meetings that would regularly fall on November 11, 2025 and November 25, 2025.

BE IT FURTHER RESOLVED the City Council hereby approves the 2024 City Council Meeting Schedule as submitted.

PASSED AND ADOPTED this 14th day of November, 2023, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

5.3 5.4
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
December 25
January 1
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public January 20
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public February 17
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public April 12/13
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public May 26
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public June 19
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public July 4
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public September 1
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public September 22/23
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public October 1/2
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public Courtyard Conf. Room Closed Session - Closed to the Public City Council Meeting Calendar for 2025
June 24
September 9
September 30
February 11
City Hall Closure - Presidents' Day
February 25
City Hall Closure - Juneteenth
City Hall Closure - New Year’s Day
January 14
City Hall Closure - Martin Luther King Jr. Day
January 28
City Hall Closure - Christmas Day
Passover (City observed - sundown to sundown)
August 12
March 11
March 25
May 13
April 8
April 22
June 10
May 27
City Hall Closure - Labor Day
August 26
July 8 and 22 Meetings Cancelled
City Hall Closure - Independence Day
City Hall Closure - Memorial Day
Rosh Hashanah (City observed - sundown to sundown)
October 14
October 28
Yom Kippur (City observed - sundown to sundown)

5.5 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
City Council Meeting Calendar for 2025
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 27
November 28
Courtyard Conf. Room Closed Session - Closed to the Public Council Chambers Council Regular Meeting - Open to the Public December 14/15
December 25
December 9
City Hall Closure - Thanksgiving Day
City Hall Closure - Day After Thanksgiving Day
December 23 Meeting Cancelled
City Hall Closure - Christmas Day
October 28
City Hall Closure - Veteran's Day (observed)
Hanukkah (City observed - sundown to sundown)
November 18

5.6 City Council

AGENDA REPORT
DATE: 10/10/2024
AGENDA OF: 10/22/2024
DEPARTMENT: City Manager
SUBJECT: Santa Cruz County Civil Grand Jury Response (CM) RECOMMENDATION: Motion to authorize the Mayor to submit the required response to the Santa Cruz Civil Grand Jury on behalf of the Santa Cruz City Council for the Honoring Commitments to the Public report.

BACKGROUND: Due to an administrative error, an incorrect version of this report was approved by the City Council on October 8, 2024. Attached to this agenda report is the correct response to the Honoring Commitments to the Public report.

The full report can be accessed here:
https://www.santacruzcountyca.gov/Departments/GrandJury/2023- 2024GrandJuryReportsandResponses.aspx.

DISCUSSION: The Council is requested to authorize the Mayor to respond, on behalf of the Council, to the published Civil Grand Jury report that required a response. Upon approval, the response will be submitted to the Civil Grand Jury by October 23, 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 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.

6.1 Prepared By:

Gina Liebig
Principal Management
Analyst
Submitted By:

Michelle Templeton
Assistant City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. HONORING COMMITMENTS TO THE PUBLIC.PDF

6.2 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.

6.3 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].

6.4 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.

6.5 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.

6.6 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.

6.7 City Council

AGENDA REPORT
DATE: 10/03/2024
AGENDA OF: 10/22/2024
DEPARTMENT: Economic Development and Housing
SUBJECT: License Agreement with Bogard Construction, Inc. for Construction Staging and Access on 125 Coral Street (EDH)
RECOMMENDATION: Motion to authorize and direct the City Manager to negotiate and execute License and Lease Agreement(s) and any amendment(s) or extension(s) thereto of a nonsubstantive nature, in a form acceptable to the City Attorney, 1) with Bogard Construction, Inc. (“Developer”) for construction staging and access at 125 Coral Street (APNs 008-171-24, and - 25); and, 2) with James P. Gillespie and Boni Jean Gillespie, Trustees of Gillespie Revocable Trust, to amend existing lease terms to enable Developer’s use of the property.

BACKGROUND: Bogard Construction is the lead contractor (“Developer”) for the Harvey West Studios supportive housing project at the Coral Street Campus. The Harvey West Studios project (“Project”) is currently under construction and will deliver 120 units of permanent supportive housing for individuals with special needs, often involving chronic homelessness. The parcel on which the Project is located is effectively landlocked within the Coral Street Campus and only accessible via the gated main entry to the Campus. Construction activities involve not only the movement of heavy equipment, but deliveries, waste removal, and other logistical needs that impact daily life and operations on the Campus. Where the Campus is largely a pedestrian space the frequent movement of large vehicles to service the construction site has raised concerns over safety and project efficiency. For these, reasons the Developer has requested access through the City’s adjoining property at 125 Coral Street (“Property”), aka Seaberg Metal Fabricators, Inc.

The Property was acquired by the City in May 2022 for future expansion of the Coral Street Campus and is currently leased to the former owners, James P. Gillespie and Boni Jean Gillespie, Trustees of Gillespie Revocable Trust (“Tenant”) on a holdover basis through at least December 2024. The Tenant has agreed to allow the Developer to use a non-exclusive route through and portion of the property (“License Area”) for construction staging and access. In exchange for allowing the shared use, which may involve some impacts to their business operations, the Tenant has requested a reduction in rent which will instead be paid by the Developer to make the City whole for all rents due on the Property.

Approval of the motion will authorize the City Manager to negotiate and execute the attached draft License Agreement (with Developer) and Lease Amendment (with Tenant), together with any final modifications needed to expedite Developer’s use of the property and minimize any

7.1 future risk to Coral Street Campus staff and clients. Developer will secure any additional permits that may be required for their use of the Property, prior to that use.

DISCUSSION: Staff has negotiated the following terms of the Agreements to include:

License Agreement with Developer
Term of License: Twenty (20) Months.

Extension Options: Administrative extensions as needed until project completion.

License Fee: $5,000 per month.

Additional Terms: Either party many terminate license at its discretion.

Scope of Work: Installation of small gravel ramp, drive isle modification as needed, removal and restoration of shared wall (subject to city direction), removal or relocation of debris and Tenant materials, needed.

Lease Agreement with Tenant
Term of License: Through December 31, 2024
Extension Options: Administrative extensions, at City Manager discretion.

License Fee: $10,000 per month.

Additional Terms: City reserves the right to terminate lease at its discretion.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed actions are exempt from CEQA based upon the following exemptions:
15301. Existing Facilities. Specifically, 15301 exempts the leasing of existing facilities as well as minor modifications, like the installation of safety improvements for use during construction and demolition and removal of appurtenant structures, such as the property line wall. 15304. Minor Alterations to Land. The proposed actions would allow minor grading and installation of a small temporary ramp on the Property to enable rear access to the project site.

HEALTH IN ALL POLICIES (HiAP): The proposed actions will mitigate risk to human health and safety by redirecting the primary path of travel for construction vehicles away from a busy pedestrian environment within the Coral Street Campus. Instead, the movement of construction vehicles and deliveries will be redirected through the industrial property next door and toward a rear entry to the Project site.

FISCAL IMPACT: The proposed license will not impact the City’s General Fund. Existing lease revenues and proposed license fees from the Property are allocated to project c512205.

Project revenues are reserved for costs related to 125 Coral Street and are anticipated to support predevelopment costs for the Navigation Center proposed in the Coral Street Visioning Report.

Prepared By:

David McCormic
Asset and Development
Manager
Submitted By:

Bonnie Lipscomb
Director of Economic
Development and Housing
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. DRAFT LICENSE AGREEMENT WITH BOGARD CONSTRUCTION INC.DOC

2. DRAFT LEASE AMENDMENT WITH TENANT.DOC

7.2 License Agreement 1

LICENSE AGREEMENT

BETWEEN
CITY OF SANTA CRUZ AND BOGARD CONSTRUCTION, INC.

THIS LICENSE AGREEMENT (“License Agreement”) is made and entered into this _____day of October, 2024 (“Effective Date”) by and between the City of Santa Cruz, a municipal corporation (“City” or “Licensor”) and Bogard Construction, Inc. “Bogard” or “Licensee”).

Licensor and Licensee may also be identified individually as “Party” or collectively as the “Parties.”
I. RECITALS
A. City owns that certain real property commonly known as the Gillespie Property (aka Seaberg Metals), located at 125 Coral Street, Santa Cruz, California, 95060, Assessor's Parcel Numbers (APN) 008-171-24, and 008-171-24-25 (the "Property").

B. The Property is currently leased to James P. Gillespie and Boni Jean Gillespie, Trustees of Gillespie Revocable Trust (“Tenant”) and occupied thereby.

C. Licensee is the lead contractor for the construction of the Harvey West Studios supportive housing development at the adjacent property at 119 Coral Street, Santa Cruz, California, 95060, APN 008-171-31 (the “Project”).

D. As part of the Project, Licensee desires to use the Property to provide alternate construction access and a staging area to reduce impacts to neighboring businesses, including the Housing Matters Shelter, and to support the coordination of deliveries, waste removal, and other Project logistics on a portion of the Property.

E. City agrees to grant License the requested license to access a portion of the Property subject to the terms and conditions contained in this License Agreement.

NOW, THEREFORE, incorporating the above-stated Recitals, in consideration of the conditions herein contained, and for other good and valuable consideration, the City and Licensee agree as follows:

II. AGREEMENT

1. LICENSE AREA.
a. City grants to Licensee a non-exclusive license (“License”) for the use of certain paved, dirt, gravel and grassy areas located on a portion of the Property within the undeveloped open area of approximately two-fifths (0.4) acres, as shown in the attached Exhibit A (the “License Area”), incorporated herein. b. The License is for the sole purpose of establishing a staging area and construction access to support the Project, including the staging of vehicles, equipment, supplies

7.3 License Agreement 2
and materials, food distribution, waste off haul, the movement of vehicles, personnel, materials, and other construction related activities (collectively, the “Permitted Use”). c. Licensee does not hold any ownership or vested property interest in the License Area by virtue of this License. This License Agreement is not a lease but merely entitles Licensee to use the License Area as provided herein.

2. TERM. This License shall commence on November ___, 2024, and shall expire on July 31, 2026 (“License Term”). The Parties may mutually agree in writing to extend the Term of this License Agreement.

3. TERMINATION. Either Party may terminate this Agreement by providing written notification to the other Party, at least 10 days in advance of the effective date of termination. Upon termination of this License Agreement, unless otherwise instructed by Licensor, Licensee shall remove any fixtures or improvements in the License Area at Licensee’s sole expense and return the License Area to the condition it was in immediately prior to Licensee’s use, excepting normal wear and tear.

4. LICENSEE’S AUTHORIZED USE. City and Licensee agree that the purpose of this License is for use of the License Area during License’s approved construction schedule, as a staging area and for construction access. Licensee may restrict access to the License Area during its hours of operation, but shall not do so in a manner that unreasonably limits Tenant’s access or ability to perform its business. In the event of any dispute between the parties, Licensor reserves the right to modify access terms and schedules as may be needed to address grievances.

5. CONDITION OF LICENSE AREA AS-IS. Licensee acknowledges the uniqueness of the License Area and accepts the current “AS-IS, IN ITS CURRENT CONDITION, WITH ALL FAULTS” condition existing on the date of execution of this License Agreement. Licensee acknowledges Licensee has satisfied itself, by its own independent investigation, that the License Area is suitable for Licensee’s intended use and neither City nor its agents or representatives have made any representation or warranty as to the present or future suitability of the License Area for the Permitted Use by Licensee.

6. LICENSEE OBLIGATIONS. Licensee agrees as follows:
a. To maintain and keep the License Area and its contents in a good, clean, safe, and sanitary condition during the Licensee’s use as set forth herein. b. To not intentionally or negligently destroy, deface, damage, impair or remove any part of the License Area.
c. To not fuel vehicles in the License Area.
d. To not allow vehicles with any potential for gas leaks in the License Area.

7.4 License Agreement 3
e. To not engage in activities which pose risk of environmental contamination. f. To conduct daily inspections to check for gas leaks and spills from vehicles and equipment.
g. Promptly notify Licensor in writing of spills or other incident of negative environmental impact; and to immediately clean up and remedy any gas spills within the License Area.
h. Maintain all conditions, regulations, and best management practices (“BMPs”) on or about the License Area, in the same fashion as specified in the approved construction plans for the Project (B21-0588) and related permits or approvals for the Project, including erosion control, stormwater, and dust management; except in the event, that separate permits or approvals are issued by the City for the Property itself. i. To not interfere with Tenant’s operations on or about the Property. j. Establish written terms and operational commitments for shared use of the Property with Tenant, as needed, to ensure Licensee’s activities in the License Area do not interfere with Tenant’s operations on or about the Property. k. To designate a construction manager as point of contact for City and Tenant and to monitor all Licensee activities in the License Area.
l. To install construction fencing and other safety or security improvements necessary to facilitate safe use of the Property.
m. Take reasonable measures to ensure the security of the Seaberg Metals operation and avoid unauthorized entry into the Tenant’s building or premises, including at minimum, managing gate access, instructing employees and contractors to remain within the License Area, securing the premises off hours, and installing construction monitoring cameras for the area, if otherwise in use for Licensee’s Project.

7. CITY OBLIGATIONS. City agrees as follows:
a. To provide access to the License Area throughout the duration of the License Term. b. To assist in any communication necessary between Licensee and Tenant.

8. FEES.
a. License Fee. Licensee agrees to pay a License Fee in the amount of $5,000 per month for use of the License Area, subject to any adjustment or credit authorized by the City Manager, at his sole discretion. License Fees and billing procedures may be adjusted by City upon 30 days’ written notice. The License Fee for any partial month shall be prorated at the rate of 1/30th of the License Fee per day.

7.5 License Agreement 4
b. Utility Fee. Licensee shall not use any utilities on the Property, without prior written approval by Tenant and City. In the event, that such use is authorized, Licensee shall reimburse the account holder for any utility costs associated with Licensee’s estimated or documented usage, including but not limited to, water, natural gas, electricity and sanitation (collectively the “Utility Fee”). The Utility Fee shall not exceed the actual cost that the account holder pays for the utilities associated with the License Area. City shall not be liable for any damages, including, but not limited to, any loss of business due to the failure or interruption of any utility service being furnished to the License Area, and no such failure or interruption shall entitle Licensee to terminate this License Agreement. In the event, that accurate accounting of utility usage is not available, the Parties shall employ a pro-rata method based on either square footage of the premise, and/or duration of utility usage compared to the billing period.
c. Billing. City will issue a monthly invoice to Licensee with payment due within thirty (30) calendar days.

9. LATE CHARGES AND INTEREST ON UNPAID LICENSE FEES. If any fees are not received by City when due, Licensee shall pay to City an additional sum of ten percent (10%) of the overdue License Fee as a late charge, as well as interest at the rate of one-and one-half percent (1 1/2 %) per month, or the maximum rate of interest allowed by law, on the unpaid balance of said rent or sum until paid. The parties agree that said late charges and interest represent a fair and reasonable estimate of the costs that City will incur by reason of late payment by Licensee. The acceptance by City of any late charge shall not constitute a waiver of Licensee's default with respect to the overdue amount, nor prevent City from exercising any of the other rights and remedies available to City under this License Agreement or as provided by law.

10. ALTERATIONS.
a. Any alterations, improvements, additions or utility installations in, on, or about the Licensed Area that Licensee shall desire to make will require the written consent of Licensor. Such proposed alterations, improvements, additions or utility installations shall be presented to the Licensor in written form, with proposed detailed plans. If Licensor shall give its consent, the consent shall be deemed conditioned upon Licensee acquiring a permit or other approvals to do so from appropriate governmental agencies, if applicable, the furnishing of a copy thereof to Licensor prior to the commencement of the work, and the compliance by Licensee of all conditions of said permit or other approvals in a prompt and expeditious manner. b. Landlord consents to the list of Licensee improvements listed in Exhibit B (“Licensee Improvements”). The Licensee Improvements provide in Exhibit B are conditioned upon Licensee acquiring a permit or other approvals to do so from appropriate governmental agencies, if applicable, the furnishing of a copy thereof to Licensor prior to the commencement of the work, and the compliance by Licensee of all conditions of said permit or other approvals in a prompt and expeditious manner.

7.6 License Agreement 5

11. HAZARDOUS OR TOXIC MATERIALS. Licensee shall comply, at Licensee’s sole expense, with all federal, state, and local statutes or regulations concerning environmental conditions, emissions, pollutants, and controls. Licensee shall not cause, store, use or permit any Hazardous Material (defined to include, but not limited to: (i) any material, substance or waste which is or hereafter shall be listed, regulated or defined by state or federal laws to be hazardous, acutely hazardous, extremely hazardous, radioactive toxic, or dangerous; (ii) asbestos or asbestos-containing materials; (iii) polychlorinated biphenyls (PCBs); (iv) radon gas; (v) laboratory wastes; (vi) experimental products, including genetically engineered microbes; (vii) petroleum, natural gas, or other petroleum product; and (viii) medical waste) to be brought upon, kept or used in or about the License Area by Licensee, its agents, employees, contractors or invites, without the prior written consent of Licensor, which Licensor shall not unreasonably withhold as long as Licensee demonstrates to Licensor’s reasonable satisfaction that such Hazardous Material is necessary or useful to Licensee’s use of the License Area, does not violate any requirements of the Licensor’s policies of fire, causality or public liability insurance and will be used, kept and stored in a manner that complies with all laws regulating any such Hazardous Material so brought upon or used or kept in or about the License Area.

If Licensee breaches any of its obligation stated herein, or if the presence of Hazardous Material on the License Area caused or permitted by Licensee results in contamination of the License Area, then Licensee shall indemnify, defend and hold Licensor harmless from any and all claims, judgment, damages, penalties, fines, costs, liabilities or losses, including, without limitation, diminution in value of the License Area, damages for the loss or restriction on use or marketing of rentable or usable space of the License Area, and sums paid in settlement of claims, attorneys' fees, consultant fees and expert fees which arise during or after the License term as a result of such contamination. Without limiting the foregoing, if the presence of any Hazardous Material on the License Area caused or permitted by Licensee results in any contamination of the License Area, Licensee shall promptly take all actions at its sole expense as are necessary to return the License Area to the condition existing prior to the introduction of any such Hazardous Material to the License Area; provided that Licensor’s approval of such actions shall first be obtained, which approval shall not be unreasonably withheld so long as such actions would not potentially have any material adverse long-term or short-term effect on the License Area.

12. INDEMNIFICATION/WAIVER OF LIABILITY.
a. Licensee 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”) which arise from or are in any manner related to the entry on, occupancy, and/or use of the License Area under this License Agreement (including, but not limited to any improvements or personal property located therein) by Licensee, its officers, directors, employees, agents, representatives, invitees, customers, contractors, subcontractors, suppliers, trespassers, or others acting on Licensee’s

7.7 License Agreement 6
behalf or under Licensee’s authority or control. Licensee’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. Licensee’s obligation to defend shall arise regardless of any claim or assertion that Indemnitees caused or contributed to the Losses. This Section 12 shall survive the expiration or early termination of this License Agreement.

13. INSURANCE.
a. Prior to the beginning of and throughout the duration of the License Agreement, Licensee will maintain and comply with the Insurance Requirements as set forth in Exhibit C. Licensee will insure the City against claims for injuries to persons or damages to property which may arise from or in connection with this License Agreement. The insurance coverages required shall not in any way limit the liability of the Licensee. The coverage requirements may be satisfied by self-insurance or pooled risk plans that provide comparable coverage.
b. Licensee agrees that if Licensee does not maintain any insurance policy required under this License Agreement or fails to pay any premiums when due, City may, at its election, either terminate this License Agreement, require that the Licensee immediately cease use of the License Area pending reinstatement of insurance by Licensee.

14. REPAIR AND RESTORATION. If Licensee, its agents or contractors cause any damage to the License Area, or to Licensor’s roads, infrastructure or other property and improvements in connection with the exercise of this License, Licensee shall repair and restore the damaged property to its original condition prior to Licensee's use pursuant to this License Agreement, which condition may be reasonably modified at Licensor’s sole discretion. Licensee shall perform the repair and restoration required hereunder prior to the expiration of this License, or within ten (10) days of the earlier termination of Licensee’s rights hereunder. In the event that repair and restoration is performed following the termination this License, Licensee’s Indemnity and Insurance obligations in this License Agreement shall continue until repair and restoration is completed as provided herein. Licensor shall have the right (but not the obligation) to make such repairs or replacements which are Licensee’s responsibility under this License Agreement without liability to Licensee for any loss or damage that may occur to Licensee’s business, and Licensee shall pay for all costs and expenses incurred by Licensor in making such repairs and/or replacements, plus an administrative overhead fee of ten percent (10%) from the date of commencement of the work through the date of payment.

15. INSPECTION. City, and City’s agents and employees shall have the right to enter the License Area at any time to inspect the same, to see that Licensee is performing its obligations under this License Agreement, that no damage has been or is done to the License Area, and to protect any and all rights of City, to post such reasonable notices as City may desire as to protect the rights of the City, or in the interest of public health, safety, and welfare.

7.8 License Agreement 7

16. CITY AUTHORITY. The City shall at all times retain exclusive final authority over the use of the License Area and the use of the adjacent public right-of-way, including the use of fixtures thereon. The City shall have the right to promulgate and enforce any and all ordinances, rules and regulations, and to take action authorized by its police power, as the City, in its sole discretion, deems necessary to advance the public’s health, safety and welfare.

17. RIGHT TO ENTRY FOR ALTERATIONS AND REPAIRS. It is agreed that the City has reserved and shall at all times have the right to alter, repair, and improve the nonexclusive areas which may affect the License Area. Licensee also waives any claims for damages against City by reason of City’s entry into or onto the License Area for the purpose of making repairs to the License Area or to any other area. City agrees to give Licensee reasonable notice of intention to make repairs, except in situations involving immediate peril and hazard to the public, when such entry shall be made summarily by City. City shall be the sole and exclusive judge as to what constitutes immediate peril and hazard to the public.

18. AMERICANS WITH DISABILITIES ACT. Throughout the term of the License Agreement, Licensee acknowledges and expressly accepts full responsibility and shall incur all costs and expenses for compliance with the requirements of the Americans with Disabilities Act (ADA) and any other applicable laws or regulations regarding the accessibility of the License Area (and the improvements located or to be located thereon) by disabled individuals. Licensee agrees to indemnify, defend, and hold harmless City (and its officials, officers, employees, agents, volunteers) from and against any claim, loss, expense or liability arising from Licensee’s failure to fully comply with such laws or regulations.

19. LIENS. Licensee shall keep the Property free and clear of all liens arising, or alleged to arise, in connection with any work performed, labor or materials supplied or delivered, or similar activities performed by Licensee or at either of their request or benefit. If any liens are placed on the Property in connection with Licensee’s use of the License Area, Licensee shall diligently pursue all necessary actions to remove such liens from title.

Licensee agrees to hold Licensor harmless for any loss or expense, including reasonable attorneys' fees and costs, arising from any such liens which might be filed against the Property.

20. COMPLIANCE WITH LAWS. All activities of Licensee, its employees, and/or agents will be carried out in compliance with all applicable federal, state, and local laws and regulations. Licensee shall not allow the License Area to be used for any unlawful or objectionable purpose, nor shall Licensee cause, maintain or permit any nuisance in, on or about the License Area.

21. CONFLICTS OF INTEREST. Licensee acknowledges and agrees to comply with applicable provisions of conflict of interest laws and regulations, including the CA

7.9 License Agreement 8
Political Reform Act (Gov’t. Code §§1090, 87100), Levine Act (Gov’t. Code §84308), and the City’s conflict of interest code, and make any necessary disclosures.

22. ASSIGNMENT PROHIBITED. Licensee shall not, either voluntarily or involuntarily, assign or encumber its interests in this License Agreement or allow any other person or entity (except Licensee's authorized representatives) to operate under the terms of this License Agreement without the prior written approval and consent of the City. Any such assignment without prior written approval of the City shall be null and void.

23. WAIVERS. Any subsequent acceptance of License Fees hereunder by City shall not be deemed a waiver of any preceding breach of any obligation hereunder by Licensee other than the failure to pay the particular License Fees so accepted; and the waiver of any breach of any covenant or condition by City herein shall not constitute a waiver of any other breach regardless of knowledge thereof. Any waiver by City of any breach must be in writing.

24. FORCE MAJEURE. Neither party hereto shall be considered in default in the performance of its obligation hereunder to the extent that the performance of its obligation hereunder is prevented or delayed due to 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 not caused by the fault or negligence of the party obligated to perform under this License Agreement. If the License Area is damaged in part or as a whole during the license term thus necessitating repairs or otherwise restricting the use of the License Area by Licensee, City may in its sole discretion reduce or excuse payment of any applicable fees up to the period that the use of the License Area is restricted solely due to the above stated causes.

25. CITY OF SANTA CRUZ AS LICENSOR. Licensee acknowledges and understands that the City as Licensor is a municipality consisting of numerous offices, departments, agencies, and districts. Whenever a provision contained in this License Agreement or any extension, modification, or amendment requires the "written consent" of the City, such consent must be obtained from the then City Manager or Director of Economic Development for the City of Santa Cruz, or their respective designee. Licensee may not rely on any statement or representation by any other employee, agent, or representative of City in obtaining such consent, and any such statement or representation other than the express written consent of the City Manager or Director of Economic Development, or their respective designee, shall be null and void and have no effect. Nothing contained in this Section shall limit in any way the authority of any office, department, agency, or district of the City or County of Santa Cruz, California from approving or withholding consent to any event or activity regulated by local law.

26. MISCELLANEOUS.
a. This License Agreement, along with any attachments, is the full and complete integration of the Parties’ agreement with respect to the matters addressed herein, and this License Agreement supersedes any previous written or oral agreements between the Parties with respect to the matters addressed herein.

7.10 License Agreement 9
b. If Licensee is comprised of more than one individual or entity, Licensee’s obligations and liabilities may be enforced against each of them, personally, jointly, and/or severally.
c. This License Agreement shall be construed and interpreted in accordance with the laws of the State of California.
d. The unenforceability, invalidity, or illegality of any provision(s) of this License Agreement shall not render the other provisions unenforceable, invalid, or illegal. e. This License Agreement may only be amended in writing as agreed to by both Parties.
f. Each party acknowledges that it has reviewed this License 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 License Agreement.
g. The Parties may execute this License 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. Electronic signatures and fully executed copies of this License Agreement are deemed valid as originals. h. The signatories to this License Agreement warrant and represent that each is authorized to execute this License Agreement and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this License Agreement.

27. 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 fifth business day after the deposit thereof with the U.S. Postal Service. Notices shall be addressed to recipient as follows:

To CITY:

City of Santa Cruz
Attn: Asset Manager
337 Locust Street
Santa Cruz, CA 95060
Phone: 831.420.5156
Email: [email protected]
To LICENSEE:
[ADD LICENSEE CONTACT]

7.11 License Agreement 10
Changes to the above information shall be given to the other party in writing ten (10) business days before the change is effective.

IN WITNESS WHEREOF, the parties hereto have executed this License Agreement the day and year first herein written.
[SIGNATURES ON FOLLOWING PAGE]

7.12 License Agreement 11
LICENSOR:

By____________________________
Matt Huffaker
City Manager
Date__________________________

APPROVED AS TO FORM
________________________________
Office of the City Attorney
Date__________________________
LICENSEE*:

By____________________________
[name]
[title]
Date__________________________
By____________________________
[name]
[title]
Date__________________________
*City Signature Requirements for Corporate Entity:

Two 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

7.13 License Agreement 12
Exhibit A

LICENSE AREA

7.14 License Agreement 13
Exhibit B
Licensee Improvements
The following improvements are approved by the Licensor for the purposes of this License Agreement, but shall be subject to review of final plans, permits or other approvals from appropriate governmental agencies. Licensee shall also be responsible for restoration of the premises, to Licensor’s satisfaction, as specified in this License.

1. Minor modification and use of drive aisle and approximate area for staging (Exhibit A).

2. Removal of a section of shared wall with property at 117 Coral St. (owned by City of Santa Cruz) and restoration of said wall, subject to City’s discretion and specification.

3. Grading and installation of rock to create a small ramp to account for grade changes between the two properties, and removal or modification of ramp at City’s direction.

4. Removal and/or relocation of site debris blocking access road, subject written approval from Tenant.

5. Install construction fencing and any other safety or security improvements necessary to facilitate safe use of the Property.

7.15 License Agreement 14
Exhibit D

CITY OF SANTA CRUZ INSURANCE REQUIREMENTS
Licensee shall procure and maintain for the duration of the License Agreement, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the obligations thereunder by Licensee, Licensee’s respective employees, subcontractor(s), agents, representatives, or volunteers.

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
Licensee acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. If Licensee 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 Licensee. 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): $2,000,000 PER OCCURRENCE; $2,000,000 AGGREGATE Proof of coverage for $2 Million per occurrence and $2 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.  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 Licensee and its employees.  AUTOMOBILE LIABILITY: Licensee shall procure automobile insurance on an “Any Auto” Basis: ISO Form Number CA 00 01 covering any auto (Code 1), or if Licensee has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 combined single limit each occurrence/per accident for bodily injury and property damage.

7.16 License Agreement 15
 PROPERTY INSURANCE.
“All Risk” (Personal) Property Insurance Coverage. Licensee shall, at Licensee 's sole expense, obtain and keep in full force and effect an insurance policy covering all of Licensee's personal property, trade fixtures, equipment and merchandise located in or upon the License Area in an amount sufficient to cover not less than one hundred percent (100%) of the replacement value thereof, providing protection against any peril included within including vandalism and malicious mischief endorsements ordinarily included in extended coverage casualty insurance policies.

Licensee shall be solely responsible for any uninsured loss or damage caused to Licensee's personal property, trade fixtures, equipment and merchandise located in or upon the License Area for any reason.

Business Interruption Insurance. Policy with adequate limits to cover the term of this Lease and shall contain an inflation endorsement if the Premises or Tenant improvements are destroyed or rendered inaccessible by a risk insured against by a policy of standard fire and extended coverage insurance, with vandalism and malicious mischief endorsements. Insurance proceeds thereunder shall be payable to Landlord for loss of rents.

C. OTHER INSURANCE PROVISIONS
The insurance policies are to comply with the following provisions:

1. 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 Licensee including materials, parts, or equipment furnished in connection with such work or operations, products and completed operations. Commercial General Liability coverage will be provided in the form of an endorsement to Licensee’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).

2. PRIMARY COVERAGE
For any claims related to this Agreement, Licensee’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 Licensee’s and all subcontractor’s insurance and will not contribute with it.

3. NOTICE OF CANCELLATION
Each insurance policy required above shall state that the coverage shall not be canceled, except with notice to the City.

4. WAIVER OF SUBROGATION
Licensee hereby grants to the City a waiver of any right to subrogation, except as otherwise not applicable, which any insurer of said Licensee may acquire against the City by virtue of the payment of any loss, including attorney’s fees under such insurance. Licensee 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.

5. EXCESS LIABILITY/UMBRELLA INSURANCE POLICIES
Licensee 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

7.17 License Agreement 16
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 which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Licensee’s primary and excess liability policies are exhausted.

6. CGL & Excess Liability/Umbrella policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of 1 year for completed operations liability coverage. Such Insurance must be maintained, and evidence of insurance must be provided, for at least one (1) year after completion of the Project.]

7. SELF-INSURED RETENTIONS (SIR)
Self-insured retentions must be declared to and approved by the City. City may require Licensee 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.

8. 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.

9. VERIFICATION OF COVERAGE
Licensee 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 any Excess Liability/Umbrella policies, as applicable) listing all policy endorsements to be approved by the City. However, failure to obtain the required documents prior to the term of the License Agreement will not waive the Licensee’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.

10. SUBCONTRACTORS
Licensee shall include their subcontractor(s) as additional insured(s) under the policies or shall furnish separate certificates and endorsements for each contractor and subcontractor. Licensee shall require and verify that all contractors and subcontractors maintain insurance meeting all the requirements stated herein, and Licensee 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).

11. 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 Licensee.

7.18 FIRST AMENDMENT TO LEASE AGREEMENT
This First Amendment (“First Amendment”) to the February 28, 2022 Lease Agreement (“Lease Agreement”) is entered into on this _____ day of October, 2024 by and between the City of Santa Cruz (“Landlord”) and James P. Gillespie and Boni Jean Gillespie, Trustees of the Gillespie Revocable Trust dated August 22, 2001; Harley F. Gillespie and Sandra I. Gillespie, Co-Trustees of the Harley F. Gillespie and Sandra I. Gillespie Trust dated August 21, 1990, dba Seaberg Metals (collectively “Tenant”). Landlord and Tenant are sometimes hereinafter referred to individually as “Party” and collectively as “Parties.”

RECITALS
A. On February 28, 2022, Landlord and Tenant entered into a fifteen (15) month Lease Agreement for the premises located at 125 Coral Street, Santa Cruz California, 95050, Assessor Parcel Numbers 008-171-24, and 008-171-25 (the “Property”), commencing upon the recordation of the grant deed for the City’s purchase of the Property.

B. The grant deed was recorded on May 13, 2022, at which time the Landlord took ownership of the Property and the lease term commenced.

C. The Lease Agreement contains a liquidated damages provision requiring Tenant pay liquidated damages equal to $15,000 per month as a tenant in sufferance and subjects the Tenant to any and all other remedies available to Landlord.

D. The Lease Agreement expired on August 12, 2023 and the Tenant has operated on a holdover basis ever since. On August 10, 2023, the Parties executed a letter acknowledging that Tenant required an additional four (4) months, or until December 12, 2023, to fully vacate the Property.

E. Pursuant to the letter executed on August 10, 2023, the Parties agreed that (1) Tenant would begin paying liquidated damages of $15,000 per month beginning August 13, 2023 pursuant to Section 4 of the Lease Agreement; and (2) Landlord would limit liquidated damages to $15,000 a month and agree to not pursue additional remedies at law or equity through December 12, 2023.

F. Tenant remains as a tenant in sufferance in possession of the Property, continues to pay the liquidated damages/holdover rent, and estimates it will need through December 31, 2024 to fully vacate the Property.

G. The Parties have negotiated terms for shared use of the Property, whereby Landlord will grant Bogard Construction, Inc. a license access a portion of the Property to use for construction staging and access to an adjacent construction site (the “Bogard License Agreement”).

H. Landlord and Tenant now wish to amend the Lease Agreement to extend the term, modify the monthly owed by Tenant, and clarify Tenant’s duties upon commencement of the Bogard License Agreement, as set forth below.

7.19 IT IS MUTUALLY AGREED THAT THE LEASE AGREEMENT BETWEEN THE CITY OF SANTA CRUZ AND JAMES P. GILLESPIE AND BONI JEAN GILLESPIE, TRUSTEES OF THE GILLESPIE REVOCABLE TRUST DATED AUGUST 22, 2001; HARLEY F. GILLESPIE AND SANDRA I. GILLESPIE, CO-TRUSTEES OF THE HARLEY F. GILLESPIE AND SANDRA I.

GILLESPIE TRUST DATED AUGUST 21, 1990, DBA SEABERG METALS DATED FEBRUARY 28, 2022, IS HEREBY AMENDED AS FOLLOWS:

The parties agree to incorporate the above Recitals and agree to the following:

1. Section 3 is amended such that the Term of the Lease is hereby extended through December 2024, and to add the following:

If Tenant should remain in possession of the Premises after the expiration of the Term of this Lease in the absence of a new agreement or amended agreement or after Landlord has declared a forfeiture of this Lease as a result of Tenant’s default, then such holding over shall be construed as a tenancy from month-to-month, subject to all of the terms, conditions, provisions and obligations of this Lease at the time this Lease expires or upon Tenant’s default, as the case may be. Unless Tenant obtains the express written consent of Landlord to holding over, Landlord does not waive its right to pursue any legal or equitable remedy against Tenant with regard to Tenant’s continued possession of the Premises after the expiration of the Term of this Lease.

Under a month-to-month tenancy, Tenant may terminate this Lease by providing Landlord with written notice at least thirty (30) days prior to the intended termination date. Tenant shall be responsible for paying rent through the termination date even if moving out early. Landlord may terminate the tenancy by giving notice to Tenant as required by law.

2. Section 4 is deleted in its entirety and replaced with the following:

4. Rent/Hold Over Rent
a. Tenant agrees to pay to Landlord as rent for the use of the Premises the sum of $15,000 per month.
b. The monthly rent owed by Tenant shall be reduced to $10,000 upon the commencement of and throughout the duration of the license agreement entered into between Landlord and Bogard Construction, Inc. for construction staging and access using a shared portion of the Property (the “Bogard License Agreement”).

3. Section 20 is hereby added to the Lease as follows:

20. Bogard License Agreement for Use of Property.
a. Upon commencement of the Bogard License Agreement, Tenant shall work collaboratively with Bogard Construction, Inc. to establish written terms and operational commitments for the shared use of the Property to ensure (1) Bogard Construction, Inc.’s activities on the Property do not interfere with Tenant’s operations on or about the

7.20 Property, except as may be agreed to in those terms; and (2) Bogard Construction, Inc.’s has access to the undeveloped open area of approximately two-fifths (0.4) acres on the Property for construction staging and access, as shown in the attached Exhibit C-1 (the “Bogard Construction Inc. License Area”).
b. Tenant shall remove or relocate all site debris obstructing the access road shown on Exhibit C-1 within ___ days following the commencement of the Bogard License Agreement.
c. Tenant acknowledges that Bogard Construction, Inc. will, pursuant to the Bogard License Agreement, make minor modifications to the Property throughout the term of the Bogard License Agreement, including but not limited to:
i. Minor modification and use of drive aisle and
approximate area for staging (Exhibit A).
ii. Removal of a section of shared wall with property at 117 Coral St. (owned by City of Santa Cruz).
iii. Grading and installation of rock to create a small ramp to account for grade changes between the two
properties.
iv. Removal and/or relocation of site debris blocking
access road, as needed, subject written approval from
Tenant.
v. Install construction fencing and any other safety or security improvements necessary to facilitate safe use
of the Property.

4. If more than one individual or entity comprises Tenant, the obligations and liabilities imposed on each individual or entity that comprises Tenant under this Lease will be joint and several.

5. Except as amended by this First Amendment, all other applicable terms and conditions of the original Lease and attachments shall remain in full force and effect. The terms of this First Amendment shall control if any conflict exists.

6. Each party acknowledges that it has reviewed this First 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 First Amendment.

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

7.21 8. The Parties may execute this First 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.

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

7.22 IN WITNESS WHEREOF, the parties have executed this First Amendment to the Lease Agreement as of the dates set forth below.

Dated: _________________________
Dated: _________________________
APPROVED AS TO FORM:
____________________________________
Office of the City Attorney Date
TENANT: James P. Gillespie and Boni Jean
Gillespie, Trustees of the Gillespie Revocable Trust
dated August 22, 2001; Harley F. Gillespie and
Sandra I. Gillespie, Co-Trustees of the Harley F.

Gillespie and Sandra I. Gillespie Trust dated August
21, 1990, dba Seaberg Metals.
______________________________________
LANDLORD: City Of Santa Cruz
______________________________________
By: Matt Huffaker, City Manager

7.23 EXHIBIT C-1
BOGARD CONSTRUCTION INC. LICENSE AREA

7.24 City Council

AGENDA REPORT
DATE: 10/03/2024
AGENDA OF: 10/22/2024
DEPARTMENT: Finance
SUBJECT: Year-End Budget Adjustment for Fiscal Year (FY) 2024 (FN) RECOMMENDATION: Motion to adopt a resolution amending the FY 2024 budget adjusting annual revenues and expenditures in various funds.

BACKGROUND: In accordance with Council Policy 12.6, new appropriations, transfers of appropriations between departments or funds, and transfers between Capital Investment Program (CIP) projects over $100,000 must be approved by the City Council. At the end of the fiscal year, an analysis performed to determine expenditures within funds and departments that have exceeded appropriations and/or need budget adjustments from other funds or departments. An annual budget adjustment is presented to the City Council to address those components of the budget.

DISCUSSION: The attached budget adjustment is in more of a narrative format than has been provided to City Council in the past, in an effort to support the Citywide Strategic Plan focus area of Fiscal Sustainability and Transparency. It separates out all adjustments needed and provides an explanation of the purpose and/or reasoning for the changes. The first set of adjustments are considered “new items”. The second set of items are under the title of “cleanup.” Within each set, the budget adjustments are either grouped by function or department, with the exception that Capital Improvement Program project changes are presented in one group. “New item” budget adjustments are those that may be adding, reducing, or changing revenues or expenditures to account for actuals received or spent in FY 2024. These are new to the City Council and are staff recommendations to adjust funding and appropriations to best meet the needs of the City’s programs, funds, and/or departments. In one case, there is a movement of FY 2024 funds from an operating budget to a multiyear project, which means those funds do not fall to fund balance and instead, will be carried forward into the next fiscal year.

The second set of budget adjustments are considered “clean-up.” These items have prior authorization that may stem from City Council meetings during FY 2024 and/or budget adjustments that have gone through the approval process. While these items are fully approved, an issue with accounting for the full scope of the action may exist. For this reason, these items are considered “clean up.” While they are clean-up items, they may still impact the overall revenues and expenditures of City funds as the initial impact was not fully and correctly accounted for.

8.1 The full impact of the new and clean-up items on the City’s funds can be found in the “Fiscal Impact” section of this agenda report.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The annual year-end budget adjustment is exempt from the California Environmental Quality Act per Section 15061 (b)(3) of Chapter 3, Title 14 of the California Code of Regulations (CEQA Guidelines). This section states the general rule that CEQA applies only to projects that have the potential for causing significant effects on the environment. The annual year-end budget adjustment does not have this potential.

Individual projects listed in the FY 2024 Year-End Budget Adjustment have performed a CEQA analysis and determination already or will require their own CEQA analysis and determination as they move forward.

HEALTH IN ALL POLICIES (HiAP): The cumulative effect of these budget adjustments supports the Health in All Policies (HiAPs) Workplan by supporting the Collective of Results and Evidence-based (CORE) community impacts of increased economic vitality; higher levels of self-sufficiency; increased social, economic, and occupational mobility; connection to others; climate change resiliency; a safe, affordable, and accessible transportation system, and neighborhoods and communities are safe.

FISCAL IMPACT: This year-end budget adjustment impacts the General Fund as well as several other Citywide funds. All adjustments are one-time in nature. The revenues and expenditures for the impacted funds are as follows:

Revenues Expenditures
General Fund (Fund 101)
5,000,690

6,838,665
Wharf Fund (Fund 104)
-

231,092
Civic Equipment Maintenance/Replacement (Fund
121)

866
City Public Trust (Fund 130)
76,410

1,307,654
Carbon Reduction Fund (Fund 133)
-

(13,948)
IIG - AHSC (Fund 137)
4,374,848

1,750,000
Interest Holding (Fund 190)
-

6,138
Gasoline Tax (Fund 221)
-

11,246
Traffic Impact Fee- Citywide Fund (Fund 226)
142,769

-
HOME Investment Partnership (Fund 253)
-

(3,019,201)
Transportation Development Act (Fund 291)
43,812

43,812

8.2 American Rescue Plan (Fund 292)
-

265,211
Revenues Expenditures
State Homelessness Response (Fund 293)
-

(1,265,211)
General Capital Improvement Projects (Fund 311)
11,328,946

14,462,931
CIP- Sidewalk Construction In-Lieu Fund (Fund
315)

(40,000)

-
General Obligation Bonds Debt Service (Fund 411)
-

1,030
Lease Revenue Bonds (Fund 413)
-

133,599
Parking (Fund 741)
2,300,000

-
Storm Water Overlay (Fund 752)
145,000

-
Workers' Compensation Insurance (Fund 841)
-

620,195
Group Health Insurance (Fund 843)
-

1,254,602
McCaskill - Local History (Fund 931)
-

12,000
McCaskill - Visually Impaired (Fund 932)
-

192,579
Estate Proceeds - Finkeldey (Fund 933)
-

190
Whalen Estate - Felton Branch (Fund 934)
-

3,599
SA Capital Projects and Capital Assets (Fund 943)
-

(630,000)
SA Capital Projects-Admin (Fund 945)
-

171
Library Joint Powers Authority (Fund 951)
32,099

-
Library JPA - Vehicle Replacement (Fund 961)
-

28,500
TOTAL
23,404,574

22,220,697

8.3 Prepared By:

Emily Burton
Management Analyst
Submitted By:

Elizabeth Cabell
Finance Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. BUDGET ADJUSTMENT FOR FY24 YEAR-END.PDF

8.4 BUDGET ADJUSTMENT
New Items

1. Capital Investment Program
An adjustment is being made to a Gas Tax project, c401507 Bay Drive Storm Damage Repair, as revenues to match the expenditure budget were not in the project at the start of FY 2024.

The FEMA Levee Certification project, c402112, is receiving $150,000 from the General Fund as a response to the need to maintain this certification per federal regulations.

Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
c401507-935-
0-0
Bay Drive Storm
Damage Repair 311-10-00-0000-49130 From Gas Tax fund

12,909
221-00-00-0000-59103
Transfer to General
CIP

12,909
c402112-912-
0-0
FEMA Levee
Certification 752-00-00-0000-49101 From General Fund 145,000

2. Economic Development and Housing
The following are revenue increases in alignment with actual collections as they relate to the Navigation Center property at 125 Coral Street and the Kunitz House property at 333 Locust St. The Navigation Center Phase I expenditure budget is increasing to equal the actual fiscal year revenue collections in the project.

The rental revenue received in FY 2024 from the Kunitz House, acquired by the City in FY 2023, was $32,410. This is being transferred to the City Public Trust Fund, to pay down the advance loaned to the CIP Fund to purchase this property. A new project is being created to track the rental income and maintenance costs of this property in the City Public Trust Fund instead of in the General Fund.

Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
c512205-107-
0-0
Navigation Center
Phase I 311-51-80-9980-46990 Misc non-operating 90,000
c512205-100-
2020-0
Navigation Center
Phase I 311-51-80-9980-57102 Land

105,000
p512303-105-
1026-0
Kunitz House
Management 101-51-80-5591-46201
Rents- real
property

(57,546)
130-00-00-0000-49191
Intra-entity fund
transfer in

32,410
101-00-00-0000-59191
Intra-entity fund
transfer out

32,410
p512502-463-
1026-0
Kunitz House Rental
Income 130-00-00-0000-46201
Rents- real
property

16,000

8.5 New Items (continued)

2. Economic Development and Housing (continued)
Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
p512502-467-
1026-0
Kunitz House Rental
Income 130-00-00-0000-46238
Rents- property
management

28,000
p512303-100-
2020-0
Kunitz House
Management 101-51-80-5591-54990
Misc. supplies and
services

(93,000)
p512501-100-
2020-0
Kunitz House
Maintenance
Management 101-51-80-5591-54990
Misc. supplies and
services

93,000
p512502-100-
2020-0
Kunitz House Rental
Income 130-00-00-0000-52199

28,000
The Community Development Block Grant (CDBG) funding for Homeless Infrastructure Projects is being transferred to another Homeless Infrastructure project that has a timelier need.

As there is an increased need for the London Nelson Senior Center Renovation project, h512103, and the Parks and Recreation CDBG Senior Studio project, h512202, is not moving forward, funds are being transferred into the former from the latter. This is allowable under the US Department of Housing and Urban Development (HUD) Citizen Participation Plan.

Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
h512406-100-
2020-0
CDBG Homeless
Garden Project
Renovation 261-51-81-0000-43110
Federal operating
grants &
contributions 23,300
h512113-105-
1015-0
Homeless
Infrastructure ProjectsCM 261-51-81-0000-43110
Federal operating
grants &
contributions

(23,300)
c102101-516-
0-0
Homelessness
Infrastructure Projects 311-00-00-0000-49126 From CDBG fund

(23,300)
h512406-100-
2020-0
CDBG Homeless
Garden Project
Renovation 261-51-81-5201-56960 Loans and Grants

23,300
h512113-100-
2020-0
Homeless
Infrastructure ProjectsCM 261-00-00-0000-59103
To General Capital
Improvement Fund

(23,300)
c102101-100-
2020-0
Homelessness
Infrastructure Projects 311-10-00-9990-57990
Supplies services
and capital outlay

(23,300)
Project Number Project Title
General Ledger (GL) Account
String Account Title
h512202-105-
1015-0
Parks & Rec - CDBG Senior
Studio 261-51-81-0000-43110
Federal operating
grants & contributions
h512103-105-
1015-0
Senior Center Renovation -
Parks & Rec CIP 261-51-81-0000-43110
Federal operating
grants & contributions

8.6 New Items (continued)

2. Economic Development and Housing (continued)
The Economic Development and Housing department requested $30,000 in funds for FY 2024 for midtown plaza infrastructure improvements, which was approved. The department would like to move these funds into a project so that these funds may be available to them for this purpose beyond the fiscal year, as the department did not expend the funds allocated to them for FY 2024.

3. Public Works
The development projects at 902 Pacific Ave. and 818 Pacific Ave. have entered a phase at which traffic impact fees may now be collected. The first item on the following table receives these revenues and charge them to the grants that are funding the projects.

The next set of items relates to the Transportation Development Act (TDA) grant, g600001, which received additional pass-through funds than were initially budgeted.

Revenues and expenditures are being adjusted to reflect these actuals.

Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
226-40-00-0000-46344
Traffic impact feeCitywide
142,769
Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
c302101-516-
0-0 Senior Center Rehab 311-00-00-0000-49126 From CDBG Fund

(50,000)
c302241-516-
0-0
LNCC - Senior Studio
Improvements 311-00-00-0000-49126 From CDBG Fund

50,000
c302241-516-
0-0
LNCC - Senior Studio
Improvements 311-00-00-0000-49126 From CDBG Fund

50,000
h512202-920-
0-0
Parks & Rec - CDBG
Senior Studio 261-00-00-0000-59103
To General Capital
Improvement Fund

(50,000)
h512103-100-
2020-0
Senior Center
Renovation - Parks &
Rec CIP 261-00-00-0000-59103
To General Capital
Improvement Fund

50,000
c302101-100-
2020-0 Senior Center Rehab 311-30-41-9120-57203 Building remodeling

(50,000)
c302241-100-
2020-0
LNCC - Senior Studio
Improvements 311-30-41-9110-57312 Park improvements

50,000
Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
101-51-80-5591-57290
Other building
costs

(30,000)
p512402-100-
2020-0
Midtown Lot 32
Amenities and
Improvements 101-51-80-5591-57290
Other building
costs

30,000

8.7 New Items (continued)

3. Public Works (continued)
Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
g600001-400-
4000-0142
TDA- Transport
Purposes 291-40-00-6301-43210
State operating
grants and
contributions

43,812
g600001-100 TDA- Transit Purposes 291-40-00-6301-56960 Loans and grants

43,812

4. Parks and Recreation
The City Public Trust Fund (Fund 130) has been receiving proceeds from the sale of the property formerly known as “Broadway-Brommer Road Right-of-Way,” located between Frederick Street and Hagemann Gulch. These funds are now being placed into a project for use on implementation of the Arana Gulch Master Plan, including Santa Cruz Tarplant habitat, riparian and coastal prairie habitat restoration and management, to ensure these funds are solely used in compliance with City Council Policy 12.12.

Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
c302517-914-
0-0
Arana Gulch Ecosystem
and Infrastructure
Improvements
311-00-00-0000-49108 From City Public
Trust Fund

745,754
c302517-100-
2020-0
Arana Gulch Ecosystem
and Infrastructure
Improvements 311-30-41-9110-57312
Other
infrastructure

745,754
130-00-00-0000-59103
To General Capital
Improvement Fund

745,754

5. Impacts to Fund Balance for Funds Other than the General Fund The following is a list of expenditure budget increases for funds outside of the General Fund. This section is going to be split into two: expenditure budget increases that will be offset in FY 2024 by equal or larger revenue increases (and will therefore not reduce fund balance) and expenditure budget increases that do not have a corresponding revenue increase and will result in a reduction of the fund’s fund balance. The funds not included in either discussion had expenditures that were at or below their appropriations for FY 2024.

Expenditure Budget Increases Offset by Revenue Increases Fund 411: General Obligation Bonds Debt Service
The expenditure budget for fiscal agent’s fees was over by $1,030, but the revenues from the fund will result in an increase in fund balance at the end of FY 2024.

Fund 945: SA Capital Projects-Admin
This fund was overspent by $171, but had revenue actuals that were larger than the funds expended.

8.8 New Items (continued)

5. Impacts to Fund Balance for Funds Other than the General Fund (continued) Expenditure Budget Increases Offset by Revenue Increases (continued)

Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
411-00-00-8910-58910 Fiscal agent's fees

1,030
945-52-80-5510-52201
Water, sewer, and
refuse

171

Expenditure Budget Increases Reducing Fund Balance
Fund 104: Municipal Wharf
This fund’s expenditure balance was over by $231,092. The personnel costs to ensure functioning and safety of the Municipal Wharf exceeds the revenue brought in from the entity. For this reason, the temporary employee pay budgets and security patrols budget needs to be increased. The revenues for this fund were about $1M below the anticipated budget, so the fund balance for Fund 104 will be negatively impacted for FY 2024.

Fund 121: Civic Equip Maintenance/Replacement
This fund’s expenditure balance was over by $866. This is due to larger-than-expected maintenance costs in the Civic Auditorium. The revenue received by the fund (mainly consisting of facility rental fees) was insufficient to cover the additional expenditures in the fund.

Fund 190: Interest Holding
There is a remaining encumbrance for anticipated investment service costs in this fund equaling $6,138. The invoice for these costs was not submitted until after the fiscal year deadlines passed.

Fund 413: Lease Revenue Bonds
A different allocation of lease revenue debt service fees was used in FY 2024 than was budgeted. This meant the expenditures were over budget by $133,599. The correct allocation will be used in FY 2025.

Fund 841: Workers’ Compensation Insurance
The charges in this fund from year to year differ depending on the claims that occur within the year. In FY 2024, the insurance claims costs were higher than budgeted, so $620,195 needs to be added to the expenditure budget in the fund. The FY 2025 budget is significantly greater than the FY 2024 budget, so this should not be a recurring issue.

Fund 843: Group Health Insurance
This fund contains the costs of City employees’ group health insurance, which was over budget by $1,254,602. This year, medical active premiums came in at $489,893 more than was budgeted. Additionally, health insurance and premiums for retirees, health administrative fees, and MRA and DCAP payments were larger than anticipated. The FY 2025 budget for Fund 843 is a sizeable increase from the actual costs in FY 2024.

8.9 New Items (continued)

5. Impacts to Fund Balance for Funds Other than the General Fund (continued) Expenditure Budget Increases Reducing Fund Balance (continued) Fund 934: Whalen Estate – Felton Branch
Fund 951: Library Joint Powers Authority
Fund 961: Library JPA – Vehicle Replacement
The funds listed above are fiduciary funds held on behalf of the Santa Cruz Library Joint Powers Authority (SCLJPA). For both funds, a transfer was missed in FY 2023 and was completed in FY 2024, but there was no corresponding budget. Those budget items are being added here. Fund 951 is the main operating fund for the SCLJPA, and is the destination for the transfers.

Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
104-21-31-2204-51122 Temporary

112,448
104-30-43-3211-52158 Security patrols

104,595
104-40-64-4226-51122 Temporary

14,049
121-30-42-3213-54990
Misc. supplies and
services

866
190-00-00-0000-56790
Pooled Cash
Investment Fees

6,138
413-00-00-8210-58110 Bond principal

133,599
841-12-07-7820-52923
Insurance claim
payments

620,195
843-12-07-7823-51211
Health
insurance/retired

358,003
843-12-07-7823-52919
MRA and DCAP
payments

284,769
843-12-07-7823-52922
Medical active
premium

489,893
843-12-07-7823-52925
Health retired
premiums

106,166
843-12-07-7823-52926
Health
Administrative Fee

15,771
951-00-00-0000-49122
From Library
Private Trust 3,599
934-00-00-0000-59109
To Library JPA
Fund

3,599
951-00-00-0000-49191
Intra-entity fund
transfer in 28,500
961-00-00-0000-59191
Intra-entity fund
transfer out

28,500

8.10 Clean-Up Items

6. Capital Investment Program
The following changes are due to funds incorrectly being placed into the Sidewalk Fund:
they are properly budgeting the funds into the Underground Utility project.

Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
p409452-926-
0-0
Sidewalk/Access Ramp 311-00-00-0000-49135 From Sidewalk inlieu fund(40,000) 315-40-00-9330-46345 Sidewalk in-lieu
charge
(40,000)
p402404-927-
0-0
Underground Utility In
Lieu
101-00-00-0000-49135 From Sidewalk inlieu fund40,000
p402404-100-
2020-0
Underground Utility In
Lieu
101-00-00-0000-54390 Maintenance- other
infrastructure
40,000
Funds were transferred in FY 2022 and FY 2023 into the CIP Fund (Fund 311) to pay down the fund’s deficit. It has been decided that the best way to truly pay down this fund’s deficit is to associate the previously-transferred funds with projects that are overspent.

To do this, these funds need to be transferred back into the General Fund (Fund 101) and then transferred into specific CIP projects. The table below shows these transfers and the additional budget being received by these projects, to pay down the CIP deficit.

The last item on the table below removes a duplicated line that existed in the FY 2024 midyear budget adjustment.

Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
101-00-00-0000-49102
From Capital
Improvement
Projects Fund

2,000,000
c101701-912-
0-0
Space Utilization Design
for City Hall 311-00-00-0000-49101 From General Fund

769,515
c301801-912-
0-0
DeLaveaga Golf Course
Building Remodel 311-00-00-0000-49101 From General Fund

156,000
c401501-912-
0-0
West Cliff Drive
Stabilization 311-00-00-0000-49101 From General Fund

627,893
c212306-912-
0-0
Fire Station 3 Butler
Building 311-00-00-0000-49101 From General Fund

2,884
c212302-912-
0-0
Fire Station 2 Exercise
& Storage Facility 311-00-00-0000-49101 From General Fund

7,435
m609195-912-
0-0
Public Facilities -
Maintenance 311-00-00-0000-49101 From General Fund

436,273
311-00-00-0000-59101 From General Fund

2,000,000
101-00-00-0000-59103
To General Capital
Improvement Fund

2,000,000

8.11 Clean-Up Items (continued)

6. Capital Investment Program (continued)
The table below shows adjustments being made to CIP projects to bring their revenues and expenditures into balance. The corresponding transfer in/out accounts are being adjusted so that they continue to align where needed.

Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
c401610-935-
0-0
Catch Basin
Replacement Program
311-00-00-0000-49130 Transfer in- Gas Tax (800)
221-00-00-0000-59103 Transfer to General
CIP
(800)
C401709-935-
0-0
CMP Storm Drain Pipe
Replacement
311-00-00-0000-59130 Transfer in- Gas Tax (863)
221-00-00-0000-59103 Transfer to General
CIP
(863)
c402214-216-
1174-0
Electric Vehicle
Charging Station
Expansion 311-40-00-9410-43266
State capital grantsCEC
(68,105)
c401208-100-
2020-0
Riverside Avenue
Improvements Phase II
311-40-64-9360-57390 Other
infrastructure

347,784

7. City Manager’s Office
The Encampment Resolution Funding Grant Program Round 3 (ERF-3-R) grant was approved by prior Council action and has since been awarded, but the associated budget adjustment to account for this budgetary change was not concurrently submitted to Council.

Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
g102404-216-
2006-0
Encampment
Resolution Round 3
(ERF-3-R) 101-10-16-6105-43250
State capital grants
and contributions 4,032,184
g102404-100-
2020-0
Encampment
Resolution Round 3
(ERF-3-R) 101-10-16-6105-57990 Other capital outlay

4,032,184

8. Economic Development and Housing
Economic Development and Housing is adjusting Fund 137 (AHSC and IIG State Grants), Fund 253 (HOME) and Fund 311 (General CIP) project funds. These adjustments reflect revenues and appropriations of grants and local funding sources (Coastal Conservancy, IIG and AHSC, REAP, METRO) that were approved by prior Council action, but associated budget adjustments to account for these budgetary changes were not concurrently submitted to Council.

8.12 Clean-Up Items (continued)

8. Economic Development and Housing (continued)
Also listed below is the correction of a duplication error of HOME funding in the Pacific Station North project, as this was already budgeted as a loan directly in Fund 253.

Additionally, revenues and expenditures on the Pacific Station North project are being adjusted so that they balance.

The last adjustment is to budget the ED Trust Fund Joby Participation Employment Incentive Agreement appropriation, approved by prior Council action, into a multiyear project, which was not done prior to the item being submitted to Council.

Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
c511502-509-
5099-0
Wharf Rehabilitation
Projects 311-51-80-9990-43353
From Successor
Agency
Contributions (1,100,000)
c512501-509-
5098-0
Wharf Resilience
Improvements 311-51-80-9990-43353
From Successor
Agency
Contributions 1,100,000
c512501-914-
0-0
Wharf Resilience
Improvements 311-00-00-0000-49108
Transfer from City
Public Trust 533,900
c512501-255-
1041-0
Wharf Resilience
Improvements 311-51-80-9990-43257
State Capital
Grants Coastal
Conservancy 6,893,700
Wharf Resilience
Improvements 130-00-00-0000-59103
Transfer out City
Public Trust 533,900
c512501-100-
2020-0
Wharf Resilience
Improvements 311-51-80-9990-57390
Other
infrastructure 8,527,600
c511502-100-
2020-0
Wharf Rehabilitation
Projects 311-51-80-9990-57390
Other
infrastructure

(1,100,000)
c512402-216-
1057-0
ED IIG Parks and
Paseos 137-51-81-5212-43290 State grants - other 2,624,848 c512402-100-
2020-0
ED IIG Parks and
Paseos 311-51-80-9990-57390
Other
infrastructure 2,624,848
g512406-216-
2273-0 ED AHSC Metro 137-51-81-5211-43290 State grants - other 1,750,000 g512406-100-
2020-0 ED AHSC Metro 137-51-81-5211-56960 Loans and Grants 1,750,000 c512002-290-
2274-0
Downtown Mixed-Use
Project 311-51-80-9990-43290 State grants - other 169,380 c512002-100-
2020-0
Downtown Mixed-Use
Project 311-51-80-9990-57390
Other
Infrastructure 169,380
c512002-290-
2274-0
Downtown Mixed-Use
Project 311-51-80-9990-43290 State grants - other 169,380 c512002-100-
2020-0
Downtown Mixed-Use
Project 311-51-80-9990-57390
Other
Infrastructure 169,380
c512201-216-
1057-0 Pacific Station North 311-51-81-5212-43290 State grants - other 1,000,000 c512201-100-
2020-0 Pacific Station North 311-51-80-9990-57390
Other
Infrastructure 1,000,000

8.13 Clean-Up Items (continued)

7. Economic Development and Housing (continued)
Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
c512201-915-
0-0 Pacific Station North 311-00-00-0000-49150
From HOME
Investment (3,019,201)
253-00-00-0000-59103
To General Capital
Improvement Fund

(3,019,201)
c512201-435-
5025-0 Pacific Station North 311-51-80-9990-46342
Contributions -
other agencies 3,035,572
c512201-100-
2020-0 Pacific Station North 311-51-80-9990-57390
Other
Infrastructure 65,865
136-51-80-5590-56960 Loans and Grants

(500,000)
p512403-100-
2020-0
Joby Participation
Employment Incentive
Agmt 136-51-80-5590-56960 Loans and Grants

500,000

9. General Fund Department Clean-Up
What follows are multiple steps taken to close out FY 2024 to ensure that across the General Fund, departments’ actuals are reflected in their budgets and expenditures that exceeded departments’ initial allocation are balanced by the budgets of departments that were under their allocation.

Reflecting Department Actuals
Library
In FY 2024, the City’s contribution to the Library JPA was insufficiently budgeted. The known contracted amount for FY 2024 was $2,214,546, but only $1,814,751 was budgeted. The table below will correct that underbudgeting.

Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
101-35-50-3410-54990
Misc. supplies and
services

399,795
Internal Legal Services Fees
The City has a Central Service Allocation Plan (CSAP) for creating an annual budget for City departments that accounts for the work that internal service departments perform that are hard to itemize across departments. One item that is in the CSAP that can be itemized is the use of the City Attorney, as a monthly invoice is paid to cover these services for the City. Starting with FY 2024, the budgets for legal services- internal were

8.14 Clean-Up Items (continued)

9. General Fund Department Clean-Up (continued)
Reflecting Department Actuals (continued)
based off the prior year’s actuals, but the plan has been to adjust budgets at the end of the year to reflect actuals for FY 2024. The table below shows the adjustments to bring department budgets in alignment with their actual spend on internal legal services.

Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
101-01-01-1110-52102
Legal servicesinternal

312,958
101-10-03-1210-52102
Legal servicesinternal
131,442
101-10-03-1211-52102
Legal servicesinternal
(67)
101-10-03-1217-52102
Legal servicesinternal
(581)
101-10-03-1214-52102
Legal servicesinternal
430,360
101-10-16-6105-52102
Legal servicesinternal
54,245
101-12-00-1230-52102
Legal servicesinternal

11,479
101-14-11-1241-52102
Legal servicesinternal
30,161
101-15-10-1251-52102
Legal servicesinternal
4,002
101-20-20-2101-52102
Legal servicesinternal
(121,775)
101-21-30-2201-52102
Legal servicesinternal
(81,587)
101-30-40-3101-52102
Legal servicesinternal
(116,290)
101-40-60-4101-52102
Legal servicesinternal

(4,148)
101-50-70-1301-52102
Legal servicesinternal
(87,016)
101-51-80-5401-52102
Legal servicesinternal
170,886

8.15 Clean-Up Items (continued)

9. General Fund Department Clean-Up (continued)
Reflecting Department Actuals (continued)
Capital Asset Reclassification
An analysis of actual expenditures within the Police, Fire, and Water departments and the Refuse division revealed that some purchases during FY 2024 were not correctly charged to capital asset accounts even though they met the definition of a capital asset. The following adjustments move those funds from the non-capital accounts they currently exist in into the capital accounts in which they ought to be.

Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
g202303-100-
2020-0
Police Officer Wellness
& Mental Health 101-20-20-2101-52199
Other professional &
technical services

(14,438)
g202303-100-
2020-0
Police Officer Wellness
& Mental Health 101-20-22-2103-57490
Other machinery and
equipment

14,438
101-20-22-2103-52199
Other professional &
technical services

(36,477)
101-20-22-2103-57402 Vehicle equipment

36,477
101-20-22-2103-52413
Radio operation/
maintenance - outside

(14,051)
101-20-22-2103-57403 Radio equipment

14,051
101-21-31-2202-52246
Building and facility o &
m - outside

(46,107)
101-21-31-2202-54202
Equipment purchases –
non-capital

(28,795)
101-21-31-2202-57490
Other machinery and
equipment

74,902
711-70-95-7106-53105
Small tools and
equipment

(8,655)
711-70-95-7106-57490
Other machinery and
equipment

8,655
721-40-65-7203-52244
Other equipment
operation/maintenance

(15,023)
Balancing Department Allocations
The items in the table below accomplish two major tasks. First, they balance out the additions to the FEMA Certification project funding (see page 1), the Library underbudgeting (see page 9), and the legal services- internal costs (see previous page).

Next, they represent a set of additions to some departments’ budgets and reductions to others, to result in all General Fund departments being at or below their final budget.

Departments over their allocated budget by more than 1% in FY 2024 and the reasons for the overage were:

8.16 Clean-Up Items (continued)

9. General Fund Department Clean-Up (continued)
Balancing Department Allocations(continued)
- City Attorney (Department 11): This department’s costs differ based on City legal needs within a given year.
- Finance (Department 14): This department saw the departure of employees with a long tenure at the City, so personnel costs associated with their departure were larger than anticipated. Additionally, the department had a higher level of staffing than the 10-year trend budgeted as a vacancy adjustment, so that negative adjustment needs to be brought closer to zero.
- Planning and Community Development (Department 50): This department saw large engineering fees due to large, complex projects being undertaken within the City. Additionally, the service costs due to general plan updates were larger than anticipated.
- Economic Development and Housing (Department 51): A contributing factor to the department being $68,525 over budget, after considering internal legal service fees, was the department anticipated more interfund labor credits than received in FY 2024.

The overages listed above are being covered by the General Fund’s non-Departmental component (Department 00), the City Manager’s Office (Department 10), Information Technology (Department 15), Police (Department 20), Fire (Department 21), and the Parks and Recreation Department (Department 40), all of which were under the budgets appropriated to them in the FY 2024 budget.

Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
101-00-00-0000-58150 Advance principal (177,947)
101-00-00-0000-58250 Advance interest (322,053)
101-10-00-1910-52961
Dues and
memberships (15,036)
101-10-03-1210-54801 City planned events (24,685)
101-10-03-1214-52199
Other professional
& technical services (63,021)
101-10-03-1217-52199
Other professional
& technical services (201,000)
101-11-04-1220-52132
Legal services -
outside 841,569
101-14-11-1241-51115 Termination pay 50,881
101-14-11-1241-51122 Temporary 26,264
101-14-11-1241-51132 Special vacation pay 20,777

8.17 Clean-Up Items (continued)

9. General Fund Department Clean-Up (continued)
Balancing Department Allocations (continued)
Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
101-14-11-1241-51199 Vacancy adjustment 84,549
101-14-11-1241-52135
Financial services -
outside 29,266
101-15-10-1251-51110 Regular full time (88,454)
101-15-10-1251-52248
Software
maintenance
services (29,538)
101-15-10-1251-52403
Telecommunications
service - outside (15,173)
101-20-22-2103-57490
Other machinery
and equipment (69,368)
101-20-22-2104-52302 Travel and meetings (28,800)
101-20-23-2107-52246
Building and facility
o & m - outside (30,558)
101-21-31-2202-54202
Equipment
purchases - non
capital (61,164)
101-21-32-2203-52199
Other professional
& technical services (7,032)
101-30-40-3101-52153
Program services -
grants (215,300)
101-30-41-3105-52199
Other professional
& technical services (196,602)
101-30-41-3105-54990
Miscellaneous
supplies and
services (111,080)
101-30-41-3106-51110 Regular full time (170,871)
101-30-41-3120-51110 Regular full time (100,000)
101-30-41-3120-52153
Program services -
grants (3,160)
101-35-50-3410-54990
Miscellaneous
supplies and
services 399,795
101-40-61-4210-57402 Vehicle equipment 36,193
101-50-70-1301-52140 Planning services 15,876
101-50-70-1301-52150 Merchant bank fees 29,976
101-50-72-1303-52156
General plan update
services 188,164

8.18 9. General Fund Department Clean-Up (continued)
Balancing Department Allocations (continued)
Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
101-50-74-2301-52137
Engineering fees -
outside 130,420
101-50-74-2301-52199
Other professional
& technical services 8,589
101-51-80-5401-51911
Interfund labor -
credit 68,525

10.Library
The table below shows corrections that will result in revenue and expenditure budgets matching coming into the Library JPA Fund (Fund 951). These are currently not in balance in our financial system.

Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
931-00-00-0000-59109
To Library JPA
Fund

12,000
932-00-00-0000-59109
To Library JPA
Fund

192,579
933-00-00-0000-59109
To Library JPA
Fund

190

11.Non-Departmental
The following items were identified by Finance Department staff as corrections needed for proper accounting of the FY 2024 budget, programs, and initiatives.

The American Rescue Plan Act (ARPA) and the CA14 Homelessness Action Plan Grants (CA14) funds were fully expended by the end of FY 2024. The following shows corrections to the transfers to ARPA and CA14, which were incorrectly budgeted in FY 2024 (the ARPA budget was entered as CA14 and vice versa). These corrections allow the budget to match the project funding approved in the FY 2024 midyear budget adjustment.

What follows is a fix to the budget for the Parking Fund. The FY 2024 midyear budget adjustment included adjustments accounting for the purchase of a building for a Parking office, but the revenue for the purchase was missing and is now being corrected.

Next are corrections associated with the Carbon Reduction Fund. A budget adjustment BA2439, was processed, but it incorrectly added instead of subtracted of a budget amount. An unapproved Carbon Fund transfer was budgeted, so that is being removed.

Last is a correction to budget adjustment BA2452, which had a number transposed:
instead of $3,185,000, the budget adjustment listed $3,815,000.

8.19 Clean-Up Items (continued)

11.Non-Departmental (continued)
Project
Number Project Title
General Ledger (GL)
Account String Account Title Amount
p102202-992-
0-0 101-00-00-0000-49177 Transfer in- ARPA

(22,008)
p102202-991-
0-0 101-00-00-0000-49178 Transfer in- CA14

22,008
101-00-00-0000-49177 Transfer in- ARPA

287,219
101-00-00-0000-49178 Transfer in- CA14

(1,287,219)
292-00-00-0000-59101 Transfer out- ARPA

(22,008)
293-00-00-0000-59101 Transfer out- CA14 22,008
292-00-00-0000-59101 Transfer out- ARPA

287,219
293-00-00-0000-59101 Transfer out- CA14

(1,287,219)
741-00-00-0000-49108
From City Public
Trust Fund

2,300,000
p501801-999-
0-0
Blue Beam Plan Review
System 101-00-00-0000-49167
From Carbon
Reduction Fund

(6,974)
p501801-999-
0-0
Blue Beam Plan Review
System 101-00-00-0000-49167
From Carbon
Reduction Fund

(6,974)
133-00-00-0000-59101 To General Fund

(13,948)
943-00-00-0000-59906
Contributions from
SA to City

(630,000)

8.20 City Council

AGENDA REPORT
DATE: 09/19/2024
AGENDA OF: 10/22/2024
DEPARTMENT: Finance
SUBJECT: Liability Claims Filed Against the City of Santa Cruz (FN) RECOMMENDATION: Motion to reject the liability claims of 1) Rosemarie Patricia Slawinski, 2) Keyan Zokaie, 3) Judith Anne Baldwin, 4) Noah J. Sweeters, 5) Rebecca Barraza, and 6) Barbara Lawrence, based on staff recommendation.

BACKGROUND: N/A
DISCUSSION: I. Claims to be rejected:

1. Claimant: Rosemarie Patricia Slawinski
Date of occurrence: 8/24/2024
Date of claim: 9/9/2024
Amount of claim: $ 408.60
Claimant seeks reimbursement for damages to her vehicle caused by a golf ball.

Self-Represented

2. Claimant: Keyan Zokaie
Date of occurrence: 8/11/2024
Date of claim: 9/9/2024
Amount of claim: $2,000.00
Claimant seeks reimbursement for towing fees after vehicle was allegedly towed without proper notice.

Self-Represented

3. Claimant: Judith Anne Baldwin
Date of occurrence: 8/1/2024
Date of claim: 9/12/2024
Amount of claim: $744.56
Claimant seeks leak forgiveness credit on water bill after an alleged water leak was discovered on property side of water meter.

Self-Represented

9.1 4. Claimant: Noah J. Sweeters
Date of occurrence: 7/30/2024
Date of claim: 9/13/2024
Amount of claim: Unspecified
Claimant seeks reimbursement for damages to their vehicle allegedly caused by a recycling truck.

Self-Represented

5. Claimant: Rebecca Barraza
Date of occurrence: 3/28/2024
Date of claim: 9/26/2024
Amount of claim: $3,000.00
Claimant seeks damages and compensation for medical expenses allegedly resulting from water in her garbage cans.

Self-Represented

6. Claimant: Barbara Lawrence
Date of occurrence: 2/4/2024
Date of claim: 8/5/2024
Amount of claim: Unspecified
Claimant seeks compensation for injuries and damages allegedly caused by a falling tree.

Represented by Legal Counsel
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: N/A HEALTH IN ALL POLICIES (HiAP): N/A
FISCAL IMPACT: No fiscal impact.

Prepared By:

Ross Brandon
Risk & Safety Manager
Submitted By:

Elizabeth Cabell
Finance Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

9.2 City Council

AGENDA REPORT
DATE: 10/02/2024
AGENDA OF: 10/22/2024
DEPARTMENT: Human Resources
SUBJECT: Request to Hire a CalPERS Retired Annuitant to Fulfill Interim Water Assistant Finance Director Duties During and After Recruitment (HR) RECOMMENDATION: Motion to approve a contract to hire a CalPERS Retired Annuitant to fulfill Interim Assistant Finance Director duties for the Water Department while position is vacant and during recruitment and after for cross-training.

BACKGROUND: As part of the FY 2021 Recommended Budget, the Water Department added the Water Chief Financial Officer (CFO) position.

As the Department embarked on major capital projects including the Newell Creek Inlet/Outlet Replacement Project, the Graham Hill Water Treatment Plant Concrete Tanks Replacement and Facilities Improvement projects, as well as various tank and pipeline replacement projects, financing the projects through debt became necessary. Obtaining and managing the Department’s various Federal and State loans, grants, lines of credit, and debt, became increasingly complex necessitating a higher-level position.

DISCUSSION: The Water Department’s CFO position became vacant at the end of August 2024 as a result of a retirement, and a review of the job duties and responsibilities commenced with the assistance of the Finance Director and Chief People Officer. It is expected to take three to four months to conduct the recruitment process and hire a candidate. Due to the vital role this position plays in the financial health of the Water Department and the fact that it requires specialized skills, an interim appointment is necessary.

The Interim Assistant Finance Director will be responsible for the most pressing duties assigned to this position in the Water Department including, but not limited to:
 Update and maintain the Department's Financial Model.  Manage the Department's finances including tracking revenue, consumption and sales, ensuring financial metrics (debt service coverage ratio, fund balances) are maintained, monitoring cashflow, and working with stakeholders including rating agencies, the Finance Department, and the Water Commission.
 Administer the Department's debt portfolio by determining the appropriate debt financing strategy, debt capacity analysis, secure and execute various financing instruments (SRF, WIFIA, Line of Credit, grants, and bonds). Oversee the reimbursement processes associated with the various debt instruments.

10.1  Coordinate work of the Water Department with the Finance Department by delineating roles and responsibilities of each Department, ensure timely payments of debt service, prepare required debt disclosure certificates and assist in the preparation of the Annual Comprehensive Financial Report (ACFR).
 Oversee and ensure completion of lender’s required financial reports, reimbursement claims and Water Commission quarterly financials.
 Supervise and participate in the creation of the FY 2026 Operating and Capital budgets on behalf of the Department.

These are specialized skills that cannot be fulfilled by another Water Department employee during recruitment.

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

HEALTH IN ALL POLICIES (HiAP): This action 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 by effectively and efficiently managing the Department’s finances.

FISCAL IMPACT: There is no impact to the City’s General Fund resulting from this recommendation. Funding for the interim position is available in the Water Department’s FY 2025 Recommended Budget, Fund 711.

Prepared By:

Cathy Bonino
Principal Human Resources
Analyst
Submitted By:

Sara De Leon
Chief People Officer
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. AGREEMENT CULVER.DOCX

2. ASSISTANT DIRECTOR OF FINANCE JOB DESCRIPTION EXHIBIT A.DOCX

3. JOB DUTIES DURING INTERIM APPOINTMENT- EXHIBIT B.PDF

10.2 AGREEMENT FOR TEMPORARY EMPLOYMENT OF RETIRED ANNUITANT TO

PROVIDE SPECIAL ASSISTANCE TO THE CITY OF SANTA CRUZ
THIS AGREEMENT, made and entered into on October 22, 2024, by and between the City of Santa Cruz, State of California, a municipal corporation, hereinafter called "City" and Dave Culver, hereinafter called “Mr. Culver” (collectively referred to as “the Parties”) both of whom understand as follows:

FACTS

1. The City is in need of special assistance on a temporary basis for a limited duration to perform the duties of the Water Department's Assistant Finance Director during the position’s recruitment and after for cross-training, as more fully described herein;

2. Mr. Culver formerly served as a Finance Director prior to his retirement and possess the specialized skills and training required to perform the duties of the temporary assignment as described in Paragraph 1.

3. Mr. Culver is a retired annuitant under the California Public Employees' Retirement System ("CalPERS") and is limited in his ability to accept public employment without reinstatement pursuant to Government Code sections= 21220 et seq., and may not work more than 960 hours within a fiscal year;

4. Mr. Culver desires to provide temporary part-time services to City under the terms of this Agreement and within the constraints of Government Code section 21224 as a CalPERS retired annuitant and City desires to temporarily hire Mr. Culver on these terms to provide specialized services of a limited duration, subject to the terms and conditions set forth in this Agreement;

AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants herein contained, the Parties agree as follows:

Section 1. Powers. Duties and Responsibility during the Temporary Employment A. As a retired Ca1PERS annuitant, the City shall employ Mr. Culver on a work schedule determined by the City Manager, or designee not to exceed 960 hours for the fiscal year 2024/2025. Mr. Culver is required to track all hours worked and regularly report them to the City Manager, or designee. Mr. Culver agrees to notify the City Manager, or designee, when his hours for the fiscal year 2024/2025 exceed 940 hours.

B. Mr. Culver is appointed as a temporary employee and shall temporarily provide highly-specialized skills to serve as an interim Assistant Finance Director during the position’s Recruitment process. The job description for Assistant Finance Director is attached as “Exhibit A” to this Agreement and is incorporated by reference. Specifically, Mr. Culver will be expected to perform the tasks listed in the attached as “Exhibit B” to this Agreement and is incorporated by

10.3 reference. Mr. Culver’s duties may be modified in the future by the City Manager, or designee, in keeping with the specialized and limited nature of this assignment.

Mr. Culver hereby agrees to faithfully and diligently perform the assigned duties as specified by this Agreement. Mr. Culver is expected to devote reasonable and necessary time outside normal office hours to the business of the City. Any time spent working outside normal office hours must be tracked and reported to the City and will count towards the 960 hour limit.

C. The City hereby agrees to employ Mr. Culver as a temporary employee of the City of Santa Cruz. Employment shall commence on the 28th day of October 2024 (“Commencement Date”) and shall end not later than October 27, 2025 (“Termination Date”).

Section 2. Term & Termination
A. The employment of Mr. Culver under this Agreement is at will. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the Mr. Culver to resign at any time from his position with the City. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the City to terminate services of Mr. Culver, Mr. Culver has no property interest in his position.

1. This Agreement shall expire as of the first of the following to occur: (i) satisfactory completion of the temporary assignment; (ii); upon Mr. Culver working the 960th hour for the City including hours worked for other CalPERS Agencies during the City’s 2024- 2025 fiscal year; or (iii) upon termination of the Agreement by either Mr. Culver or the City Manager as provided in this Section 2 of this Agreement.

B. Mr. Culver serves at the pleasure of the City Manager and nothing herein shall be taken to imply or suggest a guaranteed term or tenure.

C. Mr. Culver agrees to remain in the exclusive employ of the City of Santa Cruz while employed by the City, and to avoid any conflicting interests. Exclusive employment, however, shall not be construed to preclude occasional teaching, writing, speaking or consulting performed on the Mr. Culver’s time off, even if outside compensation is provided for such services. Said activities are expressly allowed, provided that in no case is any activity allowed which would present a conflict of interest with the City. Mr. Culver agrees to provide written notification of any outside activity within the meaning of this provision. If Mr. Culver works for any other CalPERS employer during the term of this Agreement, Mr. Culver must notify City of this employment, and disclose to the City on a periodic basis (at a frequency to be determined by City) the number of hours Mr. Culver is performing work for the other employer to ensure that the maximum number of hours he may work each fiscal year is not exceeded.

D. As a CalPERS retired annuitant, hours paid for Mr. Culver’s services shall not exceed 960 hours for the fiscal year 2024/2025, including hours worked for other CalPERS Agencies. Weekly hours will vary to ensure total hours worked will not exceed 960 hours for the fiscal year limit set by CalPERS. The City Manager (or designee) will have discretion and control over the amount of weekly work hours, hours scheduled to work, and days scheduled.

10.4 E. Mr. Culver understands that this is an unrepresented position and that he is not a member of any bargaining unit and he is not covered by the terms of any collective bargaining agreement with any represented or unrepresented group of City employees.

F. The operative date of this Agreement shall be the date first written above and in this Agreement. This Agreement shall expire no later than Termination Date, but may expire sooner based upon the City's needs, as determined in its sole discretion.

Section 3. Salary and Compensation
A. City agrees to pay Mr. Culver for their services rendered pursuant to this Agreement based on performance of duties comparable to those performed by a Senior Program Manager, at an hourly rate of $91.81 per hour. City has confirmed that this hourly rate does not exceed the maximum monthly base salary paid to other employees performing comparable duties as listed on the City’s publicly available pay schedule. Payments shall be made in installments in the same form and manner upon which other City employees are paid and include all applicable payroll taxes and withholdings.

B. Mr. Culver agrees for his services rendered pursuant to this Agreement no other compensation, benefits, incentives, compensation in lieu of benefits, or any other form of compensation in addition to the hourly pay rate will be granted. CalPERS service credit will not be accrued and no additional retirement rights or benefits will be granted to Mr. Culver.

Section 4. Indemnification.

A. City Obligations. City shall indemnify, defend and save harmless Mr. Culver against any tort, professional liability claim or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of Mr.

Culver’s duties as Assistant Finance Director. Should the City compromise and settle any such claim or suit, it shall pay the amount of any settlement or judgment rendered thereon. Said indemnification shall extend beyond termination of employment and expiration of this Agreement and shall provide full and complete protection to Mr. Culver by the City for any acts undertaken or committed in Mr. Culver’s capacity as Assistant Finance Director. Mr. Culver shall provide prompt written notice of filing of any claim or suit and shall fully cooperate with City in the defense of any such action.

B. Mr. Culver Obligations. In the event that Mr. Culver is determined by a court of competent jurisdiction or the California Public Employees Retirement System (CalPERS) is found in violation of the CalPERS system, Mr. Culver shall indemnify, defend, and hold harmless the City for the payment of any employee and/or employer contributions for CalPERS benefits incurred, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City

10.5 Section 5. Conflict of Interest Prohibition.

It is understood and agreed that because of the nature of the duties to be performed under this Agreement within and on behalf of the City of Santa Cruz and its citizenry, Mr. Culver shall not, during the term of this Agreement, individually, as a partner, joint venture, officer or shareholder, invest or participate in any business venture conducting business in the corporate limits of the City of Santa Cruz, except for stock ownership in any company whose capital stock is publicly held and regularly traded, without prior approval of the Council. For and during the term of this Agreement, Mr. Culver further agrees, except for a personal residence or residential property acquired or held for future use as his personal residence, not to invest in any other real estate or property improvements within the corporate limits of the City of Santa Cruz, without the prior written consent of the Council.

Section 7. General Provisions.

A. The text herein shall constitute the entire Agreement between the parties with respect to the subject matter of this Agreement and shall supersede all prior negotiations, representations, or agreements, either written or oral, between City and Mr. Culver as of the effective date of this Agreement. City and Mr. Culver agree that each has fully participated in the review and revision of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendment to this Agreement.

B. This Agreement may be amended or modified only by an instrument in writing signed by the City Manager and Mr. Culver.

C. This Agreement shall be binding upon and inure to the benefit of the heirs at law and executors of Mr. Culver.

D. Any waiver of any terms or conditions of this Agreement must be in writing and signed by the City and Mr. Culver. A waiver of any term or condition of this Agreement shall not be construed as a waiver of any other term or condition in this Agreement.

E. In performing this Agreement, the parties shall comply with all applicable federal, state, and local laws and regulations.

F. If any provisions, or any portion thereof, contained in this Agreement is held unconstitutional, invalid or unenforceable, the remainder of this Agreement, or portion thereof, shall not be affected and shall remain in full force and effect.

G. This Agreement shall be interpreted according to the laws of the State of California. Venue for any action or proceeding regarding this contract shall be in Santa Cruz County, California.

10.6 IN WITNESS THEREOF, the City of Santa Cruz has caused this Agreement to be signed and executed on its behalf by its City Manager and duly approved to form by its City Attorney, in duplicate, the day and year first written above.

CITY OF SANTA CRUZ, a Municipal
Corporation of the State of California
By: ________________________________ By: ________________________________ Matt Huffaker Dave Culver
City Manager
Date: _______________________________ Date: _______________________________ Approved as to form:

By: ________________________________
Office of the City Attorney
Date: _______________________________

10.7 EXHIBIT A

CITY OF SANTA CRUZ

ASSISTANT DIRECTOR OF FINANCE
Reports to: Director of Finance or Director of Water or Director of Public Works Supervises: Finance Manager, Principal Management Analyst, Management Analyst Bargaining Unit: Management

DESCRIPTION
Positions may be assigned to the Finance Department, Water or Public Works Department. Under general direction, the position may be responsible for the oversight and direction of several divisions including, accounting services, payroll, accounts payable, purchasing, auditing and treasury/revenue.

Manages assigned departmental services and supervises and coordinates the work of staff engaged in operations related to assigned functional areas. Provides direct administrative and analytical support to the Director and assists in the overall management of the Department including budget preparation.

Additionally, under general direction the position is responsible for all department financial planning activities including financial planning and analyses, financial modeling and forecasting, and bond sales timelines.

DISTINGUISHING CHARACTERISTICS
The Assistant Director of Finance is distinguished from the Director of Finance, Director of Water or Director of Public Works in that the latter classifications have overall responsibility for all operations, functions and divisions of the Department. The Assistant Director classification is distinguished from the next lower classification of Finance Manager in that the latter is a divisionlevel manager having responsibility over one or more financial programs.

TYPICAL DUTIES (May include but are not limited to those duties listed below):
 Assists the Director in managing and directing department staff, operations and service levels.  Contributes to the development of department goals and objectives and policies and procedures; recommends modifications to existing polices and the establishment of new policies to the Director.
 Supervises, trains, establishes and monitors employee performance objectives and evaluations of division managers; recommends the selection, promotion and performance management of division employees; encourages teamwork and collaboration.  Monitors departmental fiscal operations; administers fiscal controls and fiscal policies to ensure compliance with administrative and legal restrictions.  Analyzes and recommends strategies to improve effectiveness of operations by conducting a variety of organizational studies and operational objectives.

10.8 City of Santa Cruz
Assistant Director of Finance
2  Conducts analysis and provides recommendations on sensitive issues including labor negotiations.
 Prepares and manages the development of complex financial and management reports, including presentations to the City Manager and City Council.  Assists with development of the city budget; participates in departmental budget reviews and analysis of the Capital Investment Program.
 Responsible for all Department financial planning activities including financial planning and analysis, cash flow analysis, revenue bond sales, development of rates/fees/charges  Manages debt financing programs, including long- and short-term debt financing, assures compliance with debt covenants and disclosures, coordinates required updates and presentations to debt rating agencies.
 Assesses and monitors cash flow projects, cash forecast, and cash requirement needs.  Participates in the analysis and interpretation of utility billing records and customer-related data.
 Oversees the preparation of periodic and annual financial statements and other reports for City management and other agencies.
 Reviews financial analyses developed by consultants, departments or other agencies to verify their completeness and accuracy.
 Manages large and complex projects by coordinating work with other City departments as well as other agencies or financial institutions.
 Administers major projects as determined by the Director.  Acts as liaison to independent auditors.
 Directs the preparation of interim and annual financial reports, and manages the financial reporting requirements of the City's Federal and State grant programs.  Provides oversight of financial systems including the maintenance and upgrade of the financial, budget, and payroll systems as required.
 Creates and sustains a culture of continuous business improvement to enhance the efficiency and effectiveness of the Department’s performance.
 Represents the City in meetings with local, state and federal agencies; business and community groups and members of the public regarding financial matters.  Provides support and advice to the City Manager, Human Resources and other departments on financial policy matters.
 Assists the Director with long-range forecasting
 May acts as Director of Finance in the Director's absence if assigned to the Finance Department.  Performs other related duties that may be reasonably expected as part of this classification.

WORKING CONDITIONS
Position requires prolonged sitting, standing, walking, reaching, twisting, turning, kneeling, bending, squatting and stooping in the performance of daily activities. The position also requires grasping, repetitive hand movement and fine coordination when using a computer keyboard.

10.9 City of Santa Cruz
Assistant Director of Finance
3 Additionally, the position requires near and far vision when reading and using a computer. Acute hearing is required when providing phone and personal service. The need to lift, push and pull files, paper and documents weighing up to 25 pounds also is required. Some of these requirements may be accommodated for otherwise qualified individuals requiring and requesting such accommodations.

MINIMUM QUALIFICATIONS
The minimum qualifications for Education, Experience, Knowledge, Skills and Abilities are the following:

Education and Experience:
 Bachelor's degree from an accredited college or university in accounting, finance, business or public administration, economics or a related field; and  Four (4) years of increasingly responsible professional advanced level financial management which include two (2) years in a management capacity, and which also include two (2) years of experience in municipal finance.
 Four (4) years of supervisory experience.

Knowledge:
 Generally Accepted Accounting Principles (GAAP), Government Accounting, Auditing and Financial Reporting (GAAFR) and Government Accounting Standards Board (GASB), accounting standards and pronouncements.
 Principles and practices of public administration.
 Budget and financial analysis.
 Principles and practices of financial policy development and implementation; revenue forecasting; financial control systems; methodology, laws, rules and regulations that apply to local government fiscal operations; sources of revenue and expenditures typical of a local government; investment of public funds; debt management; financial analysis; municipal budgeting (operating and capital) and long range forecasting.  Principles of supervision, leadership, training and performance evaluation.  Auditing principles and practices.
 Statistical research and reporting methods.
 Proficient computer skills including but not limited to Microsoft Office products and financial operating software systems and database.

Abilities:
 Accurately analyze, evaluate, and summarize complex and technical financial and management records for accuracy and conformance to procedures, rules and regulations.  Develop, modify, and implement accounting procedures, policies and systems.  Effectively plan, organize, assign, and supervise work of assigned personnel.

10.10 City of Santa Cruz
Assistant Director of Finance
4  Interpret, apply and explain rules, regulations, policies and procedures regarding accounting and auditing practices.
 Accurately analyze problems, identify alternative solutions, project consequences of proposed actions and implement recommendations in support of goals.  Demonstrate a high level of proficiency in various software applications, including spreadsheets, databases and presentation software.
 Exercise sound and independent judgment, conduct independent analysis and make recommendations on difficult and sensitive issues.
 Maintain confidentiality.
 Communicate effectively both verbally and in writing.  Represent the Finance Department to outside agencies and organizations; participate in community and professional groups and committees; provide technical assistance as necessary.  Recognize occupational hazards and utilize standard safety procedures.  Establish and maintain effective working relationships with those contacted in the course of work.

Licenses and Certificates
Possession and continued maintenance of a valid California Class C drivers’ license.

DESIRABLE QUALIFICATIONS
Certified Public Accountant (CPA)
Experience with municipal utility services.

Classification No. 704
Date of Issue: 9/90
Supersedes: 4/21
Update: 9/24
Career Ladder
 Finance Director
 Assistant Finance Director
 Finance Manager
 Sr. Accountant
 Accountant I/II
 Accounting Services Supervisor
 Accounting Technician
 Accounting Assistant II

10.11 Task Subtasks
Update consumption assumptions
Update debt service schedules & draw downs
Update financial model with Nov 2024 CASPER
estimates and develop O&M targets for FY2026 budget
development
Update actuals for prior year when books are closed
Track assumptions in terms of revenues, cash flow,
debt-service, reserves, etc.

Continue monitoring cash flow
Index Reserve Funds: Fund 711 and 716 reserves are
indexed to the annual operating budget; the other
funds are determined by the LRFP
Confirm metrics are met in terms of rate stabilization, debt service coverage, etc
Assess capital project implications of forecasted rate
increases not occurring through proforma modeling
Respond to rating agencies request for information to
obtain the best possible credit ratings for optimal
financial terms
Construct the appropriate financing strategy including
type of instrument, magnitude of issuance and market
timing.

Track expenditures associated with tax exempt loans
to ensure the ongoing tax-exempt status and a lower
tax-exempt interest rate. Currently those are all loans except WIFIA. DB note - we should assume the WIFIA
expenditures were financed with the 2021 and 2024
lines of credit.

Debt Capacity Analysis
Track interest rates of Tax-Exempt bonds, SRF, and
WIFIA
Review draft ACFR - review the debt footnote prepared
by the city and the revenues and expenses to avoid
past ACFR errors pertaining to the Water enterprise
fund
Ensure timely payment of debt service payments
Prepare certification of annual disclosures to lenders
Maintain master schedule for debt management
including: when debt service payments are due, State
reports (CDIAC), federal, DBE, lenders, Water
Commission.

External - Debt reporting & financial reports to lenders Internal - Debt Service Schedules to Finance
Internal - Grant status to Finance
Internal - WC Financial Reports
Financial Model Updates
Financial Management
Debt administration
Coordination with Finance
Reporting
Exhibit B
Specific Required Job Duties during Interim Appointment

10.12 City Council

AGENDA REPORT
DATE: 10/03/2024
AGENDA OF: 10/22/2024
DEPARTMENT: Public Works
SUBJECT: Escalona Drive Storm Drain Rehabilitation (c401610) – Authorization to Advertise and Award (PW)
RECOMMENDATION: Motion to approve the Plans and Specifications for the Escalona Drive Storm Drain Rehabilitation (c401610), authorize staff to advertise for bids, award the contract, and find the project exempt under the California Environmental Quality Act. The City Manager is hereby authorized and directed to execute the contract in a form approved by the City Attorney. The Director of Public Works is authorized to execute change orders within the approved project budget.

BACKGROUND: The existing storm drain between catch basins (L5-CA604 and L5-CA603) has reached the end of its service life and the existing pipe is broken and has collapsed on to itself and has caused a sinkhole to form in Escalona Drive. The existing antiquated Type A Catch Basins will be removed and replaced with modern style Type B Catch Basins.

DISCUSSION: The Escalona Drive Storm Drain Rehabilitation project will include the installation of a new section of 12-inch diameter storm drainpipe and restoring the pavement damaged by the sinkhole on Escalona Drive near the corner of Escalona Court. The improvement will reduce flooding and improve existing street conditions.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: This project is categorically exempt from the California Environmental Quality Act (CEQA) under Public Resources Code section 15301(c)(d): Class 1 Existing Facilities. The notice of exemption will be filed with the California Office of Planning and Research and Santa Cruz County.

HEALTH IN ALL POLICIES (HiAP): This project supports environmental protection and restoration. Repairing the storm drain system will improve the roadway’s longevity and safety by preventing flooding and stopping pooled water from eroding the road’s foundation. This will also improve safety for all roadway users as it will reduce the risk of hydroplaning and accidents during the rainy season.

FISCAL IMPACT: The Engineer’s Estimate for this project is $120,000.00. Funds are available in the Catch Basin Replacement Program (project c401610). There is no impact to the General Fund or project budget.

11.1 Prepared By:

Dale Cabreros
Engineering Technician
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

11.2 City Council

AGENDA REPORT
DATE: 10/03/2024
AGENDA OF: 10/22/2024
DEPARTMENT: Public Works
SUBJECT: Consulting Services for 800 West Cliff Drive - Request for Proposals and Award Contract (PW)
RECOMMENDATION: Motion to:
1) Adopt a resolution to amend the FY 2025 budget and appropriate funds in the amount of $2,000,000 to the 800 West Cliff Drive Road Realignment Project (c402515), with approximately 88% of project funding from reimbursement from the Federal Highway Administration Permanent Repair Program and the remaining 12% City match from Fund 221 – Gas Tax for consulting services for 800 West Cliff Drive; and 2) Authorize the issuance of a Request for Proposals (RFP) for Engineering, Environmental/Permitting, Geotechnical and Right of Way services and direct the City Manager to execute a Professional Service Agreement in a form acceptable to the City Attorney. The Public Works Director is authorized to execute contract amendments within the project budget.

BACKGROUND: In December 2023, and early January 2024 high wave and storm event eroded a section of the recreational path at approximately 800 West Cliff Drive and opposite Light House Field State Park. Damages from high waves statewide resulted in State Disaster Declaration (CDAA 2024-01). Through the State disaster declaration and because West Cliff Drive is a Federal-Aid Route, the City is able to access emergency repair funding from the Federal Highway Administration (FHWA). To date, the City has been approved for over $20M in FHWA funding to repair other parts of West Cliff Drive. After confirming the primary source of funding for the 800 block site, staff began evaluating alternative repair options for the damaged section of pathway.

Staff considered three alternatives, 1) a wall, similar to those recently constructed on the 900 block, 2) a pier supported walkway, as was constructed several years ago in the vicinity of Chico Ave. and 3) relocation of the road and path inland. Staff determined that road relocation presented the best repair alternative in this location because it was cost comparable to other alternatives, was in alignment with City and Coastal Commission policies, was feasible because there is space available to move inland without encroaching into developed private property, was supported by State Parks staff, and represented the most durable and resilient repair option, beyond the 100 year erosion zone without the need for additional coastal armoring.

12.1 Staff consulted with Caltrans staff regarding the funding eligibility for road relocation, and the project is eligible for funding at 88.85% federal cost share. Unlike other recent repairs, road relocation would involve right of way acquisition, and the project would be treated as a standard transportation project, which means the City must follow the normal federal procurement requirements, and environmental and permitting steps. Staff have followed this process on many other projects of this type.

DISCUSSION: The proposed project would involve the design and construction of a 400 foot long section of two-way West Cliff Drive roadway and recreational path, shifted approximately 50 feet inland, out of the 100 year erosion zone. The professional services agreement scope would include all necessary services to deliver the project such as engineering design, survey, geotechnical engineering, right of way negotiation, environmental review and permitting, and engineering and environmental monitoring services during construction.

The total design phase costs are estimated to be: $400,000. The ROW Acquisition costs are estimated to be: $294,000. The Construction phase costs are estimated to be $1,129,000.

Including staff time and other contingencies, the total project cost is estimated to be $2,000,000.

The anticipated project schedule is:

Design: December 1, 2024 – August 30, 2025
ROW Acquisition: January 1, 2025 – February 28, 2026
Construction: March 1, 2026 – November 1, 2026
As the project site will remain vulnerable to ongoing wave events and other erosion, staff are collaborating with Granite Construction to install temporary erosion control and protective measures in the interim to try and minimize loss of the remaining pathway or further threats to the road and other infrastructure.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The City will act as lead agency to complete necessary environmental evaluations. The anticipated outcome of this analysis is development of an Initial Study and Mitigated Negative Declaration.

FHWA will act as the National Environmental Policy Act (NEPA) Lead Agency.

HEALTH IN ALL POLICIES (HiAP): This project supports Health, Wellness and Sustainability by preserving access to a recreational path and coastal access, while promoting sustainability through the strategic relocation of transportation infrastructure away from high-risk areas.

FISCAL IMPACT: The attached budget adjustment creates and appropriates funds in the FY 2025 CIP project (c4025XX) 800 West Cliff Road Realignment Project. Approximately 88% of project funding will come through reimbursement from the Federal Highway Administration Permanent Repair Program. The City match will come from Fund 221-Gas Tax. There is no impact to the General Fund.

12.2 Prepared By:

Kevin Crossley
Assistant Director of Public
Works/City Engineer
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. BUDGET ADJUSTMENT.PDF

2. DRAFT REQUEST FOR PROPOSAL FOR CONSULTANT SERVICES.DOCX

12.3 City of Santa Cruz

BUDGET ADJUSTMENT REQUEST
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10/01/2024
This project aims to realign West Cliff Drive at the 800 block to provide a buffer for the road to account for the anticipated natural erosion of the area. Project will incorporate both engineering consulting services and construction. 311-40-62-9330-43155 c402515-151-1076-0 Federal Capital Grants - FHWA 1,777,000 800 West Cliff Dr Road Realignment
311-00-00-0000-49130 c402515-935-0-0 From Gas Tax 223,000 2,000,000
311-40-62-9330-57307 c402515-100-2020-0 Pedestrian/bike systems 2,000,000 800 West Cliff Dr Road Realignment
221-00-00-0000-59103 To General Capital Improvement Fund 223,000 2,223,000
-223,000
Shelley
Horrow
Digitally signed by
Shelley Horrow
Date: 2024.10.01
08:13:12 -07'00'
Nathan N.

Nguyen
Digitally signed by
Nathan N. Nguyen
Date: 2024.10.02
13:07:33 -07'00'
Emily
Burton
Digitally signed
by Emily Burton
Date: 2024.10.03
17:24:24 -07'00'
Elizabet
h Cabell
Digitally signed by
Elizabeth Cabell
Date: 2024.10.04
04:54:49 -07'00' 12.4
Request for Proposal
No. RFP No. PW-0176
FOR
800 WEST CLIFF DRIVE ROAD REALIGNMENT DESIGN
Contact: Miguel Lizarraga, Associate Engineer
Email: [email protected]
RESPONSE DEADLINE: November 20, 2024
RESPONSES MUST BE SUBMITTED ELECTRONICALLY TO:
https://procurement.opengov.com/portal/santacruzca

12.5 City of Santa Cruz
800 WEST CLIFF DRIVE ROAD REALIGNMENT DESIGN
I. INTRODUCTION ......................................................................................

II. GENERAL INFORMATION FOR PROPOSERS ............................................

III. PROCESS INSTRUCTIONS ........................................................................

IV. EVALUATION CRITERIA ...........................................................................

V. TERMS AND CONDITIONS.......................................................................

VI. PRELIMINARY SCOPE OF WORK .............................................................

VII. PROPOSAL SUBMITTALS.........................................................................

Attachments:

A – Sample Agreement
B – Concept Plans
C – Anticipated Sheets
D – RFP
E – Site Photos

12.6 #RFP No. PW-176
Title: 800 West Cliff Road Realignment Design

Page 3 ends

1. INTRODUCTION

1.1. Summary
West Cliff Drive is a scenic coastal road along the west side of the City of Santa Cruz that serves as a popular route for visitors and locals alike for recreation and access to key community destinations such as the Santa Cruz Wharf, Santa Cruz Surfing Museum, and Natural Bridges State Beach.

In recent years, the City of Santa Cruz has been impacted by several large winter storms and high wave events that have threatened the integrity of our coastline infrastructure along West Cliff Drive. The 800 West Cliff Drive Road Realignment Design project aims to reroute a section of West Cliff Drive inland near a vulnerable portion of the coastline that was damaged in the December 2023 and January 2024 storm events. The new road alignment would be located on property that is currently part of Lighthouse Field State Beach Park. The added road set back would provide a buffer for the road to account for the anticipated natural erosion of the area based on 50 and 100 year erosion models.

Through the local, State and Federal disaster declarations, the City can access emergency repair funding from the Federal Highway Administration (FHWA).

The City has been in contact with CA State Parks to explore the feasibility of a procuring the required rightof-way for the road realignment.

The City of Santa Cruz has initiated community and agency engagement and presented concept plans to the Santa Cruz City Council on September 10, 2024, community discussion meetings, and Coastal Commission staff.

In general, the purpose of this RFP is to select a qualified professional engineering-led consultant team to support the City with services that include but are not limited to: survey, geotechnical, land procurement/easement assistance, environmental clearance, permitting, providing design and specifications for all civil and traffic modifications/improvements, restoration and design support during construction, and public outreach support Depending on budget constraints, the consultant may be also asked to assist with construction management and project closeout.

1.2. Background
The City of Santa Cruz was incorporated in 1866 and formed its current charter in 1948. It is governed under a Council/Manager form of government. A Mayor and six Council members set policy for the City and a City Manager serves as chief administrator of those policies. The City is located on the coast, 75 miles south of San Francisco on the northern edge of the Monterey Bay. It encompasses 15.8 square miles with cultural and ethnic diversity among its population of 65,000. Santa Cruz is part of the National Marine Sanctuary and is a popular tourist destination owing to its beaches, surf culture, and historical landmarks.

The City provides a full range of municipal services and facilities including a recreational wharf, public golf course, over thirteen hundred acres of open space, full beach services, refuse management, law enforcement, fire protection, and water and wastewater utilities. The City is also host to University of California Santa Cruz, the Santa Cruz Harbor, and the Santa Cruz Beach Boardwalk amusement park.

12.7 #RFP No. PW-176
Title: 800 West Cliff Road Realignment Design

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The City has secured funding from the Federal Highway Administration (FHWA) to fund a portion of this design project.

1.3. Contact Information
Miguel Lizarraga
Associate Engineer
Email: [email protected]
Phone: (831) 420-5176
Alternative contact:

Tim Wong
Assistant Engineer II
Email: [email protected]
Phone: (831) 420-5179
Department:

Public Works
Department Head:

Nathan Nguyen
Public Works Director

1.4. Timeline
The City will make every effort to adhere to the following tentative schedule. All dates set forth in this RFP are subject to change at the City’s sole discretion. Any change will be set forth in an addendum. All references in this RFP to “time” are Pacific Standard Time.

Release Project Date October 23, 2024
RFP Questions and Clarification Due Date November 13, 2024 at 2:00 PM Proposal Submission Deadline November 20, 2024 at 2:00 PM

12.8 #RFP No. PW-176
Title: 800 West Cliff Road Realignment Design

Page 5 ends

2. GENERAL INFORMATION FOR PROPOSERS

2.1. Summary Scope of Work
All applicants must provide thorough and comprehensive responses that clearly demonstrate their team’s approach to and consistency with the below-mentioned standards.

The City invites qualified firms to respond to this Request for Proposal (RFP) for the project (“Project”) titled below:
800 West Cliff Drive Road Realignment Design
RFP No. RFP No. PW-0179
The Proposer will provide the services outlined in Section PRELIMINARY SCOPE OF WORK.

The successful Proposer shall furnish all tools, equipment, materials, tax, apparatus, facilities, labor, transportation, supervision, and management, not specifically provided by the City, to complete the work described in this RFP. The successful Proposer will provide a brief statement of services, as detailed further in Section PRELIMINARY SCOPE OF WORK.

2.2. Contact
If you have any questions concerning this solicitation, please ask questions utilizing City’s e-Procurement Question & Answer feature. his RFP document may be downloaded from the City’s e-Procurement Portal at https://procurement.opengov.com/portal/santacruzca/projects/98069. For technical assistance, contact OpenGov using the real-time chat feature on the Portal (located in the lower righthand corner of the screen), or via email at [email protected] for support. All questions must be received by 2:00 PM on November 13, 2024

2.3. Proposal Submittal Due Date
Proposals are due no later than 2:00 PM PM on November 20, 2024 to guarantee review. Proposals received after the deadline will be deemed non-responsive. All proposals will be submitted via City’s eProcurement Portal at: https://procurement.opengov.com/portal/santacruzca/projects/98069.

Proposers take full responsibility for City’s receipt of its Proposal. The City will not be liable for any expenses incurred by Proposers in responding to this solicitation, including but not limited to any costs associated with interviews.

It is the responsibility of the Proposer to ensure that electronic submittals are received by the City prior to the deadline.

2.4. Pre-Proposal Meeting
A non-mandatory site meeting is encouraged if requested by appointment

12.9 #RFP No. PW-176
Title: 800 West Cliff Road Realignment Design

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2.5. Responsiveness and Responsibility
When determining the Responsiveness of the proposal, the City may consider any of the following but not limited to:

A. Proposal received on time and completed per instructions.

B. Proposal contains required contents, forms and signatures submitted in accordance with RFP instructions.

C. Proposal is compliant with specifications and industry standards.

When determining the Responsibility of the Proposer, the City may consider any of the following but not limited to:

A. Possession of industry standard licensing and/or certifications.

B. Financial capacity of the Proposer.

C. Experience or past performance of the Proposer.

D. Use of Subcontractors / Subconsultants.

E. Past, Present and Pending Legal Actions.

F. Exceptions with City’s Terms and Conditions.

G. Anticipated adherence with Project delivery schedule.

H. Ability to respond to City’s inquiries for proposal clarification.

Proposers have the right to take exception to the specifications or terms and conditions of this RFP, however, such exceptions may deem the proposal non-responsible. Any exceptions taken must be explained in the proposal and submitted by the submittal due date. Any exceptions that contradict the City’s terms and conditions or contain provisions that are not in the best interest of the City will disqualify the Proposer. If exceptions are not explained, the Proposer will comply with the specifications as stated in this RFP. Exceptions submitted after the proposal due date will not be accepted.

The City reserves the right to reject any or all proposals and to waive any informality or minor defect in proposals received.

2.6. Definitions
In this RFP document:

A. “Proposer” means contractor, firm, supplier, vendor, or consultant submitting a proposal to this RFP.

B. “Proposal” means the complete submittal of Proposer to the City in response to this RFP, including any written documentation and oral interview responses.

C. “Subcontractor” means those performing any portion of the services as subcontractors, vendors, suppliers, and other business entities and individuals that is not the Proposer.

12.10 #RFP No. PW-176
Title: 800 West Cliff Road Realignment Design

Page 7 ends

D. “Key Staff”, if required, means the employees of the Contractor or subcontractor(s) that will provide project leadership or expertise in lead technical services and are considered essential to the success of the Project.

E. “Contract” also means Purchase Order or Agreement.

12.11 #RFP No. PW-176
Title: 800 West Cliff Road Realignment Design

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3. PROCESS INSTRUCTIONS

3.1. Questions and Requests for Clarification and Addenda Questions or concerns regarding any aspect of this RFP shall be sent via City’s e-Procurement Portal’s Question & Answer feature and received by the date identified by the Timeline in the INTRODUCTION Section. Any questions or objections not submitted within the time and manner stated above or to anyone other than the above-stated contact will be deemed waived. The City is not bound by the oral representation of any City employee or official. Answers to questions received will be sent out in the City's procurement portal.

The City may determine it is necessary to revise any part of this RFP. Revisions will be made by written addenda and it is the Proposer’s sole responsibility to comply with any addenda to this RFP. Addenda will be posted on the City’s e-Procurement Portal,
https://procurement.opengov.com/portal/santacruzca/projects/98069, under Bidding Information.

3.2. Proposal Evaluation Criteria
RFP responses will be evaluated and ranked according to the evaluation criteria identified in the subsections Responsiveness and Responsibility in GENERAL INFORMATION FOR PROPOSERS section, below, by an evaluation committee composed of City staff. The evaluation committee will open and review the proposals in confidence. Proposals will be available to the public after the contract award.

After the initial proposal evaluation, the City may determine that additional information is needed to establish the final ranking of proposers. The semi-finalists will be contacted and may be asked to:
 Conduct a scenario-based demonstration of the equipment or service,  Revise the submitted proposal for the purpose of obtaining best and final offers, and/or  Provide additional information to assist City in determining the best value proposer.

The Evaluation Committee will use all information collected to rank the semi-finalists in order of their ability to best meet the requirements of the City. The City will begin negotiating a firm contract with the highest ranked Proposer. If no agreement can be reached, negotiations will begin with the next ranked Proposer.

3.3. Responsiveness
Does the proposal meet the minimum requirements in Sub-Section Responsive and Responsibility of Section GENERAL INFORMATION FOR PROPOSERS to be responsive (the submittal includes all of the required documentation).

3.4. Responsibility
Does the proposal meet the minimum requirements in Sub-Section Responsive and Responsibility of Section GENERAL INFORMATION FOR PROPOSERS to be responsive (the submittal includes all of the required documentation).

The total maximum score for the evaluation of proposals is 100 percent (100%). Proposals will be evaluated by the EC using the Proposal Evaluation Criteria as set forth in Section EVALUATION CRITERIA.

12.12 #RFP No. PW-176
Title: 800 West Cliff Road Realignment Design

Page 9 ends

Proposals that are deemed responsive, from a Proposer that has been deemed responsible, will be evaluated based on the Evaluation Criteria below. Evaluation and scoring of proposals will be based on how likely the proposal content meets or exceeds the performance requirements of this RFP.

3.5. Negotiations
Upon the City’s final ranking of proposals, the Proposers shall be prepared to enter negotiations to enter into the Contract. The City will first begin negotiations with the top-ranked Proposer(s). If the City and the top-ranked Proposer(s) do not reach an agreement, then the City may negotiate with the next highest-ranked Proposer. This process will continue until the City reaches an agreement with a Proposer(s) or terminates the procurement. The City may begin negotiating with the next highestranked Proposer whenever the City determines that doing so is in its best interest, and the City may negotiate with more than one Proposer at the same time.

The failure of the highest-ranked Proposer to comply with any of the requirements of this section shall constitute grounds for the City to negotiate the agreement with the next top-ranked Proposer. Upon completion of successful negotiations, the City will issue a written Notice of Intent to Award (NOITA) letter to all Proposers which lists the “Successful Proposer” that the City recommends for award of an agreement.

3.6. Public Record
Proposals received are the property of the City. All proposals, evaluation documents, and any subsequent contracts will be subject to public disclosure per the “California Public Records Act,” (CPRA) California Government Code, sections 7920.000 – 7931.000. All documents related to this solicitation will become public records once discussions and negotiations with proposers have been fully completed and a Notice of Intent to Award (NOITA) letter to all Proposers is issued.

If Proposer’s proprietary information is contained in documents or information submitted to City, and Proposer claims that such information falls within one or more CPRA exemptions, Proposer must clearly mark such information “Confidential and Proprietary,” and identify the specific lines containing the information. In the event of a public request for such information, City will make best efforts to provide notice to Proposer prior to such disclosure. If Proposer 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 Proposer 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 to Proposer. Proposer 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 Proposer.

3.7. Award Protests
The City desires to foster cooperative relationships with Proposers and to reach a fair agreement in a timely manner.

The City encourages Proposers to resolve issues regarding the RFP requirements or the procurement process through written correspondence and discussions at least 5 business days prior to the proposal

12.13 #RFP No. PW-176
Title: 800 West Cliff Road Realignment Design

Page 10 ends

due date. This will allow the City time to research the validity of any stated issues and either issue an addendum to the RFP, cancel the RFP, or determine the protest to be unfounded and proceed with the solicitation. In the event, the protest of specifications is denied, and the protester wishes to continue in the protest process, the protesting Proposers must still submit a proposal in accordance with the proposal submittal procedures provided in this solicitation. Questions or concerns prior to the intent to award notice will be directed to:

Miguel Lizarraga, Associate Engineer, [email protected] Any Proposer who unsuccessfully bids on a City contract or any trade association representing workers who would have potentially been employed by such contract may formally protest a contract award.

Protest letters regarding a formal contract award will be directed to:

City of Santa Cruz
City Clerk Administrator
809 Center Street, Room 9
Santa Cruz, California 95060
Protests will be filed with the City Clerk’s office no later than 5 business days after the written Notice of Intent to Award is sent by the City. Protest letters will include:
 The name, address, and telephone number of the protester;  The Project title, RFP Number, and RFP due date;
 Name of City employee and Department designated as the contact in the original RFP;  A detailed statement of the legal and/or factual grounds for the protest; and  The form of relief requested.

The City Council will hear the protest prior to award of the contract. The protesting party may protest the City’s or successful Proposer’s failure to comply with the requirements of the Purchasing Ordinance or the solicitation documents. The protest must clearly set forth the basis for the protest; grounds not set forth in the written protest will not be considered by the City Council at the protest hearing. The City Council will sustain a protest if the protesting party demonstrates by clear and convincing evidence that, as specified above, the City would act improperly in awarding the contract. The decision of the City Council is final.

3.8. Debriefing
A debriefing may be held after the contract award with the City and a Proposer for the Proposer to receive information about the evaluation of their proposal. A Proposer shall submit a written request to the City for a debriefing shall within thirty (30) days after the issuance of the NOITA. The debrief conference will be allotted a maximum of thirty (30) minutes and will consist only of evaluating the requesting Proposer’s Proposal.

3.9. Contract Implementation
Upon award notification and prior to final contract approval, the successful proposer will be required to submit:

12.14 #RFP No. PW-176
Title: 800 West Cliff Road Realignment Design

Page 11 ends

 Proof of insurance and prevailing wage compliance documentation as specified in Sub-Section Insurance Requirements and Sub-Section Prevailing Wage in Section Terms and Conditions of this RFP;
 Documentation of all credentials necessary to legally perform the Project specified;  A completed W9 form and, if applicable, non-resident withholding exemption form, if not already on file with the City; and
 Proof of a current City of Santa Cruz business tax certificate if the proposer is located in, or performs services within, the city limits for more than 6 days annually.  The finalized contract will be in the form included as Appendix A Sample Agreement herein, and include the RFP documents, the Proposer’s response to RFP and Vendor Questionnaire, the Budget as described in Cost Proposal, and any negotiated modifications agreed to by the parties.

3.10. Reservation of Rights
The City, at its sole discretion, reserves the following rights:
 To reject any or all proposals or information received pursuant to this RFP;  To waive any informality or minor defects in proposals received;  To supplement, amend, substitute, or otherwise modify this RFP at any time by means of written addendum;
 To cancel this RFP with or without the substitution of another RFP or prequalification process;  To cancel the scope of services awarded through this RFP process with or without the substitution of another RFP or prequalification process;  To request additional information from a Proposer;
 To bid separately any item or items where it is determined by the Purchasing Manager that:
o A substantial savings in cost will result due to a large quantity purchase, or o The commodity is not appropriately classified under this specification contract. o To verify the qualifications and experience of each Proposer;  To require one or more Proposers to supplement, clarify, or provide additional information in order for the City to evaluate proposals submitted.

3.11. Financial Responsibility
The City accepts no financial responsibility for any costs incurred by a Proposer in responding to this RFP. Proposers acknowledge and agree that their Proposals will become the property of the City and may be used by the City in any way deemed appropriate.

12.15 #RFP No. PW-176
Title: 800 West Cliff Road Realignment Design

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4. EVALUATION CRITERIA
No. Evaluation Criteria Scoring Method Weight (Points)

1. Consultant’s Qualifications
Proposals will be evaluated for the
Consultant’s qualifications, experience and
references. The criteria will also include an
evaluation of the Consultant’s longevity,
projected financial stability, and performance
on similar contracts.

Points Based 30
(30% of Total)

2. Contract Execution Plan
Proposals will be evaluated for the
Consultant’s ability to provide the 800 West
Cliff Road Realignment Design project as set
forth in this Request for Proposals.

Points Based 20
(20% of Total)

3. Team Qualifications, Expertise, and
Experience
Proposals will be evaluated for the makeup of
the Consultant’s Project Team and their
training, experience, certifications and
accreditations.

1. Provide the names, qualifications,
certifications, and relevant technical
experience of personnel and
subcontractors of the proposed
project team who will perform the
services described in this
RFP. Include details about their
experience with similar projects with
comparable magnitude. Include their
role on this project.

2. Provide resumes for each member of
the proposed project team and
include the qualifications and
experience suited to the proposed
assignment. Include resumes as a
separate attachment.

If awarded the contract, Proposer shall make
every effort to ensure that the staff resources
identified in the proposal will be available for
the Project. If staff identified in the proposal
are not available, the City reserves the right to
review and approve alternate personnel
Points Based 20
(20% of Total)

12.16 #RFP No. PW-176
Title: 800 West Cliff Road Realignment Design

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4. Technical Approach and Work Plan
Proposals will be evaluated for its
professionalism and thoroughness. Consultants
should answer all questions in the order
presented.

Proposal Format
Proposals should be organized as follows:
 Written Technical Proposal
answering all questions in 6.6
Questionnaire in the section

PRELIMINARY SCOPE OF WORK
 Cost Proposal as detailed in 6.7 Fee
Schedule in the section PRELIMINARY

SCOPE OF WORK
 Optional Appendices or Exhibits:

Proposers may include sample
project information, sample reports,
peer review reports, letters of
recommendation, or other exhibits
that may assist the City in favorably
evaluating the proposal. Do not
include generic marketing materials.

Proposals will be deemed non-responsive
and removed from further consideration if
the Proposal is not received in accordance
with the terms of this RFP or the Proposer
does not meet the basic minimum
qualifications and proposal requirements
set forth in this RFP.

Proposals shall be typed, as concise as
possible, and shall not include any
unnecessary promotional material. The
Proposer shall provide the information
required in this Evaluation Criteria section
and comply with the maximum page
limitations provided for each subsection
of the proposal. The RFP Required
Submittal Documents do not count
toward applicable section page limits.

Resumes shall be included as a separate
attachment. Number every page
sequentially beginning with the cover
page, including any text charts and
graphic pages and including attachments
and exhibits.

Narrative pages are to be 8½x11 inches.
11x17 pages, if used, shall be used
Points Based 30
(30% of Total)

12.17 #RFP No. PW-176
Title: 800 West Cliff Road Realignment Design

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sparingly and only where required to
convey related information that cannot
otherwise be accommodated on an 8½x11
page. 11x17 will count as two pages.

The proposal shall use Arial or a similar,
easily readable font. A minimum of 11-
point font size and 1.25-line spacing is
required for text. Narrow or condensed
fonts are not permitted. Font restrictions
do not apply to attachments. Different
size fonts will be allowed for headings,
charts, tables, and graphics and must be
easily readable.

12.18 #RFP No. PW-176
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5. TERMS AND CONDITIONS

5.1. Insurance Requirements
Proposer will provide Certificate of Insurance(s) for Professional Liability, Commercial General Liability, Auto Liability, and Workers’ Compensation as stated in the City’s standard Terms and Conditions. The City reserves the right to adjust the insurance terms provided based on the type and scope of project proposed by the Proposer.

5.2. Prevailing Wages and Labor Compliance
Prevailing wages do not apply to this contract.

5.3. Living Wage
Proposers agree to comply with the requirements of the Living Wage Ordinance as provided in Santa Cruz Municipal Code Chapter 5.10.

5.4. Agreement (Appendix A)
The successful Proposer will be required to enter into an Agreement in the form of the Agreement attached hereto as Appendix A. The City reserves the right to adjust the terms, including insurance terms provided, based on the type and scope of the project proposed by the Proposer. If a Proposer is unable to accept City’s proposed Agreement terms substantially in the form presented, the Proposer shall include a revised copy of the Agreement with its Proposal. The revised copy must clearly mark any section to which it objects, set forth the Proposer’s proposed alternative terms, and explain the basis for each proposed change. The City reserves all rights to reject any revisions to the Agreement.

If a satisfactory contract cannot be negotiated in a reasonable time, the City in its sole discretion may terminate negotiations.

5.5. Contract Period
The term of the contract will commence upon notification of award and continue for a period of __0__ year(s) plus any renewals agreed to by the parties and made in writing.

5.6. Equal Employment Opportunity and Non-Discrimination 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 and veteran status, or any other consideration made unlawful by local, State or Federal law. City requires Consultant to be in compliance with all applicable Federal and State and local equal employment opportunity acts, 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

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http://www.cityofsantacruz.com/home/showdocument?id=59192. Copies are available upon request from the City’s Purchasing Division.

5.7. Indemnification
To the fullest extent permitted by law, Proposer agrees 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 Proposer, Proposer’s officers, employees, agents, or subcontractors in any way related to this RFP, including but not limited to Proposer’s Proposal. Proposer’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, as determined by an adjudicatory body or court of competent jurisdiction, if applicable. The 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 Proposer, Proposer’s officers, employees, agents, or subcontractors, Proposer’s costs to defend Indemnitees shall not exceed the Proposer’s proportionate percentage of fault per Civil Code §2782.8. This section shall survive the termination or expiration of the Agreement.

5.8. Performance Bond/Payment Bond
Bonding requirements for federally funded contracts are subject to the following federal directives:

Bidder’s security of ten percent of the bid price for all public works contracts at the time of Bid submittal (Public Contract Code Section 20483(a)).

A. Performance bond equal to 100-percent of the contract price for all public works contracts.

B. Payment bond for all public works contracts of at least:

C. 50-percent of the contract price if the contract price does not exceed $1 million.

1. 40 percent of the contract price if the contract price exceeds $1 million but is not more than $5 million; or

2. $2.5 million if the contract price exceeds $5 million.

Within ten (10) business days, not including legal holidays, of contract award, the successful Proposer must submit a performance bond and payment bond, executed by the Contractor and the Surety. All bonds must be issued by California admitted Sureties.

Should any surety or sureties be deemed unsatisfactory by the City, a notice will be given to the Contractor. The Contractor shall promptly substitute a new surety or sureties satisfactory to the City. No further payment shall be deemed due or will be made under the contract until the new sureties are accepted by the City.

At its sole discretion, the City may allow the Contractor to provide bonds from multiple sureties to meet the bond requirements.

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6. PRELIMINARY SCOPE OF WORK

6.1. Project Objectives
The project objective is to complete a biddable set of plans of the 800 West Cliff Road Realignment Design and complete the purchase of Lighthouse Field State Beach from California State Parks. The City of Santa Cruz aims to reroute a section of road and pedestrian path inland in order to provide a buffer for the road to account for the anticipated natural erosion of the area based on 50- and 100-year models. The City anticipates the design to the replacement of all existing storm drain outlets in the project area. The City also anticipates the Consultant to manage the procurement of the right-of-way required from Lighthouse Field State Beach park. California State Parks is aware and on-board for this land acquisition.

The initial concepts include, but are not limited to, the proposed physical modifications and road layout shown in Attachment B–Preliminary Concept Design Exhibit.

6.2. Minimum Qualifications
A firm’s Proposal must demonstrate that the firm submitting the proposal (“Proposer”) meets the following Minimum Qualifications to be eligible for consideration for this project.  Proposer must have successfully performed design support services on at least three (3) similar projects in the past ten (10) years in which it provided design support on similar type projects.  Other desired qualifications upon which firms will be evaluated include:
o Experience managing and delivering design support services on projects with federal and state involvement during the Construction phase of the project. o Experience managing projects with requirements for public outreach during pre-design, design, and construction.
o Experience preparing plans, specifications and estimates for all proposed civil, drainage, and traffic.
o Experience managing and delivering design support services on projects that require coordination for Right-of-Way certification, including experience with preparing and reviewing property appraisals, negotiations for property acquisitions, preparation of required right-of-way certification and related exhibits, and recording of right-of-way.  All documents shall be prepared by a licensed professional Civil Engineer. The professional seal shall appear on the final documents. The engineer whose seal is shown will be known as the Engineer of Record.
 If exceptions are not requested, the Consultant will comply with the specifications as stated in this solicitation.

6.3. Scope of Work
Consultant shall provide all services needed to conduct utility investigation and coordination for any utilities that may need to be relocated or new services to be provided, communication and coordination

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with all stakeholders including, but not limited to residents, property owners, utilities, Coastal Commission, Army Corps of Engineers, California State Parks, the City, and Caltrans, support in conducting investigations and preparing environmental clearance documents, support in conducting investigations and preparing right-of-way clearance, conducting investigations, survey as required to prepare Plans, Specifications & Estimates (PS&E) for 10% concept, 30%, 60%, 90%, and 100% / IFB sets, and design support during contract advertisement, award, construction and closeout.

Consultant shall provide all services and deliverables in accordance with State laws, regulations, standards, and applicable Federal Highway Administration (FHWA) requirements, Local Assistance and Grants program requirements, and City of Santa Cruz regulations, standards, and policies. These include, but are not limited to, the guidance provided in the:
 Caltrans Local Assistance Procedures Manual (LAPM),
 Caltrans Local Assistance Program Guideline (LAPG),
 Caltrans Standard Environmental Reference (SER),
 California Environmental Quality Act (CEQA) Statute and Guidelines,  Caltrans Highway Design Manual (HDM),
 Caltrans Right-of-Way (ROW) Manual,
 Caltrans Standard Plans and Specifications,
 American Association of State Highway and Transportation Officials (AASHTO) bicycle standards,  City of Santa Cruz Standard Details
 National Association of City Transportation Officials (NACTO) guidelines  Caltrans Design Information Bulletins, including DIB 94 The required design services will include, but not be limited to, the following: surveys, geotechnical engineering, utility coordination, environmental clearance requirements, preparation of permit applications, obtaining any required permits, right-of-way investigation, verification, and clearance requirements, roadway, utilities, signing, striping, landscaping, and such other incidental features required to complete the PS&E sets and final bid documents for the project inclusive of the tasks listed below.

Consultant shall identify and explain the necessity for any additional tasks required to successfully deliver the final design and bid documents and shall identify each of the significant subtasks required.

Consultant is strongly encouraged to propose and include innovative and other approaches and tasks that will benefit the project.

The Consultant will be furnished with all existing known technical information, reports, documents, etc. that have been utilized to develop the initial conceptual exhibit of the proposed physical improvements for this project.

The Consultant selected will be required to complete all the following tasks and sub-tasks:

Task 1 – Project Management
The Consultant will perform project management and administration tasks required to provide supervision of the work and coordination with the City. Project Management will continue until project completion and contract closeout. Project Management task will include:

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 Prepare agenda and attend a project kick-off meeting with the City to review the scope of work, the initial tasks to be performed, the project schedule, the critical task items, areas of concern, and participate in a general exchange of views and ideas regarding the execution of the project.  The Consultant shall prepare and distribute all meeting notices, agendas, and meeting minutes in consultation with the City Project Manager and other staff as requested.  The Consultant shall prepare a project schedule clearly identifying each task, sub-task, and deliverables within each task, when each activity will begin, how long it will continue, and identify critical tasks, milestones, and deliverables.
 The Consultant shall prepare a monthly progress report on performance including status of costs, schedule update and status of all deliverables. The report shall be updated monthly and submitted along with monthly progress invoices from Consultant.  The Consultant shall anticipate attending monthly Coordination/Status meetings to review the project with the City and stakeholders.
 The Consultant shall prepare and submit for changes in scope, or amendments to the agreement when appropriate, prior to performing the work. No additional payments shall be made to the Consultant for any work that is out of the original scope contained in the agreement without prior written approval from the Director or City Project Manager.  The Consultant shall establish a quality control plan and perform internal quality control reviews of all deliverables and critical work products developed by the Consultant prior to delivery to the City.
 The Consultant shall administer and supervise the work of all sub-Consultants contracted to perform the work.
 Consultant shall supervise, coordinate, and monitor product development for conformance with Caltrans, FHWA, and City applicable standards and policies.  The Consultant shall maintain project files electronically that will be handed over to the City Project Manager at the conclusion of each phase of the project (PE and CON phases).

Deliverables (include but not limited to):
• Project Kick-Off Meeting Agenda/Minutes
• Project Design Schedule
• List of Critical Tasks and Items of Concern
• Project Update Meeting Agenda/Minutes
• Monthly Progress Reports/Invoices
• Information for use in Updating City of Santa Cruz Website • Design Quality Control Plan
• Delivery of Project Files at Conclusion of PE and CON phases Task 2: Site Investigation and Evaluation
The consultant will conduct a survey and preliminary site investigation and evaluation of the project area. The extent of the survey will be determined by the extent necessary to complete the design of the project. Existing conditions including utilities, roadway condition, sidewalk and driveway access, and topography will be reviewed and documented.

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Deliverables:

Full survey map to include but not limited to the following  Basemap of:
o Existing curblines, curb ramps, pathway
o Utility locations
o Pavement markings
o Elevation points
 Detailed topography of existing surface where the new road realignment will be  Field review, verification, and location of existing utilities, storm drain infrastructure, parking infrastructure, signs, restricted curbs, and trees.
 Right-of-way parcel lines and aerial photos taken from City GIS maps Task 3 Preliminary Analysis and Concept Design – 10% Concept Level Based on the information obtained in previous tasks and provided by the City, preliminary development/concept plans for road layout, path layout, pedestrian crossings, and structures to be removed will be developed and submitted to the city for review at 10% Concept Design level.

A preliminary traffic control plan addressing traffic impacts and detours during the construction of this project shall be drafted during this phase. Consultant shall consider and develop one or more possible traffic flow alternatives for City review.

At this preliminary phase, the City anticipates that the Consultant will have listed all permits necessary for the construction of this project and all agencies that need to be contacted. Permits anticipated to be obtained include but are not limited to the Coastal Development Permit from the Coastal Commission, and the Section 404 Permit (Clean Water Act) from Army Corps. Agencies to be contacted include but are not limited to the agencies listed previously to obtain permits from and California State Parks.

Deliverables:
 10% Engineering/Concept Plan
 Preliminary Traffic Control Plan
 List of permits to obtained and agencies to be contacted  Present Concept Plan at up to four (4) public hearings, such as Transportation and Public Works Commission or City Council
Task 4 30% Plans
Based on the information obtained in previous tasks and from comments from the City, preliminary development/concept plans for road layout, path layout, pedestrian crossings, and structures to be removed will be developed and submitted to the city for review at 30% Plan level.

Based on feedback and comments at the 10% phase, Consultant shall develop a final traffic control plan for the construction phase of this project.

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Plans will be submitted electronically (PDF) to City staff sized 22x34format. Anticipated sheets are included in Attachment C.

A preliminary cost estimate will be developed and submitted with the plans.

A comment review/resolution meeting will be held following receipt of City comments.

Deliverables:
 30% Engineering/Concept Plan
 Final Traffic Control Plan
 Preliminary Cost Estimate
 Comment Resolution from City and stakeholders with comment responses Task 5 Environmental Clearance and Permits
After the 30% concept has been approved by the City, the Consultant shall prepare all required environmental studies required for environmental clearance in accordance with Caltrans Local Assistance procedures and obtain all necessary permits
 Assist in completing the CEQA form/application for the project. The City anticipates a CEQA Categorical Exemption for this project. The City will sign and file the completed form.  Obtain all necessary permits to construct the project including but not limited to the Coastal Development Permit from the Coastal Commission, and the Section 404 Permit (Clean Water Act) from Army Corps
 City will pay for all permitting and filing fees (these unknown costs do not need to be included in Consultant cost proposal)
Deliverables (include but not limited to):
 CEQA forms
 All applicable permits
Task 6: Right-of-Way Clearances
The Lighthouse Field State Beach Park is slated to be purchased by the City of Santa Cruz from California State Parks. California State Parks is aware of the right-of-way required for this project and is willing to work with the City and its Consultant to facilitate a potential transaction. The Consultant will manage and oversee this process and coordinate with California State Parks. The City will sign off on any necessary paperwork and forms.

If necessary, the Consultant will need to obtain temporary construction easement(s) with the City for right-of-way clearances for construction and staging areas. This will be done with the City and with the City Attorney’s office: ATCHISON, BARISONE & CONDOTTI, APC.

Support will include site meetings with property owners and field marking of right-of-way limits.

Deliverables:

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 All necessary Temporary Construction Easements
 Completion of right-of-way procurement from Lighthouse Field State Beach Park Task 7 60% PS&E
The 60% PS&E will be revised to incorporate comments received from the City and the public meeting(s).

At this phase, the City will provide the “Front End” documents and Special Provisions. The Technical Specifications will be prepared in MS Word format by the Consultant and will follow the City’s formatting conventions. The Technical Specifications and details will reference the City’s standard provisions and Caltrans 2023 Standard Plans and Specifications (including subsequent revisions and updates). The Consultant will recommend deviations from Caltrans standards where, from experience, such changes will improve the likelihood of achieving a successful construction project without compromising the integrity of the design.

The Engineer’s Cost Estimate is to be updated and refined as the design effort progresses. The City will require a 20-day review/comment period once the 60% PS&E package is submitted.

Anticipated sheets are included in Attachment C.

Plans will be submitted electronically (PDF) to City staff sized 22x34 format.

A refined engineer’s cost estimate will be developed and submitted with the plans.

A comment review/resolution meeting will be held following receipt of City comments.

Deliverables (include but not limited to):
 One reproducible copy of 60% plans
 Initial draft technical specifications
 Refined engineer’s cost estimate.
 Comment Resolution from City and Stakeholders with consultant comment responses Task 8 90% Detailed Design Bid Package Set
Consultant will develop a detailed Pre-Final 90% design package that will include plans, details, full specifications, and updated cost estimate. The bid package phase will include City and stakeholder comment resolution. The specifications package will include technical specification sections at this milestone.

Anticipated sheets are included in Attachment C.

Plans will be submitted electronically (PDF) to City staff resized 22x34format.

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A refined cost estimate will be developed and submitted with the plans.

A comment review/resolution meeting will be held following receipt of City comments.

Deliverables:
 90% Engineering/Design Plans/Structural Calculations, stamped and signed  90% Technical Specifications
 90% Cost Estimate
 Estimated schedule showing the general activities for construction to support the # of Working Days specified.
 Comment Resolution from City and Stakeholders with consultant comment responses Task 9 100% Draft Construction Documents PS&E
Following 90% review, Consultant will finalize plans and specs based on City comments. The package will be submitted to City for permit approvals. The Plans package will then be revised as necessary based on City comments, and resubmitted to the City for final approval.

All final documents will be reviewed, stamped, and signed by The Consultant’s registered civil engineer, and the Final (Bid Set) PS&E will be delivered to the City in both hard copy and electronic formats. The electronic files for the final bid set of plans, specifications, and engineer’s estimate will be in PDF and in AutoCAD 2018, Microsoft Word, and Microsoft Excel, respectively. Anticipated sheets are included in Attachment C.

Deliverables:
 Final Engineering/Design Plans/Structural Calculations  Final Technical Specifications
 Final Cost Estimate
 Comment Resolution from City and Stakeholders with consultant comment responses Task 10 Bid-Ready Construction Documents
Consultant will prepare Bid-Ready Construction documents to address any comments generated from the City's review of the 100% construction document submittal. Once final revisions are complete, one (1) signed reproducible Bid-Ready set of construction documents and an electronic version of the documents will be submitted to the City.

All final documents will be reviewed, stamped, and signed by The Consultant’s registered civil engineer.

Deliverables:
 One (1) signed reproducible Bid-Ready construction document package (hard copy and electronic file)

OPTIONAL TASKS

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The following are optional additional tasks that may be desired in addition to the basic service tasks described above. Please provide a scope and pricing on a Time and Materials basis for these tasks as an optional part of Consultant proposal.

Task 11 Contractor Procurement Support
Consultant will provide support to City staff during the procurement process. Support to City staff will include attending the pre-bid conference and reviewing/responding to bid Requests for Information (RFIs) which relate to the design, preparation of any addenda and/or clarifications deemed necessary.

The City will provide a procurement support and a Project Manager to administer the bid process.

Deliverables:
 RFI responses to Contractor bid questions

Task 12 Construction Phase Services
Consultant will provide support to the City during the duration of the construction contract with the Contractor. It is assumed the City will provide a Construction Manager to administer the Contract and coordinate with the Contractor. The following tasks are anticipated with consultant effort under this project phase and task:
 Meeting Attendance
o Regular weekly construction progress and coordination meetings in person or on the phone during construction
o Up to two (2) site visits and associated Observation memo o Attend one final punch list site walk with City and Contractor staff o List of civil punch list items for recordation to be prepared and provided to City o Attend one substantial completion site walk with documentation  Review and respond to Contractor questions, including:
o Design submittals
o Requests for Information (RFIs)
o Substitution Requests
o Review Contractor requests for payment when asked by City staff  Preparation of record drawings based on as-built drawings provided by the Contractor including detailed markups on the construction documents. As-Builts will be prepared in Bluebeam (PDF) format
Deliverables:
 RFI responses during construction
 Submittal review and responses during construction
 Review/responses to Contractor requests for payment
 Observation report for site visits
 Close out punch list from site walk with City and Contractor  Sign-off of Certificate of Substantial Completion

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 Record Drawings in Bluebeam (pdf) format

6.4. Responsibilities of the Consultant
 Consultant shall include all labor, materials and services to furnish and implement the 800 West Cliff Road Realignment Design as set forth in the Project Scope of Work

6.5. Responsibilities of City
 The City shall
o Provide all available pertinent background documents as well as any other available information requested
o Review and approve consultant’ work. Provide a single written set of City-generated review comments.

6.6. Quesionaire
Answer all of the following questions in the submitted proposal. Any omission may be cause for rejection of proposal. Answers should be complete, and in the order presented. A simple "yes" or "no" answer is not adequate.

Consultants have the right to take exception to the specifications or terms to this solicitation. Any exceptions taken must be explained in the proposal. Any exceptions that contradict the City’s terms and conditions or contain provisions that are not in the best interest of the City will disqualify the Consultant. If exceptions are not explained, the Consultant will comply with the specifications as stated in this solicitation.

Consultant’s qualifications, experience and references
A. Describe business background and qualifications, including year business was established.

B. Describe your firm’s ability to provide the required services in a timely manner; accessibility of staff, flexibility and readiness to complete specified work

1. The City is planning for a construction start date of September 2025. How will your firm schedule the design, permitting, and procurement process to meet this desired deadline C. Describe internal procedures and/or policies associated with work quality, cost control and scheduling.

D. Describe experience with state and federal projects
E. Describe experience working with other public agencies and transportation design projects.

F. Describe experience planning, designing or implementing road realignment projects.

G. Provide the location of office which will be performing work for City of Santa Cruz.

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H. Provide the names of three clients for whom your business currently provides similar scope of services. Include the name of the business, the name of a contact person, and the phone number.

Consultant’s proposed work plan
A. Without including cost, clearly define the individual staff hours that are needed to complete all tasks defined in this RFP. Identify all critical activities for the project. Include any modifications and/or additions that are deemed necessary.

Project Team
A. Provide background of personnel that will be assigned to provide this service to the City.

Information should include experience, background, academic training and where registered. Include an organizational chart and staffing plan for the proposed team. A summary should also be included defining each team member’s role. Include the individual(s) authorized to negotiate the contract on behalf of the consulting firm. No changes of the core members that comprise the Project Team are allowed, or changes to the key Project staff, as represented in the Respondent’s RFP unless approved by the City.

Respondents may strengthen their Project Team by adding experienced personnel and subconsultant members.

B. If you will subcontract portions of the work, identify Subcontractors who will be working on the Project and describe their role and performance responsibilities. Subcontractors to be used will be listed in the Consultant’s proposal. Subcontracting of work after contract award and without prior approval of the City, may result in contract termination. If at any time, the City determines any Subcontractor is incompetent or undesirable, Consultant will be notified and will be expected to immediately cancel the subcontract.

6.7. Fee Schedule
 Break down Fee Schedule into as many tasks as deemed necessary, to clearly present the anticipated level of effort and costs associated with the various activities and deliverables.

Indicate the hourly rate of the individual (or Subcontractor) as well as the anticipated number of hours per task. Include other direct costs associated with each element and adjustments in rates predicted to occur during the project.
 State any and all assumptions, such as the number of meetings to be attended, or number of submittals to be reviewed.
 Describe under what circumstances that City would be charged for additional work.  Include all costs in your proposal. Consultant will not be allowed to charge for costs not listed in the proposal.
 Vendor shall use the Caltrans Exhibit 10H format to complete the cost proposal

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7. PROPOSAL SUBMITTALS

7.1. Proposal Response*
By confirming, the proposer is affirming to the following:

The proposer, upon acceptance, agrees to furnish the following in accordance with the specifications and terms and conditions per City of Santa Cruz “Request for Proposals for 800 West Cliff Road Realignment Design” at the prices indicated herein.

The proposer, under penalty of perjury, declares not to be a party with any other business to an agreement to propose a fixed or uniform price in connection with this proposal.

The proposer declares under penalty of perjury that she/he is authorized to submit this proposal and bind the business or organization to the terms of this Proposal.

The proposer recognizes the right of the City of Santa Cruz to reject any or all proposals received and to waive any informality or minor defects in proposals received.

The proposer declares under penalty of perjury that the information contained in this Proposal and all accompanying documents are true and correct.
☐ Please confirm
*Response required

7.2. Technical Proposal*
Proposers shall submit their proposal to this procurement website. The Proposal shall address all points in 6.6 Questionnaire in the section PRELIMINARY SCOPE OF WORK

7.3. Cost Proposal*
Proposers must complete and submit a Cost Proposal with their Proposal submittal by the Proposal Submittal Due date. It is the Proposer’s responsibility to state all costs required to provide the services outlined in Section Preliminary Scope of Services. This includes the Optional Tasks section. Costs shall include, but not be limited to, direct labor, overhead, fringe benefits, profit, subcontractor costs, and other direct costs (ODC) such as materials, supplies, taxes, and travel. A Proposer’s failure to submit a Cost Proposal will deem the Proposal non-responsive. Requirements for the Cost Proposal are detailed in 6.7 Fee Schedule in the section PRELIMINARY SCOPE OF WORK. *Response required

7.4. Non-Collusion Declaration*
By confirming, the proposer, the party making the foregoing proposal declares that the proposal is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the proposal is genuine and not collusive or sham; that the Consultant has not directly or indirectly induced or solicited any other Consultant or Sub-Consultant to put in a false or sham proposal; and has not directly or indirectly colluded, conspired, connived, or agreed with any Consultant, Sub-Consultant or anyone else to put in a sham proposal, or that anyone shall refrain from proposing; that the Consultant has not in any manner directly or indirectly, sought by agreement,

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communication, or conference with anyone to fix the proposal price of the Consultant or any other Consultant or Sub-Consultant, or to fix any overhead, profit, or cost element of the proposal price, or of that of any other Consultant or Sub-Consultant, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the proposal are true; and, further, that the Consultant has not, directly or indirectly, submitted his or her proposal price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, proposal depository, or to any member or agent thereof to effectuate a collusive or sham proposal.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
☐ Please confirm
*Response required

7.5. Acknowledgment of Addenda and Question and Answer* In order to submit a proposal, the vendor acknowledges that they have read all addenda, and questions and answers posted for this solicitation.
☐ Please confirm
*Response required

7.6. Insurance documents – W9
Upload your W9 here.

7.7. California Levine Act Statement
California Government Code Section 84308, commonly referred to as the "Levine Act," prohibits any member of the City Council of the City of Santa Cruz from participating in any action related to a contract if they receive any political contributions totaling more than $250 within twelve (12) months before or after the date a final decision concerning the contract has been made, from the person or company awarded the contract. The Levine Act also requires disclosure of such contribution by a party to be awarded a specific contract.

Answering YES to either of the two questions above does not preclude the City of Santa Cruz from awarding a contract to your firm or taking any subsequent action related to the contract. It does, however, preclude the identified City Council Member(s) from participating in any actions related to this contract.

7.7.1. 1. Have you or your company, or any agent on behalf of you or your company, made any political contributions of more than $250 to a member of the City of Santa Cruz city council in the twelve (12) months preceding, the date of the

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submission of your proposals or the anticipated date of any city council action related to this contract? *
☐ Yes
☐ No
*Response required
When equals "Yes"

7.7.2. If yes, please identify the Council Member(s): * *Response required

7.7.3. 2. Do you or your company, or any agency on behalf of you or your company, anticipate or plan to make any political contribution of more than $250 to any member of the City of Santa Cruz City Council in the twelve (12) months following any city council action related to this contract? * ☐ Yes
☐ No
*Response required
When equals "Yes"

7.7.4. If yes, please identify the Council Member(s): * *Response required

12.33 From: Gillian Greensite
To: Fred Keeley; Shebreh Kalantari-Johnson; Sandy Brown; Scott Newsome; Sonja Brunner; Martine Watkins; Renee Golder; City Council
Subject: #12 Consent Agenda
Date: Monday, October 21, 2024 3:04:16 PM
****CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.**** Dear Mayor and Council Members,
For Item 12 on the consent agenda, re 800 West Cliff Drive, In the supporting documents there are the following two entries. I have bolded the two sentences of concern.

Is this accurate? Does the city plan to purchase Lighthouse Field State Beach as stated in the entries? If so, this significant issue has not been brought before the public for discussion, input and council vote. Again, if accurate, at what cost to the city? Such a significant topic should be on a separate council agenda and not buried in what is presented as a realignment project and RFP.

I would appreciate a response.

Thank you,
Gillian

1. Project Objectives The project objective is to complete a biddable set of plans of the 800 West Cliff Road Realignment Design and complete the purchase of Lighthouse Field State Beach from California State Parks.

Task 6: Right-of-Way Clearances The Lighthouse Field State Beach Park is slated to be purchased by the City of Santa Cruz from California State Parks. California State Parks is aware of the right-of-way required for this project and is willing to work with the City and its Consultant to facilitate a potential transaction. The Consultant will manage and oversee this process and coordinate with California State Parks. The City will sign off on any necessary paperwork and forms.

12.34 City Council

AGENDA REPORT
DATE: 10/03/2024
AGENDA OF: 10/22/2024
DEPARTMENT: Public Works
SUBJECT: Highway Safety Improvement Program (HSIP) Cycle 12 - Grant Applications (PW)
RECOMMENDATION: Motion to apply for, accept, and appropriate funds from the California Department of Transportation Highway Safety Improvement Program (HSIP) Cycle 12 for three projects: Nonsignalized Intersection Improvement Project, Water Street Protected Bike Lanes, and Citywide Intersection Daylighting.

BACKGROUND: The Highway Safety Improvement Program (HSIP) is a core federal-aid program to states for the purpose of achieving a significant reduction in fatalities and serious injuries on all public roads. California's Local HSIP focuses on infrastructure projects with nationally recognized crash reduction factors (CRFs). The HSIP program includes two categories: a Benefit/Cost (B/C) approach that utilizes collision history and data driven countermeasure solutions, and a set-aside that focuses on core areas that the state is seeking to improve, including pedestrian safety, bicycle safety, and rural road safety. For the B/C category, HSIP projects must be identified on the basis of crash experience, crash potential, crash rate, or other data-supported means. Benefit/Cost (B/C) analysis is the key factor for funding through HSIP. Applications submitted must have a minimum B/C ratio of 3.5 to be considered in the selection process. This cycle, the HSIP set aside component adds a new set-aside for bicycle enhancements to address a focus area of the Safe Systems Approach and Strategic Highway Safety Plan.

The HSIP program requires that a submitting jurisdiction have an approved Local Roadway Safety Plan (LRSP) or equivalent document. The City of Santa Cruz (City) has an approved LRSP, which is the guiding document for the proposed projects in this cycle.

DISCUSSION: For HSIP Cycle 12, the City plans to submit for the following projects:

1. Nonsignalized Intersection Improvement Project (Set-aside): The selection of the Unsignalized Crossing Improvement Project is based upon collision history, the LRSP, and community feedback. These locations are supported by Emphasis Areas 1, 2, and 3 in the LRSP Emphasis Areas attachment. The intersections of Murray at Mott and Soquel at Poplar were selected for inclusion in this grant. At Murray/Mott, the proposed improvements include bulbouts, crosswalk improvements, and rectangular rapid flashing beacons (RRFB). At Soquel/Poplar, proposed improvements include RRFB, daylighting the intersection, and improving ADA accessibility. Total Project Cost: $387,900. Grant Request: $349,110

13.1 2. Water Street Protected Bike Lanes (Set-aside): This project is supported by the Local Roadway Safety Plan, which identified three emphasis areas for strategic focus. Emphasis Area 3 is to “Improve Traffic Safety for Vulnerable Roadway Users Including the Unhoused Population” with the stated goal to “reduce the number of fatal and serious injury collisions involving pedestrians and bicyclists, with an additional focus area on unhoused populations.” The LRSP identified specific strategies to achieve this, including supporting bicycle facilities that provide a dedicated right of way for the sole use of bicyclists where feasible. The focus of this application is improving bicycle safety along a high use corridor and filling a network gap to connect to existing separated bicycle facilities. This will require parking removal.

This project proposes to install a protected bike lane on a critical section of Water Street, Branciforte to Poplar, and would align well with an upcoming paving project. This segment of Water Street is home to the Small Schools campus, neighborhood commercial uses, and multiple locations of upcoming multifamily development. Total project Cost: $381,000 Grant Request:
$342,900

3. Citywide Intersection Daylighting: With the passage of AB413, California law has changes to prohibit parking within 20’ of the approach to any intersection. In order to assist with implementing this new requirement, and to improve intersections in the City with a documented safety benefit, this application proposes installing daylighting or enhanced daylighting at 89 locations within the City. These locations were selected and prioritized based on their collision history, volume of traffic, or proximity to pedestrian generators such as schools, parks, and community centers. This application is aligned with LRSP Emphasis Area 3. Total Project Cost:
$2,147,000. Grant request: $1,932,300
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

Receiving funding is not a project. Each of the projects will be individually analyzed for CEQA impacts.

HEALTH IN ALL POLICIES (HiAP): These projects promote the following Health in All Policies Conditions: Health and Wellness, Thriving Families, Community Connectedness, Heathy Environments, and Safe & Just Community.

This application is aligned with and will assist to implement components of the General Plan, Health in All Policies, and Climate Action Plan. The General Plan calls for a “citywide interconnected system of safe, inviting, and accessible pedestrian ways and bikeways” (Goal M4). The Climate Action Plan includes the transportation objective to meet an 80% reduction in greenhouse gas (GHG) emissions by 2050 will be accomplished largely by providing low-carbon transportation options that rival the efficiency and safety of the automobile. This project supports Health in All Policies by improving safety for all roadway users, thereby reducing collisions.

This project will help to achieve these General Plan, Health in All Policies, and Climate Action Plan goals by increasing safety for non-motorized users and making Santa Cruz an easier, more connected place to move about using active modes.

13.2 FISCAL IMPACT: This project is 90% state funded and requires a 10% local match. The local match will come from Gas Tax. There is no impact to the General Fund.

Prepared By:

Claire Gallogly
Transportation Planner
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. LRSP EMPHASIS AREAS.PDF

13.3 45 | Prepared by: …………………….. …………………..

EMPHASIS AREAS
Emphasis Area 1: Improving Visibility and Lighting
Description:

Visibility is an important factor in roadway safety that benefits drivers and active transportation users. Improving roadway visibility includes installing and/or maintaining street lighting, retroreflective backplates on signals and signs, and roadway striping. Between 2015-2019, of the 2,496 total collisions, 691 occurred while it was dark with streetlights, 97 occurred while it was dark with no streetlights, and 18 collisions took place at dark with streetlights not functioning. Of these dark condition collisions, 130 collisions involved a pedestrian or bicyclist. As the City expands and encourage active transportation use, it is important to make infrastructure improvements that ensure all roadway user safety at all times of the day.

DATA

FINDING
Out of the 943 collisions not occurring during daylight, the most common type of collision is hit object collisions (25%). Aside from the improvements to the safety of active transportation users, improved lighting and visibility can significantly reduce the number of collisions that result in some form of property damage.

Goals:
x Improve, enhance, or install intersection and segment lighting throughout the City.

Strategies:
x Incorporate other visibility improvements:
o Retroreflective backplates on signals and signs
o Retroreflective poles
o Retroreflective warning signs on curved roadways
o High visibility marked crosswalks
o Pedestrian crossing warning signs at pedestrian dense locations o Advanced stop bars
o Curb extensions and/or curb bulb-outs where feasible

13.4 46 | Prepared by: …………………….. …………………..

Emphasis Area 2: Reduce Aggressive Driving Behavior
Description:

The Strategic Highway Safety Plan (SHSP) describes aggressive driving as speeding or driving too fast for roadway conditions, tailgating, and other forms of reckless driving maneuvers such as weaving through traffic. Aggressive driving often includes instances where drivers disobey or run traffic signals and signs. Under the SHSP a collision may be deemed as an aggressive driving collision if any of the aforementioned criteria are documented but not necessarily the primary collision factor. In the past five years, there have been 447 collisions attributed to aggressive driving, eight of which resulted in a serious injury. Of these aggressive driving collisions, 346 (77%) were a result of unsafe speed, 70 (15%) were related to traffic signal and sign violation, and 31 (7%) were a result of following too closely. Nearly half of the aggressive driving collisions (201 in total) were rear-end collisions with the second highest collision type being broadside collisions at a total of 69.

DATA FINDING The City and its safety partners identified aggressive driving as a safety concern. Nearly 20% of all collisions in the City of Santa Cruz are related to aggressive driving.

Goals:
x Reduce annual aggressive driving collisions
Strategies:
x Evaluate use of Flashing Yellow Arrow for left turns at permissive signalized intersections x Install speed warning signs at “high risk” intersections x Implement advanced dilemma zone detection
x Consider the use of geometric roadway changes to reduce speeding x Develop a public outreach campaign or expand the existing Street Smarts campaign to coincide with other jurisdictions’ efforts to raise awareness about speeding and aggressive driving x Conduct routine speed surveys to keep speed limits current and enforceable x Enforce legislation that specifically penalizes aggressive driving x Target key intersections and road segments and review striping and signage through roadway safety assessments x Organize targeted education campaign on safety problems at ͆high risk͇ intersections x Additional focused traffic enforcement presence using an equity lens

13.5 47 | Prepared by: …………………….. …………………..

Emphasis Area 3: Improve Traffic Safety for Vulnerable Roadway Users Including the Unhoused Population
Description:

There are many pedestrians and bicyclists, especially those in the unhoused population, throughout the City that need appropriate infrastructure to safely use the roadway system. The City of Santa Cruz has outlined policies for complete streets and has developed an Active Transportation Plan to improve and maintain multi-modal street designs. These policies will ensure that street and highway designs further the goal of providing safe and efficient mobility for all users of the city.

Throughout the City, updates to active transportation facilities such as high visibility crosswalks, bike paths, intersection control, and speed controls can help provide a safe and comfortable environment for people walking and biking. Of the 448 collisions in which at least one pedestrian or bicyclist was involved, 19 resulted in serious injuries and 7 resulted in a fatality.

DATA FINDING
About 18% of the total collisions in the City involves at least one bicyclist or pedestrian. Of the 319 pedestrian involved collisions, 230 occurred where the pedestrian was crossing at a designated marked crossing.

Goals:
x Reduce the number of fatal and serious injury collisions involving pedestrians and bicyclists, with an additional focus area on unhoused populations
Strategies:
x Provide outreach, education and enforcement to encourage more separation between vehicular and pedestrian traffic.
x Incorporate safer crossings by:
o High visibility marked crosswalks
o Advanced stop bars
o Pedestrian countdown signals with lead pedestrian intervals at signalized intersections o Reduce pedestrian crossing distance, including treatments such as median refuge islands, curb extensions and/or curb bulb-outs
o Installing midblock crossings at pedestrian dense locations: schools, shopping, beach access, etc. where feasible
x Provide advance signing and wayfinding
x Provide dedicated pedestrian and bicycle infrastructure to and from bus stops

13.6 48 | Prepared by: …………………….. …………………..
x Install adequate street lighting
x Widen street shoulders
x Provide signage (e.g., pedestrian crossing ahead) to help drivers expect to slow down for pedestrians and bikes x Install bicycle storage facilities in public areas, such as the beach, City Hall, schools and parks and in other public facilities in order to encourage bicycle use
x Work with County Public Health partners to implement additional traffic safety outreach to unhoused populations x Support bicycle facilities providing a dedicated right-of-way for the sole use of bicyclists where feasible

POTENTIAL

IMPROVEMENT

LOCATION
The top locations for collisions involving bicycles and pedestrians are along Laurel Street and Front Street. The City can consider doing a vulnerable roadway users education campaign along these streets to help pedestrians and bicyclists navigate these roadways safely. In addition, the City can consider improving active transportation infrastructure and visibility along these streets, supplementing those done on Laurel Street in 2015.

INFRASTRUCTURE TOOLBOX
The following sections provide more information on potential safety measures that might address conditions that were observed to contribute to collision activity in the City. This includes information on Crash Modification Factors, improvements and countermeasures identified for Santa Cruz, as well as for specific projects and locations identified as part of this analysis.

Countermeasure Selection Process
Crash Modification Factors
Part D of the HSM provides information on Crash Modification Factors (CMF) for roadway segments, intersections, interchanges, special facilities, and road networks.

CMF’s are used to estimate the safety effects of highway improvements and apply CMFs to compare and select highway safety improvements. A CMF less than 1.0 indicates that a treatment has the potential to reduce collisions. A CMF greater than 1.0 indicates that a treatment has the potential to increase collisions. The application of an appropriate CMF can influence the decision to implement a particular project, while the misapplication of CMFs can lead to poor decisions. Key factors to consider when applying CMFs include:

1. Selection of an appropriate CMF

2. Estimation of collisions without treatment

3. Application of CMFs by type and severity, and

4. Estimation of the combined effect for multiple treatments

13.7 City Council

AGENDA REPORT
DATE: 10/03/2024
AGENDA OF: 10/22/2024
DEPARTMENT: Public Works
SUBJECT: City Arterial and Collector Street Reconstruction and Overlay (c400809), Bikeway Striping Minor Improvement Maintenance (m409335), and Bay Drive Protected Bike Lanes and Pedestrian Path (c402304) – Budget Adjustment (PW)
RECOMMENDATION: Motion to adopt a resolution to amend the FY 2025 budget and appropriate funds in the amount of $419,949 from unanticipated revenue for expenses for City Arterial and Collector Street Reconstruction and Overlay (c400809), Bikeway Striping Minor Improvement Maintenance (m409335), and Bay Drive Protected Bike Lanes and Pedestrian Path (c402304).

BACKGROUND: Annually, the City of Santa Cruz is eligible to receive Transportation Development Act (TDA) funds by formula. These funds are programmed through the Regional Transportation Commission (RTC) and must be requested for specific projects that are eligible under the TDA guidelines.

Staff reviews existing and pending fiscal needs for projects and submits requests for project allocation to the RTC.

DISCUSSION: This fiscal year, staff evaluated existing and pending fiscal needs for TDA eligible projects. Staff prioritized the following TDA requests to the RTC:

City Arterial and Collector Street Reconstruction (c400809): This request is specifically to fund the Council approved bike and pedestrian improvements associated with the upcoming Laurel Street repaving. This additional TDA funding will limit the amount of other City funding needed to complete this project.

Bikeway Striping- Minor Improvement Maintenance (m409335): This fund is used for ongoing striping maintenance needs for bike facilities that may be used when striping has faded or when small changes are made via work order.

Bay Drive Protected Bike Lanes and Pedestrian Path (c402304): This request is to restore previous TDA funding in this project. Last year, the City requested to deallocate TDA funds from this project in order to move funding to project needs in that fiscal year and will return that project funding.

14.1 This revenue was not expected at the time of budget adoption. In order to receive the TDA funding for City Arterial and Collector Street Reconstruction and Overlay (c400809), Bikeway Striping Minor Improvement Maintenance (m409335), and Bay Drive Protected Bike Lanes and Pedestrian Path (c402304) projects, the Public Works Department needs to receive this $419,949 in new appropriations.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

Receiving funding is not considered a project. Each of the projects will be individually analyzed for CEQA impacts.

HEALTH IN ALL POLICIES (HiAP): This project promotes the Health in All Policies Conditions of Health and Wellness and Heathy Environments by providing funding for projects that increase safe and accessible bike and pedestrian facilities. These projects encourage active transportation and healthy mobility.

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

Prepared By:

Claire Gallogly
Transportation Planner
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. BUDGET ADJUSTMENT.PDF

14.2 City of Santa Cruz

BUDGET ADJUSTMENT REQUEST
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Add funding to existing projects to reflect increases in unit costs and fully fund deliverables. 317-40-64-9311-43252 c400809 400-4000-0077 City Arterial and Collector Street (Laurel Bikeway & Ped) 274,949 221-40-64-4227-43251 m409335 400-4000-0077 Roadway Striping - Minor Imp Maintenance 45,000 221-40-64-9330-43252 c402304 400-4000-0077 Bay Drive Protected Bike Lanes and Pedestrian Path 100,000 419,949
317-40-64-9311-57304 c400809 100-2020-0 City Arterial and Collector Street (Laurel Bikeway & Ped) 274,949 221-40-64-4227-54307 m409335 100-2020-0 Roadway Striping - Minor Imp Maintenance 45,000 221-40-64-9330-57307 c402304 100-2020-0 Bay Drive Protected Bike Lanes and Pedestrian Path 100,000 419,949
0 Claire
Gallogly
Digitally signed by
Claire Gallogly
Date: 2024.09.24
09:58:52 -07'00'
Nathan N.

Nguyen
Digitally signed by
Nathan N. Nguyen
Date: 2024.09.24
11:40:52 -07'00'
Emily
Burton
Digitally signed
by Emily Burton
Date: 2024.10.03
11:25:48 -07'00'
Elizabet
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Digitally signed by
Elizabeth Cabell
Date: 2024.10.07
07:08:17 -07'00' 14.3
City of Santa Cruz

BUDGET ADJUSTMENT REQUEST
Administrative Approval
Fiscal Year:

ACCOUNT PROJECT NAME (if applicable) OR REVENUE ACCOUNT TITLE ACCOUNT PROJECT NAME (if applicable) OR EXPENDITURE ACCOUNTTITLE NET: $

REQUESTEDBY DEPARTMENTHEAD

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REVIEWED

FINANCE DIRECTOR

APPROVAL

CITYMANAGER

APPROVAL
Reso #:

PROJECT

PROJECT
AMOUNT
AMOUNT
Council Approval

TOTALEXPENDITURE

TOTALREVENUE
Date:

Purpose:

Revised November 3, 2022

14.4 City Council

AGENDA REPORT
DATE: 09/30/2024
AGENDA OF: 10/22/2024
DEPARTMENT: Finance
SUBJECT: Ordinance Rescinding Uncodified Ordinance No. 1440 – An Ordinance Establishing the Planning Commission and Amending Chapter 18.41.020 – Appointment of Board of Building Appeals and Length of Term (FN) RECOMMENDATION: Motion to introduce for publication an ordinance amending Chapter

18.41.020 – Appointment of Board of Building Appeals and Length of Term, and rescinding uncodified Ordinance No. 1440 – An Ordinance establishing the Planning Commission.

BACKGROUND: On August 27, 2024, City Council approved Council Policy 5.19, establishing that on January 1, 2025, members of all listed boards, commissions, and committees would be eligible to receive a $75.00 stipend for each public meeting they attend pursuant to their duties. Only two of the listed boards, commissions, and committees – the Planning Commission and the Board of Building Appeals – are currently ineligible to receive a stipend pursuant to an uncodified ordinance and the City’s Municipal Code. This proposed ordinance seeks to resolve the issue by ensuring that members of the Planning Commission and the Board of Building Appeals are entitled to this stipend.

DISCUSSION: Members of the City’s Planning Commission are currently ineligible to receive a stipend. On November 3, 1930, the City’s City Council adopted uncodified Ordinance No. 1440, establishing the Planning Commission. While Ordinance No. 1440 was later codified in part by Ordinance No. 87-10, other provisions remain in place. As directly applicable here, this includes that “All members of the commission shall serve as such without compensation.” Ordinance No. 1440, however, includes largely outdated provisions that have been superseded by the City’s Municipal Code in Chapter 2.40 and the Planning Commission Bylaws. Ordinance No. 1440 is therefore often misleading. For example, Ordinance No. 1440 includes that there should be six members of the Planning Commission and all should serve six-year terms. These terms are directly contradicted in Municipal Code Chapter 2.40.011 and the Bylaws Articles IV and V. Accordingly, staff recommends rescinding the uncodified Ordinance No. 1440. In doing so, the City Council will not only remove the prohibition of Planning Commission members from receiving the Council Policy 5.19 stipend, but rescind a document contrary to the City’s Municipal Code and existing Planning Commission Bylaws.

The City’s Board of Building Appeals is currently ineligible to receive a stipend pursuant to Municipal Code Chapter 18.41.020 – Appointment of Board and Length of Term. Specifically, the Municipal Code notes that “Such board shall act voluntarily, and without commission.” To

15.1 ensure board members of the Board of Building Appeals are eligible to receive the appropriate Council Policy 5.19 stipend, it is recommended that “and without commission” be removed.

Should Council ultimately adopt this ordinance, the changes would take effect 30 days after final adoption. This would occur before the January 1, 2025 effective date of Council Policy 5.19.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and Section 15060(c)(3) (the activity is not a project as defined in Section 15378 of the CEQA Guidelines, because it has no potential for resulting in physical change to the environment, directly or indirectly).

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 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 proposed changes to the Municipal Code support the HiAP strategy of diversifying recruitment and representation on City boards, committees, and commissions by putting in place a process for compensation of commissioners and committee members.

FISCAL IMPACT: The City Manager’s Office included in the FY 2025 adopted budget $25,000 towards compensation for advisory body members’ engagement. Recommendation is to keep this amount as budgeted and analyze the stipend programs opt-in and waive trends for the first quarter after it goes into effect and report back to the HiAP Committee.

Prepared By:

Marisol Gómez
Assistant Director of Finance
Submitted By:

Elizabeth Cabell
Director of Finance
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. DRAFT ORDINANCE - TRACK CHANGES.DOCX

2. ORDINANCE 1440.PDF

15.2 ORDINANCE NO. 2024-XX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ RESCINDING ORDINANCE NO. 1440 – AN ORDINANCE ESTABLISHING THE PLANNING COMMISSION, AND AMENDING CHAPTER 18.41.020 – APPOINTMENT OF

BOARD OF BUILDING APPEALS AND LENGTH OF TERM
WHEREAS, on November 3, 1930, the City of Santa Cruz’s City Council adopted uncodified Ordinance No. 1440 establishing the City Planning Commission; later codified, in part, by the City Council on June 30, 1987 Ordinance No. 87-10 as Santa Cruz Municipal Code (“SCMC”) Chapter 2.40.060, providing the Planning Commission with certain powers and duties; WHEREAS, Ordinance No. 1440 stated that “All members of the [Planning] commission shall serve as such without compensation”;
WHEREAS, on November 23, 2010, the City Council adopted Ordinance No. 2010-23, codified in SCMC Chapter 18.41 et seq., establishing the Board of Building Appeals, providing the Board of Building Appeals with certain powers and duties; WHEREAS, SCMC Chapter 18.41.020 states that “Such board [of Building Appeals] shall act voluntarily, and without commission”;
WHEREAS, on August 27, 2024, the City Council voted to approve Council Policy 5.19 for Stipend for Advisory Body Members, as Resolution No. NS-30,375, wherein pursuant to the City’s 2023 Health in All Policies (“HiAP”) workplan, the City Council granted a stipend of $75.00 per public meeting attended for members of certain listed advisory bodies; WHEREAS, the City’s Planning Commission and Board of Building Appeals are the only listed advisory bodies in Council Policy 5.19 who are currently required to serve without compensation;
WHEREAS, the proposed ordinance rescinds uncodified Ordinance No. 1440 as it is either no longer applicable or superseded by the SCMC, thereby removing the prohibition of Planning Commission members from serving without compensation;
WHEREAS, the proposed revision to SCMC Chapter 18.41.020 removes the prohibition of the City’s Board of Building Appeals from receiving commission; and WHEREAS, the proposed ordinance and revisions to SCMC Chapter 18.41.020 are categorically exempt from CEQA pursuant to California Code of Regulations, Title 14, section 15061(b)(3) as there is no possibility that the proposed ordinance will have an effect on the environment.

BE IT ORDAINED By the City of Santa Cruz as follows:

Section 1. Ordinance No. 1440 of the City of Santa Cruz is rescinded.

15.3 Section 2. Section 18.41.020 of Chapter 18.41 of the Santa Cruz Municipal Code regarding the Board of Building Appeals’ appointment and length of term is amended to read as follows:

18.41.020 APPOINTMENT OF BOARD AND LENGTH OF TERM.

The board of building and fire appeals shall consist of five regular members. Special members as listed, but not limited to those as specified, in Section 18.41.030 will serve with the regular members at the request of the regular members. The city council shall appoint all members to terms not to exceed four years. Members may be reappointed to additional consecutive terms by said council without limitation. Such board shall act voluntarily, and without commission.

Section 3. This ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and Section 15060(c)(3) (the activity is not a project as defined in Section 15378 of the CEQA Guidelines, because it has no potential for resulting in physical change to the environment, directly or indirectly.) Section 4. If any section or portion of this ordinance is found to be invalid by a court of competent jurisdiction, such finding shall not affect the validity of the remainder of the ordinance, which shall continue in full force and effect.

Section 5. This ordinance shall take effect and be in full force thirty (30) days after final adoption.

PASSED FOR PUBLICATION this 22 day of October, 2024, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

15.4 This is to certify that the above
and foregoing document is the
original of Ordinance No. 2024-XX
and that it has been published or
posted in accordance with the
Charter of the City of Santa Cruz.
___________________________
City Clerk Administrator

15.5 15.6

15.7 City Council

AGENDA REPORT
DATE: 10/3/2024
AGENDA OF: 10/22/2024
DEPARTMENT: Planning and Community Development
SUBJECT: Downtown Plan Expansion, Downtown Density Bonus, and AntiDisplacement Policy. Location: South of Laurel Street, Roughly Between Center/Cedar Streets and the San Lorenzo River (in Council District 4) and, for a Future Anti-Displacement Policy, Citywide. Applicant: City of Santa Cruz. (PL)
RECOMMENDATION: Motion to:
1) Direct staff to include the Downtown Density Bonus, as discussed in this report, in the forthcoming amendments to the Downtown Specific Plan as a part of the Downtown Plan Expansion Project;
2) Consider options for a funding source that could be used to create a local affordable housing tenant preference for households at risk of displacement; and 3) Acknowledge that the Council’s direction as part of this action is exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15306 – Information Gathering.

BACKGROUND: The project to expand the Downtown Plan was initiated at the end of 2021 and has involved phases of information gathering, outreach, analysis, collaboration with major property owners as well as the Santa Cruz Warriors, and drafting new sections of the Downtown Plan itself. The City Council provided direction in June 2022 regarding height and the number of units. Council provided further direction in January 2023 specifying that the plan include three desired outcomes: First, the expanded plan area should support the addition of 1,600 housing units (while studying up to 1,800 units in the Environmental Impact Report (EIR)); second, of these 1,600 new units, at least 20% of them (320 units) should be available at below-market-rate (BMR) rent or sale prices; and third, to the greatest extent possible, City policy should incentivize construction of buildings that are no more than twelve stories in height, inclusive of density bonus. It was contemplated that these numbers would be achieved with the assumption of a 50% Density Bonus.

16.1 On June 18, 2024, the City Council and City Planning Commission received an update on the Downtown Plan Expansion process in a joint study session. This meeting coincided with a month-long public review period where the plan was released to the public to receive additional comment. The consensus direction from that meeting was for staff to return as soon as possible with the policy approach that will achieve the above-stated goals set in January 2023. This report is responsive to that direction and includes an update regarding potential anti-displacement policy approaches that staff are researching.

During production of the draft Plan, direct and indirect displacement of existing residents in and around the South of Laurel neighborhood has been mentioned as a potential concern by several community members and public officials. Staff are exploring how anti-displacement preferences might be integrated into the Downtown Plan Expansion area given the more direct displacement effects that could affect the area as new projects are built. State Legislation passed in 2022 (Senate Bill 649) created a new option for cities and counties to set aside a certain percentage of new affordable housing units for local households at risk of displacement. As part of the Council’s Housing Element adoption late last year (specifically in Objective 5.5b), the City Council directed staff to research and bring forward for Council adoption anti-displacement policies programs and code amendments by September 2025. That direction relates to and supports the anti-displacement work being considered for the Downtown Plan Expansion, and this report contains an update on that work.

DISCUSSION: Council’s direction for the Plan area to consider 1,600 units (and study up to 1,800 in the EIR) is accomplished through the land use plan and environmental documentation process. The two other points of direction, incentivizing a greater number of BMR units and seeking height limits of twelve stories, require a more creative solution. Because the California State Density Bonus provides development incentives and the City’s high inclusionary rate naturally pushes larger multifamily development to use a State Density Bonus, the City must create a development incentive program that can compete with the State Density Bonus.

State Density Bonus Law
The State Density Bonus is a State law that allows housing proposals to be larger and denser than would otherwise be permitted under local regulations in exchange for reserving some amount of the housing for very-low, low, or moderate income households (or for certain targeted groups like students, veterans, and seniors). There can be no specific height limit in place for a project that uses the State Density Bonus. Once a base project is calculated using existing development standards, those development standards can be waived if they help a project achieve its proposed bonus units. Typically, waivers will apply to site standards that regulate building massing – height, floor area ratio (FAR, which is a measure of building area compared to site area), setbacks, open space, and parking are the most common. In addition to allowing waivers for physical constraints, the State Density Bonus also allows a limited number of concessions to be requested to remove financial constraints. Concessions are frequently used to adjust standards such as building materials, and architectural details, as requirements for ground floor commercial.

The City must review development applications using the State Density Bonus in the manner that they are submitted, without requiring the use of different waivers or concessions, and the City

16.2 must approve the project if it complies with the remaining local codes and standards. A bonus of 50% of density is not necessarily equivalent to a 50% increase in height – it is up to the building designer to decide how to arrange the bonus area into the project they wish to propose. In this manner, the existing development allowances in the Downtown, both north and south of Laurel Street, could theoretically be used to propose a building that is taller than the targeted 12 story height limit directed by City Council. That potential already exists today in the downtown and has for several years.

In Santa Cruz, existing citywide requirements for inclusionary housing units (BMR housing that is required to be built with every new housing proposal of five units or more) require that a minimum of 20% of new housing units be restricted to serving Low Income households, as published annually by the California Department of Housing and Community Development.

Under the California State Density Bonus Law, required percentages of affordable units pursuant to inclusionary requirements and State Density Bonus requirements 1) are based on the initial, base project, before any bonus units are added to the project and 2) are not mutually exclusive, meaning that affordable units meeting the State Density Bonus requirement count towards meeting the City’s inclusionary requirement and vice versa. This means that for a project using the State Density Bonus, the City’s 20% inclusionary requirement ends up generating BMR units that are just over 13% to around 15% of the project’s total units, depending on the number of bonus units included. Therefore, to achieve the goal of a final yield of BMR housing that is no less than 20% of all new units, the requirements on the base projects will need to be greater than the current inclusionary requirements.

Under current market conditions in the Downtown Plan area, the 50% density bonus is the upper limit of the most common bonus pursued by market rate developers, so staff has been using a 50% bonus as a standard for calculation. The City cannot simply increase the current inclusionary requirement to 30% to achieve a 20% total unit outcome in a 50% Density Bonus scenario. The level of subsidy required for private housing developers to meet that kind of standard is higher than any financial model has found to be feasible for housing in Santa Cruz. It would likely be so infeasible that it would stop development of housing all together.

The City must create new local incentives to compete with the State Density Bonus and entice developers to instead follow City policies. If the incentives are right, housing development could increase the percentage of BMR units tied to the project and commit to following local standards such as Council’s desired 12 story height limit. Staff proposes a Downtown Density Bonus policy that achieves these aims.

Downtown Density Bonus
City planning staff have identified options for development projects to encourage developers to use the local policy and agree to building heights no taller than either eight stories or twelve stories, depending on the option selected. To make these lower heights more appealing while still achieving a yield of at least 20% BMR units, the policy proposes some novel options for granting a density bonus.

16.3 Because all sites in the project area are eligible for State Density Bonus, which would yield only 13-15% of the units being BMR and could result in heights greater than 12 stories, staff recommends that the Downtown Density Bonus be available to all property within the Downtown Plan Expansion area south of Laurel Street. This approach provides a higher likelihood of meeting the Council’s direction, particularly related to the maximum desired height and increased percentage of affordable units.

All projects seeking a Downtown Density Bonus would be committing to using only the City’s program and permanently forgoing any State Density Bonus for which they might otherwise qualify. All projects would be required to exceed the existing base inclusionary requirements, with the result being the production of permanently below-market, income-qualified housing units that total at least 20% of the total units in the final Downtown Density Bonus project. The proposed Downtown Density Bonus offers two types of development bonuses and three methods of qualifying for those bonuses. The goal of the Downtown Density Bonus is to be more attractive to developers than the State Density Bonus.

Development Bonus Options
In the proposed policy, the Downtown Density Bonus would be offered in two different ways:

1. Option A: a qualifying proposal would be allowed to build up to twelve stories and 145 feet in height and up to 6.125 FAR (3.5 FAR base + 75% bonus) if the project agrees to go through a discretionary process that includes review by an Architectural Review Committee for recommendations to support high quality design and materials as well as a Planning Commission Subcommittee to review materials at the Building Permit stage.

2. Option B: a qualifying project would be allowed to build up to the base height limits in the Plan (85 feet in most areas and 70 feet in others) with no limit on FAR if the project agrees to go through a discretionary process that includes review by an Architectural Review Committee for recommendations to support high quality design and materials as well as a Planning Commission Subcommittee to review materials at the Building Permit stage.

Qualification Options
Development projects will be able to qualify for a Downtown Density Bonus in any of the following three ways:
1) On-Site: Provide BMR units in an integrated market rate and BMR development project that meet both of the following criteria:
a) A minimum of 13.3% of the total units in the final project (density bonus plan) would be available to low-income households and
b) An additional 8% of the total units in the final project (density bonus plan) would be available to moderate-income households making up to 110% of AMI.

The number of BMR units would represent 21.3% of the total units in the project.

16.4 2) Off-Site: Provide BMR units at an off-site project with a minimum number of BMR units equivalent to 26.7% of the total units in the Downtown Density Bonus proposal and targeting households with incomes up to 80% of AMI.
a) The site with the BMR units must be located either:
i) within a half mile of the South of Laurel project area, or ii) within the boundaries of the expanded Downtown Plan, or iii) within the Coastal Zone. (see Maps, attached)
b) The off-site project must demonstrate the following:
i) Land control and an ability to achieve the required number of BMR units (30% of the total units in the associated market rate project) prior to building permit issuance for the market rate project and ii) That the project with the requisite BMR units is fully funded and that construction begins before a certificate of occupancy is awarded to the market-rate project. If that is not feasible, the applicant shall dedicate the land to the City and pay the difference of the cost of the land and the inlieu fee as calculated below. 3) In-Lieu: Pay a fee toward the City’s affordable housing trust fund at a fee of $60 per square foot of housing units in the Downtown Density Bonus proposal. a) The City is required to spend a minimum of 50% of these funds on development and preservation projects serving lower-income households within a half mile of the South of Laurel project area, within the boundaries of the Downtown Plan, or inside the Coastal Zone.

Policy Advantages
BMR Calculations
The Downtown Density Bonus proposes to calculate requirements for BMR units based on the density bonus project proposal rather than on a set of base plans. The qualifying BMR percentages were calculated based on a 50% bonus scenario using a plan of 100 units allowed by base zoning:
100 units x 50% bonus = 150 total units
100 units x 20% inclusionary requirement = 20 Low-Income units 20 inclusionary units / 150 units = 13.3% of total units are Low-Income units 12 Moderate-Income units / 150 units = 8% of total units are Moderate-Income units Or
40 off-site Low-Income units/150 units = 26.7% of total units are Low-Income units (or deeper levels of affordability) built off site
The percentage approach also allows the bonus to scale to any parcel or proposal size and eliminates the confusing project review step of having to calculate the density bonus by analyzing a project base plan that will never be built. Put simply, the more units in the overall density bonus project, the more below market rate units that are required to be provided; the percentage of BMR units remains at 21.3% of the total.

16.5 Depth of Subsidy
The Downtown Density Bonus will create a greater number and greater percentage of housing units that are restricted to below-market rate costs than would be created by projects using the State Density Bonus to build similar projects. However, the State Density Bonus would require that the units built are subsidized to a deeper level of affordability. One of the trade-offs necessary to make the Downtown Density Bonus more appealing to developers was adjusting the depth of affordability required in order to qualify for the bonus density. Staff is recommending a policy for the On-Site Qualification that maintains the existing inclusionary housing requirement of 20% of the base project being affordable to households at or below Low-Income threshold of 80% of the Area Median Income (AMI) level, plus an additional 12% of the base project being affordable to households at the Moderate Income level of 110% of AMI. The equivalent State Density Bonus would be achieved by restricting 15% of the base units to the Very-Low Income Level at 50% of AMI and then meeting the City’s inclusionary requirements by providing an additional 5% of base units at the Low-Income level (City policy requires that a total of 20% of the base units are provided at affordable cost to households at or below 80% of AMI).

The depth of affordability is a trade-off necessary in order to meet the ambitious goal of achieving a minimum of 20% of the total new housing at below-market costs. Projects pursuing the Off-Site Qualification will be required to create more housing units than would have been required in the On-Site Qualification, and because those units will be part of a 100% BMR project, they will qualify for public subsidies that can be used to target deeper levels of affordability. The proposed policy would require 100% of these units to be restricted to Low Income Households (80% of AMI) or deeper levels of affordability, and funding sources might require even deeper levels of affordability. (Most public funding sources are focused on building housing for households at or below the 60% or 50% of AMI threshold.) Similarly, the In-Lieu Qualification can be used to address a variety of affordable housing needs serving households at or below the Low-Income Level, including preserving existing affordable housing and stabilizing existing tenants, in addition to supporting construction of new deeply-affordable housing units.

The proposed mix of BMR units promotes economic diversity in the downtown area. Projects using the State Density Bonus will typically have Very Low, Low, and Above Moderate Income units, and projects consisting of 100% BMR units will typically have Very Low and Extremely Low Income units. No program currently requires or encourages Moderate Income BMR units.

The proposed Downtown Density Bonus would do so, which would promote development of downtown housing for more diverse economic segments of the community.

Type of Development Bonus
The Downtown Density Bonus proposes to grant the development bonus as additional FAR, rather than a number of units based on a set of base plans. This method eliminates any disadvantage for buildings required to incorporate commercial ground floor space, because the bonus is based on the total building FAR, not just the residential portion of the building. Further, the proposed bonus would offer more development potential than could be achieved through the 50% State Density Bonus. By offering a 75% bonus on the base FAR in Option A and unlimited

16.6 FAR in Option B, the Downtown Density Bonus offers more options for feasible development projects, making the City program more attractive than the State Density Bonus.

Architectural Review
Both options build in an architectural review committee (ARC) in order to address the challenges of applying objective design standards to Density Bonus proposals. This committee would be composed of licensed architects who make recommendations on the permit application. As proposed, a separate subcommittee of the Planning Commission would review exterior materials as part of the Building Permit approval process, to help ensure quality and durability of proposed materials.

Off-Site BMR
The State Density Bonus does not allow for BMR units to be constructed off-site. Allowing for off-site construction of BMR units as part of 100% BMR development projects not only creates a greater total amount of BMR housing, but it also allows those units to be provided at a deeper level of affordability. 100% BMR projects can qualify for public funding that can allow VeryLow- and even Extremely-Low Income households to be served. These levels of subsidy are challenging to provide in any substantial number as part of market rate development. Because of additional public financing options related to building a 100% BMR project versus inclusion of the units into a market rate project, offering an off-site option could be a powerful incentive and can support a higher percentage of BMR units than is required for the on-site option. These offsite locations would need to be relatively equitably located relative to the market rate projects.

Staff is recommending that this option be limited to using appropriately-zoned (zoned for multifamily housing and at least the number of units required for the Downtown Density Bonus) parcels within on half-mile of the Downtown Expansion Area, within the Downtown Plan Area, or elsewhere within the Coastal Zone. The attached maps show these areas of the City for reference, but do not identify specific sites that might qualify.

In-Lieu Fee
Finally, creating an option for an in-lieu fee could appeal to certain development proposals and has the potential to generate funding for the City’s Affordable Housing Trust Fund. As demonstrated with the recent projects in the downtown, the Economic Development and Housing Department has an excellent track record of turning donations of land, funding, and staff time into hundreds of housing units for lower-income tenants. Another benefit is that these funds can be used to preserve existing BMR housing, which can be much harder to fund using other public sources and which directly serves existing local households who could be vulnerable to displacement pressures.

The in-lieu fee could represent the funding necessary to create the local preference for households at risk of displacement – an option that can only be achieved through substantial local funds. Estimates on the amount of funding that could be generated through the in-lieu fee on just a single project could be in excess of $10 million. If multiple projects choose the in-lieu

16.7 fee option the City could be well positioned to initiate projects that carry a strong local preference and serve households facing indirect market displacement pressures.

Planning staff has worked with local developers, an inclusionary housing consultant, and collaborated heavily with the City Housing team in developing this policy recommendation and has worked to ensure that all components of City Council direction can be met with the proposed policy. Further work to finalize the details around application timing and permit processing for these future development proposals will continue in the lead up to the next iteration of the Draft Downtown Specific Plan, to be released later this year.

Anti-Displacement Policy
The term “anti-displacement” can be used to describe a wide variety of policy actions that support existing residents to remain living and working in the community during times of change in the macroeconomic sphere. These policy items may address housing, employment, tenant protections, financing strategies, and many other subtopics, each worthy of their own discussion.

These policies can address both direct and indirect displacement of households living on or near redeveloping property. Together, California State Law and local ordinances provide several protections for households facing direct displacement but few for those facing indirect pressure.

Direct Displacement
For existing tenants in the South of Laurel neighborhood who could be subject to direct displacement impacts, several existing protections are in place. In the State of California, all tenants are entitled to relocation benefits if they are evicted as part of a development project and local ordinances provide further support to additional households facing direct displacement pressures:
 The state Housing Crisis Act of 20191 and subsequent amendments expanded the relocation benefits that developers are required to provide for displaced lower income2 households.
o Lower income households receive up to 42 months of rental assistance payments in the same jurisdiction, as well as payment of moving costs. o Lower income households are entitled to a first right of refusal for a comparable unit at an affordable rent in the new housing development. o State laws require developers to replace existing units occupied by lower income households with new affordable units in the new building with market rate units..  Moderate income3 households are entitled to receive two months of rent as relocation assistance consistent with Santa Cruz Municipal Code section 24.08.1350. 1 See California Government Code Section 66300.6(4)
2 Lower Income households are defined as having income that is up to 80% of the Area Median Income, as standardized based on household size.
3 Moderate-Income is defined as households with income up to 110% of the Area Median Income, standardized by household size.

16.8  All households are eligible to receive one month’s rent through state laws4 related to nofault evictions.
 All households have a right to stay in their unit until six months prior to construction.

All relocation benefits must be documented in a Relocation Plan, Affordable Housing Determination Packet, and First Right of Refusal Proof of Compliance documents that developers are required to submit to the City as part of development applications. These existing protections help provide stability for tenants and contribute to efforts that address direct displacement of lower income households from Santa Cruz.

Indirect Displacement
Unlike residents of redeveloped property, tenants experiencing indirect displacement due to rising rents or other market pressures that affect the stability of housing have a limited number of protections under existing state law (such as statewide rent control and eviction protections on qualifying properties). Some households may be highly sensitive to rent increases and also have few resources to facilitate negotiating relocation support should they choose to move as a result.

The City’s large rent increase ordinance5 does provide some recourse for certain tenants, though enforcement of that ordinance is a civil matter between a property owner and tenant. For households with lower incomes seeking a new residence, there are often no affordable options, and they may be forced to leave the City or even the County of Santa Cruz entirely in order to locate housing that meets their needs.

In 2022, Governor Newsom signed Senate Bill 649, the Local Tenant Preferences to Prevent Displacement Act (SB 649, attached) into law, and the City of San Jose quickly began work on developing a program taking advantage of the new legislation. Councilmember Newsome called SB 649 and the City of San Jose’s actions to the attention of staff, and staff has reviewed both the statute and the program for possible implementation in Santa Cruz.

The law creates an allowance for certain federal and state funds to be used in support of “households at risk of displacement.” This was a significant change since most federal and state funding sources can only be spent on BMR housing that is “publicly available” and allows any US resident to apply for a lease. Placing local preferences on any housing that uses federal tax dollars is explicitly prohibited by many federal and state funding programs. Since BMR housing projects often rely on multiple federal, state, local, and even private funding sources, local preferences cannot be applied to them..

The significance of SB 649 is that it creates a new class of households that can be prioritized for certain publicly funded housing units. The law allows a city or county to require a set aside of units in projects that use Federal Low-Income Housing Tax Credits (LIHTC) and California State Tax-Exempt Housing Bonds (State Housing Bonds). Any remaining funds needed to 4 California Civil Code Section 1946.2.(d)(3)(a)
5 Santa Cruz Municipal Code Chapter 21.03

16.9 complete a project would need to come from the local jurisdiction or from other private sources that would accept the preference requirement.

The law defines “households at risk of displacement” as lower-income households that currently reside in areas that are experiencing “rapid growth or increasing housing prices.” In developing a policy to serve these households, the State law also requires that cities continue to comply with obligations to affirmatively further fair housing consistent with both state and federal laws prohibiting discrimination against any protected class of households or individuals. Typically, jurisdictions conduct a disparate impact analysis using standard statistical methods to ensure that the proposed policy does not create any discriminatory effects based on race, gender, source of income, or any other protected characteristic. After conducting this disparate impact analysis, the City of San Jose recently determined that a maximum of 15% of housing units in qualifying projects could be set aside for households at risk of displacement.

This kind of set aside could be a powerful tool to ensure that new housing built in Santa Cruz creates opportunities for stability for the most vulnerable local households. The challenge with this kind of program is that a small City like Santa Cruz has a hard time generating sufficient funding to support projects that would be subject to these restrictions. Most recent publicly funded housing projects are using funding from five or more different sources, and most of those funding sources require that all units be publicly available without any local preference. In order to generate a significant number of units that carry an anti-displacement local preference the City would need a substantial source of funding to support development of housing projects that rely on only three sources of funding: LIHTC, State Housing Bonds, and City money. The City’s Affordable Housing Trust Fund is not currently sufficiently funded to achieve that goal. With new funding sources the City could have a tool to create an anti-displacement preference as described, after conducting in the necessary disparate impact analysis. The in-lieu fee in the Downtown Density Bonus policy is one possible source of funding to support this kind of preference.

Coastal Commission Discussion
City Staff met with representatives of staff for the California Coastal Commission on October 2, 2024 to discuss the Downtown Density Bonus and related anti-displacement concepts raised in this report. Given the urbanized nature of the downtown, the Commission staff recognized that coastal resource impacts are limited in the area, and they had a generally positive response to the proposals. City and Commission staff discussed the locational criteria of the off-site and in-lieu fee affordable housing options (see Maps, attached), which are intended to ensure that affordable housing is provided in the Coastal Zone or in/near the downtown’s amenity-rich environment.

The discussion included where affordable housing may likely go outside of the downtown area (the half-mile radius) and the implications of such locations, such as affordable housing in the Beach Flats or Lower Ocean neighborhoods.

As it relates to reducing displacement in the Beach Flats and Lower Ocean while further increasing the affordable housing stock, one idea that City staff offered was for replacement housing units required per state law to not count towards the 30 percent of off-site affordable units. For example, if a 100-unit project selected the off-site option, it would require 30 BMR

16.10 units. However, if the off-site development was demolishing five units with Low Income tenants, those units would need to be replaced on the affordable housing site, in addition to the 30 required BMR units, for a total of 35 BMR units in this example. Staff intends to incorporate this language into the proposed off-site option for the Downtown Density Bonus.

CONCLUSION
Concerns about development and displacement have arisen repeatedly throughout the process of drafting the proposed expansion of the Downtown Plan. Recent changes to State Law have improved the resources available to those directly displaced due to redevelopment, with all tenants entitled to some amount of relocation support and low-income households receiving up to 42 months of rental support. Staff will enforce all existing state and local laws that create relocation support, ensuring that the greatest number of tenants receive the protections intended for them.

The proposed Downtown Density Bonus policy achieves the City Council direction provided on January 2023. The policy is designed to be a more attractive option for housing developers than the State Density Bonus, including some novel options like discretionary architectural review, off-site BMR units, and the possibility of an in-lieu fee payment. If the proposed policy is made available to all sites in the project area, the potential to achieve the goals of limited height and increased rates of BMR housing is increased. Further, the Downtown Density Bonus off-site and in-lieu options could increase the total number of BMR units even beyond the 20% target while still allowing for the same or greater amount of market rate housing to be added to the city.

Staff is seeking Council support for the proposed Downtown Density Bonus, including its application to the entirety of the Downtown Plan Expansion area. To that end, staff is interested in any questions or feedback the Council has regarding the policy approach. In particular, staff is interested in the Council’s thoughts about the in-lieu fee option given that these funds could contribute to an anti-displacement preference in publicly-funded projects.

NEXT STEPS
Following City Council direction on the topics of this report, staff will incorporate that direction into the proposed amendments to the Downtown Plan and prepare to release the most updated version of that document with the proposed amendments to the 2030 General Plan, Local Coastal Program Implementation Plan, Municipal Code, and Beach South of Laurel Area Plan (collectively the “Downtown Plan Expansion” project) along with the publication of the Draft Environmental Impact Report (DEIR) within approximately the next month.

The above-listed documents and the DEIR will be released for a standard 45-day public review period. Responses to any public comments and preparation of the Final EIR will then take place, extending through the end of the calendar year and into early 2025. Once the Final EIR is complete and any recommended mitigation measures are integrated into the proposal, the Planning Commission and City Council will hold public hearings to consider adoption of the Final Downtown Specific Plan and certification of the EIR. Assuming the City Council adopts the plan and all supporting policies, the final step toward completion will be to submit the package of policy amendments to the California Coastal Commission for review and approval.

16.11 Staff expects this review to take several months, allowing for the amended and expanded Downtown Specific Plan to potentially take effect summer or fall of 2025.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The policy direction sought here is not a formal policy adoption by the Council. The formal policy adoption will take place as part of the proposed amendments to the Downtown Specific Plan and associated documents, which will require environmental review prior to Council’s final consideration. Thus, at this stage, this item is considered exempt from CEQA under the categorical exemption in CEQA Guidelines Section 15306 – Information Collection – in that the direction is part of a study and analyses leading to an action which the City has not yet approved, adopted, or funded.

A DEIR, as discussed in the Next Steps section above, is being prepared for the project. The final proposed amendments to the Downtown Plan, General Plan, Local Coastal Program, Beach/South of Laurel Plan, and Municipal Code, together with the Final EIR, are anticipated to be considered by the Planning Commission for a recommendation to the City Council in 2025.

HEALTH IN ALL POLICIES (HiAP): The components of the current proposal are consistent with the Health in All Policies pillars of equity, public health, and sustainability in that they would encourage creation of both needed housing and economic opportunities and foster greater accessibility between the Downtown, San Lorenzo River, and beach areas. Development in the Downtown area is in close proximity to transit, jobs, amenities, and a wide range of entertainment and recreational activities, making it one of the most sustainable places to grow in the region. From an equity perspective, the project area will promote the production of new inclusionary lowincome housing, including replacement housing for any existing low- and very-low income residents. This plan also supports active transportation modes that improve both personal health and environmental sustainability.

FISCAL IMPACT: This report is part of the grant-funded project to expand the Downtown Plan boundary. The total project cost is currently scoped to be $555,000. Planning was awarded a grant for this project, totaling $300,000, and general fund sources will be used to cover the full cost of the project beyond the grant amount. The City has adopted a General Plan Maintenance Fee that is applied to new development, and those funds are expected to cover the general fund expenses.

As the project area is built out, staff anticipates that the additional property, admissions, and sales taxes, together with any special assessments elected for the project area, will have positive impacts on the City’s long-term fiscal conditions. Provision of services to the area will result in additional costs to the City, but given the location, density, and efficiency of land uses under consideration, revenues should be expected to exceed expenses. Creating a new urban destination with distinct urban character and a major events venue of regional importance could make this project the center of a highly successful economic development endeavor, bringing residents and visitors from throughout the region into Santa Cruz and helping them navigate between key points of interest like the beach, river levee, and the downtown. Precise information on the longer-term fiscal implications will not be fully known until new uses and buildings are constructed and operating.

16.12 Prepared By:

Sarah Neuse
Senior Planner
Matt VanHua, AICP
Principal Planner
Submitted By:

Lee Butler, AICP, LEED AP
Director of Planning and
Community Development
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. EXISTING STATE AND CITY HOUSING RIGHTS FOR TENANTS SUMMARY.DOC

2. SB 649 (CORTESE) TEXT.DOC

3. CITY LIMITS MAP OF OFF-SITE BELOW MARKET RATE HOUSING LOCATIONS.PDF

4. DOWNTOWN MAP OF OFF-SITE BELOW MARKET RATE HOUSING
LOCATIONS.PDF

16.13 Existing State and City Housing Rights for Tenants The Tenant Protection Act
The Tenant Protection Act of 2019 (CA AB1482, Chiu) created a number of protections for California tenants, and it was further strengthened by 2023’s SB 567 (Durazo). The bills provide protections in a number of areas:
 Rent Increases
o Caps the percentage a landlord can increase rent at covered properties within a 12- month period to 5% plus the change in the cost of living (pursuant to the Consumer Price Index), or 10%, whichever is lower.
 Evictions
o California law limits the reasons why a renter can be evicted. These include “at-fault” reasons (because of something the renter has done or refused to do) and “no fault” reasons (because of something the landlord wants to do with the property). o Landlords must state one of the allowable reasons in the written eviction notice in order to evict the renter.
o Renters cannot be evicted simply because the lease ended or the landlord is selling the property - the landlord must have and prove one of the allowed reasons. o When the landlord chooses to evict a renter for a “no-fault” reason, like the landlord or their relative is moving in or the landlord is remodeling the property, the landlord must follow specific steps, and renters have specific legal rights. If the landlord does not follow the steps, the renter may have a right to return at the same rent and the same terms.
 Relocation Payments
o If the eviction is for a “no fault” reason, the landlord must make a relocation payment to the renter equal to one month’s rent. The landlord can notify the renter that they are waiving the final month’s rent instead.
o The eviction notice must inform the renter of their right to a relocation payment or rent waiver.
o The landlord must make the relocation payment to the renter no later than 15 days after giving the renter the eviction notice.
o Lower income households are extended the same benefits that are given to people evicted by government eminent domain actions, including moving assistance, up to 42 months replacement housing payments, and first right of refusal to return to unit of the same affordability in the new building
*Exceptions for renters in certain types of housing:
 These protections apply to renters in most types of buildings, but there are some exceptions.

16.14  For example, protections do not apply to renters who live in affordable (subsidized) housing; housing built within the last 15 years; or certain single-family homes or condos, depending on how the home is owned.
 Renters may also not be protected if the landlord lives on the property.  Renters who are not covered under state law may be covered by local rent stabilization or just cause protections.

Other CA State laws
 Security Deposits
o The total amount of a security deposit cannot exceed the amount of two times the monthly rent if the unit is unfurnished or three times the monthly rent if a unit is furnished.
o The security deposit may be called last month’s rent, security deposit, pet deposit, key fee, or cleaning fee. If a tenant is living with a service or emotional support animal, they cannot be charged a separate pet deposit or additional rent for having the animal. No matter what these payments or fees are called, the law considers them all, as well as any other deposit or charge, to be part of the security deposit. o Landlords are limited to a specific set of expenses they may spend security deposits on, and has 21 days from the date that a tenant moves out to either (1) send a full refund or (2) mail or personally deliver to the tenant an itemized statement that lists the amounts of any deductions from the deposit, the reasons for the deductions, and a refund of any amounts not deducted.
 Universal access
o Allows pets in new affordable housing buildings (SB971, 2022) o Renter right to store bike, scooter etc. (SB712, 2023)  Lower fees
o Landlords required to say if they accept reusable screening reports, limits fees (AB255, 2022)
o 5%/yr HOA fee increase cap on affordable ownership units (AB572, 2023)  Prioritize Vulnerable Populations
o Right to end lease early for violent crime victims (SB1190, 2020) o Protect domestic violence survivors from eviction (SB1017, 2022) o Prioritize homeless when assigning affordable units (AB1285, 2023) o Flexibility veteran placement in in affordable units (AB1386, 2023) o Mobile home protections (AB2782, 2020)
o Disabled tenants keep rent control on moves (AB1620, 2023)  Relocation and rehousing
o Residents offered relocation assistance, rehousing in certain situations (SB330, 2019) o New buildings required to include replacement units and rehouse displaced residents in certain situations (AB1218, 2023)
 Legal protections
o Longer notice for large rent increases (AB1110, 2019) o Increase homeowner protections during bankruptcy (AB1885, 2020) o Bans forced sale of home due to consumer debt (AB2463, 2020)

16.15  Equity
o Implicit bias training for real estate agents (SB263, 2021 o Ban on appraisal discrimination; requires training (AB948, 2021) o Allow removal of discriminatory language on deeds (AB1466, 2021) o Inclusionary units distributed throughout building and equal access to amenities for all tenants (AB491, 2021)
o Can't approve/deny Section 8 tenants using credit score (SB267, 2023) o Ban city laws re: evicting criminal tenants (AB1418, 2023)  Enforcement
o City required to investigate substandard building complaints (AB838, 2021) o City inspectors can check for problems throughout building if problem may threaten multiple units (AB548, 2023)
Housing Discrimination
 CA law protects renters from discrimination based on “protected characteristics” - ancestry, national origin, disability, familial status, gender identity, marital status, etc  Housing providers cannot discriminate against tenants based on their source of income, i.e.

Housing Choice Vouchers, Veteran’s benefits, child support, etc  It is lawful for housing providers to perform background checks on applicants, but unlawful to have “blanket ban” on all applicants with criminal histories or those with certain types of convictions, and unlawful to consider certain types of criminal history.

City laws
 Code violation evictions (21.03.020c)
o Property owner pays tenant three months rent at new location or three months of existing rent, whichever is greater
o If less than 30 days notice, add another month of rent  Large rent increase ordinance
o If tenant has to relocate due to a large rent increase (more than five percent in one year or cumulatively more than seven percent in any two consecutive years), owner pays two months rent to tenant (21.03.030.c.3)
 Right of first refusal
o Once structure is repaired and becomes habitable, or housing is built on site, tent has first right of refusal to reoccupy

16.16 Senate Bill No. 649
CHAPTER 660
An act to add and repeal Chapter 12.76 (commencing with Section 7061) of Division 7 of Title 1 of the Government Code, relating to affordable housing. [ Approved by Governor September 28, 2022. Filed with Secretary of State September 28, 2022. ]

LEGISLATIVE COUNSEL'S DIGEST
SB 649, Cortese. Local governments: affordable housing: local tenant preference.

Existing law establishes the Department of Housing and Community Development in the Business, Consumer Services, and Housing Agency and makes the department responsible for administering various housing programs throughout the state. The California Fair Employment and Housing Act generally prohibits housing discrimination with respect to the personal characteristics of race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, veteran or military status, or genetic information. Under existing law, the Civil Rights Department is responsible for receiving, investigating, conciliating, mediating, and prosecuting complaints alleging violations of specified civil rights.

Existing law requires local agencies to provide, by April 1 of each year, an annual report to the legislative body, the Office of Planning and Research, and the Department of Housing and Community Development, the progress in meeting its share of regional housing needs. Existing law requires that annual report to include a housing element portion, which includes, but is not limited to, the number of units that have been completed, as specified.

This bill would provide that it is the state’s policy that lower income individuals residing in neighborhoods and communities experiencing significant displacement, as specified, need access to housing that is affordable and assists in avoiding displacement. The bill would provide that, to the extent feasible and consistent with other laws, the low-income housing tax credit program and tax-exempt bonds for qualified residential rental property used for affordable housing may be used to support access to housing that would allow households facing or at risk of displacement to remain in the community. The bill would specify that a local tenant preference adopted pursuant to the bill’s provisions is subject to the duty of public agencies to affirmatively further fair housing, as specified. The bill would require any local government adopting a local tenant preference policy to create a webpage on its internet website containing the ordinance and its supporting materials, and to annually submit a link to its tenant preference webpage to the Department of Housing and Community Development. The bill would require the department to post on

16.17 its internet website a list of jurisdictions that have tenant preference policies. The bill would repeal these provisions on January 1, 2033.

Bill Text
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. The Legislature finds and declares all of the following:
(a) The changes made by this act are necessary in order to provide affordable housing opportunities to lower income individuals residing in neighborhoods and communities experiencing significant displacement pressures and gentrification due to rapid growth and densification.
(b) California law recognizes that the availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every Californian is a priority of the highest order. The early attainment of this goal requires the cooperative participation of government and the private sector in an effort to expand housing opportunities and accommodate the housing needs of Californians of all economic levels.
(c) Local and state governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for the housing needs of all economic segments of the community. (d) Almost all affordable housing developments require tax credit allocations for financial viability, and many also seek tax-exempt private activity bond financing. Under income tax regulations, to qualify as an exempt facility, a facility must serve or be available on a regular basis for general public use. Section 42(g)(9) of the Internal Revenue Code (26 U.S.C. Sec. 42(g)(9)) provides that a project does not fail to meet the general public use requirement solely because of occupancy restrictions or preferences that favor tenants with special needs, or who are members of a specified group under a federal program or state program or policy that supports housing for such a specified group. This act is intended to meet this requirement by establishing a statewide policy supporting housing for lower income residents facing or at risk of displacement, provided the policy is implemented and applied in a manner consistent with the duty to affirmatively further fair housing pursuant to Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2 of the Government Code, the Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2 of the Government Code), the Unruh Civil Rights Act (Section 51 of the Civil Code), Sections 65008 and 11135 of the Government Code, the federal Fair Housing Act (42 U.S.C. Sec. 3601 et seq.), and any implementing regulations thereunder.
(e) Municipalities are significantly challenged to meet the demand for affordable housing for their lower income residents. Market forces continue to increase the cost of living

16.18 through rising rents and increased home prices, while incomes for lower income residents continue to lag behind. This effect is magnified in areas of significant income inequality.

While municipalities attempt to tackle these issues by targeted investment and zoning, these efforts can unintentionally lead to further housing displacement. Indeed, some of the main drivers for residential displacement are proximity to rail stations, proximity to job centers, historic housing stock, and location in a strong real estate market. (f) Communities and their residents benefit from affordable, stable housing when they can maintain access and proximity to local institutions, services, schools, community business centers, and health care providers, and familial and social networks. Students’ educational attainment is higher when they move less and have more stability, the mental and physical health of the community is improved with stably housed residents’ lowered stress levels and ability to afford medical visits, and the community’s fiscal health is improved as residents’ discretionary spending increases on nonhousing costs, such as food, medications, and clothes.
(g) Studies have shown that negative effects for displaced lower income adults and children include their removal from their family, friends and community support networks, increased financial strain, decreased economic opportunities, increased and more costly commutes, unstable housing situations, worsened safety and environmental concerns, significant trauma, worsened educational outcomes, and for some, homelessness.

SEC. 2. Chapter 12.76 (commencing with Section 7061) is added to Division 7 of Title 1 of the Government Code, to read:

CHAPTER 12.76. Local Tenant Preferences to Prevent Displacement Act 7061. (a) It is the policy of the state of California that lower income individuals residing in neighborhoods and communities experiencing significant displacement pressures and gentrification due to rapid growth or increasing housing prices need access to housing that is affordable and that assists those households in avoiding displacement. To the extent feasible and consistent with other state and federal laws, the low-income housing tax credit program and tax-exempt bonds for qualified residential rental properties defined under subsection (d) of Section 142 of the Internal Revenue Code used to create and preserve affordable housing may be used to support access to housing that would allow households facing or at risk of displacement to remain in the community. (b) A local tenant preference adopted pursuant to this chapter is subject to the duty of public agencies to affirmatively further fair housing pursuant to Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2, the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), the Unruh Civil Rights Act (Section 51 of the Civil Code), the federal Fair Housing Act (42 U.S.C. Sec. 3601 et seq.), and any implementing regulations thereunder. 7061.1. (a) A local government adopting a tenant preference policy shall do both of the following:

16.19 (1) No more than 90 days after the date the ordinance becomes operational, create a webpage on its internet website containing its authorizing local ordinance and supporting materials.
(2) Provide, on an annual basis, to the Department of Housing and Community Development a current link to the webpage, as described in paragraph (1), in its annual housing element report, as required by paragraph (2) of subdivision (a) of Section 65400.
(b) The Department of Housing and Community Development shall post on its internet website a list of the jurisdictions that have tenant preference policies based upon the information provided by local governments in their respective annual housing element reports.
7061.2. This chapter shall remain in effect only until January 1, 2033, and as of that date is repealed.

16.20 WEST CL I FF DR

FAIR AV

DELAWARE AV

SWIFT ST
2ND ST
BAY ST

BEACH ST

SHAFFER RD

CENTER ST

NATURAL BRIDGES DR

SWANTON BL

MURRAY ST

ALMAR AV

PACIFIC AV

SURFSIDE AV

COLUMBIA ST

SEABRIGHT AV

PELTON AV

OCEAN ST

WOODROW AV
Locations for off-site Below-Market Housing 0 1,250 2,500 5,000 Feet with a Downtown Density Bonus
Parcels
City Limit
Coastal Zone Boundary
Downtown Expansion Area
Proposed Downtown Plan Area
Downtown Expansion 1/2 Mile
Buffer 16.21
2ND ST
BAY ST

BEACH ST

CENTER ST
FRO NT
ST

PACIFIC AV

LEIBRANDT AV

COLUMBIA ST

PELTON AV WEST CLIFF DR

OCEAN ST

SAN LORENZO BL

BUENA VISTA AV
Locations for off-site Below-Market Housing 0 500 1,000 2,000 Feet with a Downtown Density Bonus
Parcels
City Limit
Coastal Zone Boundary
Downtown Expansion
Area
Proposed Downtown
Plan Area
Downtown Expansion
1/2 Mile Buffer 16.22
From: Judi Grunstra
To: City Council
Subject: Agenda Item 16 - Downtown Plan Expansion
Date: Friday, October 18, 2024 12:46:09 PM
Dear Mayor and Council:

After reading staff's Summary Sheet, I have several comments.

I am glad to read that an architectural review committee is proposed, that might advise developers on ways to elevate the aesthetics of a project beyond the ugly and formulaic "podium" designs we see repeatedly in recent mixed use projects. Do whatever is allowed to prevent our city's buildings from being generic, cheap-looking and unimaginative.

Secondly I have concerns with the 45-day review period of the Draft EIR coming out at a time when many people are preoccupied with the holidays, and not able to devote time and concentration to compose thorough responses. If by "next month" staff means the DEIR will come out in November, that 45-day period will run right into Christmas and New Year's. Is it possible to delay that to January? (or extend the 45-day period to perhaps 75 days?) Lastly, the map showing off site below market rate housing would be more useful if some street names were included, at least the major streets within the orange boundaries (beyond just the Downtown Expansion area).

Thank you.

Judi Grunstra

16.23 Downtown Plan Expansion:

Downtown Density Bonus
Policy
City Council Discussion
October 22, 2024

16.24 City Council Direction
2 • January 2023
• 12 story maximum
• 20% of new housing at Below Market Rate
• Plan for 1600, study 1800 housing units for South of Laurel Area • State Density Bonus exists
• Applies everywhere inside and outside the Project area • Cannot enforce height limits, setbacks, open space, etc. • Financially attractive for developers

16.25 Policy Goals
• Exceed the number of Below Market as
compared to State Density Bonus
• Reach 20% rather than 13%-15%of total new
housing
• Apply design controls
• Regain local control
• Comply with State Law
• Participation must be optional
3 16.26
4 Downtown Density Bonus
Developers agree to: • Forego any State Density
Bonus
• Accept Bonus in form of FAR • Submit to Architectural Review Committee • PC Subcommittee to provide
guidance on design criteria
*Recommend it apply
everywhere in SOLA

16.27 5
Downtown Density Bonus
Two Options for receiving Bonus:
• A) Maintain 8-story, 85’ height
limit
• Bonus: Unlimited FAR
• B) Maintain 12-story, 145’
height limit
• Bonus: +75% FAR (3.5 FAR to 6.125
FAR)

16.28 Downtown Density
Bonus: On-site
150 Total units
• 13.3% Inclusionary LowIncome Units
+
• 8% Moderate-Income
Units

21.3% Below Market Rate

16.29 Downtown Density
Bonus: Off-site
150 Total units
• 26.7% Low-Income Off-Site

16.30 Downtown
Density Bonus
150 Total units
• $60/sf In-Lieu Fee
$10 Million
Affordable
Housing
Trust Fund

16.31 9
Anti-Displacement Tenant Preference
• Local Preferences forbidden on Publicly-funded projects • Exceptions for certain limited categories of households • SB 649 created new protected category
• “Households at risk of displacement”
• Funding needed to create housing that carries these preferences • In-lieu fee could support that funding source

16.32 Staff Recommendation
Motion to:
1) Direct staff to include the Downtown Density Bonus, as discussed in this report, in the forthcoming amendments to the Downtown Specific Plan as a part of the Downtown Plan Expansion Project; 2) Consider options for a funding source that could be used to create a local affordable housing tenant preference for households at risk of displacement; and
3) Acknowledge that the Council’s direction as part of this action is exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15306 – Information Gathering.

16.33 Questions
City Council
October 22, 2024

16.34 City Council

AGENDA REPORT
DATE: 10/02/2024
AGENDA OF: 10/22/2024
DEPARTMENT: Human Resources
SUBJECT: Amending the City of Santa Cruz Personnel Complement and Classification and Compensation Plans for the Economic Development and Housing, Finance, Fire, Human Resources, Information Technology, Parks and Recreation, Planning and Community Development, Police, Public Works, and Water Departments (HR/FN)
RECOMMENDATION: Motion to:
1) Adopt a resolution amending the City’s Classification and Compensation Plans for the FY 2025 budget personnel complement by implementing approved compensation adjustments and position changes in multiple departments as identified in Exhibit 1; and 2) Adopt a resolution amending the FY 2025 budget in the amount of $1,866,590 to fund compensation increases related to the 2021 Compensation Study as identified in Exhibit A.

BACKGROUND: The City has historically aimed to bring employee pay within ten percent of the market and accomplished this as of the Fiscal Year (FY) 2025 budget through the implementation of three compensations increases approved by City Council on September 12, 2023 (Phases I and II), and March 26, 2024 (Phase III).

Item General Fund
General Funded Classification Adjustments (4/1/2023) – SEIU $226,857 Safety Boot Stipend Increase (6/1/23) – SEIU $25,000
Phase I/II Implementation of 2021 Compensation Study (9/12/23) – SEIU And OE3 Supervisors
$483,668
Duty Assignment Differential, Overtime, and Fatigue Pay (9/26/23) – SEIU and OE3 Supervisors
$103,000
Phase III Implementation of 2021 Compensation Study (3/26/24) All Others – SEIU, OE3 Supervisors and Managers
$843,573
Total $1,682,098
With classifications now within 10% of the market, the City has an opportunity to address operational needs by increasing compensation for classifications that have historically been less than 10% below the market rate. For instance, the 2021 Compensation Study shows that Police Officers’ pay is 8.1% below the average pay of the City’s surveyed agencies. In the past, the City has prioritized raising compensation for classifications that were more than 10% below market.

17.1 As a result, classifications falling between 1% and 9.9% below market have been deferred in favor of addressing those further from the market standard.

The following considerations have been influential in the recommendations provided, including:
• Public safety and community well-being, including emergency response and Continuity of operations.
• Fiscal Sustainability, including revenue generation and avoiding the high cost of system downtime and service disruption.

Additionally, classifications with a known market standing as of the 2021 Compensation Study and having recent or current recruitment and retention challenges have been prioritized.

Recruitment and retention challenges have been identified using three metrics, including:
vacancy rate, turnover rate, and time to hire. For ease, these three metrics are defined as follows:
• Vacancy Rate: Calculates the percentage of vacant positions in an organization over a specific period. In this rate vacancy due to leaves of absence, such as work-related injury has been included.
• Turnover Rate: Calculates the percentage of employees who leave the organization within a specific period.
• Time to Fill: Measurement of the time it takes to fill a vacant position from the initial job posting to offer acceptance.

DISCUSSION: The staff report includes consideration of compensation increases and classification and personnel authorization changes. For simplicity, the following departments, items 1 through 5, are recommended to receive compensation increases to sustain and/or improve services and address recruitment/retention challenges. The final item, item 6, includes position allocation changes and/or classification system updates for varying departments to address operational needs.

1. POLICE DEPARTMENT

2. PLANNING AND COMMUNITY DEVELOPMENT

3. INFORMATION TECHNOLOGY

4. WATER AND PUBLIC WORKS

5. MULTI-DEPARTMENTAL/OTHER

1. POLICE DEPARTMENT
A two and a half percent (2.5%) increase is recommended for City Police Officers and Police Sergeants. As of the 2021 City Compensation Study Police Officers and Sergeants had the following market standing:

Grade Title
2021 Market
Standing Proposed Increase
New Standing
504 Police Officer -8.1% 2.5% -5.6%
505 Police Sergeant -9.2% 2.5% -6.7%
As of FY 2025 the Police Department has a total of seventy-nine (79) approved Police Officer positions, and fifteen (15) Police Sergeant positions. Turnover and retention of the Police Officers was reviewed over three years, from 2022 through September 30, 2024.

17.2 The current vacancy rate of Police Sergeants is 33% and Police Offers is 10%. Vacancy rates include unfilled positions and positions with incumbents on leaves of absence, such as workrelated injury.

2.93%

5.61%

10.65%

2.33%

13.29%

5.16% 4.46%

15.97%

5.43%

19.05%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%
2022 2023 2024
Q1 Q2 Q3 Q4 Target
Police Officer and Trainee Vacancy Rate by Quarter
Vacancy rates fluctuate drastically and have jumped as high as 20% within the last year.

Additionally, over the last five years nearly sixty separate recruitments have been conducted (11 recruitments per year) to keep up with the turnover rate in the Police department. Turnover data for Police Officer recruitments over a twelve-month period range from 18% to 27% from FY 2022 to FY 2023. A multitude of factors have caused higher turnover rates in police departments, including resignation due to retirements or due to the stress of the job, concerns about safety, and evolving community perceptions of law enforcement causing many officers to leave the profession for other careers. Recruitment and retention challenges are further complicated by the lengthy hiring process for police officers, including police academy training and background checks, which can worsen turnover rates. The frequent need to recruit—up to eleven times per year—places a significant burden on both HR and Police Department resources, leading to productivity loss. According to the Center for American Progress, replacing an employee can cost up to 20% of their annual salary in productivity loss and recruitment efforts, making the high turnover in police departments especially costly for California local governments.

17.3 To address some of these factors the City has completed or is currently in progress of completing the following items in a strategic attempt to reduce turnover and otherwise ease the burden on existing police officers staff who are covering mandatory overtime:
 Extended Vacation Caps to 3x the annual
 Increased Cash-Out Option from 40 hours to 80 hours for Vacation and reduced the requirement of 5-year tenure
 Police Staffing Study
 March 2025 – Contractual 4% Cost of Living Increase
 March 2025 – Removal of Step B for Police Officers and an increase to Step C  March 2025 – Remove Step A and B for Police Sergeant and increase to Step C The Police Department also sustains an Employee Health and Wellness team that is led by department staff to support each other’s mental and physical well-being. HR is recommending an additional two and a half percent (2.5%) increase to Police Officer and Sergeants to further address recruitment and retention challenges.

2. PLANNING AND COMMUNITY DEVELOPMENT
The building and skills trades industry is currently experiencing significant recruitment challenges nationwide, with local government agencies particularly affected. A shortage of qualified professionals, including building inspectors and senior plans examiners, has made it increasingly difficult to fill vacancies. The demand for specialized knowledge and experience in compliance with building standards—especially California's stringent building codes—further narrows the talent pool.

In a typical recruitment, a job is posted and open for application anywhere from two (2) to six (6) weeks or fourteen (14) to forty-five (45) days. In the case of the building and plans examiner positions, these positions remain open for applications as identified:

Job Title Number of Days Open for Recruitment
Senior Building Inspector 434
Senior Plans Examiner 183
Supervising Plans Examiner 159
Given the current recruitment challenges in the building industry, the complexity of upcoming projects, strict compliance required with California Building Codes (CBC), and the critical role these professionals play in securing future property tax revenue, a pay increase for building inspectors and senior plans examiners is recommended. This recommendation supports ensuring that the Planning & Community Development Department is well-positioned to meet the demands of future development, protect public safety, and secure timely revenue generation.

The City is entering a period marked by an unprecedented number of complex building projects, including large-scale mixed-use and residential-construction. (For example, projects under construction right now include La Bahia, Pacific Station North affordable apartments, Front/Riverfront (418 Front Street), Jessie Street affordable apartments, Delaware Addition apartments, and the 119 Coral Street supportive housing. Projects expected to start construction in the next year or so include the Downtown library/affordable apartments, 831 Water Street, Eucalyptus Avenue memory care, 136 River Street affordable units, Cruz Hotel, and 130 Center Street apartments, among others.) Many of these developments require deep technical review to

17.4 ensure compliance with California Building Code standards, which are among the most comprehensive and strict in the nation. Both building inspectors and senior plans examiners play a crucial role in ensuring these projects meet all legal and safety requirements. Delays or inefficiencies in the inspection or plan review or inspection processes result in substantial cost increases, and non-compliance with applicable standards would put public safety at risk.

Additionally, a significant portion of the city’s future revenue growth is tied directly to property taxes generated by new construction and development. Delays in these projects due to staffing shortages could lead to delays in property tax revenue, which the city relies on to fund essential services and infrastructure.

By increasing pay, the City can attract and retain qualified professionals who are capable of ensuring the code compliance and safety of proposed improvements, thereby facilitating development at all levels, whether that is a small business making tenant improvements, a homeowner constructing an addition or accessory dwelling unit, or a large mixed-use development. Additional in-house staffing will also help the Building and Safety Division enhance its level of customer service by providing more technical expertise at the public counter and more in-house plan reviews compared to the current approach, where nearly all reviews are conducted by third parties.

The following increases are recommended by classification:

Grade Title
Current Market
Standing Proposed Increase
116 BUILDING INSPECTOR -10.0% 10%
184

SENIOR BUILDING
INSPECTOR -10.0% 10%
367

SUPERVISORY BUILDING
INSPECTOR 5.0% - Compaction* 5%
297

ASSISTANT PLANS
EXAMINER -9.5% 9.5%
277 SENIOR PLANS EXAMINER -9.5% 9.5%
362

SUPERVISORY PLANS
EXAMINER 7% - Compaction* 7%
764 DEPUTY BUILDING OFFICIAL 2.0% - Compaction* 2%
*Increase associated with compaction as required by MOU Section 13.21.

3. WATER
The Water department plays a vital role in safeguarding public health by ensuring the continuous availability of clean, safe drinking water for residents, businesses, and visitors. Through various divisions, such as water engineering, treatment, and distribution, the department is responsible for compliance with state and federal water quality standards (such as the Safe Drinking Water Act). Continuous monitoring, testing, and improvements to water treatment facilities, and addressing aged infrastructure in need of repairs or replacement, allows the department to meet these goals.

Recruiting and retaining experienced staff is vital to operating a water system for reliable 24/7/365 delivery of water; investing in infrastructure maintenance and upgrades to prevent emergency outages; and addressing complex issues, like a changing climate, in an efficient and adaptable manner.

17.5 The FY 2025 budget outlines the need for several capital improvement projects essential for the long-term sustainability of the city’s water supply. Some of these projects, listed below, require qualified staff to successfully deliver, operate and maintain these complex systems.  Water Treatment Plant Improvements: Exacerbated by a changing climate, the city's only surface water treatment facility requires approximately $150M of improvements to continue to meet current and future water quality regulations.  Pipeline Replacement Programs: Nearly all raw water transmission mains, transporting water from the sources to the water treatment facility, are nearing the end of their operational life and will require replacement to ensure continues flow of water to meet customer demands.
 Water Supply Resiliency Projects: As the City continues to face water supply challenges due to climate variability, investing in projects such as aquifer storage and recovery, water transfers, and recycled water will help diversify water sources and improve supply reliability.
 Utility Billing Technology Replacement Project: The upcoming utility Billing Technology Replacement Project is a critical initiative aimed at modernizing the utilities customer service and billing system.

Increases are proposed in the following divisions within the department and specific classifications are identified in Exhibit 1 of the attached resolution:

Division/Family Proposed Increase
Engineering 5%
Metering and Utility Services 10%
Water Treatment 10%
Water Quality 9.8%
Water Distribution 10%
These increases incorporate the mapped classifications from Wastewater and other divisions within the Public Works department.

4. INFORMATION TECHNOLOGY (IT)
The City depends on a robust, interconnected IT infrastructure to power critical services like public safety, utilities, and emergency response. IT personnel are essential in maintaining, updating, and troubleshooting systems that keep daily operations running smoothly. In light of the fact that over 69% of state and local government entities encountered ransomware attacks in 2023, along with the significant service disruptions caused by the CrowdStrike-related outage on July 19, 2024, the need for highly skilled IT professionals is more evident than ever. These experts are crucial for protecting the City's technical assets, quickly responding to cyber incidents, and restoring essential services to ensure operational resilience.

By July 2024, the staffing challenges that had affected the IT department between August 2020 and June 2023, with vacancy rates reaching up to 35%, had significantly improved. This increase in staffing enabled the department to respond swiftly to the July 19th outage, minimizing or preventing service delays. If the department had still been dealing with high vacancies, the recovery might not have been as efficient, highlighting the critical need for a fully staffed and prepared IT workforce to maintain service continuity in the face of rising cyber threats.

17.6 Much of this staffing improvement is linked to trends in the private sector. As private sector hiring increases, there is concern that the City could once again experience attrition, with IT staff seeking compensation that better aligns with their skill level, which may affect the department’s ability to maintain its current level of readiness.
8%
12%
21%
18%
28%
10%
14% 16%
20% 20%
14% 14%
24% 23%
10% 9%
18%
14%
35%
7%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2019 2020 2021 2022 2023
Q1 Q2 Q3 Q4 Target
Information Technology Vacancy Rates by Quarter
Compensation adjustments are recommended to attract and retain skilled professionals in these high-demand areas, ensuring continued operational excellence and support of major system changes, such as the Utility Billing project and Enterprise Resources Planning, which encompasses all financial and human resources related systems throughout the City. HR recommends approval for compensation increases for key IT personnel, including Help Desk Support staff or IT Specialists I, II, and III; Programmer Analyst I and II; the Geographic Information Systems Manager, IT Managers, Cybersecurity Manager, and IT Project Managers/Trainers. These positions are critical to the ongoing functionality and security of essential City services, such as wastewater management, water systems, police, fire, and other vital infrastructure.

The 2021 Compensation Study identified these classifications market positions as follows.

Grade Title Current Market
Standing
Proposed Increase
144/145 IT Specialist I/II -1.9% 1.9%
232 IT Specialist III -1.9% 1.9%
726 Network & System Administrator -7.5% 7.5%
766 IT Project Manager/Training
Coordinator
-7.5% 7.5%
797 SCADA System Network
Administrator
-7.5% 7.5%
705/706 Programmer Analyst I/II -8.7% 8.7%
832 IT Manager -9.5% 8.7%
850 GIS Manager -9.5% 9.5%
833 Assistant Director of IT 10% - Compaction

17.7 5. COMPACTION AND COMPRESSION - OE3 SUPERVISORS
Operating Engineers, Local #3 (OE3) Supervisors, addressed compaction issues, as defined in Section 13.21 of the City and OE3 Memorandum of Understanding (MOU). Compaction is defined as any percentage less than ten percent (10%) between top step salary of the supervisory and the top step salary of the classification it primarily supervises. Other identified concerns relate to alternately staffed positions, such as the Water Distribution Crew leader III/IV.

Concerns have arisen regarding alternately staffed positions, like the Water Distribution Crew Leader III/IV, where pay ranges have merged into one pay scale instead of two.

An alternately staffed classification refers to a job position that is structured with multiple levels, allowing employees to advance within the classification as they gain experience, skills, and meet specific qualifications. These levels are typically distinguished by increasing responsibility and complexity of tasks, but they exist under a single job title or classification. For example, a position might have "I" and "II" levels, where an employee starts at level I and can advance to level II based on performance, training, or certification without needing to apply for a new job.

This structure helps streamline career progression and allows for internal promotions within the same job family.

To create a distinct salary scale for the higher-level position and encourage skill development, HR recommends increasing pay for the higher alternately staffed roles. The following percentage increases are based on meeting with OE3 to address compaction and compression issues:

GRADE Classifications Agreed Request
Percent
Change
356 Water Distribution Crew Leader IV Compression 5%
366 Senior Wastewater Plant Operator IV Compression 3%
329 Senior Waste Water Plan Operator III NA 0%
364 Library Assistant IV Compaction 5%
363 Library Assistant III Compaction 0%
340 Water Facilities Field Supervisor Compaction 5%
370 Water Facility Mechanical Supervisor
Compaction with
340 0%
266 Water Facility Elec/Ins Tech III
Compaction with
345 0%
345 Senior Electrician Compaction (266) 2%

6. MULTI-DEPARTMENTAL/OTHER
The following requests include additions of existing and new classifications and associated budget to fund the position modifications.

FINANCE
Delete classification of Senior Payments Technician. This classification is no longer in use and since deletion does not create a career development gap it is recommended as a cleanup item for the City classification system.

ECONOMIC DEVELOPMENT AND HOUSING
At the March 26, 2024, Council meeting Phase III Compensation increases were approved. A classification, Housing & Development Manager, was missed through mapping and should have

17.8 received a 10.4% increase along with other Development Manager positions. The Economic Development and Housing Department is working on updating the job specifications so ensure each classification is unique to prevent future mapping errors.

FIRE
Add new classification of Firefighter/Emergency Medical Technician (EMT) The Fire Department proposes a new firefighter job description of "Firefighter-EMT" to enhance our service delivery, support diversity, and optimize resource use. This change will expand our candidate pool by attracting local individuals with EMT certifications who are dedicated to emergency response but may not have pursued paramedic training. It aligns with our commitment to Diversity, Equity, Inclusion, and Accessibility, fostering a department that better represents the community and enables greater collaboration with local fire departments through streamlined qualifications and joint operations.

Additionally, this transition will reduce training costs and create opportunities for increased staffing and more flexible deployment strategies. EMT training is less expensive than paramedic training, allowing for more efficient resource allocation. By diversifying our skill set with EMTcertified firefighters, we will strengthen our emergency response capabilities while maintaining operational efficiency. This update aligns with our department’s core values and represents a step toward building a more agile and inclusive firefighting force.

HUMAN RESOURCES (HR)
Add a new classification of Human Resources Manager. A classification study was conducted for two of three HR Principal Analyst positions. After reviewing the level of work for the HR Principal Analysts assigned to Recruitment, Classification, and Compensation, and Employee and Labor Relations, the study recommended the classification of Human Resources Manager is more appropriate given the level, including complexity and decision making of expected of each role.

INFORMATION TECHNOLOGY (IT)
Delete classification of Systems Coordinator. This classification is no longer of use to the Library and IT Departments.

PARKS AND RECREATION (PR)
Addition of one new Limited Term Classification and Position 1.0 FTE of Assistant Urban Forester
The urban forestry grant aims to expand tree canopy in federally recognized disadvantaged areas of Santa Cruz, improve tree care and maintenance, and enhance community involvement in managing the urban forest. To successfully implement the $1 million USDA Forestry grant, the Parks & Recreation Department, in collaboration with Human Resources, has created a new twoyear, limited-term Assistant Urban Forester position (1.0 FTE). This role will oversee the planting of 300 trees, increase biodiversity and climate resilience, update the city’s tree inventory, and engage with contractors and the community in tree care and education efforts, all aligned with city climate action goals.

POLICE
Delete classification and position of Police Investigative Analyst 1.0 FTE Add classification and position of Police Digital Forensic Analyst 1.0 FTE

17.9 The Police Department had a different vision for the classification of Police Investigative Analyst after it was designed and went to council in the new FY25 budget. Several modifications were made to the classification including the job title. The scope of the position has been narrowed to focus on digital forensics. This is a growing and vital position for the department.

PUBLIC WORKS
Addition of a Position of Principal Planner 1.0 FTE. The Public Works Department seeks the addition of a Principal Transportation Planner to respond to increasing complexity and quantity of transportation infrastructure and policy issues. Additional staff will help the City achieve its priorities on active transportation, climate resilience, and infill development in a proactive and responsive manner. The position will be primarily funded by transportation sources (Measure D and Gas Tax) and funded by Grant opportunities as those are available.

WATER
Delete two positions of Environmental Programs Analyst I/II 1.0 FTE. The Environmental Program Analysts are currently vacant and have been made part of the Utility Services Division to provide more general support as opposed to support related to water reduction and other environmental programs. These positions are being replaced with Program Analyst positions that provide more general support.

Add two positions of Program Analyst I/II 1.0 FTE
Replacing the Environmental Program Analyst I/II positions given the new operational needs of the Utility Services Division.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: NA HEALTH IN ALL POLICIES (HiAP): The analysis and information support the Health in All Policies (HiAPs) Workplan by supporting Economic Security and Mobility: stable employment, livable wages, food security, ability to afford basic needs, wealth accumulation, and prosperity.

FISCAL IMPACT: Fiscal impact is outlined below between the City’s General and Enterprise funds.

MM SEIU SUP POA Grand Total
GENERAL FUND $ 170,328 $ 84,480 $ 16,752 $ 381,698 $ 653,258 BUILDING & SAFETY $ 3,288 $ 58,044 $ 16,752 $ 78,084
ENGINEERING $ - $ 16,356 $ 16,356
IT $ 167,040 $ 10,080 $ 177,120
POLICE $ 381,698 $ 381,698
LIBRARY – ENTERPRISE $ 65,832 $ 4,320 $ 8,856 $ 79,008
IT $ 65,832 $ 4,320 $ 70,152
LIBRARY $ 8,856 $ 8,856
PW - ENTERPRISE $ 23,256 $ 241,968 $ 61,606 $ 326,830
CHEMI-MICRO $ 5,868 $ 1,128 $ 6,996
ENGINEERING $ - $ 43,296 $ 43,296
PRODUCTION - FIELD $ 32,844 $ 32,844
TREATMENT $ 7,272 $ 14,016 $ 21,288
WATER DIST. $ 10,116 $ 49,740 $ 44,208 $ 104,064
WASTEWATER $ 114,960 $ 3,382 $ 118,342

17.10 WATER – ENTERPRISE $ 18,432 $ 516,876 $ 272,186 $ 807,494 CHEMI-MICRO $ - $ 87,648 $ 87,648
ENGINEERING $ - $ 57,252 $ 57,252
PRODUCTION - FIELD $ 48,336 $ 57,663 $ 105,999
RECREATION $ 34,236 $ 10,944 $ 45,180
TREATMENT $ 23,328 $ 67,632 $ 90,960
UTILITY ADMIN $ 13,992 $ 133,176 $ 20,688 $ 167,856
WATER DIST. $ 4,440 $ 132,900 $ 100,152 $ 237,492
WATER TREATMENT $ 15,107 $ 15,107
Grand Total $ 277,848 $ 847,644 $ 359,399 $ 381,698 $ 1,866,589 The following fiscal impacts are related to Item 6, Multi-Department/Other, and include the correction of a missed mapping from a previous compensation increase and the addition of a position for the Public Works department.

Other General Fund Enterprise Fund Total
Economic Development & Housing $17,124 - $17,124
Public Works $25,000 $142,880 $167,880
Total $42,124 $142,880 $184,004
Prepared and Submitted By:

Sara De Leon
Human Resources Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

2. RESOLUTION EXHIBIT 1.PDF

3. BUDGET ADJUSTMENT.PDF

4. BUDGET ADJUSTMENT EXHIBIT A.PDF

17.11 RESOLUTION NO. NS-XX,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ AMENDING

THE PERSONNEL COMPLEMENT AND CLASSIFICATION AND COMPENSATION

PLANS FOR THE PUBLIC WORKS, PARKS AND RECREATION, INFORMATION

TECHNOLOGY (IT), ECONOMIC DEVELOPMENT AND HOUSING, FINANCE, HUMAN

RESOURCES, WATER, POLICE, PLANNING, AND FIRE DEPARTMENTS WHEREAS, staff has recommended certain modifications to the Classification and Compensation Plans.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz, as follows:

That effective July 1, 2024 the City of Santa Cruz Classification and Compensation Plans be modified to:

Activity Classification No. and Title Salary (New
Classifications and
Changes)
WATER
Classification Salary
Change
356 – Water Distribution
Crew Leader IV
From: $6,563/mo - $9,236/mo
To: 5% Increase $6,891/mo - $9,698/mo
Classification Salary
Change
366 – Senior Wastewater
Plant Operator IV
From: $8,010/mo - $11,273/mo
To: 3% Increase $8,251/mo - $11,612/mo
Classification Salary
Change
340 – Water Facilities Field
Supervisor
From: $8,771/mo - $12,342/mo
To: 5% Increase $9,210/mo - $12,960/mo

PUBLIC WORKS
Classification Salary
Change
357 – Wastewater Facilities
Mechanical Supervisor
From: $7,964/mo - $11,206/mo
To: 5% Increase $8,363/mo - $11,767/mo

17.12 RESOLUTION NO. NS-XX,XXX
2 Activity Classification No. and Title Salary (New
Classifications and
Changes)

MULTIPLE
Classification Salary
Change
345 – Senior Electrician
From: $7,498/mo - $10,551/mo
To: 2% Increase $7,648/mo - $10,763/mo

LIBRARY
Classification Salary
Change
364 – Library Assistant IV
From: $5,043/mo - $7,096/mo
To: 5% Increase $5,295/mo - $7,451/mo
That effective November 9, 2024 the City of Santa Cruz Classification and Compensation Plans be modified to:

Activity Classification No. and Title Salary (New
Classifications and
Changes)

PUBLIC WORKS
Add Principal Planner
Position:
7401-50%
4220-50%
731- Principal Planner

1.0 FTE

PARKS &

RECREATION
Add New Classification
and Limited Term
Position: 3105
374 – Assistant Urban
Forester

1.0 FTE (Limited Term)
$5,452/mo - $7,672/mo

INFORMATION

TECHNOLOGY (IT)
Classification Salary
Change
144 – IT Specialist I
From: $5,425/mo - $7,634/mo
To: 1.9% Increase $5,530/mo - $7,780/mo
Classification Salary
Change
145 – IT Specialist II
From: $5,980/mo - $8,415/mo
To: 1.9% Increase $6,094/mo - $8,575/mo

17.13 RESOLUTION NO. NS-XX,XXX
3 Activity Classification No. and Title Salary (New
Classifications and
Changes)
Classification Salary
Change
232 - IT Specialist III
From: $6,712/mo - $9,445/mo
To: 1.9% Increase $6,840/mo - $9,625/mo
Classification Salary
Change
726 – Network and Systems
Administrator
From: $9,898/mo - $12,759/mo
To: 7.5% Increase $10,641/mo - $/13,716/mo
Classification Salary
Change
797- SCADA Systems and
Network Administrator
From: $9,898/mo - $12,759/mo
To: 7.5% Increase $10,641/mo - $/13,716/mo
Classification Salary
Change
766 – Information
Technology (IT) Project
Manager/Training
Coordinator
From: $9,898/mo - $12,759/mo
To:7.5% Increase $10,641/mo - $13,716/mo
Classification Salary
Change
705 – Programmer Analyst I
From: $6,991/mo - $9,011/mo
To: 8.7% Increase $7,599/mo - $9,795/mo
Classification Salary
Change
706 – Programmer Analyst II
From: $7,809/mo - $10,066/mo
To: 8.7% Increase $8,489/mo - $10,942/mo
Classification Salary
Change
832 – Information
Technology (IT) Manager
From: $11,005/mo - $14,186/mo
To: 9.5% Increase $12,051/mo - $15,534/mo
Classification Salary
Change
850 - Geographic Information
Systems (GIS) Manager
From: $11,005/mo - $14,186/mo
To: 9.5% Increase $12,051/mo - $15,534/mo

17.14 RESOLUTION NO. NS-XX,XXX
4 Activity Classification No. and Title Salary (New
Classifications and
Changes)
Classification Salary
Change
833 – Assistant Director of
Information Technology (IT)
From: $12,296/mo - $15,849/mo
To: 10% Increase -
Compaction
$13,525/mo - $17,434/mo
Delete Classification 793 – Systems Coordinator

FINANCE
Delete Classification 234 - Senior Payments
Technician

ECONOMIC

DEVELOPMENT AND

HOUSING
Change the classification
salary range
836 – Housing and
Community Development
Manager
From: $10,640/mo - $13,715/mo
To: 10.4 % Increase $11,747/mo - $15,142/mo
WATER
Delete Position: 7104 136-005 Environmental
Programs Analyst I/II
(1.0 FTE)
Delete Position: 7104 136-007 Environmental
Programs Analyst I/II
(1.0 FTE)
Add 2 Positions: 7104 848/849 Program Analyst I/II
(1.0 FTE)
Classification Salary
Change
848 – Program Analyst I
From: $5,926/mo - $8,338/mo
To:

Reduction/Correction
$5,841/mo - $8,219/mo
Classification Salary
Change
849 – Program Analyst II
From: $6,346/mo - $8,929/mo

17.15 RESOLUTION NO. NS-XX,XXX
5 Activity Classification No. and Title Salary (New
Classifications and
Changes)
To:

Reduction/Correction
$6,256/mo - $8,802/mo
POLICE
Delete Classification and
Position 2102
718 -002 – Police
Investigative Analyst
(1.0 FTE)
$7,753/mo - $9,993/mo.

Add new Classification
and Position
2102 718 – Police Digital Forensic
Analyst (1.0 FTE)
$7,753/mo - $9,993/mo
Classification Salary
Change
504 – Police Officer
From: $7,368/mo - $10,885/mo
To: 2.5% Increase -
Market
$7,552/mo - $11,158/mo
Classification Salary
Change
505 – Police Sergeant
From: $8,551/mo - $13,267/mo
To: 2.5% IncreaseMarket$9,205/mo - $13,599/m0

PLANNING
Classification Salary
Change
116 – Building Inspector
From: $6,354/mo - $8,941/mo
To: 10% increase -
Market
$6,990/mo - $$9,836/mo
Classification Salary
Change
184 – Senior Building
Inspector
From: $6,959/mo - $9,792/mo
To: 10% Increase $7,655/mo - $10,772/mo
Classification Salary
Change
367 – Supervising Building
Inspector
From: $7,890/mo - $11,102/mo
To: 5% Increase -
Market
$8,206/mo - $11,547/mo

17.16 RESOLUTION NO. NS-XX,XXX
6 Activity Classification No. and Title Salary (New
Classifications and
Changes)
Classification Salary
Change
297 – Assistant Plans
Examiner
From: $6,723/mo - $9,460/mo
To: 9.5% Increase -
Market
$7,362/mo - $10,359/mo
Classification Salary
Change
362 – Senior Plans Examiner
From: $7,396/mo - $10,407/mo
To: 9.5% Increase -
Market
$8,099/mo - $11,396/mo
Classification Salary
Change
362 – Supervising Plans
Examiner
From: $8,122/mo - $11,428/mo
To: 7% Increase -
Market
$8,690/mo - $12,228/mo
Classification Salary
Change
764 – Deputy Building
Official
From: $10,600/mo - $13,663/mo
To: 2% Increase -
Compaction
$11,342/mo - $14,619/mo

WATER AND PUBLIC
WORKS
Classification Salary
Change
Exhibit 1 Market and
Compaction Increases
Various Enterprise and
General Fund Classification
in Water and Public Works
Exhibit 1
FIRE
Add New Classification 2202 611 – Firefighter/Emergency Medical Technician (EMT)
$7,412/mo - $11,145/mo

HUMAN RESOURCES
Add New Classification 1230 855 - Human Resources
Manager
$10,100/mo – 13,019/mo

17.17 RESOLUTION NO. NS-XX,XXX
7 PASSED AND ADOPTED this 22th day of October 2024, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

17.18 OCOTBER 22, 2024 EXHIBIT 1

WATER AND PUBLIC WORKS
DEPARTMENT Grade Title BARGAINING UNIT FUND TYPE FAMILY Increase % Top Current 8/31/24 New Bottom Step Monthly New Top Step Monthly WATER 108 ASSISTANT ENGINEER I SEIU ENGINEERING 5.00% $ 8,941 $ 6,672 $ 9,389 PUBLIC WORKS 109 ASSISTANT ENGINEER II SEIU GENERAL FUND ENGINEERING 5.00% $ 9,604 $ 7,168 $ 10,085 PUBLIC WORKS 109 ASSISTANT ENGINEER II SEIU PUBLIC WORKS ENGINEERING 5.00% $ 9,604 $ 7,168 $ 10,085 PUBLIC WORKS 109 ASSISTANT ENGINEER II SEIU PUBLIC WORKS ENGINEERING 5.00% $ 9,604 $ 7,168 $ 10,085 WATER 109 ASSISTANT ENGINEER II SEIU WATER ENGINEERING 5.00% $ 9,604 $ 7,168 $ 10,085 WATER 109 ASSISTANT ENGINEER II SEIU WATER ENGINEERING 5.00% $ 9,604 $ 7,168 $ 10,085 WATER 109 ASSISTANT ENGINEER II SEIU PUBLIC WORKS ENGINEERING 5.00% $ 9,604 $ 7,168 $ 10,085 WASTEWATER 120 CHEMIST I SEIU CHEMI-MICRO 0.50% $ 8,881 $ 6,343 $ 8,926 WASTEWATER 121 CHEMIST II SEIU PUBLIC WORKS CHEMI-MICRO 0.50% $ 9,326 $ 6,661 $ 9,373 WATER 716 ENGINEERING ASSOCIATE SEIU WATER ENGINEERING 5.00% $ 10,941 $ 8,165 $ 11,489 WATER 135 ENGINEERING TECHNICIAN SEIU WATER ENGINEERING 5.00% $ 8,004 $ 5,973 $ 8,405 PUBLIC WORKS 135 ENGINEERING TECHNICIAN SEIU PUBLIC WORKS ENGINEERING 5.00% $ 8,004 $ 5,973 $ 8,405 PUBLIC WORKS 135 ENGINEERING TECHNICIAN SEIU GENERAL FUND ENGINEERING 5.00% $ 8,004 $ 5,973 $ 8,405 PUBLIC WORKS 135 ENGINEERING TECHNICIAN SEIU PUBLIC WORKS ENGINEERING 5.00% $ 8,004 $ 5,973 $ 8,405 PUBLIC WORKS 135 ENGINEERING TECHNICIAN SEIU PUBLIC WORKS ENGINEERING 5.00% $ 8,004 $ 5,973 $ 8,405 WATER 255 ENVIRONMENTAL MICROBIOLOGIST I SEIU CHEMI-MICRO 9.80% $ 8,784 $ 6,854 $ 9,645 WATER 256 ENVIRONMENTAL MICROBIOLOGIST II SEIU CHEMI-MICRO 9.80% $ 9,223 $ 7,197 $ 10,127 WATER 257 ENVIRONMENTAL MICROBIOLOGIST III SEIU WATER CHEMI-MICRO 9.80% $ 10,142 $ 7,914 $ 11,136 WATER 215 LABORATORY TECH SEIU WATER CHEMI-MICRO 9.80% $ 6,829 $ 5,330 $ 7,499 WASTEWATER 359 QA/QC LAB CHEMIST SUP PUBLIC WORKS CHEMI-MICRO 3.00% $ 10,133 $ 7,418 $ 10,437 WATER 345 SENIOR ELECTRICIAN - Compaction SUP WATER PRODUCTION - FIELD 10.00% $ 10,551 $ 8,250 $ 11,607 WASTEWATER 205 SENIOR WASTEWATER COLLECTION MAINTENANCE TECH SEIU PUBLIC WORKS WATER DISTRIBUTION 10.00% $ 8,282 $ 6,474 $ 9,111 WATER 243 SENIOR WATER DISTRIBUTION OPERATOR SEIU WATER WATER DISTRIBUTION 10.00% $ 8,282 $ 6,474 $ 9,111 WASTEWATER 329 SENIOR WW PLANT OPERATOR III- Market SUP PUBLIC WORKS TREATMENT 2.00% $ 10,996 $ 7,971 $ 11,216 WASTEWATER 366 SENIOR WW PLANT OPERATOR IV - Market and Compression SUP PUBLIC WORKS TREATMENT 2.00% $ 11,612 $ 8,418 $ 11,845 WATER 754 SUPT OF WATER DISTRIBUTION MM WATER WATER DISTRIBUTION 2.53% $ 14,611 $ 11,622 $ 14,981 WATER 271 UTILITY ACCOUNT SPECIALIST SEIU WATER UTILITY ADMIN 10.00% $ 6,985 $ 5,461 $ 7,684 WATER 260 UTILITY MAINTENANCE TECH SEIU WATER PRODUCTION - FIELD 10.00% $ 7,337 $ 5,736 $ 8,071 WATER 295 UTILITY MAINTENANCE TRAINEE SEIU PRODUCTION - FIELD 10.00% $ 6,894 $ 5,390 $ 7,584 WATER 274 UTILITY SER FIELD TECH I SEIU UTILITY ADMIN 10.00% $ 6,068 $ 4,744 $ 6,675 WATER 275 UTILITY SER FIELD TECH II SEIU WATER UTILITY ADMIN 10.00% $ 6,375 $ 4,984 $ 7,013 WATER 272 UTILITY SERVICE REP I SEIU UTILITY ADMIN 10.00% $ 6,068 $ 4,744 $ 6,675 WATER 273 UTILITY SERVICE REP II SEIU WATER UTILITY ADMIN 10.00% $ 6,375 $ 4,984 $ 7,013 WATER 845 UTILITY SERVICES MANAGER MM WATER UTILITY ADMIN 8.44% $ 13,815 $ 11,622 $ 14,981 WATER 333 UTILITY SUPERVISOR SUP WATER UTILITY ADMIN 10.00% $ 8,609 $ 6,730 $ 9,470 WASTEWATER 171 WASTEWATER PLANT MECHANIC I SEIU PUBLIC WORKS WASTEWATER 10.00% $ 7,225 $ 5,650 $ 7,948 WASTEWATER 170 WASTEWATER PLANT MECHANIC II SEIU PUBLIC WORKS WASTEWATER 10.00% $ 8,252 $ 6,451 $ 9,078 WASTEWATER 746 WASTEWATER SYSTEMS MANAGER MM PUBLIC WORKS TREATMENT 1.89% $ 16,330 $ 16,639 WATER 355 WATER DIST CREW LEADER III SUP WATER DISTRIBUTION 10.00% $ 9,201 $ 7,193 $ 10,122 WATER 356 WATER DIST CREW LEADER IV SUP WATER WATER DISTRIBUTION 10.00% $ 9,698 $ 7,581 $ 10,668 WATER 246 WATER DISTRIBUTION OPER III SEIU WATER WATER DISTRIBUTION 10.00% $ 7,698 $ 6,018 $ 8,468 WATER 245 WATER DISTRIBUTION OPERATOR II SEIU WATER DISTRIBUTION 10.00% $ 7,053 $ 5,514 $ 7,759 WATER 244 WATER DISTRIBUTION OPERATOR IN TRAINING SEIU WATER DISTRIBUTION 10.00% $ 6,009 $ 4,697 $ 6,610 WATER 352 WATER DISTRIBUTION SUP V SUP WATER WATER DISTRIBUTION 10.00% $ 11,870 $ 9,279 $ 13,057 WATER 351 WATER DISTRIBUTION SUPERV IV SUP WATER DISTRIBUTION 10.00% $ 11,077 $ 8,660 $ 12,185 WATER 265 WATER FACILITIES ELEC/INST TECH II SEIU PRODUCTION - FIELD 10.00% $ 9,118 $ 7,128 $ 10,030 WATER 266 WATER FACILITIES ELEC/INSTR TECH III SEIU WATER PRODUCTION - FIELD 10.00% $ 10,104 $ 7,900 $ 11,115 WATER 340 WATER FACILITIES FIELD SUPERVISOR - Compaction SUP WATER PRODUCTION - FIELD 10.00% $ 12,342 $ 9,649 $ 13,577 WATER 370 WATER FACILITIES MECHANICAL SUPERVISOR - Compaction SUP WATER PRODUCTION - FIELD 10.00% $ 11,206 $ 8,761 $ 12,327 WATER 258 WATER FACILITIES MECHANICAL TECH II SEIU PRODUCTION - FIELD 10.00% $ 8,455 $ - $ 9,301 WATER 259 WATER FACILITIES MECHANICAL TECH III SEIU WATER PRODUCTION - FIELD 10.00% $ 9,127 $ 7,135 $ 10,040 WATER 214 WATER METER SPECIALIST I SEIU UTILITY ADMIN 10.00% $ 5,925 $ 4,632 $ 6,518 WATER 276 WATER METER SPECIALIST II SEIU WATER UTILITY ADMIN 10.00% $ 6,266 $ 4,898 $ 6,893 WATER 213 WATER METER SPECIALIST LEAD SEIU WATER UTILITY ADMIN 10.00% $ 6,788 $ 5,306 $ 7,467 WATER 339 WATER METER SUPERVISOR SUP WATER UTILITY ADMIN 10.00% $ 8,623 $ 6,741 $ 9,486 WATER 212 WATER METER TECHNICIAN SEIU WATER 10.00% $ 5,925 $ 4,632 $ 6,518 WATER 251 WATER QUALITY CHEMIST I SEIU CHEMI-MICRO 9.80% $ 8,784 $ 6,854 $ 9,645

17.19 OCOTBER 22, 2024 EXHIBIT 1

WATER AND PUBLIC WORKS
DEPARTMENT Grade Title BARGAINING UNIT FUND TYPE FAMILY Increase % Top Current 8/31/24 New Bottom Step Monthly New Top Step Monthly WATER 252 WATER QUALITY CHEMIST II SEIU CHEMI-MICRO 9.80% $ 9,223 $ 7,197 $ 10,127 WATER 253 WATER QUALITY CHEMIST III SEIU WATER CHEMI-MICRO 9.80% $ 10,142 $ 7,914 $ 11,136 WATER 240 WATER TREATMENT OPERATOR II SEIU TREATMENT 10.00% $ 7,863 $ 6,147 $ 8,650 WATER 241 WATER TREATMENT OPERATOR III SEIU TREATMENT 10.00% $ 9,251 $ 7,230 $ 10,177 WATER 239 WATER TREATMENT OPERATOR IN TRAINING SEIU TREATMENT 10.00% $ 7,087 $ 5,540 $ 7,796 WATER 242 WATER TREATMENT OPERATOR IV SEIU WATER TREATMENT 10.00% $ 9,718 $ 7,596 $ 10,690 WATER 353 WATER TREATMENT SUPERVISOR IV SUP WATER TREATMENT 10.00% $ 11,159 $ 8,723 $ 12,275 WATER 354 WATER TREATMENT SUPERVISOR V SUP WATER TREATMENT 10.00% $ 11,718 $ 9,160 $ 12,890 WASTEWATER 346 WW COLLECTION FIELD CREW LEADER SUP PUBLIC WORKS WATER DISTRIBUTION 10.00% $ 9,201 $ 7,193 $ 10,122 WASTEWATER 204 WW COLLECTION MAINTENANCE TECH I SEIU WATER DISTRIBUTION 10.00% $ 7,053 $ 5,514 $ 7,759 WASTEWATER 202 WW COLLECTION MAINTENANCE TECH II SEIU WATER DISTRIBUTION 10.00% $ 7,698 $ 6,018 $ 8,468 WASTEWATER 236 WW COLLECTION MAINTENANCE TECH III SEIU PUBLIC WORKS 10.00% $ 9,578 $ 7,488 $ 10,536 WASTEWATER 203 WW COLLECTION MAINTENANCE TRAINEE SEIU WATER DISTRIBUTION 9.00% $ 5,783 $ 4,481 $ 6,304 WASTEWATER 774 WW COLLECTION MANAGER MM PUBLIC WORKS WATER DISTRIBUTION 5.96% $ 14,138 $ 11,622 $ 14,981 WASTEWATER 358 WW FAC ELEC/INSTR SUPV SUP PUBLIC WORKS PRODUCTION - FIELD 10.00% $ 10,815 $ 8,454 $ 11,897 WASTEWATER 249 WW FAC LEAD MECHANICAL TECHNICIAN SEIU PUBLIC WORKS PRODUCTION - FIELD 10.00% $ 9,127 $ 7,135 $ 10,040 WASTEWATER 263 WW FACILITIES ELEC/INSTR TECH II SEIU PUBLIC WORKS PRODUCTION - FIELD 10.00% $ 9,118 $ 7,128 $ 10,030 WASTEWATER 262 WW FACILITIES ELEC/INSTRU TECH I SEIU PRODUCTION - FIELD 10.00% $ 7,337 $ 5,736 $ 8,071 WASTEWATER 357 WW FACILITIES MECHANICAL SUPERVISOR SUP PUBLIC WORKS PRODUCTION - FIELD 10.00% $ 11,206 $ 8,761 $ 12,327 WASTEWATER 247 WW FACILITIES MECHANICAL TECHNICIAN I SEIU PRODUCTION - FIELD 10.00% $ 7,337 $ 5,736 $ 8,071 WASTEWATER 248 WW FACILITIES MECHANICAL TECHNICIAN II SEIU PUBLIC WORKS PRODUCTION - FIELD 10.00% $ 8,455 $ 6,610 $ 9,301 WASTEWATER 752 WW LAB/ENVIRONMENTAL COMPLIANCE MANAGER MM PUBLIC WORKS CHEMI-MICRO 3.37% $ 14,492 $ 11,622 $ 14,981 WASTEWATER 206 WW PLANT OPERATOR I SEIU TREATMENT 2.00% $ 6,284 $ 4,555 $ 6,410 WASTEWATER 207 WW PLANT OPERATOR II SEIU TREATMENT 2.00% $ 8,713 $ 6,316 $ 8,888 WASTEWATER 111 WW PLANT OPERATOR IN TRAINING OIT SEIU TREATMENT 2.00% $ 6,366 $ 4,616 $ 6,494 WASTEWATER 760 WW TREATMENT FACILITIES OPERATIONS MANAGER MM PUBLIC WORKS TREATMENT 2.00% $ 14,842 $ 11,745 $ 15,139 WASTEWATER 368 WW TREATMENT OPERATION SUPERVISOR - Market Ladder SUP PUBLIC WORKS TREATMENT 2.00% $ 12,401 $ 8,990 $ 12,650 WASTEWATER 143 ENVIRONMENTAL COMPLIANCE INSPECTOR SEIU PUBLIC WORKS WASTEWATER 8.60% $ 8,370 $ 6,460 $ 9,090 WASTEWATER 360 SENIOR COMPLIANCE INSPECTOR SUP PUBLIC WORKS WASTEWATER 8.60% $ 9,174 $ 7,081 $ 9,663

17.20 City of Santa Cruz

BUDGET ADJUSTMENT REQUEST
Administrative Approval
Fiscal Year:

ACCOUNT PROJECT NAME (if applicable) OR REVENUE ACCOUNT TITLE ACCOUNT PROJECT NAME (if applicable) OR EXPENDITURE ACCOUNTTITLE NET: $

REQUESTEDBY DEPARTMENTHEAD

APPROVAL

BUDGET/ACCOUNTING

REVIEWED

FINANCE DIRECTOR

APPROVAL

CITYMANAGER

APPROVAL
Reso #:

PROJECT

PROJECT
AMOUNT
AMOUNT
Council Approval

TOTALEXPENDITURE

TOTALREVENUE
Date:

Purpose:

Revised November 3, 2022

17.21 OCTOBER 22, 2024 BUDGET ADJUSTMENT

EXHIBIT A
Grade Title BARGAINING UNIT FUNDING FUND TYPE FAMILY Increase % Top Current 8/31/24 New Bottom Step Monthly New Top Step Monthly Monthly Cost Annual Cost Total Annual Cost 833 ASSISTANT DIRECTOR OF IT - Compaction MM 101-15-10-1251-51110 GENERAL FUND IT 10% $ 15,849 $ 13,464 $ 17,355 $ 1,506 $ 18,072 $ 18,072 108 ASSISTANT ENGINEER I SEIU 0 ENGINEERING 5.00% $ 8,941 $ 6,672 $ 9,389 $ 448.00 $ 5,376.00 $ - 109 ASSISTANT ENGINEER II SEIU 101-40-62-4102-51110 GENERAL FUND ENGINEERING 5.00% $ 9,604 $ 7,168 $ 10,085 $ 481.00 $ 5,772.00 $ 11,544 109 ASSISTANT ENGINEER II SEIU 721-40-65-7203-51110 PUBLIC WORKS ENGINEERING 5.00% $ 9,604 $ 7,168 $ 10,085 $ 481.00 $ 5,772.00 $ 17,316 109 ASSISTANT ENGINEER II SEIU 731-40-63-7303-51110 PUBLIC WORKS ENGINEERING 5.00% $ 9,604 $ 7,168 $ 10,085 $ 481.00 $ 5,772.00 $ 5,772 109 ASSISTANT ENGINEER II SEIU 711-70-91-7102-51110 WATER ENGINEERING 5.00% $ 9,604 $ 7,168 $ 10,085 $ 481.00 $ 5,772.00 $ 11,544 109 ASSISTANT ENGINEER II SEIU 711-70-91-7102-51110 WATER ENGINEERING 5.00% $ 9,604 $ 7,168 $ 10,085 $ 481.00 $ 5,772.00 $ 11,544 109 ASSISTANT ENGINEER II SEIU 741-40-64-7401-51110 PUBLIC WORKS ENGINEERING 5.00% $ 9,604 $ 7,168 $ 10,085 $ 481.00 $ 5,772.00 $ 5,772 297 ASSISTANT PLANS EXAMINER SEIU 101-50-74-2301-51110 GENERAL FUND BUILDING & SAFETY 9.50% $ 9,460 $ 7,362 $ 10,359 $ 899 $ 10,788 $ 10,788 116 BUILDING INSPECTOR SEIU 108-50-74-2302-51110 GENERAL FUND BUILDING & SAFETY 10.00% $ 8,941 $ 6,990 $ 9,836 $ 895 $ 10,740 $ - 116 BUILDING INSPECTOR SEIU 101-50-74-2301-51110 GENERAL FUND BUILDING & SAFETY 10.00% $ 8,941 $ 6,990 $ 9,836 $ 895 $ 10,740 $ - 120 CHEMIST I SEIU 0 CHEMI-MICRO 0.50% $ 8,881 $ 6,343 $ 8,926 $ 45.00 $ 540.00 $ - 121 CHEMIST II SEIU 721-40-65-7208-51111 PUBLIC WORKS CHEMI-MICRO 0.50% $ 9,326 $ 6,661 $ 9,373 $ 47.00 $ 564.00 $ 1,128 764 DEPUTY BUILDING OFFICIAL MM 101-50-74-2301-51110 GENERAL FUND BUILDING & SAFETY 2.00% 13663 $ 10,812 $ 13,937 $ 274 $ 3,288 $ 3,288 716 ENGINEERING ASSOCIATE SEIU 711-70-91-7102-51110 WATER ENGINEERING 5.00% $ 10,941 $ 8,165 $ 11,489 $ 548.00 $ 6,576.00 $ 19,728 135 ENGINEERING TECHNICIAN SEIU 711-70-90-7102-51110 WATER ENGINEERING 5.00% $ 8,004 $ 5,973 $ 8,405 $ 401.00 $ 4,812.00 $ 14,436 135 ENGINEERING TECHNICIAN SEIU 721-40-61-7202-51110 PUBLIC WORKS ENGINEERING 5.00% $ 8,004 $ 5,973 $ 8,405 $ 401.00 $ 4,812.00 $ 4,812 135 ENGINEERING TECHNICIAN SEIU 101-40-62-4102-51110 GENERAL FUND ENGINEERING 5.00% $ 8,004 $ 5,973 $ 8,405 $ 401.00 $ 4,812.00 $ 4,812 135 ENGINEERING TECHNICIAN SEIU 741-40-64-7401-51110 PUBLIC WORKS ENGINEERING 5.00% $ 8,004 $ 5,973 $ 8,405 $ 401.00 $ 4,812.00 $ 4,812 135 ENGINEERING TECHNICIAN SEIU 721-40-65-7203-51110 PUBLIC WORKS ENGINEERING 5.00% $ 8,004 $ 5,973 $ 8,405 $ 401.00 $ 4,812.00 $ 4,812 255 ENVIRONMENTAL MICROBIOLOGIST I SEIU 0 CHEMI-MICRO 9.80% $ 8,784 $ 6,854 $ 9,645 $ 861.00 $ 10,332.00 $ - 256 ENVIRONMENTAL MICROBIOLOGIST II SEIU 0 CHEMI-MICRO 9.80% $ 9,223 $ 7,197 $ 10,127 $ 904.00 $ 10,848.00 $ - 257 ENVIRONMENTAL MICROBIOLOGIST III SEIU
711-70-96-7107-51110
711-40-65-7208-51110
WATER CHEMI-MICRO 9.80% $ 10,142 $ 7,914 $ 11,136 $ 994.00 $ 11,928.00 $ 47,712 850 GIS MANAGER MM 101-15-10-1251-51110 GENERAL FUND IT 9.5% $ 14,186 $ 12,051 $ 15,534 $ 1,348 $ 16,176 $ 16,176 832 IT MANAGER MM 101-15-10-1251-51110 GENERAL FUND IT 9.5% $ 14,186 $ 12,051 $ 15,534 $ 1,348 $ 16,176 $ 16,176 832 IT MANAGER MM 101-15-10-1251-51110 GENERAL FUND IT 9.5% $ 14,186 $ 12,051 $ 15,534 $ 1,348 $ 16,176 $ 16,176 832 IT MANAGER MM 951-36-51-3601-51110 LIBRARY IT 9.5% $ 14,186 $ 12,051 $ 15,534 $ 1,348 $ 16,176 $ 16,176 832 IT MANAGER MM 951-36-51-3601-51110 LIBRARY IT 9.5% $ 14,186 $ 12,051 $ 15,534 $ 1,348 $ 16,176 $ 16,176 766 IT PROJECT MANAGER/TRAINING COORDINATOR MM 101-15-10-1251-51110 GENERAL FUND IT 7.5% $ 12,759 $ 10,641 $ 13,716 $ 957.00 $ 11,484.00 $ 11,484 144 IT Specialist I SEIU 101-15-10-1251-51110 GENERAL FUND IT 1.90% $ 7,634 $ 5,530 $ 7,780 $ 146 $ 1,752 $ - 145 IT Specialist II SEIU 101-15-10-1251-51110 GENERAL FUND IT 1.90% $ 8,415 $ 6,094 $ 8,575 $ 160 $ 1,920 $ 3,840 145 IT Specialist II SEIU 951-36-51-3601-51110 GENERAL FUND IT 1.90% $ 8,415 $ 6,094 $ 8,575 $ 160 $ 1,920 $ 1,920 232 IT Specialist III SEIU 101-15-10-1251-51110 GENERAL FUND IT 1.90% $ 9,445 $ 6,840 $ 9,625 $ 180 $ 2,160 $ 4,320 232 IT Specialist III SEIU 951-36-51-3601-51110 LIBRARY IT 1.90% $ 9,445 $ 6,840 $ 9,625 $ 180 $ 2,160 $ 4,320 215 LABORATORY TECH SEIU 711-70-96-7107-51110 WATER CHEMI-MICRO 9.80% $ 6,829 $ 5,330 $ 7,499 $ 670.00 $ 8,040.00 $ 16,080 364 Library Assistant IV - July Compaction SUP 951-36-51-3601-51110 LIBRARY LIBRARY 5.00% $ 8,855.81 726 NETWORK AND SYSTEM ADMINISTRATOR MM 711-70-95-7106-51110 GENERAL FUND IT 7.5% $ 12,759 $ 10,641 $ 13,716 $ 957.00 $ 11,484.00 $ 11,484 726 NETWORK AND SYSTEM ADMINISTRATOR MM 101-15-10-1251-51110 GENERAL FUND IT 7.5% $ 12,759 $ 10,641 $ 13,716 $ 957.00 $ 11,484.00 $ 11,484 726 NETWORK AND SYSTEM ADMINISTRATOR MM 101-15-10-1251-51111 GENERAL FUND IT 7.5% $ 12,759 $ 10,641 $ 13,716 $ 957.00 $ 11,484.00 $ 11,484 726 NETWORK AND SYSTEM ADMINISTRATOR MM 101-15-10-1251-51112 GENERAL FUND IT 7.5% $ 12,759 $ 10,641 $ 13,716 $ 957.00 $ 11,484.00 $ 11,484 726 NETWORK AND SYSTEM ADMINISTRATOR MM 951-36-51-3601-51110 LIBRARY IT 7.5% $ 12,759 $ 10,641 $ 13,716 $ 957.00 $ 11,484.00 $ 22,968 504 POLICE OFFICERS POA 101-20-21-2102-51110 GENERAL FUND POLICE 2.50% $ 10,885 $ 7,552 $ 11,158 $ 273.00 $ 3,276.00 $ 321,539 505 POLICE SERGEANT POA 101-20-21-2102-51110 GENERAL FUND POLICE 2.50% $ 13,267 $ 9,205 $ 13,599 $ 332.00 $ 3,984.00 $ 60,158 705 PROGRAMMER ANALYST I MM 101-15-10-1251-51110 GENERAL FUND IT 8.7% $ 9,011 $ 7,599 $ 9,795 $ 784.00 $ 9,408.00 $ - 706 PROGRAMMER ANALYST II MM 711-70-90-7101-51110 GENERAL FUND IT 8.7% $ 10,066 $ 8,489 $ 10,942 $ 876 $ 10,512 $ 10,512 706 PROGRAMMER ANALYST II MM 101-15-10-1251-51110 GENERAL FUND IT 8.7% $ 10,066 $ 8,489 $ 10,942 $ 876 $ 10,512 $ 10,512 706 PROGRAMMER ANALYST II MM 101-15-10-1251-51110 GENERAL FUND IT 8.7% $ 10,066 $ 8,489 $ 10,942 $ 876 $ 10,512 $ 10,512 706 PROGRAMMER ANALYST II MM 951-36-51-3601-51110 LIBRARY IT 8.7% $ 10,066 $ 8,489 $ 10,942 $ 876 $ 10,512 $ 10,512 359 QA/QC LAB CHEMIST SUP
721-40-65-7208-51110
721-40-65-7205-51110 PUBLIC WORKS CHEMI-MICRO 3.00% $ 10,133 $ 7,418 $ 10,437 $ 304.00 $ 3,648.00 797 SCADA NETWORK SYSTEM ADMINISTRATOR MM 721-40-65-7203-51110 GENERAL FUND IT 7.5% $ 12,759 $ 10,641 $ 13,716 $ 957.00 $ 11,484.00 $ 11,484 184 SENIOR BUILDING INSPECTOR SEIU 101-50-74-2301-51110 GENERAL FUND BUILDING & SAFETY 10.00% $ 9,792 $ 7,655 $ 10,772 $ 980 $ 11,760 $ 23,520 345 SENIOR ELECTRICIAN - Compaction SUP 711-70-95-7106-51110 WATER PRODUCTION - FIELD 10.00% $ 10,551 $ 8,250 $ 11,607 $ 1,056.00 $ 12,672.00 $ 12,672 345 Senior Electrician - July Compaction SUP 711-70-95-7106-51110 WATER PRODUCTION - FIELD 2.00% $ 1,899.18 277 SENIOR PLANS EXAMINER SEIU 101-50-74-2301-51111 GENERAL FUND BUILDING & SAFETY 9.50% 10407 $ 8,099 $ 11,396 $ 989 $ 11,868 $ 23,736 205 SENIOR WASTEWATER COLLECTION MAINTENANCE TECH SEIU 721-40-61-7202-51110 PUBLIC WORKS WATER DISTRIBUTION 10.00% $ 8,282 $ 6,474 $ 9,111 $ 829.00 $ 9,948.00 $ 49,740 366 Senior Wastewater Plant Operator IV - July Compression SUP 721-40-65-7203-51110 PUBLIC WORKS WASTEWATER 3.00% $ 3,381.90 243 SENIOR WATER DISTRIBUTION OPERATOR SEIU 711-70-97-7108-51110 WATER WATER DISTRIBUTION 10.00% $ 8,282 $ 6,474 $ 9,111 $ 829.00 $ 9,948.00 $ 49,740 329 SENIOR WW PLANT OPERATOR III- Market SUP 721-40-65-7203-51110 PUBLIC WORKS TREATMENT 2.00% $ 10,996 $ 7,971 $ 11,216 $ 220.00 $ 2,640.00 $ 2,640 366 SENIOR WW PLANT OPERATOR IV - Market and Compression SUP 721-40-65-7203-51110 PUBLIC WORKS TREATMENT 2.00% $ 11,612 $ 8,418 $ 11,845 $ 233.00 $ 2,796.00 $ 8,388 367 SUPERVISORY BUILDING INSPECTOR SUP 101-50-74-2301-51111 GENERAL FUND BUILDING & SAFETY 5.00% $ 11,435 $ 8,536 $ 12,007 $ 572 $ 6,864 $ 6,864 362 SUPERVISORY PLANS EXAMINER SUP 101-50-74-2301-51110 GENERAL FUND BUILDING & SAFETY 7.00% 11771 $ 8,951 $ 12,595 $ 824 $ 9,888 $ 9,888 754 SUPT OF WATER DISTRIBUTION MM 711-70-97-7108-51110 WATER WATER DISTRIBUTION 2.53% $ 14,611 $ 11,622 $ 14,981 $ 370.00 $ 4,440.00 $ 4,440

17.22 OCTOBER 22, 2024 BUDGET ADJUSTMENT

EXHIBIT A
Grade Title BARGAINING UNIT FUNDING FUND TYPE FAMILY Increase % Top Current 8/31/24 New Bottom Step Monthly New Top Step Monthly Monthly Cost Annual Cost Total Annual Cost 271 UTILITY ACCOUNT SPECIALIST SEIU 711-70-92-7103-51110 WATER UTILITY ADMIN 10.00% $ 6,985 $ 5,461 $ 7,684 $ 699.00 $ 8,388.00 $ 33,552 260 UTILITY MAINTENANCE TECH SEIU 711-70-95-7106-51110 WATER PRODUCTION - FIELD 10.00% $ 7,337 $ 5,736 $ 8,071 $ 734.00 $ 8,808.00 $ 26,424 295 UTILITY MAINTENANCE TRAINEE SEIU 0 PRODUCTION - FIELD 10.00% $ 6,894 $ 5,390 $ 7,584 $ 690.00 $ 8,280.00 $ - 274 UTILITY SER FIELD TECH I SEIU 0 UTILITY ADMIN 10.00% $ 6,068 $ 4,744 $ 6,675 $ 607.00 $ 7,284.00 $ - 275 UTILITY SER FIELD TECH II SEIU 711-70-92-7103-51110 WATER UTILITY ADMIN 10.00% $ 6,375 $ 4,984 $ 7,013 $ 638.00 $ 7,656.00 $ 15,312 272 UTILITY SERVICE REP I SEIU 0 UTILITY ADMIN 10.00% $ 6,068 $ 4,744 $ 6,675 $ 607.00 $ 7,284.00 $ - 273 UTILITY SERVICE REP II SEIU 711-70-92-7103-51110 WATER UTILITY ADMIN 10.00% $ 6,375 $ 4,984 $ 7,013 $ 638.00 $ 7,656.00 $ 53,592 845 UTILITY SERVICES MANAGER MM 711-70-92-7103-51110 WATER UTILITY ADMIN 8.44% $ 13,815 $ 11,622 $ 14,981 $ 1,166.00 $ 13,992.00 $ 13,992 333 UTILITY SUPERVISOR SUP 711-70-92-7103-51110 WATER UTILITY ADMIN 10.00% $ 8,609 $ 6,730 $ 9,470 $ 861.00 $ 10,332.00 $ 10,332 170 WASTEWATER PLANT MECHANIC I SEIU 721-40-65-7203-51110 PUBLIC WORKS WASTEWATER 10.00% $ 7,225 $ 5,650 $ 7,948 $ 723.00 $ 8,676.00 $ - 746 WASTEWATER SYSTEMS MANAGER MM 721-40-65-7203-51110 PUBLIC WORKS TREATMENT 1.89% $ 16,330 $ 16,639 $ 309.00 $ 3,708.00 $ 3,708 171 WASTEWATERPLANT MECHANIC II SEIU 721-40-65-7203-51110 PUBLIC WORKS WASTEWATER 10.00% $ 8,252 $ 6,451 $ 9,078 $ 826.00 $ 9,912.00 $ 9,912 355 WATER DIST CREW LEADER III SUP 0 WATER DISTRIBUTION 10.00% $ 9,201 $ 7,193 $ 10,122 $ 921.00 $ 11,052.00 $ - 356 WATER DIST CREW LEADER IV SUP 711-70-97-7108-51110 WATER WATER DISTRIBUTION 10.00% $ 9,698 $ 7,581 $ 10,668 $ 970.00 $ 11,640.00 $ 58,200 356 Water Distribution Crew Leader IV - July Compaction SUP 711-70-97-7108-51110 WATER WATER DISTRIBUTION 5.00% $ 27,708.00 246 WATER DISTRIBUTION OPER III SEIU 711-70-97-7108-51110 WATER WATER DISTRIBUTION 10.00% $ 7,698 $ 6,018 $ 8,468 $ 770.00 $ 9,240.00 $ 83,160 245 WATER DISTRIBUTION OPERATOR II SEIU 0 WATER DISTRIBUTION 10.00% $ 7,053 $ 5,514 $ 7,759 $ 706.00 $ 8,472.00 $ - 244 WATER DISTRIBUTION OPERATOR IN TRAINING SEIU 0 WATER DISTRIBUTION 10.00% $ 6,009 $ 4,697 $ 6,610 $ 601.00 $ 7,212.00 $ - 352 WATER DISTRIBUTION SUP V SUP 711-70-97-7108-51110 WATER WATER DISTRIBUTION 10.00% $ 11,870 $ 9,279 $ 13,057 $ 1,187.00 $ 14,244.00 $ 14,244 351 WATER DISTRIBUTION SUPERV IV SUP 0 WATER DISTRIBUTION 10.00% $ 11,077 $ 8,660 $ 12,185 $ 1,108.00 $ 13,296.00 $ - 265 WATER FACILITIES ELEC/INST TECH II SEIU 0 PRODUCTION - FIELD 10.00% $ 9,118 $ 7,128 $ 10,030 $ 912.00 $ 10,944.00 $ - 266 WATER FACILITIES ELEC/INSTR TECH III SEIU 711-70-95-7106-51110 WATER PRODUCTION - FIELD 10.00% $ 10,104 $ 7,900 $ 11,115 340 WATER FACILITIES FIELD SUPERVISOR - Compaction SUP 711-70-95-7106-51110 WATER PRODUCTION - FIELD 10.00% $ 12,342 $ 9,649 $ 13,577 $ 1,235.00 $ 14,820.00 $ 29,640 340 Water Facilities Field Supervisor - July Compaction SUP 711-70-95-7106-51110 WATER WATER TREATMENT 5.00% $ 15,106.61 370 WATER FACILITIES MECHANICAL SUPERVISOR - Compaction SUP 711-70-95-7106-51110 WATER PRODUCTION - FIELD 10.00% $ 11,206 $ 8,761 $ 12,327 $ 1,121.00 $ 13,452.00 $ 13,452 258 WATER FACILITIES MECHANICAL TECH II SEIU 0 PRODUCTION - FIELD 10.00% $ 8,455 $ - $ 9,301 $ 845.50 $ 10,146.00 $ - 259 WATER FACILITIES MECHANICAL TECH III SEIU 711-70-95-7106-51110 WATER PRODUCTION - FIELD 10.00% $ 9,127 $ 7,135 $ 10,040 $ 913.00 $ 10,956.00 $ 21,912 214 WATER METER SPECIALIST I SEIU 0 UTILITY ADMIN 10.00% $ 5,925 $ 4,632 $ 6,518 $ 593.00 $ 7,116.00 $ - 276 WATER METER SPECIALIST II SEIU 711-70-92-7113-51110 WATER UTILITY ADMIN 10.00% $ 6,266 $ 4,898 $ 6,893 $ 627.00 $ 7,524.00 $ 22,572 213 WATER METER SPECIALIST LEAD SEIU 711-70-92-7113-51110 WATER UTILITY ADMIN 10.00% $ 6,788 $ 5,306 $ 7,467 $ 679.00 $ 8,148.00 $ 8,148 339 WATER METER SUPERVISOR SUP 711-70-92-7113-51110 WATER UTILITY ADMIN 10.00% $ 8,623 $ 6,741 $ 9,486 $ 863.00 $ 10,356.00 $ 10,356 212 WATER METER TECHNICIAN SEIU 711-70-92-7113-51110 WATER UTILITY ADMIN 10.00% $ 5,925 $ 4,632 $ 6,518 $ 593.00 $ 7,116.00 $ - 251 WATER QUALITY CHEMIST I SEIU 0 CHEMI-MICRO 9.80% $ 8,784 $ 6,854 $ 9,645 $ 861.00 $ 10,332.00 $ - 252 WATER QUALITY CHEMIST II SEIU 0 CHEMI-MICRO 9.80% $ 9,223 $ 7,197 $ 10,127 $ 904.00 $ 10,848.00 $ - 253 WATER QUALITY CHEMIST III SEIU 711-70-96-7107-51110 WATER CHEMI-MICRO 9.80% $ 10,142 $ 7,914 $ 11,136 $ 994.00 $ 11,928.00 $ 23,856 240 WATER TREATMENT OPERATOR II SEIU 0 TREATMENT 10.00% $ 7,863 $ 6,147 $ 8,650 $ 787.00 $ 9,444.00 $ - 241 WATER TREATMENT OPERATOR III SEIU 0 TREATMENT 10.00% $ 9,251 $ 7,230 $ 10,177 $ 926.00 $ 11,112.00 $ - 239 WATER TREATMENT OPERATOR IN TRAINING SEIU 0 TREATMENT 10.00% $ 7,087 $ 5,540 $ 7,796 $ 709.00 $ 8,508.00 $ - 242 WATER TREATMENT OPERATOR IV SEIU 711-70-95-7106-51110 WATER TREATMENT 10.00% $ 9,718 $ 7,596 $ 10,690 $ 972.00 $ 11,664.00 $ 23,328 353 WATER TREATMENT SUPERVISOR IV SUP 711-70-95-7106-51110 WATER TREATMENT 10.00% $ 11,159 $ 8,723 $ 12,275 $ 1,116.00 $ 13,392.00 $ 53,568 354 WATER TREATMENT SUPERVISOR V SUP 711-70-95-7106-51110 WATER TREATMENT 10.00% $ 11,718 $ 9,160 $ 12,890 $ 1,172.00 $ 14,064.00 $ 14,064 346 WW COLLECTION FIELD CREW LEADER SUP 721-40-61-7202-51110 PUBLIC WORKS WATER DISTRIBUTION 10.00% $ 9,201 $ 7,193 $ 10,122 $ 921.00 $ 11,052.00 $ 44,208 204 WW COLLECTION MAINTENANCE TECH I SEIU 721-40-61-7202-51110 WATER DISTRIBUTION 10.00% $ 7,053 $ 5,514 $ 7,759 $ 706.00 $ 8,472.00 $ - 202 WW COLLECTION MAINTENANCE TECH II SEIU 721-40-61-7202-51110 WATER DISTRIBUTION 10.00% $ 7,698 $ 6,018 $ 8,468 $ 770.00 $ 9,240.00 $ - 236 WW COLLECTION MAINTENANCE TECH III SEIU 721-40-665-7203-51110 PUBLIC WORKS WASTEWATER 10.00% $ 9,578 $ 7,488 $ 10,536 $ 958.00 $ 11,496.00 $ 114,960 203 WW COLLECTION MAINTENANCE TRAINEE SEIU 721-40-61-7202-51110 WATER DISTRIBUTION 9.00% $ 5,783 $ 4,481 $ 6,304 $ 521.00 $ 6,252.00 $ - 774 WW COLLECTION MANAGER MM 721-40-61-7202-51110 PUBLIC WORKS WATER DISTRIBUTION 5.96% $ 14,138 $ 11,622 $ 14,981 $ 843.00 $ 10,116.00 $ 10,116 358 WW FAC ELEC/INSTR SUPV SUP 721-40-65-7203-51110 PUBLIC WORKS PRODUCTION - FIELD 10.00% $ 10,815 $ 8,454 $ 11,897 249 WW FAC LEAD MECHANICAL TECHNICIAN SEIU 721-40-65-7203-51110 PUBLIC WORKS PRODUCTION - FIELD 10.00% $ 9,127 $ 7,135 $ 10,040 $ 913.00 $ 10,956.00 $ 10,956 263 WW FACILITIES ELEC/INSTR TECH II SEIU 721-40-65-7203-51110 PUBLIC WORKS PRODUCTION - FIELD 10.00% $ 9,118 $ 7,128 $ 10,030 $ 912.00 $ 10,944.00 $ 21,888 262 WW FACILITIES ELEC/INSTRU TECH I SEIU 0 PRODUCTION - FIELD 10.00% $ 7,337 $ 5,736 $ 8,071 $ 734.00 $ 8,808.00 $ - 357 WW FACILITIES MECHANICAL SUPERVISOR SUP 721-40-65-7203-51110 PUBLIC WORKS PRODUCTION - FIELD 10.00% $ 11,206 $ 8,761 $ 12,327 $ 1,121.00 $ 13,452.00 247 WW FACILITIES MECHANICAL TECHNICIAN I SEIU 0 PRODUCTION - FIELD 10.00% $ 7,337 $ 5,736 $ 8,071 248 WW FACILITIES MECHANICAL TECHNICIAN II SEIU 721-40-65-7203-51110 PUBLIC WORKS PRODUCTION - FIELD 10.00% $ 8,455 $ 6,610 $ 9,301 752 WW LAB/ENVIRONMENTAL COMPLIANCE MANAGER MM
721-40-65-7208-51110
721-40-65-7205-51110 PUBLIC WORKS CHEMI-MICRO 3.37% $ 14,492 $ 11,622 $ 14,981 $ 489.00 $ 5,868.00 $ 5,868 206 WW PLANT OPERATOR I SEIU 0.00 TREATMENT 2.00% $ 6,284 $ 4,555 $ 6,410 $ 126.00 $ 1,512.00 $ - 207 WW PLANT OPERATOR II SEIU 0.00 TREATMENT 2.00% $ 8,713 $ 6,316 $ 8,888 $ 175.00 $ 2,100.00 $ - 111 WW PLANT OPERATOR IN TRAINING OIT SEIU 0.00 TREATMENT 2.00% $ 6,366 $ 4,616 $ 6,494 $ 128.00 $ 1,536.00 $ - 760 WW TREATMENT FACILITIES OPERATIONS MANAGER MM 721-40-65-7203-51110 PUBLIC WORKS TREATMENT 2.00% $ 14,842 $ 11,745 $ 15,139 $ 297.00 $ 3,564.00 $ 3,564 368 WW TREATMENT OPERATION SUPERVISOR - Market Ladder SUP 721-40-65-7203-51110 PUBLIC WORKS TREATMENT 2.00% $ 12,401 $ 8,990 $ 12,650 $ 249.00 $ 2,988.00 $ 2,988 143 ENVIRONMENTAL COMPLIANCE INSPECTOR SEIU 721-40-65-7205-51110 PUBLIC WORKS WASTEWATER 8.60% $ 8,370 $ 6,460 $ 9,090 $ 720.00 $ 8,640.00 $ 17,280 360 SENIOR COMPLIANCE INSPECTOR SUP 721-40-65-7205-51110 PUBLIC WORKS WASTEWATER 8.60% $ 9,174 $ 7,081 $ 9,663 $ 489.00 $ 5,868.00 $ 5,868.00

17.23 17. PERSONNEL COMPLEMENT AND

CLASS & COMP PLANS
CITY COUNCIL - OCTOBER 22, 2024

17.24 Personnel Complement
Changes
DISCUSSION Proposed pay increases
to specific service areas
to strengthen recruitment
& retention
Includes classification
system changes and clean
up.

Compensation Increases
Item 17| October 22, 2024

17.25 PUBLIC SAFETY RECRUITMENT & RETENTION SERVICE DELIVERY MARKET & IMPACT

COMPENSATION INCREASE FOCUS
• Police
• Building & Safety
• Information Technology
• Water and Wastewater
• Vacancy
• Turnover
• Time to Hire
• Cost to Hire
• Service Demand
• Major projects
⚬ Le g a c y Syste m Up g ra d e s
⚬ C a p ita l Imp ro ve me nt Pla ns
⚬ Up c o ming De ve lo p me nt
• C la ssific a tio ns Ma rke t Sta tus
(20 21)
• G e ne ra l Fund Imp a c t
Ite m 17| O c to b e r 22, 20 24

17.26 With Fiscal Impact Without Fiscal Impact

CLASSIFICATION & COMPENSATION PLAN CHANGES
• New Principal Planner
• Mapping Correction in
Economic Development
• Deletions and Additions
• Program Analyst I/II!
Item 17| October 22, 2024

17.27 Motion to:
1) Ad o p t a re so lutio n a me nd ing the C ity’s C la ssific a tio n a nd C o mp e nsa tio n Pla ns fo r the FY 20 25 b ud g e t p e rso nne l c o mp le me nt b y imp le me nting a p p ro ve d c o mp e nsa tio n a d justme nts a nd p o sitio n c ha ng e s in multip le d e p a rtme nts a s id e ntifie d in Exhib it 1; a nd 2) Ad o p t a re so lutio n a me nd ing the FY 20 25 b ud g e t in the a mo unt o f $1,86 6 ,5 9 0 to fund c o mp e nsa tio n inc re a se s re la te d to the 20 21 C o mp e nsa tio n Stud y a s id e ntifie d in Exhib it A*.

RECOMMENDATION
*Revised Budget Adjustment Ite m 17| O c to b e r 22, 20 24

17.28 COST BY FUND

1.The proposed increases impact the City’s
General Fund for service groups:
• Police Officers (58%)
• Service (13%)
• Supervisors (3%)
• Managers (26%)
General Fund
Enterprise Funds*
$6 9 5 ,382
$1.2M

2. C la ss a nd C o mp Ad d itio ns a nd
C o rre c tio ns
*Revised Budget Adjustment
IT, Wa te r a nd Wa ste wa te r Se rvic e s
• Se rvic e (6 3%)
• Sup e rviso rs (28%)
• Ma na g e rs (9 %)
Ite m 17| O c to b e r 22, 20 24

17.29 POA BUILDING & SAFETY INFORMATION TECHNOLOGY WATER/WASTWATER

INCREASES BY SERVICE AREA
Item 17| October 22, 2024
• 2.5%
(11.5% October - March 2025)
• 4% C O LA Ma rc h 20 25
• 5 % Ste p Re mo va l Ma rc h 20 25
• Exte nd e d Va c a tio n C a p
• Inc re a se d C a sh-Out O p tio n
• Po lic e Sta ffing Stud y
• 2 - 10% • 1 - 10% • .5 - 10%

17.30 City Council

AGENDA REPORT
This item is removed and will not be discussed
DATE: 10/15/2024
AGENDA OF: 10/22/2024
DEPARTMENT: City Council
SUBJECT: Homeless Garden Project Request for a General Plan Amendment, Zoning Map Amendment, and Local Coastal Program Amendment to Facilitate Continuation and Expansion of Uses at Their Existing Location on the East Side of Shaffer Road, West of Antonelli Pond (2394 Delaware Avenue).

Owner: Ronald Swenson. CEQA: Not a Project. Also, Exempt Pursuant to CEQA Guidelines Section 15306 (Information Collection) and 15061(b)(3) (Common Sense Exemption). (CN)
RECOMMENDATION: Motion to:
1) Direct staff to process, as expeditiously as possible, the following request from the Homeless Garden Project (HGP), based on HGP’s application:
a) Amend the General Plan 2030 Map to designate the northern 4 acres of the 11-acre Swenson parcel as Agriculture/Grazing (AG) land.
b) Amend the Zoning Ordinance to classify these 4 acres as E-A Exclusive Agricultural District.
c) Adopt a Local Coastal Program Amendment for submission to the Coastal Commission to designate these 4 acres as Agriculture/Grazing (AG) land. 2) Direct staff to address any “no net loss” issue related to Recommendation #1 above when the proposed changes return to the Council for final action; and 3) Approve of the CEQA determination contained in this agenda report. The Council’s direction is not a “project” under CEQA. And, even if it were considered to be a CEQA “project” the following exemptions apply: CEQA Guidelines Section 15306 (collection of data, research, and evaluation); and “common sense” exemption (no possibility that the Council’s direction may have a significant effect on the environment.”) (14 Cal Code Regs 15061(b)(3)).

BACKGROUND: The Homeless Garden Project (HGP) has been a critical partner in the City’s efforts to reduce homelessness in the City of Santa Cruz (City) for decades. It provides jobs and job skills to some of the City’s most vulnerable residents, has enormous support throughout the City, and is one of the region’s most successful programs responding to homelessness. Despite

18.1 many costly attempts, the HGP has been unable to secure a permanent home for its farm where it can consolidate its operations and improve the services it provides.

The HGP was founded in 1990 and farmed on Pelton Avenue from 1990-1998. In 1995, the HGP temporarily located the farm on the northern end of the 11-acre Swenson property at 2394 Delaware Avenue on the City’s west side and consolidated there in 1998. Aware of the uncertainty of land security and the vital importance of a permanent site, HGP has spent nearly 30 years looking for a permanent home. Finding a site for its urban farm has been a huge challenge for the program.

Councilmembers will remember the difficulties experienced in the proposed move to Pogonip.

That process started in 1993. In 1998, after considerable environmental review, the City Council supported a 9-acre site for the HGP on the lower meadow of Pogonip. HGP worked with City Parks and Recreation Department to satisfy requirements to move forward with approvals for the site.

Between 2015 and 2019, the HGP conducted a successful capital campaign to support the cost of the site development, including accessory buildings. The City and HGP worked together to locate the HGP farm in the Lower Main Meadow for a number of years. Until 2019, HGP had been moving forward with farming in the Pogonip when historic skeet shooting was discovered on the site. The City directed HGP to put the project on hold until the property could be assessed for contamination and deemed safe for the intended use. The City enrolled in the County of Santa Cruz Environmental Health Division’s Voluntary Site Clean-up Program for project oversight. Numerous rounds of soils investigations found lead and other contaminants over portions of the site at unsafe levels for the intended farming use, posing significant cost, feasibility, and health concerns for HGP’s proposed farm in the Pogonip. Based on these circumstances, the City’s understanding is that HGP is no longer interested in pursuing the “Pogonip Farm and Garden Project.”
Currently, the HGP is focusing efforts on purchasing their current site, a 4-acre parcel on the northern end of the 11-acre Swenson property. The purchase is contingent on obtaining the necessary entitlements. HGP is eager to create clarity around future direction and to deliver results for funds raised more than five years ago.

DISCUSSION: HGP has requested the City approve the necessary General Plan, Local Coastal Program (LCP), and Zoning revisions. If the City approves these revisions, the LCP amendment will be sent to the Coastal Commission for approval. After this, the HGP will submit applications for a Minor Land Division for the four acres and a Coastal Development Permit for the construction of accessory buildings on one of the four acres. The remaining 3 acres will be used as the permanent HGP farm.

Concern has been raised regarding state law provisions for “no net loss” of residential capacity as a result of amendments to the General Plan or Zoning. While this is not the intention of the recommendations, staff should address this issue when the proposed changes return to the Council for final action.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The Council’s direction as part of this report is not a final action that approves or adopts any changes and is therefore not a “project” under CEQA. An activity undertaken, supported, or authorized

18.2 by a public agency is a “project” subject to CEQA only if it “may cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” (Pub. Resources Code, § 21065.) Council’s direction is not a final approval that will cause a change to the environment.

In the alternative, if the Council action is considered a “project” under CEQA, the following exemptions applies:
• Class 6 Categorical Exemption because the action amounts to the collection of data, research, and evaluation that will allow for consideration of formal action on future applications. HGP will be responsible for conducting the appropriate level of CEQA review, and that information and CEQA clearance path will be presented to the Council with consideration of the future applications. (CEQA Guidelines Section 15306, Cal.

Code Regs., tit. 14, § 15306.)
• The “common sense” exemption applies because the Council is simply providing direction to staff, and there is no possibility that the Council’s direction may have a significant effect on the environment.” (CEQA Guidelines Section 15061(b)(3), 14 Cal Code Regs 15061(b)(3).)
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 recommended herein support the pillar of equity by expediting the process to help create clarity around future direction to a program that supports individuals experiencing homelessness.

HGP supports public health by offering jobs and job training to those experiencing homelessness and, thereby, improving their ability to become and remain healthy. The actions support sustainability by expediting the process to help create clarity for the HGP in its aim to permanently operate an organic farm in an environmentally sensitive manner. Therefore, the recommended actions are consistent with the three pillars of HiAP.

FISCAL IMPACT: The City’s costs associated with the application processing will be covered by HGP as part of their formal submittal of an application.

Submitted By:

Fred Keeley
Mayor
Submitted By:

Renee Golder
Vice Mayor
Submitted By:

Sandy Brown
Councilmember
ATTACHMENTS:

None.

18.3 City Council

AGENDA REPORT
DATE: 10/16/2024
AGENDA OF: 10/22/2024
DEPARTMENT: Planning and Community Development
SUBJECT: 2nd Reading and Final Adoption of Ordinance No. 2024-17 Adding Santa Cruz Municipal Code Section 24.04.095, and Amending Chapters 24.04,

24.08, 24.10, and 24.12, and 2nd Reading and Final Adoption of Ordinance No. 2024-18 Amending Santa Cruz Municipal Code Chapters 21.06, and

24.08; Amending Chapter 24.16 Part 1 and Part 2. Ordinances Are Related to Accessory Dwelling Units to Maintain Consistency with State Regulations, Clarify Existing Standards, and Require Properties with Rented Accessory Dwelling Units to Enroll in the Residential Rental Inspection Service, 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)
RECOMMENDATION: Motion to:
1) Adopt 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; and 2) Adopt Ordinance No. 2024-18 amending Santa Cruz Municipal Code Chapters 21.06 and

24.08 and amending Chapter 24.16 Part 1 and Part 2 related to accessory dwelling units, and rescinding Temporary Ordinance Nos. 2022-22 and 2023-01. 3) Adopt a resolution authorizing the City Manager to submit the proposed amendments within Ordinance No. 2024-17 that are part of the Local Coastal Program as Local Coastal Implementation Plan amendments to the California Coastal Commission for final certification.

19.1 BACKGROUND: At the October 8, 2024 City Council meeting, the City Council heard a first reading of two proposed ordinances to make changes to the City’s accessory dwelling unit (ADU) regulations. The draft ordinances presented at that meeting proposed to: permanently adopt the revisions made in urgency ordinances 2022-22 and 2023-01; make updates required by the state Department of Housing and Community Development (HCD); remove owneroccupancy restrictions for all ADUs, including those constructed prior to 2020; require all properties with ADUs to register with the Residential Rental Inspection Service program; implement state laws that allow ADUs and their associated primary dwelling to be sold separately as condominiums; and address other topics or needed clarifications that have arisen during review of ADU permit applications. Development of these updates also involved considering several other minor policy questions.

The City Council approved a motion (4-2, 1 absent) to approve most of staff’s recommended changes but omit parts of the recommendation, resulting in the following changes:
• Retain owner-occupancy requirements for ADUs constructed prior to January 1, 2020. • Remove the requirement to register with the Residential Rental Inspection Service program if the ADU is not rented.
• Remove provisions for separate sale of ADUs and return in two years with a report on the existing landscape on separate sale of ADUs.

DISCUSSION: The proposed ordinances in the agenda materials for this meeting reflect the changes made by the City Council at the October 8th City Council Meeting.

While the ordinances as proposed are currently consistent with state law, a new state law, SB 1211, which was signed by the governor in September and takes effects statewide on January 1st of 2025, limits the standards that can be applied to “statewide exemption ADUs”, which are ADUs that meet the specific requirements of Government Code section 66323(a)(1)-(4).

Specifically, effective January 1, 2025, the only standards that can be applied to statewide exemption ADUs will be those that are within Government Code Section 66323 related mainly to setbacks, height, and floor area. The currently proposed ordinances were under review by the Planning Commission during the same time frame as this state law was being approved, and, therefore, given that the City needed to permanently adopt the revisions made in urgency ordinances 2022-22 and 2023-01 before those urgency ordinances expired, there was not time to incorporate those changes required by the new state law. Incorporating those changes into the current ordinance would be a substantive change that would require the ordinance to go back to Planning Commission before returning to City Council for a new first and second reading. The currently proposed ordinance makes changes that are related to Urgency Ordinances 2022-22 and 2023-01 and are required to be in effect in December of this year. Therefore, to keep the City’s ADU regulations in conformance with state law in these different ways, staff recommends taking the following approach:

1. First, move forward with a second reading of this ordinance to stay on track with permanently adopting the changes made by the previous urgency ordinances;

2. Then, take a new ordinance related to SB 1211 separately to Planning Commission in November and then to City Council in December for a first reading and also separately as an urgency ordinance to ensure it is in place before January 1st to remain consistent with state law. The second reading would take place early in 2025 to permanently adopt the changes associated with SB 1211.

19.2 In addition, the City received a comment letter from the California Housing Defense Fund dated October 10, 2024. Many of the comments in this letter relate to what standards can and cannot be applied to statewide exemption ADUs. Staff had worked closely with the state Department of Housing and Community Development (HCD) over the last few months. However, in light of the new state law, many of the Housing Defense Fund letter’s comments regarding statewide exemption ADUs will be legally accurate effective January 1, 2025 and will be addressed through the subsequent ordinance as described above. The letter also includes a comment about owner occupancy legislation. Staff has sought input from HCD on this issue, and staff is aware of conflicting guidance that HCD has offered regarding this issue. Staff continues to seek clarity from HCD regarding their position and will, at the Council meeting, share any updated information received from HCD on this issue. A more detailed analysis of the Housing Defense Fund’s comments and staff’s responses is attached.

Should this second reading be approved by the City Council, the ordinances go into effect in 30 days. For the portions of the city within the Coastal Zone, the changes made by the LCP amending ordinance will go into effect once approved by the Coastal Commission. The attached resolution directs the City Manager to submit the LCP amending ordinance to the Coastal Commission for approval.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed amendments are exempt from CEQA pursuant to Section 15183 as a project consistent with the General Plan for which an EIR was certified. Creation of objective standards related to natural resources such as slopes, heritage trees, watercourses and wetlands, and other sensitive habitats are consistent with existing regulations in the Zoning Ordinance and General Plan and involve the type of review that was considered in the General Plan EIR. Further, these amendments are largely made to comply with applicable state laws.

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 proposed changes to ADU regulations support the HiAP approach as these revisions support the creation of both rental and ownership ADUs that are typically more affordable by nature, allow for new types of ownership housing, and can provide seniors with an additional option for aging in place. The changes also support streamlined production of ADUs that create new infill housing units, which is an efficient and sustainable use of land. Therefore, the proposal is consistent with the three HiAP pillars.

FISCAL IMPACT: Proposed updates to clarify and streamline ADU regulations and to ensure continued consistency with state law may result in reduced staff time for permit application review, improving the efficiency of Planning services and thus reducing expenses. Creating a new option for mapping ADUs and their associated primary dwellings as condominiums may result in more permit applications that would generate additional revenue in the form of permit fees, though those fees are structured to cover staff costs associated with such reviews. Reduced permitting fees associated with not requiring a tentative parcel map approval for ADU condominium projects resulting in four or fewer condominium lots would decrease the potential revenue per project but could lower the barrier to obtaining permits, resulting in more permit applications and thus more revenue. Additional property tax revenue associated with new

19.3 housing units would be counteracted by additional costs associated with providing services to the new residents.

Prepared By:

Clara Stanger
Senior Planner
Matt VanHua
Principal Planner
Submitted By:

Lee Butler
Director of Planning &
Community Development
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. 2024-17 - ADU REGULATIONS AMENDMENT LCP - TRACK CHANGES.DOCX

2. 2024-17 - ADU REGULATIONS AMENDMENT LCP - CLEAN.DOCX

3. 2024-18 - ADU REGULATIONS AMENDMENT NON-LCP - TRACK CHANGES.DOCX

4. 2024-18 - ADU REGULATIONS AMENDMENT NON-LCP - CLEAN.DOCX

5. RESOLUTION.DOCX

6. MATRIX RESPONDING TO OCTOBER 10, 2024 LETTER FROM CALIFORNIA HOUSING DEFENSE FUND.DOCX

19.4 ORDINANCE NO. 2024-XX

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

CALIOFORNIA 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.)
WHEREAS, accessory dwelling units contribute needed housing to the community’s housing stock and provide housing for family members, students, the elderly, in-home health care providers, the disabled, and others within existing neighborhoods, and homeowners who create accessory dwelling units may benefit from added income and an increased sense of security; and WHEREAS, at its December 13, 2022 meeting, the City Council approved Urgency Ordinance 2022-22, amending accessory dwelling unit regulations in the Santa Cruz Municipal Code to comply with implementation deadlines set by state laws AB 2221 and SB 897; and WHEREAS, at its January 24, 2023 meeting, the City Council extended the urgency ordinance through the end of 2024 with Ordinance 2023-01; and WHEREAS, amendments made by the urgency ordinance are now codified through a formal ordinance required to be approved prior to the end of 2024, thus rescinding the urgency ordinance; and
WHEREAS, in 2023, AB 976 (Ting) was signed into law, removing owner-occupancy requirements for properties with accessory dwelling units for any accessory dwelling unit created in 2025 and in perpetuity thereafter; and

19.5 ORDINANCE NO. 2024-XX
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
WHEREAS, on February 6, 2024, the California Department of Housing and Community Development (HCD) sent a letter to the Department of Planning and Community Development detailing a review of the City’s accessory dwelling unit regulations and requiring several corrections to ensure ongoing compliance with state law.

WHEREAS, additional clarifications are needed to the accessory dwelling unit regulations in the Santa Cruz Municipal Code; and
WHEREAS, on August 15, 2024, the Department of Planning and Community Development held a community meeting to present proposed modifications to local accessory dwelling unit regulations and solicited feedback from the public; and WHEREAS, at its September 5, 2024 meeting, the Santa Cruz Planning Commission reviewed the proposed additions and modifications to the Santa Cruz Municipal Code and found that the public necessity, and the general community welfare, and good zoning practice shall be served and furthered; and that the proposed amendments are in general conformance with the principles, policies and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan; and
WHEREAS, at its September 5, 2024 meeting, the Santa Cruz Planning Commission considered the additions and modifications to the Santa Cruz Municipal Code as modifications to the Local Coastal Program and found that (1) the proposed amendment is deemed to be in the public interest; (2) the proposed General Plan and/or Local Coastal Program amendment is consistent and compatible with the rest of the General Plan and LCP and any implementation programs that may be affected; (3) the potential impacts of the proposed amendment have been assessed and have been determined not to be detrimental to the public health, safety, or welfare; and (4) the proposed amendment has been processed in accordance with the applicable provisions of the California Government Code and the California Environmental Quality Act (CEQA); and WHEREAS, at its September 5, 2024 meeting, the Santa Cruz Planning Commission passed a motion that recommended the City Council approve the proposed additions and amendments as well as any additional changes needed to comply with state ADU law; and WHEREAS, the proposed amendments and additions to the Santa Cruz Municipal Code fall within the analyzed development potential in the City of Santa Cruz’s existing 2030 General Plan Environmental Impact Report using the existing zoning and General Plan and, therefore, pursuant to California Code of Regulations, Title 14, section 15183 of the California Environmental Quality Act (CEQA) Guidelines, no further environmental review under the CEQA is required.

19.6 ORDINANCE NO. 2024-XX
BE IT ORDAINED By the City of Santa Cruz as follows:

Section 1. Section 24.04.095 of Chapter 24.04 of the Santa Cruz Municipal Code regarding Notice of Administrative Coastal Permit for Accessory Dwelling Units is hereby added to read as follows:

24.04.095 NOTICE OF ADMINISTRATIVE COASTAL PERMIT FOR ACCESSORY

DWELLING UNITS
The public shall be provided notice of an administrative coastal permit application for an accessory dwelling unit as required by this section as well as any other noticing required by Section 24.08.200 et seq.

1. Within 10 calendar days of accepting an application for administrative approval of a coastal permit for an accessory dwelling unit, and at least 14 days before a decision is made on the permit application, the city shall provide notice of pending application.

2. The notice shall include the following information:
a. Project Information. The name of the applicant; the city’s project case number assigned to the application; a general explanation of the matter to be considered; a general description, in text and/or diagram, of the location of the property that is subject to the coastal permit;
b. Statement on Environmental Document. If a negative declaration, mitigated negative declaration, environmental impact report (EIR) has been prepared for the project, or if the project has been determined to be exempt, in compliance with the provisions of the California Environmental Quality Act (CEQA) and the city’s Environmental Guidelines, the notice shall include a statement that the decision will also include approval of the environmental determination; c. The date of filing of the application;
d. A statement that the development is within the coastal zone and requires administrative coastal permit approval;
e. A statement of whether or not the coastal permit is appealable; and f. The procedures for appeal to the Coastal Commission, if applicable.

3. Notices shall be mailed as described in Section 24.04.100.(a)1.

Section 2. Section 24.04.130 of Chapter 24.04 of the Santa Cruz Municipal Code regarding Decision-Making Body With Final Authority on Application Approval is hereby amended to read as follows:

24.04.130 DECISION-MAKING BODY WITH FINAL AUTHORITY ON APPLICATION

APPROVAL
The following table indicates the decision-making body who can approve, deny or conditionally approve an application, whether or not a public hearing is required, and the bodies to which appeals can be made:

1. The planning commission and city council may refer certain aspects of any application to the zoning administrator for final action.

19.7 ORDINANCE NO. 2024-XX

2. The zoning administrator may refer any of the matters on which he/she is authorized to act to the planning commission or historic preservation commission.

3. Recommendations for approval on General Plan matters and Zoning Ordinance text and map amendments shall require a majority vote of the planning commission; all other actions shall require a majority of the hearing body present at the meeting.

Public Hearing Requirement and Decision-Making
Body Which Can Approve an Application
No
Public
Hearing
Public Hearing Permits/Actions4
Action Recommendation Action
Appeal Bodies
(in order)
Coastal Permit ZA
(ADU1)
ZA1 CPC/CC/CCC1
Administrative Use Permit:

Temporary uses, variations to
parking design requirements and
number of spaces, low risk alcohol
outlets, and half baths in accessory
buildings

ZA CPC/CC
Administrative Use Permit:

Variations to parking design
requirements or variations to number
of required spaces

ZA CPC/CC/CCC
Other uses as listed by individual
zoning districts as requiring an
Administrative Use Permit

ZA CPC/CC
Conditional Fence Permit ZA ZA CPC/CC
Slope Regulations Modifications
(Variance) in the Coastal Zone CPC CC
Slope Development Permit (on or
within 20 feet of a 50% or greater
slope) outside the Coastal Zone

ZA CPC/CCC
Slope Regulations Modifications
(Design Permit) in the Coastal Zone ZA CPC/CC
Slope Development Permit (on or
within 20 feet of a slope greater than
or equal to 30% and less than 50%)
outside the Coastal Zone

ZA CPC/CC
Design Permit ZA CPC/CC

19.8 ORDINANCE NO. 2024-XX
Public Hearing Requirement and Decision-Making
Body Which Can Approve an Application
No
Public
Hearing
Public Hearing Permits/Actions4
Action Recommendation Action
Appeal Bodies
(in order)

1. Substandard lots: new two-story
structures and second-story additions
with a single-family residential use,
excluding ADUs

ZA CPC/CC

2. Large homes per
Section 24.08.450 ZA CPC/CC

3. Wireless telecommunications
facilities ZA ZA CPC/CC

4. New structures or improvements
to existing structures in the WCD
Overlay which are exempt or
excluded from coastal permit
requirements

ZA CPC/CC

5. New structures or improvements
to existing structures in the WCD
Overlay which require a coastal
permit

ZA CPC/CC

6. Residential development in R-L,
R-M, or R-H zone districts
conforming to all standards of
Section 24.12.185

ZA CPC/CC

7. Mixed-use or residential
development not within the R-L, RM, or R-H zone districts with no more than 50 dwelling units and
conforming to all standards of
Section 24.12.185.

ZA CPC/CC

8. Mixed-use or residential
developments not within the R-L, RM, or R-H zone districts with 51 dwelling units or more and
conforming to all standards of
Section 24.12.185

ZA CPC/CC

9. Mixed-use or residential
development not within the R-L, RM, or R-H zone districts with no

ZA CPC/CC

19.9 ORDINANCE NO. 2024-XX
Public Hearing Requirement and Decision-Making
Body Which Can Approve an Application
No
Public
Hearing
Public Hearing Permits/Actions4
Action Recommendation Action
Appeal Bodies
(in order)
more than 50 dwelling units and
varying from at least one and no
more than five standards of
Section 24.12.185

8. Mixed-use or residential
development that varies from six or
more standards of Section 24.12.185
CPC CC
Demolition Permit

1. Single-family residential ZA CPC/CC

2. Multifamily residential CPC CC

3. Historic demolition permit HPC CC

4. Nonresidential ZA2 ZA2 CPC/CC
General Plan Text and Map
Amendments CPC CC/CCC3
Historic Alteration Permit HPC CC
Administrative Historic Alteration
Permit ZA HPC/CC
Historic Building Survey:

Building designation, deletion HPC CC
Historic District Designation HPC/CPC CC
Historic Landmark Designation HPC CC
Mobile Homes (Certificate of
Compatibility) ZA CPC/CC
Mobile Home Park Conversion CPC CC
Outdoor Extension Areas per
Section 24.12.192 ZA CPC/CC
Planned Development Permit CPC CC
Project (Major) Modification Hearing by ZA or body
approving application
Appeal to next
highest
body(ies)
Project (Minor) Modification ZA CPC/CC

19.10 ORDINANCE NO. 2024-XX
Public Hearing Requirement and Decision-Making
Body Which Can Approve an Application
No
Public
Hearing
Public Hearing Permits/Actions4
Action Recommendation Action
Appeal Bodies
(in order)
Relocation of Structures Permit ZA CPC/CC
Revocation Permit Hearing by ZA or body
approving application
Appeal to next
highest
body(ies)
Sign Permit ZA CPC/CC
Special Use Permit CPC CC
Variance ZA CPC/CC
Watercourse Variance CPC CC
Watercourse Development Permit ZA CPC/CC
Zoning Ordinance Text and Map
Amendments:

Amendments recommended by CPC CPC CC/CCC3
Amendments not recommended by
CPC CPC CC/CCC3
CCC = California Coastal Commission CC = City Council CPC = City Planning Commission
HPC = Historic Preservation Commission ZA = Zoning Administrator 1 For projects seaward of the mean high tide line, and in the case of appealable actions, the California Coastal Commission shall be the decision-making body which can finally approve an application. In the coastal zone, all proposed accessory dwelling units that require a coastal permit shall be processed in the manner described in Chapter 24.04 and Section 24.08.200 et seq. (including in terms of public noticing and process for appeal to the Coastal Commission) except that no public hearing shall be required. A coastal permit for an accessory dwelling unit is not locally appealable. An appeal of such a coastal permit within the appealable area of the coastal zone shall be made directly to the California Coastal Commission. In addition to all other applicable LCP requirements, standards for ADUs in the coastal zone are specified in Section 24.12.140.2.
2 Such permits shall be issued administratively, without a public hearing, unless a cultural resources evaluation, prepared by a qualified consultant as determined by the zoning

19.11 ORDINANCE NO. 2024-XX
Public Hearing Requirement and Decision-Making
Body Which Can Approve an Application
No
Public
Hearing
Public Hearing Permits/Actions4
Action Recommendation Action
Appeal Bodies
(in order)
administrator, determines that the building or structure is eligible for listing on the city historic building survey.
3 California Coastal Commission in case of CLUP policy, CLIP elements. 4 At a regularly scheduled meeting, a majority of the council may take an action to direct any project or amendment to be called from a lower hearing body prior to a final action or during an appeal period in accordance with Section 24.04.175(2). 5 An appellant must exhaust all local appeals before an appeal can be made to the California Coastal Commission, unless the coastal permit is processed concurrently with other permits pursuant to Section 24.04.150 (for example, a design permit, a use permit, etc.). Because the city charges an appeal fee pursuant to Section 24.04.070 for appeals of coastal permits processed concurrently with other permits, Section 30603(c) of the Coastal Act does not require an appellant to exhaust all local appeals before a project can be appealed to the California Coastal Commission. The city does not charge a fee for local appeals of standalone coastal permits (i.e., where the coastal permit is not accompanied by any other permits).

Section 3. Section 24.04.186 of Chapter 24.04 of the Santa Cruz Municipal Code regarding Appeals to Coastal Commission is hereby amended to read as follows:

24.04.186 APPEALS TO COASTAL COMMISSION.

1. Coastal permits fall into either of two categories: appealable or nonappealable to the Coastal Commission.

The determination of whether a project is appealable or nonappealable, or categorically exempt, shall be made by the zoning administrator at the time the application is filed. This determination is appealable pursuant to the provision of California Coastal Commission Local Coastal Program Regulations Section 13569.

2. Coastal permits are only appealable after all city appeals are exhausted except for appeals by members of the Coastal Commission, who may appeal the permit directly to the California Coastal Commission. The following coastal permits have no local appeal process, and any appeal shall be

19.12 ORDINANCE NO. 2024-XX
made directly to the California Coastal Commission: coastal permits for small cell facilities in the public right-of-way and in the portion of the Coastal Zone Overlay zone district where city decisions can be appealed to the California Coastal Commission, and coastal permits for accessory dwelling units in the portion of the Coastal Zone Overlay zone district where decisions can be appealed to the California Coastal Commission. No fee shall be charged for coastal permit appeals. a. Only the following coastal permit applications are appealable to the Coastal Commission:
(1) Any major public works project or facility. The phrase “major public works project or energy facility” is the same as used in Public Resources Code Section 30603(A)(5) and these regulations shall mean any proposed public works projects as defined by Coastal Commission Regulations Section 13012, or “energy facility” as defined by Public Resources Code Section 13012 of the Coastal Commission Regulations, or “energy facility” as defined by Public Resources Code Section 30107 and exceeding fifty thousand dollars in estimated cost of construction. (2) Development approved between the sea and the first public road paralleling the sea or within three hundred feet of the inland extent of any beach or the mean high tide line of the sea where there is no beach, whichever is the greater distance. (3) Developments approved not included within subsection (2)(a)(2), located on tidelands, submerged lands, public trust lands, within one hundred feet of any wetland, estuary, stream, or within three hundred feet of the top of the seaward face of any coastal bluff.
(a) Subsections (a)(2) and (a)(3) are shown as the SP-O Shoreline Protection Overlay zone on the zoning map.
(4) Developments approved that are located in a sensitive coastal resource area. b. An appeal may be filed only by the applicant, an aggrieved person as defined by this title, or any two members of the Coastal Commission. An appeal must be filed in accordance with the appeal procedures contained in this title, except that appeals by any two members of the Coastal Commission do not require exhaustion of local appeals and may be made following the decisions of the reviewing body, zoning administrator, zoning board or city council.

However, commissioner appeals taken prior to exhaustion of all local appeals shall be transmitted to the appropriate local appellate body and the appeal to the commission may be suspended pending a decision on the merits by that local appellate body. If the decision of the local appellate body modifies or reverses the previous decision, the commissioners shall be required to file a new appeal from that decision.

19.13 ORDINANCE NO. 2024-XX
c. Grounds for appeal, pursuant to subsection (2)(a)(2), shall be limited to an allegation that the development does not conform to standards set forth in the certified Local Coastal Program or the Public Access Policies set forth in the California Coastal Act. d. The grounds for an appeal of a denial of a permit pursuant to subsection (2)(a)(1) shall be limited to an allegation that the development conforms to the standards set forth in the certified Local Coastal Program and the public access policies set forth in the California Coastal Act.
e. Appeals to the Coastal Commission pursuant to this section must be filed with the Coastal Commission on forms prescribed by and available from the Coastal Commission.

Section 4. Section 24.08.440 of Chapter 24.08 of the Santa Cruz Municipal Code regarding Standards for Substandard Residential Lot Development is hereby amended to read as follows:

24.08.440 STANDARDS FOR SUBSTANDARD RESIDENTIAL LOT DEVELOPMENT Whenever a project associated with a single-family residential use is proposed for a substandard residential lot, as defined in Section 24.22.520, applications for design review shall be approved if the findings set forth in Section 24.08.430 can be made and proposed buildings, structures, landscaping and other components of the site plan conform to the following additional criteria:

1. The maximum allowable lot coverage for structures shall be forty-five percent, except that lot coverage shall be waived to the extent that it physically precludes the construction of an accessory dwelling unit up to eight hundred square feet in floor area. The lot coverage of an accessory dwelling unit shall not be included in the calculation of all other structures’ maximum allowable lot coverage. Lot coverage shall include the footprints of the first floor, garage and other accessory buildings (attached and detached), decks and porches (greater than thirty inches in height and not cantilevered), and any second-story cantilevered projection (enclosed or open) beyond two and one-half feet. Decks under thirty inches in height or fully cantilevered with no vertical support posts do not count toward lot coverage for this purpose. Second-story enclosed cantilevered areas that project less than thirty inches from the building wall do not count toward lot coverage. For such areas that project more than thirty inches from the building wall, only the floor area that projects more than thirty inches shall be counted toward lot coverage.

2. The floor area of a building’s second story shall be limited to one hundred percent of the floor area of the building’s first floor if the floor area of the building’s first story constitutes thirty percent or less of the net lot area.

3. The floor area of a building’s second story shall not exceed fifty percent of the floor area of the building’s first story if the building’s first story has greater than thirty percent lot coverage up to a maximum of forty-five percent lot coverage.

4. The floor area of a building’s second story shall be limited to fifty percent of forty-five percent lot coverage if the building’s first story has greater than forty-five percent lot coverage.

19.14 ORDINANCE NO. 2024-XX

5. New structures shall be consistent with the scale of structures on adjacent lots and generally be compatible with existing surrounding structures.

6. New structures shall be sited in ways which avoid causing substantial change in the pattern of existing building projections along streets. Continuous long, parallel abutting walls on narrow side yards shall be avoided.

7. Spacing of buildings and overall siting of structures shall maximize the potential for solar access to each lot.

8. Landscaping shall be required at least for front yard areas and shall be used to screen parking from street.

9. Structures shall incorporate methods to lessen the impact of garages on a street facade.

Section 5. Section 24.08.450 of Chapter 24.08 of the Santa Cruz Municipal Code regarding Guidelines for Large Homes in Single-Family Areas is hereby amended to read as follows:

24.08.450 GUIDELINES FOR LARGE HOMES IN SINGLE-FAMILY AREAS.

1. Purpose. The intent of the design permit findings for large-scale residential buildings is to protect existing neighborhood character and identity by development guidelines that promote a variable streetscape by requiring a variety of building massing and placements, and also by maintaining existing neighborhood patterns to limit obtrusive visual impacts on nearby properties.

2. Determination of Large Home. Single-family homes over four thousand square feet in R-1-10 zoning districts, three thousand five hundred square feet in R-1-7 zoning districts, and three thousand square feet in R-1-5 zoning districts are considered “large homes.” The square footage of the home shall be calculated based on the gross square footage of the main structure, including any attached and detached garages or other accessory structures, not including accessory dwelling units. For properties with detached garages in the rear one-half of the lot, a credit shall be given for the size of the garage up to four hundred twenty square feet, which shall not be counted toward the square footage of the home. Detached garage square footage over four hundred twenty square feet shall be included in the square footage of the home. The square footage of a junior accessory dwelling unit shall be counted as part of the home. The square footage of accessory dwelling units shall not be counted as part of the home.

3. Application Requirements. In addition to the standard requirements of the R-1 district, a survey of buildings within one hundred feet of the property on both sides of the street, which identifies front and side yard setbacks, building floor area, building heights, driveway widths, garage locations, and architectural style shall be submitted with the project application.

4. Design Criteria. There is no particular architectural “style” required for residential structures, but the focus should be on the development of a high quality residential environment. In general, the architecture should consider compatibility with surrounding character, including harmonious building style, form, size, color, material, and roofline. Individual dwelling units should be

19.15 ORDINANCE NO. 2024-XX
distinguishable from one another. Also projects should comply with design standards established in relevant specific area plans such as the Western Drive Master Plan, Seabright Area Plan and the Moore Creek Access and Management Plan and others that apply. a. Facade and Roof Articulation. The articulation of facades and the massing of structures give them richness and scale. Long uninterrupted exterior walls shall be avoided on all structures. All structure walls shall have “relief” to create an interesting blend with landscaping, structures, and the casting of shadows. The integration of varied texture, relief, and design accents on building walls can enhance the architecture.

For sloped roofs, both vertical and horizontal articulation is encouraged. Roof lines should be representative of the design and scale of the units under them. Roof articulation may be achieved by changes in plane of no less than two feet six inches and/or the use of traditional roof forms such as gables, hips, and dormers. Flat roofs and A-frame type roofs are discouraged unless appropriate to the architectural style. b. Varied Structure Design.
(1) Design of structures shall be varied in tract developments to create variety and interest. A significant difference in the massing and composition (not just finish materials) of each adjacent house should be accomplished. One design shall not be repeated more frequently than each fourth house.
(2) New development in existing neighborhoods should incorporate distinctive architectural characteristics of surrounding development, for example: window and door detailing, decoration, materials, roof style and pitch, building height, finished-floor height, porches, bay windows, and the like.
c. Scale.
(1) Form and scale should relate to the use of the structure as a single-family residence. Also, the scale of structures shall be at a human scale so as not to overwhelm or dominate their surroundings. New structures shall be consistent with the scale of structures on adjacent lots and generally be compatible with existing surrounding structures.
(2) New development should continue the functional site relationships of the surrounding neighborhoods. As an example, common patterns found in the surrounding neighborhoods should be repeated, such as single-story dwellings, entries facing the street, front porches and parking at the rear.

19.16 ORDINANCE NO. 2024-XX
d. Setbacks.
(1) New projects shall provide variable front setbacks, with a minimum of five-foot differentiation provided between adjacent lots.
(2) New single-family development in existing neighborhoods shall be integrated with the housing units in the adjacent area. Site setbacks of infill residential projects shall be either:
(a) Equal to the average setback of all residences on both sides of public streets within one hundred feet of the property lines of the new project; or (b) Equal to the average of the two immediately adjacent residences.

In cases where averaging between two adjacent existing residences is chosen, the new residence may be averaged in a stepping pattern between the setbacks of adjacent residences, or the new residence’s entire frontage may be built on the average setback line. e. Garages.
(1) Unit design is encouraged to limit the visual impact of automobile parking by developing detached garages in the rear yard or significantly limiting the garage’s lineal frontage of a structure to forty percent of the structure’s overall width. (2) Garages should have a single-story mass if developed at the front of a structure and provide an architectural transition if there is two-story massing.

19.17 ORDINANCE NO. 2024-XX
f. Grading.
(1) Development should relate to the natural land forms and surroundings and minimize grading by following the natural contours as much as possible. Graded slopes should be rounded and contoured to blend with the existing terrain. Structures built on slopes or hills should be sensitively designed to minimize visual impact by stepping structures to match topography.
(2) Significant natural vegetation should be retained and incorporated into the project whenever possible. Landscaping shall be required for the front yard areas.

Section 6. Section 24.08.810a of Chapter 24.08 of the Santa Cruz Municipal Code regarding Procedure for Slope Development Permit (Applies In the Coastal Zone) is hereby amended to read as follows:

24.08.810a PROCEDURE.

Projects requiring an exception to slope standards established by Section 24.14.030a must apply for a slope modification permit except for approval of a statewide exemption accessory dwelling unit that waives the distance from slope standard pursuant to Section 24.16.141.11. This permit may be granted by the zoning administrator without a hearing if the project is no closer than ten feet from the top edge of a thirty percent slope and is consistent with the findings in Section

24.08.820a, unless the slope modification permit is accompanied by an application which must be heard by a higher body. Should a project be closer than ten feet to a thirty percent slope, then it must be considered at a public hearing by the zoning board as a variance which must also be consistent with the findings in Section 24.08.820a.

Section 7. Section 24.08.820a of Chapter 24.08 of the Santa Cruz Municipal Code regarding Findings Required for Slope Development Permit (Applies In the Coastal Zone) is hereby amended to read as follows:

24.08.820a FINDINGS REQUIRED
A slope modification permit may be granted when all of the following applicable conditions are found:

1. Measures have been included within the design of the project to mitigate impacts on environmental constraint areas identified in the Environmental Quality Element of the General Plan and the Local Coastal Program.

2. Landscaping of an appropriate type, size and quality is proposed to mitigate any adverse environmental effect.

3. Usable open space is proposed in an amount equal to that normally required.

19.18 ORDINANCE NO. 2024-XX

4. To conform with existing land forms and topography, streets, buildings, and other man-made structures have been designed by a registered civil engineer or other qualified professional.

5. Adequate fire safety measures as required by the city fire department have been incorporated into the design of the proposed development, when located in a designated fire hazard area.

6. The proposed project employs architectural and design elements which in total serve to reduce the mass and bulk of structures. Such elements may include:
a. Multiple floor levels which follow natural slopes;
b. Multiple roof lines;
c. Decks and balconies;
d. Foundation types such as poles, piles, or stepped levels which minimize cut and fill and need for retaining walls;
e. Fence lines, walls, and other features which blend with the terrain rather than strike off at an angle against it.

7. If a project proposed for construction is in a designated landslide area, before granting a modification to Section 24.14.030a(1)(d), findings must be made that mitigation measures necessary to fulfill the purpose of this part have been incorporated into project design, based on the project’s environmental review.

Section 8. Section 24.08.2140 of Chapter 24.08 of the Santa Cruz Municipal Code regarding Exemptions from Watercourse Development Permit is hereby amended to read as follows:

24.08.2140 EXEMPTIONS.

Certain types of projects that clearly would not impact riparian resources and support the goals of the City-Wide Creeks and Wetlands Management Plan are exempted from the watercourse development permit requirements (in the coastal zone, the following list of projects are exempt only if the criteria of Section 24.08.230.1 regarding coastal permit exemptions are met). Such projects should incorporate applicable best management practices in the project design. In situations where it is unclear whether a project is eligible for an exemption under this section, the determination would be made by the zoning administrator in accordance with the goals of the CityWide Creeks and Wetlands Management Plan. The following projects are eligible for an exemption:

1. Development and structural improvements to include the following:

19.19 ORDINANCE NO. 2024-XX
a. Any development on parcels that have been identified within a Category “C” watercourse in the City-Wide Creeks and Wetlands Management Plan. b. Development projects within a Category “B” watercourse located outside of the designated riparian corridor and development setback area (in the remaining management area).
c. Any development adjacent to a closed culverted section of a watercourse. d. Any development on a parcel that either:
i. Has an established road right-of-way between the subject parcel and the watercourse (where the development would occur); or
ii. Has a separate parcel with legal development that is located between the subject parcel and the watercourse (where the development would occur). e. Interior remodeling of an existing legal structure within the existing structure footprint. f. Repair and maintenance of existing legal structures. g. Demolition of existing structures outside the riparian corridor, in accordance with city demolition regulations; provided, that no mechanized machinery is utilized and no disturbance occurs within the riparian corridor.
h. Reconstruction of a damaged nonconforming structure where nonconformance only relates to watercourse setbacks, provided applicable watercourse development standards are implemented.

2. Exterior improvements, to include the following:
a. Exterior treatments such as painting, roofing, surface treatments, window replacement, etc., that do not increase the density or intensity of land use, or increase surface coverage.
b. Exterior safety lighting in the development setback area such as low-level walkway lighting, motion detector security lighting, driveway lighting, and entry lighting that is hooded and directed downward, away from the watercourse. Lighting shall be prohibited within the designated riparian corridor.
c. Open-style fencing (e.g., wire strand or split rail) that permits the free passage of wildlife limited to the outer edge of the riparian corridor. Fencing must otherwise meet the regulations in Section 24.12.160.
d. Installation of pervious surfaces (outside of the riparian corridor), including at-grade decks, patios, and walkways, when the total square footage is less than twenty-five percent of the development setback area; provided, that the pervious surfaces meet those requirements specified in the Watercourse Development Standards. The total percentage allowed includes both existing and new surfaces.

3. Landscaping and vegetation, to include the following:
a. Landscaping with non-native vegetation using noninvasive species, within the development setback area, as recommended in the City-Wide Creeks and Wetlands Management Plan.
b. Minor vegetation removal as defined in Section 24.08.2110, except for mature eucalyptus trees in known monarch butterfly habitat areas. c. Thinning of riparian vegetation within a flood or high fire hazard area, except for mature eucalyptus trees in known monarch butterfly habitat areas, when required by the fire department for public safety with review and approval of a fire-vegetation management plan or when required by the public works department for flood protection maintenance with review and approval of a maintenance plan.

19.20 ORDINANCE NO. 2024-XX
d. Removal of tree(s) that are hazardous or likely to have an adverse effect upon the structural integrity of a building, utility, or public right-of-way, or a tree that has the physical condition of health such as disease or infestation which warrants alteration or removal, in accordance with Chapter 9.56 of this code and with a plan prepared by a qualified professional.
e. Removal of impervious surfaces outside of the riparian corridor. f. Mowing and grazing on public lands (outside of the riparian corridor in the Coastal Zone), consistent with an adopted parks or fire management plan.

4. Roads, public facilities and utilities, to include the following:
a. Road maintenance of existing legal public roads, private roads and driveways (no expansion or improvements).
b. Construction of public trails and bridges on public lands, consistent with an adopted parks master plan or management plan, including the location and siting of trails and bridges.
c. Installation and improvements to non-structural BMPs within the development setback area.
d. Repair, maintenance, or minor alteration of existing public utility, drainage, flood control, and water storage and provision facilities, including pumps and other appurtenant structures where there is no or negligible expansion of use.

5. Other projects, to include the following:
a. Projects that concurrently are reviewed and approved by another authorizing permitting agency (CDFG, NOAA, USFWS or ACOE) for maintenance, flood protection, restoration or enhancement of a natural resource where the regulatory process involves procedures for protection of the environment, provided proof of permit approval is submitted to the planning director.
b. Removal of fish passage barriers and installation of in-stream aquatic habitat enhancement structures, in accordance with a plan for said activities prepared by a qualified professional and approved by the planning director. c. Interpretative signage designed to provide information about the value and protection of the resource that is limited to the outer edge of the riparian corridor, and must meet other city sign regulations.
d. Installation of new and maintenance of existing water flow gauges. e. Water quality testing.
f. Continued operation and maintenance of existing cemetery plots.

6. A statewide exemption accessory dwelling unit, as defined in Section 24.16.125.9, that is approved with a waiver of the required distance from a watercourse or wetland as described in Section 24.16.141.11. Despite the statement in section 24.08.2140 that exemptions do not apply to projects that are not exempt from coastal permit requirements, in the coastal zone, this exemption applies even if the statewide exemption accessory dwelling unit requires approval of a coastal permit; however, in this case, the statewide exemption accessory dwelling unit shall be consistent with the development standards of the Citywide Creeks and Wetlands Management Plan to the extent that it shall not be required to be moved.

Section 9. Section 24.08.2200 of Chapter 24.08 of the Santa Cruz Municipal Code regarding Purpose of Watercourse Variance is hereby amended to read as follows:

19.21 ORDINANCE NO. 2024-XX

24.08.2200 PURPOSE.

The purpose of this part is to allow variation from the watercourse setbacks or development standards as outlined in Sections 24.08.2130 and 24.08.2180. A watercourse variance shall not be required for a statewide exemption accessory dwelling unit approved with a waiver of a watercourse setback pursuant to Section 24.16.141.11.

Section 10. Section 24.10.250 of Chapter 24.10 of the Santa Cruz Municipal Code regarding District Regulations for the R-S Residential Suburban District is hereby amended to read as follows:

24.10.250 DISTRICT REGULATIONS.

1. General.

Classification or Type of Use
Provision Single-Family Residential
RS-10A RS-5A RS-2A RS-1A
a. Height of Buildings
(Maximum)
• Principal: (stories and feet) 2 & 30 2 & 30 2 & 30 2 & 30 • Accessory: (stories and feet) 1 & 20 1 & 20 1 & 20 1 & 20 b. Lot area (acre) 10 acres 5 acres 2 acres 1 acre
c. Lot width (feet) 250 200 150 100
d. Front yard (feet) 40* 40* 40* 40*
e. Rear yard (feet) 30 30 30 30
f. Side yards (feet) 25 20* 20* 15*
* For any attached or detached garage or carport with doors or entrances fronting on a front or exterior side property line, the setback shall be a minimum of twenty feet from said property line or the setback required for the district, whichever is greater.

2. Dwellings per Lot. Unless otherwise provided, there shall be only one dwelling per lot.

3. Design Guidelines. Development guidelines adopted by the city shall be used as applicable to provide site design standards to augment the general district regulations in the development of property in this district.

4. The minimum distance between buildings on the same lot shall be ten feet between main buildings; six feet between main buildings and accessory buildings; and six feet between accessory

19.22 ORDINANCE NO. 2024-XX
buildings; and the distance between accessory dwelling units and other buildings shall be consistent with standards set forth in Chapter 24.16, Part 2.

Section 11. Section 24.10.350 of Chapter 24.10 of the Santa Cruz Municipal Code regarding District Regulations for the R-1 Single Family Residence District is hereby amended to read as follows:

24.10.350 DISTRICT REGULATIONS.

1. General.

Classification or Type of Use
Single-Family Residential
Provision R-1-10 R-1-7 R-1-5
a. Height of Buildings (Maximum)
• Principal: (stories and feet) 2 1/2 & 30 2 1/2 & 30 2 1/2 & 30 • Accessory: (stories and feet) 1 & 15 1 & 15 1 & 15
• Single-story structure 1 & 19 N/A N/A
b. Minimum lot area (net) (square
feet)
10,000 7,000 5,000
c. Minimum lot width (feet) 70 70 50
d. Front yard (feet) 25* 20* 20*
e. Rear yard (feet) 30 25 20
f. One side yard (feet) 10 7* 5*
g. Both side yards – total
• Interior lot (feet) 20 14 10
• Exterior lot (feet) 22 16 13
h. Exterior side yard or end (feet) 12* 9* 8*
i. Maximum building area without
design permit
4,000 (See Section 24.08.450 for
findings)
3,500 3,000
* For any attached or detached garage or carport with doors or entrances fronting on a front or exterior side property line, the setback shall be a minimum of twenty feet from said property line or the setback required for the district, whichever is greater.

2. Dwellings per Lot. Unless otherwise provided, there shall be only one dwelling per lot.

19.23 ORDINANCE NO. 2024-XX

3. The minimum distance between buildings on the same lot shall be ten feet between main buildings; six feet between main buildings and accessory buildings; six feet between accessory buildings; and the distance between accessory dwelling units and other buildings shall be consistent with standards set forth in Chapter 24.16, Part 2.

4. Other Requirements. Other regulations which may be applicable to site design in this zone are set forth in General Site Design Standards, Chapter 24.12, Part 2, and Chapter 24.16, Part 2, Accessory Dwelling Units.

Section 12. Section 24.10.430 of Chapter 24.10 of the Santa Cruz Municipal Code regarding Use Permit Requirement for the R-L Multiple Residence – Low-Density District is hereby amended to read as follows:

24.10.430 USE PERMIT REQUIREMENT.

1. The following uses are subject to approval of an administrative use permit and may also require a design permit per Section 24.08.410:
a. Accessory buildings containing plumbing fixtures subject to the provisions of Section 24.12.140.
b. Temporary structures and uses.
c. Wireless telecommunications facilities, subject to the regulations in Chapter 24.12, Part

15. 2. The following uses are subject to approval of a special use permit and may also require a design permit per Section 24.08.410:
a. Bed-and-breakfast inns, subject to requirements in Chapter 24.12, Part 9. b. Community care facilities including daycare (except family daycare homes), retirement home, foster home, and nursing home (seven or more persons). c. Dormitories, fraternity/sorority residence halls, boardinghouses. d. Health facilities for inpatient and outpatient psychiatric care and treatment. e. Off-street parking facilities accessory to a contiguous commercial property not to exceed one hundred feet from the boundary of the site it is intended to serve. f. Noncommercial recreation areas, buildings, and facilities such as parks, country clubs, golf courses, and riding, swimming and tennis clubs.

19.24 ORDINANCE NO. 2024-XX
g. Educational, religious, cultural, public utility or public service buildings and uses; but not including corporation yards, storage or repair yards, and warehouses. h. Social halls, lodges, fraternal organizations, and clubs, except those operated for a profit.

Section 13. Section 24.10.450 of Chapter 24.10 of the Santa Cruz Municipal Code regarding District Regulations for the R-L Multiple Residence – Low-Density District is hereby amended to read as follows:

24.10.450 DISTRICT REGULATIONS.

1. General.

Dwelling Unit Type
Provision Single-Family
Detached 2 or More Units
a. Maximum height of buildings
• Principal (feet) 30 30
• Accessory (stories and feet) 1 and 15 1 and 15
b. Minimum lot area (net) (square feet) 5,000 5,500
c. Minimum lot area per dwelling unit
(net) (square feet)
2,200 (1,600 sq. ft. for 1-
bedroom/studios)
d. Minimum lot width (feet) 50 50
e. Usable open space per dwelling unit
(square feet)
– 400

2. Setback Requirements.
a. The minimum front yard setback shall be fifteen feet except that the front yard may be reduced to not less than ten feet for a portion not to exceed fifty percent of the building frontage, and providing that a total of fifteen square feet of front yard is provided for each lineal foot of total lot frontage.
b. The minimum rear yard setback shall be ten feet.
c. The minimum side yard setback shall be five feet, and five additional feet of setback for each story above the second story.

19.25 ORDINANCE NO. 2024-XX
(1) There shall be no side yard required for townhouses on interior lots, except there shall be a minimum side yard setback at the interior end of a townhouse group of five feet, or one foot of setback for each three feet of height, or portion thereof, of a structure, whichever is greater.
(2) The minimum exterior side yard setback shall be eight feet, and five additional feet of setback for each additional story above the second story. d. For any attached or detached garage or carport fronting on a front or exterior side property line, the setback shall be twenty feet from said property line. e. Minimum Distance Between Buildings on the Same Lot. Between main buildings, six feet or one foot of setback for each two feet of height of the tallest building, or portions thereof, whichever is greater; between main buildings and accessory buildings, six feet; between accessory buildings, six feet; distance between accessory dwelling units and other buildings shall be consistent with standards set forth in Chapter 24.16, Part 2. f. An existing accessory building built prior to July 1, 2014, with a valid building permit or which is a legal nonconforming structure, that has less than the required side or rear yard setback(s) may be converted into a dwelling unit to create a second unit or duplex on a property if all the requirements of the California Building Standards Code are met as well as the other development standards of the zoning district. The floor area for said second unit shall not exceed ten percent of the net lot area up to a maximum of eight hundred square feet.

If additional units are allowed on the property, all such units shall meet development standards of the zoning district.

19.26 ORDINANCE NO. 2024-XX

3. Other Requirements. Other regulations which may be applicable to site design in this zone are set forth in General Site Design Standards, Chapter 24.12, Part 2, and Chapter 24.16, Part 2, Accessory Dwelling Units.

4. All new development adjacent to a “CON – Neighborhood Conservation District” Overlay Zone shall comply with Section 24.10.4060 standards for new construction on sites abutting overlay district boundaries, to ensure compatibility with the established district.

Section 14. Section 24.10.550 of Chapter 24.10 of the Santa Cruz Municipal Code regarding District Regulations for the R-M Multiple Residence – Medium-Density District is hereby amended to read as follows:

24.10.550 DISTRICT REGULATIONS.

1. General.

Dwelling Type Provision
Duplex 3 or More Units
Maximum Height of
Buildings
Principal (feet) 30 35
Accessory (stories and
feet)
1 and 15 1 and 15
Minimum lot area (net)
(square feet)
4,400 5,500
Minimum lot area (net)
per dwelling unit
(square feet)
2,200 1,450 (1,100 sq. ft. for 1-bedroom/studios)
Minimum lot width
(feet)
50 65
Usable open space per – 400
dwelling unit (square
feet) 200 (1-bedroom/studios)*
* Open space shall be attached or aggregated in a manner that provides usable open space for all units exclusive of setbacks and other small landscape areas less than 10 feet in width.
** Existing lots of 5,500 square feet or greater with a minimum lot width of 50 feet may have 3 or more units if all other RM development standards can be met.

2. Setback Requirements.

19.27 ORDINANCE NO. 2024-XX
a. The minimum front yard setback shall be fifteen feet, except that the front yard may be reduced to not less than six feet for a portion not to exceed fifty percent of the building frontage, providing that a total of ten square feet of front yard is provided for each lineal foot of total lot frontage. Such reduction of front yard depth shall not be permitted on a corner lot, within twelve feet of any side street lot line.
b. The minimum rear setback shall be ten feet, and five additional feet of setback for each story above the second story.
c. The minimum side yard setback shall be five feet, and five additional feet of setback for each story above the second story.
d. There shall be no side yard required for townhouses, or interior lots, except there shall be a minimum side yard setback at the interior end of a townhouse group of five feet, or one foot of setback for each three feet of height, or portion thereof, of a structure, whichever is greater.
e. The minimum exterior side yard setback shall be eight feet, and five additional feet of setback for each additional story above the second story. f. Minimum Distance Between Buildings on the Same Lot. Between main buildings, six feet or one foot of setback for each two feet of height of the tallest building, or portions thereof, whichever is greater; between main buildings and accessory buildings, six feet; between accessory buildings, six feet; distance between accessory dwelling units and other buildings shall be consistent with standards set forth in Chapter 24.16, Part 2.

19.28 ORDINANCE NO. 2024-XX
g. For any attached or detached garage or carport fronting on a front or exterior side property line, the setback shall be twenty feet from said property line. h. An existing accessory building built prior to July 1, 2014, with a valid building permit or which is a legal nonconforming structure, that has less than the required side or rear yard setback(s) may be converted into a dwelling unit to create a second unit or duplex on a property if all the requirements of the California Building Standards Code are met as well as the other development standards of the zoning district. The floor area for said second unit shall not exceed ten percent of the net lot area up to a maximum of eight hundred square feet.

If additional units are allowed on the property, all such units shall meet development standards of the zoning district.

3. Other Requirements. Other regulations which may be applicable to site design in this zone are set forth in General Site Design Standards, Part 2, Chapter 24.12.

Section 15. Section 24.10.585 of Chapter 24.10 of the Santa Cruz Municipal Code regarding District Regulations for the R-H Multiple Residence – High-Density District is hereby amended to read as follows:

24.10.585 DISTRICT REGULATIONS.

1. General.

Dwelling Unit Type Provision
Duplex 3 or More Units
a. Maximum height of buildings
• Principal (feet) 30 48
• Accessory (stories and feet) 1 and 15 1 and 15
b. Minimum lot area (net) (sq. ft.) 4,000 5,000
c. Minimum lot area per dwelling unit (net) (sq.
ft.)
2,000 790
d. Minimum lot width (feet) 50 50
e. Usable open space per dwelling unit (sq. ft.) – 250
f. Lot coverage 45% 70%

19.29 ORDINANCE NO. 2024-XX
front yard may be reduced to not less than six feet for a portion not to exceed fifty percent of the building frontage, providing that a total of ten square feet of front yard is provided for each lineal foot of total lot frontage. Such reduction of front yard depth shall not be permitted on a corner lot, within twelve feet of any side street lot line. Setback requirements may not be reduced for those portions of buildings that are three stories or taller. b. The minimum rear setback shall be ten feet, or one foot of setback for each three feet of height, or portion thereof, of structure, whichever is greater. c. The minimum side yard setback shall be five feet, or one foot of setback for each three feet of height, or portion thereof, of structure, whichever is greater. d. Where a parcel abuts a public right-of-way on opposite sides of the parcel, the front yard setback requirements shall apply to the major street and the rear yard setbacks shall apply to the secondary street; however, in the case of the rear yard setback, the setback shall not be less than the average of the two adjacent lots.
e. The minimum exterior side yard setback shall be eight feet, or one foot of setback for each three feet of height, or portion thereof, of a structure, whichever is greater. f. Minimum Distance Between Buildings on the Same Lot. Between main buildings, six feet or one foot of setback for each two feet of height of the tallest building, or portions thereof, whichever is greater; between main buildings and accessory buildings, six feet; between accessory buildings, six feet; distance between accessory dwelling units and other buildings shall be consistent with standards set forth in Chapter 24.16, Part 2. g. For any attached or detached garage or carport fronting on a front or exterior side property line, the setback shall be twenty feet from said property line. h. To preserve the view to Beach Hill down Front Street, the height of the first twenty-five feet of depth along Front Street shall be limited to twenty-four feet.

3. Design.
a. The site and building design shall conform to the General Site Design Standards, Part 2, Chapter 24.12, design guidelines of any applicable area plan, and Section 24.12.185, Objective design standards for multifamily development.

Section 16. Section 24.10.608 of Chapter 24.10 of the Santa Cruz Municipal Code regarding District Regulations for the R-T(A) Subdistrict A – Medium-Density Residential is hereby amended to read as follows:

24.10.608 DISTRICT REGULATIONS.

1. General.

Dwelling Unit Type
Provision 1-Family
Detached Duplex 3 or More Units
Other
Uses
a. Maximum height of buildings
• Principal buildings (feet) 30 30 36 36

19.30 ORDINANCE NO. 2024-XX
Dwelling Unit Type
Provision 1-Family
Detached Duplex 3 or More Units
Other
Uses
• Accessory buildings (feet) 15 15 15 15
b. Minimum lot area (net) (square feet) 5,000 5,000 8,000 8,000 c. Minimum lot area (net) per dwelling unit
(square feet)
5,000 2,500 1,450 –
d. Minimum lot width (feet) 50 50 65 65
e. Usable open space per dwelling unit
(square feet)
– – 400 –

2. Setback Requirements.
a. The minimum front yard setback shall be fifteen feet or one foot of setback for each three feet of height, or portion thereof, of a structure, whichever is greater, except that the front yard may be reduced to not less than six feet for a portion not to exceed fifty percent of the building frontage, providing that a total of ten square feet of front yard is provided for each lineal foot of total lot frontage. Such reduction of front yard depth shall not be permitted on a corner lot, within twelve feet of any side street lot line. b. The minimum rear setback shall be ten feet, or one foot of setback for each three feet of height, or portion thereof, of structure, whichever is greater. c. The minimum side yard setback shall be five feet for the first story and one foot of setback for each three feet of height, or portion thereof, of structure, whichever is greater for the second story and above.
d. There shall be no side yard required for townhouses or interior lots except there shall be a minimum side yard setback at the interior end of a townhouse group of five feet or one foot of setback for each three feet of height, or portion thereof, of a structure, whichever is greater. e. The minimum exterior side yard setback shall be eight feet, or one foot of setback for each three feet of height, or portion thereof, of a structure, whichever is greater. f. Minimum Distance Between Buildings on the Same Lot. Between main buildings, six feet or one foot of setback for each two feet of height of the tallest building, or portion thereof, whichever is greater; between main buildings and one-story accessory buildings, six feet; between accessory buildings, six feet; distance between accessory dwelling units and other buildings shall be consistent with standards set forth in Chapter 24.16, Part 2. g. For any attached garage or carport fronting on a front or exterior side property line, the setback shall be twenty feet from said property line.

3. Other Requirements. Other regulations which may be applicable to site design in this zone are set forth in General Site Design Standards, Chapter 24.12, Part 2, Chapter 24.16, Part 2, Accessory Dwelling Units, and the Design Guidelines of the Beach and South of Laurel Comprehensive Area Plan.

19.31 ORDINANCE NO. 2024-XX
Section 17. Section 24.10.616 of Chapter 24.10 of the Santa Cruz Municipal Code regarding District Regulations for the R-T(B) Subdistrict B – Motel Residential is hereby amended to read as follows:

24.10.616 DISTRICT REGULATIONS

1. General.

Dwelling Unit Type Medium Density
Residential Provision 1-Family
Detached Duplex 3 or More Units
Other
Uses
a. Maximum height of buildings
• Principal buildings (feet) 30 30 36 36
• Accessory buildings (feet) 15 15 15 15
b. Minimum lot area (net) (square feet) 5,000 5,000 8,000 8,000 c. Minimum lot area (net) per dwelling unit
(square feet)
5,000 2,500 1,450 –
d. Minimum lot width (feet) 50 50 65 65
e. Usable open space per dwelling unit
(square feet)
– – 400 –

19.32 ORDINANCE NO. 2024-XX
f. Minimum Distance Between Buildings on the Same Lot. Between main buildings, six feet or one foot of setback for each two feet of height of the tallest building, or portion thereof, whichever is greater; between main buildings and one-story accessory buildings, six feet; between accessory buildings, six feet; distance between accessory dwelling units and other buildings shall be consistent with standards set forth in Chapter 24.16, Part 2. g. For any attached or detached garage or carport fronting on a front or exterior side property line, the setback shall be twenty feet from said property line.

3. Other Requirements. Other regulations which may be applicable to site design in this zone are set forth in General Site Design Standards, Chapter 24.12, Part 2, and the Design Guidelines of the Beach and South of Laurel Comprehensive Area Plan.

Section 18. Section 24.10.617.3 of Chapter 24.10 of the Santa Cruz Municipal Code regarding District Regulations for the R-T(B)/PER – Motel Residential Performance Overlay is hereby amended to read as follows:

24.10.617.3 DISTRICT REGULATIONS.

1. General.

Dwelling Unit Type
Provision 1-Family
Detached Duplex 3 or More Units
Other
Uses
a. Maximum height of buildings
• Principal buildings (feet) 30 30 36 36
• Accessory buildings (feet) 15 15 15 15
b. Minimum lot area (net) (square feet) 5,000 5,000 8,000 8,000 c. Minimum lot area (net) per dwelling unit
(square feet)
5,000 2,500 1,450 –
d. Minimum lot width (feet) 50 50 65 65
e. Usable open space per dwelling unit
(square feet)
– – 400 –

19.33 ORDINANCE NO. 2024-XX
front yard may be reduced to not less than six feet for a portion not to exceed fifty percent of the building frontage, providing that a total of ten square feet of front yard is provided for each lineal foot of total lot frontage. Such reduction of front yard depth shall not be permitted on a corner lot, within twelve feet of any side street lot line. b. The minimum rear setback shall be ten feet, or one foot of setback for each three feet of height, or portion thereof, of a structure, whichever is greater. c. The minimum side yard setback shall be five feet for the first story and one foot of setback for each three feet of height, or portion thereof, of structure, whichever is greater, for the second story and above.
d. There shall be no side yard required for townhouses on interior lots except there shall be a minimum side yard setback at the interior end of a townhouse group of five feet or one foot of setback for each three feet of height, or portion thereof, of a structure, whichever is greater. e. The minimum exterior side yard setback shall be eight feet, or one foot of setback for each three feet of height, or portion thereof, of a structure, whichever is greater. f. Minimum Distance Between Buildings on the Same Lot. Between main buildings, six feet or one foot of setback for each two feet of height of the tallest building, or portion thereof, whichever is greater; between main buildings and one-story accessory buildings, six feet; between accessory buildings, six feet; distance between accessory dwelling units and other buildings shall be consistent with standards set forth in Chapter 24.16, Part 2. g. For any attached or detached garage or carport fronting on a front or exterior side property line, the setback shall be twenty feet from said property line.

3. Other Requirements. Other regulations which may be applicable to site design in this zone are set forth in General Site Design Standards, Part 2, Chapter 24.12, and the Design Guidelines of the Beach and South of Laurel Comprehensive Area Plan. In addition, development on sites located within the district which fronts on West Cliff Drive shall conform to design standards governing development on West Cliff.

4. Siting.
a. Development shall be designed to create plazas and pedestrian spaces featuring amenities such as shade, benches, outdoor dining, fountains, gardens and performance spaces.
b. Building facades shall be articulated with wall offsets, recesses openings ornamentation, and appropriate colors and materials to add texture and detail to the streetscape. c. Any third story element of residential or support development shall be stepped back from the two story element by at least fifteen feet, from the property lines at the streets.

19.34 ORDINANCE NO. 2024-XX
d. Buildings design shall be encouraged to include significant building modulation and roof form articulation as specified within the design guidelines. e. All required front setback areas shall be landscaped in accordance with the standards or the design guidelines.

5. All new development adjacent to a “CON – Neighborhood Conservation District” overlay zone shall comply with Section 24.10.4060 standards for new construction on sites abutting overlay district boundaries, to ensure compatibility with the established district.

Section 19. Section 24.10.632 of Chapter 24.10 of the Santa Cruz Municipal Code regarding District Regulations for the R-T(D) Subdistrict D – Beach Residential is hereby amended to read as follows:

24.10.632 DISTRICT REGULATIONS.

1. General.

Dwelling Unit Type
Provision 1-Family
Detached Duplex Triplex 4 or More Units
Other
Uses
a. Height of buildings
• Principal (feet) 22 22 22 30 30
• Accessory (stories and feet) 1 and 15 1 and
15 1 and
15 1 and 15 1 and 15
b. Minimum lot area (net) (square
feet)
3,000 3,600 7,200 8,000 8,000
c. Minimum lot area (net) per
dwelling unit (square feet)
– 1,800 1,600 1,600 –
d. Minimum lot width (feet) 40 40 80 80 80
e. Usable open space per dwelling unit
(square feet)
– 400 400 400 –
Dwelling Units
First Story Second Story Other Uses
f. Front yard (feet) 5* 10* 10*
g. Rear yard (feet) 10 15 15
h. Side yard each side (feet) 4 4 4
or: one side (feet) 0 0 0

19.35 ORDINANCE NO. 2024-XX
Dwelling Units
First Story Second Story Other Uses
Total both sides (feet) 10 10 10
i. Exterior side yard (feet) 5* 5* 5*
* For any attached or detached garage or carport fronting on a front or exterior side property line, the setback shall be twenty feet from said property line.

2. Minimum Distance Between Buildings on the Same Lot. Between main buildings, six feet or one foot of setback for each two feet of height of the tallest building, or portions thereof, whichever is greater; between main buildings and one-story accessory buildings, six feet; between accessory buildings, six feet; distance between accessory dwelling units and other buildings shall be consistent with standards set forth in Chapter 24.16, Part 2.

3. Other Requirements/Standards.
a. Design. All development is subject to a design permit and must be in compliance with adopted design guidelines. Other regulations which may be applicable to site design in this zone are set forth in general site design standards, Part 2, Chapter 24.12 and the Design Guidelines of the Beach and South of Laurel Comprehensive Area Plan. a.1. New buildings shall employ California Bungalow or Victorian architectural style as a basis for design.
a.2. Buildings shall be similar in scale and form to existing structures and shall incorporate vernacular characteristics, such as pitched gabled roofs, proportionally large overhangs, exposed roof beams and rafter tails, vertically oriented multi-paned windows and front porches.
a.3. Buildings shall be wood frame construction with horizontal wood siding. a.4. Roof forms shall be typical of the Beach Flats with appropriate steeper pitches for Victorians and lesser pitches for California Bungalow style. a.5. Roof materials shall be composition or wood shingle. b. Parking. All parking shall be located within the rear or at the rear of main structures, if possible. Private multi-residential parking lots shall be screened from the public right-ofway, and meet the requirements of Section 24.12.240, in addition to the following requirements:
b.1. All garages and entrances to parking areas shall be set back at least five feet from the adjacent front building setback.
b.2. On lots of forty feet or less in width of street frontage, parking access is limited to a maximum of twelve feet of width. On lots of forty feet to sixty-five feet in width,

19.36 ORDINANCE NO. 2024-XX
parking access is limited to a maximum of sixteen feet of width; and on lots with greater than sixty-five feet in street frontage, parking access is limited to a maximum of twenty feet.
b.3. Driveways shall be minimized in order to maximize land use efficiency and the provision of landscaping and open space.
b.4. City parking standard requirements may be reduced in the following manner: one parking space for a one bedroom unit; for two or more bedrooms, the parking requirement may be reduced fifty percent if the following provisions are met:
• At least fifty percent of new units are two bedrooms or more; • For units which meet the city’s definition of “affordable”; and • If development is deemed compatible with surrounding neighborhood. c. Siting. All development shall be sited to create a harmonious street edge, and to blend into rather than dominate the street.
c.1. Entries to individual units and groupings of units shall be located on the ground floor facing the street. These entries shall incorporate architectural and landscaping elements such as porches and arbors that visually reinforce the presence of entries. c.2. Architectural elements, such as towers, balconies, stairs, decorative elements, etc., may be allowed to project up to fifty percent of the front yard setback requirement. d. Height. Multiple-story developments shall minimize scale through upper story setbacks, individual building elements, and other similar design techniques. d.1. The height of buildings shall be minimized at the street, in the following manner:
• One-story elements of buildings (including porches) must be set back five feet, • Second-story elements of buildings must be set back ten feet. e. Landscaping, in compliance with the design standards, is required. Landscaping shall be maintained in an attractive condition.
e.1. Landscaping shall be designed to enhance the architectural style. All front, rear and side yards shall be fully landscaped except for areas devoted to driveways, patios, walkways or porches.
e.2. Permanent containers for flowering plants are encouraged for use in limited space areas at entries and in courtyards and plazas.

19.37 ORDINANCE NO. 2024-XX
e.3. Vines and climbing plants integrated with building design and used on walls and trellises are encouraged.
e.4. Opaque garden walls are not permitted within the front yard setback to maintain the landscape continuity along the street. Fences limited to three feet in height are permitted as long as the fence is at least sixty percent open.

4. All new development adjacent to a “CON – Neighborhood Conservation District” Overlay Zone shall comply with Section 24.10.4060, standards for new construction on sites abutting overlay district boundaries, to ensure compatibility with the established district.

Section 20. Section 24.10.636 of Chapter 24.10 of the Santa Cruz Municipal Code regarding Principal Permitted Uses for the R-T(E) Subdistrict E – Beach Medium/High Density Residential is hereby amended to read as follows:

24.10.636 PRINCIPAL PERMITTED USES.

1. The following uses are permitted and may also require a design permit per Section 24.08.410 as well as other requirements of the municipal code:
a. Duplex dwellings.
b. Multiple dwellings, townhouse dwelling groups and condominiums. c. Small and large family daycare homes in residential units. d. Accessory Uses. Other uses and buildings customarily appurtenant to a permitted use, subject to the provisions of Section 24.12.140, Accessory buildings and structures. e. Accessory dwelling units subject to the provisions of Chapter 24.16, Part 2, except accessory dwelling units are not subject to approval of a design permit; Section 21. Section 24.10.710 of Chapter 24.10 of the Santa Cruz Municipal Code regarding Principal Permitted Uses for the C-C Community Commercial District is hereby amended to read as follows:

24.10.710 PRINCIPAL PERMITTED USES.

The following uses are allowed outright, subject to other requirements of the municipal code including the approval of a design permit for new structures when required by Section 24.08.410 (numerical references at the end of these categories reflect the general use classifications listed in the city’s land use codes. Subcategories of uses within these categories can be found in the land use codes, but they are not intended to be an exhaustive list of potential uses):

Uses for Active Frontage.
a. Acting/art/music/dance schools and studios (610);
b. Apparel and accessory stores (250);

19.38 ORDINANCE NO. 2024-XX
c. Auto supply stores (260C);
d. Eating and drinking establishments (except bars, fast-food) subject to live entertainment and alcohol regulations of Chapter 24.12 (280);
e. Financial, insurance, real estate offices (420);
f. Financial services (320);
g. Food and beverage stores (except liquor and convenience stores) (240); h. General retail merchandise (drug and department stores) (230); i. Home furnishing stores (270);
j. Medical/health offices (except veterinarians and ambulance services) (410); k. Museums and art galleries (600);
l. Professional/personal service (except contractors’ yards and mortuaries) (310); m. Repairs, alterations and maintenance services for household items (except boat repair) (340); n. Small preschool/childcare (twelve or fewer) (510A);
o. Specialty retail supply stores (290); except thrift stores (290m); p. Theaters (620);
q. Video rental (650).

Residential Uses.
r. Accessory dwelling units on parcels with an approved residential use, subject to the provisions of Chapter 24.16, Part 2, except accessory dwelling units are not subject to approval of a design permit;
s. Flexible density unit (FDU) housing;
t. Mixed residential and commercial/office developments involving allowed commercial uses, on the ground floor and multiple dwellings or condominiums either above the first floor or on the same lot;

19.39 ORDINANCE NO. 2024-XX
u. Multiple dwellings or condominiums when ground-floor units are designed as live-work units consistent with Section 24.12.185(13) and subject to the minimum (net) land area per dwelling unit of the R-M District (830);
v. One or two multiple-family units when located above the first floor with no additional parking required (830);
w. Single-room occupancy (SRO) housing (860);
x. Small community care residential facilities;
y. Small and large family daycare homes in residential units.

Commercial Uses.
z. Off-site public/private parking facilities, five or fewer spaces (930); aa. Professional offices (400);
ab. Wireless telecommunications facilities, subject to the regulations in Part 15 of Chapter 24.12 requiring no public hearing.

Section 22. Section 24.10.910 of Chapter 24.10 of the Santa Cruz Municipal Code regarding Principal Permitted Uses for the C-T Thoroughfare Commercial district is hereby amended to read as follows:

24.10.910 PRINCIPAL PERMITTED USES.

Uses for Active Frontage.

1. Art galleries.

2. Branch banks.

3. Clothing and apparel shops.

4. Eating and drinking establishments, subject to live entertainment and alcohol regulations of Chapter 24.12.

19.40 ORDINANCE NO. 2024-XX

5. Hotels, motels and bed-and-breakfast inns.

6. Medical and dental offices.

7. Professional, editorial, real estate, insurance and other general business offices.

Residential Uses.

8. Accessory dwelling units on parcels with an approved residential use, subject to the provisions of Chapter 24.16, Part 2, except accessory dwelling units are not subject to approval of a design permit;

9. Multiple dwellings and condominiums, when located either in the same lot or above first floor commercial development, subject to the minimum land area (net) per dwelling unit of the R-M District (830).

10. Small and large family daycare homes in residential units.

Commercial Uses.

11. Carpenter shop; electrical, plumbing or heating shops; furniture upholstering shop.

12. Garages for the repair of automobiles, subject to performance standards as set forth in this title for principal permitted uses in the I-G District.

13. Handicraft shops and workshops.

14. Medical, optical, and dental clinics and laboratories, not including the manufacture of pharmaceuticals or other (similar) products for general sale or distribution.

15. Mobilehome, trailer, boat, motorcycle sales and service.

16. New car sales and service.

17. Parking facilities of five or fewer spaces.

18. Plant nurseries and greenhouses.

19. Theaters.

20. Used car sales and service, auto parts and supply stores.

21. Wireless telecommunications facilities, subject to the regulations in Part 15 of Chapter 24.12 requiring no public hearing.

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Section 23. Section 24.10.1010 of Chapter 24.10 of the Santa Cruz Municipal Code regarding Principal Permitted Uses for the C-N Neighborhood Commercial District is hereby amended to read as follows:

24.10.1010 PRINCIPAL PERMITTED USES.

1. The following uses are allowed outright, subject to other applicable requirements of the municipal code including the requirement for a design permit for new structures when required by Section 24.08.410 (numerical references at the end of these categories reflect the general use classifications listed in the city’s land use codes. Subcategories of uses within these use categories can be found in the land use codes, but they are not intended to be an exhaustive list of potential uses):

Uses for Active Frontage.
a. Eating and drinking establishments (except bars and fast food), subject to live entertainment and alcohol regulations of Chapter 24.12 (280); b. Financial, insurance, real estate offices (420);
c. Food, beverage stores (except liquor and convenience stores) (240); d. Hardware stores (indoor sales only) (220A);
e. Medical/health offices (except veterinarians and twenty-four-hour clinics) (410); f. Professional/personal service (except contractors yards and mortuaries) (310); Residential Uses.
g. One or two multiple-family units when located above the first floor commercial use with no additional parking required (830);
h. Small and large family daycare homes in residential units; i. Multiple dwellings and condominiums, when located either in the same lot or above first floor commercial development, subject to the minimum land area (net) per dwelling unit of the R-L District (840);
j. Accessory dwelling units on parcels with an approved residential use, subject to the provisions of Chapter 24.16, Part 2, except accessory dwelling units are not subject to approval of a design permit;
Commercial Uses:

19.42 ORDINANCE NO. 2024-XX
k. Financial services (320);
l. Off-site public/private parking facilities five or fewer spaces (930); m. Professional offices (400);
n. Wireless telecommunications facilities, subject to the regulations in Part 15 of Chapter 24.12 requiring no public hearing.

Section 24. Section 24.10.1110 of Chapter 24.10 of the Santa Cruz Municipal Code regarding Principal Permitted Uses for the C-B Beach Commercial District is hereby amended to read as follows:

24.10.1110 PRINCIPAL PERMITTED USES.

1. The following uses are allowed outright, subject to other applicable requirements of the municipal code (numerical references at the end of these categories reflect the general use classifications listed in the city’s land use codes. Subcategories of uses within these use categories can be found in the land use codes, but they are not intended to be an exhaustive list of potential uses):

Uses for Active Frontage.
a. Acting/art/music/dance schools and studios (610);
b. Apparel and accessory stores (250);
c. Eating and drinking establishments (except fast-food restaurants), subject to live entertainment and alcohol regulations of Chapter 24.12 (280); d. Food and beverage stores (except convenience/liquor stores) (240); e. General merchandise (drug and department stores) (230); f. Handicraft shops and workshops;
g. Museums and art galleries (600);
h. Personal/professional services (except contractors’ yards and mortuaries) (310); i. Specialty retail supply stores (290); except thrift stores (290m); Residential Uses.

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j. One or two multiple-family units when located above the first floor with no additional parking required (830);
k. Small and large family daycare homes in residential units; l. Mixed residential and commercial development involving permitted or administrative uses on the ground floor and multiple dwellings or condominiums either on the same lot or above the first floor, subject to the minimum land area (net) per dwelling unit of the R-M District (830);
m. Accessory dwelling units on parcels with an approved residential use, subject to the provisions of Chapter 24.16, Part 2;
Commercial Uses.
n. Financial, insurance, real estate offices above first floor (420); o. Lodging (300);
p. Marine facilities (560E);
q. Mechanical contrivances for amusement purposes, such as Ferris wheels, and roller coasters, south and east of Beach Street only;
r. Off-site public/private parking facilities, five or fewer spaces (930); s. Professional offices above first floor (400);
t. Sports and recreation facilities, subject to alcohol regulations in Part 12 of Chapter 24.12 (720);
u. Theaters (620);
v. Video rental (650);
w. Wireless telecommunications facilities, subject to the regulations in Part 15 of Chapter 24.12 requiring no public hearing.

Section 25. Section 24.10.1210 of Chapter 24.10 of the Santa Cruz Municipal Code regarding Principal Permitted Uses for the P-A Professional and Administrative Office District is hereby amended to read as follows:

24.10.1210 PRINCIPAL PERMITTED USES.

19.44 ORDINANCE NO. 2024-XX

1. The following uses are allowed outright if a design permit is obtained for new structures (numerical references at the end of these categories reflect the general use classifications listed in the city’s land use codes. Further refinement of uses within these categories can be found in the land use codes, but they are not intended to be an exhaustive list of potential uses):

Uses for Active Frontage.
a. Financial, insurance, real estate offices (420);
b. Financial services (320);
c. Professional offices (400);
d. Professional/personal services (except contractors’ yards and mortuaries) (310); e. Medical/health offices (except veterinarians, medical marijuana provider association dispensaries, as defined in Section 24.22.539, ambulance services and emergency medical clinics open earlier than 7:00 a.m. and later than 9:00 p.m.) (410); f. Museums and art galleries (600);
Residential Uses.
g. Accessory dwelling units on parcels with an approved residential use, subject to the provisions of Chapter 24.16, Part 2, except accessory dwelling units are not subject to approval of a design permit;
h. Duplexes together with an allowed commercial use (820); i. Multiple dwellings and condominiums, together with an allowed commercial use and subject to minimum land area requirements of R-M District (830); j. One to two units above ground floor office use with no additional parking required (810); k. Small and large family daycare homes in residential units; Commercial Uses.
l. Off-site parking fewer than five spaces (930);
m. Wireless telecommunications facilities, subject to the regulations in Part 15 of Chapter 24.12 requiring no public hearing.

Section 26. Section 24.10.1505 of Chapter 24.10 of the Santa Cruz Municipal Code regarding Principal Permitted Uses for the I-G General Industrial District is hereby amended to read as follows:

24.10.1505 PRINCIPAL PERMITTED USES.

1. The following uses are allowed outright, subject to other requirements of the municipal code (numerical references at the ends of these categories reflect the general use classifications listed in the city’s land use codes. Further refinement of uses within these categories can be found in the land use codes, but they are not intended to be an exhaustive list of potential uses):
a. Accessory dwelling units on parcels with an approved residential use, subject to the provisions of Chapter 24.16, Part 2;
b. Acting/art/music/dance schools and studios (610);
c. Building materials/garden supply stores (220) with less than forty thousand square feet including indoor floor area and outdoor storage, display, or sales area. For building materials/garden supply stores of which fifty percent or more of the square footage will occupy an existing building, this threshold will be seventy-five thousand square feet including indoor floor area and outdoor storage, display, or sales areas so long as vacant,

19.45 ORDINANCE NO. 2024-XX
available space in existing buildings in the IG Zone exceeds four hundred thousand square feet. When the vacant, available square footage is less than four hundred thousand square feet, the forty-thousand-square-foot threshold will apply; d. Financial, insurance, real estate offices (420);
e. Food and beverage preparation (100);
f. Furniture and fixtures (120);
g. Laboratories and related facilities for research, experimentation, testing, film processing, software development, including cannabis testing; h. Medical/health offices/laboratories (410);
i. Millwork textile products (105);
j. Printing and publishing or lithographic shops and plants; k. Professional offices (400);
l. Professional/personal service (except mortuaries) (310); m. Rental service (360);
n. Repair, alterations, maintenance (except boat repairs) (340); o. Small and large family daycare homes in residential units; p. Start-up fabrication assembly or packaging from light metals, prepared materials, or prefabricated parts, including electrical devices if operated in an area no greater than three thousand square feet, and no hazardous materials are used during the operation; q. Storage warehousing (330);
r. Wholesale trade durable goods (210);
s. Wholesale trade nondurable goods (200).

Section 27. Section 24.10.1605 of Chapter 24.10 of the Santa Cruz Municipal Code regarding Principal Permitted Uses for the I-G/PER-2 General Industrial District/Performance District is hereby amended to read as follows:

24.10.1605 PRINCIPAL PERMITTED USES.

1. The following uses are allowed outright, subject to other requirements of the municipal code (numerical references at the end of these categories reflect the general use classifications listed in the city’s land use codes. Further refinement of uses within these categories can be found in the land use codes, but they are not intended to be an exhaustive list of potential uses):
a. Accessory dwelling units on parcels with an approved residential use, subject to the provisions of Chapter 24.16, Part 2;
b. Acting/art/music/dance schools and studios (610);
c. Adult school/work force training (510F);
d. Building materials/garden supply stores (220) with less than forty thousand square feet including indoor floor area and outdoor storage, display, or sales area. For building materials/garden supply stores of which fifty percent or more of the square footage will occupy an existing building, this threshold will be seventy-five thousand square feet including indoor floor area and outdoor storage, display, or sales areas so long as vacant,

19.46 ORDINANCE NO. 2024-XX
available space in existing buildings in the IG Zone exceeds four hundred thousand square feet. When the vacant, available square footage is less than four hundred thousand square feet, the forty-thousand-square-foot threshold will apply; e. Communication and information services (550);
f. Financial, insurance, real estate offices (420);
g. Fabricated metal products (150);
h. Food and beverage preparation and production (100);
i. Furniture and fixtures (120);
j. Medical/health offices/laboratories, including cannabis testing (410); k. Millwork textile products (105);
l. Other manufacturing and processing industries (except bulk petroleum, scrap and waste materials) (155);
m. Primary metals and material subject to performance standards (145); n. Rubber, plastic, miscellaneous materials and products subject to performance standards (135);
o. Printing and publishing or lithographic shops and plants; p. Professional offices (400);
q. Professional/personal service (except mortuaries) (310); r. Rental service (360);
s. Repair, alterations, maintenance (including boat repairs) (340); t. Small and large family daycare homes in residential units; u. Start-up fabrication assembly or packaging from light metals, prepared materials, or prefabricated parts, including electrical devices;
v. Stone, clay, glass design and production (140);
w. Storage warehousing (330);

19.47 ORDINANCE NO. 2024-XX
x. Technology related research and development facilities and products; y. Wholesale trade durable goods (210);
z. Wholesale trade nondurable goods (200).

Section 28. Section 24.10.1810 of Chapter 24.10 of the Santa Cruz Municipal Code regarding Principal Permitted Uses for the E-A Exclusive Agricultural District is hereby amended to read as follows:

24.10.1810 PRINCIPAL PERMITTED USES.

1. Accessory dwelling units on parcels with an approved residential use, subject to the provisions of Chapter 24.16, Part 2;

2. Agriculture, as defined herein;

3. Animal farm;

4. Crop and tree farming;

5. Ranch and farm dwellings incidental to a principal agricultural use;

6. Stables, barns, silos, and windmills
Section 29. Section 24.10.2010 of Chapter 24.10 of the Santa Cruz Municipal Code regarding Principal Permitted Uses for the F-P Floodplain District is hereby amended to read as follows:

24.10.2010 PRINCIPAL PERMITTED USES.

1. Accessory dwelling units on parcels with an approved residential use, subject to the provisions of Chapter 24.16, Part 2;

2. Agriculture;

3. Crop and tree farming;

4. Nurseries.

19.48 ORDINANCE NO. 2024-XX
Section 30. Section 24.10.2050 of Chapter 24.10 of the Santa Cruz Municipal Code regarding District Regulations for the F-P Floodplain District is hereby amended to read as follows:

24.10.2050 DISTRICT REGULATIONS.

The following requirements will be observed in the F-P District for the type of use proposed; except as otherwise provided in this title.

1. General.

Provision
Classification
or Type of
Use All Uses
a. Lot Width (feet) 200
b. Minimum lot area (net)
(acres)
5 2. Other Requirements.
a. Maximum height of all buildings, principal and accessory, shall be two stories or thirty-five feet. Yard distances and distance between buildings shall be established as part of use permit approval, except that distance between accessory dwelling units and other buildings shall not require approval of a use permit and shall be consistent with standards set forth in Chapter 24.16, Part 2.
b. Other regulations which may be applicable to site design in this zone are set forth in General Site Design Standards, Part 2, Chapter 24.12 and Floodplain Management, Part 4, Chapter 24.14.
c. The lowest habitable floor level of structure shall be above the flood profile level as established by the high-water mark of a one-hundred-year storm. d. Fill incidental to a principally permitted or conditional use must be accompanied by a plan showing the uses to which the fill land will be placed, final dimensions of proposed fill, and effects on the capacity of the floodway and flood heights. e. Environmental assessment shall be required of conditional uses to determine the requirements of the use permit that minimize hazards to public health and safety.

Section 31. Section 24.10.2361 of Chapter 24.10 of the Santa Cruz Municipal Code regarding Principal Permitted Uses for the CBD Subdistrict E – Lower Pacific Avenue is hereby amended to read as follows:

24.10.2361 PRINCIPAL PERMITTED USES*

19.49 ORDINANCE NO. 2024-XX
* Editor’s Note: This section was formerly numbered as Section 24.10.2360. Ord. 2000-18 § 10 renumbered it to be Section 24.10.2361, at which time a new Section 24.10.2360, entitled Purpose, was added.

1. The following uses are allowed outright in the Lower Pacific Avenue Subdistrict, subject to a design permit and other requirements of the Municipal Code (numerical references at the end of these categories reflect the general use classifications listed in the city’s Land Use Codes. Further refinement of uses within these categories can be found in the Land Use Codes, but they are not intended to be an exhaustive list of potential uses):
a. Accessory dwelling units on parcels with an approved residential use, subject to the provisions of Chapter 24.16, Part 2, except accessory dwelling units are not subject to approval of a design permit;
b. Acting/art/music/dance school and studios (610);
c. Apparel and accessory stores (250);
d. Eating and drinking establishments (excepts bars, fast food), subject to live entertainment and alcohol regulations of Chapter 24.12 (280); e. Educational facilities (public/private) (510);
f. Food and beverage stores (except liquor and convenience stores) (240); g. General retail merchandise (drug and department stores) (230); not exceeding 16,000 square feet per individual store;
h. Home furnishing stores (270);
i. Lodging (300);
j. Multiple dwellings or condominiums or mixed use residential and commercial developments when multiple dwelling or condominium units are located above the first floor of commercial uses, subject to the minimum land area (net) per dwelling unit of the R-M District (830, 840);
k. Museums and art galleries (600);
l. Repair, alterations, and maintenance services for household items (except boat repair) (340);
m. Small community care residential facilities;
n. Small preschool/childcare (12 or fewer) (510A);

19.50 ORDINANCE NO. 2024-XX
o. Specialty retail supply stores (290);
p. Theaters (620);
q. Video rental (360B).

Section 32. Section 24.12.120 of Chapter 24.12 of the Santa Cruz Municipal Code regarding Projections into Required Yard Areas, Setbacks and Easements is hereby amended to read as follows:

24.12.120 PROJECTIONS INTO REQUIRED YARD AREAS, SETBACKS AND

EASEMENTS

1. Projections Into Required Yard Areas. The following are permitted projections into required yard areas. Projections shall not be permitted in yards that are less than the minimum established by district regulations except as provided for in subsection (2), as allowed in certain areas under Section 24.12.185(12), or as allowed for accessory dwelling units under Part 2 of Chapter 24.16. a. Architectural features such as cornices, canopies, eaves and sills shall be permitted to project into front, rear and side yards two and one-half feet; b. Steps serving the first floor, and bay windows, chimneys, decks, and porches serving the first floor and above may extend into front, rear and exterior side yards one-half of the required yard or six feet, whichever results in a greater setback. For interior side yards, maximum projection is one foot, eight inches unless the projection meets the requirements of subsection (1)(c). Bay window, deck, porch and step projections are permissible in interior side yards on the first floor only. In all cases, no projection or aggregate of projections listed in this subsection shall be more than one-third of the building wall along which it is located; c. Unroofed decks, porches, patios and steps of pervious materials twenty inches or less above finished grade may extend into conforming interior side yards without restriction; d. Guardrails on decks and porches and handrails on stairs projecting into required yards on the first floor shall be considered fences and shall be governed by Section 24.12.160, with the exception of guardrails and/or handrails required for access to the first floor for the physically challenged;
e. Rain retention systems attached to the main residence may extend into side and rear yards one-half the required yard or six feet, whichever results in the greater setback. For interior side yards, the minimum setback shall be three feet. Such encroachment shall be no higher than six feet from finished grade.

2. Any structure necessary to provide access to the first floor for the physically challenged.

3. Projections Into Special Street Setbacks. The following uses are permitted within the special street setbacks established in Section 24.12.115:
a. Streetlights, traffic signs and signals and appurtenances necessary to the conduct or operation of a public utility, facility, or purpose;
b. Fences, walks, hedges, landscaping, outdoor merchandise display, platforms, landings, steps and signs, when constructed or installed so as to have a maximum height of two and one-half feet above curb grade, except as provided for in subsection (3)(d);

19.51 ORDINANCE NO. 2024-XX
c. Unenclosed porches, cornices, canopies, eaves, and similar architectural features and signs when constructed so that the clearance from curb grade to the lowest portion thereof, except supporting members, is at least eight feet; and further provided, that no supporting member shall have a cross-section of greater than eight inches, nor be located closer than six feet to another supporting member within the setback area; d. Any structure necessary to provide access to the first floor for the physically challenged.

4. Projections Into Easements. No structure or projection thereof may extend into a public utility easement.

Section 33. Section 24.12.140 of Chapter 24.12 of the Santa Cruz Municipal Code regarding Accessory Buildings and Structures is hereby amended to read as follows:

24.12.140 ACCESSORY BUILDINGS AND STRUCTURES.

In addition to primary structures, it is often useful and convenient to have accessory buildings and structures to provide storage, allow additional usable indoor or sheltered space, or to perform some other function beyond what is included in the primary structure. These spaces can be provided in a building, defined for the purposes of this section as having a roof and walls, or by another accessory structure such as a pergola or a gazebo. Some spaces, such as children’s play equipment, can be classified as either a building (e.g., enclosed playhouse) or a structure (e.g., swing set). The defining characteristic of these buildings and structures is that they are accessory and subordinate to the primary structure and do not detract from the form and function of the primary structure and are complementary to its use.

1. Accessory Buildings. Accessory buildings are subject to the regulations and permit requirements of the zoning district in which they are located. a. No setback shall be required for an accessory building except as otherwise provided. b. No accessory building shall be located in a front or exterior side yard with the exception of buildings used as children’s play equipment that do not create traffic safety hazards, that are less than fifty square feet in plan area at grade, less than fourteen feet in height, and with minimum setbacks of three feet. Such buildings are exempt from the restrictions in this section. Children’s play structures are defined as structures that are designed, made for, and used by children. The vehicle entry side of a garage or other covered parking may not be located closer than twenty feet from front or exterior side yard lot lines; except that the vehicle entry side of a garage or other covered parking may be built to the front and exterior side yard lot lines where the slope of the front half of the lot is greater than one foot rise or fall in a distance of seven feet from the established street elevation at the property line, or where the elevation of the lot at the street line is five feet or more above or below the established street elevation.
c. Accessory buildings that are less than one hundred twenty square feet in floor area are not required to conform to the distance-between-buildings requirement set forth in the district regulations, Chapter 24.10; however, such structures are subject to all other standards,

19.52 ORDINANCE NO. 2024-XX
regulations, and requirements of this title and other state and local requirements including Title 18 and the California Building Standards Code.
d. Accessory buildings that are less than one hundred twenty square feet in floor area and less than fifteen feet in height are not subject to design permit approval when constructed on substandard lots or when constructed on lots within a residential zone district that requires design permit approval for new structures; however, such structures are subject to all other standards, regulations, and requirements of this title and other state and local requirements including Title 18 and the California Building Standards Code. e. Habitable accessory buildings, not including accessory dwelling units, shall not be located within the front yard nor closer than six feet to the nearest point of the principal building and shall conform to principal building rear and side yard requirements of the district in which they are located. No habitable accessory building shall be used as a separate dwelling unit except accessory dwelling units as described in Part 2 of Chapter 24.16.

Guesthouses for nonpaying guests are allowed only if permitted in the zoning district in which they are located.
f. Accessory buildings may not cover an area in excess of thirty percent of any required yard setback area for the primary structure. The footprint of accessory dwelling units shall not count toward the maximum allowable lot coverage by accessory buildings in yard setback areas.
g. An accessory building attached to a main building by a breezeway is not part of the main building.
h. An accessory building may have one sink installed in it if a building permit is obtained.

A property with multiple accessory buildings may have a sink in only one accessory building without approval of an administrative use permit. Any additional plumbing fixtures would require an administrative use permit subject to findings listed in subsection (1)(i) and a building permit for the approved improvements.
i. Accessory buildings may contain a full bathroom only when an administrative use permit is approved in accordance with district regulations and all of the following findings are made:
i. The structure and use are subordinate to the principal use; and ii. The purpose of the use is incidental to the principal use; and iii. The use is customarily or reasonably appurtenant to the permitted use; and iv. The structure will not be used as a dwelling unit; and v. A deed restriction will be recorded limiting the use of the structure to that approved under the permit unless otherwise authorized by the city.

19.53 ORDINANCE NO. 2024-XX

2. Accessory Dwelling Units. Accessory dwelling units are separate and distinct from accessory buildings and are subject to the following regulations:
a. Accessory dwelling units are subject to the regulations in Part 2 of Chapter 24.16. b. Off-street parking shall be required in compliance with Section 24.12.240. c. In the Coastal Zone, accessory dwelling units are allowed in any zone that allows residential uses on lots of any size, in conjunction with a proposed or existing residential use.

Accessory dwelling units that require approval of a coastal permit shall be sited and designed to avoid adverse impacts to coastal resources, including by conforming with all applicable LCP policies and standards, including those that govern wetlands, streams, environmentally sensitive habitat areas, public views, and coastal bluffs.

3. Accessory Structures. Accessory structures are subject to the regulations and permit requirements of the zoning district in which they are located. a. Accessory structures above eight feet in height shall not be located in a front or exterior side yard with the exception of entry features as described in Section 24.12.160(1). No accessory structure in the front or exterior side yard may be located within the clear corner triangle as defined in Section 24.22.202. Any accessory structures located in the front or exterior side yard must be open in nature and must provide and maintain a minimum of ninety percent visual permeability above the first foot in height. b. Accessory structures located in the rear or interior side yard that are less than one hundred twenty square feet in floor area and less than fifteen feet in height are not subject to design permit approval when constructed on substandard lots or when constructed on lots within a residential zone district that requires design permit approval for new structures; however, such structures are subject to all other standards, regulations, and requirements of this title and other state and local requirements including Title 18 and the California Building Standards Code. This includes fences within the West Cliff Drive Overlay District that conform to Section 24.12.160.
c. Children’s play structures that do not create traffic safety hazards, that are less than fifty square feet in plan area, less than fourteen feet in height, and with minimum front setbacks of three feet are exempt from the restrictions in this section. Children’s play structures are defined as structures that are designed for, made for, and used by children.

Section 34. Section 24.12.160 of Chapter 24.12 of the Santa Cruz Municipal Code regarding Fencing and Screening is hereby amended to read as follows:

24.12.160 FENCING AND SCREENING.

19.54 ORDINANCE NO. 2024-XX

1. Fencing. Regulations governing the installation, construction and placement of fences and structures in the nature of fences, including hedges, which exceed height limitations contained herein are set forth in Chapter 24.08, Part 7, Conditional Fence Permit. a. Height Limitations. No person shall erect upon any private property in the city any fence, or structure in the nature of a fence, exceeding the following height limitations:
(1) Within the required front and exterior side yard setback areas established by ( this title, Chapter 18.04, or other ordinances of the city, fences shall not exceed a height of three feet, six inches from finished grade, except as provided in Chapter 24.08, Part 7. (2) Within the exterior side yard setback established by this title, Chapter 18.04, or other ordinances of the city, fences outside of the front yard setback or in line with the main building frontage, whichever distance is greater, that are set back a minimum of three feet from the exterior side property line shall not exceed a height of six feet from finished grade, except as provided in Chapter 24.08, Part 7. Fences within the exterior side yard setback that are less than three feet from the side property line or within the front setback area shall not exceed a height of three feet, six inches from finished grade.

Any yard area between a fence and the sidewalk or property line shall be landscaped and permanently maintained. This landscaping shall not include hedges that are higher than three-and-one-half feet.
(3) On any portion of the property outside of the required front and exterior side yard setbacks, fences shall not exceed a height of eight feet from finished grade, with any portion of the fence above six feet consisting of lattice or other similar material that is at least fifty percent open except as provided in Chapter 24.08, Part 7, with any portion of the fence above six feet having an open architectural, decorative, or ornamental feature such as lattice or other similar design or material. “Open” means that no more than fifty percent of the design shall be opaque.
(4) Any fence along a property line adjacent to a street, or in the adjacent required setback, except in the clear corner triangle, may include a gate, trellis or other entry feature exceeding the height limit stated in subsections (1)(a)(1) and (2). Such gate, trellis or entry feature shall be limited to ten feet in width and ten feet in height. Only one such gate, trellis or entry feature shall be permitted per street frontage except as provided in Chapter 24.08, Part 7.
b. Fire Hazard. The erection of any fence which constitutes a fire hazard either of itself or in connection with the existing structures in the vicinity, or which will interfere with access in case of fire, by the fire department to buildings in the vicinity or which will constitute a hazard to street traffic or to pedestrians shall not be permitted. c. Temporary Fences – Exceptions. Nothing contained in this title shall be deemed to interfere with the erection of temporary fences around construction works, erected or maintained pursuant to Chapter 18.04 and other ordinances of the city. d. Barbed-Wire Fencing. No barbed-wire fences may be constructed, electrified or otherwise, without a conditional fence permit.
e. Hedges. Hedges or dense planting in the nature of a hedge in excess of three feet, six inches in height shall not be grown or maintained within the required front or exterior side yard setbacks of the zoning district in which the property is located. f. Clear Corner Triangles and Clear Vision Areas. Fences or hedges shall not be greater than, nor allowed to exceed, three feet, six inches in height in the clear corner triangle and the clear vision area as defined in Sections 24.22.202 and 24.22.206.

19.55 ORDINANCE NO. 2024-XX
g. Fences Within Watercourse Setback Areas. Fencing within a designated riparian corridor or development setback area of a watercourse shall be consistent with requirements of the watercourse development permit, Section 24.08.2130.

2. Screening.
a. In any nonresidential district adjacent to any R-District, screening between districts shall be provided.
b. All areas of outdoor storage in any commercial or industrial district shall be permanently screened from view from any adjacent street, public way or adjacent private property.

Section 35. Section 24.12.250 of Chapter 24.12 of the Santa Cruz Municipal Code regarding Bike Parking Requirements is hereby amended to read as follows:

24.12.250 BIKE PARKING REQUIREMENTS.

1. Bicycle parking facilities shall be provided for any new building, addition or enlargement of an existing building, or for any change in the occupancy.

2. Bike Spaces and Type Required. Bicycle parking facilities’ quantity and type shall be provided in accordance with the following schedule, with fractional quantity requirements for bike parking over one-half to be rounded up. Each bicycle parking space shall be no less than six feet long by two feet wide and shall have a bicycle rack system in compliance with the bike rack classifications listed in subsection (4).

Example
Number of
Bicycle Parking
Spaces Required
Classification
Class 1 = Long-Term
Class 2 = Short-Term
Industrial Warehousing,
manufacturing
1 per 7,500
square feet,
minimum 2
spaces
80% Class 1
20% Class 2
Office and financial
institutions
General office, medical,
clinic, research and
development, banks
1 per 1,500
square feet,
minimum 2
spaces
20% Class 1
80% Class 2
Retail/service or
other commercial
Grocery store, hardware
store, personal services,
handicraft
1 per 1,000
square feet,
minimum 2
spaces
20% Class 1
80% Class 2
Restaurant/bar Restaurant, deli, coffee
shop, bar/tasting rooms
1 per 500 square
feet, minimum 2
spaces
20% Class 1
80% Class 2
Multifamily
residential
(3 or more units)
Housing developments
with 3 or more units, plus
See classification
column
Class 1 – 1 space per unit
– garages or secure

19.56 ORDINANCE NO. 2024-XX
Example
Number of
Bicycle Parking
Spaces Required
Classification
Class 1 = Long-Term
Class 2 = Short-Term
any associated accessory
dwelling units
accessible indoor areas
count
Class 2 – 1 space per 4
units, minimum 2 spaces
Commercial
recreation
Sports arenas, theaters See classification
column
Class 1 – 1 per 10,000
square feet
Class 2 – 1 per 40 seats,
minimum 10
Civic uses (civic,
cultural, public, and
religious assembly)
Library or museum, places
of public or religious
assembly
1 per 1,000
square feet
10% Class 1
90% Class 2
Schools 1 per 5 students 20% Class 1
80% Class 2*
*Must be in secure area
such as bike cage or
within gated school
grounds, preferably with
weather protection such
as roof
Park-and-ride lots 1 per 10 auto
parking spaces,
minimum 2
spaces
100% Class 1
Transit centers See classification
column
30 Class 1 spaces
12 Class 2 spaces
Lodging Hotel, motel 1 per 5
rooms/units
10% Class 1
90% Class 2
Commercial
parking
1 per 10 auto
parking spaces
100% Class 1
Parking District No.
1 – Residential uses
Multifamily housing,
including any accessory
dwelling units
See classification
column
1 Class 1 bicycle parking
space per unit
1 Class 2 bicycle parking
space per 15 units
Parking District No.
1 – Nonresidential
uses
Any nonresidential uses in
district
1 per 1,000
square feet
25% Class 1
75% Class 2
The Class 2 spaces shall
be publicly accessible,

19.57 ORDINANCE NO. 2024-XX
Example
Number of
Bicycle Parking
Spaces Required
Classification
Class 1 = Long-Term
Class 2 = Short-Term
and the style shall be
inverted U.

Emergency shelters See Section 24.12.1610 1 per 3 occupants 25% Class 1 75% Class 2
The Class 2 spaces shall
be publicly accessible,
and the style shall be
inverted U.

3. For projects requiring twenty or more bike parking spaces, a bike fix-it station is required. A fix-it station shall include at a minimum a bicycle pump; 2.5, 3, 4, 5, 6, and 8 mm Allen wrenches; 8, 9, 10, 11, 15, and 32 mm box wrenches; two tire levers; and a Phillips and flat head screwdriver.

For projects requiring twenty or more bicycle parking spaces, a minimum of five percent of required bicycle parking spaces must have a larger footprint of three feet by ten feet, which must be provided in a horizontal, floor level rack. These spaces will be available for larger bicycles such as e-bikes, cargo bikes, bikes with trailers, and other larger bicycles.

4. Classification of Facilities.
a. “Class 1 bicycle facility” means a locker, individually locked enclosure or supervised area within a building providing protection for each bicycle therein from theft, vandalism and weather. Class 1 facilities are intended for long-term storage. b. “Class 2 bicycle facility” means a stand or other device constructed so as to enable the user to secure by locking the frame and one wheel of each bicycle parked therein. Racks must provide two points of contact to bicycle frames, so that they are easily usable with both U-locks and cable locks. Racks should support the bikes in a stable upright position so that a bike, if bumped, will not fall or roll down. The preferred Class 2 bike rack style is an inverted U, which meets code requirements. Racks that support a bike primarily by a wheel, such as standard “wire racks,” are damaging to wheels and thus are not acceptable. Class 2 facilities are intended for short-term storage.

5. Location and Design of Facilities.
a. Bicycle parking shall be located in well-lit locations within forty feet of the building’s entrance and clustered in lots not to exceed sixteen spaces each. b. Bicycle parking facilities shall provide two points of contact to bicycle frames to support bicycles in a stable position without damage to wheels, frame or other components. c. Bicycle parking facilities shall be located in highly visible, well-lit areas to minimize theft and vandalism.
d. Bicycle parking facilities shall be securely anchored to the lot surface so they cannot be easily removed and shall be of sufficient strength to resist vandalism and theft. e. Bicycle parking facilities shall not impede pedestrian or vehicular circulation, and should be harmonious with their environment both in color and design. Parking facilities should be incorporated whenever possible into building design or street furniture. f. Racks must not be placed close enough to a wall or other obstruction so as to make use difficult. There must be sufficient space (at least twenty-four inches) beside each parked bike that allows access. This access may be shared by adjacent bicycles. An aisle or other space

19.58 ORDINANCE NO. 2024-XX
shall be provided to bicycles to enter and leave the facility. This aisle shall have a width of at least six feet to the front or rear of a bike parked in the facility. g. Paving is not required, but the outside ground surface shall be finished or planted in a way that avoids mud and dust.
h. Bike parking facilities within auto parking areas shall be separated by a physical barrier to protect bicycles from damage by cars, such as curbs, wheel stops, poles or other similar features.
i. Any bicycle parking provided in double-decker bicycle racks shall have a lift-assist mechanism to aid the user in parking their bicycle on the upper rack. j. If vertical wall hanging bicycle racks are used for Class 2 bicycle parking, thirty percent of required Class 2 bicycle parking must be provided in racks that meet Class 2 requirements in subsection (4)(b) at ground level.
k. If required Class 2 bicycle parking is not clearly visible to bicyclists approaching from adjacent public roadways or paths, signs shall indicate the locations of the facilities on the exterior of the building at each major entrance and in other appropriate locations. Where necessary, additional directional signage to the bicycle parking area shall be provided.

6. Variation to Requirements.
a. Substitution of Car Parking With Bike Parking. New and preexisting developments may reduce up to ten percent of their parking requirement with the provision of unrequired additional bike parking, as long as the spaces are conveniently located within forty feet of a building entrance. This parking reduction must yield at least six bike parking spaces per converted auto space. These bike parking spaces shall be in addition to the bike parking facilities required by this section, and provided in the same ratio of Class 1 and Class 2. The total available parking reduction granted shall be calculated in conformance with the city parking reduction worksheet in effect at the time a complete planning application is submitted.
b. Where the provision of bike parking is not feasible, the requirements may be waived or reduced to a feasible level by the zoning administrator in accordance with city bike parking standards.
c. Downtown Parking District – All Nonresidential Uses. Businesses and developments within Parking District No. 1 are not required to provide Class 2 bicycle parking on site if adequate on-site space is not available, as determined by the planning director. The city shall permit required bicycle parking within the public right-of-way for the downtown parking district area in locations and amounts determined by the director of public works.

Section 36. The City Council finds and determines that the adoption of this ordinance is considered a “project” under California Code of Regulations, Title 14, section 15378(a)(1) of the California Environmental Quality Act (CEQA) Guidelines, typically subject to environmental review. The City Council finds that these amendments fall within the analyzed development potential in the City’s existing 2030 General Plan EIR using the existing zoning and General Plan and, therefore, pursuant to Section 15183 of the CEQA Guidelines, no further environmental review under CEQA is required.

19.59 ORDINANCE NO. 2024-XX
Section 37. If any section or portion of this ordinance is found to be invalid by a court of competent jurisdiction, such finding shall not affect the validity of the remainder of the ordinance, which shall continue in full force and effect.

Section 38. This ordinance shall take effect and be in full force thirty (30) days after final adoption outside of the Coastal Zone. Within the Coastal Zone, this ordinance shall take effect and be in full force after approval by the California Coastal Commission, but no earlier than thirty (30) days after final adoption.

PASSED FOR PUBLICATION this 8th day of October 2024, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: __________________________
Fred Keeley, Mayor
ATTEST: ___________________________
Bonnie Bush, City Clerk Administrator
PASSED FOR FINAL ADOPTION this 22nd day of October 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-XX
and that it has been published or
posted in accordance with the
Charter of the City of Santa Cruz.
___________________________
City Clerk Administrator

19.60 ORDINANCE NO. 2024-17

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

UNITS TO MAINTAIN CONSISTENCY WITH STATE REGULATIONS, CLARIFY

EXISTING STANDARDS, AND REQUIRE PROPERTIES WITH RENTED ACCESSORY

DWELLING UNITS TO ENROLL IN THE RESIDENTIAL RENTAL INSPECTION SERVICE; 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.)
WHEREAS, accessory dwelling units contribute needed housing to the community’s housing stock and provide housing for family members, students, the elderly, in-home health care providers, the disabled, and others within existing neighborhoods, and homeowners who create accessory dwelling units may benefit from added income and an increased sense of security; and WHEREAS, at its December 13, 2022 meeting, the City Council approved Urgency Ordinance 2022-22, amending accessory dwelling unit regulations in the Santa Cruz Municipal Code to comply with implementation deadlines set by state laws AB 2221 and SB 897; and WHEREAS, at its January 24, 2023 meeting, the City Council extended the urgency ordinance through the end of 2024 with Ordinance 2023-01; and WHEREAS, amendments made by the urgency ordinance are now codified through a formal ordinance required to be approved prior to the end of 2024, thus rescinding the urgency ordinance; and
WHEREAS, in 2023, AB 976 (Ting) was signed into law, removing owner-occupancy requirements for properties with accessory dwelling units for any accessory dwelling unit created in 2025 and in perpetuity thereafter; and
WHEREAS, on February 6, 2024, the California Department of Housing and Community Development (HCD) sent a letter to the Department of Planning and Community Development detailing a review of the City’s accessory dwelling unit regulations and requiring several corrections to ensure ongoing compliance with state law.

19.61 ORDINANCE NO. 2024-17
2 WHEREAS, additional clarifications are needed to the accessory dwelling unit regulations in the Santa Cruz Municipal Code; and
WHEREAS, on August 15, 2024, the Department of Planning and Community Development held a community meeting to present proposed modifications to local accessory dwelling unit regulations and solicited feedback from the public; and WHEREAS, at its September 5, 2024 meeting, the Santa Cruz Planning Commission reviewed the proposed additions and modifications to the Santa Cruz Municipal Code and found that the public necessity, and the general community welfare, and good zoning practice shall be served and furthered; and that the proposed amendments are in general conformance with the principles, policies and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan; and
WHEREAS, at its September 5, 2024 meeting, the Santa Cruz Planning Commission considered the additions and modifications to the Santa Cruz Municipal Code as modifications to the Local Coastal Program and found that (1) the proposed amendment is deemed to be in the public interest; (2) the proposed General Plan and/or Local Coastal Program amendment is consistent and compatible with the rest of the General Plan and LCP and any implementation programs that may be affected; (3) the potential impacts of the proposed amendment have been assessed and have been determined not to be detrimental to the public health, safety, or welfare; and (4) the proposed amendment has been processed in accordance with the applicable provisions of the California Government Code and the California Environmental Quality Act (CEQA); and WHEREAS, at its September 5, 2024 meeting, the Santa Cruz Planning Commission passed a motion that recommended the City Council approve the proposed additions and amendments as well as any additional changes needed to comply with state ADU law; and WHEREAS, the proposed amendments and additions to the Santa Cruz Municipal Code fall within the analyzed development potential in the City of Santa Cruz’s existing 2030 General Plan Environmental Impact Report using the existing zoning and General Plan and, therefore, pursuant to California Code of Regulations, Title 14, section 15183 of the California Environmental Quality Act (CEQA) Guidelines, no further environmental review under the CEQA is required.

BE IT ORDAINED By the City of Santa Cruz as follows:

19.62 ORDINANCE NO. 2024-17
3 Section 1. Section 24.04.095 of Chapter 24.04 of the Santa Cruz Municipal Code regarding Notice of Administrative Coastal Permit for Accessory Dwelling Units is hereby added to read as follows:

24.04.095 NOTICE OF ADMINISTRATIVE COASTAL PERMIT FOR ACCESSORY

2. The notice shall include the following information:
a. Project Information. The name of the applicant; the city’s project case number assigned to the application; a general explanation of the matter to be considered; a general description, in text and/or diagram, of the location of the property that is subject to the coastal permit; b. Statement on Environmental Document. If a negative declaration, mitigated negative declaration, environmental impact report (EIR) has been prepared for the project, or if the project has been determined to be exempt, in compliance with the provisions of the California Environmental Quality Act (CEQA) and the city’s Environmental Guidelines, the notice shall include a statement that the decision will also include approval of the environmental determination;
c. The date of filing of the application;
d. A statement that the development is within the coastal zone and requires administrative coastal permit approval;
e. A statement of whether or not the coastal permit is appealable; and f. The procedures for appeal to the Coastal Commission, if applicable.

3. Notices shall be mailed as described in Section 24.04.100.(a)1.

19.63 ORDINANCE NO. 2024-17
4 Section 2. Section 24.04.130 of Chapter 24.04 of the Santa Cruz Municipal Code regarding Decision-Making Body With Final Authority on Application Approval is hereby amended to read as follows:

24.04.130 DECISION-MAKING BODY WITH FINAL AUTHORITY ON APPLICATION

1. The planning commission and city council may refer certain aspects of any application to the zoning administrator for final action.

2. The zoning administrator may refer any of the matters on which he/she is authorized to act to the planning commission or historic preservation commission.

Temporary uses, variations to
parking design requirements and
number of spaces, low risk alcohol
outlets, and half baths in accessory
buildings

ZA CPC/CC
Administrative Use Permit:

Variations to parking design
requirements or variations to number
of required spaces

ZA CPC/CC/CCC
Other uses as listed by individual
zoning districts as requiring an
Administrative Use Permit

ZA CPC/CC
Conditional Fence Permit ZA ZA CPC/CC

19.64 ORDINANCE NO. 2024-17
5 Public Hearing Requirement and Decision-Making
Body Which Can Approve an Application
No
Public
Hearing
Public Hearing Permits/Actions4
Action Recommendation Action
Appeal Bodies
(in order)
Slope Regulations Modifications
(Variance) in the Coastal Zone CPC CC
Slope Development Permit (on or
within 20 feet of a 50% or greater
slope) outside the Coastal Zone

ZA CPC/CC
Design Permit ZA CPC/CC

1. Substandard lots: new two-story
structures and second-story additions
with a single-family residential use,
excluding ADUs

ZA CPC/CC

2. Large homes per Section

24.08.450 ZA CPC/CC

3. Wireless telecommunications
facilities ZA ZA CPC/CC

4. New structures or improvements
to existing structures in the WCD
Overlay which are exempt or
excluded from coastal permit
requirements

ZA CPC/CC

5. New structures or improvements
to existing structures in the WCD
Overlay which require a coastal
permit

ZA CPC/CC

6. Residential development in R-L,
R-M, or R-H zone districts
conforming to all standards of
Section 24.12.185

ZA CPC/CC

19.65 ORDINANCE NO. 2024-17
6 Public Hearing Requirement and Decision-Making
Body Which Can Approve an Application
No
Public
Hearing
Public Hearing Permits/Actions4
Action Recommendation Action
Appeal Bodies
(in order)

7. Mixed-use or residential
development not within the R-L, RM, or R-H zone districts with no more than 50 dwelling units and
conforming to all standards of
Section 24.12.185.

ZA CPC/CC

8. Mixed-use or residential
developments not within the R-L, RM, or R-H zone districts with 51 dwelling units or more and
conforming to all standards of
Section 24.12.185

ZA CPC/CC

9. Mixed-use or residential
development not within the R-L, RM, or R-H zone districts with no more than 50 dwelling units and
varying from at least one and no
more than five standards of Section

24.12.185

ZA CPC/CC

8. Mixed-use or residential
development that varies from six or
more standards of Section 24.12.185
CPC CC
Demolition Permit

1. Single-family residential ZA CPC/CC

2. Multifamily residential CPC CC

3. Historic demolition permit HPC CC

4. Nonresidential ZA2 ZA2 CPC/CC
General Plan Text and Map
Amendments CPC CC/CCC3
Historic Alteration Permit HPC CC
Administrative Historic Alteration
Permit ZA HPC/CC
Historic Building Survey:

Building designation, deletion HPC CC

19.66 ORDINANCE NO. 2024-17
7 Public Hearing Requirement and Decision-Making
Body Which Can Approve an Application
No
Public
Hearing
Public Hearing Permits/Actions4
Action Recommendation Action
Appeal Bodies
(in order)
Historic District Designation HPC/CPC CC
Historic Landmark Designation HPC CC
Mobile Homes (Certificate of
Compatibility) ZA CPC/CC
Mobile Home Park Conversion CPC CC
Outdoor Extension Areas per
Section 24.12.192 ZA CPC/CC
Planned Development Permit CPC CC
Project (Major) Modification Hearing by ZA or body
approving application
Appeal to next
highest
body(ies)
Project (Minor) Modification ZA CPC/CC
Relocation of Structures Permit ZA CPC/CC
Revocation Permit Hearing by ZA or body
approving application
Appeal to next
highest
body(ies)
Sign Permit ZA CPC/CC
Special Use Permit CPC CC
Variance ZA CPC/CC
Watercourse Variance CPC CC
Watercourse Development Permit ZA CPC/CC
Zoning Ordinance Text and Map
Amendments:

19.67 ORDINANCE NO. 2024-17
8 Public Hearing Requirement and Decision-Making
Body Which Can Approve an Application
No
Public
Hearing
Public Hearing Permits/Actions4
Action Recommendation Action
Appeal Bodies
(in order)
1 For projects seaward of the mean high tide line, and in the case of appealable actions, the California Coastal Commission shall be the decision-making body which can finally approve an application. In the coastal zone, all proposed accessory dwelling units that require a coastal permit shall be processed in the manner described in Chapter 24.04 and Section 24.08.200 et seq. (including in terms of public noticing and process for appeal to the Coastal Commission) except that no public hearing shall be required. A coastal permit for an accessory dwelling unit is not locally appealable. An appeal of such a coastal permit within the appealable area of the coastal zone shall be made directly to the California Coastal Commission. In addition to all other applicable LCP requirements, standards for ADUs in the coastal zone are specified in Section 24.12.140.2.
2 Such permits shall be issued administratively, without a public hearing, unless a cultural resources evaluation, prepared by a qualified consultant as determined by the zoning administrator, determines that the building or structure is eligible for listing on the city historic building survey.
3 California Coastal Commission in case of CLUP policy, CLIP elements. 4 At a regularly scheduled meeting, a majority of the council may take an action to direct any project or amendment to be called from a lower hearing body prior to a final action or during an appeal period in accordance with Section 24.04.175(2). 5 An appellant must exhaust all local appeals before an appeal can be made to the California Coastal Commission, unless the coastal permit is processed concurrently with other permits pursuant to Section 24.04.150 (for example, a design permit, a use permit, etc.). Because the city charges an appeal fee pursuant to Section 24.04.070 for appeals of coastal permits processed concurrently with other permits, Section 30603(c) of the Coastal Act does not require an appellant to exhaust all local appeals before a project can be appealed to the California Coastal Commission. The city does not charge a fee for local appeals of standalone coastal permits (i.e., where the coastal permit is not accompanied by any other permits).

Santa Cruz City CouncilOctober 22, 2024

Santa Cruz City Council
October 22, 2024