FY 2025 DEVELOPMENT IMPACT FEE ANNUAL REPORT FOR
CHILDCARE IMPACT FEE FUND FROM JULY 1, 2024 TO JUNE 30, 2025
1 – DESCRIPTION: A Childcare Impact Fee is assessed in connection with the issuance of certain development permits in The City designated by City Council Resolution NS-29,812. This fee was effective on June 26, 2021. While the education of children has been acknowledged as a public responsibility, the pre-school and after-school care of children traditionally has been seen as a private issue for families, especially women, and not of public concern; however, consideration for the needs of children is a critical part of community planning and is part of an integrated system that supports human development, labor force participation, and job opportunities. The benefits of early childcare development and care in the community speak to the labor market, business recruitment, and retention; improved school readiness and success; and reduced public cost for remediation, prison, and welfare. As such, the City’s General Plan calls for accessible, high-quality childcare facilities and services and includes objectives and policies to encourage an adequate and diverse supply of childcare facilities and services citywide and includes a Childcare Impact fee on new residential and nonresidential development due to its impacts on childcare needs.
2 – FEE AMOUNT: The Childcare Impact Fee in FY 2025 was defined as:
Childcare Impact Fee (Fund 218)
FY 2025 Cost Per Ft2
Residential Use Maximum Per
Bedroom
Fee on July 1, 2024* Fee on January 1, 2025*
Single-Family
$373.00
614 ft2 max
$0.607 $0.613
Multi-Family - $0.455 $0.460
FY 2025 Cost Per ft2
Commercial Use Cost Per
1,000 ft2
Fee on July 1, 2024* Fee on January 1, 2025*
Retail - $1.657 $1.674
Office - $1.928 $1.947
Industrial - $0.769 $0.777
Hotel - $0.585 $0.591
*Fees are increased annually by the Construction Cost Index on January 1, 2025.
25.5
FY 2025 DEVELOPMENT IMPACT FEE ANNUAL REPORT FOR
CHILDCARE IMPACT FEE FUND FROM JULY 1, 2024 TO JUNE 30, 2025 3 & 4 – FUND BALANCES, FEES COLLECTED, & INTEREST EARNED:
The total fees collected were $125,491.31.
Childcare Impact Fee (Fund 218) – Account Balance
Collections Accounts Account Balance
Impact Fees 218-50-72-1303-46347 $115,781.46
Interest 218-00-00-0000-46110 $7,429.73
Unrealized Loss/Gain 218-00-00-0000-46115 $2,280.12
Administrative Fee
(Excluded from Total due to General Fund 101 Allocation) 101-00-00-0000-46906 $2,233.50
(Excluded from Total)
Total for FY 2025 $125,491.31
Childcare Impact Fee (Fund 218) – Disbursements
Disbursements
Administrative $0.00
Total Disbursements $0.00
% of Cost Funded 0%
Childcare Impact Fee (Fund 218) – Ending Available Fund Balance by Fiscal Year* Collections
FY 2021
Ending
6/30/2021
FY 2022
Ending
6/30/2022
FY 2023
Ending
6/30/2023
FY 2024
Ending
6/30/2024
FY 2025
Ending
6/30/2025
Impact Fees $1,459.97 $19,496.46 $51,014.42 $20,716.30 $115,781.46 Interest $0.01 $40.40 $676.25 $2,795.45 $7,429.73
Unrealized Loss/Gain $0.18 $(273.76) $(868.99) $170.40 $2,280.12 Subtotal By Fiscal Year $1,460.16 $19,263.10 $50,821.68 $23,682.15 $125,491.31 Administrative Fee
(Excluded from Total)
$19.08 $387.58 $1,003.90 $315.01 $2,233.50
Ending Fund Balance $1,460.16 $20,723.26 $71,544.94 $95,227.09 $220,718.40 *Ending Available Fund Balance is unaudited and is before consideration of remaining interest accrual. 5 – REFUND: The refund amount was $0.00.
6 – IDENTIFICATION OF PROJECT ON WHICH FEES WERE EXPENDED & AMOUNT FOR EACH IMPROVEMENT EXPENDED: Not applicable.
7 – TOTAL PERCENTAGE OF THE COSTS OF THE PUBLIC IMPROVEMENT FUNDED WITH FEES: Not applicable.
8 – APPROXIMATE DATE BY WHICH CONSTRUCTION OF IMPROVEMENTS WILL COMMENCE: Not applicable.
9 – INTERFUND TRANSFER OR LOAN MADE FROM FUND: Not applicable.
25.6 City Council
AGENDA REPORT
DATE: 11/03/2025
AGENDA OF: 11/18/2025
DEPARTMENT: Parks and Recreation
SUBJECT: 2025 Santa Cruz Wharf Bent 103-104 Repair (c302613) - Notice of Completion (PR)
LOCATION: District 4
RECOMMENDATION: Motion to accept the work of Power Engineering Construction Company (Alameda, CA) as completed per plans and specifications and authorize the filing of the Notice of Completion for the 2025 Santa Cruz Wharf Bent 103-104 Repair Project (c302613) and authorize the Parks and Recreation Director to sign the Notice of Completion as the Owner’s Authorized Agent.
BACKGROUND: The Phase II Structural Assessment of the entire Wharf conducted by Moffatt & Nichol in April 2025 identified subsidence in the pedestrian sidewalk at Bents 103 and 104. A secondary inspection in June 2025 identified missing piles, damage to caps and stringers, and accelerated subsidence of the decking and asphalt paving atop the stringers. In conjunction with a recommendation from Moffatt & Nichol, longtime Wharf consulting engineers, Wharf Staff cordoned off the area to preserve public safety.
Moffatt & Nichol subsequently developed plans and specifications to address the conditions and restore the area to a safe and useable condition.
The City Council approved Resolution No. NS-30,538 on August 12, 2025 approving the plans and specifications for the 2025 Santa Cruz Wharf Bent 103-104 Repair Project and authorizing the City, via an emergency procurement, to execute contracts without formal bids for construction. The resolution further authorized staff to award the contract to Power Engineering Construction Company.
Power Engineering began construction in October 2025. The work included the installation of new piles, caps, stringers, decking and asphalt at Bents 103 and 104.
DISCUSSION: Work for this project is now complete. The project has been inspected by Moffatt & Nichol and found to be completed in accordance with the plans and specifications.
26.1 CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: This project was previously deemed exempt under the following statutory and categorical exemptions:
Public Resources Code Section 21080(b)(2) – emergency repairs to public service facilities necessary to maintain service; CEQA Guidelines Section 15301 Existing Facilities (Class 1 Exemption); Section 15302 Replacement or Reconstruction (Class 2 Exemption); and Section 15303 New Construction or Conversion of New Structures. (Class 3 Exemption). The project involves the repair, maintenance, and minor alteration of an existing facility and consists of the replacement and reconstruction of existing structures where the new ones will be located on the same site with the same purpose and no expansion of use. None of the exceptions to exemptions listed in CEQA Guidelines 15300.2 apply.
HEALTH IN ALL POLICIES (HiAP): The Santa Cruz Wharf is the longest timber Wharf in the western hemisphere and is a historic asset in the City of Santa Cruz. The Wharf is overseen and managed by the Parks and Recreation Department in close coordination with Public Works, Fire, and Economic Development and Housing. The City not only maintains the Wharf but also activates it through numerous annual events and activities ranging from Woodies on the Wharf to the Tuesday Night Live summer concert series and much more. Beyond these events, the Wharf provides unique public access to experience the Monterey Bay National Marine Sanctuary and is home to roughly twenty local businesses. The Parks and Recreation Department’s mission is to “provide quality public spaces and experiences that build a healthy community, foster equity, and better the environment.” Through the implementation of this mission, the Parks and Recreation Department seeks to advance the core pillars of HiAP – health, equity, and sustainability.
FISCAL IMPACT:
1. The recommendation in this report impacts the General Fund: No
2. This recommendation requires a budget adjustment: No
3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: The 2025 Santa Cruz Wharf Bent 103-104 Repair Project (c302613) was completed within budget at a total cost of $397,217.22. There is no impact to the General Fund.
Prepared By:
Norman F. Daly
Development Manager
Submitted By:
Tony Elliot
Parks & Recreation Director
Approved By:
Matt Huffaker
City Manager
ATTACHMENTS:
1. BENT 103-104 NOTICE OF COMPLETION.PDF
26.2 Notice of Completion (Revised Oct 2021)
(Space above for Recorder’s use only)
This instrument is being recorded for the benefit of the City of Santa Cruz.
No recording fee is required pursuant to Government Code § 27383.
NOTICE OF COMPLETION
(CA Civil Code Sections 8102 and 9204)
NOTICE IS HEREBY GIVEN THAT:
The undersigned is an authorized representative of the owner of the interest or estate stated below.
1. The Owner’s Name and Address. The Project owner is the City of Santa Cruz, a municipal corporation (the “City”). The City’s mailing address is 809 Center Street, Rm. 10, Santa Cruz, California 95060.
The City of Santa Cruz has the following interest in the subject Property described below:
: City Property
2. Project Title and Number. The full name of the work of improvement/public works project (the “Project”) which is the subject of this Notice of Completion is: 2025 Santa Cruz Wharf Bent 103-104 Repair Project c302613
3. Nature of Work Performed on the Property or Materials Furnished for the City. The Project consisted of work described as: Installation of new piles, caps, stringers, decking and asphalt.
4. The general site location description or address (the “Property”) of the public improvement is located at: 21 Municipal Wharf, Santa Cruz, CA 95060
5. Name and Address of Contractor. The Contractor on the Project is: Power Engineering Construction Company, 1501 Viking St, Suite 200, Alameda, CA 94501.
6. Construction Lender. The name and address of the construction lender, if any, is: None
7. Date of Completion. The Project on the Property was completed on: October 31, 2025
8. The filing of this Notice of Completion was authorized by the Santa Cruz City Council Minute Order on Tuesday, November 18, 2025
DATE: ___________________
Tony Elliot
Director of Parks and Recreation
City of Santa Cruz
RECORDED AT THE REQUEST OF:
City of Santa Cruz, Parks and Recreation
Attn: Norman F. Daly
WHEN RECORDED MAIL TO:
City Clerk’s Department
809 Center Street, Room 9
Santa Cruz, CA 95060
26.3 City Council
AGENDA REPORT
DATE: 10/30/2025
AGENDA OF: 11/18/2025
DEPARTMENT: Parks and Recreation
SUBJECT: Budget Adjustment for Measure Q Allocation and Associated Expenditure Plan (PR)
LOCATION: Citywide
RECOMMENDATION: Motion to adopt a resolution amending the FY 2026 budget to appropriate the 2026 Measure Q per capita allocation of $544,567 into the following projects: the Wildfire Resilience, Biodiversity, Improved Urban Forest Management Project (p3026XX) and the Wildfire Resilience, Biodiversity, Improved Open Space Management Project (p3026XX).
BACKGROUND: Approved by Santa Cruz County voters in November 2024, the Santa Cruz County Safe Drinking Water, Clean Beaches, Wildfire Risk Reduction, and Wildlife Protection Initiative (Measure Q) is a local effort aimed at protecting and enhancing the county’s natural resources. This initiative prioritizes water quality, wildfire prevention, habitat restoration, and the creation of resilient ecosystems to ensure the health and well-being of Santa Cruz County’s environment and its residents (www.santacruzcountyca.gov/measureQ) Measure Q is funded through an annual parcel tax of $87 and is expected to generate more than $7 million annually countywide. These funds will support projects, including:
Water Conservation and Quality: Protecting and replenishing local water supplies by enhancing watershed health, reducing erosion, and safeguarding rivers, creeks, and groundwater resources.
Wildfire Risk Reduction: Preventing catastrophic wildfires by developing shaded fuel breaks, managing forests to reduce dangerous fuel loads, and maintaining defensible spaces around communities.
Wildlife and Habitat Protection: Preserving biodiversity by restoring critical habitats, protecting wildlife corridors, and conserving coastal and forest ecosystems. Clean Beaches and Coastal Protection: Keeping beaches free from pollution, enhancing public access, and protecting marine life from environmental threats. Community Resilience: Supporting projects that reduce climate risks, improve recreational opportunities, and provide equitable access to parks, trails, and open spaces.
Measure Q funding prioritization focuses on:
Leveraging Additional Resources: Projects that can attract matching funds from state, federal, or private grants to amplify the impact of local investments.
27.1 Equity and Accessibility: Special consideration is given to projects that benefit disadvantaged communities or provide equitable access to natural spaces. Multiple Benefits and Climate Resilience: Projects that address overlapping challenges, such as reducing climate risks while improving water quality or public access, are prioritized to deliver comprehensive solutions.
Geographic and Ecological Need: Funding is allocated to areas with acute environmental challenges, such as wildfire-prone forests or flood-prone watersheds, to address urgent needs and mitigate risks.
A Citizens Oversight Advisory Board (COAB) was created for transparency and accountability.
The COAB engages with the community, helps develop vision plans to guide awards and provides annual reporting to the Board of Supervisors. All meetings are open to the public.
Of the nine subject-matter experts on the COAB, five are appointed by the County’s Board of Supervisors and one by each city in the county. The City of Santa Cruz’s representative on the COAB is Rachel Dann who also serves as the Chair. The COAB meets no less than quarterly.
Members of the public are welcome to attend and provide input.
This COAB is responsible for the following tasks and duties:
Conducts public hearings and gathers input on funding priorities. Reviews annual reports from agencies and organizations funded by Measure Q. Supports the development and approves the vision plan every five years to guide investments based on current needs and best practices.
The City anticipated approximately $546,000 per year through the Measure Q per capita allocation, and has confirmed the 2026 allocation to be $544,567. The Parks & Recreation Department has led the City of Santa Cruz’s efforts to develop an expenditure plan in accordance with the goals and objectives set forth by Measure Q (attachment entitled Measure Q 3-year best management and operations plan.pdf). In addition to Parks & Recreation, City departments including the Water Department, Fire Department, City Manager, and others have been included in developing ideas on how to optimize the annual funding.
The City Council unanimously approved the draft Measure Q Expenditure Plan on September 9, 2025. Following City Council approval, the Expenditure Plan was reviewed and approved by the City's COAB representative, Santa Cruz County Parks, and the County Office of Response, Recovery and Resilience.
DISCUSSION: The Measure Q budget adjustment will implement the City Council's September decision by amending the FY 2026 budget to allocate resources to open spaces and, specifically, to wildfire prevention, vegetation management, forestry, and watershed protection (attachment entitled Open Space Measure Q Visual.pdf). The funding will be utilized to hire one staff person to be dedicated to forestry management (i.e. an Assistant Urban Forester) and one staff person to support open space management. The balance of the funding will augment the Parks Division’s work in vegetation management and the City’s broader efforts to implement and act upon the 5- Year Wildfire Resiliency Plan. Two projects will be created to track the use of these Measure Q funds - the Wildfire Resilience, Biodiversity, Improved Forest Management Project (p3026XX) and the Wildfire Resilience, Biodiversity, Improved Open Space Management Project (p3026XX).
27.2 CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The adoption of the proposed expenditure plan does not constitute a “project” under CEQA. The action is limited to financial planning and does not cause a direct or reasonably foreseeable indirect physical change to the environment. Therefore, no further environmental review under CEQA is required for the allocation of resources. Environmental review for any potential projects undertaken with funding allocated by the plan with be conducted at the time those individual projects are formally proposed and authorized.
HEALTH IN ALL POLICIES (HiAP): Measure Q funding will advance the sustainability pillar of Health in All Polices. By improving the safety of our open spaces through wildfire prevention, vegetation management, forestry, and watershed protection, the City will be providing a sustainable resource accessible to the entire community.
FISCAL IMPACT:
1. The recommendation in this report impacts the General Fund: Yes
2. This recommendation requires a budget adjustment: Yes
3. The recommendation creates an on-going expenditure commitment: Yes FISCAL IMPACT DESCRIPTION: The Measure Q per capita allocation will add $544,567 of funding to the General fund with $282,252 directed to the Wildfire Resilience, Biodiversity, Improved Forest Management Project (p3026XX) and $262,315 directed to the Wildfire Resilience, Biodiversity, Improved Open Space Management Project (p3026XX).
Prepared By:
Lindsay Bass
Principal Management
Analyst
Submitted By:
Tony Elliot
Parks and Recreation Director
Approved By:
Matt Huffaker
City Manager
ATTACHMENTS:
1. MEASURE_Q_3-YEAR_BEST_MANAGEMENT_AND_OPERATIONS_PLAN.PDF
2. OPEN_SPACE_MEASURE_Q_VISUAL.PDF
3. BUDGET ADJUSTMENT.PDF
27.3 3-Year Best Management & Operations Plan
Open Space and Urban Forestry (Aligned with Measure Q Funding Priorities) Year 1 – Build Capacity & Establish Baselines
• Urban Forestry
o Hire Assistant Urban Forester to lead tree inventory, equity-based planting, stormwater management, and wildfire vegetation projects.
o Launch equity-focused tree planting initiative and begin shaded fuel break development (5–10 acres).
o Establish baseline tree canopy inventory and mapping system. • Open Space
o Hire 1 Park Maintenance staff to expand operational capacity. o Prioritize invasive species removal, erosion control, and trail repairs following winter storm impacts.
o Conduct condition assessment of ~5 miles of trails and surrounding open space lands. • Monitoring & Reporting
o Initiate annual Measure Q progress report.
o Establish baseline data: canopy coverage, trail condition ratings, acres of invasive species cover.
Year 2 – Expand Programs & Strengthen Resilience
• Urban Forestry
o Plant 300–400 climate-adapted trees in priority neighborhoods. o Install bioswales and tree wells in medians and rights-of-way to improve stormwater retention.
o Expand shaded fuel breaks and defensible space projects to 15–20 acres. • Open Space
o Continue invasive species removal and targeted habitat restoration in high-priority sites. o Resurface or repair ~2 miles of trails; improve erosion control and drainage features. o Expand volunteer programming (Adopt-a-Park, CityServe, conservation corps partnerships).
• Monitoring & Reporting
o Report annual progress on canopy gains, shaded fuel break acreage, trail miles maintained, and habitat restored.
o Track volunteer hours and participation levels.
o Document stormwater/erosion benefits of green infrastructure projects.
Year 3 – Optimize & Sustain
• Urban Forestry
o Reach 1,000 cumulative trees planted and maintained, with canopy gains documented. o Complete 30+ acres of shaded fuel breaks and defensible space across open space lands. o Expand equity-based planting program across all identified priority neighborhoods.
27.4 3-Year Best Management & Operations Plan
Open Space and Urban Forestry (Aligned with Measure Q Funding Priorities) • Open Space
o Complete full inspection and maintenance cycle for ~5 miles of trails. o Achieve measurable habitat restoration outcomes (20+ acres restored; significant invasive cover reduction).
o Formalize ongoing monitoring protocols for erosion control, biodiversity, and habitat health.
• Monitoring & Reporting
o Publish 3-year cumulative progress report to Council and Measure Q Oversight Board. o Document leveraged funding, cost savings, and community engagement outcomes. o Establish next-phase priorities based on monitoring data and community needs.
Performance Metrics (Tracked & Reported Annually)
• Urban Forestry
o Trees planted and maintained.
o Percent canopy coverage increase in priority areas.
o Acres of shaded fuel breaks/defensible space created. o Green infrastructure installed (bioswales, tree wells). • Open Space
o Miles of trails maintained (5-mile system).
o Acres of habitat restored and invasive species removed. o Erosion control improvements completed.
o Volunteer participation (hours, events, projects).
Summary:
This 3-Year Plan emphasizes urban forestry and open space management scaled to Santa Cruz’s system: 5 miles of trails and adjacent open spaces. The phased approach builds capacity in Year 1, expands program delivery in Year 2, and sustains outcomes in Year 3. Built-in monitoring and reporting ensure accountability and measurable progress on wildfire resilience, water quality, erosion control, habitat restoration, equitable canopy growth, and expanded community stewardship.
27.5 CITY OF SANTA CRUZ
OPEN SPACE PROGRAM
PogonipDelaveaga WildernessMoore CreekArroyo Seco CanyonArana GulchNeary LagoonJesse St Marsh CalFire Forest Health Grant
Contracted Biologist
Staff
SupervisorSr PMWPMWMWA
Wildfire Resiliency
OGALS Grant
FEMA Emergency Funds
Santa Cruz Mountain Trail Stewardship CalFire Prison Crews Arana Gulch Management Working Group
Contracted Ranchers
California Conservation Corp Adopt-a-Park Agreements
Contracted Encampment Remediation
Contracted Firebreak Mowing
Summer Youth Trails Program
Permits Management
CityServe
CFSCC Grant
Fundamental Voids
Inability to protect critical habitats and resourcesInability to maintain and improve fire roads,trails, and visitor facilitiesInability to enforce basic parks ruls & regulationsInability to reduce fuel ladders along privatepropertyInability to brush trails for public accessInability to provide interpretation for the publicInability to control invasive speciesInability to tag illegal encampments for removalInability to provide trail monitoring/patrolInability to provide first aid presence made for free at coggle.it
27.6 City of Santa Cruz
BUDGET ADJUSTMENT REQUEST
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NET: $
REQUESTED BY DEPARTMENT HEAD
APPROVAL
BUDGET/ACCOUNTING
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FINANCE DIRECTOR
APPROVAL
CITYMANAGER
APPROVAL
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10/27/2025
Corresponding budget adjustment to implement the expenditure plan approved and adopted by City Council on 09/09/25 (Item 16).
Additional budget adjustment lines are on the additional, attached spreadsheet. 236-00-00-0000-41996 Water & wildlife protection parcel tax 544,567 544,567
236-30-41-3120-52268 Vehicle lease-outside 12,000
236-30-41-3120-52304 Training 2,000
236-30-41-3120-52403 Telecommunications service- outside 1,200 236-30-41-3120-53118 Uniform supplies 1,000
236-30-41-3120-53105 Small tools and equipment 12,000
236-30-41-3120-54990 Miscellaneous supplies and services 129,510 236-30-41-3120-52121 o302601-100-2010-0 Staff labor charge back 229,147 236-30-41-3105-52268 Vehicle lease-outside 12,000
236-30-41-3105-52304 Training 2,000
236-30-41-3105-52403 Telecommunications service-outside 1,200 402,057
142,510
Lindsay
Bass
Digitally signed
by Lindsay Bass
Date: 2025.10.27
15:05:07 -07'00'
Mike
Godsy
Digitally signed
by Mike Godsy
Date: 2025.10.30
11:56:52 -07'00'
Digitally signed
by Emily Burton
Date: 2025.10.31
'09:36:21 -07'00
Elizabet
h Cabell
Digitally signed by
Elizabeth Cabell
Date: 2025.11.04
15:39:34 -08'00' 27.7
Continued
GL Account String Account Description Amount
236-30-41-3105-53118 Uniform supplies 1,000
236-30-41-3105-53105 Small tools and equipment 12,000
236-30-41-3105-54990 Miscellaneous supplies and services 129,510 Subtotal expenditures- page 1 402,057
Subtotal expenditures- current page 142,510
Total expenditure 544,567
NET -
Expenditures
Measure Q Budget Adjustment
27.8 City Council
AGENDA REPORT
DATE: 10/30/2025
AGENDA OF: 11/18/2025
DEPARTMENT: Public Works
SUBJECT: Amending the FY 2026 Budget and Appropriation of Funds for Citywide Intersection Daylighting HSIP 12 (c402607), Water Street Protected Bike Lanes HSIP 12 (c402608), and Unsignalized Crossing Improvement Project HSIP 12 (c402610) – Budget Adjustment (PW)
LOCATION: Citywide
RECOMMENDATION: Motion to adopt a resolution to amend the FY 2026 budget and appropriate funds in the amount of $2,624,310 from unanticipated revenue for expenses for Citywide Intersection Daylighting HSIP 12 (c402607), Water Street Protected Bike Lanes HSIP 12 (c402608), and Unsignalized Crossing Improvement Project HSIP 12 (c402610).
BACKGROUND: At the October 22, 2024 City Council meeting, City Council approved the application for three grants to the Highway Safety Improvement Program Cycle 12. The City of Santa Cruz (City) was awarded for all three projects.
DISCUSSION: 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). Staff submitted three projects to the Cycle 12 grant cycle: for Citywide Intersection Daylighting HSIP 12 (c402607), Water Street Protected Bike Lanes HSIP 12 (c402608), and Unsignalized Crossing Improvement Project HSIP 12 (c402610), and all three were awarded.
This revenue was not expected at the time of budget adoption. In order to receive the funding for these projects, a budget adjustment is needed to appropriate $2,624,310 between the three projects.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: This action does not require CEQA determination. The individual projects will be evaluated separately for CEQA and are expected to be exempt.
28.1 HEALTH IN ALL POLICIES (HiAP): This project promotes the following Health in All Policies Conditions:
Health and Wellness, Heathy Environments and Safe & Just Community. This effort is in alignment 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 of transportation.
FISCAL IMPACT:
1. The recommendation in this report impacts the General Fund: No
2. This recommendation requires a budget adjustment: Yes
3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: 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
Principal Transportation
Planner
Submitted By:
Nathan Nguyen, P.E.
Director of Public Works
Approved By:
Matt Huffaker
City Manager
ATTACHMENTS:
1. BUDGET ADJUSTMENT – C402607.PDF
2. BUDGET ADJUSTMENT – C402608.PDF
3. BUDGET ADJUSTMENT – C402610.PDF
28.2 City of Santa Cruz
BUDGET ADJUSTMENT REQUEST
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Implement daylighting and pedestrian crossing improvements at various non-signalized locations. Grant will cover 90% of expenses. This was approved by Council 10/22/24.
221-40-64-9330-43163 c402607 - 111-1043-0 Federal capital grants - HSIP 1,932,300 Citywide Intersection Daylighting HSIP 12
1,932,300
221-40-64-9330-57307 c402607 - 100-2020-0 Pedestrian/bike systems 2,147,000 Citywide Intersection Daylighting HSIP 12
2,147,000
-214,700
Shelley
Horrow
Digitally signed by
Shelley Horrow
Date: 2025.06.17
12:07:14 -07'00'
Nathan N.
Nguyen
Digitally signed by
Nathan N. Nguyen
Date: 2025.10.20
08:14:46 -07'00'
Digitally signed
by Emily Burton
Date: 2025.10.31
'08:46:55 -07'00
Elizabet
h Cabell
Digitally signed by
Elizabeth Cabell
Date: 2025.11.03
05:15:44 -08'00' 28.3
City of Santa Cruz
BUDGET ADJUSTMENT REQUEST
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2026
07/10/2025
Construct separated bike lanes on Water Street to fill a network gap and connect to existing separated bike infrastructure in a high active transportation use area. Grant will cover 90% of expenses. This was approved by Council 10/22/24. 221-40-64-9330-43265 c402608 - 216-1043-0 State capital grants HSIP 342,900 Water St Protected Bike Lanes HSIP 12
342,900
221-40-64-9330-57307 c402608 - 100-2020-0 Pedestrian/bike systems 381,000 Water St Protected Bike Lanes HSIP 12
381,000
-38,100
Shelley
Horrow
Digitally signed by
Shelley Horrow
Date: 2025.06.17
12:06:26 -07'00'
Nathan N.
Nguyen
Digitally signed by
Nathan N. Nguyen
Date: 2025.10.20
08:13:45 -07'00'
Digitally signed
by Emily Burton
Date: 2025.10.31
'08:49:35 -07'00
Elizabet
h Cabell
Digitally signed by
Elizabeth Cabell
Date: 2025.11.03
09:28:48 -08'00' 28.4
City of Santa Cruz
BUDGET ADJUSTMENT REQUEST
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25EXPENDITURE ACCOUNT TITLE
NET: $
REQUESTED BY DEPARTMENT HEAD
APPROVAL
BUDGET/ACCOUNTING
5(9,(:('
FINANCE DIRECTOR
APPROVAL
CITYMANAGER
APPROVAL
5HVR
352-(&7
352-(&7
$02817
$02817
&RXQFLO$SSURYDO
TOTAL EXPENDITURE
TOTALREVENUE
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Clear Form
2026
09/16/2025
To enhance safety at various non signalized intersections in the City of Santa Cruz. 221-40-62-9330-43265 c402610 216-1043-0 Unsignalized Crossing Imp Project HSIP 12 349,110 349,110
221-40-62-9330-57307 c402610 100-2020-0 Unsignalized Crossing Imp Project HSIP 12 387,900 387,900
-38,790
Shelley
Horrow
Digitally signed by
Shelley Horrow
Date: 2025.09.16
12:03:58 -07'00'
Nathan N.
Nguyen
Digitally signed by
Nathan N. Nguyen
Date: 2025.10.20
08:13:01 -07'00'
Digitally signed
by Emily Burton
Date: 2025.10.31
'08:50:38 -07'00
Elizabet
h Cabell
Digitally signed by
Elizabeth Cabell
Date: 2025.11.03
09:29:23 -08'00' 28.5
City Council
AGENDA REPORT
DATE: 10/30/2025
AGENDA OF: 11/18/2025
DEPARTMENT: Public Works
SUBJECT: Engineering and Traffic Survey Extension to 2032 (PW) LOCATION: Citywide
RECOMMENDATION: Motion to adopt a resolution certifying the 2018 Engineering and Traffic Survey to be extended 14 years to 2032 for radar enforcement and rescinding Resolution No. NS-29,452.
BACKGROUND: On October 9, 2018, City Council adopted the Engineering and Traffic Survey (E&TS) establishing prima facie speed limits through the City of Santa Cruz (City).
Speed limits are normally set near the 85th percentile speed that statistically represents one standard deviation above the average speed and establishes the upper limit of what is considered reasonable and prudent. After speeds are measured on a roadway, the California Vehicle Code prescribes rounding rules to establish the posted speed limit. That evaluation and rounding exercise was completed in 2018 to establish the current citywide speed limits.
Assembly Bill 43 amended California Vehicle Section 40802 to allow agencies to extend speed studies to 14 years, if a registered professional engineer determines no significant changes have occurred on the roadways. The California Manual for Setting Speed Limits suggests reviewing factors such as the 85th percentile speed, roadway configuration, or collisions, to establish those findings. Staff completed that review, as discussed below to establish that no changes had occurred that would impact the posted speed limits. The Public Works Director and Transportation Manager notified the Chief of Police that the limits could be extended through 2032, as shown in the 2025 ETS Extension Letter.
DISCUSSION: An updated speed study was performed where roadway modifications occurred after the prior 2018 speed study. Typical changes to roads consisted of new bike lanes or crossings. Fifteen locations were identified, shown in the Map of Roadway Modifications. The improvements identified all occurred between 2020 and 2023. Speed studies were conducted in June and July 2025 on the modified segments at the location of 2018 speed study in accordance with current guidance. Overall, measured speeds stayed about the same as recorded in 2018 and are summarized in the Speed Data attachment. The measured speeds and rounding rules were reviewed against the adopted limits in 2018 to verify if they were still applicable. The new speed data did not change the applicable posted speed limits.
29.1 A review of collision records was unsuccessful due to the timing of available crash data and completion dates for the roadway modifications. The Statewide Transportation Injury Mapping System (TIMS) is still provisional for 2024 and 2025 which doesn’t provide a sufficient sample size from when the projects were completed. The City is currently undertaking an update to the Local Roadway Safety Plan as part of its Safe Streets for All and Active Transportation Plan effort which will review collision data citywide to establish corridors that are eligible for additional speed limit rounding rules. As a part of that effort staff will review corridors citywide for additional speed reductions in the future. Posted speed limits alone do not reduce travel speeds; modifications to the roadway geometry are also required.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed recommendations are not considered a project under the California Environmental Quality Act (CEQA) because they do not have the potential to cause physical change in the environment directly or indirectly.
HEALTH IN ALL POLICIES (HiAP): This project promotes the following Health in All Policies pillars: of Public Health and Sustainability by improving traffic safety through speed enforcement programs which can reduce speeds and severity of collisions which leads to the safety of roadways that supports bike and pedestrian activities.
FISCAL IMPACT:
1. The recommendation in this report impacts the General Fund: No
2. This recommendation requires a budget adjustment: No
3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: There is no impact to the General Fund.
Prepared By:
Chris Martinez
Engineering Technician
Submitted By:
Nathan Nguyen, P.E.
Director of Public Works
Approved By:
Matt Huffaker
City Manager
ATTACHMENTS:
1. RESOLUTION.DOCX
2. 2025 ETS EXTENSION LETTER WITH 2018 ETS STAMPED.PDF
3. MAP OF ROADWAY MODIFICATIONS.PDF
4. SPEED DATA.PDF
29.2 RESOLUTION NO. NS-30,XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ CERTIFYING THAT THE 2018 ENGINEERING AND TRAFFIC SURVEY BE EXTENDED FOR FOURTEEN YEARS TO 2032 FOR RADAR ENFORCEMENT ON CERTAIN STREETS AND RESCINDING RESOLUTION NO. NS-29,452
WHEREAS, the City of Santa Cruz adopted Resolution No. NS-29,452 on October 9, 2018 to certify the Engineering and Traffic Survey 2018 to be used for the enforcement of prima facie speed of traffic on the designated streets with the use of radar or other electronic devices; and WHEREAS, the 2018 Engineering and Traffic Survey (E&TS) satisfies the requirements for an EXTENSION TO 14-YEARS per the California Vehicle Code; and WHEREAS, the Director of Public Works and Transportation Manager have determined that no significant roadway modifications have occurred since 2018 that would impact adopted speed limits; and
WHERAS, The Director of Public Works has notified the Chief of Police in writing that the 2018 E&TS is valid until 2032 in accordance with the California Manual for Setting Speed Limits; and
WHEREAS, The City of Santa Cruz, in accordance with the California Vehicle Code has certified that the 2018 E&TS can be extended 14 years to 2032 and can be used for the enforcement of prima facie speeds on the following streets, by the use of radar or other electronic devices:
Street Name Street Limits
Speed
Limit
3rd St. Beach St. - Riverside Ave. 25
Almar Av. Mission St. - City Limits 25
Barson St. Riverside Ave. - Ocean St. 25
Bay St. California St. - West Cliff Dr. 30
Bay St. Mission St.- California St. 25
Bay St. Escalona Dr.- Mission St. 25
Bay Drive Escalona Dr. - High St. 30
Beach St. W Cliff Dr. - 3rd St. 25
N. Branciforte Ave. Water St. - Soquel Ave. 25
N. Branciforte Water St.- Faimount Ave. 30
N. Branciforte Fairmount.- Camille Ln. 25
S. Branciforte Ave. Soquel Ave.- Broadway 25
Broadway Ocean St.- Pine St. 25
Broadway Pine St. - Frederick St. 25
Broadway Ocean St. - San Lorenzo Bridge 25
California Av. Bay & Errett Circle 25
29.3 RESOLUTION NO. NS-XX,XXX
Street Name Street Limits
Speed
Limit
California St. Bay St. - Laurel St. 25
Carbonera Dr. Isbel Dr.- El Rancho Dr. 25
Cayuga St. Soquel Ave.- Broadway 25
Cayuga St. Broadway - Hiawatha Ave. 25
Center St. Mission St. - Pacific Ave. 25
Chestnut St. Laurel St. - Mission St. 25
Chilverton St. Branciforte Ave. - Morrissey 25
Coral St. River St - Evergreen St. 25
Delaware Av, Swift St.- Shaffer Rd. 30
Delaware Av, Swift St. - Woodrow Ave. 25
Delaware Av, Laguna Woodrow Ave - Bay 25
East Cliff Dr/San Lorenzo Blvd Broadway - Alhambra 25
Elk St. Goss Ave.- Rooney St. 25
Emeline Av, Sutphen - Grant St. 25
Encinal St. River St. - DuBois St. 25
Escalona Dr. Grandview- Highland 25
Fair Av. Delaware Ave. - West Cliff Dr. 25
Fair Av. Delaware Ave - Mission St. 25
Fairmount Av. N. Branciforte - Route 1Ramp 25
Frederick St. Broadway & south end 25
Frederick St. Broadway & Soquel Ave. 25
Front St. Pacific Ave. & Mission St. 25
Goss Ave. N Branciforte Ave. & Elk St. 25
Graham Hill Ocean St. & City Limit 30
Grandview St. Arroyo Seco & Swift St. 25
Grant St. Plymouth St. & Market St. 25
High St. Bay Drive & City Limit 30
High St. Bay Drive & Laurent St. 30
High St. Storey St. & Laurent St. 30
High St. Storey St. & Hwy 1 25
Highland Ave. Spring St. & Mission St. 25
Isbel Dr. Bartlett St. & Carbonera Dr. 25
Isbel Dr. Bartlett Way & Market St. 25
King St. Mission St. N & S Ends 25
La Fonda Ave. Oak Way & Soquel Ave. 25
La Fonda Ave. Oak Way & Prospect Heights 25
Laurel St. Mission St. & King St. 25
Laurel St. Mission St. & Center St. 25
Laurent St. High St. & King St. 25
Lee St. /N. Plymouth N Plymouth St. & Emeline Ave. 25
29.4 RESOLUTION NO. NS-XX,XXX
Street Name Street Limits
Speed
Limit
Lincoln St. Walnut Ave. & Pacific Ave. 25
Market St. Avalon Ave. – Washburn Ave. 30
Market St. Avalon Ave. & City Limit 25
Meder St. Bay Dr. & Western Dr. 25
Morrissey Blvd. Water St. & Fairmount Ave. 30
Morrissey Blvd. Water St. & Fairmount Ave. 30
Morrissey Blvd. Pacheco Ave. & Prospect Heights 30
Municipal Wharf Beach St. & End 15
Murray St. East Cliff Dr - East City Limit 25
Natural Bridges Blvd. Mission St. & Delaware Ave. 30
Nobel Dr. Meder St. & Bay St. 25
Ocean St. Broadway - E. Cliff Dr. 25
Ocean St. Broadway - Plymouth 30
Ocean St. Felker - Graham Hill Rd. 30
Pacheco Ave. Rooney St. & Prospect Heights 25
Pacific Ave. Beach St - Front St (at 555 Pacific) 25
Pelton Ave. Woodrow Ave. & National St. 25
Pelton Ave. National St. & West Cliff Dr. 25
Pine St. Soquel Ave. & Seabright Ave. 25
Poplar Ave. Fairmount Ave & Water St. 25
Prospect Heights Pacheco Ave. & La Fonda Ave. 25
River St. Route 1 - Front St. 25
Riverside Ave. Campbell St. & Beach St. 25
Rooney St. Gilbert Lane & Elk St. 25
Seabright Ave. Water St. & Murray St. 25
Second St. Riverside Ave. - Pacific 25
Soquel Ave. Ocean St. - Front St 25
Soquel Ave. Ocean St. & Morrissey Blvd. 25
Soquel Ave. Morrissey Blvd & east City Limit 25
Spring St. High St. - North End 25
Stanford Ave. Chilverton St. & Water St. 25
Swanton Blvd. West Cliff Dr. & Delaware Ave. 25
Swift St. Delaware Ave. & West Cliff Dr. 25
Swift St. Grandview St. & Delaware Ave. 25
Sylvania St. Encinal St. & Harvey West Blvd. 25
Walnut Ave. King St. & Chestnut St. 25
Water St. Ocean St. - Pacific 30
Water St. Ocean - N. Branciforte 30
Water St. N Branciforte Ave. - Poplar 25
West Cliff Dr. Pelton Ave & Swanton Blvd. 25
29.5 RESOLUTION NO. NS-XX,XXX
Street Name Street Limits
Speed
Limit
West Cliff Dr. Pacific Ave. & Pelton Ave. 25
Western Dr. Meder St. & Mission St. 25
Western Dr. Meder St. & High St. 30
Woodrow Ave. Errett Circle & West Cliff Dr. 25
Younglove Ave. Mission St. & Errett Circle 25
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz as follows: the 2018 Engineering and Traffic Survey may be used for enforcement through October 2032.
PASSED AND ADOPTED this 18th day of November, 2025 by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
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Engineering and Traffic Survey Extension
Attachment 3 - Speed Data
2018 2025 2018 2025
N. Branciforte Ave Water & Fairmount 2020 32 32 30 30
Cayuga St. Broadway & Hiawatha Ave. 2022 28 29 25 25
Delaware Ave Swift & Woodrow 2023 30 30 25 25
Delaware Ave, Laguna Woodrow & Bay 2020 32 31 25 25
E. Cliff, San Lorenzo Ave Broadway & Alhambra 2023 27 30 25 25 Emeline Ave Sutphen & Grant 2022 31 31 25 25
La Fonda Ave Oak & Soquel 2022 32 34 25 25
Ocean St (Combined) Broadway & E. Cliff 2022 28 33 25 25 Ocean St (NB Combined) Broadway & Plymouth 2023 35 34 30 30 Ocean St (SB Combined) Broadway & Plymouth 2023 35 32 30 30 Pelton Ave Woodrow & National 2023 23 22 25 25
Prospect Heights Pacheco & La Fonda 2022 25 28 25 25
Riverside Ave Campbell & Beach 2023 27 23 25 25
Swanton Blvd W. Cliff & Delaware 2021 27 31 25 25
Water St Ocean & Pacific 2020 33 35 30 30
Water St Ocean & N. Branciforte 2020 35 35 30 30
Roadway Measured 85th Speed (MPH) Speed Limit (MPH)
Modification Street Name Street Limits
29.224
City Council
AGENDA REPORT
DATE: 10/30/2025
AGENDA OF: 11/18/2025
DEPARTMENT: Public Works
SUBJECT: Downtown Intersection Improvements (c401903) Front Street Improvements Phase 1 (PW)
LOCATION: District 4
RECOMMENDATION: Motion to:
1) Approve the construction plans and specifications for the Front Street Improvements Project (Phase 1) as the initial phase of the Downtown Intersection Improvements (c401903). The Public Works Director, or designee, is authorized to execute change orders within the approved project budget; and
2) Adopt a resolution to approve the construction plans for the Front Street Improvements Project (Phase 1) pursuant to Government Code Section 830.6.
BACKGROUND: In 2017, the City Council adopted the Downtown Plan Amendment which increased development potential downtown and identified associated traffic mitigations. Since adoption, new development along Front Street is underway. Public Works and Economic Development are collaborating on the Downtown Intersection Improvements (DTII) project (c401903) to provide the transportation and right-of-way improvements needed to accommodate the development. The DTII project will be constructed in multiple phases to align with redevelopment of the Front Street corridor. Phase 1 of the project, Front Street Improvements Project, will include improvements from the intersection with Soquel Avenue to the south side of the southern Metro Center driveway. After the initial phase is complete, and transit service is routed to the new Metro Center, a subsequent phase of work will complete the project.
On November 15, 2022, the City Council approved a conceptual striping plan for Front Street between Laurel Street and Soquel Avenue. That plan included a two-way center turn lane, contiguous bike lanes and pickup/drop-off at the proposed Santa Cruz Hotel along Front Street.
On Soquel Avenue, east of Front Street, the plan added dual westbound left turns, a buffered bike lane, and removed the westbound right slip-lane.
Following that work, the Santa Cruz Metropolitan Transit District (Metro) began the Watsonville-Santa Cruz Intercity Transit Speed and Reliability Study which identified infrastructure needs to improve travel times. The study found that the intercity routes
30.1 experienced 30 minutes of travel-time delay, resulting in transit trips taking twice the time of private automobile trips and, among other improvements, recommended the installation of dedicated transit lanes on Front Street. On May 20, 2024, staff presented traffic analysis and new concept plans to the Transportation and Public Works Commission (TPWC) which proposed adding dedicated transit lanes on Front Street in place of two-way center turn lane in response to the completed study. The modifications were accepted, and feedback was incorporated into the concept plans. Staff and the consultant team began working on modifications to the corridor based on that direction.
On March 25, 2025 the City Council adopted the revised concept plan presented to the TPWC, found the project statutorily exempt from CEQA, and authorized the Metro Transit Station Improvements Agreement with Metro and Downtown Santa Cruz Developer, LLC to ultimately design and construct the project. Since that approval, the concept plan has been advanced to construction documents.
On August 8, 2025, the construction documents were presented to the TPWC for feedback and approval. Staff received feedback from the commission, incorporated minor changes into the plans, and has since finalized the documents. The TPWC recommended that the plans and specifications be approved by the City Council and requested a circulation diagram be presented in this report, which is attached as Figure 1.
DISCUSSION: The Front Street Improvements Project (Phase 1) proposes construction of a multi-modal street with transit lanes, bicycle lanes, upgraded sidewalk accessibility, and new signal timing and lane configurations to accommodate additional traffic from the development.
The following features are described in additional detail and summarized in the attached Figure
1. Since the concept design, the southbound transit lane has been moved to the middle of the street, to allow for the southbound bicycle lane, improved intersection alignment and provide a transit queue jump lane. The TPWC had previously requested that dedicated bike lanes be provided as much as possible while accommodating new transit features and this design achieves that balance. Moving the transit lane to the center of the street does require driveways on the eastern side of Front Street from just north of Cathcart Street to the Metro Center be right-in and rightout only. Since those buildings are residential, the new residents will need to adjust their travel patterns accordingly. To improve travel times along Front Street, the northbound left turn to Soquel Avenue will be prohibited during afternoon peak periods (3:00pm to 6:00pm). This treatment is common in other cities where there is insufficient space for dedicated turning lanes.
At the southern driveway of the Metro Center, buses will be allowed to turn right, from the center transit lane, as well as continue straight to jump the queue of vehicles as they travel to Laurel Street. Special signal timing strategies and equipment will be provided to make these movements feasible and safe, including transit-specific detection, dedicated transit signals, and a flashing warning sign. Accessible pedestrian push buttons and exclusive phasing will make the crossings at Cathcart and the Metro Center more comfortable and safer for pedestrians. At Cathcart Street, two curb extensions have been added to reduce the crossing distance across Cathcart Street.
Bicycle lanes are provided for the complete southbound direction between Soquel Avenue and Laurel Street. In the northbound direction, a dedicated bike lane is provided from Laurel Street to
30.2 Cathcart Street. North of Cathcart Street, bikes will share the right-most lane with buses and right-turning vehicles before entering the shared bus and bike lane north of Soquel Avenue.
While this isn’t a dedicated facility for bikes, the levee trail, just to the east of the developments, will provide a low-stress bicycle route. Furthermore, the developments along the east side of Front Street have public-facing amenities along the levee path, a condition that doesn’t exist today, and improved opportunities for bicycling connectivity.
Phase 1 is expected to be completed prior to the end of 2026. The following phases will be dependent on construction funding and coordination with Metro. The plans and specifications are posted online at: https://www.santacruzca.gov/Government/City-Departments/PublicWorks/Projects.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: At its March 25, 2025 meeting, Council approved the CEQA Determination that the project qualifies for a Statutory Exemption under PRC 21080.25(b)(1-4) because the project creates:
1) Pedestrian and bicycle facilities that improve safety, access, or mobility, including new facilities, within the public right-of-way.
2) Projects that improve customer information and wayfinding for transit riders, bicyclists, or pedestrians within the public right-of-way.
3) Transit prioritization projects.
4) A project for the designation and conversion of general-purpose lanes to high occupancy vehicle lanes or bus-only lanes, or highway shoulders to part-time transit lanes, for use either during peak congestion hours or all day on highways with existing public transit service or where a public transit agency will be implementing public transit service as identified in a short-range transit plan.
HEALTH IN ALL POLICIES (HiAP): This project promotes the following Health in All Policies Conditions: Heathy Environments and Stable, Affordable Housing and Shelter by building new affordable housing and improving public transit service to the new housing.
FISCAL IMPACT:
1. The recommendation in this report impacts the General Fund: No
2. This recommendation requires a budget adjustment: No
3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: This project (c401903) is funded from the Gas Tax, Transportation Impact Fees, Developer Contributions, and an Infill Infrastructure Grant secured by Economic Development. There is no impact to the General Fund.
Prepared By:
Dan Estranero
Associate Professional
Engineer
Submitted By:
Nathan Nguyen, P.E.
Director of Public Works
Approved By:
Matt Huffaker
City Manager
ATTACHMENTS:
1. RESOLUTION.DOCX
2. FRONT STREET CIRCULATION.PDF
30.3 RESOLUTION NO. NS-XX,XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ APPROVING
THE DESIGN, PLANS AND SPECIFICATIONS FOR THE CONSTRUCTION OF THE FRONT STREET IMPROVEMENTS PROJECT (PHASE 1), PURSUANT TO GOVERNMENT CODE SECTION 830.6
The City Council of the City of Santa Cruz does resolve as follows:
SECTION 1: The City Council finds and declares as follows:
A. City staff has reviewed the plans and specifications for the Front Street Improvements Project (Phase 1)
B. The City Engineer has approved the completed design, plans and specifications for the Project and that construction of the Project may begin; C. The City Council wishes to obtain the immunities set forth in Government Code §830.6 with regard to the plans and construction of the Project.
SECTION 2: Design Immunity; Authorization.
A. The City Council approves the design and plans for the Project.
B. The design approval set forth in this Resolution occurred before actual work on the Project construction commenced.
C. The approval granted by this Resolution conforms with the City's General Plan.
D. The City Engineer, or designee, is authorized to act on the City's behalf in approving any alterations or modifications of the design and plans approved by this Resolution.
E. The approval and authorization granted by this Resolution is intended to avail the City of the immunities set forth in Government Code §830.6.
SECTION 3: The City Clerk is directed to certify the adoption of this Resolution.
SECTION 4: This Resolution will become effective immediately upon adoption.
30.4 RESOLUTION NO. NS-XX,XXX
PASSED AND ADOPTED this 18th day of November, 2025, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
APPROVED: __________________________
Fred Keeley, Mayor
ATTEST: ___________________________
Bonnie Bush, City Clerk Administrator
30.5 Downtown Intersections Improvement Project
Front Street Improvements - Phase 1
Figure 1 – Circulation Diagram
Soquel AvenueCathcart StreetLaurel Street
Front Street
N. Metro DrivewayS. Metro Driveway
3PM–6PM
EVERYDAY
Signal Upgrade
N
General Traffic
Bike Lane
Bus and Bike Transit Lane
Bus and Bike and
Right Turns
Legend
Left Turn Time
Prohibition 3PM
to 6PM
30.6 Brittany Inclan
From: [email protected]
Sent: Monday, November 17, 2025 8:09 AM
To: City Council
Subject: Nov 18, 2025 Council meeting; Item #30, Front Street Dear Councilmembers: Please include monitoring in the Front Street project that eliminates a bike lane, if you are otherwise inclined to approve it. This project will result in Santa Cruz City being less bike friendly at a Ɵme when increasing development Downtown should lead to enhanced bicycle accessibility.
This project will remove a northbound bike lane from Cathcart to Soquel Avenues in favor of a bus and right turn lane that bikes can also use. It also implies that the once temporary conversion of the conƟnuing bike lane between Soquel Avenue and North River Street to a bus travel, stop and layover lane will become permanent. Ostensibly, the result will be faster bus travel Ɵmes.
These Front Street bike lanes had been in place for decades. Discussions that began several years ago about Front Street always including keeping the bike lanes, even how to enhance them – there was never any hint that they would disappear. As noted in the staff report, it is only quite recently that the concept to convert them into bus lanes emerged.
What will be the experience of cyclists with this change? If one is riding in the bike lane that becomes a bus lane and a bus emerges from the Transit Center into that lane behind the cyclist, will the bus go the speed of the cyclist and stay behind it, will it pull out into the travel lane to pass the cyclist, or will it tailgate or honk at the cyclist to force the cyclist toward the curb so it can pass within the bus lane?
Thus, at the very least, please include a monitoring component of this project. Base case data should be compiled, if it hasn’t already, of bicycle counts, bus and bus passenger counts, bus travel Ɵmes, and crashes. Then, in a year or so aŌer project compleƟon, the same informaƟon can be compiled for comparison purposes. Will bus travel Ɵmes have decreased, which is the reason for this lane conversion? The Council should commit to revisiƟng this project if the objecƟve is not met or there are more crashes. Also, monitoring may reveal the need for revised signing, pavement markings, or traffic signal operaƟons.
The staff report indicates that cyclists have the opƟon of using the parallel Santa Cruz Riverwalk if they wish to avoid Front Street and the establishments along it. UnƟl recently, northbound cyclists approaching Cathcart Avenue had the opƟon of leaving the street, turning right into the parking lot, and riding up the ramp to the River levee. That opƟon is now precluded by the new River Row development, despite bicycle advocates having unsuccessful requested that a replacement ramp be incorporated into that project. Now, in retrospect, that was an even more unfortunate decision given the upcoming loss of the Front Street bike lane.
Thanks for your consideraƟon,
Rick Hyman
Coulson Ave.
30.7 City Council
AGENDA REPORT
DATE: 10/30/2025
AGENDA OF: 11/18/2025
DEPARTMENT: Public Works
SUBJECT: Resolution to Apply for and Reimburse Future Capital Expenditures from State Water Resources Control Board Funding for Project WEER (Wastewater Treatment Facility Energy and Electrical Resiliency) (c401405) (PW)
LOCATION: District 3
RECOMMENDATION: Motion to:
1) Adopt a resolution for the Public Works Department to apply for State Water Resources Control Board (SWRCB) funding for Project WEER in a form to be approved by the City Attorney; and
2) Adopt a resolution for the Public Works Department to be reimbursed by State Water Resources Control Board (SWRCB) for costs related to Project WEER.
BACKGROUND: In 2018, the City of Santa Cruz (City) completed the Wastewater Treatment Facility (WWTF) Infrastructure and Major Equipment Study which found an increased need for replacement and rehabilitation of aging equipment at the WWTF. The study concluded that the WWTF electrical distribution equipment was at end of life and in need of replacement. In 2020, the City contracted with ArcSine Engineering to conduct further condition assessments and provide a conceptual design for upgrades and replacement. The Wastewater Treatment Facility Energy and Electrical Resiliency Project (Project WEER) scope includes replacement of the 21kV main switchgear, cables, substations, and transformers. In 2024, the City initiated a service order with Brown and Caldwell for owner advisory services to evaluate a strategic approach to the project, project packaging and the best value project delivery method. In October 2025 the City Council authorized use of the best value delivery method, progressive design build.
Over the last several years, the Public Works Department (Department) has taken a number of steps to financially prepare for Project WEER. In 2024 the Department contracted with Bartle Wells Associates to develop long-term financial plans, a Wastewater Rate Study and five-year wastewater rates to adequately fund the costs of operating and maintaining the City’s wastewater system, fund necessary capital improvements, and meet annual debt service funding requirements. Five-year rates were adopted by City Council in June 2025. The Department is continuing to explore options to fund capital improvements at the lowest cost available to
31.1 minimize the impact on rates. To that end, the Department intends to apply for State Water Resources Control Board (SWRCB) Clean Water State Revolving Fund (CWSRF) funding for Project WEER.
DISCUSSION: The SWRCB offers State Revolving Fund monies to jurisdictions through a complex competitive application process due to State and Federal requirements that is estimated to take 18 months from application to approval. The Department is supported in this application effort by Brown and Caldwell as authorized through their service order for Owner Advisory Services. The CWSRF program has a per-project funding cap of $50 million. Currently staff estimate the Project WEER construction portion of the project at $67 million dollars. The total project cost, including escalation and planning, design and management costs is currently estimated at $91 million dollars.
The SWRCB is currently offering very competitive interest rates which would lower the borrowing cost and save money over the life of the loans. As of October 30 the SWRCB rates were approximately 2.1% or 2% lower than municipal bond rates. This would be the first CWSRF application submitted by the Department. Currently the Department has loans with the California Infrastructure and Economic Development Bank (iBank) for the WWTF UV Replacement Project and the WWTF Headworks replacement and Front-Spruce-Pacific 54” Liner Projects.
This is the first in a series of actions and resolutions necessary to apply for and, if approved, accept SWRCB CWSRF funding to support Project WEER.
This action will:
Authorize the Public Works Director to sign the SWRCB Financial Assistance Application;
Execute the financial assistance agreement and subsequent amendments; and Designate the Public Works Director to represent the City in carrying out the City’s responsibilities under the financing agreement including certifying disbursement requests Staff will continue to consult with both the City Attorney’s Office and the Finance Department during the application and agreement processes.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:
Applying for funding is not a project. Staff are coordinating with the City’s on-call environmental services firm Dudek to scope initial technical reports which will support a CEQA determination for construction of the Project.
HEALTH IN ALL POLICIES (HiAP): The Project WEER aligns with and supports the City’s HiAP conditions of Health and Wellness and Healthy Environments. The City’s WWTF protects public health by conveying and treating wastewater and safeguards environmental health by ensuring all treated water discharged into the ocean complied with all regulatory standards.
Additionally, this effort supports sustainability augmenting water supply by providing a source for recycled water.
31.2 FISCAL IMPACT:
1. The recommendation in this report impacts the General Fund: No
2. This recommendation requires a budget adjustment: No
3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: There is currently no fiscal impact. The amount of the loan will be a maximum of $50 million. Further analysis will be completed during the loan application process to confirm the Department’s ability to repay the loan. Approval of a reimbursement resolution this action has no impact on the FY 2026 budget. In the absence of a reimbursement resolution, the City would be limited to reimbursing only expenditures incurred within 60 days of closing the Loan. Early approval of the reimbursement resolution ensures that a significant amount of Project WEER capital expenditures are eligible to be funded from the CWSRF Loan. There is no impact to the General Fund.
Prepared By:
Katie Stewart
Senior Professional Engineer
Submitted By:
Nathan Nguyen, P.E.
Director of Public Works
Approved By:
Matt Huffaker
City Manager
ATTACHMENTS:
1. RESOLUTION AUTHORIZING APPLICATION.DOCX
2. RESOLUTION AUTHORIZING REIMBURSEMENT.DOCX
31.3 RESOLUTION NO. NS-30,XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ AUTHORIZING
THE PUBLIC WORKS DEPARTMENT TO APPLY FOR STATE WATER RESOURCES
CONTROL BOARD FUNDS FOR PROJECT WEER
WHEREAS, the City of Santa Cruz desires and intends to finance expenditures relating to Project WEER: and
WHEREAS, the City expects to apply for a loan from the State Water Resources Control Board for Project WEER; and
WHEREAS, the State Water Resources Control Board, at the time of applications, requires the adoption of an authorizing resolution which designates the authorized representatives for the project, who will have the authority to sign and submit the Clean Water State Revolving Fund application materials, certify compliance with applicable state and federal laws, execute the financial assistance agreement and amendments, and certify disbursement requests.
RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA CRUZ (the “Entity), AS FOLLOWS:
The Public Works Director (the “Authorized Representative”) or designee is hereby authorized and directed to sign and file, for and on behalf of the Entity, a Financial Assistance Application for a financing agreement from the State Water Resources Control Board for the planning, design and construction of Project WEER (the “Project”).
The Authorized Representative, or his/her designee, is designated to provide the assurances, certifications, and commitments required for the financial assistance application, including executing a financial assistance agreement from the State Water Resources Control Board and any amendments or changes thereto.
The Authorized Representative, or his/her designee, is designated to represent the Entity in carrying out the Entity’s responsibilities under the financing agreement, including certifying disbursement requests on behalf of the Entity and compliance with applicable state and federal laws.
PASSED AND ADOPTED this 18th day of November, 2025 by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
31.4 RESOLUTION NO. NS-30,XXX
2 APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
CERTIFICATION
I do hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the City Council held on 18th day of November, 2025.
Bonnie Bush, City Clerk Administrator
31.5 RESOLUTION NO. NS-30,XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ AUTHORIZING
THE PUBLIC WORKS DEPARTMENT TO BE REIMBURSED BY THE STATE WATER
RESOURCES CONTROL BOARD FOR COSTS RELATED TO PROJECT WEER WHEREAS, the City of Santa Cruz (the “Agency”) desires to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to its water system, including certain treatment facilities, pipelines and other (the “Project”); and WHEREAS, the Agency intends to finance the construction and/or reconstruction of the Project or portions of the Project with moneys (“Project Funds”) provided by the State of California, acting by and through the State Water Resources Control Board (State Water Board); and
WHEREAS, the State Water Board may fund the Project Funds with proceeds from the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the “Obligations”), and
WHEREAS, prior to either the issuance of the Obligations or the approval by the State Water Board of the Project Funds the Agency desires to incur certain capital expenditures (the “Expenditures”) with respect to the Project from available moneys of the Agency; and WHEREAS, the City has determined that those moneys to be advanced on and after the date hereof to pay the Expenditures are available only for a temporary period and it is necessary to reimburse the Agency for the Expenditures from the proceeds of the Obligations.
NOW, THEREFORE THE AGENCY DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:
Section 1. The Agency hereby states its intention and reasonably expects to reimburse Expenditures paid prior to the issuance of the Obligations or the approval by the State Water Board of the Project Funds.
Section 2. The reasonably expected maximum principal amount of the Project Funds is $50 million.
Section 3. This resolution is being adopted no later than 60 days after the date on which the Agency will expend moneys for the construction portion of the Project costs to be reimbursed with Project Funds.
Section 4. Each Agency expenditure will be of a type properly chargeable to a capital account under general federal income tax principles.
31.6 RESOLUTION NO. NS-30,XXX
Section 5. To the best of our knowledge, this Agency is not aware of the previous adoption of official intents by the Agency that have been made as a matter of course for the purpose of reimbursing expenditures and for which tax-exempt obligations have not been issued.
Section 6. This resolution is adopted as official intent of the Agency in order to comply with Treasury Regulation §1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of Project costs.
Section 7. All the recitals in this resolution are true and correct and this Agency so finds, determines and represents.
PASSED AND ADOPTED this 18th day of November, 2025 by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
CERTIFICATION
I do hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the City Council held on Xth day of X, 202X Bonnie Bush, City Clerk Administrator
31.7 City Council
AGENDA REPORT
DATE: 10/30/2025
AGENDA OF: 11/18/2025
DEPARTMENT: Water
SUBJECT: Water Supply Augmentation Planning – Kennedy Jenks Consultants Contract Amendment (WT)
LOCATION: County
RECOMMENDATION: Motion authorizing the City Manager to execute the Seventh Amendment to the Professional Services Agreement Phase 2 Recycled Water Facility Study/Water Supply Augmentation Implementation Plan in the amount of $186,102 with Kennedy Jenks Consultants (San Francisco, CA) in a form to be approved by the City Attorney.
BACKGROUND: In October 2015, the citizen-led Water Supply Advisory Committee (WSAC) reached consensus among its 14 members and recommended a strategy to deliver long-term water supply security to the City of Santa Cruz water customers including: strengthened water conservation to reduce demand for water, groundwater storage through water transfers, exchanges and/or aquifer storage and recovery (ASR), and advanced-treated recycled water or desalination.
In 2016, City Council authorized an agreement with Kennedy Jenks Consultants (Kennedy Jenks) to evaluate the recycled water opportunities in Santa Cruz as outlined in the WSAC recommendations. Other studies commenced in parallel to evaluate all WSAC-recommended alternatives. In 2018, the first phase of the recycled water study was completed. The Phase 1 body of work focused on irrigation opportunities throughout the water service area and the potential for direct potable reuse.
In November 2019, City Council authorized the execution of an agreement with Kennedy Jenks for Phase 2 of the Recycled Water Feasibility Study. Phase 2 took advantage of advancements in climate and water supply modeling and broadened the water supply alternatives beyond advanced treated recycled water, based in part on advancements made by Soquel Creek Water District and the Pure Water Soquel project, collaborative opportunities provided by the two approved Groundwater Sustainability Plans for Santa Cruz Mid-County and Santa Margarita groundwater basins, and opportunities for water transfers with both Soquel Creek and Scotts Valley Water Districts. During Phase 2, six amendments have been authorized to date.
Phase 2 encompasses a significant body of work produced by Kennedy Jenks and their consultants, including the development of the new Santa Cruz Water System [Supply] Model
32.1 (SCWSM) that provides for sophisticated modeling of the City’s water supply system under varying climate and weather model generated conditions and with various water supply augmentation configurations. The Phase 2 work culminated in the development of an adaptive roadmap for water supply reliability known as the Water Supply Augmentation Implementation Plan (WSAIP).
DISCUSSION: As described in the attached contract amendment, this Seventh Amendment supports finalizing the WSAIP report, technical outreach and communication support for the WSAIP, and continued water supply reliability modeling and training on the SCWSM. The final WSAIP report is planned to be incorporated as an appendix to the City’s 2025 Urban Water Management Plan which is required to be adopted by City Council and submitted to the California Department of Water Resources by July 2026., The SCWSM will be used for required short- and long-term water supply reliability analyses included in the Urban Water Management Plan.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: Staff has performed a preliminary environmental assessment of this activity and determined that it is not a “project” under Public Resources Code section 21065 because it does not have the potential to cause a direct or indirect physical change to the environment.
HEALTH IN ALL POLICIES (HiAP): The continued support of water supply augmentation planning aligns with the public health pillar of the City’s HiAP initiative by supporting the Water Department’s work to ensure long-term water supply reliability of the public drinking water system.
FISCAL IMPACT:
1. The recommendation in this report impacts the General Fund: No
2. This recommendation requires a budget adjustment: No
3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: Funds are available in the Water Department’s Capital Investment Program FY 2026, project c701705 Water Supply Augmentation.
Prepared By:
Heidi Luckenbach
Water Director
Submitted By:
Heidi Luckenbach
Water Director
Approved By:
Matt Huffaker
City Manager
ATTACHMENTS:
1. SEVENTH AMENDMENT.PDF
32.2 City of Santa Cruz Seventh Amendment to Professional Services Agreement for Phase 2 Recycled Water Feasibility Study
November 2025 Page 1
SEVENTH AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT FOR PHASE 2 RECYCLED WATER FEASIBILITY PLANNING STUDY/WATER SUPPLY AUGMENTATION
IMPLEMENTION PLAN
THIS AMENDMENT to the Professional Services Agreement for PHASE 2 RECYCLED WATER
FEASIBILITY PLANNING STUDY/WATER SUPPLY AUGMENTATION IMPLEMENTION PLAN (“Seventh Amendment”), is made by and between the City of Santa Cruz (“City”) and KENNEDY/JENKS CONSULTANTS, INC. (“Consultant”), effective as of ____________, 2025 (the “Effective Date”). City and Consultant may be referred to individually as “Party” and collectively, as the “Parties.”
RECITALS
WHEREAS, City and Consultant have previously entered into that certain Professional Services Agreement (“Agreement”) dated December 20, 2019, which is incorporated by this reference, and WHEREAS, First Amendment was executed May 14, 2020 to incorporate Scope of Work, Schedule and Budget for work related to the development of a Water Supply Augmentation Implementation Plan and Performance of a Water System Resilience Assessment, and WHEREAS, Second Amendment was executed June 30, 2020 to incorporate clarifying language into the Agreement for the purposes of accounting and report requirements for a potential grant award, and WHEREAS, Third Amendment was executed February 11, 2022 to develop an enhanced Water Supply Augmentation Implementation Plan using more comprehensive set of technical data, and WHEREAS, Fourth Amendment was executed September 22, 2022 to augment the work being performed on climate modeling, risk assessment and economic analyses for a single additional year, and WHEREAS, Fifth Amendment was executed October 16, 2023 to support another year of climate model development and training support to staff, as well as development of projects within the two groundwater sustainability basins, and
WHEREAS, Sixth Amendment was executed April 6, 2025 to reallocate the remaining budget among tasks to provide additional support for completing the WSAIP and cover the extended contract duration, and extend the schedule for completion of the Scope of Work to June 30, 2025, as specified herein.
WHEREAS, City and Consultant desire to amend the Agreement to provide additional support for the Draft Final WSAIP and modeling support for the Santa Cruz Water System Model (SCWSM).
AGREEMENT
NOW, THEREFORE, it is agreed between the Parties to incorporate the above Recitals hereto, and that the Agreement is hereby amended as follows as per the attached letter dated October 16, 2025, and more specifically:
32.3 City of Santa Cruz Seventh Amendment to Professional Services Agreement for Phase 2 Recycled Water Feasibility Study
November 2025 Page 2
A. Scope of Work: The Scope of Work of the Agreement is hereby amended to revise the prior Scope of Work per pages 1 through 7 of the Consultant’s letter dated October 16, 2025 which is attached hereto and incorporated herein as Exhibit A-7.
B. Exhibit B: Fee Schedule of the Agreement is hereby amended to revise the prior budget amount to add $186,102.00 for Tasks 1, 2, 3, 4, and 5 per Table 2 on page 8 of the Consultant’s letter dated October 16, 2025, which is attached hereto and incorporated herein as Exhibit A-7. The new Not To Exceed amount is $2,038,736.00.
C. Exhibit C: Work Schedule of the Agreement is hereby amended to revise the work schedule for Tasks 1, 2, 3, 4, and 5 as provided per Table 1 on page 8 of the Consultant’s letter dated October 16, 2025, which is attached hereto as Exhibit A-7 and incorporated herein.
Except as amended by this Seventh Amendment, all other applicable terms and conditions of the original Professional Services Agreement and attachments, and other prior amendment(s), shall remain in full force and effect. The terms of this Seventh Amendment shall control if any conflict exists.
Each party acknowledges that it has reviewed this Seventh 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 Seventh Amendment.
The unenforceability, invalidity or illegality of any provision(s) of this Seventh Amendment shall not render the other provisions unenforceable, invalid or illegal.
The Parties may execute this Seventh Amendment in two or more counterparts, which shall, in the aggregate, be deemed an original but all of which, together, shall constitute one and the same instrument. A scanned, electronic, facsimile or other copy of a party’s signature shall be accepted and valid as an original.
The signatories to this Seventh Amendment warrant and represent that each is authorized to execute this Seventh Amendment and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this Seventh Amendment.
[SIGNATURES ON FOLLOWING PAGE]
32.4 City of Santa Cruz Seventh Amendment to Professional Services Agreement for Phase 2 Recycled Water Feasibility Study
November 2025 Page 3
IN WITNESS WHEREOF, the City and the Consultant have executed this Sixth Amendment on the Effective Date.
Signature Requirements for Corporation:
Corporation – 2 officer signatures required (one from each group, unless person signing holds officer positions in both Group 1 and 2):
Group 1: Chief Executive Officer, Chairman of the Board, President, or Vice President Group 2: Secretary, Assistant Secretary, Chief Financial Officer, Treasurer, Assistant Treasurer Approved As To Form:
By: _____________________________ Date: __________________ Office of the City Attorney
CITY OF SANTA CRUZ WATER DEPARTMENT:
By: _____________________________ Date: __________________ Heidi R. Luckenbach, Water Director
Technical Review By:
By: _____________________________ Date: __________________ Heidi R Luckenbach,
Deputy Water Director / Engineering Manager
CONSULTANT: KENNEDY/JENKS CONSULTANTS, INC.
By: _____________________________ Date: __________________ Printed: _________________________ Title: _________________________ By: _____________________________ Date: __________________ Printed: _________________________ Title: __________________
32.5 275 Battery Street, Suite 550
San Francisco, California 94111
415-243-2150
16 October 2025
Heidi Luckenbach
Santa Cruz Water Department
212 Locust St., Suite C
Santa Cruz, CA 95060
Subject: Proposal for City of Santa Cruz Water Department On Call Modeling Support and WSAIP Revisions
Dear Ms. Luckenbach,
This proposal is provided at your request for support with the Water Supply Augmentation Implementation Plan (WSAIP), building on the effort previously completed by Kennedy Jenks (KJ) under Purchase Order #91-20033 with the City of Santa Cruz Water Department (City). The Draft Final WSAIP was submitted to the City on June 17, 2025. The study included the evaluation of water supply alternatives for the City and proposed a road map for implementation of water supply projects that would fill the City water supply gap under drought conditions. The WSAIP was developed using a modeling tool, the Santa Cruz Water System Model (SCWSM), which has been used by the City to evaluate multiple future scenarios of water supply and drought conditions. This scope of work is intended to provide ongoing support for the City with the following efforts:
Updates to the Draft Final WSAIP
SCWSM Modeling Support
Public Outreach support, including Water Commission or City Council meetings Scope of Work
The proposed scope of work includes the following tasks:
Task 1 – Project Management and QA/QC
Task 2 – WSAIP Updates
Task 3 – SCWSM Modeling Support
Task 4 – Public Outreach Support
Task 5 – As-Requested Additional Services
32.6 Heidi Luckenbach
Santa Cruz Water Department
16 October 2025
Work will be conducted in accordance with the terms and conditions set forth in the Professional Services Agreement, Purchase Order Document #________________, with the City.
Task 1 – Project Management and QA/QC
Project management includes submittal of monthly project status reports, monthly check in meetings, internal coordination to keep the project on schedule and budget, and quality assurance/quality control (QA/QC) to be applied throughout the duration of the project. The scope assumes a 12-month project duration to provide support through December 2026.
1.1 Kickoff Meeting and Project Setup
The scope assumes one kickoff meeting will be provided soon after Notice to Proceed is received to confirm overall scope and schedule of deliverables. The kickoff meeting will be held virtually and is assumed to be 1 hour. Kennedy Jenks will provide an agenda and supporting material in advance of the meeting and brief minutes following the meeting.
1.2 Project Management Meetings
The scope assumes one project check in meeting monthly. The meetings will be held virtually and are assumed to be 30 minutes. Kennedy Jenks will provide an agenda and brief minutes following the meetings.
1.3 Internal Coordination Meetings
The scope assumes one internal KJ coordination meeting monthly for the team to coordinate progress and deliverables. The meetings will be held virtually and are assumed to be 1 hour.
1.4 Monthly Reports and Invoicing
Kennedy Jenks will provide monthly project status reports describing the work accomplished and status of the budget and schedule. The scope assumes a 12-month contract duration with submittal of 12 status reports and invoices. The monthly project status reports will describe work performed and milestones achieved, and cost separated by task.
1.5 QA/QC & Project Closeout
Quality assurance and quality control (QA/QC) activities are integrated into Kennedy Jenks’ project management system from project inception through execution to final document submission. Kennedy Jenks uses experienced senior staff, familiar with but not directly involved in the project work, to provide QA/QC review of work products and project deliverables. All submittals will be reviewed by senior engineers prior to submittal to the City.
32.7 Heidi Luckenbach
Santa Cruz Water Department
16 October 2025
Task 1 Assumptions:
1 Kickoff meeting, attended virtually, 1 hour.
Up to 12 project management meetings, attended virtually, 30 min. 12 month project duration.
Task 1 Deliverables:
Up to 12 monthly invoices and progress reports (PDF submitted electronically). Meeting agendas, supporting materials, and meeting minutes (Word or PDF submitted electronically).
Task 2 – WSAIP Updates
This task will be used to provide updates to the Draft Final WSAIP submitted to the City on June 17, 2025. The City will provide one set of consolidated comments on the Draft Final WSAIP for KJ to complete the edits and review, and provide one Final WSAIP document.
Task 2 Assumptions:
The City will provide one set of consolidated comments on the Draft Final WSAIP One round of revisions and comments from the City will be incorporated into the Final WSAIP.
Task 2 Deliverables:
Final WSAIP Report (PDF, submitted electronically).
Task 3 – SCWSM Modeling Support
KJ will continue supporting the City running modeling simulations using the Santa Cruz Water System Model (SCWSM). The following modeling support tasks are included:
3.1 Modeling Coordination Meetings
Up to 6 meetings are assumed for support with modeling runs. The meetings are intended for coordination with the City to verify model assumptions, review draft model results, and present final model results. The meetings will be held virtually and are assumed to be 1 hour. Kennedy Jenks will provide supporting materials for these meetings.
3.2 Model Overview Workshop
Kennedy Jenks will provide an workshop to City staff to present a high level overview of the SCWSM and capabilities prior to initiating the modeling runs to confirm expectations of what the model simulations can achieve, parameters that can be updated and results that can be generated. The workshop is
32.8 Heidi Luckenbach
Santa Cruz Water Department
16 October 2025
assumed to be 2 hours in duration and attended virtually. Kennedy Jenks will prepare materials for the workshop presentation.
3.3 Drought Assessment Model Runs
The City needs to develop two simulations to support the preparation of the 2025 Urban Water Management Plan (UWMP). The simulations to be developed are:
Simulation 1: present a 5-year lookahead for water supply for 2025 to 2030 assuming those years are equal to the City’s selected historical drought from 1973 to 1977, using historical hydrology and current water system projected demands. The simulation needs to consider incorporating new water supply project modifications that would be completed and operational within that 5-year period (before 2030). This simulation would be achieved using the graphical user interface (GUI) developed for the City for annual drought assessment simulations. Simulation 2: present a 5-year lookahead for water supply for 2025 to 2030 assuming those years are equal to the City’s selected climate change realization 1270 (R1270) that accounts for 2 degrees warming, no change in annual precipitation, and an increase in the coefficient of variability of 10%. For this R1270 simulation a 5-year drought period was selected for the water supply analysis, and it would be the drought simulation used for this effort. The simulation would use the specific hydrology developed for R1270 and current water system projected demands. The simulation needs to consider incorporating new water supply project modifications that would be completed and operational within that 5-year period (before 2030).
This simulation would be conducted using the SCWSM.
Each simulation is expected to require an iterative process to run the simulations and confirm the results with the City. For this effort, up to 40 hours are assumed for both simulations and data preparation. If the simulations require further iterations with the City beyond the budgeted hours, the budget under Task 5 As-Requested Services might be required to complete the model simulations.
As part of this task effort, four one hour calls are assumed for the KJ team to coordinate with Dr. Shawn Chartrand to evaluate the feasibility of integrating historic hydrology into the SCWSM. If it is deemed that the SCWSM can be updated to use historic hydrology and model simulations need to be revised, additional budget might be required or the budget in task 5 might be used for additional simulations and model updates needed to integrate the historical hydrology into SCWSM.
3.4 Reliability Assessment Model Runs
The City needs to develop two additional simulations to support the preparation of the 2025 Urban Water Management Plan (UWMP). The simulations to be developed are:
Simulation 3: provide a water supply analysis from 2025 to 2045 in 5-year increments, evaluating if the City can meet their water supply needs under a normal year, a single dry year (based on 1977 historical hydrology) and a 5-year drought sequence (based on the 1973 to 1977
32.9 Heidi Luckenbach
Santa Cruz Water Department
16 October 2025
historical hydrology). The simulation needs to use historical hydrology and updated water system demands projections. The simulation needs to consider incorporating new water supply project modifications that would be completed and operational by 2045. This simulation would be achieved using the GUI developed for the City for annual drought assessment simulations. Simulation 4: provide a water supply analysis from 2025 to 2045 in 5-year increments, evaluating if the City can meet their water supply needs under a normal year, a single dry, and a 5-year drought sequence. For this simulation the City’s selected climate change realization 1270 (R1270) that accounts for 2 degrees warming, no change in annual precipitation, and an increase in the coefficient of variability of 10% will be used. For this R1270 simulation a 5-year drought period was selected for the water supply analysis, and it would be the drought simulation used for this effort. The simulation needs to use updated water system demand projections. The simulation needs to consider incorporating new water supply project modifications that would be completed and operational by 2045. This simulation would be achieved using the SCWSM.
Each simulation is expected to require an iterative process to run the simulations and confirm the results with the City. For this effort, up to 40 hours are assumed for both simulations and data preparation. If the simulations require further iterations with the City beyond the budgeted hours, the budget under Task 5 As Requested Services might be required to complete the model simulations.
3.5 Coast Pump Station Model Runs
The City wants to simulate different capacities for the Coast Pump Station improvements in alignment with their water rights to evaluate different project sizes and their benefits or impacts to water supply, as well as the water rights allotment used for each project size combination.
This analysis is expected to require an iterative process to run multiple simulation scenarios with input from the City to evaluate varying assumptions, project sizes, and water supply conditions, and confirm the results with the City and adjust per City staff input. For this effort, up to 40 hours are assumed for simulations and results analysis. If the simulations require further iterations with the City beyond the budgeted hours, the budget under the As Requested Task 5 might be required to complete the model simulations.
3.6 Modeling Results Technical Memorandum
The results from the drought assessment simulations under Task 3.3 and 3.4 will be summarized in a brief Drought Assessment Technical Memorandum (TM). A draft TM will be provided for the City to review and comment, and comments will be incorporated into a final TM.
The results from the Coast Pump Station simulations under Task 3.5 will be summarized in a brief Coast Pump Station Technical Memorandum (TM). A draft TM will be provided for the City to review and comment, and comments will be incorporated into a final TM.
32.10 Heidi Luckenbach
Santa Cruz Water Department
16 October 2025
3.7 Modeling Documentation Updates
Kennedy Jenks previously prepared a training guide for the City for using the SCWSM and the GUI. With the additional simulations, this task includes time to provide updates to the training materials to reflect the protocols for running these simulations in the future for the City to support the development of the UWMP needs. A draft of the training guide will be provided for the City to review and comment, and comments will be incorporated into a final training guide.
KJ will prepare one update of the existing SCWSM log to document the updated model runs performed for this effort.
3.8 City Modeling Training Support
This task includes additional budget to support the City with troubleshooting and questions on running the model and using the training guide. The hours budgeted for this task can be used for training calls with the City or answering questions. If additional support for training is requested by the City beyond the budget scoped for this task, the budget under Task 5 As Requested Services might be required to provide the requested training support.
Task 3 Assumptions:
Up to 6 model coordination meetings, attended virtually, 1 hour. One model overview workshop, attended virtually, 2 hours in duration. 2 drought assessment simulations
Up to 4 coordination meetings to discuss integration of historical hydrology, attended virtually, 1 hour.
2 reliability assessment simulations.
Up to 40 hours budgeted for iterative simulations for Tait & Coast pump assessment.
Task 3 Deliverables:
Model coordination meeting notes (word, submitted electronically). Model Overview Workshop Materials (PDF, submitted electronically). Results for 2 model simulations for Drought Assessment (Excel/CSV format, Power point, submitted electronically)
Results for 2 model simulations for Drought Assessment (Excel/CSV format, Power point, submitted electronically)
Results for simulations for Tait and Coast Pump Runs (Excel/CSV format, Power point, submitted electronically)
Draft and Final Drought Assessment TM (Word, PDF, submitted electronically) Draft and Final Coast Pump Station TM (Word, PDF, submitted electronically) Draft and Final Model Training Guide updates (Word, PDF, submitted electronically) One SCWSM Log update (excel, submitted electronically)
32.11 Heidi Luckenbach
Santa Cruz Water Department
16 October 2025
Task 4 – Public Outreach Support
Kennedy Jenks will participate in one in-person meeting to support the City’s public outreach about the WSAIP, including preparing and delivering PowerPoint presentation for the City Water Commission.
Kennedy Jenks will also provide content such as tables or figures from the Final WSAIP to be included in materials for presentations to City Council or in support of developing public outreach materials prepared by the City. If additional materials or meetings are requested by the City for public outreach beyond the budget scoped for this task, the budget under Task 5 As Requested Services might be required to provide the requested additional support.
Task 4 Assumptions:
One Water Commission Presentation, attended in person by 1 KJ staff.
Task 4 Deliverables:
Water Commission presentation (PowerPoint, submitted electronically) Public outreach materials as requested by the City.
Task 5 – As-Requested Additional Services
The budget under this task is for support for additional City requested support beyond the scoped efforts under Task 1 through 4. The budget under this task will not be used without prior authorization by the City in writing (email documentation is sufficient). As-requested services may include, but not be limited to:
Update SCWSM code to include historical hydrology.
Extended project schedule beyond 12 months, with additional project management support. Additional meetings or workshops.
Additional modeling support.
Additional reviews or edits to the WSAIP Final report. Additional reviews or edits to the modeling TMs, Training guide or Model Log. Additional public outreach meetings or materials support. Assistance implementing the next steps identified in the WSAIP Road Map
32.12 Heidi Luckenbach
Santa Cruz Water Department
16 October 2025
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Anticipated Project Schedule
Table 1: Project Schedule
Deliverable
Anticipated
Start Date*
Anticipated
End Date Status
Executed Agreement Nov 2025
Notice to Proceed Nov 2025
Kick-off Meeting Dec 2025
Task 2 – Final WSAIP
Consolidated Comments by City Feb 2026
Final WSAIP Feb 2026 Mar 2026
Task 3 – SCWSM Modeling Support
Model Overview Workshop Mar 2026
Drought Assessment Model Results Dec 2025 Feb 2026
Reliability Assessment Model Results Dec 2025 Feb 2026
DRAFT Drought Assessment TM Feb 2026 Mar 2026
FINAL Drought Assessment TM Apr 2026 May 2026
Coast Pump Model Results Mar 2026 Jun 2026
DRAFT Coast Pump TM Jul 2026 Aug 2026
FINAL Coast Pump TM Sep 2026 Oct 2026
DRAFT Training Guide Oct 2026 Nov 2026
FINAL Training Guide Nov 2026 Dec 2026
Model Log Update Nov 2026 Dec 2026
Project Closeout Dec 2026
* Actual dates to be confirmed upon NTP
Budget
A summary of the budget and work completed is provided in provided in Table 2 and a detailed fee estimate is included in Table 3.
Table 2: Summary of Budget
Tasks
Total Est
Hours
Total KJ
Labor
Total
Expenses
Total Labor +
Expenses
Task 1 - Project Management 85 $ 23,208 $ - $ 23,208
Task 2 - WSAIP Updates 100 $ 24,274 $ - $ 24,274
Task 3 - SCWSM Modeling Support 360 $ 87,017 $ - $ 87,017 Task 4 - Public Outreach Support 60 $ 16,494 $ 110 $ 16,604 Task 5 - As-Requested Additional Services $ 35,000 $ - $ 35,000 Tasks 1 to 5 605 $ 185,992 $ 110 $ 186,102
32.13 Heidi Luckenbach
Santa Cruz Water Department
16 October 2025
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Closing
We look forward to continuing to work with you to support the City with additional WSAIP and modeling needs. Please do not hesitate to contact me with any questions on this proposal.
Very truly yours,
KENNEDY JENKS
Claudia Llerandi
Project Manager
32.14 City Council
AGENDA REPORT
DATE: 10/30/2025
AGENDA OF: 11/18/2025
DEPARTMENT: Water
SUBJECT: Beltz 8 Upgrades for Aquifer Storage and Recovery Project (c702503) – Approval of Plans and Specifications, Authorization to Advertise for Bids and Award Contract, Award Contract to Carollo Engineers, Inc. for Engineering Services During Construction, Approval of Contract Amendment for Construction Management Services with MKN CPM LLC, and Approval of Budget Adjustment (WT)
LOCATION: County
RECOMMENDATION: Motion to:
1) Approve plans and specifications for the Beltz 8 Upgrades for Aquifer Storage and Recovery Project (c702503) (Project) and authorize staff to advertise for bids. The City Manager, or designee, is hereby authorized and directed to execute the contract as authorized by Resolution No. NS-27,563;
2) Authorize the City Manager to execute a contract in a form to be approved by the City Attorney with Carollo Engineers, Inc. (Walnut Creek, CA) for engineering services during construction for the Project in the amount of $375,912; 3) Authorize the City Manager to execute a contract amendment in a form to be approved by the City Attorney with MKN CPM, LLC. for construction management services for the Project in the amount of $266,801;
4) Authorize the Water Director, or designee, to approve future construction change orders and contract amendments for construction management and engineering services during construction for the Project that are within the approved project budget; and 5) Adopt a resolution to amend the FY 2026 budget and transfer funds within the Water Department’s CIP budget in the amount of $4,150,000 from project c702002, Brackney Landslide Area Pipeline, to project c702503, Beltz 8 Upgrades for ASR.
BACKGROUND: The Water Department has been implementing the supply augmentation recommendations of the Water Supply Advisory Committee (WSAC) since early 2016 and, more recently, the ongoing evaluation, selection, and construction of supplemental water supplies as
33.1 directed by the Securing Our Water Future Policy. The recommended strategy was developed around the goal of delivering long-term water supply security to the City of Santa Cruz (City) water customers. While Water Department staff are studying and testing the feasibility of the planned recommendations that include in-lieu water transfers and exchanges, aquifer storage and recovery (ASR), recycled water, and desalination, ASR has been advanced to the point at which permanent facilities are ready to be designed and constructed at several locations.
ASR is a groundwater replenishment and storage approach where surface water resources are used to “bank” water in an aquifer during times when excess surface water is available for storage, and later extracted when needed to meet customer demand. The City is examining the feasibility of ASR in both the Santa Margarita Groundwater Basin (SMGB) underlying the Scotts Valley area and the Mid-County Groundwater Basin (MGB) underlying the Live Oak area.
The ASR implementation plan consists of three phases: technical feasibility, pilot testing, and implementation. Work performed at Beltz Well 8 dating back to 2020, including the Beltz 8 pilot test program during the period of March 2020 to June 2021, supports conversion to a permanent ASR facility.
Previous Council actions to date include:
February 9, 2016 – City Council authorized an agreement for Phase I of the ASR work plan.
December 10, 2019 – City Council authorized an agreement for Phase II pilot testing work in the City’s Beltz 8 water production well.
November 9, 2021 – City Council authorized an agreement for ASR Demonstration Study in the City’s Beltz 8 water production well.
June 27, 2023 – City Council authorized an award of professional services with Carollo Engineers, Inc. for Beltz Wells 8 and 12 Aquifer Storage and Recovery Design. September 10, 2024 – City Council approved the Beltz 8 and 12 Aquifer Storage and Recovery Project considering the certified Santa Cruz Water Rights Project Final Environmental Impact Report and the Beltz 8 and 12 Aquifer Storage and Recovery Project Addendum to the Santa Cruz Water Rights Project Final Environmental Impact Report.
DISCUSSION: Project plans and technical specifications for the Project are now complete and will be posted at the link below until the bidding period begins at which time they will be posted to:
https://procurement.opengov.com/portal/santacruzca.
https://www.santacruzca.gov/Government/City-Departments/Water-Department/CapitalInvestment-Program/Water-Projects-in-Your-Neighborhood https://www.santacruzca.gov/Government/City-Departments/Water-Department/CapitalInvestment-Program/Water-Projects-in-Your-Neighborhood Construction is anticipated to occur from August 2026 to April 2027, with a Notice to Begin PreConstruction Activities in March 2026.
In addition to bidding the project staff recommend entering into a new agreement with Carollo Engineers, Inc., the design engineering firm, to provide engineering services during construction in the amount of $375,912. It is standard industry practice for the design engineering firm to
33.2 continue providing engineering support through the construction of a project they have designed in the event of unforeseen challenges.
The proposed scope of work for Carollo Engineers, Inc. generally consists of participation at construction meetings, responding to contractor requests for information, reviewing shop drawing submittals, assisting with testing, commissioning, startup, training, attending final walk through and preparing record drawings.
Section 3.08.150 of the Santa Cruz Municipal Code allows the Purchasing Manager to award a contract without competition when there is only one source for the required item; the Purchasing Manager has approved this contract as a single-source.
To assist with the construction management of the Project staff recommend executing a contract amendment to the MSA with MKN CPM, LLC. to provide construction management services in the amount of $266,801. On September 12, 2025, a Master Services Agreement (MSA) was executed with MKN CPM, LLC. (San Jose, CA) for on-call construction management services after a formal competitive solicitation. The intent of creating such a contract was to augment Water Department staff on an as-needed basis to assist with the construction of capital projects.
The on-call construction management services contract was designed as a master services contract with a zero-dollar value for specific projects added on an as-needed basis through contract amendments. The scope of work in this amendment with MKN CPM, LLC. generally consists of assisting with the construction bidding process, field inspections, managing costs and schedules, progress reporting and project closeout.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: Since certification of the Final Santa Cruz Water Rights Environmental Impact Report, City staff determined that an Addendum to the certified Final EIR was the appropriate environmental documentation for the proposed Project, consistent with Section 15164 of the California Environmental Quality Act (CEQA) Guidelines. On September 10, 2024, City Council approved the Beltz 8 and 12 Aquifer Storage and Recovery Project considering the certified Santa Cruz Water Rights Project Final Environmental Impact Report and the Beltz 8 and 12 Aquifer Storage and Recovery Project Addendum to the Santa Cruz Water Rights Project Final Environmental Impact Report.
The Final Environmental Impact Report and Addendum for this project can be found here:
1. Certified Santa Cruz Water Rights Project Final Environmental Impact Report https://www.santacruzca.gov/Government/City-Departments/Water-Department/OnlineReports/Environmental-Documents/Santa-Cruz-Water-Rights-Project
2. Beltz 8 and 12 Aquifer Storage and Recovery Project Addendum:
https://www.santacruzca.gov/files/assets/city/v/1/wt/documents/water-projects/waterrights/beltz-8-and-12-aquifer-storage-and-recovery-project-addendum.pdf https://www.santacruzca.gov/files/assets/city/v/1/wt/documents/water-projects/waterrights/beltz-8-and-12-aquifer-storage-and-recovery-project-addendum.pdf HEALTH IN ALL POLICIES (HiAP): The objectives of the Project align with the City’s HiAP framework, specifically the pillars of sustainability and public health. With respect to sustainability, ASR is an identified mitigation measure in the City’s Local Hazard Mitigation and Climate Adaptation Plan and the modernization of the Beltz 8 well site for ASR functions will
33.3 bolster water supplies during periods of drought and emergencies such as wildfire. This Project supports the public health pillar and the Water Department’s mission of diversifying its water supply portfolio to build climate resiliency and ensure the safety and reliability of the public drinking water supply.
FISCAL IMPACT:
1. The recommendation in this report impacts the General Fund: No
2. This recommendation requires a budget adjustment: Yes
3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: The Engineer’s cost estimate for construction, including a ten percent contingency, is $3,825,000 and related construction service of $766,800, which includes engineering services during construction, construction management services, and other construction related services. A budget adjustment in the amount of $4,150,000 is needed to transfer funds within the Water Department’s FY 2026 Capital Investment Program Budget from project c702002, Brackney Landslide Area Pipeline, to c702503, Beltz 8 Upgrades for ASR. 49% of the project is funded by a Water Infrastructure Finance and Innovation Act (WIFIA) lowinterest loan administrated by the U.S. Environmental Protection Agency.
Prepared By:
Isidro Rivera
Engineering Manager/Deputy
Water Director
Submitted By:
Heidi Luckenbach
Water Director
Approved By:
Matt Huffaker
City Manager
ATTACHMENTS:
1. PROFESSIONAL SERVICE AGREEMENT WITH CAROLLO.PDF
2. CONTRACT AMENDMENT 1 WITH MKN CPM, LLC.PDF
3. BUDGET ADJUSTMENT.PDF
33.4 City of Santa Cruz Professional Services Agreement for Engineering Services During Construction Beltz Well 8 Upgrades for Aquifer Storage and Recovery Project November 2025 Page 1
Professional Services Agreement With
CAROLLO ENGINEERS, INC.
For ENGINEERING SERVICES DURING CONSTRUCTION
BELTZ WELL 8 UPGRADES FOR
AQUIFER STORAGE AND RECOVERY PROJECT
THIS AGREEMENT for professional services is made by and between the City of Santa Cruz (“City”) and Carollo Engineers, Inc. (“Consultant”) (each is referred to individually as a “Party” and collectively, as the “Parties”) as of ____________, 2025 (the “Effective Date”).
NOW, THEREFORE, in consideration of each other’s mutual promises, the Parties hereto agree as follows:
SECTION 1: SCOPE OF WORK
Consultant will furnish services as defined and described in the Scope of Work and Work Schedule, attached hereto as Exhibit A and incorporated herein.
SECTION 2: RESPONSIBILITIES OF CONSULTANT
All work performed by Consultant, or under Consultant’s direction, shall be rendered in accordance with the generally accepted practices, and to the standards of, Consultant's profession. Consultant represents and agrees that Consultant: (i) is fully experienced and properly qualified to perform the work and services provided for herein, (ii) has the financial capability required for the performance of the work and services, and (iii) is properly equipped and organized to perform the work and services in a competent, timely, and proper manner, in accordance with the requirements of this Agreement.
Consultant shall not undertake any work beyond the Scope of Work set forth in Exhibit A unless such additional work is approved in advance and in writing by City. The cost of such additional work shall be reimbursed to Consultant by City on the same basis as provided for in Section 4.
If, in performing the work, it is necessary to conduct field operations, security and safety of the job site will be the Consultant's responsibility excluding, the security and safety of any facility of City within the job site which is not under the Consultant's control.
Consultant shall meet with Heidi Luckenbach, Director of the Water Department, hereinafter called "Director", or other designated and authorized City personnel, or third parties as necessary, on all matters connected with carrying out of Consultant’s services described in Exhibit A. Such meetings shall be held at the request of either Party.
Review and City approval of completed work shall be obtained monthly, or at other intervals as may be mutually agreed upon during the course of this Agreement. Review, approval, or acceptance of Consultant’s work by City or others shall not relieve Consultant from responsibility for errors and omissions in Consultant’s work.
In providing opinions of cost, financial analyses, economic feasibility projections, and schedules for potential projects, Consultant has no control over cost or price of labor and material; unknown or latent conditions of existing equipment or structures that may affect operation and maintenance costs; competitive bidding procedures and market conditions; time or quality of performance of third parties; quality, type, management, or direction of operating personnel; and other economic and operational factors that may materially affect the ultimate project cost or schedule. Therefore, Consultant makes no warranty that the City’s actual project costs, financial aspects, economic feasibility, or schedules will not vary from Consultant’s opinions, analyses, projections, or estimates to the extent that such economic or operational factors may have significantly changed from those relied upon by Consultant in formulating such opinions, analyses, projections or estimates.
33.5 City of Santa Cruz Professional Services Agreement for Engineering Services During Construction Beltz Well 8 Upgrades for Aquifer Storage and Recovery Project November 2025 Page 2
The City shall arrange for access to and make all provisions for Consultant to enter upon public and private property as required for Consultant to perform services hereunder.
SECTION 3: RESPONSIBILITIES OF THE CITY
City shall make available to Consultant all necessary data and information in the City's possession and shall actively assist Consultant in obtaining such information from other agencies and individuals as needed. Consultant is entitled to reasonably rely upon the accuracy and completeness of such data and information, and Consultant shall provide City prompt written notice of any known defects in such data and information.
The Director may authorize a staff person to serve as his or her representative. The work in progress shall be reviewed at such intervals as may be mutually agreed upon between the Parties. The City will be the sole judge of acceptable work, provided that such approval will not be unreasonably withheld or delayed. If the work is not acceptable, City will inform Consultant of the changes or revisions necessary to secure approval.
SECTION 4: FEES AND PAYMENT
For services actually performed, the City will compensate Consultant at the rates set forth in the Fee Schedule detailed in Exhibit B and in accordance with the terms set forth therein. Payment for Consultant's services in carrying out the entire Scope of Work shall be made within the budget limit, or limits shown, upon Exhibit B. Such payment shall be considered the full compensation for all personnel, materials, supplies, and equipment used by Consultant in the Scope of Work.
Consultant agrees that the payments to Consultant specified in this Section 4 will constitute full and complete compensation for all obligations assumed by Consultant under this Agreement. Where conflicts regarding compensation may occur, the provisions of this section apply.
Variations from the budget for each task which are justified by statements indicating personnel time expended and submittal of a revised budget are only allowed with prior City approval; however, in no event shall the total fee charged for the Scope of Work set forth in Exhibit A exceed the budget of $365,144.00 without advance written City authorization in the form of an amendment or change order.
Invoices shall detail the time worked by each class of employee on each task and the expenses incurred for which billing is made. Invoices shall indicate the percentage completion of each work task as identified in the Scope of Work in Exhibit A and the overall percentage of completion of the total required services. Unless otherwise specified in the fee schedule, payments shall be made monthly by the City within 30 days based on itemized invoices from the Consultant which list the actual costs and expenses.
All invoices shall contain the following affidavit signed by Consultant (if individual) or by a principal of Consultant’s firm (if Consultant is an entity):
"I hereby certify [or as principal of Consultant] that the charge of (Insert invoice amount) as summarized above and shown in detail on the attachments is a fair and reasonable use of public funds, is in accordance with the terms of Agreement dated (Insert Agreement Date) and has not been previously paid."
This Agreement is contingent upon the appropriation of sufficient funding by the City for the services covered by this Agreement. If funding is reduced or deleted by the City for the services covered by this Agreement, the City has the option without penalty or liability to either terminate this Agreement or to offer an amendment to this Agreement indicating the reduced amount.
33.6 City of Santa Cruz Professional Services Agreement for Engineering Services During Construction Beltz Well 8 Upgrades for Aquifer Storage and Recovery Project November 2025 Page 3
SECTION 5: TRAVEL REIMBURSEMENT POLICY
The City agrees to reimburse Consultant and Consultant’s employee(s) for only authorized travel expenses, as indicated by a mark below, and according to the City’s Travel Reimbursement Policy. It is expected that all travel expenses incurred by Consultant while conducting activities on behalf of the City will be at reasonable rates and that Consultant and Consultant’s employee(s) will exercise prudence in incurring these expenses. The total fees and costs of Consultant’s services shall not exceed the amount described in the Fee Schedule. ☒ Meals: Meals are reimbursed at the current GSA Meals & Incidental per diem rate by county (www.gsa.gov/travel). The City does not reimburse for actual costs for meals. Reimbursement is based solely on per diem rates. Do not submit meal receipts.
• Travel before 8:00am qualifies for breakfast reimbursement. • Travel between 8:00am – 1:30pm qualifies for lunch reimbursement. • Travel between 1:30pm – 7:00pm (or later) qualifies for dinner reimbursement. • Days between hotel stays and days starting before 8am and ending after 7pm, qualify for the full GSA Meals & Incidental per diem rate.
☒ Ground Transportation: Ground transportation is reimbursable when it is for travel between the Consultant’s place of business, an airport, or Santa Cruz hotel, as applicable, to the City work location.
1. Reasonable fees for taxis, shuttles, buses, trains, light rail, ride hailing services (Uber, Lyft or other), and similar modes of transportation will be reimbursed. Receipts are required for reimbursement.
2. When using vehicles owned by Consultant or Consultant’s employer:
• Mileage will be reimbursed at the current IRS mileage rate. • Evidence of automobile liability insurance meeting the City’s requirements must be provided. • Maps showing starting point, City work location, and total miles are required for reimbursement.
3. Use of car rentals are reimbursable when:
• Travel is necessary from an airport to the City work location. • The rental reservation is made as far in advance as is practical and the lowest possible price is obtained. • Insurance coverage is included, and the car is returned with a full tank of gas. • The smallest vehicle necessary is rented.
• Parking expenses are included in the GSA Meals & Incidental per diem rate. The City will not pay additionally for parking expenses.
• Receipts are required for reimbursement.
☐ Airfare: Airfare is reimbursable when the Consultant’s place of business, or Consultant’s employee’s home, is more than 250 miles away from Santa Cruz.
• Airfare must be lowest available coach class fare. Flights may be non-stop. • Airfare must be booked as far in advance as is practical. • Fees for one piece of checked luggage (and any equipment necessary for the work being done) will be reimbursed.
• Extra charges for seat assignments, refundable tickets, travel insurance/protection, and similar fees are not reimbursable.
• If the City cancels the need for travel and the ticket cannot be changed or refunded, the ticket cost will be reimbursable.
• Receipts are required for reimbursement.
☒ Lodging: Lodging is reimbursable when the Consultant must work on site for two or more consecutive days and the Consultant’s place of business or personal residence, is more than 60 miles away from Santa Cruz.
33.7 City of Santa Cruz Professional Services Agreement for Engineering Services During Construction Beltz Well 8 Upgrades for Aquifer Storage and Recovery Project November 2025 Page 4
• Lodging is reimbursed up to the current GSA rate by county (www.gsa.gov/travel). • Costs for hotel rooms above this rate are the responsibility of the traveler. • Receipts are required for reimbursement.
General Rule
1. Travel expenses not listed or checked above will not be reimbursed.
2. Travel reimbursements are paid after the completion of travel. There are no travel advances.
3. Exceptions to any of the above requirements require advance written permission from the Director or City’s designated agent contracting with the Consultant.
4. Tips and gratuities will not be reimbursed.
5. Alcoholic beverage purchases will not be reimbursed.
6. Consultants will exercise prudence in incurring reimbursable expenses.
7. The City of Santa Cruz has the sole discretion to deny any reimbursement request the City has determined to be excessive or an inappropriate use of public funds.
SECTION 6: CHANGES IN WORK
City may negotiate changes in the Scope of Work. No changes in the Scope of Work shall be made without the written approval of City and Consultant. Any change requiring compensation in excess of the sum specified in Exhibit B shall be approved in advance in writing by the City. Only City’s authorized representative(s) is authorized to approve changes to this Agreement on behalf of City.
SECTION 7: TERM AND SCHEDULE
The term of this Agreement shall be on the effective date of this Agreement and terminating on upon completion of the Scope of Work. At the option of the City, this Agreement may be renewed annually under the same contractual terms and conditions by letter agreement.
Consultant shall begin work as specified in a written authorization (e.g., Notice to Proceed) to perform services. The written authorization to perform work shall not be issued until after this Agreement has been approved and authorized by the City.
The Work Schedule for completion of the work shall be as shown on page 7 of Exhibit A. In the event that major changes are ordered, the schedule for completion as stated in Exhibit A may be adjusted by City so as to allow Consultant a reasonable period of time within which to complete any additional work which may be required as a result of the ordered changes.
Neither party will be held responsible for delay or default caused by declared emergencies, natural disasters, or any Force Majeure event which is beyond the party's reasonable control. Consultant will, however, make all reasonable efforts to remove or eliminate such a cause of delay or default and will, upon the cessation of the cause, diligently pursue performance of its obligations in this Agreement.
The City reserves the right to obtain the item(s) and/or services covered by this Agreement from another source during any on-going suspension of service due to the circumstances outlined above.
Consultant acknowledges that it is necessary for Consultant to complete its work on or before the completion date set forth in Exhibit C in order to allow the City to achieve its objectives for entering into this Agreement. The Parties therefore agree that time is of the essence in the performance of this Agreement.
33.8 City of Santa Cruz Professional Services Agreement for Engineering Services During Construction Beltz Well 8 Upgrades for Aquifer Storage and Recovery Project November 2025 Page 5
SECTION 8: TERMINATION
The City may terminate the Agreement for any reason by providing written notice to Consultant not less than 10 calendar days prior to an effective termination date.
The Consultant may terminate the Agreement for cause by providing written notice to the City` not less than 30 calendar days prior to an effective termination date.
The City may, at its option, allow Consultant to cure its failure to perform within 10 business days (or longer period authorized in writing by the City) from the date of the City’s termination notice. The termination shall become effective if Consultant has not cured within the specified time period to the City’s satisfaction.
Consultant may terminate this Agreement for cause if the City fails to cure a material default in performance within a period of 30 calendar days (or such longer period agreed to by the Consultant), from date of the Consultant’s written termination notice specifying the default in performance.
Upon notice of termination by either the City or Consultant, the Consultant will immediately act to not incur any additional obligations, costs or expenses, except as may be reasonably necessary to terminate its activities. The City’s only obligation to the Consultant will be just and equitable payment for services authorized by, and received to the satisfaction of, the City up to and including the effective date of termination less any amounts withheld. All finished or unfinished work or documents procured or produced under the Agreement will become property of the City upon the termination date. In the event of Consultant’s failure to perform pursuant to the Agreement, the City reserves the right to obtain services elsewhere and Consultant will be liable for the difference between the prices set forth in the terminated Agreement and the actual cost to the City. Termination of the Agreement pursuant to this paragraph shall not relieve the Consultant of any liability to City for additional costs, expenses, or damages sustained by City due to failure of the Consultant to perform pursuant to the Agreement. City may withhold any payments to Consultant for the purpose of set-off until such time as the exact amount of damages due City from Consultant is determined. After the effective date of termination, Consultant will have no further claims against the City under the Agreement. No other compensation will be payable for anticipated profit on unperformed services.
SECTION 9: INSURANCE
Prior to the beginning of and throughout the duration of the Agreement, Consultant will maintain and comply with the Insurance Requirements as set forth in Exhibit C. Consultant will insure the City against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder. The insurance coverages required shall not in any way limit the liability of the Consultant.
SECTION 10: INDEMNIFICATION
Consultant agrees, to the fullest extent permitted by law, to indemnify, defend, and hold harmless the City, its officials, officers, employees, agents, and volunteers (collectively, “Indemnitees”) from and against any and all liability, claim, action, loss, injury, damage, judgment, or expense, including attorneys’ fees and costs (“Losses”) caused by or resulting from the negligence, recklessness, or willful misconduct of Consultant, Consultant’s officers, employees, agents, or subcontractors in any way related to this Agreement. Consultant’s duty to indemnify and hold harmless Indemnitees shall not apply to the extent such Losses are caused by the sole or active negligence or willful misconduct of Indemnitees. Consultant’s obligation to defend shall arise regardless of any claim or assertion that Indemnitees caused or contributed to the Losses.
In the event this Agreement involves the performance of design professional services by Consultant, Consultant’s officers, employees, agents, or subcontractors, Consultant’s costs to defend Indemnitees shall not exceed the
33.9 City of Santa Cruz Professional Services Agreement for Engineering Services During Construction Beltz Well 8 Upgrades for Aquifer Storage and Recovery Project November 2025 Page 6
Consultant’s proportionate percentage of fault per Civil Code §2782.8. This section shall survive the termination or expiration of this Agreement.
SECTION 11: EQUAL EMPLOYMENT OPPORTUNITY/NON-DISCRIMINATION POLICIES City’s policies promote a working environment free from abusive conduct, discrimination, harassment, and retaliation; and require equal opportunity in employment for all regardless of race, religious creed (including religious dress and grooming practices), color, national origin (including language use restrictions), ancestry, religion, disability (mental and physical), medical condition, sex, gender (including gender identity and gender expression), physical characteristics, marital status, age, sexual orientation, genetic information (including family health history and genetic test results), organizational affiliation, and military or veteran status, or any other consideration made unlawful by local, State or Federal law. City requires Consultant to comply with all applicable Federal and State and local equal employment opportunity laws and regulations, and Consultant is responsible for ensuring that effective policies and procedures concerning the prevention of abusive conduct, discrimination, harassment, and retaliation exist in Consultant’s business organization. The City’s current Equal Employment Opportunity and Non-Discrimination policies to which this Section applies may be viewed at http://www.codepublishing.com/CA/SantaCruz/?SantaCruz09/SantaCruz0983.html and http://www.cityofsantacruz.com/home/showdocument?id=59192.
SECTION 12: LEGAL ACTION/ATTORNEYS’ FEES
If any action at law or in equity is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief. The laws of the State of California, with jurisdiction in the Santa Cruz County Superior Court, shall govern all matters relating to the validity, interpretation, and effect of this Agreement and any authorized or alleged changes, the performance of any of its terms, as well as the rights and obligations of Consultant and the City.
SECTION 13: AMENDMENTS
This Agreement may not be amended in any respect except by way of a written instrument which expressly references and identifies this particular Agreement, which expressly states that its purpose is to amend this particular Agreement, and which is duly executed by the City and Consultant. Consultant acknowledges that no such amendment shall be effective until approved and authorized by the City’s authorized representative. No representative of the City is authorized to obligate the City to pay the cost or value of services beyond the scope of services set forth in Exhibit A.
Such authority is retained solely by the City Manager, Director, or their designee. Unless expressly authorized by the City Manager or Director, Consultant’s compensation shall be limited to that set forth in Exhibit B, Fee Schedule.
SECTION 14: MISCELLANEOUS PROVISIONS
1. Project Manager/Key Staff. Director reserves the right to evaluate and confer with Consultant regarding the project manager or other key staff assigned by Consultant to perform the work under this Agreement. Consultant shall replace the project manager or key staff upon Director’s request due to Director’s concern about their performance, or City shall have the right to terminate this Agreement. Otherwise, no change in assignment by the Consultant may occur without prior written approval of the City.
2. Consultant Services Only. Consultant is employed to render professional services only and any payments made to Consultant are compensation solely for such professional services.
3. Independent Contractor. In the performance of this Agreement, it is expressly understood that Consultant, including each of Consultant’s employees, agents, subcontractors or others under Consultant’s supervision or control, is an independent contractor solely responsible for its own acts and omissions, and shall not be considered an employee of the City for any purpose. Consultant agrees to comply with AB5, codified at Labor Code section 2750.3, and
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shall indemnify, defend and hold harmless the City, its officials, officers, employees, and agents against any claim or liability, including attorneys’ fees and costs, arising in any manner related to this Agreement that an employee, agent or others under Consultant’s supervision or control was misclassified.
4. Consultant Not an Agent. Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.
5. Subcontractors. Consultant shall obtain prior approval of the City prior to subcontracting of any work pursuant to this Agreement. If at any time, the City determines any subcontractor is incompetent or unqualified, Consultant will be notified and will be expected to immediately cancel the subcontract. Consultant shall require and verify that all subcontractors maintain insurance meeting all of the requirements stated herein, including naming the City of Santa Cruz, its officers, officials, employees, agents, and volunteers as additional insureds. Any modification to the insurance requirements for subcontractors must be agreed to by the City in writing.
6. Assignment. This Agreement shall not be assigned without first obtaining the express written consent of the Director or after approval of the City Council. Neither party may assign this Agreement unless this Agreement is amended in accordance with its terms.
7. Conflicts of Interest. Consultant agrees to comply with conflict of interest lawsin performing the work and services under this Agreement. Consultant covenants (on behalf of Consultant and Consultant’s employees, agents, representatives, and subcontractors) that there is no direct or indirect interest, financial or otherwise, which would conflict in any manner or degree with the performance of services required under this Agreement. Consultant acknowledges and agrees to comply with applicable provisions of conflict of interest law and regulations, including the CA Political Reform Act, Sections 1090 and 87100 of the Government Code, and the City’s conflict of interest code. Consultant will immediately advise City if Consultant learns of a conflicting financial interest of Consultant during the term of this Agreement.
8. City Property. The work, or any portion, of Consultant in performing this Agreement shall become the property of City. The Consultant may be permitted to retain copies of such work for information and reference in connection only with the provision of services for the City. All materials and work product, whether finished or unfinished, shall be delivered to City upon completion of contract services or termination of this Agreement for any reason.
Consultant acknowledges and agrees that the work product shall be considered a work made for hire within the meaning of the patent and copyright laws of the United States; and Consultant agrees that all copyrights which arise from creation of project-related documents and materials pursuant to this Agreement shall be vested in the City and Consultant waives and relinquishes all claims to copyright or other intellectual property rights in favor of City. Any work product related to this Agreement shall be confidential, not to be used by the Consultant on other projects or disclosed to any third party, except by agreement in writing by the City, or except as otherwise provided herein.
Consultant’s final deliverables shall comply with Section 508 (29 U.S.C. Section 794d) accessibility requirements, as applicable. . Documents, including drawings and specifications prepared by Consultant pursuant to this Agreement are not intended or represented to be suitable for reuse by the City or others on any other project.
9. Intellectual Property and Indemnity. Consultant represents to City that, to the best of Consultant’s knowledge, any Intellectual Property (including but not limited to: patent, patent application, trade secret, copyright and any applications or right to apply for registration, computersoftware programs or applications, tangible or intangible proprietary information, or any other intellectual property right) in connection with any services and/or products related to this Agreement does not violate or infringe upon any Intellectual Property rights of any other person or entity.
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To the fullest extent permitted by law, Consultant agrees to indemnify, defend, and hold harmless City, its officials, officers, employees, and agents, from any and all claims, demands, actions, liabilities, damages, or expenses (including reasonable attorneys’ fees and costs) arising out of a claim of infringement, actual or alleged, direct or contributory, of any Intellectual Property rights in any way related to Consultant’s performance under this Agreement or to the City’s authorized intended or actual use of Consultant’s product or service under this Agreement. This provision shall survive termination or expiration of this Agreement.
If any product or service becomes, or in the Consultant’s opinion is likely to become, the subject of a claim of infringement, the Consultant shall, at its sole expense: (i) provide the City the right to continue using the product or service; or (ii) replace or modify the product or service so that it becomes non-infringing; or (iii) if none of the foregoing alternatives are possible even after Consultant’s commercially reasonable efforts, in addition to other available legal remedies, City will have the right to return the product or service and receive a full or partial refund of an amount equal to the value of the returned product or service, less the unpaid portion of the purchase price and any other amounts, which may be due to the Consultant. City shall have the right to retrieve its data and proprietary information at no charge prior to any return of the product or termination of service.
10. Confidentiality.
a. Consultant shall not acquire any ownership interest in data and information (“City Data”) received by Consultant from City, which shall remain the property of the City. Certain information may be considered confidential (“Confidential Information”). Confidential Information shall mean all information or proprietary materials (in every form and media) not generally known to the public and which has been or is hereafter disclosed or made available directly or indirectly to Consultant through any means of communication, either verbally or in writing even if it has not been designated in writing as “Confidential” to Consultant in connection with this Agreement. Unless otherwise required by law, Consultant shall not, without City’s written permission, use or disclose City Data and/or Confidential Information other than in the performance of the obligations under this Agreement. As between Consultant and City, all City Confidential Information shall remain the property of the City. Consultant shall not acquire ownership interest in the City’s Confidential Information.
b. Consultant shall be responsible for ensuring and maintaining the security and confidentiality of City Data and Confidential Information, protect against any anticipated threats or hazards to the security or integrity of City Data and Confidential Information, protect against unauthorized access to or use of City Data and Confidential Information that could result in substantial harm or inconvenience to City or any end users; and ensure the proper return and/or disposal of City Data and Confidential Information upon termination of this Agreement with notice to the City.
c. Consultant shall take appropriate action to address any incident of unauthorized access to City Data and Confidential Information, including addressing and/or remedying the issue that resulted in such unauthorized access, notifying City as soon as possible of any incident of unauthorized access to City Data and Confidential Information, or any other breach in Consultant’s security that materially affects City or end users; and be responsible for ensuring compliance by its officers, employees, agents, and subcontractors with the confidentiality provisions hereof. Should confidential and/or legally protected City Data be divulged to unauthorized third parties, Consultant shall comply with all applicable federal and state laws and regulations, including but not limited to California Civil Code sections 1798.29 and 1798.82 at Consultant’s sole expense. Consultant shall not charge City for any expenses associated with Consultant’s compliance with these obligations.
d. Consultant shall defend, indemnify and hold harmless City, its officials, officers, employees and agents against any claim, liability, loss, injury or damage (including attorneys’ fee and costs) arising out of, or in
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connection with, the unauthorized use, access, and/or disclosure of City Data and/or Confidential Information by Consultant and/or its agents, employees or subcontractors, excepting only loss, injury or damage caused by the sole negligence or willful misconduct of the City. This provision shall survive the termination or expiration of this Agreement.
11. Consultant's Records. Consultant shall maintain accurate accounting records and other written documentation pertaining to the costs incurred relating to this Agreement for examination and audit by the City, State, or federal government, as applicable, during the period of this Agreement, and for a period of at least five (5) years from the date of the final City payment for Consultant's services, or date of the termination of this Agreement, whichever is later. If Consultant engages a subcontractor to perform work related to this Agreement with a cost of $10,000 or more over a 12-month period, such subcontract shall contain these same requirements. This provision shall survive the termination of this Agreement.
12. California Public Records Act. City is a public agency subject to the disclosure requirements of the California Public Records Act (“CPRA”). If Consultant’s proprietary information is contained in documents or information submitted to City, and Consultant claims that such information falls within one or more CPRA exemptions, Consultant must clearly mark such information “Confidential and Proprietary,” and identify the specific lines containing the information. In the event of a request for such information, City will make best efforts to provide notice to Consultant prior to such disclosure. If Consultant contends that any documents are exempt from the CPRA and wishes to prevent disclosure, it is required to obtain a protective order, injunctive relief, or other appropriate remedy from a court of law in Santa Cruz County before the City is required to respond to the CPRA request. If Consultant fails to obtain such remedy within the time the City is required to respond to the CPRA request, City may disclose the requested information without any liability. Consultant further agrees that it shall defend, indemnify and hold City harmless against any claim, action or litigation (including but not limited to all judgments, costs, and attorney’s fees) that may result from denial by City of a CPRA request for information arising from any representation, or any action (or inaction), by the Consultant.
13. Compliance with Laws. All activities of Consultant, its employees, subcontractors and/or agents will be carried out in compliance with all applicable federal, state, and local laws and regulations. Consultant further agrees to comply with the covenant of good faith and fair dealing and other provisions of Santa Cruz Municipal Ordinance chapter 3.09, or otherwise Consultant may be subject to penalties including being declared an irresponsible contractor.
14. Licensure. Consultant agrees that Consultant, its subcontractors and/or agents (if any) has/have complied with all applicable federal, state, and local licensing requirements and agrees to provide proof of a current City of Santa Cruz Business Tax Certificate if:
• Consultant, its subcontractor(s) and agent(s) or its business is/are located in the City of Santa Cruz; • Will perform actual work in the City of Santa Cruz for 6 or more days annually; or • Will use company vehicles to deliver within the City of Santa Cruz for 6 or more days annually.
For additional information and licensing requirements, view the City’s Business Licenses and Permits webpage or call the Revenue and Taxation division at 831/420-5070.
15. Living Wage. Every contract for services to the City for $10,000 or more, is subject to City of Santa Cruz Living Wage Ordinance number 2000-25. If applicable, Consultant agrees to comply with the requirements of the Living Wage ordinance as provided in Santa Cruz Municipal Code Chapter 5.10.
16. Prevailing Wages for Public Work. To the extent that the work or services to be performed under this Agreement may be considered a “public work” (construction, alteration, demolition, or repair work) pursuant and subject to Labor Code section 1720 et seq., Consultant (and any subconsultant performing the work or services) shall conform to any and all prevailing wage requirements applicable to such work/and or services under this
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Agreement. Consultant (and any subconsultant) shall adhere to the prevailing wage determinations made by the Director of Industrial Relations (DIR) pursuant to California Labor Code Part 7, Chapter 1, Article 2, applicable to the work, if any. All workers employed in the execution of a public works contract (as such term is defined California Labor Code section 1720 et seq. and section 1782(d)(1)) must be paid not less than the specified prevailing wage rates for the type of work performed. (CA Labor Code sections 1720, 1774 and 1782.) To the extent applicable to the scope of work and services under this Agreement, Consultant agrees to be bound by the state prevailing wage requirements, including, but not limited to, the following:
a. If a worker is paid less than the applicable prevailing wage rate owed for a calendar day (or any portion thereof), Consultant shall pay the worker the difference between the prevailing wage rate and the amount actually paid for each calendar day (or portion thereof) for which the worker(s) was paid less than the prevailing wage rate, as specified in Labor Code section 1775; b. Consultant shall maintain and make available payroll and worker records in accordance with Labor Code sections 1776 and 1812;
c. If Consultant employs (and/or is legally required to employ) apprentices in performing the work and/or services under this Agreement, Consultant shall ensure compliance with Labor Code section 1777.5; d. Consultant is aware of the limitations imposed on overtime work by Labor Code sections 1810 et seq. and shall be responsible for any penalties levied in accordance with Labor Code section 1813 for failing to pay required overtime wages;
e. Consultant shall post a copy of the applicable wage rates at each jobsite at a location readily available to its workers.
f. Any failure of Consultant and/or its subconsultant to comply with the above requirements relating to a public work project shall constitute a breach of this Agreement that excuses the City’s performance of this Agreement at the City’s sole and absolute option and shall be at the sole risk of Consultant. Consultant on behalf of itself and any subconsultant, agree to indemnify, defend and hold harmless the City and its officials, officers, employees, and agents from and against any and all claims, liabilities, losses, costs, expenses, attorney’s fees, damages, expenses, fines, financial consequences, interest, and penalties, of any kind or nature, arising from or relating to any failure (or alleged failure) of the Consultant and any subconsultant to pay prevailing wages or to otherwise comply with the requirements of prevailing wage law relating to a public work.
g. Consultant acknowledges that it and/or any subconsultant may not engage in the performance of any contract for public work unless currently registered with the DIR and qualified to perform public work pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].
17. Storm Water Requirements. To the extent applicable to the Scope of Work under this Agreement, Consultant, Consultant’s employees, subcontractors, and agents are required to abide by the applicable City of Santa Cruz Storm Water Best Management Practices (BMPs) for the duration of the work. The City’s mandatory Storm Water BMPs, which are listed according to the type of work, operations, or business, are located on the City website at: https://www.cityofsantacruz.com/government/city-departments/public-works/stormwater/bestmanagement-practices
18. Dispute Resolution. The Parties agree to attempt in good faith to resolve through negotiation any dispute, claim or controversy arising out of or relating to this Agreement. Either party may initiate negotiations by providing written notice in letter form to the other party, setting forth the subject of the dispute and the relief requested.
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Promptly upon such notification, the Parties shall meet at a mutually agreeable time and place in order to exchange relevant information and perspective, and to attempt to resolve the dispute. In the event that no resolution is achieved, and if, but only if, the parties mutually agree, then prior to pursuing formal legal action, the parties shall make a good faith effort to resolve the dispute by non-binding mediation or negotiations between representatives with decision-making power, who, to the extent possible, shall not have had substantive involvement in the matters of the dispute. To the extent that the dispute involves or relates to a public works project, the Parties agree to attempt to resolve the dispute by complying with the claims process as set forth in Public Contract Code sections 9204(e), 20104-20104.6, but without waiving the requirements of the California Tort Claims Act, Gov’t Code section 800 et seq. unless otherwise agreed to by the Parties.
19. Force Majeure. Neither party hereto shall be considered in default in the performance of its obligation hereunder to the extent that the performance of any such obligation is prevented or delayed by an act of God, natural disaster, pandemic, acts of terrorism, war, a strike, lockout or other labor difficulty, or other peril, which is beyond the reasonable control of the affected party and without the negligence of the respective Parties. Each party hereto shall give notice promptly to the other of the nature and extent of any Force Majeure claimed to delay, hinder or prevent performance of the services under this Agreement. Each Party will, however, make all reasonable efforts to remove or eliminate such a cause of delay or default and will, upon the cessation of the cause, diligently pursue performance of its obligations in this Agreement. In the event either party is prevented or delayed in the performance of its respective obligation by reason of such Force Majeure, the only remedy is that there may be an equitable adjustment of the schedule based on City’s sole discretion.
20. Complete Agreement. This Agreement, along with any attachments, is the full and complete integration of the Parties’ agreement with respect to the matters addressed herein, and that this Agreement supersedes any previous written or oral agreements between the Parties with respect to the matters addressed herein. Unless otherwise stated, to the extent there is any conflict between this Agreement and any other agreement (written or oral), the terms of this Agreement shall control.
21. Severability. The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the other provisions unenforceable, invalid or illegal.
22. Waiver. Waiver by any party of any portion of this Agreement shall not constitute a waiver of the same or any other portion hereof.
23. Governing Law. This Agreement shall be governed by and interpreted in accordance with California law, unless otherwise stated herein
24. Contract Interpretation. Each party acknowledges that it has reviewed this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement.
25. MacBride Principles/Peace Charter. City of Santa Cruz Resolution NS-19,378 (7/24/90) encourages all companies doing business in Northern Ireland to abide by the MacBride Principles and Peace Charter.
26. Notices. If either party shall desire or is required to give notice to the other such notice shall be given in writing, via email, and concurrently delivered by: (a) personal delivery, in which case notice is effective upon delivery; (b) overnight courier (i.e., Federal Express) with charges prepaid or charged to the sender’s account, in which case notice is effective when delivered; (c) priority U.S. Mail, in which case notice shall be deemed delivered on the second business day after the deposit thereof with the U.S. Postal Service. Notices shall be addressed to recipient as follows:
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To CITY:
City of Santa Cruz Water Department
Heidi Luckenbach, Water Director
212 Locust Street, Suite A
Santa Cruz, CA 95060
[email protected] / (831) 420-5200
To CONSULTANT:
Carollo Engineers, Inc.
Chris Cleveland, Sr. Vice President
2795 Mitchell Drive
Walnut Creek, CA 94598
[email protected] / (916) 207-4359
Changes to the above information shall be given to the other party in writing ten (10) business days before the change is effective.
27. Third Parties. The services to be performed by Consultant are intended solely for the benefit of the City.
28. Debarment and Suspension.
a. The contract is a covered transaction for purposes of 2 CFR Part 180 and 2 CFR Part 3000. As such, the Contractor is required to verify that none of the Contractors, its principals (defined at 2 CFR § 180.995), or its affiliates (defined at 2 CFR § 180.905) are excluded (defined at 2 CFR § 180.940) or disqualified (defined at 2 CFR § 180.935).
b. The Contractor must comply with 2 CFR Part 180, Subpart C and 2 CFR Part 3000, Subpart C and must include a requirement to comply with these regulations in any subcontract. c. If it is later determined that the Contractor did not comply with 2 CFR Part 180, Subpart C and 2 CFR Part 3000, Subpart C, in addition to remedies available to the City, the Federal Government may pursue available remedies, including, but not limited to, suspension and/or debarment. d. The bidder or proposer agrees to comply with the requirements of 2 CFR Part 180, Subpart C and 2 CFR Part 3000, Subpart C while this offer is valid and throughout the period of any contract that may arise from this offer. The bidder or proposer further agrees to include a provision requiring such compliance in its subcontracts.
29. Byrd Anti-Lobbying Amendment and Certification.
a. Contractors that apply or bid for an award exceeding $100,000 must file the required certification. The Contractor certifies to the City and every Subcontractor certifies to the Contractor that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining the Contract if it is covered by 31 U.S.C. 1352. The Contractor and every Subcontractor must also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the City. Necessary certification and disclosure forms shall be provided by City.
30. Counterparts. The Parties may execute this Agreement in two or more counterparts, which shall, in the aggregate, be deemed an original but all of which, together, shall constitute one and the same instrument. A scanned, electronic, facsimile or other copy of a party’s signature shall be accepted and valid as an original.
31. Warranty of Authority. The signatories to this Agreement warrant and represent that each is authorized to execute this Agreement and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this Agreement.
32. Supplementary Conditions. When Funding for the services is provided, in whole or in part, by an agency of the state and/or federal government, Consultant shall also fully and adequately comply with the provisions in Exhibit
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D attached hereto and incorporated herein by reference (“State and Federal”). With respect to any conflict between such Federal Requirements and the terms of this Agreement and/or the provisions of state law, the more stringent requirement shall control.
[SIGNATURES ON FOLLOWING PAGE]
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Approved As To Form:
By: _____________________________ Date: __________________ Office of the City Attorney
CITY OF SANTA CRUZ
By: _____________________________ Date: __________________ Matt Huffaker
City Manager
CONSULTANT
By: _____________________________ Date: __________________ Printed: ___________________________ Title: __________________ By: _____________________________ Date: __________________ Printed: ___________________________ Title: __________________ Signature Requirements for Corporation:
Corporation – 2 officer signatures required (one from each group, unless person signing holds officer positions in both Group 1 and 2):
Group 1: Chief Executive Officer, Chairman of the Board, President, or Vice President Group 2: Secretary, Assistant Secretary, Chief Financial Officer, Treasurer, Assistant Treasurer Technical Review By:
By: _____________________________ Date: __________________ Isidro Rivera, P.E., Deputy Water Director/ Engineering Manager
WATER DEPARTMENT
By: _____________________________ Date: __________________ Heidi Luckenbach, P.E.
Water Director
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EXHIBIT A: SCOPE OF WORK AND WORK SCHEDULE
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Professional Services Agreement with
CAROLLO ENGINEERS, INC. for
ENGINEERING SERVICES DURING CONSTRUCTION FOR THE BELTZ 8 UPGRADES FOR
AQUIFER STORAGE AND RECOVERY PROJECT
SCOPE OF WORK
The City of Santa Cruz (City) entered into a professional services agreement with Carollo Engineers, Inc. (Consultant) on July 18th, 2023 for engineering design in support of converting the existing Beltz Wells 8 and 12 from conventional production wells to aquifer storage and recovery (ASR) wells. Amendment 2 (executed on July 10th, 2024) divided the original scope of work into two separate projects (Beltz 8 Upgrades for Aquifer Storage and Recovery; Beltz 12 Upgrades for Aquifer Storage and Recovery) to be bid separately.
This scope of work for Engineering Services During Construction (ESDC) for Beltz 8 Upgrades for Aquifer Storage and Recovery Project generally includes construction-period project management, attendance at the pre-construction conference and regular site visits, responses to contractor requests for information (RFI), shop drawing submittal review, commissioning and training assistance, permitting assistance, structural observation, attendance at the final site walk, preparation of record drawings, and preparation of the final operations manual.
TASK 1 – ENGINEERING SERVICES DURING CONSTRUCTION
Task 1.1 ESDC Project Management
This task includes general ESDC-phase project management, monthly invoicing and progress reports, and regular communication with CITY and CONSTRUCTION MANAGER staff for the assumed duration of construction (see ESDC assumptions).
Task 1.2 Attend Pre-Construction Conferences
CONSULTANT’s Project Manager and Project Engineer will attend two pre-construction conferences in person as scheduled by the CITY and CONSTRUCTION MANAGER. Preconstruction conferences will be located at the project site. CONSULTANT’s Project Manager will provide a verbal overview of the project for the contractor and note any questions to be addressed via RFI.
Task 1.3 Attend Progress Meetings
CONSULTANT’s Project Manager and Project Engineer will attend regularly scheduled progress meetings and conduct site visits as required to address construction questions, review progress, and document completed work. Up to 8 in-person site visits and 40 remote meetings (conference calls) are assumed under this task. Regular progress meetings will be scheduled by the CONSTRUCTION MANAGER and are assumed to occur weekly for the first month of the administrative period, bi-weekly for the remainder of the administrative period, and weekly during the construction period.
Exhibit A
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Task 1.4 Respond to RFIs
CONSULTANT will respond to requests for information (RFIs) submitted by the contractor to the CONSTRUCTION MANAGER. Responses will be submitted in writing and delivered to the CONSTRUCTION MANAGER electronically. Review of 30 RFIs are assumed under this task.
Task 1.5 Shop Drawing Submittal Review
CONSULTANT will review shop drawings submitted by the contractor for conformance to project plans and specifications. Responses will be submitted in writing and delivered to the CONSTRUCTION MANAGER electronically. Review of 80 shop drawing submittals (combined total of original submittals and resubmittals) are assumed under this task.
Task 1.6 Testing, Commissioning, Startup, and Training Assistance CONSULTANT and will assist the CONSTRUCTION MANAGER and City’s hydrogeologist consultant with testing, commissioning, and startup of the project facilities. Up to 40 hours of CONSULTANT staff time and two site visits are assumed under this task. Actual work completed under this task will be dependent on project needs; possible tasks include:
troubleshooting controls and operational strategies, developing additional testing or commissioning plans as required, or assisting City staff with training beyond what is provided by manufacturer’s representatives. CONSULTANT will review and provide comments on the Contractor’s work plan for monitoring and reporting program compliance with the ASR General Order permit for sampling during testing and commissioning. CONSULTANT will prepare a summary report of the testing field notes (conducted by Contractor or Construction Manager) which will include statement of chain of custody, methods followed, volume of injection, volume of extraction, time, and samples taken. Laboratory sample results will be received by the City following completion of testing.
Task 1.7 AIS Compliance Coordination
CONSULTANT will assist the contractor in identifying products that do not meet American Iron and Steel (AIS) compliance requirements. CONSULTANT will assist CONSTRUCTION MANAGER and CITY with preparation of technical justification for AIS waiver requests. AIS waiver requests will be filed by CITY staff.
Task 1.8 Structural Observation
CONSULTANT’s structural engineer will provide structural observation of concrete work as indicated in the contract documents, including rebar placement and structural anchorage.
This task excludes construction materials testing and special inspection work, as well as all laboratory and field testing (i.e. compaction of soil and aggregates) services. CONSTRUCTION MANAGER will be responsible for all construction materials testing (field and laboratory) services.
Task 1.9 Prepare Operations Manual
CONSULTANT will prepare a standalone operations manual for the Beltz 8 ASR well. The manual will describe all aspects of ASR well operation, including operational criteria, control logic, and system limitations. The operations manual will be developed in coordination with the project hydrogeologist. The Draft Operations Manual will be provided to the contractor prior to testing and commissioning.
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Task 1.10 Attend Final Site Walk and Prepare Record Drawings CONSULTANT will attend a final acceptance site walk as scheduled by the CONSTRUCTION MANAGER to note any items required for project completion. CONSULTANT will prepare record drawings based on redlines prepared by the contractor and reviewed by the CONSTRUCTION MANAGER. Record drawings will be updated on a monthly basis based on redlines provided by the CONSTRUCTION MANAGER. CONSULTANT will also furnish a 2D drawing (AutoCAD .DWG format) of the Beltz 8 wellhead and associated piping for City use.
Task 1.11 OPTIONAL TASK: Change Order Review
At the City’s direction, CONSULTANT will review proposed change orders submitted by the Contractor. CONSULTANT will determine if a change is warranted based on the contract documents and will evaluate the cost of the change order proposal in coordination with the CONSTRUCTION MANAGER. This optional task assumes a total level of effort of up to 36 hours for up to four proposed change orders.
ESDC Assumptions
• Total Construction duration will not exceed 15 months (5 month administrative period, 9 month construction period, and 1 month post-construction). • Up to 8 in-person site visits and 24 virtual progress meetings (via Microsoft Teams or similar format) are assumed under Task 1.3.
• Additional in-person meetings include: pre-construction conferences (Task 1.2), commissioning assistance (Task 1.6, up to 2 meetings), structural observations (Task
1.8, up to 2 meetings), and site walk for final completion (1.10). • Up to 30 RFIs are assumed under this task.
• Up to 80 shop drawing submittals (combined total of original submittals and resubmittals) are assumed under this task.
• CONSTRUCTION MANAGER will be responsible for all direct, formal communication with the contractor.
• CONSTRUCTION MANAGER will be responsible for completion of change order reviews.
• CONSULTANT will route all correspondence through the CONSTRUCTION MANAGER. • Up to two days (one trip each) of structural observation are assumed under Task 1.8. • Construction materials testing and inspection are excluded from this scope of services. • Geotechnical observation is excluded from this scope of services. • Environmental services and any non-DDW permitting services are excluded from this scope of services.
TIME OF PERFORMANCE
CONSULTANT will perform the ESDC scope of services over an assumed 15-month construction duration (5 month administrative period, 9 month construction period, and 1 month post-construction).
PAYMENT
Payment for services will be per the attached Engineering Services During Construction Fee Proposal on a time and materials basis.
33.22 City of Santa Cruz Professional Services Agreement for Engineering Services During Construction Beltz Well 8 Upgrades for Aquifer Storage and Recovery Project November 2025 Page 16
EXHIBIT B: FEE SCHEDULE
33.23 City of Santa Cruz Professional Services Agreement for Engineering Services During Construction Beltz Well 8 Upgrades for Aquifer Storage and Recovery Project November 2025 Page 17
EXHIBIT C: INSURANCE REQUIREMENTS
Consultant shall procure and maintain insurance against claims for injuries to persons or damages to property and otherwise which may arise from or in connection with the performance of the work under this Agreement and the results of that work by Consultant, its agents, representatives, employees, or subcontractors.
A. CERTIFICATE REQUIREMENTS
The City will be issued a Certificate of Insurance (a Memorandum of Understanding will not be accepted) with the following minimum requirements:
• Certificate(s) will show current policy number(s) and effective dates, • Coverage and policy limits will meet, or exceed, requirements below, • The Certificate Holder will be City of Santa Cruz, Risk Management, 1200 Pacific Ave., Suite 290, Santa Cruz, CA 95060,
• Certificate will be signed by an authorized representative, • An endorsement, if required below, will be provided to show the City, its officers, officials, employees, and volunteers as additional insureds, and
• Coverages must be maintained during the term of the Agreement with the City, unless a longer duration is required as specified below.
B. MINIMUM SCOPE AND LIMITS OF INSURANCE
Consultant acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. If Consultant maintains broader insurance coverage and/or higher limits than the minimums shown below, the City of Santa Cruz requires and shall be entitled to the broader insurance coverage and/or higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Santa Cruz.
Coverage will be at least as broad as:
• COMMERCIAL GENERAL LIABILITY (CGL): $1,000,000 PER OCCURRENCE; $2,000,000 AGGREGATE Proof of coverage for $1 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. • PROFESSIONAL LIABILITY (ERRORS AND OMISSIONS): $2,000,000 PER OCCURRENCE OR CLAIM, $2,000,000 AGGREGATE.
Consultant will maintain insurance appropriate to Consultant’s profession; with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after date of completion of the services under this Agreement. If coverage is canceled or non-renewed and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date or start of work date, Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of the contract of work.
• AUTOMOBILE LIABILITY:
Proof of coverage for $1,000,000 provided on ISO Form Number CA 00 01 covering any auto (Code 1), or if Consultant has no owned autos, hired, (Code 8) and non-owned autos (Code 9), per accident for bodily injury and property damage.
33.24 City of Santa Cruz Professional Services Agreement for Engineering Services During Construction Beltz Well 8 Upgrades for Aquifer Storage and Recovery Project November 2025 Page 18
• WORKERS’ COMPENSATION AS REQUIRED BY THE STATE OF CALIFORNIA, WITH STATUTORY LIMITS, AND EMPLOYER’S LIABILITY INSURANCE: $1,000,000 per accident for bodily injury or disease.
The Worker’s Compensation policy must be endorsed with a waiver of subrogation in favor of the City for all work performed by the Consultant and its employees. (Not required if Consultant provides written verification it has no employees) - If Consultant has no employees, Consultant shall complete and sign a Workers’ Compensation Exemption Declaration and Release of Liability.
C. OTHER INSURANCE PROVISIONS
The insurance policies are to comply with the following provisions:
• ADDITIONAL INSURED STATUS
The City, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds on the CGL with respect to liability arising out of work or operations performed by or on behalf of Consultant including materials, parts, or equipment furnished in connection with such work or operations, products and completed operations. General liability coverage will be provided in the form of an endorsement to Consultant’s insurance at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 (if a later edition is used).
o PRIMARY COVERAGE
For any claims related to this Agreement, Consultant’s and all subcontractor’s insurance coverage will be primary and non-contributory as respects the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents, or volunteers will be excess of Consultant’s and all subcontractor’s insurance and will not contribute with it.
• NOTICE OF CANCELLATION
Each insurance policy required above shall state that the coverage shall not be canceled, except with notice to the City.
• WAIVER OF SUBROGATION
Consultant hereby grants to the City a waiver of any right to subrogation, except as otherwise not applicable, which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss, including attorney’s fees under such insurance. Consultant agrees to obtain any endorsement that may be necessary to effectuate this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. • EXCESS LIABILITY/UMBRELLA INSURANCE POLICIES
Consultant may use excess liability/umbrella policies to meet the required liability limits on the condition that they provide all of the insurance coverages required herein, including, but not limited to, primary and non-contributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements. The excess liability/umbrella insurance policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying CGL insurance. No insurance policies maintained by the additional insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Consultant’s primary and excess liability policies are exhausted.
33.25 City of Santa Cruz Professional Services Agreement for Engineering Services During Construction Beltz Well 8 Upgrades for Aquifer Storage and Recovery Project November 2025 Page 19
• DURATION OF COVERAGE
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 5 years for Completed Operations liability coverage. Such Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. • SELF-INSURED RETENTIONS (SIR)
Self-insured retentions must be declared to and approved by the City. City may require Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related expenses.
The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.
• ACCEPTABILITY OF INSURERS
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A: VII, unless otherwise acceptable to the City.
• CLAIMS MADE POLICIES
If any of the required policies provide coverage on a claims-made basis:
1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.
2. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work. • VERIFICATION OF COVERAGE
Consultant will furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy (and CPL, automobile and any Excess Liability/Umbrella policies, as applicable) listing all policy endorsements to be approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning will not waive the Consultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
D. SUBCONTRACTORS
Consultant shall include their subcontractor(s) as additional insured(s) under the policies or shall furnish separate certificates and endorsements for each contractor and subcontractor. Consultant shall require and verify that all contractors and subcontractors maintain insurance meeting all the requirements stated herein, and Consultant shall ensure that City, its officers, officials, employees, agents, and volunteers are named as additional insureds on insurance required from its contractor(s) and subcontractor(s).
E. SPECIAL RISKS/CIRCUMSTANCES
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances and provide notice to Consultant.
33.26 City of Santa Cruz Professional Services Agreement for Engineering Services During Construction Beltz Well 8 Upgrades for Aquifer Storage and Recovery Project November 2025 Page 20
EXHIBIT D
Supplementary Conditions
33.27 Project
Manager
Project
Engineer
Electrical
Engineer
Instrument.
Engineer
Structural
Engineer
Staff
Support
Senior
CAD
Technician
CAD
Technician
Doc.
Process.
Task Task Description Service Delivery Lead Senior Professional Service Delivery Lead Service Delivery Lead Senior Professional Staff Professional BIM Designer 3 Designer Document Processor II 1 Engineering Services During Construction
1.1 ESDC Project Management 60 - - - - - - - - 60 $ 21,540 960$ $ - $ 22,500
1.2 Attend Pre-Construction Conferences 12 12 - - - - - - - 24 $ 7,692 384$ $ 440 $ 8,516
1.3 Attend Progress Meetings 88 88 - - - - - - - 176 $ 56,408 2,816$ $ 1,620 $ 60,844
1.4 Respond to RFIs 16 32 16 16 8 48 - - - 136 $ 39,360 2,176$ $ - $ 41,536
1.5 Shop Drawing Submittal Review 40 120 40 40 20 160 - - - 420 $ 118,720 6,720$ $ - $ 125,440
1.6 Testing, Commissioning, Startup, and Training Assistance 12 40 - - - - - - - 52 $ 15,588 832$ $ 420 $ 16,840
1.7 AIS Compliance Coordination 8 - - - - 32 - - - 40 $ 10,104 640$ $ 220 $ 10,964
1.8 Structural Observation - - - - 16 - - - - 16 $ 4,512 256$ $ 420 $ 5,188
1.9 Prepare Operations Manual 4 80 - - - - - - 8 92 $ 25,372 1,472$ $ - $ 26,844
1.10 Attend Final Site Walk and Prepare Record Drawings 4 - - - 16 16 40 128 - 204 $ 41,796 3,264$ $ 220 $ 45,280 TASK 10 TOTAL 244 372 56 56 60 256 40 128 8 1,220 341,092 $ 19,520$ $ 3,340 $ 363,952 Total (Base) 244 372 56 56 60 256 40 128 8 1,220 341,092 $ 19,520$ $ 3,340 $ 363,952
1.11 OPTIONAL: Change Order Review 8 16 4 4 4 - - - - 36 $ 11,384 576$ $ - $ 11,960 Total (Base + Optional) 252 388 60 60 64 256 40 128 8 1,256 352,476 $ 20,096$ $ 3,340 $ 375,912 Notes:(1) Rates are based on Carollo Engineers, Inc., Fee Schedule as of Jan 1, 2025 for California. Rates will be adjusted to standard fee schedules annually.(2) Other direct expenses include mileage traveling to/from meetings at IRS Federal Rate, other travel expenses, and reproduction expenses.
Expenses
(2)
Labor
Cost
Total
Hours
CITY OF SANTA CRUZ
BELTZ 8 UPGRADES FOR AQUIFER STORAGE AND RECOVERY PROJECT
ENGINEERING SERVICES DURING CONSTRUCTION FEE PROPOSAL
Carollo Engineers, Inc. (1)
PROJECT
PECE TOTAL
(2)
pw:\\IO-PW-INT.carollo.local:Carollo_200000\Documents\CA\Santa Cruz\202431-100000\01 Project Management\02 Contract\10 Prime Agreement\ESDC_202509 Beltz Well 8_Fee.xlsx 10/18/2025 Exhibit B
33.28 City of Santa Cruz Professional Services Agreement for Engineering Services During Construction Beltz Well 8 Upgrades for Aquifer Storage and Recovery Project November 2025 Page 21
Exhibit D
Supplementary Provisions
1. Debarment And Suspension per Federal Executive Order 12549, 51 Fr 6370, February 21, 1986 Consultant certifies that it will not knowingly enter into a contract with anyone who is ineligible under the 40 CFR Part 32 to participate in the Project. Suspension and debarment information can be accessed at http://www.sam.gov. Consultant represents and warrants that it has or will include a term or conditions requiring compliance with this provision in all of its subcontracts under this Agreement.
2. Debarment And Suspension per CA State Water Resources Control Board A. Contractor must not allow subcontracting with excluded parties. For any work related to this Agreement, Contractor must not contract with any individual or organization on the State Water Board’s List of Disqualified Businesses and Persons that is identified as debarred or suspended or otherwise excluded from or ineligible for participation in any work overseen, directed, funded, or administered by the State Water Board program. The State Water Board’s List of Disqualified Businesses and Persons is located at http://www.waterboards.ca.gov/water_issues/programs/enforcement/fwa/dbp.shtml.
B. The contract is a covered transaction for purposes of 2 CFR Part 180 and 2 CFR Part 3000. As such, the Contractor is required to verify that none of the Contractors, its principals (defined at 2 CFR § 180.995), or its affiliates (defined at 2 CFR § 180.905) are excluded (defined at 2 CFR § 180.940) or disqualified (defined at 2 CFR § 180.935).
C. The Contractor must comply with 2 CFR Part 180, Subpart C and 2 CFR Part 3000, Subpart C and must include a requirement to comply with these regulations in any subcontract.
D. If it is later determined that the Contractor did not comply with 2 CFR Part 180, Subpart C and 2 CFR Part 3000, Subpart C, in addition to remedies available to the City, the Federal Government may pursue available remedies, including, but not limited to, suspension and/or debarment.
E. The bidder or proposer agrees to comply with the requirements of 2 CFR Part 180, Subpart C and 2 CFR Part 3000, Subpart C while this offer is valid and throughout the period of any contract that may arise from this offer. The bidder or proposer further agrees to include a provision requiring such compliance in its subcontracts.
F. Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion – Lower Tier Covered Transactions
1. The Contractor certifies, by submission of this bid, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared negligible, or voluntarily excluded from participation in this transaction by any federal department or agency.
2. Where the Contractor is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to the bid.
3. The Contractor also certifies that it and its principals:
a. Have not within a three-year period preceding this bid been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state or local) transaction or contract under a public transaction; violation of federal or state anti-trust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; b. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal, state or local) with commission of any of the offenses enumerated in paragraph 1.07.E.3.a of this certification; and
33.29 City of Santa Cruz Professional Services Agreement for Engineering Services During Construction Beltz Well 8 Upgrades for Aquifer Storage and Recovery Project November 2025 Page 22
c. Have not within a three-year period preceding this bid had one or more public transactions (federal, state or local) terminated for cause or default. Where the Contractor is unable to certify to any of the above, such owner shall attach an explanation to the bid;
d. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the federal government, the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment;
e. The Contractor shall incorporate the foregoing requirements in all subcontracts.
3. Equal Employment Opportunity
A. The Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin, ancestry, religious creed, sexual orientation, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital status, denial of family care leave, or genetic information, gender, gender identity, gender expression, or military and veteran status . The Contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to the following: Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause.
B. The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive considerations for employment without regard to race, color, religion, sex, or national origin.
C. The Contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers’ representatives of the Contractor’s commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.
D. The Contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.
E. Contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. F. In the event of the Contractor’s noncompliance with the nondiscrimination clauses of the contract or with any of the said rules, regulations, or orders, the contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further government contracts or Federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions as may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law.
G. Contractor will include the portion of the sentence immediately preceding Paragraph (1) and the provisions of Paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or Contractor. The Contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions, including sanctions for noncompliance provided; however, that in the event a Contractor becomes involved in, or is threatened with, litigation with a subcontractor or
33.30 City of Santa Cruz Professional Services Agreement for Engineering Services During Construction Beltz Well 8 Upgrades for Aquifer Storage and Recovery Project November 2025 Page 23
Contractor as a result of such direction by the administering agency the Contractor may request the United States to enter into such litigation to protect the interests of the United States.
H. Contractor, and its subcontractors must comply with the provisions of the Fair Employment and Housing Act and the applicable regulations promulgated thereunder. (Gov. Code, §12990, subds. (a)-(f) et seq.;Cal.
Code Regs., tit. 2, § 7285 et seq.) Such regulations are incorporated into this Agreement by reference and made a part hereof as if set forth in full.
I. Contractor, and its subcontractors must comply with all applicable federal civil rights regulations, including statutory and national policy requirements. (2 CFR § 200.300). This includes, to the greatest extent practicable and to the extent permitted by law, the requirement to respect and protect the freedom of persons and organizations to engage in political and religious speech. (Executive Order 13798).
4. Consultant Cap
Contracts and subcontracts with firms for services that are awarded using the procurement requirements in Subpart D of 2 CFR Part 200 are not affected by this limitation unless the terms of the contract provide the City with responsibility for the selection, direction and control of the individuals who will be providing services under the contract at an hourly or daily rate of compensation. See 2 CFR 1500.10.
The salary rate (excluding overhead) paid to individual consultants retained by Consultant as a subcontractor shall be limited to the maximum daily rate for a Level IV of the Executive Schedule, available at:
https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/, to be adjusted annually. This limit applies to consultation services of designated individuals with specialized skills who are paid at a daily or hourly rate.
This rate does not include transportation and subsistence costs for travel performed (the recipient will pay these in accordance with their normal travel reimbursement practices).
Information on how to calculate the maximum daily rate and the daily pay limitation is available at the Office Of Personnel Management’s Fact Sheet: How to Compute Rates of Pay and Sheet: Expert and Consultant Pay. Specifically, to determine the maximum daily rate, follow these steps:
1. Divide the Level IV salary by 2087 to determine the hourly rate. Rates must be rounded to the nearest cent, counting one-half cent and over as the next higher cent (e.g., round $18.845 to $18.85).
2. Multiply the hourly rate by 8 hours. The product is the maximum daily rate.
5. Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment Consultant is prohibited to procure or obtain; extend or renew a contract to procure or obtain; or enter into a contract (or extend or renew a contract) to procure or obtain equipment, services, or systems that use covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. As described in Public Law 115-232, section 889, covered telecommunications equipment is telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities). Consultant is also prohibited to purchase:
A. For the purpose of public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities).
B. Telecommunications or video surveillance services provided by such entities or using such equipment.
C. Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country.
Certain prohibited equipment, systems, or services, including equipment, systems, or services produced or provided by entities identified in section 889, are recorded in the System for Award Management exclusion list.
6. Lobbying Restrictions
33.31 City of Santa Cruz Professional Services Agreement for Engineering Services During Construction Beltz Well 8 Upgrades for Aquifer Storage and Recovery Project November 2025 Page 24
This Agreement is subject to the anti-lobbying provision as stipulated in the Appendix II to Part 200—Contract Provisions for Non-Federal Entity Contracts Under Federal Awards.
A. By executing this Agreement, the Consultant certifies, to the best of its knowledge and belief, that:
1. No Federal appropriated funds have been or will be paid, by or on behalf of the recipient, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, or any employee of a Member of Congress in connection with this Federal grant or cooperative agreement, the Consultant shall complete and submit the linked Standard Form -- LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions.
3. The Consultant shall include the language of this certification in any subcontracts exceeding $100,000.
B. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each failure.
7. Whistleblower Protections
This Agreement is subject is to whistleblower protections, including the protections established at 41 U.S.C. 4712 providing that an employee of the recipient or a subrecipient may not be discharged, demoted, or otherwise discriminated against as a reprisal for disclosing to a covered person or body information that the employee reasonably believes is evidence of gross mismanagement of a Federal grant or subaward, a gross waste of Federal funds, an abuse of authority relating to a Federal grant or subaward, a substantial and specific danger to public health or safety, or a violation of law, rule, or regulation related to a Federal grant or subaward. These covered persons or bodies include:
1. A Member of Congress or a representative of a committee of Congress.
2. An Inspector General.
3. The Government Accountability Office.
4. A Federal employee responsible for contract or grant oversight or management at the relevant agency.
5. An authorized official of the Department of Justice or other law enforcement agency.
6. A court or grand jury.
7. A management official or other employee of the contractor, subcontractor, or grantee who has the responsibility to investigate, discover, or address misconduct.
Consistent with 41 U.S.C. 4712(d), the recipient and subrecipients shall inform their employees in writing, in the predominant language of the workforce or organization, of employee whistleblower rights and protections under 41 U.S.C. 4712. Additional information about whistleblower protections, including protections for such employees may be found at the EPA Office of Inspector General’s Whistleblower Protection page.
8. Access to Records
In accordance with 2 CFR 200.337, EPA and the EPA Office of Inspector General (OIG) have the right to access any documents, papers, or other records, including electronic records, of the Consultant which are pertinent to this Agreement in order to make audits, examinations, excerpts, and transcripts. This right of access also includes timely and reasonable access to the recipient and subrecipient’s personnel for the purpose of interview and discussion related to such documents. This right of access shall continue as long as the records are retained.
33.32 City of Santa Cruz Professional Services Agreement for Engineering Services During Construction Beltz Well 8 Upgrades for Aquifer Storage and Recovery Project November 2025 Page 25
9. Funding Agency Indemnification
To the extent permitted by law, the Consultant shall indemnify, defend, and hold harmless the State Water Resources Control Board and any trustee, and their officers, employees, and agents for the Bonds, if any (collectively, "Indemnified Persons"), against any loss or liability arising out of any claim or action brought against any Indemnified Persons from and against any and all losses, claims, damages, liabilities, or expenses, of every conceivable kind, character, and nature whatsoever arising out of, resulting from, or in any way connected with: (1) the Work on the Project; (2) the carrying out of any of the transactions contemplated by the Contract Documents; (3) any violation of any applicable law, rule or regulation, any environmental law (including, without limitation, the Federal Comprehensive Environmental Response, Compensation and Liability Act, the Resource Conservation and Recovery Act, the California Hazardous Substance Account Act, the Federal Water Pollution Control Act, the Clean Air Act, the Toxic Substances Control Act, the Occupational Safety and Health Act, the Safe Drinking Water Act, the California Hazardous Waste Control Law, and California Water Code Section 13304, and any successors to said laws), rule or regulation or the release of any toxic substance on or near the System; or (4) any untrue statement or alleged untrue statement of any material fact or omission or alleged omission to state a material fact necessary to make the statements required to be stated therein, in light of the circumstances under which they were made, not misleading with respect to any information provided by the Consultant for use in any disclosure document utilized in connection with any of the transactions contemplated by the Agreement, except those arising from the gross negligence or willful misconduct of the Indemnified Persons.
The Consultant shall also provide for the defense and indemnification of the Indemnified Parties in any contractual provision extending indemnity to the City, and shall cause the Indemnified Parties to be included within the scope of any provision for the indemnification and defense of the City in any contract or subcontract.
To the fullest extent permitted by law, the Consultant agrees to pay and discharge any judgment or award entered or made against Indemnified Persons with respect to any such claim or action, and any settlement, compromise or other voluntary resolution. The provisions of this section shall survive the term of the Agreement.
10. Prohibition Of Trafficking, Commercial Sex Acts, Forced Labor Consultant and its subConsultants and their employees warrants that it will not engage in severe forms of trafficking in persons, procure a commercial sex act during the term of this Agreement, or use forced labor in the performance of this Agreement.
11. Scientific Integrity Policy
Consultants and its subconsultants must comply with, EPA’s Scientific Integrity Policy, available at https://www.epa.gov/osa/policy-epa-scientificintegrity, when conducting, supervising, and communicating science and when using or applying the results of science. For purposes of this condition scientific activities include, but are not limited to, computer modelling, economic analysis, field sampling, laboratory experimentation, demonstrating new technology, statistical analysis, and writing a review article on a scientific issue.
33.33 City of Santa Cruz First Amendment to Professional Services Agreement for On-Call Construction Management Services for the Beltz 8 Upgrades for Aquifer Storage and Recovery Project November 2025 Page 1
FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH MKN CPM, LLC. for
ON-CALL CONSTRUCTION MANAGEMENT SERVICES FOR THE BELTZ 8 UPGRADES FOR
AQUIFER STORAGE AND RECOVERY PROJECT
THIS FIRST AMENDMENT (“First Amendment”), effective as of ___________, 20__ (“effective date”) to the PROFESSIONAL SERVICES AGREEMENT dated September 12, 2025, is made by and between the CITY OF SANTA CRUZ (“City”) and MKN CPM, LLC. (“Consultant”). City and Consultant may be referred to individually as a “Party” and collectively, as the “Parties.”
RECITALS
WHEREAS, City and Consultant have previously entered into that certain Professional Services Agreement (“Agreement”) dated September 12, 2025, incorporated herein by this reference; and WHEREAS, on November 18, 2025, the City Council authorized the Water Director to execute Agreement Amendments within the approved project budget, and WHEREAS, City and Consultant desire to enter into this First Amendment to the Agreement to Incorporate a Scope of Work, Fee Schedule and Works Schedule for construction management services for the Beltz 8 Upgrades for ASR Project as specified herein.
AGREEMENT
NOW, THEREFORE, it is agreed between the Parties to incorporate the above Recitals hereto, and that the Parties agree to the following:
1. Section 1: Scope of Work of the Agreement is hereby amended to incorporate a Scope of Work in Exhibit A of the Agreement as specified on pages 1 through 7 of the Consultant’s proposal dated October 23, 2025, which is attached hereto as Exhibit A-1 and incorporated herein.
2. Section 4 of the Agreement is hereby amended to incorporate a budget amount and Fee Schedule in Exhibit B of the Agreement as specified on pages 7 through 11 and 15 of the Consultant’s proposal dated October 23, 2025 which is attached hereto as Exhibit A-1 and incorporated herein. The new not to exceed budget amount is in the amount of $266,801.00.
This new amount is within the City Council approved project budget.
3. Section 7 of the Agreement is hereby amended to incorporate a Work Schedule in Exhibit C of the Agreement with the amended Work Schedule, as specified on page 13 of the Consultant’s proposal dated October 23, 2025, which is attached hereto as Exhibit A-1 and incorporated herein.
33.34 City of Santa Cruz First Amendment to Professional Services Agreement for On-Call Construction Management Services for the Beltz 8 Upgrades for Aquifer Storage and Recovery Project November 2025 Page 2
Except as amended by this First Amendment, all other applicable terms and conditions of the original Agreement and attachments, and other prior amendment(s), shall remain in full force and effect. The terms of this First Amendment shall control if any conflict exists.
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.
The unenforceability, invalidity or illegality of any provision(s) of this First Amendment shall not render the other provisions unenforceable, invalid or illegal.
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.
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]
33.35 City of Santa Cruz First Amendment to Professional Services Agreement for On-Call Construction Management Services for the Beltz 8 Upgrades for Aquifer Storage and Recovery Project November 2025 Page 3
IN WITNESS WHEREOF, the City and the Consultant have executed this First Amendment as of the Effective Date.
Technical Review By:
By: _____________________________ Date: ___________
Isidro Rivera, P.E., Deputy Water Director/Engineering Manager CONSULTANT: MKN CPM, LLC.
By: _____________________________ Date: __________________ Printed: _________________________ Title: _________________________ By: _____________________________ Date: __________________ Printed: _________________________ Title: __________________ Signature Requirements for Business Entity:
LLC- For a member-managed LLC, signature of any member. For a manager-managed LLC, signature of the manager. If the LLC has corporate officer designations, follow Corporation signature requirement.
CITY OF SANTA CRUZ
By: _____________________________ Date: __________________ Matt Huffaker, City Manager
CITY OF SANTA CRUZ WATER DEPARTMENT
By: _____________________________ Date: __________________ Heidi Luckenbach, P.E., Water Director
Approved As To Form:
By: _____________________________ Date: __________________ Office of the City Attorney
33.36 City of Santa Cruz First Amendment to Professional Services Agreement for On-Call Construction Management Services for the Beltz 8 Upgrades for Aquifer Storage and Recovery Project November 2025 Page 4
EXHIBIT A-1 Follows
33.37 100 Century Center Ct., Ste. 670
San Jose, CA 95112
925-330-0343 PHONE
Leah Van Der Maaten
Associate Professional Engineer
City of Santa Cruz – Water Department
212 Locust Street, Ste. C
Santa Cruz, CA 95060
[Delivered Electronically]
Re: Revised Construction Management (CM) Scope of Work and Fee Estimate for Beltz Well 8 ASR Facility Upgrade Project
Dear Leah,
As requested, we are providing a revised MKN CM Scope of Work, Estimated Level of Effort, and Fee Estimate for the referenced Project based on feedback from the City. The attached revised fee reflects an estimated level of effort that is based on the schedule provided by the Designer and clarified by the City. It reflects an approximate five-month administrative period for PreConstruction activities from Admin NTP to Construction NTP, and an assumed 10-month construction period of Construction Phase support with one month of Post-Construction closeout activities. Please note that actual construction timelines may vary with a corresponding change in our level of effort, duration of support and fee.
MKN Scope of Work
The following Scope of Work is organized into Task Groups consistent with typical phases of construction: Pre-Construction, Construction, and Post-Construction. MKN is aware that the referenced Project is subject to WIFIA requirements and MKN’s services will be subject to and shall comply with any requirements related to reimbursements including but not limited to travel reimbursement during any phase of construction.
Scope of Work
Task Group 1 – Pre-Construction Services
MKN to provide the following Pre-Construction Services:
Task 1.1 – Contractor Outreach
MKN to reach out to potential bidders for generating interest from a network of General Contractors who have previously performed well on similar projects. Timing for initiating this task may and can occur prior to contract execution.
Exhibit A-1
33.38 City of Santa Cruz, Beltz Well 8 ASR Facility Upgrade Project | 2 Task 1.2 – Bid Period Support
MKN to assist the City and Designer as needed for addenda development and pre-bid meeting support. Bid Period support shall include as-needed in-person meetings with a minimum of one on-site meeting as requested on December 10th, 2025.
Task 1.3 – NTP Assistance
Post-award and contract execution with General Contractor (GC), MKN will assist the City in issuing NTP(s) as follows:
Admin Notice to Proceed - MKN will assist the City in coordinating with the GC for Pre-Construction Activities related to NTP issuance for Administrative Phase.
Construction Phase NTP - No later than 150 days after Admin NTP, MKN will assist the City in coordinating with the GC in issuing the NTP for the Construction Phase.
Task 1.4 – Pre-Construction Conference(s)
MKN will prepare the Pre-Construction Conference agendas, facilitating the conferences after Notice of Award issuance to the Contractor and prior to NTP(s). Agendas will be submitted one week in advance of Pre-Construction meetings to the Project Team for review and comments prior to finalization and distribution. MKN will prepare and distribute the Record of Discussion.
Task 1.5 – Administrative NTP Period Support
MKN will provide Project and Contract Administration support as outlined in Task 2.1 and Submittal/RFI Processing in Task 2.6 below with a primary focus on timely processing of long lead procurement item submittals.
Task 1.6 – Pre-Construction Photos/Site Video
Prior to mobilization of the GC to the Beltz Well 8 ASR Facility site, MKN will coordinate mutual day(s) for pre-construction photos and site video of pre-construction site conditions. Photos and videos of existing well site conditions will be performed post-Admin NTP, but prior to potholing and/or any construction related activities by the Contractor that physically impact the Beltz Well 8 ASR Facility.
Task Group 2 – Construction-Phase Services
MKN to provide the following CM and Inspection Tasks during the Construction Phase.
Task 2.1 – Project and Contract Administration
MKN will be managing and coordinating with the Engineer to provide contract administration and Project Management services including but not limited to the following MKN will receive all correspondence from the Contractor and will address all inquiries from the Contractor and all construction-related correspondence.
33.39 City of Santa Cruz, Beltz Well 8 ASR Facility Upgrade Project | 3 Project Coordination: MKN will act as the project coordinator and the single point of contact for all communications with the Contractor. MKN will coordinate construction-related activities with the City, Operations, the Contractor, Engineer Environmental Lead and Engineer.
Document Tracking System: MKN will implement and maintain the City’s Procore platform for tracking construction project correspondence and project-related documents, processing submittals and RFIs, and coordinating their review and responses with the City and Engineer of Record (EOR). The City will be responsible for establishing and providing the initial project Procore site and managing the Procore contract directly.
Contract Compliance: MKN will verify the Contractor’s conformance to contract documents, City requirements, state laws, and applicable industry standards. Reporting: MKN will prepare and submit monthly progress reports to include an overview of work accomplished for the month including photos, an updated schedule of work, costs to date, change order status, explanations for deviations from the baseline schedule, and tracking of RFI/Submittal Engineer responses or reviews that are overdue. MKN will also provide an analysis of upcoming risks/problems and corrective actions.
Task 2.2 – Progress and Coordination Meetings
MKN will manage progress and as-needed field coordination meetings – including preparation of Agendas and Records of Discussion. At a minimum the frequency and type of meetings will be as follows:
Pre-Construction Admin Phase – Weekly virtual meetings initially for efficient management of long lead and time sensitive critical submittals will be led my MKN.
Transition to bi-weekly virtual meetings will be determined by the Team and led by MKN.
Construction Phase – Weekly hybrid meetings – in-person for primary participants and virtual for others as-needed.
Task 2.3 – As-Needed WIFIA Reporting Support
MKN and their subconsultants will assist the City in providing and preparing any required WIFIA funding status reports required for reimbursement.
Task 2.4 – Labor Compliance
MKN to coordinate with the City’s labor compliance firm for any reporting required for MKN DIR classified resources utilized for support of the Project.
Task 2.5 – Field Observation and Specialty Inspection Activities MKN will provide Project Documentation of field activities including the following:
MKN will maintain photographs for status monitoring of the project.
33.40 City of Santa Cruz, Beltz Well 8 ASR Facility Upgrade Project | 4 For days on-site MKN will provide field observation services to monitor compliance with the Contract Documents.
For days on-site, MKN will prepare a daily field observation report documenting all field activities, field crews, Contractor equipment, and field problems. Inspection reports will be available to the City via Procore as a Daily Log report in real time, 24/7.
Notice of Non-Conformance: MKN will inform the Contractor of acceptability or deficiencies in work and what mitigating efforts are required for contract compliance. Materials Testing and Special Inspections: MKN will contract and coordinate with a separate subconsultant to furnish material testing and specialty inspection as needed for Quality Assurance verification in accordance with contract requirements specified in 00GS01 and Section 01 45 33 including but not limited to the following:
o Concrete Compressive Strength Testing
o Structural Reinforcing and Concrete Anchoring Inspection o Soils Compaction and Material Testing
Specialty Inspection: MKN will contract with a separate subconsultant to provide specialty inspection as needed for Quality Assurance and as generally summarized below:
o Protective Coatings
o Geotechnical and Soil Compaction Activities
o Welding
Quality Assurance Reports shall be stored in Procore and include:
o Backfill Materials, Density Curves, and Compaction Testing o Concrete Sampling and Compressive Strength Test Results Quality Assurance Surveying (Optional): MKN will contract with a separate subconsultant to provide surveying services as needed for quality assurance. Review of materials/equipment delivered to site for compliance with applicable approved submittals and contract documents.
Permit Compliance: On-site review of the Contractor’s compliance with regulatory permits, storm water regulations, and permits in accordance with Specification Section 01 35 43 and Specification Section 01 57 13. MKN to coordinate with the City Engineer and City Environmental Lead. Coordinate with Contractor to give 5 days notice in advance of dewatering and discharge activities on-site. Upload completed field discharge form with water quality and volume data daily into Procore.
Reporting of non-compliance with regulatory permits, upload photos within 1 day.
Alert Engineer Environmental Lead immediately of any non-compliance occurrences.
33.41 City of Santa Cruz, Beltz Well 8 ASR Facility Upgrade Project | 5 MKN will also perform periodic noise monitoring including decibel readings and reporting at the site to confirm compliance with applicable permit constraints. Safety: Review of the Contractor’s compliance with health and safety standards and regulations, along with reporting of non-compliance.
MKN will monitor record drawings of as-built conditions maintained by the Contractor monthly.
Task 2.6 – Submittal/RFI Processing
MKN will establish, implement, and coordinate submittal and RFI processing utilizing Procore. MKN will route all submittals and RFIs to the City and Engineer of Record (EOR) for review. MKN will maintain, log, and track submittals and RFIs, producing logs for weekly Progress Meetings. In addition, MKN will establish internal weekly check-in meetings with the City and EOR to monitor the City’s and/or EOR’s review and response timeframes for submittals and RFIs respectively to ensure they are staying within contractual review times. Internal RFI and Submittal Logs will be color coded for RFIs or submittals reviews that are approaching due dates or are overdue, and targeted discussions to finalize reviews will be coordinated by MKN to proactively manage this process in a timely manner.
Task 2.7 – Cost Management
MKN will manage all cost-related items for the Project, including the following:
Field Changes/Design Changes – If there are any unforeseen or site conditions requiring modifications to the design, MKN will assess, document, recommend a change via a field order or RFQ and with City/EOR approval will issue either of the following:
o Field Orders – Field Orders that allow work to proceed on a time and material basis with a Not To Exceed amount estimated by MKN and (approved by the City) will track labor, material and equipment utilizing Daily Extra Work Reports (DEWRs) that will be reviewed by the CM team for merit and corresponding costs vetted for accuracy.
o Request for Quotes (RFQs) - MKN will issue RFQs for forward priced lump sum changes. MKN will perform independent cost estimates and review RFQ costs provided by the Contractor, negotiating with the Contractor until a mutually agreeable cost is reached acceptable to both the City and Contractor for incorporation into a Change Order.
Change Order Processing – Costs from field orders, RFQs, Contractor generated potential change orders (PCOs) that MKN/City agree are extra work, and/or EOR generated design changes will be identified, reviewed and managed by MKN. MKN will work with the City to issue change orders in conformance with their standards and Contract Document requirements.
Progress Payment Processing – MKN will review the Schedule of Values for use in monthly Progress payments from the Contractor prior to the first Progress Payment.
33.42 City of Santa Cruz, Beltz Well 8 ASR Facility Upgrade Project | 6 MKN as the CM will be the primary reviewer of progress payments and will review for appropriate payment for each line item to accurately reflect percentage complete on a monthly basis. MKN will generate in a format consistent with City standards a cover sheet for each Progress Payment clearly summarizing Previous/Current and Paid to Date, Percentage Complete and Time Expended for each monthly pay period and any requisite signature fields for proper routing and processing for payments by the City.
MKN will maintain a running log of all potential extra costs to the Project, for the City’s knowledge and understanding at every stage in the Project.
Task 2.8 – Scheduling
MKN will review the Contractor’s Preliminary 60 day schedule, Baseline Schedule and subsequent monthly updates, providing written comments as to accuracy, completeness, and overall adherence to the Project timelines.
Task 2.9 – System Outage/Tie-Ins and Startup Coordination MKN will coordinate all system outage requests or Tie-ins as needed for mechanical, electrical, or control integration of new installations at the existing facilities with the Contractor and the City. Contractor facility outage plan submittals will include system outage requests (SORs) that will be developed by the Contractor and reviewed by MKN and the City well in advance of the work. MKN will ensure the Contractor is aware of and incorporates all work restriction constraints set forth in Specification Section 01 14 00.
SORs will be submitted per City’s standard format. MKN will work with the Contractor to ensure it is provided at least 60 days before the planned outage to allow adequate time for MKN to work with the Project Team to review the SOR and provide an approved SOR within four weeks of submission and a minimum of 14 days prior to the planned outage.
After approved SOR, MKN will coordinate a pre-SOR site meeting 48 hours prior to the planned work with the Contractor and the City to clarify expectations and confirm process protocol.
Similarly, MKN’s startup coordination efforts will include planning meetings, coordination with vendor(s), and City operations and confirmation that all required documentation has been provided by the Contractor. In addition, MKN will supplement EOR reviews of draft O&M manuals for assisting the Contractor in developing a comprehensive and thorough startup and commissioning plan and appropriate schedule for startup and commissioning activities including functional testing, vendor verification and system integration.
Task 2.10 – Punchlist and Final Inspection
MKN will conduct the final inspections to determine if facilities are complete and in compliance with contract documents. The City will provide input on final inspection and punchlist items. MKN will prepare and issue a corrective items list including a list of outstanding deficiencies and the subsequent corrective actions performed.
MKN will prepare a substantial completion certificate once corrective actions are completed and the Project is deemed acceptable to the satisfaction of the City.
33.43 City of Santa Cruz, Beltz Well 8 ASR Facility Upgrade Project | 7 Task Group 3 – Post-Construction Services
MKN to provide and complete Project closeout tasks as follows within a month of Final Completion for the Project:
Task 3.1 – Project Closeout
MKN to perform project closeout activities including O&M Manual review and collection.
MKN will coordinate final submittal of record drawings. MKN will verify that the Contractor has made all payments to subcontractors, vendors, and material suppliers and that all required releases, warranty release, lien release, and release of claims have been filed and submitted by the Contractor. MKN will furnish all project documents to the City via electronic files. MKN will prepare and submit a final construction report outlining all work complete, change orders issued, budget spent and time of construction, and a summary of major issue items.
Task 3.2 – Warranty Coordination
MKN will coordinate warranty work and maintain a warranty file determining when major equipment items’ warranty period starts and expires for Operations staff use.
Fee Estimate
The attached revised estimated Level of Effort and CM Fee Estimate dated October 16, 2025 reflects the anticipated fee for the Beltz Well 8 ASR Facility Upgrade Project.
The Level of Effort Estimate is provided to reflect the anticipated schedule as provided by the Engineer and clarified by the City. MKN will perform our scope of services on a time and material basis with a not-to-exceed amount of $ . (See Exhibits B and C.) Hourly rates for 2025 and 2026 are provided in Exhibit A and 2027 rates reflected in our Fee Estimate (Exhibit C) include a 5% escalation rate.
Note, currently our scope and fee that we have provided are based on the Engineer’s assumed construction schedule. We understand that some scope and fee changes may need to occur after the awarded General Contractor’s construction schedule is confirmed.
33.44 City of Santa Cruz, Beltz Well 8 ASR Facility Upgrade Project | 8 We would like to express our thanks to the City of Santa Cruz for the opportunity to provide CM services on this very important project. Should you have any questions or wish to discuss any of the information presented herein, please do not hesitate to contact me at (925) 330-0343 or by email at [email protected].
Sincerely,
Melanie Carrido, PE
Principal Construction Manager
Enclosures:
1. Exhibit A – 2025 and 2026 Fee Schedule
2. Exhibit B – Level of Effort Estimate
3. Exhibit C – CM Fee Estimate October 16, 2025
33.45 Exhibit A
33.46 CATEGORY POSITION HOURLY RATE
Communications
and
Administrative
Administrative Assistant $113
Strategic Communications Coordinator $126
Strategic Communications Specialist $168
Designers and
Technicians
CAD Technician I $152
CAD Design Technician II $173
Senior Designer $185
Planning
Assistant Planner I $203
Assistant Planner II $218
GIS Specialist $184
Planner I $203
Planner II $218
Senior Planner $246
Engineers
Engineering Technician $123
Assistant Engineer I $165
Assistant Engineer II $184
Project Engineer I $203
Project Engineer II $218
Senior Engineer I $238
Senior Engineer II $251
Senior Engineer III $267
Principal Engineer $289
Project
Management
Project Manager $256
Senior Project Manager $267
Project Director $312
Senior Project Director $329
Construction
Management
Services
Scheduler $179
*** Construction Inspector $200
Assistant Resident Engineer $200
Resident Engineer $212
Construction Manager $231
Principal Construction Manager $272
The foregoing Billing Rate Schedule is effective through December 31, 2025 and will be adjusted each year after at a rate of 2 to 5%.
DIRECT PROJECT EXPENSES
Outside Reproduction Cost + 10%
Subcontracted or Subconsultant Services Cost + 10%
Travel & Subsistence (other than mileage) Cost
Auto Mileage Current IRS Rate
*** 40 hrs per week assumed; part-time rates can be provided upon request Rates also subject to prevailing wage mandatory increases during a calendar year 2025 FEE SCHEDULE
33.47 CATEGORY POSITION HOURLY RATE
Communications
and
Administrative
Administrative Assistant $119
Strategic Communications Coordinator $132
Strategic Communications Specialist $176
Designers and
Technicians
CAD Technician I $160
CAD Design Technician II $182
Senior Designer $194
Planning
Assistant Planner I $173
Assistant Planner II $193
GIS Specialist $193
Planner I $213
Planner II $229
Senior Planner $258
Engineers
Engineering Technician $129
Assistant Engineer I $173
Assistant Engineer II $193
Project Engineer I $213
Project Engineer II $229
Senior Engineer I $250
Senior Engineer II $264
Senior Engineer III $280
Principal Engineer $303
Principal Electrical Engineer $303
Project
Management
Project Manager $269
Senior Project Manager $280
Project Director $328
Senior Project Director $345
Construction
Management
Services
Scheduler $188
*** Construction Inspector $210
Assistant Resident Engineer $210
Resident Engineer $223
Construction Manager $243
Principal Construction Manager $286
The foregoing Billing Rate Schedule is effective through December 31, 2026 and will be adjusted each year after at a rate of 2 to 5%.
DIRECT PROJECT EXPENSES
Outside Reproduction Cost + 10%
Subcontracted or Subconsultant Services Cost + 10%
Travel & Subsistence (other than mileage) Cost
Auto Mileage Current IRS Rate
*** 40 hrs per week assumed; part-time rates can be provided upon request Rates also subject to prevailing wage mandatory increases during a calendar year 2026 FEE SCHEDULE
33.48 Exhibit B
Level of Effort Estimate
33.49 Client
Project: Beltz Well 8 ASR Treatment Facility Upgrade
Estimate: Level of Effort Estimate by Position
October 23, 2025 Revised As-Needed Support
Person Desc. Year
Quarter 2025 2026 2027 Project
10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 31 30 31 31 28 31 30 31 30 31 31 30 31 30 31 31 28 31 30 31 30 31 31 30 31 30 31 22 19 21 21 20 21 22 22 19 20 23 20 21 20 20 21 20 21 22 22 19 22 22 20 22 19 21 176 152 168 168 160 168 176 176 152 160 184 160 168 160 160 168 160 168 176 176 152 176 176 160 176 152 168 Preconstruction Phase 4 4 2 2 48 32 10 10 36 56 8 196 204 Resource Staff Name Firm
Melanie Carrido Princpal CM MKN 4 4 2 2 16 16 2 2 4 8 52 - 52 TBD Asst CM/RE MKN 32 16 8 8 32 40 136 - 136
TBD Inspector MKN 8 8 - 8
- - - -
Construction Phase 60 52 52 44 44 44 52 144 144 144 252 384 636 Resource Staff Name
Melanie Carrido Princpal CM MKN 4 4 4 4 4 4 4 4 4 4 20 16 36 TBD Asst CM/RE MKN 40 40 40 32 32 32 40 80 80 80 184 232 416 TBD Inspector MKN 16 8 8 8 8 8 8 60 60 60 48 136 184
- - - -
- - -
Post Construction Phase 104 248 248
Resource Staff Name
Melanie Carrido Princpal CM MKN 4 - 4 4
TBD Asst CM/RE MKN 60 - 60 60
TBD Inspector MKN 40 - 40 40
- - -
- - - -
Total MKN Hours 8 448 632 1,088
2025 2026 2027
City of Santa Cruz
Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4
Work Hrs/Mo
Month
Qtr 4 Qtr 1 Qtr 2 Qtr 3
Cal Days
Work Days
33.50 Exhibit C
33.51 Client: City of Santa Cruz
Project: Beltz Well 8 ASR Facility Upgrade
Estimate: Fee Estimate
October 23, 2025
Person Year
Hourly RateHourly RateHourly Rate Quarter 2025 2026 2027 Project 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 31 30 31 31 28 31 30 31 30 31 31 30 31 30 31 31 28 31 30 31 30 31 31 30 31 30 31 20 20 21 20 19 23 20 22 21 20 23 21 20 20 21 20 19 23 20 22 21 20 23 20 21 20 20 160 160 168 160 152 184 160 176 168 160 184 168 160 160 168 160 152 184 160 176 168 160 184 160 168 160 160 Pre-Construction Services Firm 1,088 1,088 572 601 11,296 7,936 2,252 2,252 7,864 12,368 - - 2,176 45,141 47,317 Resource Staff Name 2025 2026 2027
Melanie Carrido Princpl CM $272.00 $286.00 $300.30 MKN 1,088 1,088 572 601 4,576 4,576 572 572 1,144 2,288 - - - - - - - - - - - - - - - - 2,176 14,901 - 14,901 TBD Asst RE $200.00 $210.00 $220.50 MKN - 6,720 3,360 1,680 1,680 6,720 8,400 - - - - - - - - - - - - - - - - 28,560 - 28,560 TBD Inspector $200.00 $210.00 $220.50 MKN - 1,680 - - - - - - - - - - - - - - - - 1,680 - 1,680 - - - - - - - - - - - - - - - - -
Construction Phase 2025 2026 2027 12,904 11,224 11,224 9,544 9,544 10,021 11,785 32,071 32,071 30,544 54,440 116,493 170,933 Resource Staff Name
Melanie Carrido Princpl CM $272.00 $286.00 $300.30 MKN - 1,144 1,144 1,144 1,144 1,144 1,201 1,201 1,201 1,201 1,144 - - - - - - - 5,720 5,949 11,669 TBD Asst RE $200.00 $210.00 $220.50 MKN - 8,400 8,400 8,400 6,720 6,720 7,056 8,820 17,640 17,640 16,800 - - - - - - - 38,640 67,956 106,596 TBD Inspector $200.00 $210.00 $220.50 MKN 3,360 1,680 1,680 1,680 1,680 1,764 1,764 13,230 13,230 12,600 - - - - - - - 10,080 42,588 52,668 - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - -
Post Construction Phase 2025 2026 2027 23,251 23,251 23,251 Resource Staff Name
Melanie Carrido Princpl CM $272.00 $286.00 $300.30 MKN - - - - - - - - - - - 1,201 - - - - - - - 1,201 1,201 TBD Asst RE $200.00 $210.00 $220.50 MKN - - - - - - - - - - - 13,230 - - - - - - - 13,230 13,230 TBD Inspector $200.00 $210.00 $220.50 MKN - - - - - - - - - - - 8,820 - - - - - - - 8,820 8,820 - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - -
Total MKN Cost 2,176 99,581 139,744 241,501
Subs Specialty Inspection (PCE) - - - - - - - - - - - - - - - - - - 18,000 18,000 Enviironmental (Biological Coordination) (DDA) 5,000 5,000 -
Subs Subtotal 23,000 23,000
Markup (10%) - - - - - - - - - - - - - - - - - - - - 2,300 2,300 Total MKN + Subs Cost 2,176 99,581 165,044 266,801
2025 2026 2027
Qtr 1 Qtr 2 Qtr 3
Work Hrs/Mo
Qtr 4
Month
Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4
Cal Days
Work Days
33.52 City of Santa Cruz
BUDGET ADJUSTMENT REQUEST
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10/16/2025
Transfer $4,150,000 from project c702002, Brackney Landslide Area Pipeline Risk Reduction, to c702002, Beltz 8 Upgrades for Aquifer Storage and Recovery, for the purpose of funding construction and related services at Beltz Well No. 8. The Brackney Pipeline project will not start construction in FY 2026 as originally planned. 0 711-70-91-7153-57302 c702002-100-2020-0 Brackney Landslide Area Pipeline Risk Reduction -4150000 711-70-91-7153-57302 c702503-100-2020-0 Beltz 8 Upgrades for Aquifer Strg-Recvry 4150000 0 0
Malissa Kaping
2025.10.16
13:38:04 -07'00'
Heidi
Luckenbach
Digitally signed by
Heidi Luckenbach
Date: 2025.10.16
13:56:38 -07'00'
Digitally signed
by Emily Burton
Date: 2025.10.31
'13:41:04 -07'00
Elizabet
h Cabell
Digitally signed by
Elizabeth Cabell
Date: 2025.11.03
09:30:09 -08'00' 33.53
ORDINANCE NO. 2025-22
AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING MUNICIPAL CODE CHAPTER 18.15 - ENERGY CODE, ADOPTING LOCAL AMENDMENTS TO THE CALIFORNIA ENERGY CODE, PART 6 OF THE CALIFORNIA BUILDING
CONSTRUCTION AND FIRE PREVENTION CODE TO REQUIRE ENERGY
CONSERVATION MEASURES FOR CERTAIN HEATING, VENTILATION, AND AIR
CONDITIONER REPLACEMENTS AND INSTALLATIONS IN EXISTING
NONRESIDENTIAL BUILDINGS
WHEREAS, The State of California has a goal to achieve carbon neutrality by 2045; and WHEREAS, The California Air Resources Board (CARB) has introduced zero-emission appliance standards with a phased implementation beginning in 2027 to reduce greenhouse gas emissions and improve air quality, with an expectation that all new space and water heaters sold in California meet zero-emission standards by 2030; and WHEREAS, The City adopted its Climate Action Plan 2030 (CAP 2030) in 2022 with a legal target to reduce emissions 40% from 1990 levels by 2030 and an aspirational target of carbon neutrality by 2035, 10 years earlier than the State target; and WHEREAS, The CAP 2030 contains three measures related to existing building energy use which accounts for 24% of greenhouse gas emissions regulated by CARB, including Measure BE-2, to electrify 31% of existing residential buildings by 2030 and 53% by 2035; Measure BE- 3, to electrify 26% of existing commercial buildings by 2030 and 45% by 2035; and Measure BE- 5 is to increase resiliency through equitable energy efficiency and local solar programs; and
WHEREAS, Public Resources Code Section 25402.1(h)(2) allows local agencies to adopt local amendments that are cost-effective and that require greater energy reduction/conservation than the California Energy Code; and
WHEREAS, the California Energy Codes and Standards Statewide Utility Program, has determined specific modifications to the 2025 State Energy Code for each climate zone that are cost-effective; and that such modifications will result in designs that consume less energy than they would under the 2025 State Energy Code; and
WHEREAS, staff has reviewed the "2025 Statewide Nonresidential Alterations and AC to HP Cost-Effectiveness Study" and associated data, and find them sufficient to illustrate compliance with the requirements set forth under California Administrative Code Chapter 10-106; and
WHEREAS, based on these studies, the City finds the proposed local amendments to the 2025 California Energy Code to be cost-effective and consume less energy than permitted by Title 24, Part 6; and
34.1 ORDINANCE NO. 2025-22
2 WHEREAS, pursuant to Sections 17958.5, 17958.7, and 18941.5 of the Health and Safety Code, the proposed amendments meet the following conditions to demonstrate local amendments are necessary; and
WHEREAS, the 2025 California Energy Code offers compliance options that were established through the public rulemaking process ofthe code update; and WHEREAS, pursuant to California Health and Safety Code Section 17958.7, the Council expressly declares that the proposed amendments to the Energy Code are reasonably necessary because of local climatic, topological, and geological conditions within the City of Santa Cruz; and
WHEREAS, the requirements specified in this Ordinance were reviewed via public comment and through a publicly noticed public hearing process; and WHEREAS, that, pursuant to the Public Resources Code section 25402.1(h)(2) and Section 10-106 of the 2025 California Administrative Code, the City Council of the City of Santa Cruz finds and determines the following: (1) The locally adopted energy efficiency standards contained in this ordinance are cost-effective, and (2) the efficiency standards in this ordinance will require buildings to be designed to consume less energy compared to the 2025 California Energy Code; and
WHEREAS, The municipal code amendments are consistent with the Negative Declaration approved for the City of Santa Cruz 2030 Climate Action Plan adopted by City Council on September 13, 2022, and therefore, no further environmental review under the California Environmental Quality Act (CEQA) is required; the amendments are exempt from CEQA under the general rule, 15061(b)(3), because it can be seen with certainty that the provisions contained herein would not have the potential for causing a significant effect on the environment; and, this ordinance is exempt per CEQA Guidelines Section 15308, Class 8, Actions by Regulatory Agencies for Protection of Natural Resources, since the proposed ordinance would institute regulatory requirements intended to protect the environment and natural resources.
WHEREAS, this ordinance shall become effective as of January 1, 2026 upon approval of the California Energy Commission or upon the date the California Building Standards Commission accepts the ordinance for filing, whichever is later.
BE IT ORDAINED By the City of Santa Cruz as follows:
Section 1. Incorporation of Recitals. The foregoing recitals are found to be true and correct, and are incorporated by this reference into this action.
Section 2. Findings.
(a) Pursuant to the Public Resources Code section 25402.1(h)(2) and Section 10- 106 of the 2025 California Administrative Code, City Council finds and determines the following: (1) The locally adopted energy efficiency standards
34.2 ORDINANCE NO. 2025-22
3 contained in this ordinance are cost-effective, and (2) the efficiency standards in this ordinance will require buildings to be designed to consume less energy compared to the 2025 California Energy Code.
(b) The Council finds and declares that the unique characteristics of the topographic, geologic, and climatic conditions found in the City of Santa Cruz make the local amendments to the 2025 California Energy Code reasonable and necessary, and adopts the following findings of fact in support of the changes or modification contained herein:
(i) The City of Santa Cruz’s northern and western neighborhoods abut the Santa Cruz Mountains, creating a wildland-urban interface and heightened fire risk. The 2020 CZU Lightning Complex fire showed that large, fastmoving wildfires can reach these areas. Cutting local greenhouse-gas pollution is a practical way to lessen the frequency and intensity of future fires.
(ii) Since 2021 the City has faced several destructive flood events. A lateJanuary 2021 atmospheric-river storm triggered debris-flow, causing evacuations. Between December 30, 2022, and January 18, 2023, several atmospheric rivers overtopped the San Lorenzo River, damaged downtown levees and coastal infrastructure. Finally, a powerful winter storm in December 2024 partially collapsed the Santa Cruz Municipal Wharf, leading Governor Newsom to issue an emergency proclamation on February 14, 2025. These recent disasters underscore that greenhouse-gas emissions are amplifying flood hazards. Accordingly, more restrictive local Energy Code measures are reasonably necessary to safeguard public health, safety, and welfare.
(iii)In January 2023, successive atmospheric-river storms overwhelmed the Coast Pump Station on the San Lorenzo River, ruptured the Newell Creek Pipeline, the city’s lone conduit from Loch Lomond Reservoir to the Graham Hill Water Treatment Plant, and pushed raw-water turbidity at the plant to its highest level on record. These escalating, climate-linked disruptions to critical infrastructure make the Ordinance’s stricter local Energy Code requirements a necessary safeguard for public health, safety, and welfare.
(iv)Santa Cruz occupies a narrow marine terrace bounded by 15- to 30-foot mudstone cliffs along West Cliff Drive and the San Lorenzo River. This layout channels storm waves onto easily eroded bluffs and funnels runoff into downtown, as seen when the January 2023 bomb-cyclone washed out parts of West Cliff and a December 2023 surge increased damages to over $30 million. The City’s Local Hazard Mitigation and Climate Adaptation Plan (2025-2030) ranks these cliffs and the river plain as high-risk for erosion, liquefaction, and quake impacts. To slow erosion, temper storm
34.3 ORDINANCE NO. 2025-22
4 intensity, and protect key corridors, stricter Energy Code measures that curb greenhouse-gas emissions are essential.
(v) Given the unique geological, topographical, and climatic characteristics of Santa Cruz, failure to address and substantially reduce greenhouse gas emissions creates an increased risk to the health, safety, and welfare of City residents.
Section 3. Section 18.15.040 of Chapter 18.15 of the Santa Cruz Municipal Code is hereby amended to read as follows:
18.15.040 ENERGY CODE — MODIFICATIONS.
The following sections of the code as adopted in Section 18.15.030 are hereby modified as follows:
Section 100.1(b) of the CEnC is amended to add the following:
MAJOR ADDITION is any change to an existing building that increases conditioned floor area by 350 or more square feet in a one-year period.
MAJOR ALTERATION is any construction or renovation to an existing structure other than a repair whose altered components cover 350 or more square feet in a one-year period. A project that consists only of roof and/or fenestration replacement is not considered a major alteration.
Section 130.0 of the CEnC is amended to read as follows:
a) The design and installation of all lighting systems and equipment in nonresidential and hotel/motel buildings, outdoor lighting, and electrical power distribution systems within the scope of Section 100.0(a), shall comply with the applicable provisions of Sections 130.0 through 130.6.
Subchapter 4 of the CEnC is amended to add Section 130.6 to be numbered, entitled, and to read as follows:
130.6 Electric Readiness Requirements for Systems Using Gas or Propane Where nonresidential systems using gas or propane are installed, construction drawings shall indicate electrical infrastructure and physical space accommodating the future installation of an electric heating appliance by including the following, as certified by a registered design professional or licensed electrical contractor:
a. Branch circuit wiring, electrically isolated and designed to serve all electric heating appliances in accordance with manufacturer requirements and the California Electrical Code, including the appropriate voltage, phase, minimum amperage, and an electrical receptacle or junction box within five feet of the appliance that is accessible with no obstructions. Appropriately sized conduit may be installed in lieu of conductors.
34.4 ORDINANCE NO. 2025-22
5 b. Labeling of both ends of the unused conductors or conduit that includes the terms "For Future Electrical Appliance."
c. Reserved circuit breakers in the electrical panel for each branch circuit, appropriately labeled (e.g., "Reserved for Future Electric Range"), and positioned on the opposite end of the panel supply conductor connection.
d. Connected subpanels, panelboards, switchboards, busbars, and transformers that are sized to serve the future electric heating appliances. The electrical capacity requirements shall be adjusted for demand factors in accordance with the California Electric Code. e. Physical space for future electric heating appliances, including equipment footprint, and if needed, a pathway reserved for routing of ductwork to heat pump evaporator(s), all of which shall be depicted on the construction drawings. The footprint necessary for future electric heating appliances may overlap with non-structural partitions and with the location of currently designed gas-fueled equipment.
Section 141.0(b)2C is amended to add a new subsection iii, to read as follows:
iii. In addition to the requirements in Section 141.0(b)2Cii above, new or replacement single zone packaged rooftop systems with direct expansion cooling with rated cooling capacity of 65,000 Btu/hr or more and less than 240,000 Btu/hr serving Financial Institution, Grocery, Library, Office, School, or Retail occupancies shall meet the applicable requirements specified in Table 141.0-E-1A or shall meet the performance compliance requirements of Section 141.0(b)3.
Table 141.0-E-1A – REQUIREMENTS FOR NEW OR REPLACMENT SZAC or SZHP, GREATER THAN 65,000 BTU/HR AND LESS THAN 240,000 BTU/HR System Size CZ 3
65,000 to 240,000 Btu/hr SZHP or SZAC3
Notes to Table 141.0-E-1A
SZHP – Single Zone Heat Pump
SZAC3 – Single Zone Air Conditioner with Furnace + Heat Recovery Ventilator Exception 1 to Section 141.0(b)2Ciii: Where the capacity of the existing main electrical service panel is insufficient to supply the electrical capacity of a heat pump and where the existing main electrical service panel is sufficient to supply a new or replacement air conditioner, as calculated according to the requirements of California Electrical Code Article 220. Documentation of electrical load calculations in accordance with Article 220 must be submitted to the enforcement agency prior to permitting for both the heat pump and proposed air conditioner.
Section 150.0 of the CEnC is amended as follows:
Single-family residential buildings shall comply with the applicable requirements of Sections 150(a) through 150.0(w).
34.5 ORDINANCE NO. 2025-22
6 NOTE: The requirements of Sections 150.0 (a) through (v) apply to newly constructed buildings.
Sections 150.2(a) and 150.2(b) specify which requirements of Sections 150.0(a) through 150.0(r) also apply to additions or alterations. Major Additions, Major Alterations, or combinations shall also be required to comply with Section 150.0(w). The City of Santa Cruz amendments to sections 150.0 (t) do not apply to additions or alterations or the following types of new construction statewide exemption accessory dwelling units:
1. One accessory dwelling unit per lot with a proposed single-unit building, including a single-family dwelling, or a townhome, or a detached residential condominium or apartment unit on a lot with multiple single-unit buildings, if all of the following apply:
i. The accessory dwelling unit is within the proposed space of a single-unit building. ii. The accessory dwelling unit has an exterior entrance separate from that of the primary dwelling unit.
iii. The side and rear setbacks are sufficient for fire and safety.
2. One detached, new construction accessory dwelling unit per lot that meets the following standards:
i. The accessory dwelling unit shall be located on a lot with a proposed or existing single-unit building, including a single-family dwelling, or a townhome, or a detached residential condominium or apartment unit on a site with multiple singleunit buildings. ii. The accessory dwelling unit size shall not exceed 800 square feet in floor area. iii. Interior side yard and rear yard setbacks shall be at least four feet. iv. The accessory dwelling unit shall meet one of the following height limitations as measured to the roof peak:
1. A height of 16 feet; or
2. A height of 18 feet if the accessory dwelling unit is on a lot within one-half of one mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code. This height can be increased an additional two feet to twenty feet to accommodate a roof pitch on the accessory dwelling unit that is aligned with the roof pitch of the primary dwelling unit.
3. One junior accessory dwelling unit per lot zoned to allow single-family dwellings and within the walls of a proposed single-unit building, including a single-family dwelling,
34.6 ORDINANCE NO. 2025-22
7 townhome, or detached residential condominium or apartment unit on a lot with multiple detached single-unit dwellings.
(a)—(v): Subsections 150.0(a)—(s) are adopted without modification. t. Heat pump space heater ready. Systems using a gas or propane furnace to serve individual dwelling units shall include the following:
1. A dedicated 240-volt branch circuit wiring shall be installed within 3 feet from the furnace and accessible to the furnace with no obstructions. The branch circuit conductors shall be rated at 30 amps minimum. The blank cover shall be identified as "240V ready." All electrical components shall be installed in accordance with the California Electrical Code.
2. The main electrical service panel shall have a reserved space to allow for the installation of a double pole circuit breaker for a future heat pump space heater installation. The reserved space shall be permanently marked as "For Future 240V use."
3. A designated exterior location for a future heat pump compressor unit with either a drain or natural drainage for condensate and adequate space to maintain the equipment in accordance with California Mechanical Code 304.1 & California Electrical Code 110.26.
Section 150.0(w) is added to read as follows:
w. Mandatory Requirements for Existing Building Additions and Alterations. Existing Building Additions and Alterations shall meet the requirements of Items 1 through 3 below, as applicable:
1. Major addition. Any major addition shall require installation of a set of measures from the Measure Menu Table, Table 150.0-I to achieve a total score that is equal to or greater than 9. In addition, all mandatory measures listed in Table 150.0-I shall be installed. Measure verification shall be explicitly included as an addendum to the Certificate of Compliance to be filed pursuant to 2025 Title 24 Section 10-103. Installed measures shall meet the specifications in Table 150.0-J.
2. Major alteration. Any major alteration shall require installation of a set of measures from the Measure Menu Table, Table 150.0-I to achieve a total score that is equal to or greater than 9. In addition, all mandatory measures listed in Table 150.0-I shall be installed. Measure verification shall be explicitly included as an addendum to the Certificate of Compliance to be filed pursuant to 2025 Title 24 Section 10-103. Installed measures shall meet the specifications in Table 150.0-J.
34.7 ORDINANCE NO. 2025-22
8 3. Combination alterations and additions. Any project that includes an addition and alteration whose altered components cover 350 square feet or greater shall require installation of a set of measures from the Measure Menu Table, Table 150.0-I to achieve a total score that is equal to or greater than 9. In addition, all mandatory measures listed in Table 150.0-1 shall be installed. Measure verification shall be explicitly included as an addendum to the Certificate of Compliance to be filed pursuant to 2025 Title 24 Section 10-103. Installed measures shall meet the specifications in Table 150.0-J.
4. Water heating system electric readiness. Any project that includes a major addition, major alteration, or combination alteration and addition that requires water heating system electric readiness shall meet the requirements of section 150.0 (n)1:
Exception 1 to Section 150.0(w): The project is the result of a repair as defined by Title 24 Part 2 Section 202.
Exception 2 to Section 150.0(w): If compliance costs exceed 20% of total project valuation or due to conditions specific to the project, it is technically infeasible to achieve compliance through any available set of measures, the applicant may request an exemption as set forth below. In applying for an exemption, the burden is on the applicant to show hardship or infeasibility.
1. Application. Based on the following, the applicant shall identify in writing the specific requirements of the standards for compliance that the project is unable to achieve and the circumstances that make it a hardship or infeasible for the project to comply with this chapter. The applicant may not petition for relief from any requirement of the 2025 California Energy Code (Title 24, Part 6) and referenced standards, or the 2025 California Green Building Standards (Title 24, Part 11) of the California Building Standards Code.
Circumstances that constitute hardship or infeasibility shall include one of the following:
i. That the cost of achieving compliance is disproportionate to the overall cost of the project;
ii. That it is technically infeasible to achieve compliance through all packages due to conditions specific to the project; That strict compliance with these standards would create or maintain a hazardous condition(s) and present a life safety risk to the occupants.
2. Granting of exemption. If the chief building official determines that it is a hardship or infeasible for the applicant to fully meet the requirements of this chapter and that granting the requested exemption will not cause the building to fail to comply with the 2025 California Energy Code (Title 24, Part 6) and referenced standards, or the 2025 California Green Building Standards (Title 24, Part 11) of the California Building Standards Code, the chief building official shall determine the minimum feasible threshold of compliance reasonably achievable for the project. If an exemption is granted, the applicant shall be
34.8 ORDINANCE NO. 2025-22
9 required to comply with this chapter in all other respects and shall be required to achieve the threshold of compliance determined to be achievable by the chief building official.
3. Denial of exemption. If the chief building official determines that it is reasonably possible for the applicant to fully meet the requirements of this chapter, the request shall be denied, and the applicant shall be notified of the decision in writing. The project and compliance documentation shall be modified to comply with the standards for compliance.
4. Appeal. Any aggrieved applicant or person may appeal the determination of the chief building official regarding the granting or denial of an exemption or compliance with any other provision of this chapter. An appeal of a determination of the chief building official shall be filed in writing with the Board of Building and Fire Appeals.
Exception 3 to Section 150.0(w): If the dwelling unit has previously installed measures from the Measure Menu, Table 150.0-1, and compliance can be demonstrated to the building official, then these measures shall not be required to be newly installed, and appropriate credit shall be included in the applicable compliance calculations.
Exception 4 to Section 150.0(w): The applicant may request an exemption to any requirements of this chapter which would impair the historic integrity of any building listed on a local, state, or federal register of historic structures, as determined by the Planning Director or designee and as regulated by the California Historic Building Code (Title 24, Part 8). In making a determination of exemption, the Planning Director or designee may require the submittal of an evaluation by an architectural historian or similar expert.
Exception 5 to Section 150.0(w): An alteration that consists solely of seismic safety improvements.
Exception 6 to Section 150.0(w): Buildings which are temporary (such as construction trailers).
Exception 7 to Section 150.0(w): An alteration that consists solely of roof and/or fenestration projects.
Exception 8 to Section 150.0(w): Mobile Homes, Manufactured Housing, or Factory-built Housing as defined in Division 13 of the California Health and Safety 12 Code (commencing with Section 17000 of the Health and Safety Code).
Exception 9 to Section 150.0(w): One accessory dwelling unit and one junior accessory dwelling unit per lot with a proposed or existing single-family dwelling if all of the following apply:
1. The accessory dwelling unit or junior accessory dwelling unit is within the proposed space of a single-family dwelling or existing space of a single-family dwelling or accessory structure and may include an expansion of not more than 150 square feet beyond the same physical dimensions as the existing accessory structure. An expansion beyond the physical dimensions of the existing accessory structure shall be limited to accommodating ingress and egress.
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10 2. The space has exterior access from the proposed or existing single-family dwelling.
3. The side and rear setbacks are sufficient for fire and safety.
Exception 10 to Section 150.0(w): Where the project includes an accessory dwelling unit or junior accessory dwelling unit that is attached to the primary dwelling unit, either as a new addition or converted from within the space of the primary dwelling unit, and there is not an additional combination alteration/addition to the primary dwelling unit of at least 350 square feet, then the primary dwelling unit is exempt from the requirements.
Exception 11 to section 150.0(w): Single family homes built after December 31, 1991.
New Table 150.0-I is added to read as follows:
Table 150.0-I: Measure Menu
Measures Table 150.0-J ID Points
Water Heating Package E1 1
Induction Cooktop E2 1
Heat Pump Clothes Dryer E3 1
Air Sealing E4 2
Duct Sealing E5 3
R-49 Attic Insulation E6 4
Windows E7 4
R-15 Wall Insulation E8 5
New Ducts + Duct Sealing E9 6
R-19 Floor Insulation E10 9
R-30 Floor Insulation E11 10
Heat Pump Water Heater (HPWH) E12 12
Solar PV + Electric Ready Pre-Wire E13 13
Heat Pump Space Heater E14 18
Utility Room, Kitchen & Laundry-Related Electric
Ready Pre-Wire M1 Mandatory
Panel-Related Electric Ready Pre-Wire M2 Mandatory
LED Lighting Upgrade M3 Mandatory
Note: the measures in the Measure Menu shall conform to the specifications in Table 150.0- J
New Table 150.0-J is added to read as follows: Table 150.0-J: Measure Specifications ID Measure Specification
General Measures
E1 Water Heating Package: Add exterior insulation meeting a minimum of R-6 to existing storage water heaters. Insulate all accessible hot water pipes with pipe insulation a minimum of ¾ inch thick. This includes insulating the supply pipe leaving the water heater, piping to faucets underneath sinks, and accessible pipes
34.10 ORDINANCE NO. 2025-22
11 in attic spaces or crawlspaces. Upgrade fittings in sinks and showers to meet current California Green Building Standards Code (Title 24, Part 11) Section 4.303 water efficiency requirements.
Water heaters 20 gallons or less, or water heaters that are not able to add exterior insulation may not take credit for this measure.
Exception 1: Water heater blanket is not required on water heaters less than 20 gallons.
Exception 2: Water heater blanket not required if application of a water heater blanket voids the warranty on the water heater.
Exception 3: Upgraded fixtures are not required if existing fixtures have rated or measured flow rates of no more than ten percent greater than 2025 California Green Building Standards Code (Title 24, Part 11) Section 4.303 water efficiency requirements.
Exception 4: Water heaters with factory installed insulation of R-24 or greater E2 Induction Cooktop: Replace existing gas and electric resistance stove top with inductive stove top and cap the gas line
E3 Heat Pump Clothes Dryer: Replace existing electric resistance clothes dryer with heat pump dryer with no resistance element and cap gas line.
E4 Air Sealing: Seal all accessible cracks, holes, and gaps in the building envelope at walls, floors, and ceilings. Pay special attention to penetrations including plumbing, electrical, and mechanical vents, recessed can light luminaires, and windows. Weather-strip doors if not already present.
Verification shall be conducted by a certified HERS Rater that either: a) shows at least a 30 percent reduction from pre-retrofit conditions; or b) shows that the number of air changes per hour at 50 Pascals pressure difference (ACH50) does not exceed ten for Pre-1978 vintage buildings, seven for 1978 to 1991 vintage buildings and five for 1992-2010 vintage buildings. Compliance can also be demonstrated with blower door testing conducted by a certified HERS Rater no more than three years prior to the permit application date showing compliance with condition (a) or (b).
If combustion appliances are located within the pressure boundary of the building, conduct a combustion safety test by a professional certified by the Building Performance Institute in accordance with the ANSI/BPI-1200-S-2017 Standard Practice for Basic Analysis of Buildings, the Whole House Combustion Appliance Safety Test Procedure for the Comfortable Home Rebates Program 2020 or the California Community Services and Development Combustion Appliance Safety Testing Protocol.
Reducing the air leakage of a building can reduce the building's drying potential.
When improving the air sealing of a building, consider if there is a need to add continuous ventilation to the building (if not already present).
E5 Duct Sealing: Air seal all space conditioning ductwork to meet the requirements of the 2025 Title 24 Section 150.2(b)lE. The duct system must be tested by a HERS Rater no more than three years prior to the alteration or addition permit application date to verify the duct sealing and confirm that the requirements have been met.
This measure may not be combined with the New Ducts and Duct Sealing measure
34.11 ORDINANCE NO. 2025-22
12 in this Table. Dwelling units without ductwork or where the ducts are in conditioned space may not take credit for this measure.
E6 R-49 Attic Insulation: Attic insulation shall be installed to achieve a weighted assembly U- factor of 0.020 or insulation installed at the ceiling level shall have a thermal resistance of R-49 or greater for the insulation alone. Recessed downlight luminaires in the ceiling shall be covered with insulation to the same depth as the rest of the ceiling. Luminaires not rated for insulation contact must be replaced or fitted with a fire-proof cover that allows for insulation to be installed directly over the cover.
Exception: In buildings where existing R-30 is present and existing recessed downlight luminaires are not rated for insulation contact, insulation is not required to be installed over the luminaires.
E7 Windows: Replace at least 50% of existing windows with high performance windows with an area-weighted average U-factor no greater than 0.27.
E8 R-15 Wall Insulation: Install wall insulation in all exterior walls to achieve a weighted U-factor of 0.095 or install wall insulation in all exterior wall cavities that shall result in an installed thermal resistance of R-15 or greater for the insulation alone.
E9 New Ducts+ Duct Sealing: Replace existing space conditioning ductwork with new R-8 ducts that meet the requirements of 2025 Title 24 Section 150.0(m) 11.
This measure may not be combined with the Duct Sealing measure in this Table.
To qualify, a preexisting measure must have been installed no more than three years before the alteration or addition permit application date.
E10 R-19 Floor Insulation: Raised-floors shall be insulated such that the floor assembly has an assembly U-factor equal to or less than U-0.037, or shall be insulated between wood framing with insulation having an R-value equal to or greater than R-19. This measure cannot be combined with measure R-30 Floor insulation.
E11 R-30 Floor Insulation: Raised-floors shall be insulated such that the floor assembly has an assembly U-factor equal to or less than U-0.028, or shall be insulated between wood framing with insulation having an R-value equal to or greater than R-30. This measure cannot be combined with measure R-19 Floor insulation.
E12 Heat Pump Water Heater (HPWH): Replace existing electric resistance or natural gas storage water heater with a heat pump water heater that meets the requirements of Sections 110.3 and 150.2 (b) 1.H.iii.b or c.
E13 PV and Electric Ready Pre-Wire: Install a solar PV system that meets the requirements of 2025 Title 24 Section 150.l(c)14.
In addition to the solar PV system, comply with the water heating system electric readiness requirements per Section 150.0(w)4 and the heat pump space heaters requirements per Section 150.0(t) and one of the following:
A. Energy Storage Systems (ESS) Ready, as specified in Section 150.0(s), or B. EV Charger Ready as specified in the California Green Building Code, Title 24, Part 11, Section A4.106.8.1, which otherwise applies to new construction.
34.12 ORDINANCE NO. 2025-22
13 Exception 1: In buildings where the designated space requirement specified in Section 150.0(n) 1 can be demonstrated to the building official as infeasible, the electric readiness components per Section 150.0(n)l are not required.
E14 Heat Pump Space Heater: Replace all existing gas and electric resistance space heating systems with an electric-only heat pump system that meets the applicable requirements of Sections 150.2 (b) 1.C, 150.2 (b)1.E, 150.2(b)1.F, and 150.2(b)1.G.
Mandatory Measures
M1 Utility Room, Kitchen & Laundry-Related Electric Ready Pre-Wire: Where the project includes a kitchen remodel, comply with the electric cooktop ready requirement, as specified in Section 150.0(u). Where the project includes a laundry room remodel, comply with the electric clothes dryer ready requirement, as specified in Section 150.0(v). Where the project includes a utility room remodel, comply with the water heating system electric readiness requirements per Section l50.0(n)1 and the heat pump space heater electric readiness requirements per Section 150.0(t):
Exception 1: If an electrical permit is not otherwise required for the project other than compliance with this measure.
Exception 2: If a utility service upgrade is not otherwise required for the project other than compliance with this measure.
Exception 3: In buildings where the designated space requirement specified in Section 150.0(n)1 can be demonstrated to the building official as infeasible, the electric readiness components per Section 150.0(n)1 are not required.
M2 Panel-Related Electric Ready Pre-Wire: Where the project includes a new electrical panel and electrical service upgrade to 200A or more, comply with the water heating systems electric readiness requirements per Section 150.0(n)1 and the heat pump space heater electric readiness requirements per Section 150.0(t).
Exception 1: In buildings where the designated space requirement specified in Section (150.0(n)1 can be demonstrated to the building official as infeasible, the electric readiness components per Section 150.0(n)1 are not required.
M3 LED Lighting Upgrade: Replace all interior and exterior screw-in incandescent, halogen, and compact fluorescent lamps with LED lamps. Install photocontrol and either a motion sensor or an automatic time switch, or an astronomical time clock control on all exterior lighting luminaires consistent with current Title 24 requirements for new single-family residential buildings.
Alternative means of exterior lighting timing controls, including smart home devices, may be approved.
Section 150.2(a) [ENERGY EFFICIENCY STANDARDS FOR ADDITIONS AND ALTERATIONS TO EXISTING SINGLE FAMILY RESIDENTIAL BUILDINGS] is modified to read as follows:
Additions. Additions to existing single-family residential buildings shall meet the requirements of Sections 110.0 through 110.9, Sections 150.0(a) through (n), (p), (q), (w), and either Section 150.2(a)1 or 2.
34.13 ORDINANCE NO. 2025-22
14 Section 150.2(b) [ENERGY EFFICIENCY STANDARDS FOR
ADDITIONS AND ALTERATIONS TO EXISTING SINGLE FAMILY RESIDENTIAL BUILDINGS] is modified to read as follows:
Alterations. Alterations to existing single-family residential buildings or alterations in conjunction with a change in building occupancy to a single-family residential occupancy shall meet either Item 1 or 2 below.
1. Prescriptive approach. The altered component and any newly installed equipment serving the alteration shall meet the applicable requirements of Sections 110.0 through 110.9 and all applicable requirements of Sections 150.0(a) through (1), 150.0(m)1 through 150.0(m)10, 150.0(p) through (q). and 150.0(w); and
2. Performance approach. The altered component(s) and any newly installed equipment serving the alteration shall meet the applicable requirements of Subsection A below.
A. The altered components shall meet the applicable requirements of Sections 110.0 through 110.9, Sections 150.0(a) through (1), Sections 150.0(m)1 through 150.0 (m)10, Sections 150.0(p) through (q), and Section 150.0(w). Entirely new or complete replacement mechanical ventilation systems as these terms are used in Section 150.2(b)1L, shall comply with the requirements in Section 150.2(b)1L. Altered mechanical ventilation systems shall comply with the requirements of Section 150.2(b)1M. Entirely new or complete replacement space-conditioning systems, and entirely new or complete replacement duct systems, as these terms are used in Sections 150.2(b)1C and 150.2(b) lDiia, shall comply with the requirements of Sections 150.0(m)12 and 150.0(m)13.
Section 4. Severability. If any word, phrase, sentence part, section, subsection or other portion of this amendment or any application thereof to any person or circumstance is declared void, unconstitutional, or invalid for any reason, then such word, phrase, sentence, part, section, subsection, or other portion, or the prescribed application thereof, shall be severable, and the remaining provisions of this amendment, and all applications thereof, not having been declared void, unconstitutional or invalid, shall remain in full force and effect.
Section 5. CEQA. The municipal code amendments are consistent with the Negative Declaration approved for the City of Santa Cruz 2030 Climate Action Plan adopted by City Council on September 13, 2022, and therefore, no further environmental review under the California Environmental Quality Act (CEQA) is required. This ordinance is also categorically exempt from CEQA because it is an action taken by a regulatory agency for the purpose of protecting the environment (CEQA Guidelines Section 15308). In addition, this ordinance is exempt from CEQA under the general rule, 15061(b)(3), on the grounds that these standards are more stringent than the State energy standards, there are no reasonably foreseeable adverse impacts, and there is no possibility that the activity in question may have a significant effect on the environment. The following findings are made in support of these determinations:
a) The purpose of the implementation of a Reach Code is to reduce the amount of
34.14 ORDINANCE NO. 2025-22
15 greenhouse gas emissions in Santa Cruz that are produced from buildings. b) The Reach Code approval process requires that Santa Cruz determines that the local standards will require buildings to be designed to consume less energy than current statewide requirements. Furthermore, the California Energy Commission approval process requires that Santa Cruz make the findings as part of its approval process.
Therefore, the Reach Code standards can only go into effect if they protect the environment by making buildings more efficient.
Section 6. Effective Date: This ordinance shall become effective as of January 1, 2026 upon approval of the California Energy Commission or upon the date the California Building Standards Commission accepts the ordinance for filing, whichever is later.
PASSED FOR PUBLICATION this 28th day of October, 2025, by the following vote:
AYES: Councilmembers Trigueiro, Brunner, Newsome, Golder, O’Hara; Vice Mayor Kalantari-Johnson; Mayor Keeley.
NOES: None.
ABSENT: None.
DISQUALIFIED: None.
APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
34.15 ORDINANCE NO. 2025-22
16 PASSED FOR FINAL ADOPTION this 18th day of November, 2025, 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. 2025-22 and that
it has been published or posted in
accordance with the Charter of the
City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator
34.16 Proof of Publication
(2015 C.C.P.)
I, the undersigned, declare:
That I caused the attached legal notice/advertisement to be published in the Santa Cruz Good Times, a weekly newspaper published and circulated in the County of Santa Cruz, and adjudged a newspaper of general circulation by the Superior Court of California in and for the County of Santa Cruz, under Proceeding No. 68833; and that the legal notice/advertisement was published in the above-named newspaper on the following date(s), to wit:
November 12, 2025
I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge.
This 12th day of November, 2025, Santa Cruz, California ____________________________
Julia Wood
Deputy City Clerk Administrator
34.17 DECLARATION OF POSTING
STATE OF CALIFORNIA )
) SS.
COUNTY OF SANTA CRUZ )
On the 12th day of November, 2025, I posted conspicuously in three public places within the City of Santa Cruz, Ordinance No. 2025-22, to wit:
1. City Hall: 809 Center Street: Bulletin Board outside Room 9/10
2. City Hall: Bulletin Board outside Council Chambers
3. The City of Santa Cruz website
The document, posted in its entirety, consists of pages 1—16.
I declare under penalty of perjury that the foregoing is true and correct. Executed this 12th day of November, 2025, in Santa Cruz, California.
_______________________________
Julia Wood
Deputy City Clerk Administrator
34.18 ORDINANCE NO. 2025-21
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ AMENDING TITLE 18 OF THE SANTA CRUZ MUNICIPAL CODE, ADOPTING CALIFORNIA CODE OF REGULATIONS TITLE 24 BUILDING STANDARDS CODE
WHEREAS, the City of Santa Cruz (“City”) proposes to adopt and incorporate by reference the 2025 edition of the California Building Standards Code, California Code of Regulations Title 24, Parts 1, 2, 2.5, 3, 4, 5, 6, 8, 10, 11 and 12 including referenced appendices (“Building Standards Code”), amendments and modifications; and WHEREAS, the City proposes to make certain changes in the requirements of the 2022 Building Standards Code, which will make certain parts the City’s Building Standards Code more restrictive than state law; and
WHEREAS, the City Council finds that in order to best protect the health, safety, sustainability and welfare of the residents of the City of Santa Cruz, the administrative regulations (Part 1) adopted herein and hereinafter referred to as the “administrative provisions” and the building standards for building construction, hereinafter referred to as the “technical codes,” and also known as the 2025 Edition of the California Building Standards Code and the California Code of Regulations, Title 24, including Parts 2, 2.5, 3, 4, 5, 6, 8, 10, 11 and 12, shall be adopted as provided herein; and
WHEREAS, based on the materials presented by and the recommendations of the city’s building official, the city council finds that it is necessary to make procedural and administrative modifications and changes to the California Building Standards Code and to adopt certain appendices to the California Building Standards Code as specifically adopted in this ordinance, to provide more efficient, economical and expeditious enforcement of the building standards of the City of Santa Cruz; and
WHEREAS, the City Council further finds and determines that pursuant to Health and Safety Code Sections 13143.5,17958, 17958.5, 17958.7 and 18941.5 the substantive amendments to California Building Standards Code, which are adopted by this chapter, are reasonable and necessary because of local climatic, geographical, or topographical conditions and do not lessen, diminish, or change the standards set forth within the California Building Standards Code except as authorized by law; and
WHEREAS, this code is adopted pursuant to the authority granted by Section 7 of Article XI of the California Constitution to a county or city to make and enforce within its limits all such local, police, sanitary and other ordinances and regulations as are not in conflict with general laws.
It is further adopted in conformity with the provisions of Sections 50022.1 through 50022.10, inclusive, of the Government Code relating to adoption of codes by reference; and
35.1 ORDINANCE NO. 2025-21
2 WHEREAS, pursuant to Health and Safety Code Section 18909(c), certain “administrative provisions” adopted by this chapter are procedural and administrative in nature and are not subject to the requirements of findings pursuant to Sections 17958.5, 17958.7 and 18941.5; and WHEREAS, the City Council hereby finds that the City's topography and terrain contain areas which are very susceptible to wildland fires, having a local climate characterized by hot, dry summers with periodic high winds which are a predominate factor in the spread of fire by burning embers that are carried by the wind to adjacent exposed areas. This is further compounded by agricultural and recreational use of lands contained within the City, as well as the open space, brush and hills that are part of and immediately adjacent to the City. These topographic and climatic conditions impact the City’s built environment, operations, public services and emergency services in such a way that their effects should be mitigated through appropriate amendments to the construction codes where practical; and
WHEREAS, earthquake activity represents significant potential hazards which could result in road closures, loss of housing, fires, injuries, collapsed buildings, and isolation of persons requiring assistance. Additionally, soil conditions within the City are such that liquefaction may occur during seismic activity, creating the potential for structure collapse or mudslides. There are only a limited number of thoroughfares through the City, and during periods of traffic congestion resulting from roadway obstructions, emergency services response times are increased. The City is comprised of a relatively large number of historically significant buildings which contain archaic materials and designs which present unique safety, remodeling and upgrading problems due to their age and proximity to earthquake faults; and
WHEREAS, the proximity to major earthquake faults represents a geologic hazard that could significantly impact the public and City’s occupants, City operations, public services, infrastructure, its housing, emergency services and its economic well-being in such a way that the potential hazards should be mitigated through appropriate amendments to the construction codes where practical; and
WHEREAS, due to the elevation of the City in relation to sea level and periodic storms resulting in significant rainfall, flooding during the rainy season often restricts traffic, has a detrimental effect on structures, housing and their occupants and can impair emergency services’ ability to respond to life threatening emergencies. These geologic and climatic conditions impact the public and the City’s operations and emergency services in such a way that their effects should be mitigated through appropriate amendments to the construction codes where practical; and WHEREAS, other than the adoption of the State mandated codes, the changes to Title 18 adopted by this ordinance reflect the clean-up of language, grammar, and code revisions needed to maintain current provisions as these new codes are incorporated; and WHEREAS, the existing sections of Title 18.15.040 “Energy Code” remain in full force and effect, except for the amendments to the California Energy Code of the 2025 California Building Code Cycle adopted by Ordinance 2025-22, which update Chapter 18.15.040 of the Municipal Code to require Energy Conservation Measures for Certain Heating, Ventilation, and Air Conditioner Replacements and Installations in Existing Nonresidential Buildings; and
35.2 ORDINANCE NO. 2025-21
3 WHEREAS, the City Council finds that this ordinance is exempt from CEQA under the general rule, CEQA Guidelines Section 15061(b)(3), because it can be seen with certainty that the provisions contained herein would not have the potential for causing a significant effect on the environment. This ordinance is also exempt per CEQA Guidelines Section 15305, Minor Alterations in Land Use Limitations, in that the building code regulations do not result in changes to land use or density. Further, this ordinance is exempt under CEQA Guidelines Section 15308, Class 8, Actions by Regulatory Agencies for Protection of Natural Resources, since the proposed ordinance would institute regulatory requirements intended to protect the environment and natural resources.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Santa Cruz as follows:
(NOTE: Those sections of Title 18 not included in this ordinance remain in force and unchanged by this ordinance.)
Section 1. Chapter 18.04 “Building Code” of Section 18 .04 .030 of the City of Santa Cruz Municipal Code of the City of Santa Cruz shall be amended at Section 18.04.030 “Adoption of Codes” to read as follows:
18.04.030 ADOPTION OF CODES.
Subject to the modifications and deletions set forth in Section 18.04.040 and by the State of California Building Standards Commission, the following documents are hereby adopted as part of the Building Code of the city of Santa Cruz:
California Code of Regulations Title 24 (hereafter CCR T 24), Part 1, The 2025 California Administrative Code;
CCR T 24, Part 2, Volumes 1 and 2, The 2025 California Building Code, including Appendices H, I, and Q except as modified herein (hereafter CBC);
CCR T 24, Part 2.5, The 2025 California Residential Code, including Appendices BF, BG, BB, and CI, except as modified herein (hereafter CRC);
CCR T 24, Part 6, The 2025 California Energy Code, except as modified herein (hereafter CEnC);
CCR T 24, Part 10, The 2025 California Existing Building Code, except as modified herein (hereafter CEBC);
CCR T 24, Part 11, The 2025 California Green Building Standards Code, except as modified herein (refer to Chapter 24.15, Green Building Regulations); CCR T 24, Part 12, The 2025 California Referenced Standards Code;
35.3 ORDINANCE NO. 2025-21
4 The Uniform Administrative Code, 1997 Edition, for the purpose of maintaining and administering the existing fee structure, except as modified herein (hereafter UAC); The Uniform Housing Code, 1997 Edition, except as modified herein (hereafter UHC); The Uniform Code for the Abatement of Dangerous Buildings, 1997 Edition, except as modified herein (hereafter UCADB);
One copy of each of the above documents is and shall be maintained on file in the office of the building official, for use and examination by the public.
Section 2. Chapter 18.04 “Building Code” of the City of Santa Cruz Municipal Code shall be amended at Section 18.04.040 “Building Code – Deletions and Modifications” to read as follows:
18.04.040 BUILDING CODE – DELETIONS AND MODIFICATIONS.
The following sections of the codes as adopted in Section 18.04.030 are hereby modified as follows:
The UAC Chapter 1 and the CBC Chapter 1, Division II shall have the following inserted under their respective headings to read as follows:
The 1997 Uniform Administrative code (UAC) shall be used for the purpose of maintaining and administering the existing fee structure as established in the UAC or adopted by the City of Santa Cruz as authorized by the UAC. The California Building Code Chapter 1, Division II shall be used in its entirety, as applicable, for the administration of the building standards codes for all buildings, structures and equipment in the City of Santa Cruz, except as modified in SCMC Title 18.
Add sentence to CBC Sections 1.8.8.1 and 1.11.2.5, and CRC Sections 1.8.8.1 and R112.1:
Refer to Santa Cruz Municipal Code (hereafter SCMC) Chapter 18.41, board of building and fire appeals.
CBC Section 105.1, insert second paragraph to read as follows:
Except as specified in Section 105.2, no building, structure or building service equipment regulated by this code and the technical codes shall be erected, constructed, enlarged, altered, repaired, moved, improved, removed, converted or demolished unless a separate, appropriate permit for each building, structure or building service equipment has first been obtained from the building official.
CBC Section 105.2 is hereby amended to add the following modification to exemption No. 1 and to add exemption No. 14:
35.4 ORDINANCE NO. 2025-21
5 1. One-story detached accessory structures used as tool and storage sheds, playhouses and similar uses, provided the floor area does not exceed 120 square feet (11m2). Exempted structures shall not be placed within six feet of each other or any other permanent structure and shall comply with local zoning requirements for setbacks and maximum number of structures allowed.
14. Decks and platforms that meet all the following criteria:
a) Are not more than 200 square feet in area, and
b) are not more than thirty inches above the adjacent grade at any point within the area of the deck and 36 inches beyond the edge of the deck, and c) are not attached to a building or structure, and
d) do not serve as part of a required exit or means of egress, and e) are not located over a basement or story below.
(Decks serving common areas in multi-family residential construction and all commercial decks are not exempted by this section.)
CBC Section 107.2.3 shall strike reference to R-2 and occupancies with the second sentence to read as follows:
In other than occupancies in Group R-3, the construction documents shall designate the number of occupants to be accommodated on every floor, and in all rooms and spaces.
CBC Section 110.1, insert second paragraph to read as follows:
A survey of the lot may be required by the building official to verify that the structure is located in accordance with the approved plans.
CBC Section 112, add Section 112.4 to read as follows:
112.4 Connection after Order to Disconnect. Persons shall not make connections from an energy, fuel or power supply nor supply energy or fuel to building service equipment which has been disconnected or ordered to be disconnected by the building official or the use of which has been ordered to be discontinued by the building official until the building official authorizes the reconnection and use of such equipment.
Add sentence to CBC Section 113.1:
Refer to SCMC 18.41, Board of Building and Fire Appeals.
35.5 ORDINANCE NO. 2025-21
6 CBC Section 406.3.2.1 is hereby amended to insert a sentence after the second sentence of the paragraph to read as follows:
Gypsum board applied to the garage side shall be suitably fire taped and have the nail heads spotted with taping compound.
CBC Section 1405 is hereby amended to add to Section 1405.1 a second paragraph, as follows:
1405.1 Shingles or Shakes. A minimum Class “B” Listing by a manufacturer acceptable to the Fire Marshal or the Chief Building Official shall be required for all wood shingles or shakes, and other shingles or shakes that may be used for exterior wall covering referred to elsewhere in this code. No Class “C” wood and non-rated wood shakes or wood shingles shall be installed as an exterior wall covering on any new or existing building or structure.
Wood shingles shall meet the minimum thickness requirements of Table 1404.2.
CBC Section 1405 is hereby amended to add an additional exception to Section 1405.1 as to read as follows:
Exception: Existing Wood Exterior Repairs or Installations of less than 25%. The Class “B” requirements of this section shall not apply when an existing building or structure with wood shake or wood shingle exterior wall covering is subject to installation, addition, repair, alteration or replacement of less than 25% of the existing building or structure's wood shake or wood shingle exterior wall covering area accumulated over the life of the building commencing on or after the effective date of this ordinance. For the purposes of this code, 25% of the area of wood exterior wall covering shall be calculated from the area of the wood exterior wall shake or wood shingle covering existing on the effective date of this ordinance.
CBC Section 1505 is hereby amended to add Section 1505.0 as follows:
1505.0 Class “C” wood, and non-rated wood roofs prohibited. No Class “C” wood, or nonrated wood roof covering shall be installed on any new or existing building or structure.
Any reference, table, footnote, or exception allowing Class “C” wood, or “N", or nonclassified wood roofing in this code is hereby amended to read as Class “B”. Any qualified historical building or structure as defined in Health and Safety Code Section 18955 may utilize alternative roof classifications as provided by the State Historical Building Code.
Where Title 19 of the SCMC and/or State standards identify conflicting Wildland/Urban Interface requirements in this jurisdiction, the most restrictive shall apply.
CBC Section 1512 is hereby amended to add Section 1512.0, as follows:
1512. Overlay on Existing Wood Roofs or Asphalt Shingle Roofs. Re-roofing over Class “C” wood or non-rated wood shakes and wood shingles is prohibited. When a roof has one or more layers of roof covering, any layer of which is wood shake or wood shingle, all built-up roof covering shall be completely removed before applying a new roof covering without exception (unless specifically provided for in SCMC Title 18).
35.6 ORDINANCE NO. 2025-21
7 CBC Section 1512.1 is hereby amended to add Exception 3, as follows:
3. Minor Work on Existing Wood Roofs. The requirements of Section 1512 shall not apply when an existing building or structure with a wood roof covering is subject to roof installation, addition, repair, alteration or replacement of less than 25% of the existing building or structure's wood roof-covering area, accumulated over the life of the building, commencing on or after the official date of this ordinance. In such circumstances, wood roof coverings with a CSFM listed rating may be used, provided the completed roof assembly complies with all other provisions of this code. For the purpose of this ordinance, 25% of the wood roof covering area shall be calculated from the area of wood roof covering existing on the effective date of this ordinance.
Modify CBC 1705.3 Exception 1 to read as follows:
Isolated spread concrete footings of buildings three stories or less above grade plane that are fully supported on earth or rock, where the structural design of the footing is based on a specified compressive strength, f'c, no greater than 2,500 pound per square inch (psi) (17.2 MPa), regardless of the compressive strength specified in the approved construction documents or used in the footing construction.
Add sentence to CBC Section 1804 after the section heading:
Refer to SCMC Chapter 18.45, excavation and grading regulations.
Add sentence to CBC Sections 2206.1.1.2, and 2305.1 to read as follows:
Gypsum board sheathing shall not be permitted to resist horizontal forces in shear walls.
Table 2308.10.1 (Wall Bracing Requirements) of CBC Chapter 23 (Wood) is amended as follows:
1) The title of Table 2308.6.1 is amended to read:
TABLE 2308.6.1a, f, g
2) Footnotes “f” and “g” are added to TABLE 2308.10.1, to read:
f. Methods PBS, HPS and SFB are not permitted in Seismic Design Categories D or E.
g. Methods GB, DWB and PCP are not permitted in Seismic Design Category E.
CRC Section 105.2 Exemption 1 shall be modified as follows:
35.7 ORDINANCE NO. 2025-21
8 In Exemption 1, add a second paragraph stating: Exempted structures shall not be placed within six feet of each other or any other permanent structure and shall comply with local zoning requirements for setbacks and maximum number of structures allowed.
CRC Table R301.2 shall be populated with the following criteria as established by the city of Santa Cruz, using criteria published in the CRC where applicable:
WIND DESIGN SUBJECT TO DAMAGE FROM GROUND
SNOW
LOAD
(PSF)
Ultimate
Speed
(mph)
Topographic
effects
Special
wind
region
Wind
borne
debris
zone
SEISMIC
DESIGN
CATEGORY Weathering Frost line
depth Termite
0 90 No No No D2
Negligibl
e
12 inches
below undisturbed
soil
Very
Heavy
ICE BARRIER
UNDERLAYMENT REQ’DFLOOD HAZARDS
AIR
FREEZING
INDEX
MEAN
ANNUAL
TEMP
No
5/16/2012 FIRM 06087C:
Panels 214E, 218E, 219E,
238E, 327E, 331E, 332E,
351E;
9/29/17 FIRM 06087C:
Panels 329F, 333F, 334F, 353F
0 55 F
Replace Manual J Design Criteria Table with the following:
MANUAL J DESIGN CRITERIA
Elevation
Altitude
Correction
Factor
Coincident Wet
Bulb
Indoor Winter
Design Relative
Humidity
Indoor Winter
Design Dry-bulb
Temperature
Outdoor Winter
Design Dry-bulb
Temperature
Heating
Temperature
Difference ()
125 ft 1.00 61 50% 70 38 32
Latitude Daily Ranger
Summer Deign
Gains
Indoor Summer
Design Relative
Humidity
Indoor Summer
Design Dry-bulb
Temperature
Outdoor Summer
Design Dry-bulb
Temperature
Cooling
Temperature
Difference ()
37 H -1 @ 50% RH 50% 75 71 4
CRC Section R302.5.1: delete exception.
Modify the third sentence of CRC Section R302.6 to read:
Attachment of gypsum board shall comply with Table R702.3.5; gypsum board applied to the garage side shall be suitably fire taped and have the nail heads spotted with taping compound.
35.8 ORDINANCE NO. 2025-21
9 Add sentence to CRC Section R313:
Refer to SCMC Title 19, Fire Prevention Code.
Table R602.10.3(3) (Bracing Requirements Based on Seismic Design Category) of CRC Chapter 6 (Wall Construction) is amended as follows:
1) The title of Table R602.10.3(3) is amended to read:
CRC Table R602.10.3(3)i, j
2) Footnotes “i” and “j” are added to Table R602.10.3(3), to read:
i. Methods PBS, HPS, SFB and CS-SFB are not permitted in Seismic Design Categories D0, D1, and D2.
j. Methods GB, DWB and PCP are not permitted in Seismic Design Categories D0, D1, and D2 where S1 is greater than or equal to 0.75.
Add sentence to CRC Section R703.6:
Refer to city amended CBC Sections 1405 for requirements.
Add CRC Section R902.0:
Refer to city amended CBC Section 1505 for local requirements.
UHC Section 103 and UCADB Section 102.2 shall have the following paragraph added, to read as follows:
Where reference is made to any code or standard, the most relevant code(s) and/or standards(s) as currently adopted in SCMC Title 18 shall be used. Where conflict may occur between other provisions of the Santa Cruz Municipal Code and this Title 18, Title 18 shall govern.
UHC Section 401, Nuisance, is hereby amended by adding item 9 to read:
9. Any residential property upon which a person or persons conducts activities, accumulates materials, or fails to maintain structures and grounds to a degree, which by common standards, is disruptive and/or damaging to general welfare, peace and sanctity of the surrounding neighborhood.
Section 3. Chapter 18.08 “Electrical Code” of the City of Santa Cruz Municipal Code shall be amended at Section 18.08.030 to read as follows:
35.9 ORDINANCE NO. 2025-21
10 18.08.030 ADOPTION OF THE ELECTRICAL CODE.
The following documents are hereby adopted as part of the Electrical Code of the city of Santa Cruz:
CCR T 24, Part 3, The 2025 California Electrical Code, except as modified herein (hereafter CEC).
One copy of the above documents is and shall be maintained on file in the office of the building official, for use and examination by the public.
Section 4. Chapter 18.12 “Plumbing Code” of the City of Santa Cruz Municipal Code is hereby amended at Section 18.12.030 to read as follows:
18.12.030 ADOPTION OF THE PLUMBING CODE.
The plumbing code of the city of Santa Cruz (CCR 24, Part 5, the 2025 California Plumbing Code) is hereby amended to adopt Appendix M, The Peak Water Demand Calculator, which provides an optional, alternate approach for use by builders in determining the sizing of plumbing systems and facilities.
One copy of the above documents is and shall be maintained on file in the office of the building official for use and examination by the public.
Section 5. Chapter 18.14 “Mechanical Code” of the City of Santa Cruz Municipal Code is hereby amended at Section 18.14.030 to read as follows:
18.14.030 ADOPTION OF THE MECHANICAL CODE.
The following documents are hereby adopted as part of the Mechanical Code of the city of Santa Cruz:
CCR T 24, Part 4, The 2025 California Mechanical Code, including Appendices B and C, except as modified herein (hereafter CMC).
One copy of the above documents is and shall be maintained on file in the office of the building official, for use and examination by the public.
Section 6. Chapter 18.15 “Energy Code” of the City of Santa Cruz Municipal Code is hereby amended at Section 18.14.030 to read as follows:
18.15.030 ADOPTION OF THE ENERGY CODE.
The following documents are hereby adopted as part of the Energy Code of the city of Santa
35.10 ORDINANCE NO. 2025-21
11 Cruz:
CCR T 24, Part 6, The 2025 California Energy Code, except as modified herein (hereafter CEnC).
One copy of the above documents is and shall be maintained on file in the office of the building official, for use and examination by the public.
Section 7. Chapter 18.40 “Historical Building Code” of the City of Santa Cruz Municipal Code is hereby amended at Section 18.40.030 to read as follows:
18.40.030 ADOPTION OF HISTORICAL BUILDING CODE.
The following documents are hereby adopted as part of the Mechanical Code of the city of Santa Cruz:
CCR T 24, Part 8, The 2025 California Historical Building Code (hereafter CHBC) is hereby adopted as part of the Historical Building Code of the city of Santa Cruz. One copy of the CHBC referred to above shall be maintained on file in the office of the building official, for use and examination by the public.
This ordinance shall be in force and take effect thirty (30) days after its final adoption but not prior to January 1, 2026.
PASSED FOR PUBLICATION this 28th day of October, 2025, by the following vote:
AYES: Councilmembers Trigueiro, Brunner, Newsome, Golder, O’Hara; Vice Mayor Kalantari-Johnson; Mayor Keeley.
NOES: None.
ABSENT: None.
DISQUALIFIED: None.
APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
35.11 ORDINANCE NO. 2025-21
12 PASSED FOR FINAL ADOPTION this 18th day of November, 2025, 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. 2025-21 and that
it has been published or posted in
accordance with the Charter of the
City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator
35.12 Proof of Publication
(2015 C.C.P.)
I, the undersigned, declare:
That I caused the attached legal notice/advertisement to be published in the Santa Cruz Good Times, a weekly newspaper published and circulated in the County of Santa Cruz, and adjudged a newspaper of general circulation by the Superior Court of California in and for the County of Santa Cruz, under Proceeding No. 68833; and that the legal notice/advertisement was published in the above-named newspaper on the following date(s), to wit:
November 12, 2025
I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge.
This 12th day of November, 2025, Santa Cruz, California ____________________________
Julia Wood
Deputy City Clerk Administrator
35.13 DECLARATION OF POSTING
STATE OF CALIFORNIA )
) SS.
COUNTY OF SANTA CRUZ )
On the 12th day of November, 2025, I posted conspicuously in three public places within the City of Santa Cruz, Ordinance No. 2025-21, to wit:
1. City Hall: 809 Center Street: Bulletin Board outside Room 9/10
2. City Hall: Bulletin Board outside Council Chambers
3. The City of Santa Cruz website
The document, posted in its entirety, consists of pages 1—12.
I declare under penalty of perjury that the foregoing is true and correct. Executed this 12th day of November, 2025, in Santa Cruz, California.
_______________________________
Julia Wood
Deputy City Clerk Administrator
35.14 City Council
AGENDA REPORT
DATE: 10/30/2025
AGENDA OF: 11/18/2025
DEPARTMENT: Planning and Community Development
SUBJECT: Amendments to Municipal Code Title 21, Chapter 21.03 – Relocation Assistance for Displaced Tenants and Title 24, Chapter 24.08, Part 14 - Residential Demolition/Conversion Authorization Permits Related to Displacement of Tenants Due to Enforcement of Unsafe Living Conditions and Demolition of Housing (PL)
LOCATION: Citywide
RECOMMENDATION: Motion to:
1) Introduce for publication an ordinance amending Titles 21 and 24 of the Santa Cruz Municipal Code (SCMC) related to relocation assistance associated with substandard housing cases and right of first refusal and other minor changes related to demolition of housing; 2) Introduce for publication an ordinance amending the Local Coastal Program (LCP) Implementation Plan (IP) and Title 24 of the Municipal Code related to the approving body for demolition of three or more dwellings; and
3) Acknowledge the determination that the proposed amendments are exempt under California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3) as they can be seen with certainty to have no possibility for causing a significant effect on the environment.
BACKGROUND: The City of Santa Cruz 2023-2031 Housing Element, certified and enforced by the State Department of Housing and Community Development (HCD), includes several objectives that aim to reduce tenant displacement and its associated hardships, and two of these objectives have implementation targets of 2025:
Objective 5.5b seeks to adopt anti-displacement policies, programs, or code amendments, such as additional anti-retaliation policies and programs or a revised first right of refusal to tenants displaced due to development, after evaluating the effectiveness of existing anti-displacement strategies and tools and engaging with the community to develop a list of best practices and recommendations.
Objective 6.4b calls for the City to amend the Zoning Ordinance to reflect state law related to right of first refusal for replacement units in new housing developments.
36.1 The City Council adopted the Relocation Assistance Ordinance (SCMC Chapter 21.03) in 1991 to address the extended or permanent displacement of tenants resulting from hazardous, substandard, or structurally deficient housing conditions. The primary purpose of the existing ordinance is to ensure that displaced tenants receive adequate relocation benefits to help cover the actual costs of securing temporary or permanent replacement housing. However, code compliance cases commonly result in shorter-term displacement of two months or less, a scenario that the current regulations do not address adequately. The proposed amendments to SCMC Chapter 21.03 address this issue and partially implement Objective 5.5b by strengthening anti-retaliation policies related to substandard rental housing.
The municipal code regulates demolition of housing through the Residential Demolition/ Conversion Authorization Permit under Zoning Ordinance Chapter 24.08, Part 14, which was created in 1989 and has been updated several times since then. However, state law related to demolition of housing has evolved significantly over the last few years. Specifically, the Housing Crisis Act of 2019 and subsequent amending legislation added stronger requirements related to relocation assistance, replacement housing, and a right of first refusal. The proposed amendments modify the housing demolition regulations in Municipal Code Title 24, ensuring congruency with state law and making other minor changes, implementing Housing Element Objectives 5.5b and 6.4b as they each speak to a right of first refusal related to demolition of housing.
DISCUSSION: The high-cost and competitive rental housing market in Santa Cruz puts households with more vulnerable income levels at higher risk of displacement, which can create substantial hardship to a displaced household in terms of securing new housing and incurring relocation expenses. The following proposed amendments seek to provide more support to a displaced tenant should that issue arise.
Relocation Assistance for Substandard Housing Cases
While the Relocation Assistance Ordinance was originally intended to assist tenants facing longterm displacement, Code Compliance staff have recently received inquiries from tenants seeking relocation assistance for shorter-term displacements. Examples include:
Utility repairs or replacements
Mold remediation or water damage repairs
Roof replacement or leak repair
Relocation assistance may also be necessary in these cases of short-term displacement while repairs or corrections are being made. In such instances, the duration of the displacement may not warrant the full amount typically associated with three to four months of relocation payments. Establishing relocation amounts based on the specific length of displacement provides clarity and transparency for both tenants and property owners.
The proposed amendments introduce a definition of “Displacement” categorized by duration as follows:
1. Temporary Displacement – A period of zero to fourteen (14) days.
2. Short-Term Displacement – A period of fifteen (15) to fifty-nine (59) days.
3. Long-Term Displacement – A period of sixty (60) days or more.
36.2 The definition of “Relocation Payment” is also being expanded to include reimbursement amounts for each displacement category, ensuring payments more accurately reflect the actual rent and associated costs incurred by the tenant for temporary housing during the displacement period. A Temporary Displacement requires a relocation payment of one month of fair market rent to the household and $300 to each adult tenant. A Short-Term Displacement requires three months of fair market rent to the household and $300 to each adult tenant. A Long-Term Displacement requires four months of fair market rent to the household and $300 to each adult tenant.
The code continues to allow landlords and tenants to mutually agree upon alternative arrangements for financial compensation or housing accommodations during displacement, provided that a written agreement is executed between the property owner and tenant(s). “Relocation Payment” is required if “unsafe or hazardous living conditions” make the dwelling unit unfit for human habitation, thereby creating the need for the tenant(s) to vacate. Other instances would not trigger “Relocation Payment.” For example, a leaky bathroom faucet would not create unsafe or hazardous living conditions. If the faucet was in the unit’s only bathroom and the repair necessitated the tenants to leave the unit, that would not trigger “Relocation Payment,” because the unit was fit for habitation even with the leak. However, if the leak caused dry rot to the point that the only bathroom was unsafe to enter, that unit would be unfit for habitation, and “Relocation Payment” would be required in the amount that corresponds to the timeframe that the unit needs to be vacated for the repairs to be completed.
Right of First Refusal and Demolition of Housing
The Residential Demolition/ Conversion Authorization Permit regulations provide relocation assistance for displaced moderate- or lower-income households and only require partial replacement of units when at least three units with moderate- or lower-income households are demolished. However, state law (Government Code §§ 66300.5-66300.6) requires that when a development project involves demolition of one of more rental housing units, lower income households displaced by demolition of their rental unit are afforded a right of first refusal for a comparable unit in the new development with rent or sale price deed restricted at a level affordable to that income level. For development projects that demolish existing units but do not include new housing in the development, those replacement units must be provided at another location within the jurisdiction, with a right of first refusal offered for those restricted to the lower-income households displaced by the development.
As a result, state law supersedes the local regulations related to demolition of housing in most instances, especially related to replacement housing and a right of first refusal being offered to displaced tenants for a unit in the new development. To ensure full alignment with this state law and implementation of Housing Element Objectives 5.5b and 6.4b, the amendments to the Residential Demolition/Conversion Authorization Permit regulations include a specific reference to this state code as it relates to a right of first refusal, among other requirements. The proposed amendments also make other minor changes, including eliminating subjective findings that are prohibited under state law for housing developments. Because the subjective findings are removed and only objective findings remain, the amendments also change the approval process for the demolition of three or more units from a public hearing with the Planning Commission to a Zoning Administrator approval without a hearing. The Zoning Administrator can establish consistency with objective findings, and requiring a higher hearing review body to make the same objective findings would make no difference and thus be unnecessary and inefficient.
36.3 Finally, the amendments make minor language changes to ensure congruency with state law and improve clarity of existing regulations.
Planning Commission
Amendments to the Zoning Ordinance are required to be presented at a meeting of the Planning Commission, who then makes a recommendation on the amendments to City Council. The proposed amendments to the Zoning Ordinance, including those relating to demolition of housing were presented to the Planning Commission on October 2, 2025. There were no public comments, and the Planning Commission unanimously voted to recommend approval of the amendments (5-0, Commissioners Kelley and McKelvey absent) with minimal discussion.
Local Coastal Program and Coastal Act Consistency
The City’s Local Coastal Program (LCP) is the tool used by the City and the Coastal Commission to implement the Coastal Act and regulate development activities within the Coastal Zone. The proposal includes one LCP Implementation Plan amendment: changing the approval body for the demolition of three or more dwelling units from a public hearing with the Planning Commission to the Zoning Administrator with no public hearing within Zoning Ordinance section 24.04.130.
The proposed modification would have no physical effect on the size or type of development permitted within the Coastal Zone. The proposed amendment is further consistent with the Coastal Act in that it is not anticipated to have any effects related to public access, coastal recreation, the marine environment, coastal land resources, industrial development, or sea level rise. The proposal also does not alter the public process that would otherwise be required for a Coastal Permit, should one be required for an affected project.
Next Steps
If approved by City Council today, these amendments are anticipated to return for a second reading at the December 9, 2025 City Council meeting. Should the amendments be approved by the City Council at that time, those changes that constitute amendments to the Local Coastal Program Implementation Plan (LCP IP) will be submitted to the California Coastal Commission for review. Those portions of the package that are not amendments to the LCP IP will take effect thirty days after final action by the City Council, while those that are subject to Coastal Commission jurisdiction will take effect immediately upon final action by that body. Staff anticipate submitting the amendment to the Coastal Commission this year, and it is expected to be heard by the Coastal Commission in early 2026.
It should also be noted that Housing Element Objective 5.5b provides for a range of potential anti-displacement actions beyond what is presented here. Staff anticipate further community engagement and pursuit of additional anti-displacement initiatives in the coming months, including but not limited to the implementation of Council’s October 28, 2025 direction related to monitoring and enforcement of the City’s local preference criteria for affordable housing, which has had very successful outcomes in housing local residents but has limited reporting mechanisms.
36.4 CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed amendments are exempt from environmental review under California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3) as a project that can be seen with certainty to have no possibility for causing a significant effect on the environment.
HEALTH IN ALL POLICIES (HiAP): In 2019, the City adopted a Health in All Policies strategy to eliminate inequities in health and well-being and attain equity for all residents. The proposed amendments further the City’s Health in All Policies strategy by clarifying and supporting protections for displaced tenants at vulnerable income levels and by defining fair incentives for landlords to provide safe housing, thereby promoting the sustainability of an equitable local housing market.
FISCAL IMPACT:
1. The recommendation in this report impacts the General Fund: No
2. This recommendation requires a budget adjustment: No
3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: These amendments create more detailed and clear requirements for relocation assistance associated with substandard housing code compliance cases and could therefore result in reduced staff time associated with enforcing and assisting tenants and property owners with understanding the requirements. Therefore, these relocation assistance amendments have the potential to impact the General Fund positively to an unknown but likely minor degree.
The amendments associated with demolition of housing would remove a public hearing requirement for demolition of three or more units, resulting in decreased intake of fees related to public hearings and a comparable decrease in expenses related to administration of public hearings. The net impact on the General Fund from this change would therefore be neutral.
Overall, the amendments are not expected to create a fiscal impact.
Prepared By:
Clara Stanger
Senior Planner
Laura Landry
Code Compliance Manager
Submitted By:
Lee Butler, LEED AP, AICP
Director of Planning and
Community Development
Approved By:
Matt Huffaker
City Manager
ATTACHMENTS:
1. ORDINANCE (NON-LCP) – CLEAN.DOCX
2. ORDINANCE (NON-LCP) – TRACKED CHANGES.DOCX
3. ORDINANCE (LCP IP) – CLEAN.DOCX
4. ORDINANCE (LCP IP) – TRACKED CHANGES.DOCX
5. PLANNING COMMISSION REPORT OF MEETING AGENDA OCTOBER 2, 2025.PDF
36.5 ORDINANCE NO. 2025-XX
AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING SANTA CRUZ MUNICIPAL CODE CHAPTER 21.03 – RELOCATION ASSISTANCE FOR DISPLACED TENANTS AND CHAPTER 24.08, PART 14: RESIDENTIAL
DEMOLITION/CONVERSION AUTHORIZATION PERMITS TO IMPLEMENT
AMENDMENTS RELATED TO DISPLACEMENT OF TENANTS DUE TO
ENFORCEMENT OF UNSAFE LIVING CONDITIONDS AND DUE TO DEMOLITION OF HOUSING. (CEQA: EXEMPT PURSUANT TO CEQA GUIDELINES SECTION 15061(b)(3) AS A PROJECT THAT WITH CERTAINTY HAS NO POSSIBILITY FOR CAUSING A SIGNIFICANT EFFECT ON THE ENVIRONMENT.)
WHEREAS, the City of Santa Cruz 2023-2031 Housing Element (Housing Element) was adopted in December 2023 by the Santa Cruz City Council and subsequently accepted by the state Department of Housing and Community Development; and
WHEREAS, Objectives 5.5b and 6.4b of the Housing Element require the City to adopt anti-displacement policies and to align with state law the regulations associated with right of first refusal for lower income households displaced by demolition; and WHEREAS, the City adopted the Relocation Assistance Ordinance, Chapter 21.03 of the Santa Cruz Municipal Code, in 1991 to address the extended or permanent displacement of tenants resulting from hazardous, substandard, or structurally deficient housing conditions; the city recognizes that relocation assistance may be necessary in cases of temporary displacement, where tenants are required to vacate their residences for a limited period while repairs or corrections are made to the property, and that the amount of relocation assistance should be commensurate with the displacement period; and
WHEREAS, the City thereafter amended Chapter 21.03 on five additional occasions through Ordinance No. 91-43, Ordinance No. 92-30, Ordinance No. 2001-12, Ordinance No. 2018.02 and Ordinance No. 2018.20; and
WHEREAS, the City adopted municipal code Chapter 24.08, Part 14, Residential Demolition/Conversion Authorization Permits and subsequently amended this Part in 2016, 2019, 2022, and 2024; and
WHEREAS, at its October 2, 2025 meeting, the City Planning Commission reviewed the proposed amendments to Title 24 of 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 as proposed to be amended; and
WHEREAS, at its October 2, 2025 meeting the City Planning Commission passed a motion that recommended the City Council approve the determination under the California Environmental Quality Act and approve the proposed amendments to Title 24 of the Santa Cruz Municipal Code.
36.6 NOW THEREFORE BE IT ORDAINED by the City of Santa Cruz as follows:
Section 1. Section 21.03.020 of Chapter 21.03 of the Santa Cruz Municipal Code regarding Definitions is hereby amended to read as follows:
21.03.020 DEFINITIONS.
For purposes of this chapter, the following words and phrases, whenever used, shall be construed as defined in this section:
(a) “Fair market value” shall mean either the fair market value rent for a unit of comparable size, as established by the most current Federal Department of Housing and Urban Development schedule of fair market rents, or the tenant’s actual rent at the time of relocation, whichever is greater. If only a portion of the property is affected (for instance, one unit of a property that contains two units, or an additional bedroom added outside of habitable living space) the fair market value will be calculated on the bedrooms and/or rent of the affected areas.
(b) “Displacement” shall mean either:
(1) When tenant(s) is/are required to vacate structures rented for residential purposes due to unsafe or hazardous living conditions, as defined below, or due to illegal use of the structure as a residence. These types of Displacement will fall into three categories. (A) “Temporary displacement” shall mean a displacement of zero to fourteen days.
(B) “Short-term displacement” shall mean a displacement of fifteen to 59 days. (C) “Long-term displacement” shall mean a displacement of 60 days or more.
OR
(2) When tenant(s) is/are forced to relocate due to a large rent increase. (c) “Large rent increase” shall mean a rent increase of more than five percent in one year or cumulatively more than seven percent in any two consecutive years (seven percent over two consecutive years includes compound interest; e.g., for a maximum five percent increase in one year followed by a one-and-nine-tenths percent increase in the following year). (d) “Relocation assistance” shall mean relocation payment(s), suspension of rents due while the tenant does not occupy the property, and the right of first refusal to reoccupy a residential structure, as defined in this section, for tenant(s) affected by displacement. (e) “Relocation payment” shall mean:
36.7 (1) For tenants who are required to vacate structures rented for residential purposes due to unsafe or hazardous living conditions, or due to illegal use of the structure as a residence:
(A) And where the property owner has established that there will be only a temporary displacement, the immediate payment of one month’s fair market value and an additional payment of $300 to each adult tenant to allow for additional costs related to the displacement.
(B) And where the property owner has established there will only be a shortterm displacement, the immediate payment of three months’ fair market value and an additional payment of $300 to each adult tenant to allow for additional costs related to the displacement. (C) And where a temporary displacement has turned into a short-term displacement, the payment of an additional two months’ fair market value within three days of the change in the term of displacement.
(D) And where a short-term displacement has turned into a long-term displacement, the payment of one additional one month’s fair market value within three days of the change in the term of displacement.
(E) And where a long-term displacement is anticipated, or the owner has not established there will be a shorter displacement, the immediate payment of four months’ fair market value and an additional payment of $300 to each adult tenant to allow for additional costs related to the displacement.
(2) For tenant(s) affected by any displacement, an agreement for other arrangements made between the property owner and the tenant(s) which provides equal benefits to the tenant(s) as evidenced by a written agreement between the tenant(s) and the property owner may substitute for the payment(s) required in 21.03.020(e)(1) or (e)(3). Such agreement shall at a minimum contain each of the following components:
(A) The names of the current tenant(s) of the unit being vacated, and an indication of who is considered the head of household therein;
(B) The address and the number of the unit from which the tenant(s) is/are being displaced;
(C) A statement indicating the amount of relocation payment to which the tenant(s) is/are entitled, based on the fair market value for the size of the subject unit;
(D) A statement that the tenant(s) has/have waived the right to such relocation payment, and describing what alternative arrangements of equal benefit the property owner has agreed to provide the tenant(s), which is acceptable to the tenant(s) in lieu of the lump sum relocation payment(s) set forth in 21.03.020(e)(1) or (e)(3); and
(E) The address, if known, of the location to which the tenant(s) plans to move.
36.8 (3) For tenants who relocate due to a large rent increase, the payment of two months of the tenant’s actual rent, that was in effect prior to the effective date of the large rent increase, within twenty-one calendar days after a tenant gives the owner notice of intent to vacate due to a large rent increase or before the tenant(s) vacate the property, whichever is soonest.
(4) “Immediate payment” of any relocation payment shall mean payment delivered to the tenant prior to the time the tenant vacates the unit or within one day thereafter. (5) A relocation payment shall be a separate requirement and obligation payable to a tenant, and it is in addition to the refund of any security deposit pursuant to California Civil Code Section 1950.5 and/or the payment of interest accrued on said security deposit pursuant to Chapter 21.02.
(f) “Right of first refusal” shall mean the right of a tenant to reoccupy a residential structure on the site formerly occupied by said tenant, once the residential structure is repaired and becomes habitable, or once housing is redeveloped on the site. (g) “Tenant” shall mean each person who occupies a structure for residential purposes with the knowledge and/or consent of the property owner and/or the property owner’s agent.
(h) “Unsafe or hazardous” living condition is an issue identified by the city, and posted to the property, stating that the dwelling or portion of the dwelling is unfit for human habitation, creating the need for the tenant(s) to vacate. Examples may include, but are not limited to, structural deficiencies that threaten safety, inadequate escape/rescue access for sleeping quarters, or leaking gas lines.
Section 2. Section 21.03.030 of Chapter 21.03 of the Santa Cruz Municipal Code regarding Relocation Assistance Requirements is hereby amended to read as follows:
21.03.030 RELOCATION ASSISTANCE REQUIREMENTS.
(a) Relocation Assistance. The owner of any structure rented for residential purposes shall provide relocation assistance and make relocations payment(s), as specified in Section 21.03.020, to the tenant(s) that are required to vacate due to unsafe or hazardous living conditions; or due to illegal use of the structure as a residence; or vacate after a tenant gives the owner notice of intent to vacate due to a large rent increase.
(b) No refund on relocation payment(s) is due to the property owner, including when displacement is shorter than anticipated, unless one of the exemptions of
21.03.040 applies.
(c) Proof of Compliance. In order to provide proof of compliance by the property owner with the relocation payment requirements due to unsafe or hazardous living conditions or due
36.9 to illegal use of the structure as a residence, a copy of the check or money order provided to the tenant(s), and a receipt signed by the tenant(s), or a copy of the written agreement executed by the property owner and the tenant(s) providing for and describing alternative arrangements under 21.03.020(e)(2), shall be provided to the code compliance specialist of the city of Santa Cruz department of planning and community development within five days of the date that the unit is vacated by the tenant(s).
(d) Right of First Refusal. Any tenant(s) evicted or required to vacate any residential structure due to unsafe or hazardous living conditions or due to illegal use of the structure as a residence shall be given the right of first refusal to reoccupy a residential structure on the site once said structure becomes habitable, or once a replacement housing structure is constructed on the same site.
(1) The owner of said structure shall, at the time the tenant(s) vacates, provide written notice advising the tenant(s) of the right of first refusal. Said notice shall include a current address and telephone number which can be used by the tenant(s) to contact the owner.
(2) It shall be the tenant’s responsibility to provide the owner of said structure with contact information consisting of the tenant’s current address and/or telephone number to be used for future notification, and to provide updated contact information to the owner upon change of said information.
(3) Thereafter, when said structure becomes available, the property owner shall give written notice to the tenant(s) advising said tenant that the structure is ready for occupancy. Said written notice shall be made by certified mail, return receipt requested.
If there are multiple tenants with this right, and they do not intend to live together, the property owner’s notice shall advise that it is the first tenant that confirms acceptance shall have the right to reoccupy. If the accepting tenant thereafter fails to reoccupy, the landlord must thereafter offer the right to reoccupy to the other tenant(s) again. (4) If the property owner cannot locate a previous tenant(s) after two attempts over a period of two weeks, the property owner shall be deemed to have complied with the right of first refusal provision of this chapter, and the tenant’s right of first refusal shall thereafter be forfeited.
(5) Owner shall offer the structure, or a redeveloped structure on the same site, at same rental rate that was in effect at the time the tenant(s) vacated the property and the time during which the property was vacated will be tolled for application of rent increase(s) under this chapter and under California Civil Code 1947.12 or its successor law.
(6) If an Owner fails to offer the tenant(s) first refusal and re-rents the property, the tenant(s) shall be entitled to the payment of an additional four months' fair market value. (7) With respect to the first right of refusal, where the provisions of state and local law conflict, the provision that provides the greater protections to the tenant(s) shall take precedent.
36.10 Section 3. Section 21.03.040 of Chapter 21.03 of the Santa Cruz Municipal Code regarding Exceptions is hereby amended to read as follows:
21.03.040 EXCEPTIONS.
(a) The following tenant(s) evicted or required to vacate as a result of unsafe or hazardous living conditions or illegal use, shall not be entitled to receive relocation assistance from the property owner:
(1) Any tenant who is then in default of rent (except tenants withholding rent pursuant to state law for correction of unsafe or hazardous conditions); (2) Any tenant who refuses to promptly vacate the property after the portion of the structure they have been occupying is posted as unsafe or hazardous, unless there is alternative agreement under section 21.03.020(e)(2) allowing occupancy of a different part of the property;
(3) Any tenant who refuses to vacate after the timely payment of the relocation payment, unless there is alternative agreement under section 21.03.020(e)(2); or (4) Any tenant who has caused or substantially contributed to the condition(s) giving rise to the unsafe or hazardous living condition(s) of the property. (b) Property owners are not required to provide relocation assistance to any tenant evicted or required to vacate a residential structure that becomes unsafe or hazardous due to recent events that are beyond the control of the property owner. (c) For tenants who relocate due to a large rent increase, tenant(s) shall provide such notice of intent to vacate no later than sixty days after the effective date of such increase. If such notice is not given by tenant within sixty days of effective date of rent increase, tenant is understood to have accepted such increase and is no longer eligible to claim relocation assistance from the property owner.
(d) Properties owned by the City are not subject to relocation assistance. (e) Units governed by deed restrictions for affordable housing are not subject to the large rental increase provisions of this chapter.
Section 4. Section 21.03.050 of Chapter 21.03 of the Santa Cruz Municipal Code regarding Rent Increases During Repairs is hereby amended to read as follows:
21.03.050 RENT INCREASES DURING REPAIRS.
(a) In those cases where the owner has been issued a notice and order by the city to repair or remedy unsafe or hazardous living conditions or illegal use of residential rental property and where said repairs or remediation does not cause displacement of the tenants,
36.11 thereby allowing the tenants to remain in residence while said repairs are undertaken, it shall be unlawful for a property owner to increase the amount of rent for any structure rented for residential purposes during the time that repairs are being made pursuant to the city notice and order requiring said repairs. No rent increase shall thereafter be levied until the city has issued a certificate of passed inspection verifying the fact that said repairs or remediation has been completed.
(b) In those cases where a notice and order has been issued to a property owner by the city to repair or remedy unsafe or hazardous living conditions or illegal use of residential rental property, and where said notice and order has been issued by the city within ninety days of a rent increase levied by the property owner upon the tenants of the property, and where said repairs or remediation does not cause displacement of the tenants, thereby allowing tenants to remain in residence while said repairs are undertaken, the property owner shall be required to roll back rents to the rates of rent charged by the landlord prior to the subject rent increase. In addition, all excess rents collected by the property owner between the date of the rent increase and the date of the notice and order shall be refunded to the tenants. Thereafter, it shall be unlawful for the property owner to increase the amount of rent during the time that said repairs and remediation are being made pursuant to the subject notice and order requiring said repairs and no rent increase shall be levied until the city has issued a certificate of passed inspection verifying the fact that said repairs or remediation has been completed.
Section 5. Section 21.03.060 of Chapter 21.03 of the Santa Cruz Municipal Code regarding Violation and Penalty is hereby amended to read as follows:
21.03.060 VIOLATION AND PENALTY.
Any violation of this chapter shall be deemed an infraction for the first offense. Any subsequent violation occurring within six months from the first offense shall be deemed a misdemeanor. In addition to any other available remedies and penalties, said offense(s) shall be subject to all of the remedies and penalties provided for in Title 4. In accordance with Section 4.12.030, an administrative civil penalty of up to two thousand five hundred dollars per day may be assessed for each day during which a property owner or manager fails to provide relocation assistance required by Section 21.03.030 following issuance of a written order or notice of violation by the city. Nothing herein shall limit the right of a tenant to enforce the obligations provided herein by civil action or by any other legal remedy which may be available to said tenant.
Section 6. Section 21.03.070 of Chapter 21.03 of the Santa Cruz Municipal Code regarding Private Right of Action is hereby amended to read as follows:
21.03.070 PRIVATE RIGHT OF ACTION.
The city maintains discretion to have any violation contained in this chapter to be enforced
36.12 through civil matters rather than by the city. Further, any person whose rights pursuant to this chapter have been violated shall have the right to file an action for injunctive relief and/or damages. Whoever is found to have violated this chapter shall be subject to appropriate injunctive relief and shall be liable for damages, costs and reasonable attorney’s fees. Treble damages shall be awarded for willful failure to comply with the payment obligation established by this chapter. Any action pursuant to this section shall be a civil matter and adjudicated through civil court.
Section 7. Section 24.08.1320 of Chapter 24.08 of the Santa Cruz Municipal Code regarding General Provisions is hereby amended to read as follows:
24.08.1320 GENERAL PROVISIONS.
California state law includes strict standards for the demolition of housing in an effort to ensure that existing density is not reduced and that housing that is currently rented to lower income tenants is maintained as affordable housing within new development. Housing demolition shall comply with the requirements of this Part as well as applicable requirements contained in California state law governing relocation assistance, replacement housing units, and right of first refusal, including but not limited to California Government Code Sections 65583.2, 65915(c), 66300.5, and 66300.6, as amended. For each provision of the regulations, when both this code and the Government Code apply, whichever has the stricter requirements, such as the higher number of replacement units, higher number of bedrooms, and/or greater amount of relocation assistance, shall take precedence. A residential demolition/conversion authorization permit shall be required prior to issuance of a demolition permit for any residential dwelling unit, including any accessory dwelling unit or junior accessory dwelling unit, or single-room occupancy living unit. A residential unit that is replaced by a conversion accessory dwelling unit shall not be required to obtain a residential demolition authorization permit.
Section 8. Section 24.08.1340 of Chapter 24.08 of the Santa Cruz Municipal Code regarding Demolition or Conversion of Dwelling Groups, Multiple Dwellings, and Single-Room Occupancy Living Units is hereby amended to read as follows:
24.08.1340 DEMOLITION OR CONVERSION OF DWELLING GROUPS, MULTIPLE DWELLINGS, AND SINGLE-ROOM OCCUPANCY LIVING UNITS.
The zoning administrator may issue a demolition/conversion authorization permit for the demolition or conversion of a multifamily structure, dwelling groups, multiple dwellings and single-room occupancy living units upon holding a public hearing and finding that:
1. The project to replace the demolished or converted units has been approved and an appropriate building permit has been issued; unless a hardship can be documented rendering this finding inappropriate;
2. The demolition or conversion meets all applicable requirements for relocation assistance, replacement housing, and right of first refusal required by Sections 24.08.1350 through
36.13 24.08.1370 and state law, including but not limited to California Government Code Sections 65583.2, 65915(c), 66300.5, and 66300.6, as amended.
Section 9. Section 24.08.1345 of Chapter 24.08 of the Santa Cruz Municipal Code regarding Establishing Low- and Moderate-Income Occupancy is hereby amended to read as follows:
24.08.1345 ESTABLISHING LOW- AND MODERATE-INCOME OCCUPANCY.
1. Low- and moderate-income occupancy is established as follows:
a. Occupied Units.
(1) At the time of application, the applicant shall file a list of names and unit numbers of the tenants who occupied the units during the previous year. (2) The applicant shall arrange to have the Public Housing Authority (PHA) verify income of tenants for the purpose of establishing low- and moderate-income tenancy. (3) In the event that a tenant’s income is not verified, the assumption shall be made that the unit is occupied by a low- or moderate-income household. b. Vacant Units.
(1) The application shall supply the names and addresses of the last tenants that had occupied each dwelling unit within two years prior to the date of submission of the application for the residential demolition/conversion authorization permit. (2) The applicant shall arrange to have the Public Housing Authority (PHA) verify the income of said tenants for the purpose of establishing low- and moderate-income housing units. (3) In the event that the most recent tenant cannot be located or identified, the assumption shall be made that the unit was occupied by a low- and/or moderate-income household. (4) Mitigation measures for demolition or conversion of use of low- and moderate-income housing units shall be based upon the number of units determined to be low- and moderateincome housing units. c. Notwithstanding subsections (1)(a) and (b), the applicant may stipulate that one or more of the units are or have been occupied by low- or moderate-income households.
Section 10. Section 24.08.1350 of Chapter 24.08 of the Santa Cruz Municipal Code regarding Relocation Assistance is hereby amended to read as follows:
24.08.1350 RELOCATION ASSISTANCE.
All low- or moderate-income households displaced by demolition or conversion of use shall receive relocation assistance as required by this section or by state law including but not limited to Government Code Section 66300.6, as amended, whichever amount is greater. For purposes of
36.14 this section, a residential dwelling unit shall be occupied by a person or family of low or moderate income if a low- or moderate-income household currently occupies or had occupied the dwelling unit within two years prior to the date of submission of the application for the residential demolition/conversion authorization permit.
Relocation assistance shall be defined as two months’ rent. Other arrangements agreeable to the tenant, as evidenced by a written agreement between the tenant and the demolition/conversion authorization permit applicant may be allowed; however, in no case shall the agreement allow for no relocation assistance to be provided, nor can the permit applicant influence or threaten the tenant in any manner to agree to any alternative arrangement that would be less favorable to the tenant than the assistance that is legally required. Payment of relocation assistance or other agreed-upon assistance shall be made by the applicant to eligible tenants prior to submittal of the building permit for the replacement project or use, or at the time of notification of termination of tenancy, whichever occurs first. If the eligible tenancy was terminated prior to the date of application of the residential demolition authorization permit, then the tenant shall still receive relocation assistance, which shall be made prior to issuance of the building permit for the replacement project or use.
Section 11. Section 24.08.1360 of Chapter 24.08 of the Santa Cruz Municipal Code regarding Replacement Housing Requirements is hereby amended to read as follows:
24.08.1360 REPLACEMENT HOUSING REQUIREMENTS.
Development projects shall comply with the requirements of this section as well as those contained in California State law governing replacement housing units, including but not limited to Government Code Sections 65583.2, 65915(c), 66300.5, and 66300.6. For each provision of the regulations, when both this code and the California Government Code apply, the stricter of the two provisions shall be applied to the project.
1. Replacement housing must be provided by the applicant when demolition or conversion of use of three or more dwelling units or single-room occupancy living units occupied by households of low or moderate income occurs. Replacement requirements shall be based on the total number of bedrooms contained within all low- or moderate-income units to be demolished or converted.
a. The basic requirement is that fifty percent of all low- or moderate-income bedrooms demolished or converted shall be replaced either on site, or elsewhere in the city of Santa Cruz, or a combination of both.
b. Inclusionary rental units located on the same site may also be counted as replacement units, utilizing the more restrictive income and rent requirements for these units. Off-site rental or ownership inclusionary units shall not be used to fulfill replacement unit requirements.
36.15 c. In the R-T Districts, one hundred percent of all low- or moderate-income bedrooms demolished or converted shall be replaced either on site, or elsewhere in the city of Santa Cruz, or a combination of both.
d. In the commercial C Districts, one hundred percent of all low- or moderate-income bedrooms demolished or converted shall be replaced either on site, or elsewhere in the city of Santa Cruz, or a combination of both.
e. The basic fifty percent bedroom replacement requirement represents a determination of financial feasibility: that being, a greater percentage would render most projects economically infeasible. In the R-T Districts, however, due to greater allowable densities, the one hundred percent bedroom replacement requirement is determined to be feasible. In the C Districts, due to greater allowable use intensities resulting from the possibility to do both commercial and residential development without one reducing the other, the one hundred percent bedroom replacement requirement is determined to be feasible.
Section 12. Section 24.08.1362 of Chapter 24.08 of the Santa Cruz Municipal Code regarding Advance Replacement Housing Proposal is hereby amended to read as follows:
24.08.1362 ADVANCE REPLACEMENT HOUSING PROPOSAL.
Replacement housing as required in Section 24.08.1360 may be provided in advance of actual demolition of a structure, except as otherwise required by state law. Conditions for the advance replacement shall be set forth in an advance replacement housing proposal approved as part of a demolition/authorization permit or separate development agreement. Conditions for advance replacement shall address:
1. Procedure to notify and offer advance housing to existing tenants of the structure to be demolished or converted.
2. Project timetable and identification of future project(s) that advance replacement housing will be credited toward.
Section 13. Section 24.08.1370 of Chapter 24.08 of the Santa Cruz Municipal Code regarding InLieu Fees is hereby amended to read as follows:
24.08.1370 IN-LIEU FEES.
1. As an alternative to fulfilling the replacement housing requirements of Section 24.08.1360 or 24.08.1362, and except as limited by state law, in-lieu fees can be paid for up to twenty-five percent in the R-T Districts and up to fifty percent in other districts of the total number of low- or moderate-income bedrooms to be provided to meet the replacement housing requirement. The remaining seventy-five percent or fifty percent bedroom replacement requirement shall be actually constructed or caused to be constructed by the applicant. However, where replacement housing is being required due to the provisions of Section 24.08.1330(5), pertaining to demolition or conversion of single-family and duplex units, in-lieu fees may be paid to meet one hundred percent of the replacement housing requirement.
36.16 2. The in-lieu fees shall be applied to programs that would add to the affordable housing stock through the construction of new housing units or the rehabilitation of existing housing units that were previously substandard and uninhabited or occupied by above-moderate income households. In-lieu fees shall not be used for administration of such programs.
3. Replacement housing in-lieu fees shall be determined in the same manner as inclusionary housing in-lieu fees. For purposes of determining unit sizes, the average number of bedrooms per unit shall be used. For purposes of determining the average number of square feet in a unit, the average square footage for those units shall be used up to a maximum square footage as follows:
six hundred fifty square feet for a single room occupancy unit, studio, or one-bedroom unit; nine hundred square feet for a two-bedroom unit; one thousand four hundred square feet for a threeto eight-bedroom unit.
4. Replacement housing built with in-lieu fees shall, in aggregate, provide the same level of housing as would otherwise have been required, and shall be provided and available for use within three years from the date upon which work commenced on the conversion or demolition, or if no new or rehabilitated units are available within three years, units shall be provided in the first available affordable housing project that is constructed in the city.
Section 14. Section 24.08.1380 of Chapter 24.08 of the Santa Cruz Municipal Code regarding Exception is hereby amended to read as follows:
24.08.1380 EXCEPTION.
This part shall not apply to any building when the building official or fire marshal determines that the building is dangerous to the health and safety of the building occupants, neighbors, or the public, and that the demolition of the building is required because of such health and safety concerns. The building official or the fire marshal shall set forth in writing the reasons for their determination that the building is dangerous to the health and safety of the building occupants, neighbors, or the public. However, this exception shall not apply if the dangerous health and safety condition(s) are the result of lack of maintenance of the building. This section has no impact on the relocation assistance requirements stipulated in Title 21 or on relocation assistance, replacement housing, and right of first refusal requirements under California state law, including but not limited to Government Code Sections 65583.2, 65915(c), 66300.5, and 66300.6, as amended.
Section 15. The City Council finds and determines that the adoption of this ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) as a project that can be seen with certainty to have no possibility for causing a significant effect on the environment.
Section 16. 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.
36.17 Section 17. This ordinance shall take effect and be in full force thirty (30) days after final adoption.
PASSED FOR PUBLICATION this 18th day of November 2025, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
PASSED FOR FINAL ADOPTION this 9th day of December 2025, 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. 2025-XX and
that it has been published or posted
in accordance with the Charter of
the City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator
36.18 ORDINANCE NO. 2025-XX
AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING SANTA CRUZ MUNICIPAL CODE CHAPTER 21.03 – RELOCATION ASSISTANCE FOR DISPLACED TENANTS AND CHAPTER 24.08, PART 14: RESIDENTIAL
DEMOLITION/CONVERSION AUTHORIZATION PERMITS TO IMPLEMENT
AMENDMENTS RELATED TO DISPLACEMENT OF TENANTS DUE TO
ENFORCEMENT OF UNSAFE LIVING CONDITIONDS AND DUE TO DEMOLITION OF HOUSING. (CEQA: EXEMPT PURSUANT TO CEQA GUIDELINES SECTION 15061(b)(3) AS A PROJECT THAT WITH CERTAINTY HAS NO POSSIBILITY FOR CAUSING A SIGNIFICANT EFFECT ON THE ENVIRONMENT.)
WHEREAS, the City of Santa Cruz 2023-2031 Housing Element (Housing Element) was adopted in December 2023 by the Santa Cruz City Council and subsequently accepted by the state Department of Housing and Community Development; and
WHEREAS, Objectives 5.5b and 6.4b of the Housing Element require the City to adopt anti-displacement policies and to align with state law the regulations associated with right of first refusal for lower income households displaced by demolition; and WHEREAS, the City adopted the Relocation Assistance Ordinance, Chapter 21.03 of the Santa Cruz Municipal Code, in 1991 to address the extended or permanent displacement of tenants resulting from hazardous, substandard, or structurally deficient housing conditions; the city recognizes that relocation assistance may be necessary in cases of temporary displacement, where tenants are required to vacate their residences for a limited period while repairs or corrections are made to the property, and that the amount of relocation assistance should be commensurate with the displacement period; and
WHEREAS, the City thereafter amended Chapter 21.03 on five additional occasions through Ordinance No. 91-43, Ordinance No. 92-30, Ordinance No. 2001-12, Ordinance No. 2018.02 and Ordinance No. 2018.20; and
WHEREAS, the City adopted municipal code Chapter 24.08, Part 14, Residential Demolition/Conversion Authorization Permits and subsequently amended this Part in 2016, 2019, 2022, and 2024; and
WHEREAS, at its October 2, 2025 meeting, the City Planning Commission reviewed the proposed amendments to Title 24 of 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 as proposed to be amended; and
WHEREAS, at its October 2, 2025 meeting the City Planning Commission passed a motion that recommended the City Council approve the determination under the California Environmental Quality Act and approve the proposed amendments to Title 24 of the Santa Cruz Municipal Code.
36.19 NOW THEREFORE BE IT ORDAINED by the City of Santa Cruz as follows:
Section 1. Section 21.03.020 of Chapter 21.03 of the Santa Cruz Municipal Code regarding Definitions is hereby amended to read as follows:
21.03.020 DEFINITIONS.
For purposes of this chapter, the following words and phrases, whenever used, shall be construed as defined in this section:
(a) “Fair market value” shall mean either the fair market value rent for a unit of comparable size, as established by the most current Federal Department of Housing and Urban Development schedule of fair market rents, or the tenant’s actual rent at the time of relocation, whichever is greater. If only a portion of the property is affected (for instance, one unit of a property that contains two units, or an additional bedroom added outside of habitable living space) the fair market value will be calculated on the bedrooms and/or rent of the affected areas.
(b) “Displacement” shall mean either:
(1) When tenant(s) is/are required to vacate structures rented for residential purposes due to unsafe or hazardous living conditions, as defined below, or due to illegal use of the structure as a residence. These types of Displacement will fall into three categories. (A) “Temporary displacement” shall mean a displacement of zero to fourteen days.
(B) “Short-term displacement” shall mean a displacement of fifteen to 59 days.
(C) “Long-term displacement” shall mean a displacement of 60 days or more.
OR
(2) When tenant(s) is/are forced to relocate due to a large rent increase. (a)(c) “Large rent increase” shall mean a rent increase of more than five percent in one year or cumulatively more than seven percent in any two consecutive years (seven percent over two consecutive years includes compound interest; e.g., for a maximum five percent increase in one year followed by a one-and-nine-tenths percent increase in the following year). (b)(d)“Relocation assistance” shall mean a relocation payment(s), suspension of rents due while the tenant does not occupy the property, and the right of first refusal to reoccupy a residential structure, as defined in this section, for tenant(s) affected by displacement.
36.20 (c)(e)“Relocation payment” shall mean:
(1) For tenants who are required to vacate structures rented for residential purposes due to unsafe or hazardous living conditions, or due to illegal use of the structure as a residence:,
(A) And where the property owner has established that there will be only a temporary displacement, the immediate payment of one month’s fair market value and an additional payment of $300 to each adult tenant to allow for additional costs related to the displacement.
(B) And where the property owner has established there will only be a shortterm displacement, the immediate payment of three months’ fair market value rent for a unit of comparable size, as established by the most current Federal Department of Housing and Urban Development schedule of fair market rents, or three months of the tenant’s actual rent at the time of relocation, whichever is greater, or and an additional payment of $300 to each adult tenant to allow for additional costs related to the displacement. (C) And where a temporary displacement has turned into a short-term displacement, the payment of an additional two months’ fair market value within three days of the change in the term of displacement.
(D) And where a short-term displacement has turned into a long-term displacement, the payment of one additional one month’s fair market value within three days of the change in the term of displacement.
(E) And where a long-term displacement is anticipated, or the owner has not established there will be a shorter displacement, the immediate payment of four months’ fair market value and an additional payment of $300 to each adult tenant to allow for additional costs related to the displacement.
(2) For tenant(s) affected by any displacement, an agreement for other arrangements ofmade between the property owner and the tenant(s) which provides equal benefits which are agreeable to the tenant(s) as evidenced by a written agreement between the tenant(s) and the property owner may substitute for the payment(s) required in
21.03.020(e)(1) or (e)(3). Such agreement shall at a minimum contain each of the following components:
(A) The names of the current occupantstenant(s) of the unit being vacated, and an indication of who is considered the head of household therein; (B) The address and the number of the unit from which the tenant(s) is/are being displaced;
(C) A statement indicating the amount of relocation payment to which the tenant(s) is/are entitled, according to the most current Federal Department of Housing and Urban Development schedule of based on the fair market rentvalue for the size of the subject unit;
(D) A statement that the tenant(s) has/have waived the right to such relocation
36.21 payment, and describing what, if any, alternative arrangements of equal benefit the property ownerlandlord has agreed to provide the tenant(s), which is acceptable to the tenant(s) in lieu of the lump sum relocation payment(s) set forth in
21.03.020(e)(1) or (e)(3); and
(E) The address, if known, of the location to which the tenant(s) plans to move. (2) Where a tenant is required to vacate a structure with less than thirty days’ notice, relocation payment shall also include the immediate payment of one additional month’s fair market value rent for a unit of comparable size, as established by the most current Federal Department of Housing and Urban Development schedule of fair market rents, or the provision of alternative, safe and legal housing for thirty days after the tenant vacates, whichever the tenant prefers.
(3) For tenants who relocate due to a large rent increase, the immediate payment of two months of the tenant’s actual rent, that was in effect prior to the effective date of the large rent increase, at the time of relocation or sooner if applicable pursuant to Section
21.03.030(a)(2), or other arrangements of equal benefit which are agreeable to the tenant as evidenced by a written agreement between the tenant and the property owner. Such agreement shall at a minimum contain each of the following components:within twentyone calendar days after a tenant gives the owner notice of intent to vacate due to a large rent increase or before the tenant(s) vacate the property, whichever is soonest. (A) The names of the current occupants of the unit being vacated, and an indication of who is considered the head of household therein; (B) The address and the number of the unit from which the tenant is being displaced;
(C) A statement indicating the amount of relocation payment to which the tenant is entitled, according to the most current lease or rental agreement; (D) A statement that the tenant has waived the right to such relocation payment, and describing what, if any, alternative arrangements of equal benefit the landlord has agreed to provide the tenant, which is acceptable to the tenant in lieu of relocation payment; and
(E) The address, if known, of the location to which the tenant plans to move. (4) “Immediate payment” of any relocation payment shall mean payment delivered to the tenant prior to the time the tenant vacates the unit or within one day thereafter. (5) A relocation payment shall be a separate requirement and obligation payable to a tenant, and it is in addition to the refund of any security deposit pursuant to California
36.22 Civil Code Section 1950.5 and/or the payment of interest accrued on said security deposit pursuant to Chapter 21.02.
(d)(f) “Right of first refusal” shall mean the right of a tenant to reoccupy a residential structure on the site formerly occupied by said tenant, once the residential structure is repaired and becomes habitable, or once housing is redeveloped on the site. (g) “Tenant” shall mean each person who occupies a structure for residential purposes with the knowledge and/or consent of the property owner and/or the property owner’s agent.
(h) “Unsafe or hazardous” living condition is an issue identified by the city, and posted to the property, stating that the dwelling or portion of the dwelling is unfit for human habitation, creating the need for the tenant(s) to vacate. Examples may include, but are not limited to, structural deficiencies that threaten safety, inadequate escape/rescue access for sleeping quarters, or leaking gas lines.
Section 2. Section 21.03.030 of Chapter 21.03 of the Santa Cruz Municipal Code regarding Relocation Assistance Requirements is hereby amended to read as follows:
21.03.030 RELOCATION ASSISTANCE REQUIREMENTS.
(a) Relocation Payment DueAssistance. The owner of any structure rented for residential purposes shall provide relocation assistance and make relocations payment(s)directly to each tenant a relocation payment, as definedspecified in Section
21.03.020 as follows:, to the tenant(s) that are required to vacate:
(1) Within one week of the notice to vacate or prior to the time the tenant vacates the unit, whichever comes first, for any notice of eviction or other order requiring a tenant to vacate any structure rented for residential purposes due to unsafe or hazardous living conditions; or due to illegal use of the structure as a residence; or (2) Within twenty-one calendar days vacate after a tenant gives the owner notice of intent to vacate due to a large rent increase. The relocation assistance shall be paid in the same manner and to the same individual(s) from whom rent payment has been received, or as otherwise agreed by all parties. (b) No refund on relocation payment(s) is due to the property owner, including when displacement is shorter than anticipated, unless one of the exemptions of
21.03.040 applies.
(cb) Proof of Compliance. In order to provide proof of compliance by the property owner with the relocation payment requirements due to unsafe or hazardous living conditions or due to illegal use of the structure as a residence, a copy of the check or money order provided to the tenant(s), and a receipt signed by the tenant(s), or a copy of the written agreement
36.23 executed by the property owner and the tenant(s) providing for and describing alternative arrangements under 21.03.020(e)(2), shall be provided to the code compliance specialist of the city of Santa Cruz department of planning and community development within five days of the date that the unit is vacated by the tenant(s).
(dc) Right of First Refusal. Any tenant(s) evicted or required to vacate any residential structure due to unsafe or hazardous living conditions or due to illegal use of the structure as a residence shall be given the right of first refusal to reoccupy a residential structure on the site once said structure becomes habitable, or once a replacement housing structure is redevelopedconstructed on the same site.
(1) The owner of said structure shall, at the time the tenant(s) vacates, provide written notice advising the tenant(s) of the right of first refusal. Said notice shall include a current address and telephone number which can be used by the tenant(s) to contact the owner.
(2) It shall be the tenant’s responsibility to provide the owner of said structure with contact information consisting of the tenant’s current address and/or telephone number to be used for future notification, and to provide updated contact information to the owner upon change of said information.
(3) Thereafter, when said structure, or a redeveloped structure on the same site, becomes habitable becomes available, the property owner shall give written notice to the tenant(s) advising said tenant that the structure is ready for occupancy. Said written notice shall be made by certified mail, return receipt requested. If there are multiple tenants with this right, and they do not intend to live together, the property owner’s notice shall advise that it is the first tenant that confirms acceptance shall have the right to reoccupy. If the accepting tenant thereafter fails to reoccupy, the landlord must thereafter offer the right to reoccupy to the other tenant(s) again. (4) If the property owner cannot locate a previous tenant(s) after two attempts over a period of two weeks, the property owner shall be deemed to have complied with the right of first refusal provision of this chapter, and the tenant’s right of first refusal shall thereafter be forfeited.
(5) Owner shall offer the structure, or a redeveloped structure on the same site, at same rental rate that was in effect at the time the tenant(s) vacated the property and the time during which the property was vacated will be tolled for application of rent increase(s) under this chapter and under California Civil Code 1947.12 or its successor law.
(6) If an Owner fails to offer the tenant(s) first refusal and re-rents the property, the tenant(s) shall be entitled to the payment of an additional four months' fair market value. (7) With respect to the first right of refusal, where the provisions of state and local law conflict, the provision that provides the greater protections to the tenant(s) shall take precedent.
36.24 Section 3. Section 21.03.040 of Chapter 21.03 of the Santa Cruz Municipal Code regarding Exceptions is hereby amended to read as follows:
21.03.040 EXCEPTIONS.
(a) The following tenant(s) evicted or required to vacate as a result of unsafe or hazardous living conditions or illegal use, shall not be entitled to receive relocation assistance from the property owner:
(1) Any tenant evicted or required to vacate as a result of unsafe or hazardous living conditions or illegal use, who is then in default of rent (except tenants withholding rent pursuant to state law for correction of unsafe or hazardous conditions);, (2) Any tenant who refuses to promptly vacate the property after the portion of the structure they have been occupying is posted as unsafe or hazardous, unless there is alternative agreement under section 21.03.020(e)(2) allowing occupancy of a different part of the property;
(3) Any tenant who refuses to vacate after the timely payment of the relocation payment, unless there is alternative agreement under section 21.03.020(e)(2); or (4) Any tenant who has caused or substantially contributed to the condition(s) giving rise to the unsafe or hazardous living condition(s) of the propertyabatement, shall not be entitled to receive relocation assistance from the property owner. (b) Property owners are not required to provide relocation assistance to any tenant evicted or required to vacate a residential structure that becomes unsafe or hazardous due to recent events that are beyond the control of the property owner. (c) For tenants who relocate due to a large rent increase, tenant(s) shall provide such notice of intent to vacate no later than sixty days after the effective date of such increase. If such notice is not given by tenant within sixty days of effective date of rent increase, tenant is understood to have accepted such increase and is no longer eligible to claim relocation assistance from the property owner.
(d) Properties owned by the City are not subject to relocation assistance. (e) Units governed by deed restrictions for affordable housing are not subject to the large rental increase provisions of this chapter.
Section 4. Section 21.03.050 of Chapter 21.03 of the Santa Cruz Municipal Code regarding Rent Increases During Repairs is hereby amended to read as follows:
21.03.050 RENT INCREASES DURING REPAIRS.
(a) In those cases where the owner has been issued a notice and order by the city to
36.25 repair or remedy unsafe or hazardous living conditions or illegal use of residential rental property and where said repairs or remediation does not cause displacementrequire the relocation of the tenants, thereby allowing the tenants to remain in residence while said repairs are undertaken, it shall be unlawful for a property owner to increase the amount of rent for any structure rented for residential purposes during the time that repairs are being made pursuant to the city notice and order requiring said repairs. No rent increase shall thereafter be levied until the city has issued a notice of correctioncertificate of passed inspection verifying the fact that said repairs or remediation has been completed. (b) In those cases where a notice and order has been issued to a property owner by the city to repair or remedy unsafe or hazardous living conditions or illegal use of residential rental property, and where said notice and order has been issued by the city within ninety days of a rent increase levied by the property owner upon the tenants of the property, and where said repairs or remediation does not cause displacementrequire the relocation of the tenants, thereby allowing tenants to remain in residence while said repairs are undertaken, the property owner shall be required to roll back rents to the rates of rent charged by the landlord prior to the subject rent increase. In addition, all excess rents collected by the property owner between the date of the rent increase and the date of the notice and order shall be refunded to the tenants. Thereafter, it shall be unlawful for the property owner to increase the amount of rent during the time that said repairs and remediation are being made pursuant to the subject notice and order requiring said repairs and no rent increase shall be levied until the city has issued a certificate of passed inspectionnotice of correction verifying the fact that said repairs or remediation has been completed.
Section 5. Section 21.03.060 of Chapter 21.03 of the Santa Cruz Municipal Code regarding Violation and Penalty is hereby amended to read as follows:
21.03.060 VIOLATION AND PENALTY.
Any violation of this chapter shall be deemed an infraction for the first offense. Any subsequent violation occurring within six months from the first offense shall be deemed a misdemeanor. In addition to any other available remedies and penalties, said offense(s) shall be subject to all of the remedies and penalties provided for in Title 4. In accordance with Section 4.12.030, an administrative civil penalty of up to two thousand five hundred dollars per day may be assessed for each day during which a property owner or manager fails to provide relocation assistance required by Section 21.03.030 following issuance of a written order or notice of violation by the city. Nothing herein shall limit the right of a tenant to enforce the obligations provided herein by civil action or by any other legal remedy which may be available to said tenant.
Section 6. Section 21.03.070 of Chapter 21.03 of the Santa Cruz Municipal Code regarding Private Right of Action is hereby amended to read as follows:
21.03.070 PRIVATE RIGHT OF ACTION.
36.26 The city maintains discretion to have any violation contained in this chapter to be enforced through civil matters rather than by the city. Further, aAny person whose rights pursuant to this chapter have been violated shall have the right to file an action for injunctive relief and/or damages. Whoever is found to have violated this chapter shall be subject to appropriate injunctive relief and shall be liable for damages, costs and reasonable attorney’s fees. Treble damages shall be awarded for willful failure to comply with the payment obligation established by this chapter. Any action pursuant to this section shall be a civil matter and adjudicated through civil court.
Section 7. Section 24.08.1320 of Chapter 24.08 of the Santa Cruz Municipal Code regarding General Provisions is hereby amended to read as follows:
24.08.1320 GENERAL PROVISIONS.
California state law includes strict standards for the demolition of housing in an effort to ensure that existing density is not reduced and that housing that is currently rented to lower income tenants is maintained as affordable housing within new development. Housing demolition and housing development projects mustshall comply with the requirements of this Partsection as well as thoseapplicable requirements contained in California state law governing relocation assistance, and replacement housing units, and right of first refusal, including but not limited to California Government Code Sections 65583.2, 65915(c), 65589.566300.5, and 66300.6 and 66300, as amended. For each provision of the regulations, when both this code and the California Government Code apply, whichever has the stricter requirementss, such as the higher number of replacement units, higher number of bedrooms, and/or greater amount of relocation assistance, shall take precedence. A residential demolition/conversion authorization permit shall be required prior to issuance of a demolition permit for any residential dwelling unit, including any accessory dwelling unit or junior accessory dwelling unit, or single-room occupancy living unit. A residential unit that is replaced by a conversion accessory dwelling unit shall not be required to obtain a residential demolition authorization permit.
Section 8. Section 24.08.1340 of Chapter 24.08 of the Santa Cruz Municipal Code regarding Demolition or Conversion of Dwelling Groups, Multiple Dwellings, and Single-Room Occupancy Living Units is hereby amended to read as follows:
24.08.1340 DEMOLITION OR CONVERSION OF DWELLING GROUPS, MULTIPLE DWELLINGS, AND SINGLE-ROOM OCCUPANCY LIVING UNITS.
The zoning boardzoning administrator may issue a demolition/conversion authorization permit for the demolition or conversion of a multifamily structure, dwelling groups, multiple dwellings and single-room occupancy living units upon holding a public hearing and finding that:
36.27 1. The project to replace the demolished or converted units has been approved and an appropriate building permit has been issued; unless a hardship can be documented rendering this finding inappropriate;
2. The demolition or conversion meets all applicable requirements for relocation assistance, replacement housing, and right of first refusal required by Sections 24.08.1350 through
24.08.1370 and state law, including but not limited to California Government Code Sections 65583.2, 65915(c), 66300.5, and 66300.6, as amended.The proposed demolition or conversion of use will not have a substantial adverse impact on housing opportunities for lowand moderate-income households; or
3. If the proposed demolition or conversion of use will have a substantial adverse impact on housing opportunities for low- and moderate-income households, adequate mitigation measures will be undertaken. Such mitigation measures include relocation assistance, and may include construction of replacement housing, in-lieu fees, other measures, or a combination of the above as provided by council resolution. For purposes of this section, a residential dwelling unit shall be occupied by a person or family of low or moderate income, if a low- or moderate-income household currently occupies or had occupied the dwelling unit within one year prior to the date of submission of the application for the demolition/conversion permit; or, in addition, if substantial evidence exists that a low- or moderate-income household had occupied the unit within two years of the date of the submission of the application for the demolition/conversion authorization permit and had been evicted for the purpose of avoiding the requirements of this section.
Section 9. Section 24.08.1345 of Chapter 24.08 of the Santa Cruz Municipal Code regarding Establishing Low- and Moderate-Income Occupancy is hereby amended to read as follows:
24.08.1345 ESTABLISHING LOW- AND MODERATE-INCOME OCCUPANCY.
1. Low- and moderate-income occupancy is established as follows:
a. Occupied Units.
(1) At the time of application, the applicant shall file a list of names and unit numbers of the tenants who occupied the units during the previous year. (2) The applicant shall arrange to have the Public Housing Authority (PHA) verify income of tenants for the purpose of establish-ing low- and moderate-income tenancy. (3) In the event that a tenant’s income is not verified, the assumption shall be made that the unit is occupied by a low- orand moderate-income household. (4) Mitigation measures for demolition or conversion of use of low- and moderate-income housing units shall be based upon the number of units occupied by low- and moderate-income households.
36.28 b. Vacant Units.
(1) The application shall supply the names and addresses of the last tenants of each vacant unitthat had occupied each dwelling unit within two years prior to the date of submission of the application for the residential demolition/conversion authorization permit. (2) The applicant shall arrange to have the Public Housing Authority (PHA) verify the income of said tenants for the purpose of establishing low- and moderate-income housing units. (3) In the event that the most recent tenant cannot be located or identified, the assumption shall be made that the unit was occupied by a low- and/or moderate-income household. (4) Mitigation measures for demolition or conversion of use of low- and moderate-income housing units shall be based upon the number of units determined to be low- and moderateincome housing units. c. Notwithstanding subsections (1)(a) and (b), the applicant may stipulate that one or more of the units are or have been occupied by low- or moderate-income households.
Section 10. Section 24.08.1350 of Chapter 24.08 of the Santa Cruz Municipal Code regarding Relocation Assistance is hereby amended to read as follows:
24.08.1350 RELOCATION ASSISTANCE.
All low- or moderate-income households displaced by demolition or conversion of use shall receive relocation assistance as required by this section or by state law including but not limited to Government Code Section 66300.6, as amended, whichever amount is greater. For purposes of this section, a residential dwelling unit shall be occupied by a person or family of low or moderate income if a low- or moderate-income household currently occupies or had occupied the dwelling unit within two years prior to the date of submission of the application for the residential demolition/conversion authorization permit.
Relocation assistance shall be defined as two months’ rent. Other arrangements agreeable to the tenant, as evidenced by a written agreement between the tenant and the demolition/conversion authorization permit applicant may be allowed; however, in no case shall the agreement allow for no relocation assistance to be provided, nor can the permit applicant influence or threaten the tenant in any manner to agree to any alternative arrangement that would be less favorable to the tenant than the assistance that is legally required. Payment of relocation assistance or other agreed-upon assistance shall be made by the applicant to eligible tenants prior to submittal of the building permit for the replacement project or use, or at the time of notification of termination of tenancy, whichever occurs first. If the eligible tenancy was terminated prior to the date of application of the residential demolition authorization permit, then the tenant shall still receive relocation assistance, which shall be made prior to issuance of the building permit for the replacement project or use.
36.29 Section 11. Section 24.08.1360 of Chapter 24.08 of the Santa Cruz Municipal Code regarding Replacement Housing Requirements is hereby amended to read as follows:
24.08.1360 REPLACEMENT HOUSING REQUIREMENTS.
Housing dDevelopment projects mustshall comply with the requirements of this section as well as those contained in California State law governing replacement housing units, including but not limited to Government Code Sections 65583.2, 65915(c), 65589.566300.5, and 66300.6 and 66300. For each provision of the regulations, when both this code and the California Government Code apply, the stricter of the two provisions shall be applied to the project.
1. Replacement housing must be provided by the applicant when demolition or conversion of use of three or more dwelling units or single-room occupancy living units occupied by households of low or moderate income occurs. Replacement requirements shall be based on the total number of bedrooms contained within all low- or moderate-income units to be demolished or converted.
a. The basic requirement is that fifty percent of all low- or moderate-income bedrooms demolished or converted shall be replaced either on site, or elsewhere in the city of Santa Cruz, or a combination of both.
b. Inclusionary rental units located on the same site may also be counted as replacement units, utilizing the more restrictive income and rent requirements for these units. Off-site rental or ownership inclusionary units shall not be used to fulfill replacement unit requirements. c. In the R-T Districts, one hundred percent of all low- or moderate-income bedrooms demolished or converted shall be replaced either on site, or elsewhere in the city of Santa Cruz, or a combination of both.
d. In the commercial C Districts, one hundred percent of all low- or moderate-income bedrooms demolished or converted shall be replaced either on site, or elsewhere in the city of Santa Cruz, or a combination of both.
e. The basic fifty percent bedroom replacement requirement represents a determination of financial feasibility: that being, a greater percentage would render most projects economically infeasible. In the R-T Districts, however, due to greater allowable densities, the one hundred percent bedroom replacement requirement is determined to be feasible. In the C Districts, due to greater allowable use intensities resulting from the possibility to do both commercial and residential development without one reducing the other, the one hundred percent bedroom replacement requirement is determined to be feasible.
Section 12. Section 24.08.1362 of Chapter 24.08 of the Santa Cruz Municipal Code regarding Advance Replacement Housing Proposal is hereby amended to read as follows:
24.08.1362 ADVANCE REPLACEMENT HOUSING PROPOSAL.
36.30 Replacement housing as required in Section 24.08.1360 may be provided in advance of actual demolition of a structure, except as otherwise required by state law. Conditions for the advance replacement shall be set forth in an advance replacement housing proposal approved as part of a demolition/authorization permit or separate development agreement. Conditions for advance replacement shall address:
1. Procedure to notify and offer advance housing to existing tenants of the structure to be demolished or converted.
2. Project timetable and identification of future project(s) that advance replacement housing will be credited toward.
Section 13. Section 24.08.1370 of Chapter 24.08 of the Santa Cruz Municipal Code regarding InLieu Fees is hereby amended to read as follows:
24.08.1370 IN-LIEU FEES.
1. As an alternative to fulfilling the replacement housing requirements of Section 24.08.1330 or 24.08.1360 or 24.08.1362, and except as limited by state law, in-lieu fees can be paid for up to twenty-five percent in the R-T Districts and up to fifty percent in other districts of the total number of low- or moderate-income bedrooms to be provided to meet the replacement housing requirement. The remaining seventy-five percent or fifty percent bedroom replacement requirement shall be actually constructed or caused to be constructed by the applicant. However, where replacement housing is being required due to the provisions of Section 24.08.1330(5), pertaining to demolition or conversion of single-family and duplex units, in-lieu fees may be paid to meet one hundred percent of the replacement housing requirement.
2. The in-lieu fees shall be applied to programs that would add to the affordable housing stock through the construction of new housing units or the rehabilitation of existing housing units that were previously substandard and uninhabited or occupied by above-moderate income households. In-lieu fees shall not be used for administration of such programs.
3. Replacement housing in-lieu fees shall be determined in the same manner as inclusionary housing in-lieu fees. For purposes of determining unit sizes, the average number of bedrooms per unit shall be used. For purposes of determining the average number of square feet in a unit, the average square footage for those units shall be used up to a maximum square footage as follows:
six hundred fifty square feet for a single room occupancy unit, studio, or one-bedroom unit; nine hundred square feet for a two-bedroom unit; one thousand four hundred square feet for a threeto eight-bedroom unit.
4. Replacement housing built with in-lieu fees shall, in aggregate, provide the same level of housing as would otherwise have been required, and shall be provided and available for use within three years from the date upon which work commenced on the conversion or demolition, or if no new or rehabilitated units are available within three years, units shall be provided in the first available affordable housing project that is constructed in the city.
36.31 Section 14. Section 24.08.1380 of Chapter 24.08 of the Santa Cruz Municipal Code regarding Exception is hereby amended to read as follows:
24.08.1380 EXCEPTION.
This part shall not apply to any building when the building official or fire marshal determines that the building is dangerous to the health and safety of the building occupants, neighbors, or the public, and that the demolition of the building is required because of such health and safety concerns. The building official or the fire marshal shall set forth in writing the reasons for their determination that the building is dangerous to the health and safety of the building occupants, neighbors, or the public. However, this exception shall not apply if the dangerous health and safety condition(s) are the result of lack of maintenance of the building. This section has no impact on the relocation assistance requirements stipulated in Title 21 or on relocation assistance, replacement housing, and right of first refusal requirements under California state law, including but not limited to Government Code Sections 65583.2, 65915(c), 66300.5, and 66300.6, as amended.
Section 15. The City Council finds and determines that the adoption of this ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) as a project that can be seen with certainty to have no possibility for causing a significant effect on the environment.
Section 16. 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 17. This ordinance shall take effect and be in full force thirty (30) days after final adoption.
PASSED FOR PUBLICATION this 18th day of November 2025, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
36.32 PASSED FOR FINAL ADOPTION this 9th day of December 2025, 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. 2025-XX and
that it has been published or posted
in accordance with the Charter of
the City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator
36.33 ORDINANCE NO. 2025-XX
AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING SANTA CRUZ MUNICIPAL CODE SECTION 24.04.130 – DECISION-MAKING BODY WITH FINAL
AUTHORITY ON APPLICATION APPROVAL RELATED TO THE DECISION-MAKING BODY TO AUTHORIZE THE DEMOLITION OF THREE OR MORE UNITS. (CEQA:
EXEMPT PURSUANT TO CEQA GUIDELINES SECTION 15061(b)(3) AS A PROJECT
THAT WITH CERTAINTY HAS NO POSSIBILITY FOR CAUSING A SIGNIFICANT EFFECT ON THE ENVIRONMENT.)
WHEREAS, the City of Santa Cruz 2023-2031 Housing Element (Housing Element) was adopted in December 2023 by the Santa Cruz City Council and subsequently accepted by the state Department of Housing and Community Development; and
WHEREAS, Objectives 5.5b and 6.4b of the Housing Element require the City to adopt additional anti-displacement policies and to align with state law the right of first refusal for lower income households displaced by demolition; and
WHEREAS, at its October 2, 2025 meeting, the City Planning Commission reviewed the proposed amendments to Title 24 of 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 as proposed to be amended; and WHEREAS, state law restricts review of housing development projects to objective standards and includes specific, objective provisions for tenant displacement due to demolition; and
WHEREAS, at its October 2, 2025 meeting, the Santa Cruz Planning Commission considered the 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 October 2, 2025 meeting the City Planning Commission passed a motion that recommended the City Council approve the determination under the California Environmental Quality Act and approve the proposed amendments to Title 24 of the Santa Cruz Municipal Code.
NOW THEREFORE BE IT ORDAINED by the City of Santa Cruz as follows:
36.34 Section 1. 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.
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
36.35 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)
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
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
36.36 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)
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 more than 50 dwelling units and
varying from at least one and no
ZA CPC/CC
36.37 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 five standards of
Section 24.12.185
10. 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 ZA 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
36.38 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)
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:
36.39 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)
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 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
36.40 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)
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 2. The City Council finds and determines that the adoption of this ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) as a project that can be seen with certainty to have no possibility for causing a significant effect on the environment.
Section 3. 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 4. 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 18th day of November 2025, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
36.41 PASSED FOR FINAL ADOPTION this 9th day of December 2025, 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. 2025-XX and
that it has been published or posted
in accordance with the Charter of
the City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator
36.42 ORDINANCE NO. 2025-XX
AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING SANTA CRUZ MUNICIPAL CODE SECTION 24.04.130 – DECISION-MAKING BODY WITH FINAL AUTHORITY ON APPLICATION APPROVAL RELATED TO THE DECISIONMAKING BODY TO AUTHORIZE THE DEMOLITION OF THREE OR MORE UNITS. (CEQA: EXEMPT PURSUANT TO CEQA GUIDELINES SECTION 15061(b)(3) AS A
PROJECT THAT WITH CERTAINTY HAS NO POSSIBILITY FOR CAUSING A SIGNIFICANT EFFECT ON THE ENVIRONMENT.)
WHEREAS, the City of Santa Cruz 2023-2031 Housing Element (Housing Element) was adopted in December 2023 by the Santa Cruz City Council and subsequently accepted by the state Department of Housing and Community Development; and
WHEREAS, Objectives 5.5b and 6.4b of the Housing Element require the City to adopt additional anti-displacement policies and to align with state law the right of first refusal for lower income households displaced by demolition; and
WHEREAS, at its October 2, 2025 meeting, the City Planning Commission reviewed the proposed amendments to Title 24 of 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 as proposed to be amended; and WHEREAS, state law restricts review of housing development projects to objective standards and includes specific, objective provisions for tenant displacement due to demolition; and
WHEREAS, at its October 2, 2025 meeting, the Santa Cruz Planning Commission considered the 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 October 2, 2025 meeting the City Planning Commission passed a motion that recommended the City Council approve the determination under the California Environmental Quality Act and approve the proposed amendments to Title 24 of the Santa Cruz Municipal Code.
NOW THEREFORE BE IT ORDAINED by the City of Santa Cruz as follows:
36.43 Section 1. 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.
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
36.44 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)
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
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
36.45 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)
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 more than 50 dwelling units and
varying from at least one and no
ZA CPC/CC
36.46 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 five standards of
Section 24.12.185
10. 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 ZA CPC 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
36.47 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)
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:
36.48 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)
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 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
36.49 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)
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 2. The City Council finds and determines that the adoption of this ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) as a project that can be seen with certainty to have no possibility for causing a significant effect on the environment.
Section 3. 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 4. 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 18th day of November 2025, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
36.50 PASSED FOR FINAL ADOPTION this 9th day of December 2025, 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. 2025-XX and
that it has been published or posted
in accordance with the Charter of
the City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator
36.51 PLANNING COMMISSION
AGENDA REPORT
DATE: 09/26/2025
AGENDA OF: 10/02/2025
ITEM NO: FP25-0005: Municipal Code Amendments Proposed to Section 24.04.130:
Decision-Making Body with Final Authority on Application Approval and Chapter 24.08, Part 14: Residential Demolition/Conversion Authorization Permits to Align with State Law Requirements for Right of First Refusal Associated with Housing Demolition and to Make Other Minor Amendments Related to Demolition of Housing Regulations.
District: Citywide
Applicant: City of Santa Cruz
RECOMMENDATION: Motion to recommend that the City Council:
1) Approve the proposed amendments to the City of Santa Cruz Municipal Code Chapter 24.08, Part 14, and Local Coastal Program Implementation Plan; and 2) Acknowledge the determination that the proposed amendments are exempt from environmental review under California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3).
BACKGROUND: State law related to demolition of housing has evolved significantly over the last few years. Specifically, the Housing Crisis Act of 2019 and subsequent amending legislation added new requirements related to relocation assistance, replacement housing, and right of first refusal for displaced tenants. Government Code Sections 66300.5 and 66300.6 require nearly all development projects to provide deed-restricted replacement housing when those projects involve demolition of housing occupied by lower-income households. Those developments must also offer the displaced lower-income households right of first refusal to a comparable, deed restricted replacement unit.
The municipal code regulates demolition of housing through the Residential Demolition/ Conversion Authorization Permit under Zoning Ordinance Chapter 24.08, Part 14, which was created in 1989. While these regulations have been updated several times since then, the local regulations no longer apply to most development projects as they are now superseded by state law.
The City’s 6th Cycle Housing Element Update’s objective 6.4b calls for the City to amend the Zoning Ordinance in 2025 to reflect state law related to right of first refusal for replacement units
36.52 in a new development. The proposed amendments implement Housing Element Objective 6.4b and create additional clarity for local regulations and congruency with state law.
DISCUSSION: Government Code Section 66300.5-66300.6 requires that lower income households displaced by demolition of a rental unit enjoy a right of first refusal for a comparable unit with rent or sale price deed restricted at a level affordable to that income level. For development projects that demolish existing units but do not include new housing in the development, those replacement units must be provided at another location within the jurisdiction, with right of first refusal offered for those restricted to the lower-income households displaced by the development. The amendments to the local regulations include a specific reference to this state code as it relates to right of first refusal, among other requirements.
The proposed amendments also include the following minor changes:
• Adding references to housing element and density bonus state law requirements related to demolition of housing and correcting other inaccurate state code references; • Eliminating subjective language in the findings for demolition of three or more units that are unenforceable for housing development projects under state law, and instead aligning with the objective requirements under state law;
• Changing the approval body for demolition of three or more units from the Planning Commission to the Zoning Administrator as subjectivity of findings is also being removed; and
• Updating language to clarify existing requirements.
LCP Consistency
The City’s Local Coastal Program (LCP) is the tool used by the City and the Coastal Commission to regulate development activities within the Coastal Zone. The proposal includes one LCP Implementation Plan amendment: changing the approval body for the demolition of three or more dwelling units from the Planning Commission to the Zoning Administrator within zoning ordinance section 24.04.130. This change brings the Zoning Ordinance into alignment with state law for housing development projects, which requires a project to adhere to a set of objective requirements without need for deliberation or a hearing.
The proposed modification would facilitate allowed existing development capacities rather than increasing those capacities, which are already permitted by the LCP, and it would have no physical effect on the size or type of development permitted within the Coastal Zone. The proposed amendment is further consistent with the Coastal Act in that it is not anticipated to have any effects related to public access, coastal recreation, the marine environment, coastal land resources, industrial development, or sea level rise. The proposal also does not alter the public process that would otherwise be required for a Coastal Permit, should one be required for an affected project.
Community Outreach
The proposed zoning ordinance changes do not substantially change policy related to demolition of housing but rather align with state law and improve clarity of the existing regulations. Since the proposed changes are minor with no substantial policy question for the public to weigh in on,
36.53 the project included the basic level of community outreach, which involves opportunity to comment through the public hearing process.
Next Steps
Following action by the Planning Commission, the proposed amendments will proceed to City Council as part of a larger amendment package including other smaller anti-displacement updates elsewhere in the municipal code, such as those related to Code Enforcement, that are outside of the Planning Commission’s purview. This package will have a first reading before the City Council, currently anticipated on November 18, 2025 and a second reading anticipated on December 9, 2025. Should the amendments be approved by the City Council, those changes that constitute amendments to the Local Coastal Program Implementation Plan (LCP IP) will be submitted to the California Coastal Commission for review. Those portions of the package that are not amendments to the LCP IP will take effect thirty days after final action by the City Council, while those that are subject to Coastal Commission jurisdiction will take effect immediately upon final action by that body. Staff anticipate action by the Coastal Commission to take place early 2026.
Beyond approval of this amendment package, staff anticipates additional efforts on antidisplacement related to housing to continue in the future.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed amendments are exempt from environmental review under California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3) as a project that can be seen with certainty to have no possibility for causing a significant effect on the environment.
HEALTH IN ALL POLICIES (HiAP): In 2019, the City adopted a Health in All Policies strategy to eliminate inequities in health and well-being and attain equity for all residents. The proposed amendments further the City’s Health in All Policies strategy by clarifying and supporting protections for displaced tenants at vulnerable income levels, promoting the sustainability of an equitable local housing market.
FINDINGS: Zoning Ordinance Section 24.06.040 requires that prior to making a recommendation for approval of General Plan or Zoning Ordinance amendments to the City Council, the Planning Commission shall make findings that the public necessity, and the general community welfare, and good zoning practice shall be served and furthered; and that the proposed amendment is 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.
Similar findings are also required in the Local Coastal Program for any amendments to the LCP.
These findings include: (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
36.54 proposed amendment has been processed in accordance with the applicable provisions of the California Government Code and the California Environmental Quality Act (CEQA).
The proposed amendments serve and further public necessity and general community welfare by conforming with state law, furthering anti-displacement efforts to support lower-income households, and fulfilling a Housing Element objective that supports fair housing. The amendments further good zoning practice by maintaining consistency with State and federal law and improving clarity of regulations. 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 as described above. The proposed amendments are consistent with the provisions of CEQA as discussed above.
Submitted By:
Clara Stanger
Senior Planner
Approved By:
Matthew VanHua, AICP
Principal Planner
ATTACHMENT:
• DRAFT AMENDMENTS TO RESIDENTIAL DEMOLITION CONVERSION
AUTHORIZATION REGULATIONS
36.55 Relocation Assistance
Amendments
Planning and Community Development
City Council | November 18, 2025
36.56