Agenda packet — Santa Cruz City Council, December 9, 2025 (part 2 of 3)

Table of Contents
Section Page

1.0 Introduction .......................................................................................................................... 3

2.0 Description of the Proposed District..................................................................................... 6

3.0 Description of Proposed Facilities and Development........................................................... 7

4.0 Finding of Communitywide Significance ............................................................................ 12

5.0 Financing Section............................................................................................................... 13

6.0 Removal of Dwelling Units and Replacement Housing Plan.............................................. 17

7.0 Goals of the District............................................................................................................ 18

8.0 Appendices ........................................................................................................................19 Index of Appendices
Appendix A: Map of Boundaries of the Santa Cruz EIFD
Appendix B: Legal Description of the Santa Cruz EIFD
Appendix C: Projected Tax Increment Revenue Analysis
Appendix D: Fiscal Impact Analysis

19.8 Santa Cruz EIFD
Infrastructure Financing Plan
October 2025

Page 3 ends

1.0 Introduction

1.1 Background & Purpose
The proposed Santa Cruz Enhanced Infrastructure Financing District (“Santa Cruz EIFD” or “District”) will serve as a catalyst for private development and critical regional infrastructure with transformative potential for the City of Santa Cruz (“City”) and larger Santa Cruz County (“County”) region. The Santa Cruz EIFD encompasses approximately 543 acres of land, representing approximately 5% of the total land area within the City. The Santa Cruz EIFD includes the Santa Cruz Downtown Plan Expansion Area, several mixed-use corridors, and various other housing and blended-use development opportunity sites within the City that stand to benefit from catalytic infrastructure improvements with communitywide and regional benefit.

1.2 Contents and Overview of this Infrastructure Financing Plan (“IFP”) Pursuant to Government Code Sections 53398.59 through 53398.74, this IFP comprises the following information:
a) A map and legal description of the District, included herein as Appendix A and Appendix B, respectively.
b) A description of the public facilities and other forms of development or financial assistance that is proposed in the area of the district, including those to be provided by the private sector, those to be provided by governmental entities without assistance under this chapter, those public improvements and facilities to be financed with assistance from the proposed district, and those to be provided jointly. The description shall include the proposed location, timing, and costs of the development and financial assistance. This information is included in Section 3 of this IFP.
c) If funding from affected taxing entities is incorporated into the financing plan, a finding that the development and financial assistance are of communitywide significance and provide significant benefits to an area larger than the area of the district. This information is included in Section 4 of this IFP.
d) A financing section (included in Section 5 of this IFP), which shall contain all of the following information:
a. A specification of the maximum portion of the incremental tax revenue of the city or county and of each affected taxing entity proposed to be committed to the district for each year during which the district will receive incremental tax revenue.

The portion need not be the same for all affected taxing entities. The portion may

19.9 Santa Cruz EIFD
Infrastructure Financing Plan
October 2025

Page 4 ends

change over time. The maximum portion of the City’s property tax increment to be committed to the District will be 50% throughout the duration of the District lifetime. b. A projection of the amount of tax revenues expected to be received by the district in each year during which the district will receive tax revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year. Section 5.3 of this IFP includes a projection of tax revenues to be received by the District from each participating taxing entity by year over the course of the projected District lifetime. These projections are based on research and analysis of available data at the time of IFP preparation for purposes of illustration. Actual results may differ from those expressed in this document.

Appendix C provides additional detail for the projected revenue analysis. c. A plan for financing the public facilities to be assisted by the district, including a detailed description of any intention to incur debt. Section 5.4 of this IFP includes a plan for financing the public facilities to be assisted by the District. The Public Financing Authority (“PFA”) governing the District intends to incur debt only when it is financially prudent to do so. It is estimated at this time that the Santa Cruz EIFD will contribute approximately $89 million in present-value dollars to public improvements and affordable housing projects from a combination of bond or loan proceeds (multiple issuances may be necessary) and pay-as-you-go funding over the District lifetime. This is equivalent to approximately $217 million in nominal dollars (i.e., not adjusting for inflation).
d. A limit on the total number of dollars of taxes that may be allocated to the district pursuant to the plan. The total number of dollars or taxes that may be allocated to the District shall not exceed $400,000,000 (nominal dollars). e. A date on which the district will cease to exist, by which time all tax allocation to the district will end. The date shall not be more than 45 years from the date on which the issuance of bonds is approved pursuant to subdivision (a) of Section 53398.81, or the issuance of a loan is approved by the governing board of a local agency pursuant to Section 53398.87. The District will cease to exist the earlier of: (i) forty five (45) years from the date on which the first issuance of bonds or acquisition of a loan is approved by the PFA, or (ii) June 30, 2076. This IFP assumes that the base year for the District will be Fiscal Year 2025-2026 and that the District will begin receiving tax revenues in Fiscal Year 2026-2027. f. An analysis of the costs to the city or county of providing facilities and services to the area of the district while the area is being developed and after the area is developed. The plan shall also include an analysis of the tax, fee, charge, and other revenues expected to be received by the city or county as a result of expected development in the area of the district. Appendix D to this IFP includes,

19.10 Santa Cruz EIFD
Infrastructure Financing Plan
October 2025

Page 5 ends

as part of the Fiscal Impact Analysis, an analysis of the costs to the City for providing facilities and services to the area of the District. It is estimated that, at Year 20 of the District lifetime (assumed stabilized buildout of District area), annual costs to the City will be approximately $20.3 million to service the area of the District.
g. An analysis of the projected fiscal impact of the district and the associated development upon each affected taxing entity. Appendix D to this IFP includes an analysis of the projected fiscal impact of the District and the associated development upon the City, as the only affected taxing entity that is contributing tax increment revenues to the District. It is estimated that, at Year 20 of the District lifetime, the District area will generate an annual net fiscal surplus of approximately $1.86 million to the City.
h. A plan for financing any potential costs that may be incurred by reimbursing a developer of a project that is both located entirely within the boundaries of that district and qualifies for the Transit Priority Project Program, pursuant to Section 65470, including any permit and affordable housing expenses related to the project. At this time, the PFA does not intend to finance any potential costs that may be incurred by reimbursing a developer of a project that is both located entirely within the boundaries of the District and qualifies for the Transit Priority Project Program, pursuant to Section 65470.
e) If any dwelling units within the territory of the district are proposed to be removed or destroyed in the course of public works construction within the area of the district or private development within the area of the district that is subject to a written agreement with the district or that is financed in whole or in part by the district, a plan providing for replacement of those units and relocation of those persons or families consistent with the requirements of Section 53398.56. It is not known at this time whether any housing units will be removed as a result of any project identified in this IFP. However, if any relocation of dwelling units is deemed to be required in the future for a project financed by the District, the PFA will comply with the requirements of Government Code Section 53398.56.
f) The goals the district proposes to achieve for each project financed pursuant to Section 53398.52. Section 7 of this IFP summarizes the goals of each project to be financed by the District.

19.11 Santa Cruz EIFD
Infrastructure Financing Plan
October 2025

Page 6 ends

2.0 Description of the Proposed District
The Santa Cruz EIFD encompasses approximately 543 acres of land, representing approximately 5% of the total land area within the City. The Santa Cruz EIFD includes the Santa Cruz Downtown Plan Expansion Area, several mixed-use corridors, and various other housing and blended-use development opportunity sites within the City that stand to benefit from catalytic infrastructure improvements with communitywide and regional benefit. Appendix A includes a map of the proposed District, and Appendix B is a legal description of the District.

19.12 Santa Cruz EIFD
Infrastructure Financing Plan
October 2025

Page 7 ends

3.0 Description of Proposed Facilities
and Development

3.1 Anticipated Future Private Development
Anticipated future private development is summarized in Table 1 below, anticipated to occur across the Santa Cruz Downtown Plan Expansion Area and other development opportunity sites as identified on the map in Appendix A. Buildout and absorption of these land uses are forecasted in the first 10 to 20 years of the District lifetime.

Table 1: Anticipated Future Private Development
Development Type # SF / Units AV Per SF / Unit Estimated AV at Buildout (2025$)
Residential (Rental) 2,382 units $500K per unit $1.191 billion Residential (For Sale) 79 units $900K per unit $71 million Residential (Affordable) 675 units Tax-exempt $0
Hotel 401 rooms $500K per room $201 million
Commercial / Retail / Office 75,115 SF $375 PSF $28 million Industrial / Flex 126,445 SF $200 PSF $25 million
Estimated Total $1.516 billion

3.2 Public Facilities to be Financed with Assistance from the Santa Cruz EIFD The PFA intends to utilize the District to contribute approximately $89 million (in present value dollars) of funding to infrastructure and affordable housing projects of communitywide and regional significance over the District lifetime. This is equivalent to approximately $217 million in nominal dollars (i.e., not accounting for inflation). Table 2 outlines an estimate of anticipated EIFD budget allocation over the District’s lifetime.

19.13 Santa Cruz EIFD
Infrastructure Financing Plan
October 2025

Page 8 ends

Table 2: Estimated EIFD Funding Allocation
#

PROJECT
(within City of Santa Cruz with tangible benefit
to properties within EIFD)

ESTIMATED

ALLOCATION
(present-value)

ESTIMATED
TIMING
1 Affordable housing
$89,000,000 2026-2076
2 Housing-supportive infrastructure Downtown
and in the Downtown Expansion Area (e.g.,
utility capacity enhancement)
3 Housing-supportive infrastructure along other
key corridors within the City (e.g., Soquel,
Mission, Ocean)
4 Library improvements
5 Recreational and entertainment infrastructure
and facilities Downtown and in the Downtown
Expansion Area
6 Infrastructure to support recreational and
entertainment facilities Downtown and in the
Downtown Expansion Area
7 Riverwalk improvements
8 Roadway / sidewalk / streetscape
improvements (e.g., street realignment)
9 Other public amenities (e.g., parks, public
plazas, pedestrian infrastructure)
10 Climate resilience investments Citywide (e.g.,
sea-level rise, flood control)
Estimated Total EIFD Budget Allocation $89,000,000 (present value dollars)
Funds allocated under projects item numbers 1 through 10 may be reallocated to any eligible projects under the IFP and EIFD law based on future infrastructure needs. Specific project funding will be subject to approval by the PFA.

Additional expenditures by the EIFD, including any use of potential future EIFD bond proceeds, will be subject to approval by the PFA. Targeted improvements would conform to established guidelines in existing, adopted planning documentation, such as the City General Plan.

19.14 Santa Cruz EIFD
Infrastructure Financing Plan
October 2025

Page 9 ends

Eligible expenditures in accordance with Government code sections 53398.52 and 53398.56 include the purchase, construction, expansion, improvement, seismic retrofit, or rehabilitation of any real or other tangible property with an estimated useful life of 15 years or and are projects of communitywide significance that provide significant benefits to the district or the surrounding community.

The Santa Cruz EIFD may also finance the ongoing or capitalized costs to maintain public capital facilities financed in whole or in part by the Santa Cruz EIFD. Facilities funded may be located outside the boundaries of the Santa Cruz EIFD, as long as they have a tangible connection to the work of the Santa Cruz EIFD. The Santa Cruz EIFD will also finance planning and design activities that are directly related to the purchase, construction, expansion, or rehabilitation of these projects. Projects financed by the Santa Cruz EIFD may include, but not be limited to, all of the following:
• Highways, interchanges, and ramps;
• Bridges;
• Arterial streets;
• Parking facilities;
• Transit facilities;
• Parks, recreational facilities, and open space;
• Sewage treatment and water reclamation plants and interceptor pipes; • Facilities for the collection and treatment of water for urban uses; • Facilities for the transfer and disposal of solid waste, including transfer stations and vehicles;
• Storm water conveyance and collection facilities;
• Flood control levees and dams, retention basins, and drainage channels; • Child care facilities;
• Libraries;
• Broadband and telecommunications infrastructure;
• Sidewalks and streetscape improvements;
• Bicycle lanes and paths;
• Public art;
• Brownfield restoration and other environmental mitigation; • Affordable housing as authorized under the EIFD Law;
• Projects that implement a sustainable communities strategy and transit priority projects; • Acquisition, construction, or repair of commercial structures by the small business occupant of such structures, if such acquisition, construction, or repair is for purposes of fostering economic recovery from the COVID-19 pandemic and of ensuring the long-term economic sustainability of small businesses;

19.15 Santa Cruz EIFD
Infrastructure Financing Plan
October 2025

Page 10 ends

• Projects that enable communities to adapt to the impacts of climate change, including, but not limited to, higher average temperatures, decreased air and water quality, the spread of infectious and vector-borne diseases, other public health impacts, extreme weather events, sea level rise, flooding, heat waves, wildfires, and drought; • Facilities in which nonprofit community organizations provide health, youth, homeless, and social services.

In addition, the Santa Cruz EIFD may finance any other expenses incidental to the formation, administration1 and implementation of the Santa Cruz EIFD and to the construction, completion, inspection and acquisition of the authorized facilities, including, but not limited to, the costs of creation and administration of the Santa Cruz EIFD; costs of issuance of bonds or other debt of the Santa Cruz EIFD or of any other public agency (including a community facilities district) that finances authorized facilities, and payment of debt service thereon; financing costs of improvements incurred by developers until reimbursement for the costs of the improvements from the Santa Cruz EIFD; costs incurred by the City, County, or the Santa Cruz EIFD in connection with the division of taxes pursuant to Government Code section 53398.75; and legal costs.

In accordance with Government Code Section 53398.69, the Santa Cruz EIFD may expend up to 10 percent of any accrued tax increment in the first two years of the effective date of the Santa Cruz EIFD on planning and dissemination of information to the residents within the Santa Cruz EIFD boundaries about the IFP and planned activities to be funded by the Santa Cruz EIFD, including reimbursement of the City’s advanced funding of such eligible costs.

The PFA intends to continue to identify, evaluate, and pursue additional funding sources and financing mechanisms aside from District tax increment to implement the improvements identified above, potentially including grant sources, impact fees, private sector investment incentivized by the formation of the EIFD itself, and/or other sources.

Private sector developers will be responsible for funding project-specific / fair-share / in-tract infrastructure, unless otherwise outlined in this IFP. Some public facilities included in the EIFD area are anticipated to be provided by governmental entities without assistance from the District.

While details are not known at this time, there may be public facilities provided jointly by the 1 Administration costs refer to the actual or reasonably estimated costs directly related to the administration of the Santa Cruz EIFD, including, but not limited to, the following: the costs of computing annual tax increment revenues and preparing the required annual reporting; the costs of allocation tax increment revenues (whether by the County, the City, or otherwise); the costs to the City, Santa Cruz EIFD, or any designee thereof in complying with disclosure requirements; the costs associated with preparing required disclosure statements and responding to public inquiries regarding the Santa Cruz EIFD; and the costs of the City, Santa Cruz EIFD, or any designee thereof related to any appeal of the implementation of the Santa Cruz EIFD. Administration costs shall also include amounts estimated or advanced by the City for any other administrative purposes, including, but not limited to, attorney’s fees or any other expenses incidental to the implementation of the Santa Cruz EIFD.

19.16 Santa Cruz EIFD
Infrastructure Financing Plan
October 2025

Page 11 ends

private sector and governmental entities. Such case-specific agreements would come before the PFA for approval at the appropriate time.

19.17 Santa Cruz EIFD
Infrastructure Financing Plan
October 2025

Page 12 ends

4.0 Finding of Communitywide
Significance
Implementation of the District promotes the goals of and is consistent with the City’s General Plan, serves as a catalyst for private sector investment and critical public infrastructure with transformative potential for the Santa Cruz EIFD area and the City as a whole. The District supports job creation, housing production, and improvement of quality of life.

Specific communitywide and regional benefits anticipated to be generated by the District include:
• Approximately $54 million in net fiscal surplus to the City over 50 years (on a presentvalue basis) • Approximately 3,100+ housing units within the District, including significant affordable housing unit allocation
• Approximately 20,341 direct, indirect, and induced temporary, construction-related jobs in the City and County
• Approximately 601 direct, permanent jobs in the City
• Approximately 179 additional indirect and induced permanent jobs in the City and County (total of 779 direct, indirect, and induced jobs)
• Approximately $2.8 billion in economic output from construction in the City and County • Approximately $99 million in annual ongoing economic output in the City and County.

19.18 Santa Cruz EIFD
Infrastructure Financing Plan
October 2025

Page 13 ends

5.0 Financing Section
The Santa Cruz EIFD will be funded by property tax increment allocated by the City. No other taxing entity is contributing property tax increment to the District. It is anticipated that property tax increment will be utilized on both a “pay-as-you-go” basis as well as security for tax increment bond issuance or loan acquisition.

Portions of the Santa Cruz EIFD are located within the boundaries of the former Redevelopment Project Area of the former Redevelopment Agency of Santa Cruz, and so property tax revenues generated by the properties within the overlapping area will flow according to the Redevelopment Agency dissolution statutes until all of the Successor Agency’s obligations are retired (currently anticipated in 2041). Redevelopment Property Tax Trust Fund (“RPTTF”) residual revenues are intended to be contributed by the City to the District as part of the maximum allocations outlined in the following sections.

The analysis and projections herein reflect the City’s intention to dedicate incremental property tax revenue allocated to the City in lieu of motor vehicle license fees to the District pursuant to Government Code Section 53398.75(e)(1) in addition and in proportion to incremental “AB8” property tax.

5.1 Maximum Portion of Incremental Tax Revenue Dedicated to the District The maximum portion of the City’s property tax increment to be committed to the District will be 50% throughout the District lifetime.

5.2 Projection of District Tax Revenues by Year
Table 3 provides an overview of the projected growth of assessed value, property tax increment, and City allocation to the District over the District lifetime. It is expected that a total of approximately $89 million of incremental tax revenues will be allocated to the District by the City.

19.19 Santa Cruz EIFD
Infrastructure Financing Plan
October 2025

Page 14 ends

Table 3: Projection of District Revenues by Year
Note: Present value at 3% discount rate.

Incremental
Assessed Value
Property Tax
Increment @
1% General
Levy
Average City
Share
Available
(incl. MVLF)
City
Increment
Available
Portion of
City Share
Allocated
City
Increment
Allocated to
EIFD
0 2025 / 2026 $0 $0 21.95% $0 50% $0
1 2026 / 2027 $264,475,405 $2,644,754 21.95% $580,617 50% $290,308 2 2027 / 2028 $448,543,729 $4,485,437 21.95% $984,712 50% $492,356 3 2028 / 2029 $639,085,580 $6,390,856 21.95% $1,403,019 50% $701,509 4 2029 / 2030 $936,205,583 $9,362,056 21.95% $2,055,302 50% $1,027,651 5 2030 / 2031 $1,170,407,696 $11,704,077 21.95% $2,569,458 50% $1,284,729 6 2031 / 2032 $1,384,102,853 $13,841,029 21.95% $3,038,595 50% $1,519,297 7 2032 / 2033 $1,605,094,237 $16,050,942 21.95% $3,523,749 50% $1,761,875 8 2033 / 2034 $1,833,588,217 $18,335,882 21.95% $4,025,374 50% $2,012,687 9 2034 / 2035 $2,069,796,503 $20,697,965 21.95% $4,543,935 50% $2,271,967 10 2035 / 2036 $2,313,936,268 $23,139,363 21.95% $5,079,908 50% $2,539,954 11 2036 / 2037 $2,399,385,835 $23,993,858 21.95% $5,267,500 50% $2,633,750 12 2037 / 2038 $2,486,544,394 $24,865,444 21.95% $5,458,844 50% $2,729,422 13 2038 / 2039 $2,575,446,123 $25,754,461 21.95% $5,654,014 50% $2,827,007 14 2039 / 2040 $2,666,125,887 $26,661,259 21.95% $5,853,088 50% $2,926,544 15 2040 / 2041 $2,758,619,247 $27,586,192 21.95% $6,056,144 50% $3,028,072 16 2041 / 2042 $2,852,962,474 $28,529,625 21.95% $6,263,261 50% $3,131,630 17 2042 / 2043 $2,949,192,565 $29,491,926 21.95% $6,474,520 50% $3,237,260 18 2043 / 2044 $3,047,347,258 $30,473,473 21.95% $6,690,004 50% $3,345,002 19 2044 / 2045 $3,147,465,045 $31,474,650 21.95% $6,909,798 50% $3,454,899 20 2045 / 2046 $3,249,585,187 $32,495,852 21.95% $7,133,988 50% $3,566,994 21 2046 / 2047 $3,353,747,733 $33,537,477 21.95% $7,362,661 50% $3,681,331 22 2047 / 2048 $3,459,993,529 $34,599,935 21.95% $7,595,908 50% $3,797,954 23 2048 / 2049 $3,568,364,242 $35,683,642 21.95% $7,833,820 50% $3,916,910 24 2049 / 2050 $3,678,902,368 $36,789,024 21.95% $8,076,491 50% $4,038,245 25 2050 / 2051 $3,791,651,258 $37,916,513 21.95% $8,324,014 50% $4,162,007 26 2051 / 2052 $3,906,655,124 $39,066,551 21.95% $8,576,488 50% $4,288,244 27 2052 / 2053 $4,023,959,069 $40,239,591 21.95% $8,834,012 50% $4,417,006 28 2053 / 2054 $4,143,609,092 $41,436,091 21.95% $9,096,686 50% $4,548,343 29 2054 / 2055 $4,265,652,115 $42,656,521 21.95% $9,364,614 50% $4,682,307 30 2055 / 2056 $4,390,135,999 $43,901,360 21.95% $9,637,900 50% $4,818,950 31 2056 / 2057 $4,517,109,561 $45,171,096 21.95% $9,916,652 50% $4,958,326 32 2057 / 2058 $4,646,622,594 $46,466,226 21.95% $10,200,979 50% $5,100,489 33 2058 / 2059 $4,778,725,888 $47,787,259 21.95% $10,490,992 50% $5,245,496 34 2059 / 2060 $4,913,471,247 $49,134,712 21.95% $10,786,806 50% $5,393,403 35 2060 / 2061 $5,050,911,514 $50,509,115 21.95% $11,088,536 50% $5,544,268 36 2061 / 2062 $5,191,100,586 $51,911,006 21.95% $11,396,300 50% $5,698,150 37 2062 / 2063 $5,334,093,440 $53,340,934 21.95% $11,710,220 50% $5,855,110 38 2063 / 2064 $5,479,946,150 $54,799,462 21.95% $12,030,418 50% $6,015,209 39 2064 / 2065 $5,628,715,915 $56,287,159 21.95% $12,357,020 50% $6,178,510 40 2065 / 2066 $5,780,461,075 $57,804,611 21.95% $12,690,155 50% $6,345,077 41 2066 / 2067 $5,935,241,138 $59,352,411 21.95% $13,029,952 50% $6,514,976 42 2067 / 2068 $6,093,116,803 $60,931,168 21.95% $13,376,544 50% $6,688,272 43 2068 / 2069 $6,254,149,981 $62,541,500 21.95% $13,730,069 50% $6,865,035 44 2069 / 2070 $6,418,403,822 $64,184,038 21.95% $14,090,664 50% $7,045,332 45 2070 / 2071 $6,585,942,740 $65,859,427 21.95% $14,458,472 50% $7,229,236 46 2071 / 2072 $6,756,832,437 $67,568,324 21.95% $14,833,635 50% $7,416,817 47 2072 / 2073 $6,931,139,927 $69,311,399 21.95% $15,216,301 50% $7,608,151 48 2073 / 2074 $7,108,933,568 $71,089,336 21.95% $15,606,621 50% $7,803,311 49 2074 / 2075 $7,290,283,081 $72,902,831 21.95% $16,004,747 50% $8,002,374 50 2075 / 2076 $7,475,259,584 $74,752,596 21.95% $16,410,836 50% $8,205,418 $433,694,343 50% $216,847,172
$178,734,300 50% $89,367,150
Fiscal Year
Total
Present Value

19.20 Santa Cruz EIFD
Infrastructure Financing Plan
October 2025

Page 15 ends

These projections are based on research and analysis of available data at the time of IFP preparation for purposes of illustration. Actual results may differ from those expressed in this document. Appendix C provides additional detail for the projected revenue analysis.

5.3 Plan for Financing Public Facilities
The PFA intends to utilize numerous funding sources and financing mechanisms to implement the projects identified in Section 3.2, potentially including District tax increment, grant sources, impact fees, private sector investment, and/or other sources.

As it pertains to the use of District tax increment, the PFA intends to incur debt only when it is financially prudent to do so. It is estimated at this time that approximately $89 million of EIFD funding (in present value dollars) will be made available through bond or loan proceeds and payas-you-go proceeds over the District lifetime. It may be the case that multiple debt issuances will be necessary to achieve the targeted funding capacity.

5.4 Limit on Total Dollars Allocated to the District
The total number of dollars or taxes that may be allocated to the District shall not exceed $400,000,000 (nominal dollars).

5.5 District Termination Date
The District will cease to exist the earlier of: (i) forty five (45) years from the date on which the first issuance of bonds or acquisition of a loan is approved by the PFA, or (ii) June 30, 2076. This IFP assumes that that the base year for the District will be Fiscal Year 2025-2026 and that the District will begin receiving tax revenues in Fiscal Year 2026-2027.

5.6 Analysis of Costs to Provide Facilities and Services Appendix D to this IFP includes, as part of the Fiscal Impact Analysis, an analysis of the costs to the City for providing facilities and services to the area of the District. It is estimated that, at Year 20 of the District lifetime (assumed stabilized buildout of District area), annual costs to the City will be approximately $20.3 million to service the area of the District.

5.7 Fiscal Impact Analysis
Appendix D to this IFP includes an analysis of the projected fiscal impact of the District and the associated development upon the City, as the only affected taxing entity that are contributing tax increment revenues to the District. Table 5 presents an overview of fiscal impacts to the City.

19.21 Santa Cruz EIFD
Infrastructure Financing Plan
October 2025

Page 16 ends

Table 5: Overview of Fiscal Impacts to City
It is estimated that, at Year 20 of the District lifetime, the District area will generate an annual net fiscal surplus of approximately $1.86 million to the City. Over 50 years, District activity will generate a positive net fiscal impact of approximately $54 million for the City on a present-value basis. This is in addition to the Community economic benefits outlined in Section 4 of this IFP (e.g. jobs, housing, remediation of contamination, connectivity, active transportation).

5.8 Developer Reimbursement for Transit Priority Project The PFA does not intend to finance any potential costs that may be incurred by reimbursing a developer of a project that is both located entirely within the boundaries of the District and qualifies for the Transit Priority Project Program, pursuant to Section 65470. To the extent that a developer is willing to fund Transit Priority Project infrastructure expenditures beyond and in advance of said developer’s fair share (not contemplated at this time), the PFA may consider and evaluate such reimbursement at the appropriate time.

Annual
Stabilized
Year 0-50
Nominal
Total
Year 0-50
Present Value
@ 3.0%
City of Santa Cruz
Estimated Fiscal Revenues (Net of 50% EIFD Allocation) $22,113,800 $1,371,548,100 $549,782,500 Estimated Fiscal Expenditures ($20,257,000) ($1,247,203,000) ($495,886,800) Estimated Net Fiscal Impact to City $1,856,800 $124,345,100 $53,895,700

19.22 Santa Cruz EIFD
Infrastructure Financing Plan
October 2025

Page 17 ends

6.0 Removal of Dwelling Units and
Replacement Housing Plan
It is not known at this time if any housing units will be removed as a result of any project identified in this IFP. However, if any relocation of dwelling units is deemed to be required in the future for a project financed by the District, the PFA will comply with the requirements of Government Code Section 53398.56.

19.23 Santa Cruz EIFD
Infrastructure Financing Plan
October 2025

Page 18 ends

7.0 Goals of the District
As stated in the Resolution of Intention, the goal of the Santa Cruz EIFD is to assist in the provision of public facilities of communitywide significance that provide significant benefits and promote economic development within the boundaries of the Santa Cruz EIFD and the surrounding community and, for those facilities located outside the Santa Cruz EIFD boundaries which also have a tangible connection to the Santa Cruz EIFD.

More specifically, the goals of the District’s implementation of the public facilities outlined in Section 3.2 are to support the City’s General Plan and serve as a catalyst for private sector investment and critical public infrastructure with transformative potential for the Santa Cruz EIFD area and the City as a whole. The District additionally aims to implement Statewide policy goals of housing supply and sustainable infrastructure investment.

Additional objectives include economic development in the form of fiscal revenue generation for the City and other taxing entities, job creation, housing production, improvement of quality of life, and promotion of environmental sustainability. The District will be utilized to address essential infrastructure funding needs, which are are critical to catalyze private sector investment and development.

19.24 Santa Cruz EIFD
Infrastructure Financing Plan
October 2025

Page 19 ends

8.0 Appendices
Appendix A: Map of Boundaries of the Santa Cruz EIFD
Appendix B: Legal Description of the Santa Cruz EIFD
Appendix C: Projected Tax Increment Revenue Analysis
Appendix D: Fiscal Impact Analysis

19.25 APPENDIX A to Infrastructure Financing Plan (IFP) Map of Santa Cruz Enhanced Infrastructure Financing District (EIFD) Boundaries Proposed EIFD parcels highlighted in red, yellow, blue, green, and purple (approx. 543 acres).

Santa Cruz City boundaries noted in black.

19.26 Appendix B to Infrastructure Financing Plan (IFP) - Santa Cruz EIFD Parcel List DRAFT 001-033-02 001-045-21 001-172-09 002-751-02 003-043-20 003-351-30 001-033-03 001-045-23 001-172-12 002-751-03 003-043-21 003-351-31 001-033-04 001-045-24 001-172-14 002-751-04 003-043-23 003-351-32 001-033-05 001-045-25 001-172-16 002-751-05 003-043-24 003-351-33 001-033-08 001-045-26 001-172-18 002-751-06 003-051-31 003-351-35 001-033-09 001-045-27 001-172-19 002-751-07 003-051-32 003-351-36 001-033-10 001-045-28 001-271-01 002-751-08 003-051-33 003-351-37 001-033-11 001-051-25 001-271-02 002-751-09 003-051-34 003-351-38 001-033-12 001-051-26 001-271-03 002-761-01 003-051-35 003-351-40 001-033-15 001-051-32 001-271-04 002-761-02 003-052-08 003-351-41 001-041-17 001-051-33 001-271-05 002-761-03 003-052-09 003-351-42 001-042-02 001-051-40 001-271-06 002-761-04 003-052-10 003-351-43 001-042-03 001-051-42 002-216-01 002-761-05 003-081-12 003-351-44 001-042-04 001-051-43 002-216-05 002-761-06 003-081-13 003-351-45 001-042-09 001-051-44 002-216-06 002-761-07 003-081-14 003-351-46 001-042-10 001-051-45 002-218-14 002-761-08 003-081-15 003-351-47 001-042-12 001-051-54 002-218-22 002-761-09 003-081-16 003-351-48 001-042-13 001-051-55 002-218-52 003-031-07 003-081-17 003-351-49 001-042-17 001-051-56 002-218-53 003-031-08 003-081-18 003-351-50 001-042-19 001-052-13 002-218-54 003-032-03 003-081-19 003-351-51 001-043-05 001-052-14 002-218-55 003-032-04 003-095-05 003-351-52 001-043-06 001-052-15 002-218-56 003-041-08 003-095-06 003-351-53 001-043-07 001-052-16 002-222-10 003-041-09 003-095-07 003-351-54 001-043-08 001-053-10 002-222-24 003-041-10 003-351-02 003-351-55 001-043-10 001-053-25 002-222-25 003-041-11 003-351-03 003-351-56 001-043-11 001-053-26 002-223-31 003-041-12 003-351-04 003-351-57 001-043-12 001-053-27 002-223-32 003-041-14 003-351-05 004-011-36 001-044-07 001-053-29 002-223-33 003-041-15 003-351-06 004-011-37 001-044-10 001-053-30 002-223-34 003-041-17 003-351-07 004-011-38 001-044-11 001-053-31 002-223-35 003-041-18 003-351-08 004-011-39 001-044-12 001-053-32 002-223-36 003-042-11 003-351-09 004-012-01 001-044-13 001-053-33 002-223-37 003-042-14 003-351-10 004-012-49 001-044-16 001-053-34 002-235-09 003-042-15 003-351-13 004-041-44 001-044-21 001-121-12 002-235-10 003-042-16 003-351-14 004-041-45 001-044-22 001-121-17 002-235-18 003-042-21 003-351-15 004-043-23 001-044-27 001-121-18 002-235-20 003-042-27 003-351-16 004-043-24 001-044-28 001-122-09 002-235-21 003-042-28 003-351-17 004-043-25 001-044-29 001-122-19 002-235-22 003-042-29 003-351-18 004-043-26 001-044-30 001-171-04 002-235-27 003-042-30 003-351-19 004-043-28 001-044-31 001-171-05 002-621-35 003-043-05 003-351-20 004-043-29 001-044-33 001-171-12 002-622-19 003-043-09 003-351-23 004-043-30 001-044-34 001-171-14 002-622-20 003-043-10 003-351-24 004-081-03 001-044-35 001-171-17 002-622-26 003-043-15 003-351-25 004-081-04 001-045-12 001-171-18 002-631-35 003-043-16 003-351-26 004-081-05 001-045-13 001-171-19 002-741-01 003-043-17 003-351-27 004-081-12 001-045-14 001-171-20 002-741-02 003-043-18 003-351-28 004-081-14 001-045-19 001-172-08 002-751-01 003-043-19 003-351-29 004-081-16 9/1/2025 Page 1 of 6 19.27
Appendix B to Infrastructure Financing Plan (IFP) - Santa Cruz EIFD Parcel List DRAFT 004-081-17 004-581-06 005-047-04 005-075-07 005-142-04 005-148-14 004-081-18 004-581-07 005-047-05 005-075-08 005-142-05 005-148-15 004-091-02 004-591-01 005-047-06 005-075-12 005-142-06 005-148-16 004-091-03 004-591-02 005-047-07 005-075-13 005-142-07 005-148-17 004-091-04 004-591-03 005-047-08 005-075-14 005-142-09 005-148-18 004-091-06 004-591-04 005-047-09 005-075-15 005-142-10 005-148-21 004-091-19 004-591-05 005-047-10 005-075-17 005-142-11 005-148-22 004-091-20 005-041-01 005-047-13 005-075-18 005-142-13 005-148-24 004-091-23 005-041-09 005-047-14 005-076-06 005-142-14 005-148-25 004-091-24 005-041-11 005-047-15 005-076-07 005-143-01 005-151-29 004-091-25 005-041-12 005-047-19 005-076-08 005-143-02 005-151-32 004-091-26 005-041-14 005-047-20 005-076-09 005-143-03 005-151-33 004-123-50 005-041-16 005-047-22 005-076-10 005-143-04 005-151-34 004-123-51 005-041-18 005-048-06 005-076-13 005-143-05 005-151-35 004-123-52 005-041-19 005-048-07 005-076-14 005-143-07 005-151-37 004-123-53 005-041-20 005-048-10 005-076-17 005-143-08 005-151-38 004-124-31 005-042-09 005-048-11 005-076-18 005-143-09 005-151-43 004-124-32 005-042-10 005-048-12 005-076-19 005-143-10 005-151-44 004-124-33 005-042-12 005-051-01 005-076-21 005-143-11 005-151-45 004-124-34 005-042-13 005-051-02 005-081-08 005-143-12 005-151-46 004-124-35 005-042-14 005-051-09 005-081-19 005-143-14 005-151-47 004-233-14 005-042-15 005-051-10 005-081-20 005-143-15 005-151-48 004-311-03 005-042-22 005-051-11 005-081-21 005-143-16 005-151-49 004-311-04 005-042-28 005-051-12 005-081-30 005-144-01 005-151-51 004-311-05 005-042-29 005-051-13 005-081-31 005-144-08 005-151-52 004-311-06 005-042-30 005-052-26 005-081-35 005-144-09 005-152-01 004-311-07 005-042-31 005-052-31 005-081-37 005-144-10 005-152-05 004-311-08 005-042-32 005-052-32 005-081-43 005-144-13 005-152-30 004-311-09 005-042-33 005-053-24 005-081-51 005-144-14 005-152-31 004-311-11 005-042-35 005-053-25 005-081-55 005-144-15 005-152-32 004-311-12 005-042-36 005-053-27 005-081-56 005-145-01 005-152-33 004-311-22 005-043-02 005-053-28 005-081-59 005-145-04 005-152-35 004-311-23 005-043-07 005-072-45 005-081-60 005-145-05 005-152-36 004-311-24 005-043-11 005-072-46 005-081-61 005-145-08 005-152-37 004-431-01 005-043-15 005-072-48 005-082-14 005-145-09 005-152-38 004-431-02 005-043-16 005-072-49 005-082-18 005-145-10 005-153-02 004-432-01 005-043-17 005-074-18 005-082-19 005-145-11 005-153-03 004-432-03 005-043-19 005-074-22 005-082-20 005-145-12 005-153-05 004-432-28 005-043-21 005-074-23 005-082-22 005-148-03 005-153-10 004-441-22 005-045-01 005-074-24 005-082-23 005-148-04 005-153-16 004-441-23 005-045-06 005-074-25 005-141-01 005-148-05 005-153-17 004-441-25 005-045-07 005-074-26 005-141-02 005-148-07 005-153-22 004-581-01 005-045-08 005-074-27 005-141-11 005-148-08 005-153-23 004-581-02 005-046-02 005-074-28 005-141-13 005-148-09 005-153-25 004-581-03 005-046-05 005-075-01 005-141-20 005-148-11 005-153-26 004-581-04 005-046-06 005-075-03 005-141-21 005-148-12 005-153-28 004-581-05 005-047-01 005-075-04 005-142-01 005-148-13 005-153-29 9/1/2025 Page 2 of 6 19.28
Appendix B to Infrastructure Financing Plan (IFP) - Santa Cruz EIFD Parcel List DRAFT 005-153-31 005-781-02 005-821-01 006-181-88 006-521-01 006-561-02 005-251-04 005-781-03 005-821-02 006-181-89 006-541-01 006-561-03 005-251-05 005-781-04 005-821-03 006-181-90 006-541-02 006-561-04 005-251-06 005-781-05 005-821-04 006-181-91 006-541-03 006-561-05 005-251-07 005-781-06 005-821-05 006-192-12 006-541-04 006-561-06 005-251-08 005-781-07 005-821-06 006-192-14 006-541-05 006-561-07 005-251-09 005-781-08 005-821-07 006-192-24 006-541-06 006-561-08 005-251-10 005-781-09 005-821-08 006-192-25 006-541-07 006-561-09 005-251-11 005-781-10 005-831-01 006-192-26 006-541-08 006-561-10 005-251-16 005-781-11 005-831-02 006-192-27 006-541-09 006-561-11 005-251-18 005-781-12 005-831-03 006-193-17 006-541-10 006-561-12 005-251-19 005-781-13 005-831-04 006-193-18 006-541-11 006-561-13 005-252-28 005-781-14 005-831-05 006-193-20 006-541-12 006-561-14 005-252-35 005-781-15 005-831-06 006-193-21 006-541-13 006-561-15 005-252-36 005-781-16 005-831-07 006-193-22 006-541-14 006-561-16 005-252-37 005-781-17 005-831-08 006-193-47 006-541-15 006-561-17 005-252-38 005-781-18 005-841-06 006-193-48 006-541-16 006-561-18 005-261-25 005-781-19 005-851-08 006-193-53 006-541-17 006-561-19 005-261-36 005-781-20 005-861-08 006-193-54 006-541-18 006-561-20 005-261-40 005-781-21 005-891-02 006-193-55 006-541-24 006-561-21 005-261-41 005-781-22 005-891-03 006-193-56 006-541-25 006-561-22 005-261-42 005-781-23 005-941-01 006-203-23 006-541-28 006-561-23 005-271-15 005-781-66 005-941-02 006-203-24 006-551-01 006-561-24 005-271-16 005-791-01 005-941-03 006-203-25 006-551-02 006-571-01 005-271-17 005-791-02 005-941-04 006-361-01 006-551-03 006-571-02 005-271-18 005-791-03 005-941-05 006-361-02 006-551-04 006-571-03 005-271-19 005-791-04 005-941-06 006-361-03 006-551-05 006-571-04 005-271-21 005-791-05 005-941-07 006-361-23 006-551-06 006-571-05 005-271-22 005-791-06 005-941-08 006-361-24 006-551-07 006-571-06 005-273-12 005-791-07 005-941-09 006-362-07 006-551-08 006-571-07 005-281-32 005-791-08 005-941-10 006-362-11 006-551-09 006-571-08 005-282-41 005-801-01 005-941-11 006-364-01 006-551-10 007-011-07 005-282-42 005-801-02 005-941-12 006-364-02 006-551-11 007-011-08 005-282-43 005-801-03 005-941-13 006-364-03 006-551-12 007-011-09 005-282-45 005-801-04 005-941-14 006-364-04 006-551-13 007-011-10 005-282-46 005-801-05 005-941-15 006-364-05 006-551-14 007-012-17 005-282-48 005-801-06 005-941-16 006-365-01 006-551-15 007-012-18 005-282-49 005-801-07 005-951-01 006-493-03 006-551-16 007-021-01 005-283-10 005-801-08 005-951-02 006-493-26 006-551-17 007-021-02 005-302-27 005-811-01 005-951-03 006-493-27 006-551-18 007-021-03 005-302-28 005-811-02 005-951-04 006-493-28 006-551-19 007-021-04 005-541-01 005-811-03 005-951-05 006-511-01 006-551-20 007-021-05 005-541-02 005-811-04 005-961-01 006-511-01 006-551-21 007-021-06 005-541-03 005-811-05 006-181-17 006-511-02 006-551-22 007-021-07 005-541-04 005-811-06 006-181-18 006-511-03 006-551-23 007-021-08 005-541-05 005-811-07 006-181-33 006-511-04 006-551-24 007-021-09 005-781-01 005-811-08 006-181-75 006-511-06 006-561-01 007-021-10 9/1/2025 Page 3 of 6 19.29
Appendix B to Infrastructure Financing Plan (IFP) - Santa Cruz EIFD Parcel List DRAFT 007-021-17 007-211-01 007-261-01 007-321-05 007-461-02 007-551-01 007-022-04 007-212-01 007-261-02 007-321-06 007-461-03 007-551-02 007-022-05 007-212-02 007-261-03 007-321-08 007-461-04 007-561-01 007-022-06 007-212-03 007-261-04 007-321-09 007-471-01 007-571-01 007-022-07 007-212-04 007-261-05 007-321-10 007-471-02 008-011-03 007-022-08 007-212-05 007-261-06 007-331-01 007-471-03 008-011-08 007-022-10 007-212-07 007-261-07 007-331-02 007-481-01 008-011-11 007-023-17 007-212-08 007-261-08 007-331-03 007-481-02 008-011-12 007-023-18 007-212-09 007-261-09 007-331-04 007-481-03 008-011-14 007-023-19 007-212-10 007-261-10 007-331-05 007-491-01 008-013-01 007-023-20 007-212-11 007-261-11 007-331-06 007-491-02 008-013-03 007-023-21 007-212-14 007-261-12 007-331-07 007-501-01 008-013-07 007-023-22 007-212-15 007-261-13 007-331-08 007-501-02 008-013-08 007-023-23 007-212-16 007-262-01 007-331-09 007-501-03 008-021-12 007-023-24 007-213-04 007-262-03 007-341-01 007-501-04 008-021-13 007-023-25 007-213-05 007-262-04 007-341-02 007-501-05 008-021-14 007-023-26 007-213-06 007-262-06 007-341-03 007-501-06 008-021-15 007-023-27 007-213-07 007-262-07 007-341-04 007-501-07 008-021-20 007-031-04 007-213-08 007-262-08 007-341-05 007-501-08 008-021-29 007-032-01 007-214-01 007-262-09 007-341-06 007-501-09 008-021-34 007-033-01 007-214-02 007-262-10 007-341-07 007-511-01 008-021-36 007-033-02 007-215-01 007-263-06 007-341-08 007-511-02 008-021-37 007-033-03 007-215-02 007-263-07 007-351-01 007-511-03 008-021-38 007-033-04 007-215-03 007-272-01 007-351-02 007-511-04 008-021-39 007-033-15 007-215-04 007-272-02 007-351-03 007-511-05 008-021-40 007-034-01 007-215-05 007-272-03 007-351-04 007-511-06 008-032-01 007-034-02 007-216-01 007-272-10 007-351-05 007-511-07 008-082-01 007-034-03 007-216-02 007-281-01 007-351-06 007-521-01 008-082-02 007-034-04 007-221-01 007-281-02 007-361-01 007-521-02 008-101-16 007-034-05 007-221-02 007-281-03 007-371-01 007-521-03 008-161-01 007-034-06 007-221-03 007-281-04 007-381-01 007-521-04 008-161-05 007-034-07 007-221-04 007-292-12 007-391-01 007-521-05 008-161-07 007-041-01 007-221-05 007-292-13 007-391-02 007-521-06 008-161-08 007-041-02 007-221-06 007-292-14 007-403-04 007-531-01 008-161-09 007-041-03 007-221-07 007-292-15 007-403-05 007-531-02 008-161-10 007-051-01 007-221-08 007-292-16 007-403-06 007-531-03 008-161-13 007-061-01 007-221-09 007-292-17 007-403-07 007-531-04 008-161-14 007-103-02 007-231-01 007-293-06 007-403-18 007-531-05 008-161-15 007-103-10 007-231-02 007-293-07 007-403-19 007-531-06 008-161-20 007-103-11 007-241-01 007-293-08 007-403-20 007-531-07 008-161-21 007-103-12 007-241-02 007-293-09 007-403-21 007-541-01 008-161-22 007-103-13 007-241-03 007-293-10 007-403-22 007-541-02 008-161-23 007-103-14 007-241-04 007-293-11 007-403-23 007-541-03 008-161-24 007-103-15 007-251-01 007-321-01 007-411-02 007-541-04 008-161-25 007-151-01 007-251-02 007-321-02 007-411-04 007-541-05 008-162-01 007-151-02 007-251-03 007-321-03 007-431-01 007-541-06 008-162-02 007-151-10 007-251-04 007-321-04 007-461-01 007-541-07 008-162-03 9/1/2025 Page 4 of 6 19.30
Appendix B to Infrastructure Financing Plan (IFP) - Santa Cruz EIFD Parcel List DRAFT 008-162-08 008-232-13 008-311-15 008-331-49 008-711-03 009-253-25 008-162-11 008-232-14 008-311-29 008-332-10 008-711-04 010-011-13 008-162-12 008-232-15 008-311-32 008-332-15 009-201-09 010-011-16 008-162-13 008-232-16 008-311-33 008-332-17 009-201-26 010-011-27 008-162-14 008-241-10 008-311-34 008-332-18 009-201-27 010-011-30 008-162-16 008-241-11 008-311-37 008-332-19 009-201-28 010-011-31 008-162-18 008-241-12 008-311-38 008-332-22 009-201-29 010-011-33 008-162-19 008-241-25 008-322-17 008-332-23 009-201-30 010-012-06 008-162-20 008-242-22 008-322-18 008-332-24 009-201-31 010-012-07 008-163-06 008-242-23 008-322-39 008-332-34 009-212-29 010-012-09 008-163-07 008-251-01 008-322-40 008-332-35 009-212-30 010-012-13 008-171-01 008-251-21 008-322-43 008-332-36 009-212-31 010-012-20 008-171-24 008-251-23 008-323-02 008-333-10 009-212-33 010-012-29 008-171-25 008-253-01 008-323-03 008-541-01 009-212-34 010-012-51 008-171-31 008-253-12 008-323-04 008-541-02 009-212-35 010-012-51 008-171-33 008-253-17 008-323-05 008-541-03 009-212-36 010-022-11 008-172-08 008-253-18 008-323-06 008-541-04 009-212-37 010-022-12 008-172-16 008-253-19 008-323-12 008-551-10 009-212-38 010-022-13 008-172-18 008-253-20 008-323-13 008-551-15 009-233-10 010-022-14 008-172-19 008-281-06 008-323-18 008-551-16 009-233-11 010-022-15 008-173-02 008-281-09 008-323-27 008-551-17 009-233-14 010-022-23 008-174-01 008-281-10 008-331-02 008-551-18 009-233-15 010-022-25 008-174-05 008-281-11 008-331-03 008-601-01 009-233-16 010-022-37 008-174-06 008-281-12 008-331-04 008-601-03 009-233-17 010-031-15 008-174-09 008-281-13 008-331-05 008-601-05 009-233-20 010-031-38 008-181-16 008-281-15 008-331-06 008-601-06 009-233-21 010-031-39 008-181-17 008-282-02 008-331-07 008-601-07 009-234-25 010-031-48 008-181-21 008-282-05 008-331-08 008-601-08 009-234-26 010-031-54 008-181-23 008-282-06 008-331-12 008-601-09 009-234-27 010-031-57 008-181-26 008-291-02 008-331-13 008-661-01 009-234-59 010-031-62 008-182-01 008-291-21 008-331-14 008-661-07 009-234-60 010-031-64 008-182-05 008-291-24 008-331-15 008-661-11 009-234-61 010-031-70 008-182-26 008-291-70 008-331-25 008-661-12 009-234-62 010-031-72 008-182-27 008-291-72 008-331-26 008-661-13 009-242-10 010-031-76 008-182-38 008-291-73 008-331-27 008-661-14 009-242-11 010-031-77 008-182-39 008-291-74 008-331-28 008-661-15 009-242-12 010-031-79 008-221-02 008-302-19 008-331-29 008-661-17 009-242-13 010-041-08 008-221-03 008-302-20 008-331-30 008-661-18 009-242-26 010-041-09 008-221-04 008-303-01 008-331-31 008-691-01 009-243-11 010-041-10 008-221-12 008-303-16 008-331-32 008-691-02 009-243-12 010-041-31 008-221-15 008-311-05 008-331-35 008-701-01 009-243-26 010-042-01 008-221-16 008-311-06 008-331-36 008-701-02 009-243-27 010-042-02 008-222-04 008-311-07 008-331-37 008-701-03 009-244-12 010-042-03 008-222-06 008-311-10 008-331-40 008-701-04 009-244-13 010-042-04 008-231-42 008-311-12 008-331-41 008-701-05 009-244-18 010-042-11 008-231-44 008-311-13 008-331-45 008-711-01 009-253-09 010-042-12 008-232-12 008-311-14 008-331-48 008-711-02 009-253-10 010-042-13 9/1/2025 Page 5 of 6 19.31
Appendix B to Infrastructure Financing Plan (IFP) - Santa Cruz EIFD Parcel List DRAFT 010-042-14 010-081-02 011-012-36
010-042-15 010-081-03 011-012-38
010-042-18 010-081-04 011-023-01
010-042-19 010-081-07 011-024-30
010-042-20 010-081-08 011-025-01
010-042-21 010-081-09 011-025-09
010-042-34 010-081-10 011-025-14
010-042-35 010-081-30 011-261-01
010-042-36 010-081-31 011-261-02
010-042-37 010-102-01 011-261-03
010-042-38 010-165-18 011-261-07
010-042-39 010-391-01 011-261-08
010-051-02 010-391-02 011-261-11
010-051-03 010-391-03 011-261-12
010-051-04 010-391-04 011-261-13
010-051-05 010-391-05 011-261-14
010-051-06 010-391-06 011-261-15
010-051-07 010-391-07 011-291-01
010-051-31 010-391-08 011-291-04
010-051-32 010-391-09 011-291-05
010-051-37 010-391-10 011-291-06
010-051-38 010-551-01 011-291-11
010-051-43 010-551-02
010-051-46 010-551-03
010-051-49 010-551-07
010-051-53 010-551-10
010-051-54 010-551-23
010-062-05 010-551-24
010-062-06 010-551-25
010-062-07 010-551-26
010-062-10 010-551-31
010-062-11 010-561-01
010-062-12 010-561-02
010-062-15 010-561-03
010-062-16 010-561-04
010-062-17 010-561-05
010-062-18 010-561-06
010-072-01 010-561-30
010-072-03 010-571-01
010-072-03 010-571-02
010-072-75 010-571-03
010-072-76 010-571-04
010-072-76 010-581-01
010-072-77 010-581-02
010-072-77 011-012-15
010-072-78 011-012-25
010-081-01 011-012-30
9/1/2025 Page 6 of 6 19.32
Appendix C to IFP - Tax Increment Revenue Analysis - Santa Cruz EIFD DRAFT 0 1 2 3 4 5 6 7
Total 2025-2026 2027 2028 2029 2030 2031 2032 2033
New Development
Rental Residential 2,382 units 238 units 238 units 238 units 238 units 238 units 238 units 238 units $500,000 per unit $1,356,797,887 $123,911,640 $126,389,873 $128,917,670 $131,496,024 $134,125,944 $136,808,463 $139,544,632 For Sale Residential 79 units 8 units 8 units 8 units 8 units 8 units 8 units 8 units $900,000 per unit $80,997,758 $7,397,244 $7,545,189 $7,696,093 $7,850,015 $8,007,015 $8,167,155 $8,330,498 Affordable Residential 675 units 68 units 68 units 68 units 68 units 68 units 68 units 68 units $0 per unit $0 $0 $0 $0 $0 $0 $0 $0
Commercial / Retail 75,115 SF 7,512 SF 7,512 SF 7,512 SF 7,512 SF 7,512 SF 7,512 SF 7,512 SF $375 PSF $32,089,381 $2,930,612 $2,989,224 $3,049,008 $3,109,989 $3,172,188 $3,235,632 $3,300,345 Hotel 401 rooms 170 rooms 181 rooms 50 rooms
$500,000 per room $216,507,373 $88,434,000 $0 $0 $99,919,313 $28,154,060 $0 $0 Industrial / Flex 126,445 SF 12,645 SF 12,645 SF 12,645 SF 12,645 SF 12,645 SF 12,645 SF 12,645 SF $200 PSF $28,809,456 $2,631,068 $2,683,689 $2,737,363 $2,792,110 $2,847,952 $2,904,911 $2,963,009 Subtotal Value Add $1,715,201,854 $225,304,563 $139,607,975 $142,400,134 $245,167,449 $176,307,160 $151,116,161 $154,138,485 Total Assessed Value $1,958,542,088 $2,223,017,493 $2,407,085,818 $2,597,627,668 $2,894,747,671 $3,128,949,784 $3,342,644,941 $3,563,636,325 Incremental AV $264,475,405 $448,543,729 $639,085,580 $936,205,583 $1,170,407,696 $1,384,102,853 $1,605,094,237 Total tax increment @ 1% $2,644,754 $4,485,437 $6,390,856 $9,362,056 $11,704,077 $13,841,029 $16,050,942 City Average Share Available 16.20% $320,032,688 $428,450 $726,641 $1,035,319 $1,516,653 $1,896,060 $2,242,247 $2,600,253 Percent Allocated to EIFD 50.0% $160,016,344 $214,225 $363,320 $517,659 $758,327 $948,030 $1,121,123 $1,300,126 City Equivalent MVLF Share 5.75% $113,661,656 $152,167 $258,071 $367,700 $538,649 $673,398 $796,348 $923,496 Percent Allocated to EIFD 50.0% $56,830,828 $76,083 $129,036 $183,850 $269,325 $336,699 $398,174 $461,748 Total Allocation to EIFD $216,847,172 $290,308 $492,356 $701,509 $1,027,651 $1,284,729 $1,519,297 $1,761,875 September 2025 19.33 Page 1 of 7
Appendix C to IFP - Tax Increment Revenue Analysis - Santa Cruz EIFD DRAFT Total
New Development
Rental Residential 2,382 units
$500,000 per unit $1,356,797,887
For Sale Residential 79 units
$900,000 per unit $80,997,758
Affordable Residential 675 units
$0 per unit $0
Commercial / Retail 75,115 SF
$375 PSF $32,089,381
Hotel 401 rooms
$500,000 per room $216,507,373
Industrial / Flex 126,445 SF
$200 PSF $28,809,456
Subtotal Value Add $1,715,201,854
Total Assessed Value
Incremental AV
Total tax increment @ 1%
City Average Share Available 16.20% $320,032,688
Percent Allocated to EIFD 50.0% $160,016,344
City Equivalent MVLF Share 5.75% $113,661,656
Percent Allocated to EIFD 50.0% $56,830,828
Total Allocation to EIFD $216,847,172
8 9 10 11 12 13 14 15
2034 2035 2036 2037 2038 2039 2040 2041
238 units 238 units 238 units
$142,335,525 $145,182,235 $148,085,880 $0 $0 $0 $0 $0
8 units 8 units 8 units
$8,497,108 $8,667,050 $8,840,391 $0 $0 $0 $0 $0
68 units 68 units 68 units
$0 $0 $0 $0 $0 $0 $0 $0
7,512 SF 7,512 SF 7,512 SF
$3,366,352 $3,433,679 $3,502,352 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
12,645 SF 12,645 SF 12,645 SF
$3,022,270 $3,082,715 $3,144,369 $0 $0 $0 $0 $0
$157,221,254 $160,365,679 $163,572,993 $0 $0 $0 $0 $0
$3,792,130,306 $4,028,338,591 $4,272,478,356 $4,357,927,923 $4,445,086,482 $4,533,988,211 $4,624,667,976 $4,717,161,335 $1,833,588,217 $2,069,796,503 $2,313,936,268 $2,399,385,835 $2,486,544,394 $2,575,446,123 $2,666,125,887 $2,758,619,247 $18,335,882 $20,697,965 $23,139,363 $23,993,858 $24,865,444 $25,754,461 $26,661,259 $27,586,192 $2,970,413 $3,353,070 $3,748,577 $3,887,005 $4,028,202 $4,172,223 $4,319,124 $4,468,963 $1,485,206 $1,676,535 $1,874,288 $1,943,503 $2,014,101 $2,086,111 $2,159,562 $2,234,482 $1,054,961 $1,190,864 $1,331,331 $1,380,495 $1,430,642 $1,481,792 $1,533,964 $1,587,181 $527,481 $595,432 $665,666 $690,247 $715,321 $740,896 $766,982 $793,590 $2,012,687 $2,271,967 $2,539,954 $2,633,750 $2,729,422 $2,827,007 $2,926,544 $3,028,072 September 2025 19.34 Page 2 of 7
Appendix C to IFP - Tax Increment Revenue Analysis - Santa Cruz EIFD DRAFT Total
New Development
Rental Residential 2,382 units
$500,000 per unit $1,356,797,887
For Sale Residential 79 units
$900,000 per unit $80,997,758
Affordable Residential 675 units
$0 per unit $0
Commercial / Retail 75,115 SF
$375 PSF $32,089,381
Hotel 401 rooms
$500,000 per room $216,507,373
Industrial / Flex 126,445 SF
$200 PSF $28,809,456
Subtotal Value Add $1,715,201,854
Total Assessed Value
Incremental AV
Total tax increment @ 1%
City Average Share Available 16.20% $320,032,688
Percent Allocated to EIFD 50.0% $160,016,344
City Equivalent MVLF Share 5.75% $113,661,656
Percent Allocated to EIFD 50.0% $56,830,828
Total Allocation to EIFD $216,847,172
16 17 18 19 20 21 22 23
2042 2043 2044 2045 2046 2047 2048 2049
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$4,811,504,562 $4,907,734,653 $5,005,889,346 $5,106,007,133 $5,208,127,276 $5,312,289,821 $5,418,535,618 $5,526,906,330 $2,852,962,474 $2,949,192,565 $3,047,347,258 $3,147,465,045 $3,249,585,187 $3,353,747,733 $3,459,993,529 $3,568,364,242 $28,529,625 $29,491,926 $30,473,473 $31,474,650 $32,495,852 $33,537,477 $34,599,935 $35,683,642 $4,621,799 $4,777,692 $4,936,703 $5,098,893 $5,264,328 $5,433,071 $5,605,190 $5,780,750 $2,310,900 $2,388,846 $2,468,351 $2,549,447 $2,632,164 $2,716,536 $2,802,595 $2,890,375 $1,641,462 $1,696,828 $1,753,301 $1,810,905 $1,869,660 $1,929,590 $1,990,719 $2,053,070 $820,731 $848,414 $876,651 $905,452 $934,830 $964,795 $995,359 $1,026,535 $3,131,630 $3,237,260 $3,345,002 $3,454,899 $3,566,994 $3,681,331 $3,797,954 $3,916,910 September 2025 19.35 Page 3 of 7
Appendix C to IFP - Tax Increment Revenue Analysis - Santa Cruz EIFD DRAFT Total
New Development
Rental Residential 2,382 units
$500,000 per unit $1,356,797,887
For Sale Residential 79 units
$900,000 per unit $80,997,758
Affordable Residential 675 units
$0 per unit $0
Commercial / Retail 75,115 SF
$375 PSF $32,089,381
Hotel 401 rooms
$500,000 per room $216,507,373
Industrial / Flex 126,445 SF
$200 PSF $28,809,456
Subtotal Value Add $1,715,201,854
Total Assessed Value
Incremental AV
Total tax increment @ 1%
City Average Share Available 16.20% $320,032,688
Percent Allocated to EIFD 50.0% $160,016,344
City Equivalent MVLF Share 5.75% $113,661,656
Percent Allocated to EIFD 50.0% $56,830,828
Total Allocation to EIFD $216,847,172
24 25 26 27 28 29 30 31
2050 2051 2052 2053 2054 2055 2056 2057
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$5,637,444,457 $5,750,193,346 $5,865,197,213 $5,982,501,157 $6,102,151,180 $6,224,194,204 $6,348,678,088 $6,475,651,649 $3,678,902,368 $3,791,651,258 $3,906,655,124 $4,023,959,069 $4,143,609,092 $4,265,652,115 $4,390,135,999 $4,517,109,561 $36,789,024 $37,916,513 $39,066,551 $40,239,591 $41,436,091 $42,656,521 $43,901,360 $45,171,096 $5,959,822 $6,142,475 $6,328,781 $6,518,814 $6,712,647 $6,910,356 $7,112,020 $7,317,717 $2,979,911 $3,071,238 $3,164,391 $3,259,407 $3,356,323 $3,455,178 $3,556,010 $3,658,859 $2,116,669 $2,181,539 $2,247,707 $2,315,198 $2,384,039 $2,454,257 $2,525,879 $2,598,934 $1,058,334 $1,090,770 $1,123,854 $1,157,599 $1,192,020 $1,227,129 $1,262,940 $1,299,467 $4,038,245 $4,162,007 $4,288,244 $4,417,006 $4,548,343 $4,682,307 $4,818,950 $4,958,326 September 2025 19.36 Page 4 of 7
Appendix C to IFP - Tax Increment Revenue Analysis - Santa Cruz EIFD DRAFT Total
New Development
Rental Residential 2,382 units
$500,000 per unit $1,356,797,887
For Sale Residential 79 units
$900,000 per unit $80,997,758
Affordable Residential 675 units
$0 per unit $0
Commercial / Retail 75,115 SF
$375 PSF $32,089,381
Hotel 401 rooms
$500,000 per room $216,507,373
Industrial / Flex 126,445 SF
$200 PSF $28,809,456
Subtotal Value Add $1,715,201,854
Total Assessed Value
Incremental AV
Total tax increment @ 1%
City Average Share Available 16.20% $320,032,688
Percent Allocated to EIFD 50.0% $160,016,344
City Equivalent MVLF Share 5.75% $113,661,656
Percent Allocated to EIFD 50.0% $56,830,828
Total Allocation to EIFD $216,847,172
32 33 34 35 36 37 38 39
2058 2059 2060 2061 2062 2063 2064 2065
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$6,605,164,682 $6,737,267,976 $6,872,013,336 $7,009,453,602 $7,149,642,674 $7,292,635,528 $7,438,488,238 $7,587,258,003 $4,646,622,594 $4,778,725,888 $4,913,471,247 $5,050,911,514 $5,191,100,586 $5,334,093,440 $5,479,946,150 $5,628,715,915 $46,466,226 $47,787,259 $49,134,712 $50,509,115 $51,911,006 $53,340,934 $54,799,462 $56,287,159 $7,527,529 $7,741,536 $7,959,823 $8,182,477 $8,409,583 $8,641,231 $8,877,513 $9,118,520 $3,763,764 $3,870,768 $3,979,912 $4,091,238 $4,204,791 $4,320,616 $4,438,756 $4,559,260 $2,673,450 $2,749,456 $2,826,982 $2,906,059 $2,986,717 $3,068,989 $3,152,905 $3,238,501 $1,336,725 $1,374,728 $1,413,491 $1,453,029 $1,493,359 $1,534,494 $1,576,453 $1,619,250 $5,100,489 $5,245,496 $5,393,403 $5,544,268 $5,698,150 $5,855,110 $6,015,209 $6,178,510 September 2025 19.37 Page 5 of 7
Appendix C to IFP - Tax Increment Revenue Analysis - Santa Cruz EIFD DRAFT Total
New Development
Rental Residential 2,382 units
$500,000 per unit $1,356,797,887
For Sale Residential 79 units
$900,000 per unit $80,997,758
Affordable Residential 675 units
$0 per unit $0
Commercial / Retail 75,115 SF
$375 PSF $32,089,381
Hotel 401 rooms
$500,000 per room $216,507,373
Industrial / Flex 126,445 SF
$200 PSF $28,809,456
Subtotal Value Add $1,715,201,854
Total Assessed Value
Incremental AV
Total tax increment @ 1%
City Average Share Available 16.20% $320,032,688
Percent Allocated to EIFD 50.0% $160,016,344
City Equivalent MVLF Share 5.75% $113,661,656
Percent Allocated to EIFD 50.0% $56,830,828
Total Allocation to EIFD $216,847,172
40 41 42 43 44 45 46 47
2066 2067 2068 2069 2070 2071 2072 2073
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0
$7,739,003,163 $7,893,783,227 $8,051,658,891 $8,212,692,069 $8,376,945,910 $8,544,484,828 $8,715,374,525 $8,889,682,016 $5,780,461,075 $5,935,241,138 $6,093,116,803 $6,254,149,981 $6,418,403,822 $6,585,942,740 $6,756,832,437 $6,931,139,927 $57,804,611 $59,352,411 $60,931,168 $62,541,500 $64,184,038 $65,859,427 $67,568,324 $69,311,399 $9,364,347 $9,615,091 $9,870,849 $10,131,723 $10,397,814 $10,669,227 $10,946,069 $11,228,447 $4,682,173 $4,807,545 $4,935,425 $5,065,861 $5,198,907 $5,334,614 $5,473,034 $5,614,223 $3,325,808 $3,414,861 $3,505,695 $3,598,346 $3,692,850 $3,789,244 $3,887,566 $3,987,855 $1,662,904 $1,707,430 $1,752,848 $1,799,173 $1,846,425 $1,894,622 $1,943,783 $1,993,927 $6,345,077 $6,514,976 $6,688,272 $6,865,035 $7,045,332 $7,229,236 $7,416,817 $7,608,151 September 2025 19.38 Page 6 of 7
Appendix C to IFP - Tax Increment Revenue Analysis - Santa Cruz EIFD DRAFT Total
New Development
Rental Residential 2,382 units
$500,000 per unit $1,356,797,887
For Sale Residential 79 units
$900,000 per unit $80,997,758
Affordable Residential 675 units
$0 per unit $0
Commercial / Retail 75,115 SF
$375 PSF $32,089,381
Hotel 401 rooms
$500,000 per room $216,507,373
Industrial / Flex 126,445 SF
$200 PSF $28,809,456
Subtotal Value Add $1,715,201,854
Total Assessed Value
Incremental AV
Total tax increment @ 1%
City Average Share Available 16.20% $320,032,688
Percent Allocated to EIFD 50.0% $160,016,344
City Equivalent MVLF Share 5.75% $113,661,656
Percent Allocated to EIFD 50.0% $56,830,828
Total Allocation to EIFD $216,847,172
48 49 50
2074 2075 2076
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$9,067,475,656 $9,248,825,169 $9,433,801,672
$7,108,933,568 $7,290,283,081 $7,475,259,584
$71,089,336 $72,902,831 $74,752,596
$11,516,472 $11,810,259 $12,109,921
$5,758,236 $5,905,129 $6,054,960
$4,090,149 $4,194,489 $4,300,916
$2,045,074 $2,097,244 $2,150,458
$7,803,311 $8,002,374 $8,205,418
September 2025 19.39 Page 7 of 7
Santa Cruz EIFD - Fiscal Impact Analysis DRAFT
Overview of Fiscal Impacts Key Land Use Assumptions (Buildout) Annual
Stabilized
Year 0-50
Nominal
Total
Year 0-50
Present Value
@ 3.0%
City of Santa Cruz Residential - Market Rate Rental 2,382 DU Estimated Fiscal Revenues (Net of 50% EIFD Allocation) $22,113,800 $1,371,548,100 $549,782,500 Residential - Market Rate For-Sale 79 DU Estimated Fiscal Expenditures ($20,257,000) ($1,247,203,000) ($495,886,800) Residential - Affordable Housing 675 DU Estimated Net Fiscal Impact to City $1,856,800 $124,345,100 $53,895,700 Hotel 401 rooms Industrial / Flex 126,445 SF
Commercial / Retail 75,115 SF
Notes:

Assumes installation of necessary public infrastructure Assumes 10-20 year absorption and 50-year financing district duration Actual absorption will depend on market conditions and other factors Values in 2025 dollars
Project Component
September 2025 19.40 Page 1 of 15
Santa Cruz EIFD - Fiscal Impact Analysis DRAFT
Summary of Estimated Fiscal Impacts to City Stabilized
Year 5 Year 10 Year 20 Year 30 Year 40 Year 50 Year 55
2031 2036 2046 2056 2066 2076 2081
Stabilized
Escalation
Rate
Year 0-50 Nominal
Total
Year 0-50
Present Value @

3.0%
City of Santa Cruz General Fund Revenues
Property / Possessory Interest Tax $1,654,500 $3,356,000 $4,510,100 $6,061,197 $8,145,742 $10,947,196 $12,690,801 3.0% $278,659,100 $111,228,800 Property Tax Allocation to EIFD ($827,300) ($1,678,000) ($2,255,100) ($3,030,666) ($4,072,961) ($5,473,720) $0 3.0% ($139,332,000) ($55,615,200) Property Tax In-Lieu of MVLF $572,500 $1,172,300 $1,575,400 $2,117,206 $2,845,348 $3,823,909 $4,432,959 3.0% $97,308,200 $38,828,500 Property Tax In-Lieu of MVLF Allocation to EIFD ($286,250) ($586,150) ($787,700) ($1,058,603) ($1,422,674) ($1,911,955) $0 3.0% ($48,654,100) ($19,414,300) Property Transfer Tax $26,200 $53,400 $71,800 $96,493 $129,679 $174,277 $202,035 3.0% $4,435,300 $1,770,000 Sales and Use Tax - Direct / On-Site $244,300 $566,300 $761,100 $1,022,855 $1,374,631 $1,847,389 $2,141,631 3.0% $46,840,500 $18,615,100 Measure H Transactions Tax - Direct / On-Site $65,300 $151,400 $203,500 $273,487 $367,544 $493,948 $572,621 3.0% $12,523,900 $4,977,200 Sales and Use Tax - Indirect / Off-Site $660,900 $1,438,100 $1,932,700 $2,597,387 $3,490,671 $4,691,170 $5,438,352 3.0% $119,159,700 $47,451,200 Measure H Transaction Tax - Indirect / Off-Site $176,700 $384,500 $516,800 $694,536 $933,398 $1,254,409 $1,454,204 3.0% $31,862,400 $12,687,900 Transient Occupancy Tax $3,563,200 $4,130,700 $5,551,400 $7,460,617 $10,026,446 $13,474,705 $15,620,876 3.0% $351,033,300 $143,678,000 Utility Users Tax $704,800 $1,604,500 $2,156,300 $2,897,887 $3,894,518 $5,233,906 $6,067,532 3.0% $132,773,400 $52,796,100 Franchise Tax $246,900 $562,000 $755,200 $1,014,926 $1,363,975 $1,833,069 $2,125,029 3.0% $46,501,700 $18,491,100 Admission Tax $101,000 $230,000 $309,100 $415,405 $558,269 $750,267 $869,765 3.0% $19,033,100 $7,568,400 Business License Tax $18,300 $29,400 $39,500 $53,085 $71,341 $95,877 $111,148 3.0% $2,461,200 $991,500 Parking Lot Tax $30,100 $68,500 $92,000 $123,640 $166,162 $223,308 $258,875 3.0% $5,664,700 $2,252,500 Other Taxes $101,100 $230,100 $309,200 $415,539 $558,450 $750,510 $870,046 3.0% $19,038,800 $7,570,600 Licenses and Permits $0 $0 $0 $0 $0 $0 $0 3.0% $0 $0
Grants and Intergovernmental $0 $0 $0 $0 $0 $0 $0 3.0% $0 $0 Charges for Services $1,519,700 $3,523,400 $4,735,100 $6,363,578 $8,552,117 $11,493,331 $13,323,920 3.0% $291,416,200 $115,813,800 Fines and Forfeitures $66,600 $151,600 $203,800 $273,890 $368,085 $494,676 $573,465 3.0% $12,548,500 $4,989,700 Rents and Miscellaneous Revenues $156,800 $357,000 $479,800 $644,811 $866,572 $1,164,601 $1,350,091 3.0% $29,543,700 $11,747,800 Other Financing Sources $311,800 $709,700 $953,800 $1,281,827 $1,722,669 $2,315,123 $2,683,862 3.0% $58,730,500 $23,353,800 Estimated Total Revenues $9,107,150 $16,454,750 $22,113,800 $29,719,098 $39,939,983 $53,675,997 $70,787,212 $1,371,548,100 $549,782,500 City of Santa Cruz General Fund Expenditures
City Attorney $45,500 $103,600 $139,300 $187,208 $251,591 $338,118 $391,971 3.0% $8,577,400 $3,410,700 City Council $15,600 $35,500 $47,700 $64,105 $86,152 $115,780 $134,221 3.0% $2,937,500 $1,168,200 City Manager $412,000 $937,900 $1,260,400 $1,693,872 $2,276,423 $3,059,322 $3,546,592 3.0% $77,609,500 $30,860,900 City - Non-Departmental $282,400 $642,900 $863,900 $1,161,009 $1,560,299 $2,096,912 $2,430,896 3.0% $53,195,100 $21,152,800 Economic Development $113,700 $258,900 $347,900 $467,549 $628,346 $844,445 $978,943 3.0% $21,421,800 $8,518,200 Finance $123,900 $282,000 $379,000 $509,344 $684,516 $919,932 $1,066,454 3.0% $23,336,400 $9,279,400 Fire $1,401,000 $3,189,500 $4,286,400 $5,760,563 $7,741,715 $10,404,218 $12,061,340 3.0% $263,935,000 $104,951,700 Human Resources $51,300 $116,900 $157,100 $211,129 $283,740 $381,323 $442,058 3.0% $9,673,000 $3,846,300 Information Technology $174,900 $398,200 $535,200 $719,264 $966,631 $1,299,071 $1,505,979 3.0% $32,954,500 $13,104,000 Library (City) $116,300 $269,700 $362,400 $487,035 $654,535 $879,640 $1,019,744 3.0% $22,303,800 $8,864,000 Parks and Recreation $1,127,500 $2,614,100 $3,513,200 $4,721,447 $6,345,230 $8,527,459 $9,885,662 3.0% $216,214,800 $85,927,200 Planning and Community Development $227,400 $517,800 $695,800 $935,097 $1,256,692 $1,688,889 $1,957,885 3.0% $42,844,300 $17,036,800 Police $1,880,200 $4,280,300 $5,752,400 $7,730,745 $10,389,474 $13,962,585 $16,186,462 3.0% $354,203,900 $140,846,400 Public Works $626,400 $1,425,900 $1,916,300 $2,575,347 $3,461,051 $4,651,363 $5,392,205 3.0% $117,996,000 $46,920,200 Estimated Total Expenditures $6,598,100 $15,073,200 $20,257,000 $27,223,714 $36,586,395 $49,169,056 $57,000,412 $1,247,203,000 $495,886,800 Estimated Annual Net Fiscal Impact $2,509,050 $1,381,550 $1,856,800 $2,495,384 $3,353,587 $4,506,941 $13,786,800 $124,345,100 $53,895,700 Revenue / Cost Ratio 1.38 1.09 1.09 1.09 1.09 1.09 1.24 1.10 1.11 Notes:

Assumes installation of necessary public infrastructure Values in 2025 dollars
Select years shown for illustration
September 2025 19.41 Page 2 of 15
Santa Cruz EIFD - Fiscal Impact Analysis DRAFT
Project Description
Year 5 Year 10 Year 20
Project Component 2031 2036 2046
Residential - Market Rate Rental 1,191 DU 2,382 DU 2,382 DU Residential - Market Rate For-Sale 40 DU 79 DU 79 DU
Residential - Affordable Housing 338 DU 675 DU 675 DU
Hotel 401 rooms 401 rooms 401 rooms
Industrial / Flex 63,223 SF 126,445 SF 126,445 SF
Commercial / Retail 37,558 SF 75,115 SF 75,115 SF
Annual Escalation Factor 3.0% 1.16 1.34 1.81
Estimated A/V - Residential - Market Rental $500K Per Unit $690,347,711 $1,600,604,408 $2,151,078,480 Estimated A/V - Residential - Market For Sale $900K Per Unit $41,212,193 $95,552,455 $128,414,509 Estimated A/V - Affordable Housing $0K Per Unit $0 $0 $0 Estimated A/V - Hotel $500K Per Room $232,434,452 $269,455,234 $362,125,303 Estimated A/V - Industrial / Flex $200 PSF $14,658,441 $33,986,301 $45,674,747 Estimated A/V - Commercial / Retail $375 PSF $16,327,289 $37,855,605 $50,874,767 Total Estimated Assessed Value $994,980,086 $2,037,454,002 $2,738,167,806 Notes:

Adjusted for value appreciation assuming 2% annual escalation rate (statuatory maximum).

Conservatively assuming no mark-to-market valuations above 2% growth to account for property transfers Select years shown for illustration
Values in 2025 dollars
September 2025 19.42 Page 3 of 15
Santa Cruz EIFD - Fiscal Impact Analysis DRAFT
Project Employment and Occupants
Year 5 Year 10 Year 20
Project Component 2031 2036 2046
Residential - Market Rate Rental 1,191 DU 2,382 DU 2,382 DU Residential - Market Rate For-Sale 40 DU 79 DU 79 DU
Residential - Affordable Housing 338 DU 675 DU 675 DU
Hotel 401 Rooms 401 Rooms 401 Rooms
Industrial / Flex 63,223 SF 126,445 SF 126,445 SF
Commercial / Retail 37,558 SF 75,115 SF 75,115 SF
Estimated # Employees (FTE)
Residential - Market Rate Rental 50 DU / emp 24 48 48
Residential - Market Rate For-Sale 0 DU / emp 0 0 0
Residential - Affordable Housing 50 DU / emp 7 14 14
Hotel 1.5 room / emp 267 267 267
Industrial / Flex 1,500 SF / emp 42 84 84
Commercial / Retail 400 SF / emp 94 188 188
Total Estimated # Employees (FTE) 434 601 601
Occupied Dwelling Units 93% 1,458 DU 2,916 DU 2,916 DU
Residents 2.38 per DU 3,471 6,941 6,941
Employees Weighted at 50% 50% 217 300 300
Total Service Population (Residents + Empl.) 3,688 7,242 7,242 Occupied Hotel Rooms 70% 281 rooms 281 rooms 281 rooms
Hotel Guests 1.5 per room 421 421 421
Notes:

Average household size reflects City average household size Select years shown for illustration
Values in 2025 dollars
September 2025 19.43 Page 4 of 15
Santa Cruz EIFD - Fiscal Impact Analysis DRAFT
Property Tax
Year 5 Year 10 Year 20
2031 2036 2046
Estimated Assessed Value - Residential $731,559,905 $1,696,156,862 $2,279,492,989 Estimated Assessed Value - Non-Residential $263,420,181 $341,297,140 $458,674,817 Total Estimated Assessed Value $994,980,086 $2,037,454,002 $2,738,167,806 Total Secured Property Tax General Levy 1.00% $9,949,801 $20,374,540 $27,381,678 Estimated Unsecured Property Tax as % of Secured Non-Residential Value 10.00% $263,420 $341,297 $458,675 Total Estimated Secured + Unsecured Property Tax $10,213,221 $20,715,837 $27,840,353 Distributions to Taxing Entities
City of Santa Cruz 16.20% $1,654,500 $3,356,000 $4,510,100 City Allocation to EIFD (8.10%) ($827,300) ($1,678,000) ($2,255,100) Net Property Tax to City 8.10% $827,200 $1,678,000 $2,255,000 Notes:

General levy distributions represent tax rate area (TRA) average within boundary Does not include property tax overrides above 1% general levy or allocations to fire districts, County Library, or other entity distributions Select years shown for illustration
Values in 2025 dollars
Source: Santa Cruz County Auditor-Controller (2025)
September 2025 19.44 Page 5 of 15
Santa Cruz EIFD - Fiscal Impact Analysis DRAFT
Property Tax In-Lieu of Motor Vehicle License Fees (MVLF) Total AV within CITY $12,804,305,160
Current Property Tax In-Lieu of MVLF $7,367,000
Prop Tax In-Lieu of MVLF per $1M of AV $575
Year 1 Year 5 Year 10 Year 20
2027 2031 2036 2046
Estimated Project Assessed Value $223,052,384 $994,980,086 $2,037,454,002 $2,738,167,806 Incremental Property Tax In-Lieu of MVLF to City $128,300 $572,500 $1,172,300 $1,575,400 City Allocation to EIFD ($64,150) ($286,250) ($586,150) ($787,700) Net Incremental Property Tax In-Lieu of MVLF to City $64,150 $286,250 $586,150 $787,700 Notes:

Select years shown for illustration
Values in 2025 dollars
Source: Santa Cruz County Auditor-Controller (2025)
September 2025 19.45 Page 6 of 15
Santa Cruz EIFD - Fiscal Impact Analysis DRAFT
Property Transfer Tax
Year 5 Year 10 Year 20
2031 2036 2046
Estimated Assessed Value - For-Sale Residential $41,212,193 $95,552,455 $128,414,509 Estimated Property Turnover Rate 15.0% 15.0% 15.0%
Estimated Value of Property Transferred $6,181,829 $14,332,868 $19,262,176 Estimated Assessed Value - Other Land Uses $953,767,893 $1,941,901,548 $2,609,753,297 Estimated Property Turnover Rate 5.0% 5.0% 5.0%
Estimated Value of Property Transferred $47,688,395 $97,095,077 $130,487,665 Estimated Total Value of Property Transferred $53,870,224 $111,427,946 $149,749,841 Total Transfer Tax $1.10 per $1,000 $52,500 $106,800 $143,500 Transfer Tax to City $0.55 per $1,000 $26,200 $53,400 $71,800 Notes:

Select years shown for illustration
Values in 2025 dollars
Source: Santa Cruz County Auditor-Controller (2025)
September 2025 19.46 Page 7 of 15
Santa Cruz EIFD - Fiscal Impact Analysis DRAFT
Sales Tax - Direct / On-Site
Year 5 Year 10 Year 20
Project Component 2031 2036 2046
Retail SF 37,558 SF 75,115 SF 75,115 SF
Portion of Industrial Buildings Generating Local Taxable Sales 75.0% 0 SF 0 SF 0 SF Total Sales-Generating SF 37,558 SF 75,115 SF 75,115 SF Estimated Taxable Sales $300 PSF $13,061,831 $30,284,484 $40,699,814 Sales Tax to City (incl. Measure L/S) 1.75% $228,582 $529,978 $712,247 Use Tax as % of 1% Bradley Burns Sales Tax 12.00% $15,674 $36,341 $48,840 Sales and Use Tax to City - Direct $244,300 $566,300 $761,100 Measure H Transactions and Use Tax to City - Direct 0.50% $65,300 $151,400 $203,500 Notes:

County General Fund sales tax for Revenue and Taxation Code Section 7203.1 Taxable sales PSF factor escalated 3% annually
Select years shown for illustration.

Values in 2025 dollars.

September 2025 19.47 Page 8 of 15
Santa Cruz EIFD - Fiscal Impact Analysis DRAFT
Sales Tax - Indirect / Off-Site
Year 5 Year 10 Year 20
2031 2036 2046
Estimated # Employees 434 601 601
Estimated Annual Taxable Retail Spending / Empl. Near Work $6,956 $8,063 $10,837 Estimated Employee Taxable Retail Spending Within City $3,018,370 $4,842,594 $6,508,042 Estimated # Occupied Dwelling Units 1,458 DU 2,916 DU 2,916 DU Estimated Annual Taxable Retail Spending / HH $45,647 $52,917 $71,116 Estimated Resident Taxable Retail Spending $66,563,552 $154,330,801 $207,407,691 Estimated Capture within City 50.0% $33,281,776 $77,165,401 $103,703,846 Estimated # Occupied Hotel Rooms 281 rooms 281 rooms 281 rooms Estimated Annual Taxable Retail Spending / Room $21,157 $24,526 $32,962 Estimated Resident Taxable Retail Spending $5,938,700 $6,884,581 $9,252,301 Estimated Capture within City 50.0% $2,969,350 $3,442,291 $4,626,151 Total Estimated Indirect Taxable Sales $39,269,496 $85,450,286 $114,838,038 Less Estimated Capture Within District Retail (10%) ($3,926,950) ($8,545,029) ($11,483,804) Net Indirect Taxable Sales $35,342,547 $76,905,257 $103,354,235 Sales Tax to City (incl. Measure L/S) 1.75% $618,495 $1,345,842 $1,808,699 Use Tax as % of 1% Bradley Burns Sales Tax 12.00% $42,411 $92,286 $124,025 Sales and Use Tax to City - Indirect $660,900 $1,438,100 $1,932,700 Measure H Transactions and Use Tax to City - Direct 0.50% $176,700 $384,500 $516,800 Notes:

County General Fund sales tax for Revenue and Taxation Code Section 7203.1 Employee spending estimates based on "Office Worker Retail Spending Patterns: A Downtown and Suburban Area Study," ICSC.

Household spending based on average houshold income within City.

Hotel guest spending estimated based on American Hotel and Lodging Association (AHLA) data.

Adjusted for inflation assuming 3% annual inflation rate.

Select years shown for illustration.

Values in 2025 dollars.

September 2025 19.48 Page 9 of 15
Santa Cruz EIFD - Fiscal Impact Analysis DRAFT
Transient Occupancy Tax ("TOT")
Year 5 Year 10 Year 20
2031 2036 2046
Estimated # Hotel Rooms 401 rooms 401 rooms 401 rooms
Average Daily Room Rate (ADR) $290 $336 $452
Average Occupancy Rate 70% 70% 70%
Annual Hotel Room Receipts $29,693,501 $34,422,906 $46,261,507 TOT to City 12.0% $3,563,200 $4,130,700 $5,551,400
Notes:

Adjusted for inflation assuming 3% annual inflation rate.

Select years shown for illustration.

Values in 2025 dollars.

September 2025 19.49 Page 10 of 15
Santa Cruz EIFD - Fiscal Impact Analysis DRAFT
City Service Population
City Population 62,776
City Employee Population 26,009
Employee Weighting for Service Population 0.5
Weighted # Employees 13,005
Total City Service Population 75,781
Source: CA Department of Finance, U.S. Census Bureau Center for Economic Studies September 2025 19.50 Page 11 of 15
Santa Cruz EIFD - Fiscal Impact Analysis DRAFT
City Multipler Revenue and Expenditure Factors
Year 5 Year 10 Year 20
Budget Category
Adopted City
Budget Allocation Basis
Relevant City
Population Percent Fixed
Per Capita
Factor
Annual
Escalation 2031 2036 2046
General Fund Revenues
Property Taxes (incl. MVLF in-lieu) $27,144,527 Estimated Separately via Case Study Method ------------------------------------------------- Sales & Use Taxes $27,874,000 Estimated Separately via Case Study Method ------------------------------------------------- Transient Occupancy Tax $12,943,498 Estimated Separately via Case Study Method ------------------------------------------------- Utility Users Tax $12,493,500 Service Population 75,781 0% $164.86 3.0% $191.12 $221.56 $297.76 Franchise Tax $4,375,900 Service Population 75,781 0% $57.74 3.0% $66.94 $77.60 $104.29 Admission Tax $2,388,200 Service Population 75,781 25% $23.64 3.0% $27.40 $31.76 $42.69 Business License Tax $948,200 Employment Base 26,009 0% $36.46 3.0% $42.26 $48.99 $65.84 Parking Lot Tax $710,700 Service Population 75,781 25% $7.03 3.0% $8.15 $9.45 $12.70 Other Taxes $2,388,600 Service Population 75,781 25% $23.64 3.0% $27.41 $31.77 $42.70 Licenses and Permits $1,486,200 N/A - Non-Recurring Revenue ------------------------------------------------------------------------ Grants and Intergovernmental $797,684 N/A - Non-Recurring Revenue ------------------------------------------------------------------------ Charges for Services $31,614,395 Residents 62,776 25% $377.70 3.0% $437.86 $507.60 $682.18 Fines and Forfeitures $1,180,600 Service Population 75,781 0% $15.58 3.0% $18.06 $20.94 $28.14 Rents and Miscellaneous Revenues $5,560,017 Service Population 75,781 50% $36.69 3.0% $42.53 $49.30 $66.26 Other Financing Sources $7,368,679 Service Population 75,781 25% $72.93 3.0% $84.54 $98.01 $131.72 Total General Fund Revenues $139,274,700
General Fund Expenditures
City Attorney $1,614,110 Service Population 75,781 50% $10.65 3.0% $12.35 $14.31 $19.23 City Council $552,890 Service Population 75,781 50% $3.65 3.0% $4.23 $4.90 $6.59 City Manager $14,605,992 Service Population 75,781 50% $96.37 3.0% $111.72 $129.51 $174.06 City - Non-Departmental $10,011,548 Service Population 75,781 50% $66.06 3.0% $76.58 $88.77 $119.30 Economic Development $4,031,606 Service Population 75,781 50% $26.60 3.0% $30.84 $35.75 $48.04 Finance $4,391,501 Service Population 75,781 50% $28.98 3.0% $33.59 $38.94 $52.33 Fire $24,835,888 Service Population 75,781 0% $327.73 3.0% $379.93 $440.45 $591.93 Human Resources $1,820,115 Service Population 75,781 50% $12.01 3.0% $13.92 $16.14 $21.69 Information Technology $6,201,604 Service Population 75,781 50% $40.92 3.0% $47.44 $54.99 $73.90 Library (City) $1,814,751 Residents 62,776 0% $28.91 3.0% $33.51 $38.85 $52.21 Parks and Recreation $17,591,825 Residents 62,776 0% $280.23 3.0% $324.87 $376.61 $506.13 Planning and Community Development $8,063,508 Service Population 75,781 50% $53.20 3.0% $61.68 $71.50 $96.09 Police $33,330,003 Service Population 75,781 0% $439.82 3.0% $509.88 $591.09 $794.37 Public Works $11,103,183 Service Population 75,781 0% $146.52 3.0% $169.85 $196.91 $264.63 Total General Fund Expenditures $139,968,524
Notes:

Adjusted for inflation assuming 3% annual inflation rate.

Select years shown for illustration.

Values in 2025 dollars.

Source: City of Santa Cruz 2023-2024 Revised Budget
September 2025 19.51 Page 12 of 15
Santa Cruz EIFD - Fiscal Impact Analysis DRAFT
City Multipler Revenues and Expenditures
Year 5 Year 10 Year 20
2031 2036 2046
Estimated # Residents 3,471 6,941 6,941
Estimated # Employees 434 601 601
Total Project Service Population 3,688 7,242 7,242
Budget Category 2031 2036 2046
General Fund Revenues
Utility Users Tax $704,800 $1,604,500 $2,156,300
Franchise Tax $246,900 $562,000 $755,200
Admission Tax $101,000 $230,000 $309,100
Business License Tax $18,300 $29,400 $39,500
Parking Lot Tax $30,100 $68,500 $92,000
Other Taxes $101,100 $230,100 $309,200
Licenses and Permits $0 $0 $0
Grants and Intergovernmental $0 $0 $0
Charges for Services $1,519,700 $3,523,400 $4,735,100
Fines and Forfeitures $66,600 $151,600 $203,800
Rents and Miscellaneous Revenues $156,800 $357,000 $479,800 Other Financing Sources $311,800 $709,700 $953,800
Total Multiplier Revenues $3,257,100 $7,466,200 $10,033,800 General Fund Expenditures
City Attorney $45,500 $103,600 $139,300
City Council $15,600 $35,500 $47,700
City Manager $412,000 $937,900 $1,260,400
City - Non-Departmental $282,400 $642,900 $863,900
Economic Development $113,700 $258,900 $347,900
Finance $123,900 $282,000 $379,000
Fire $1,401,000 $3,189,500 $4,286,400
Human Resources $51,300 $116,900 $157,100
Information Technology $174,900 $398,200 $535,200
Library (City) $116,300 $269,700 $362,400
Parks and Recreation $1,127,500 $2,614,100 $3,513,200
Planning and Community Development $227,400 $517,800 $695,800 Police $1,880,200 $4,280,300 $5,752,400
Public Works $626,400 $1,425,900 $1,916,300
Total Multiplier Expenditures $6,598,100 $15,073,200 $20,257,000 Notes:

Major case study revenues not shown include property tax, sales tax, transient occupancy tax Adjusted for inflation assuming 3% annual inflation rate.

Select years shown for illustration.

Values in 2025 dollars.

Source: City of Santa Cruz 2023-2024 Revised Budget
September 2025 19.52 Page 13 of 15
Santa Cruz EIFD - Fiscal Impact Analysis DRAFT
IMPLAN Inputs
Construction Inputs
Industry NAICS Category
Approximate Inputs
(Industry Spending)
58 - Construction of new multifamily residential structures $1,588,935,000 55 - Construction of new commercial structures, including farm structures $228,668,125 51 - Construction of new manufacturing structures $25,289,000 Ongoing Operation Inputs
Industry NAICS Category
Approximate Inputs
(Employment Change)
507 - Hotels and motels, including casino hotels 267 Jobs 412 - Retail - Miscellaneous store retailers 188 Jobs
422 - Warehousing and storage 84 Jobs
476 - Services to buildings 61 Jobs
September 2025 19.53 Page 14 of 15
Santa Cruz EIFD - Fiscal Impact Analysis DRAFT
Summary of IMPLAN Economic Benefits
Economic Benefits from Construction (One-Time / Temporary) Employment Labor Income Economic Output
Direct (On-Site) 15,603 $1,168,281,012 $1,842,892,125
Indirect 1,189 $85,346,849 $270,047,461
Induced 3,549 $217,341,175 $652,728,288
Total Countywide 20,341 $1,470,969,036 $2,765,667,874
Estimated City Capture 15,840 $1,183,415,413 $1,889,030,912 Economic Benefits from Ongoing Operation (Annual)
Employment Labor Income Economic Output
Direct (On-Site) 601 $28,612,308 $65,499,126
Indirect 86 $6,185,849 $15,975,462
Induced 93 $5,725,792 $17,193,122
Total Countywide 779 $40,523,949 $98,667,710
Estimated City Capture 610 $29,207,890 $67,157,555
Notes
100% of direct benefits estimated to be captured on-site within the City. 5% of indirect and induced benefits estimated to be captured off-site within the City.

Estimated ongoing benefits upon build-out and stabilization.

September 2025 19.54 Page 15 of 15

19.55 19.56

19.57 19.58

19.59 19.60

19.61 19.62
Brittany Inclan
From: A Webb <[email protected]>
Sent: Saturday, December 6, 2025 3:06 PM
To: Brian Borguno; Bonnie Lipscomb; Shebreh Kalantari-Johnson; City Council; Fred Keeley Subject: Re: DRAFT Santa Cruz EIFD - questions, and Comments for 12/9/25 agenda #19 Hi Brian,
Thank you for the response.

I've reviewed all of the plan documents, and the March 2025 webinar recording - explaining that boundaries are specific when drawn "almost surgical in nature", with revenues captured within it from an uptick in property values from new development.

With that in mind:

1. Can you please answer WHY our particular parcel was chosen to be included within this map boundary?

2. What were the actual factors or criteria considered that made THIS parcel one that must be within its boundaries vs. outside of it?
Re: Plan documents
There is a chart listing actual addresses for planned development within the "plan" boundaries, one of which is 190 W. Cliff Dr for 79 for sale units (which borders our parcel number), a project of which was withdrawn in Aug 2024 I believe, and yet its parcel number is not included, but its financial values are still in these projections.

Shouldn't this be a current project list with their associated parcel numbers included? That 190 W. Cliff project would've had no "improvements" or uptick in "values" of our parcel, and certainly no positive impacts to our CVC community "quality of life".

It's disturbing that none of our residents were notified of the March 2025 Webinar "community meeting" and yet our parcel is included in this "plan". We received only 1 notice, for the Dec 4, 2025 meeting (though some of our homeowners didn't get that).

Is that the case for all parcels on this list? How can our residents get on a notification list for plan meetings and updates?
Thank you,
Anita Webb, CCHA
ClearView Court, 170 W. Cliff Dr
To help protect your privacy,
Micro so ft Office prevented
auto matic downlo ad o f this
picture from the Internet. Virus-free.www.avast.com
On Thu, Dec 4, 2025 at 8:28 AM Brian Borguno <[email protected]> wrote:

Good Morning, Ms. Webb

19.63 Thank you for reaching out after receiving our public notice. Establishing an EIFD with the Infrastructure Financing Plan aims to solidify the boundary of the new District. The parcels listed and defined are the map that defines this new district. This allows for us to track the growth in taxes in the defined area and set aside a portion of any new growth into the EIFD fund (not a new Tax). This allows the fund to be used on public infrastructure projects as defined in the Plan. There are additional details from past presentations as well as a community webinar posted on our website that goes into more details.
https://www.santacruzca.gov/Business-Development/Active-Project-List/Development-Projects/EnhancedInfrastructure-Financing-District-EIFD See additional details below in red to your specific questions:

Let me know if I can be of further assistance.

Kind Regards,
Brian W. Borguno
Development Manager
City of Santa Cruz | Economic Development and Housing
337 Locust Street, Santa Cruz, CA 95060
Direct: 831-420-5316
Email: [email protected]
Web: www.cityofsantacruz.com | www.choosesantacruz.com

From: A Webb <[email protected]>
Sent: Wednesday, December 3, 2025 1:54 PM
To: Brian Borguno <[email protected]>; Bonnie Lipscomb <[email protected]>; Shebreh KalantariJohnson <[email protected]> Cc: ClearView Court Homeowners Association <[email protected]> Subject: DRAFT Santa Cruz EIFD - questions

19.64 ****CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.****

To whom it may concern,

Referring to your Notice dated 11/24/25, which is the first we've heard about this "Plan" to establish a City EIFD.

Our ClearView Court community has 68 homes. We are largely low income resident homeowners, the majority of which are seniors, who live on a parcel listed in your Draft "plan" document. We do pay annual property taxes on our homes which increase every year due to annual assessed value increases, along with increasing city utility rates and their associated taxes, franchise fees, etc.

Our community contains mostly newer manufactured homes, most purchased with individual life savings, some carrying mortgages, owned, insured and maintained at our own expense, by long-term residents.

What exactly does designating the parcel (004-081-16) in this "Plan" mean:

1. For our existing homeowners and residents? It only intends to include and define the map and boundaries of the new EIFD area.

2. In what way could it change this parcel upon which we live? No change or impact to your parcel from this process would occur.

3. In what way could it "improve the quality of life" (as per your "plan" language) for our residents living on this parcel? Once established the EIFD funds can be used to support public benefit infrastructure projects that benefit the EIFD area as well as leveraged to attract additional grant funds to the community and the related projects.

4. A MH Park has additional legal state requirements, for example, if use is changed - has that been considered for any "development"? No use or change of use in land designation is occurring.

19.65 5. Under what time frame would any changes or impacts to this parcel and our homes take place, IF there are any? No changes or impacts to the parcel are proposed.

Answering these questions, and possibly others not yet considered, would have a direct bearing on our objections to, or ability to support, this "plan".

This Plan presentation on Dec 4, 2025, and subsequent public hearings should be in a hybrid format (in person AND online) with the technology available, so more people living or owning homes in these designated areas can participate, with a recording available for those who have to work, etc to view later. Having only "in-person" meetings really limits public participation, transparency and opportunities for understanding. Unfortunately, we currently do not have the capacity for Commissions and Advisory Bodies to hold hybrid meetings. City Council will also be reviewing this item on their 12/9 Tuesday meeting and have the hybrid meeting option available. All Public Financing Authority meetings are recorded, minutes and recordings are posted online and are available for review:
https://ecm.cityofsantacruz.com/OnBaseAgendaOnline/Meetings/Search?dropid=4&mtids=133

Sincerely,

Anita Webb, President
ClearView Court Homeowners Assoc
170 W. Cliff Dr, SC

19.66 Brittany Inclan
From: Ron Pomerantz <[email protected]>
Sent: Monday, December 8, 2025 2:59 PM
To: City Council
Cc: Fred Keeley; Sonja Brunner; Shebreh Kalantari-Johnson; Renee Golder; Susie O'Hara; Gabriela Trigueiro; Scott Newsome
Subject: 12/9/25 City Council Consent Agenda Item #19: Resolution Approving the Infrastructure Financing Plan (IFP) for the Santa Cruz Enhanced Infrastructure Financing District (EIFD) & the Allocation of Property Tax Increment within the Santa Cruz EIFD (EDH) Re. Resolution Approving the Infrastructure Financing Plan (IFP) for the Santa Cruz Enhanced Infrastructure Financing District (EIFD) and the Allocation of Property Tax Increment within the Santa Cruz EIFD (EDH) Good day Mayor and Council members.

The Infrastructure Financing Plan (IFP) goes against the Mayor and Council's explicit promise to not use public money to fund the Warriors’ Arena development. The Council has done everything thus far to walk a tightrope of not giving them direct subsidies. Council has given them extremely profitable land use terms in the Downtown Plan Expansion. Council used hundreds of thousands of dollars of public money through staff time and private consultants to develop the Plan that is overwhelmingly for the Warriors' and developers’ profitability.

The Infrastructure Financing Plan crosses the line by giving directly to the developers and the Warriors. Rather than the property tax increases going into the General Fund to benefit all the City, it will be used in the redevelopment areas to upgrade sewer and water lines. This money will also be used for street lighting, repair and realignment of the roads and sidewalks. The IFP is a smoke screen for a guaranteed subsidy- an enormous one- not needed by the $11 billion Warriors corporation. All the infrastructure requirements that residential homeowners and builders are required to pay when they construct or remodel homes should also be required of developers and property owners in the redevelopment areas that get the benefits.

The City has cried crocodile tears that there's no money to provide important services and programs in the City. That’s why Council recently raised sales taxes, a sugar tax, a parcel tax, a property transfer tax, and increased fees. The property tax increases from the Downtown Plan Expansion developments are the city’s opportunity to take the burden away from the residents and put the costs on the beneficiaries of the developments where they belong.

I strongly request the Council not go forward with the planned Infrastructure Financing Plan and the future property tax increases go into the General Fund where they will do the most good for the most people.

19.67 Thank you for your time and thoughtful attention.

Ron Pomerantz

19.68 City Council

AGENDA REPORT
DATE: 11/20/2025
AGENDA OF: 12/09/2025
DEPARTMENT: Finance
SUBJECT: Liability Claims Filed Against the City of Santa Cruz (FN) RECOMMENDATION: Motion to reject the liability claims of 1) Leonardo J. Morelli and 2) Subroclaims, Inc. – Geico Insurance, based on staff recommendation.

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

1. Claimant: Leonardo J. Morelli
Date of occurrence: 5/16/2025
Date of claim: 11/7/2025
Amount of claim: $ 227,890.81
Claimant alleges that he was driving his motorcycle over steel plates when his motorcycle slid out causing damage to his bike and injuring him.

Self-Represented

2. Claimant: Subroclaims, Inc. – Geico Insurance
Date of occurrence: 10/8/2025
Date of claim: 11/6/2025
Amount of claim: $ 955.59
Claimant seeks reimbursement for damages to their insured’s vehicle allegedly caused by a Santa Cruz Metropolitan Transit District bus.

Self-Represented
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: N/A HEALTH IN ALL POLICIES (HiAP): N/A

20.1 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: No fiscal impact.

Prepared By:

Ross Brandon
Risk & Safety Manager
Submitted By:

Elizabeth Cabell
Finance Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

None.

20.2 City Council

AGENDA REPORT
DATE: 11/20/2025
AGENDA OF: 12/09/2025
DEPARTMENT: Finance
SUBJECT: FY 2025 Traffic Impact Fee Annual Report (FN/PW) LOCATION: Citywide
RECOMMENDATION: Motion to accept and approve the attached FY 2025 Traffic Impact Fee Annual Report.

BACKGROUND: In April 2004, the City Council adopted the Beach/South of Laurel Traffic Impact Fee Ordinance and in June 2005, the City Council adopted the Citywide Traffic Impact Fee Ordinance. In November 2012, the City Council amended the Traffic Impact Fee Ordinances to combine the Beach/South of Laurel and Citywide areas resulting in a single Traffic Impact Fee as of FY 2013 and basing it on evening peak hour trips rather than daily trips. In August 2021, the City Council amended the fee to address the cost of construction increases that occurred since the last revision. This fee complies with California Government Code Section 66006 which requires that within 180 days after the close of the fiscal year, the City shall produce a report on the developer impact fees and make it public at least 15 days prior to the regularly scheduled City Council meeting. In addition, for anyone who provided a written request to be notified, the City of Santa Cruz (City) shall mail notice of the time and place of the meeting at least 15 days prior to the meeting.

DISCUSSION: Staff has compiled the FY 2025 Traffic Impact Fee Annual Report and made it available at the Public Works Counter 15 days prior to the meeting. Staff recommends acceptance and approval of the report. The City began collecting Traffic Impact fees in FY 2006.

The amount collected in FY 2025 is $616,023 and is detailed in the report.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed Council action is not a “Project” under CEQA because the proposed Council action does not have the potential to cause a physical change in the environment directly or indirectly.

HEALTH IN ALL POLICIES (HiAP): The cumulative effect of FY 2025 Traffic Impact Fee Annual Report aligns with the Health in All Policies (HiAPs) Workplan by supporting the Collective of Results and Evidence-based (CORE) community impacts of increased economic vitality; a safe, affordable, and accessible transportation system; and neighborhoods and communities are safe.

21.1 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 Traffic Impact Fee fund balance had increased by $434,869 to $1,616,986 with revenues exceeding expenditures. This was attributed to a higher number of fees being collected in the current fiscal year. There was no impact on the General Fund.

Prepared By:

Noah Otts
Accountant I
Submitted By:

Elizabeth Cabell
Director of Finance
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. 2025 TRAFFIC IMPACT FEE ANNUAL REPORT – DEVELOPMENT IMPACT FEES.PDF

21.2 1
Attachment I
City of Santa Cruz
2025 Traffic Impact Fee Annual Report
Development Impact Fees
For Fiscal Year Ending June 30, 2025

Government Code Sec. 66006(a) requires local agencies to produce an annual report, within 180 days of the fiscal year end. The annual report must be made available to the public and be presented to the public agency (City Council) at least fifteen days after it is made available to the public.

This report summarizes the following information for each of the development fee programs:

1. Description of fee

2. Amount of fee

3. Beginning and ending fund balances

4. Amount of fees collected, and interest earned.

5. Identification of projects on which fees were expended and the amount for each improvement that was expended.

6. The total percentage of the cost of the public improvement was funded with fees.

7. The approximate date by which construction of the improvements will commence for any incomplete improvements for which sufficient funds to complete financing for the improvements have been collected.

8. The amount of refunds paid.

9. Description of each interfund transfer or loan made from the fund if any.

The following fee programs are included in this report:

Section A – Citywide Traffic Impact Fee

21.3 2
Section A – Citywide Traffic Impact Fee
For Fiscal Year Ending June 30, 2025
Description: A Traffic Impact Fee is assessed in connection with the issuance of any development permit for development in areas of the City designated by City Council Resolution NS-26,943 on June 28, 2005. In accordance with the General Plan, the Fee shall be used to pay costs associated with the mitigation of traffic impacts attributable to the development that is the subject of the permit. On November 27, 2012, the City Council adopted Resolution NS-28,574 rescinding Resolution NS-26,943, combining the Beach/South of Laurel and Citywide areas and revising the Traffic Impact Fee Estimate Form to include new uses and PM peak hour rates. On August 24, 2021, City Council adopted resolution NS-29,865 revising the Traffic Impact Fee per trip rate.

Amount of Fee: The Traffic Impact Fee at the start of FY 2025 was defined to be $5,027 per peak hour trip as determined on the Traffic Impact Fee Estimate Form. As of March 3, 2025, a 2% increase was put in place, with the adjusted Traffic Impact Fee now defined to be $5,128 per peak hour trip.

Refund: There was no refund in FY 2025.

Interfund Transfer: An amount of $7,000 was transferred to the Gas Tax fund for project c400805: State Route 1/9 Intersection Improvements for the purpose of establishing and maintaining plantings.

Beginning Balance, July 1, 2024 1,182,1171
Receipts
Fees Collected 556,256
Interest Earned 59,767
Payment Holding 0
Transfer-in 0
Total 616,023
Disbursements % of Cost Funded
C400805 – State Route 1/9 Intersection Improv. (7,000) 93% Admin Expenses
Investment Fees
(173,397)
(756)
Total Disbursements (181,534)
Ending Balance, June 30, 2025 1,616,9862
1 Beginning fund balance does not include allowance for FV of invest w/City-cur unrstr. 2 Ending fund balance does not include allowance for FV of invest w/City-cur unrstr. * Ending Available Fund Balance is unaudited

21.4 City Council

AGENDA REPORT
DATE: 11/20/2025
AGENDA OF: 12/09/2025
DEPARTMENT: Finance
SUBJECT: FY 2025 Parking In-Lieu Impact Fee Annual Report (FN/PW) LOCATION: Citywide
RECOMMENDATION: Motion to accept and approve the attached FY 2025 Parking In-Lieu Impact Fee Annual Report.

BACKGROUND: In June 1992, the City Council adopted amendments to the Downtown Parking Resolution (NS-200,541) establishing a Parking In-Lieu Impact Fee. The Parking InLieu Impact fee was amended in June of 2019 to update the in-lieu fee rates to support affordable housing and general housing construction in the downtown area. In April 2023, the City Council amended Parking In-Lieu Fee rates to reflect changes in state law related to parking requirements near high quality transit. This fee complies with California Government Code Section 66006 which requires that within 180 days after the close of the fiscal year the City shall produce a report on the developer impact fees and make it public at least 15 days prior to the regularly scheduled City Council meeting. In addition, for anyone who provides a written request to be notified, the City shall mail them notice of the time and place of the meeting at least 15 days prior to the meeting.

DISCUSSION: The City began collecting Parking In-Lieu Impact Fees in FY 2021. The amount collected in FY 2021 was $840,000 and $120,000 in FY 2023. No fees were collected in FY 2022, FY 2024, or FY 2025. Staff have compiled the attached FY 2025 Parking In-Lieu Impact Fee Annual Report and made it available at the Public Works Counter 15 days prior to the meeting. Staff recommends acceptance and approval of the report.

HEALTH IN ALL POLICIES (HiAP): The cumulative effect of FY 2025 Parking In-Lieu Impact Fee Annual Report supports the Health in All Policies (HiAPs) Workplan by supporting the Collective of Results and Evidence-based (CORE) community impacts of increased economic vitality; a safe, affordable, and accessible transportation system; and neighborhoods and communities are safe.

22.1 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 Parking In-Lieu Impact Fee fund balance in Revenues remained $0 from FY 2023 to FY 2025, with no exceeding expenditures. In FY 2023 disbursements for the repayment of Bond issuance were made, in accordance with the Downtown Parking Resolution. The remaining fund balance was disbursed to cover enforcement, maintenance, and other operating costs of Parking District No 1. There was no impact on the General Fund.

Prepared By:

Noah Otts
Accountant I
Submitted By:

Elizabeth Cabell
Director of Finance
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. 2025 PARKING IN-LIEU IMPACT FEE ANNUAL REPORT – DEVELOPMENT IMPACT FEES.PDF

22.2 1. No fees were collected in fiscal year 2024.

Attachment I
City of Santa Cruz
2025 Parking In-Lieu Impact Fee Annual Report
Development Impact Fees
For Fiscal Year Ending June 30, 2025

This report summarizes the following information for each of the development fee programs:

1. Description of fee

2. Amount of fee

3. Beginning and ending fund balances

4. Amount of fees collected and interest earned

5. Identification of projects on which fees were expended and the amount for each improvement that was expended

6. The total percentage of the cost of the public improvement that was funded with fees

8. The amount of refunds paid

9. Description of each interfund transfer or loan made from the fund, if any The following fee programs are included in this report:

Section A – Citywide Parking In-Lieu Impact Fee

22.3 1. All prior fees collected were dispersed in fiscal year 2023

2. No fees were collected in fiscal year 2025.

Section A – Citywide Parking In-Lieu Impact Fee
For Fiscal Year Ending June 30, 2025
Description: A Parking In-Lieu Impact Fee is assessed in connection with the issuance of any development permit for development within Parking District No 1 as amended (NS-2233, June 26,1956) where a developer has chosen to provide less than the amount of parking required per the Parking Resolution. In accordance with the Downtown Parking Resolution, the Fee shall be used to pay costs associated with repayment of bonds, and any excess not required for bond resolution shall be applied to enforcement, maintenance, and other operating costs of Parking District No 1.

In June 1992, the City Council adopted amendments to the Downtown Parking Resolution (NS-200,541) establishing a Parking In-Lieu Impact Fee. The Parking In-Lieu Impact fee was amended in June of 2019 to update the in-lieu fee rates to support affordable housing and general housing construction in the downtown. In April 2023, the City Council amended the Parking In-Lieu Fee rates to reflect changes in state law related to parking requirements near high quality transit.

Amount of Fee: The Parking In-Lieu Impact Fee in FY 2025 was defined to be $20,000 per required parking space not provided by the development determined by Resolution NS-30,132.

Refund: The refund amount in FY 2025 was $0.

Beginning Balance, July 1, 2024 01
Ending Balance, June 30, 2025 02

22.4 City Council

AGENDA REPORT
DATE: 11/25/2025
AGENDA OF: 12/09/2025
DEPARTMENT: Planning and Community Development
SUBJECT: Resolution Directing Staff to Submit the Local Coastal Program Amendments Approved by City Council on November 18, 2025, Related to the Previously Approved General Plan 2030 Sensitive Habitat and Vegetation Maps and the Added Beaches and Bluffs Hazards Adaptation Chapter, to the California Coastal Commission (PL)
LOCATION: District 2, 3, 4, and 6
RECOMMENDATION: Motion to:
1) Adopt a resolution authorizing the City Manager or his designee to submit the amendments to the Local Coastal Program approved by City Council on November 18, 2025, to the California Coastal Commission for final certification; and
2) Direct staff to submit the above resolution to the California Coastal Commission for certification, together with the amendments to the Local Coastal Program approved on November 18, 2025.

BACKGROUND: On November 18, 2025, the City Council held a public hearing and approved amendments to the Local Coastal Program (LCP) including the addition of a new LCP chapter titled: “Beaches and Bluffs Hazards Adaptation,” as well as incorporating the previously approved General Plan 2030 Sensitive Habitat and Vegetation Types Maps into the LCP.

The item before the City Council today is to adopt the attached resolution directing staff to submit these approved amendments to the California Coastal Commission.

DISCUSSION: Public Resources Code Section 30510 requires LCP amendments to be submitted to the California Coastal Commission pursuant to a resolution adopted by the local government, after public hearing, that certifies the LCP is intended to be carried out in a manner fully in conformity with the Coastal Act. Further, the City’s LCP requires that the City Council adopt a resolution finding that the amendments were made in the public interest, are consistent with the General Plan, and can be carried out in full conformity with the Coastal Act.

23.1 Staff’s November 18, 2025 agenda report (also included with these agenda materials) described the LCP amendments and the consistency of the amendments with the Coastal Act, the LCP, and the General Plan.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The approval of the resolution itself does not constitute a project under CEQA. The LCP amendments were previously approved on November 18, 2025. This resolution is simply intended to ensure that the City complies with the resolution requirement in the Public Resources Code and the City’s LCP. Additionally, the subject LCP amendments (previously approved on November 18, 2025) were exempt from environmental review under CEQA Guidelines Section 15265 and Public Resources Code Section 21080.9 in that CEQA does not apply to activities and approvals pursuant to the California Coastal Act such as preparation and adoption of an LCP by a local government.

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 by developing policies that respond to climate change, sea level rise, and related hazards. These policies bolster the City’s sustainability and resiliency efforts and support the well-being for all residents.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: Yes

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: The proposed changes to the LCP are anticipated to have some fiscal impact in the years ahead. While the proposed new Beaches and Bluffs Hazards Adaptation policy chapter is broad in nature, it outlines several programs such as monitoring, Shoreline Adaptation Management Plans, and shoreline protection device mitigation that would likely be implemented with some General Fund spending. Some of these programs already have state and federal grant funding that will supplement a portion of these additional costs. While the resiliency efforts outlined in the proposed new LCP chapter would have upfront costs, they are also intended to address long-term expenses that would be even more costly if alternative paths were chosen. For example, under current policies, coastal impacts brought by sea level rise and climate change would be expected to cost the City an estimated one billion dollars over the next 100 years, and some of the Beaches and Bluffs policies aim to mitigate sea level rise impacts and reduce City costs over the long-term.

Prepared By:

Matt VanHua, AICP
Principal Planner
Submitted By:

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

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

2. NOVEMBER 18, 2025, COUNCIL AGENDA REPORT.PDF

23.2 RESOLUTION NO. NS-30,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ AUTHORIZING

AND DIRECTING THE CITY MANAGER TO SUBMIT PROPOSED AMENDMENTS TO THE

LOCAL COASTAL PROGRAM, INCLUDING INCORPORATING PREVIOUSLY APPROVED GENERAL PLAN 2030 SENSITIVE HABITAT AND VEGETATION TYPES MAPS AND ADDING A NEW CHAPTER TITLED “BEACHES AND BLUFFS HAZARDS ADAPTATION”,

TO THE CALIFORNIA COASTAL COMMISSION FOR FINAL CERTIFICATION WHEREAS, the California Coastal Act was adopted in 1976 to ensure that the public has access to the coast and coastal resources and to protect sensitive marine and coastal habitats; and WHEREAS, in 1992, the City of Santa Cruz General Plan 1990-2005 and its associated Environmental Impact Report were adopted by City Council; and WHEREAS, in 1995, the California Coastal Commission certified the City’s major Local Coastal Program amendment #2-93; and
WHEREAS, in 2012, the City of Santa Cruz General Plan 2030 and its associated Environmental Impact Report were adopted by City Council; and WHEREAS, in 2015, California Coastal Commission Sea Level Rise Policy Guidance was released, along with subsequent science updates in 2018 and 2024, calling for jurisdictions to address sea level rise through the use of best available science and other relevant policies; and WHEREAS, on October 16, 2025, the Planning Commission held a public hearing where proposed amendments to the Local Coastal Program to address Coastal Commission guidance were considered by the Planning Commission, and the Planning Commission recommended that the City Council adopt the amendments as proposed; and
WHEREAS, on November 18, 2025, the City Council held a public hearing at which proposed amendments to the Local Coastal Program were approved.

NOW, THEREFORE, BE IT RESOLVED, as follows:
(1) In approving the proposed amendments on November 18, 2025, City Council finds and certifies:
a) The proposed amendments are intended to be carried out in full conformity with the Coastal Act and are in the public interest, as they support resiliency efforts along the city’s coast.
b) The proposed amendments are consistent and compatible with the Local Coastal Program and any implementation programs that may be affected in that they support the use of best available science in coastal planning efforts.

23.3 RESOLUTION NO. NS-30,XXX
c) The potential impacts of the proposed amendments have been assessed and have been determined not to be detrimental to the public health, safety, and welfare in that they respond to threats such as climate change, sea level rise, and related hazards. d) The proposed amendments have been processed in accordance with the applicable provisions law, including the California Environmental Quality Act (CEQA), in that the City’s adoption of these amendments is exempt from environmental review under and Public Resources Code Section 21080.9 and CEQA Guidelines Section 15265. (2) The City Council of the City of Santa Cruz hereby directs the City Manager or their designee to submit the amendments to the Local Coastal Program Land to the California Coastal Commission for final certification.
(3) The amendments to the Local Coastal Program will become effective upon final certification by the California Coastal Commission.

PASSED AND ADOPTED this 9th day of December, 2025, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

23.4 City Council

AGENDA REPORT
DATE: 11/13/2025
AGENDA OF: 11/18/2025
DEPARTMENT: Planning and Community Development
SUBJECT: Update to the City of Santa Cruz Local Coastal Program to Incorporate the Previously Approved General Plan 2030 Sensitive Habitat and Vegetation Types Maps and to Add a New Chapter Titled “Beaches and Bluffs Hazards Adaptation” (PL)
LOCATION: Districts 2, 3, 4, and 6
RECOMMENDATION: Motion to:
1) Approve the proposed amendments to the City of Santa Cruz Local Coastal Program; and 2) Acknowledge the determination that the proposed amendments are exempt from environmental review under California Environmental Quality Act (CEQA) Guidelines Section 15265 and Public Resources Code Section 21080.9.

BACKGROUND: In 1972, California voters passed Proposition 20, the Coastal Conservation Initiative, which established the Coastal Commission and tasked it with making decisions about development within the Coastal Zone. The California Coastal Act was then adopted in 1976 to ensure that the public has access to the coast and coastal resources and to protect sensitive marine and coastal habitats. Under the Coastal Act, coastal cities and counties are required to adopt a Local Coastal Program (LCP) to guide development in the Coastal Zone.

The City of Santa Cruz adopted its current Local Coastal Program in 1994 following adoption of General Plan 1990-2005. Since the 2012 adoption of the current General Plan 2030, there has been a desire to update the LCP to bring these policy documents into alignment. Additionally, Coastal Commission guidance documents since 2015 recommend that LCPs be updated to address resiliency and climate change. While additional LCP amendments are forthcoming to better align the LCP with the General Plan 2030, the proposed LCP amendment under consideration is to add a new chapter to the LCP called Beaches and Bluffs Hazards Adaption, which features eighteen policies related to coastal resource protection, management, adaptation, and resilience. This new chapter, commonly referred to as “Beaches and Bluffs,” is the culmination of six years of partnership with Coastal Commission staff at the local and state level, coordination across multiple City departments, and engagement with the community. The

23.5 proposed Beaches and Bluffs chapter, as attached, also includes a supplemental glossary and Shoreline Hazard Evaluation Area maps.

As part of aligning the LCP with General Plan 2030, the proposed amendments will also incorporate the previously approved General Plan 2030 Sensitive Habitat and Vegetation Types Maps into the LCP.

DISCUSSION: The current LCP is comprised of five policy chapters and a land use chapter, essentially functioning as a General Plan for the City of Santa Cruz Coastal Zone area. During the ongoing process of updating the entire LCP, in consultation with Coastal Commission staff, this work was broken into two parts in 2022 for ease of review and processing. The first part is to create this proposed Beaches and Bluffs chapter to address climate change and sea level rise impacts in the Coastal Zone. Because this is a new chapter addressing these vital issues that are not covered in the current LCP, it was most important that this chapter be the first phase of work.

The significant 2022-23 winter storm damage to West Cliff further heightened the need for these policies to be prioritized and aligned with new City documents, as discussed below in more detail.

The second part of this LCP update is modernizing the existing document and aligning it with the current General Plan 2030. This includes updates to the five existing policy chapters and the land use chapter. This second part of the update is ongoing and anticipated to be completed in 2027.

Beaches and Bluffs Policy Development
Because the LCP is essentially a General Plan for Santa Cruz’ Coastal Zone, its policies are intended to be broad. Still, followers of this work note that there have been significant changes in the form and function of this LCP update during the course of its revisions. The first draft LCP update released to the public for review in late 2021 featured the entire document and broader resiliency policies. There were more narrative elements too, intended to be read in a longer format similar to General Plan 2030. Further discussions with Coastal Commission staff led to the desire for a streamlined document that focused on the policies. There was also a desire for more specifics in the policies, and where specific efforts desired by the Coastal Commission needed a separate planning process, policies were developed to outline this future work. These changes could be seen when the draft Beaches and Bluffs chapter was released for public review in the summer of 2025. The proposed Beaches and Bluffs chapter now has some introductory language, but the focus of the new chapter is the hazard adaptation policies.

The Beaches and Bluffs policies were influenced early on by development of the goals and objectives of the City’s Resilient Coast Initiative effort, which was completed in 2022. The Resilient Coast Initiative assessed the potential effects of sea level rise on the City’s coastline and took steps to develop appropriate climate change adaptation strategies and policies to address those effects. Those goals were developed and reviewed by the City, governmental, quasi-governmental, and non-profit stakeholders, a technical advisory committee, local Coastal Commission staff, and the community, and the goals provided a starting point for the adaptation policies included in the proposed Beaches and Bluffs chapter.

23.6 As these policies were beginning to take shape, the severe winter storms of 2022-2023 damaged parts of the West Cliff coastline and added another layer of policy emphasis. Not only would the Beaches and Bluffs chapter need to more specifically address the future of West Cliff and its recovery, it would also need to align with new community-focused initiatives. The damage to West Cliff set off a wave of community coordination and City projects, culminating in the 50- Year Community Vision for West Cliff adopted in April 2024 and the West Cliff Five-Year Roadmap adopted in March 2025. Countless interdepartmental staff meetings sought to ensure the Beaches and Bluffs chapter would work in tandem with these new documents.

Through this policy development, the overall goals of the Beaches and Bluffs chapter are:
1) Keep public beaches and access open and safe;
2) Use science to guide decisions and update hazard maps regularly; 3) Avoid or limit new construction in high-risk areas;
4) Monitor erosion and coastal changes each year and after storms; 5) Prioritize nature-based solutions like beach replenishment or living shorelines over harder engineered approaches such as concrete seawalls, where appropriate; and 6) Align with the Local Hazard Mitigation and Climate Adaptation Plan and the West Cliff 50-year Vision and Five-year Roadmap.

Beaches and Bluffs Hazard Adaptation Policies
The proposed new chapter includes eighteen policies related to coastal resource protection, management, adaptation, and resilience. Some policies are straightforward and short while others are complex and lengthy. Each policy plays an important role in this chapter, but below are synopses of six key policies that deserve additional attention.

BB-5. Shoreline and Bluffs Change Monitoring
This policy requires the implementation of a coastal change monitoring program. A key feature of adaptation planning is to establish triggers and thresholds that result in a desired set of actions (e.g., if “x” number of feet of bluff erosion occurs, action “y” should take place). Monitoring is a vital aspect of adaptation planning, because it provides the data needed to determine when a trigger point or threshold is reached.

BB-6. Shoreline Adaptation Management Plans
This policy establishes the development of Shoreline Adaptation Management Plans (SAMPs) for three portions of Santa Cruz (West Cliff, Main-Cowell Beaches, and East Cliff shoreline areas) within five years of Coastal Commission adoption of this policy. While the LCP sets broader policies regarding adaptation planning, the SAMPs will develop a more specific vision for the shoreline area to guide the development and implementation of near-, mid-, and long-term adaptation strategies. As such, this policy lays the groundwork for much of the future planning actions along Santa Cruz’s coast. These strategies will be developed through broad community engagement and more detailed scientific analyses of existing and future conditions of those areas. This SAMP work has already begun with funding by the Ocean Protection Council, and initial community engagement opportunities have commenced with community and Advisory Committee conversations having occurred earlier this month.

23.7 BB-7. Public Projects along West Cliff
While a detailed SAMP will be developed for West Cliff over the next year and a half, given the amount of work happening along West Cliff, especially to repair storm damage, there was a desire to include a set of West Cliff-specific policies to direct these activities in the interim.

These policies seek to avoid the use of hard armoring where possible and to mitigate the use of allowed/required hard armoring when feasible. Mitigation efforts could consider adaptive strategies like realignment of infrastructure in specific areas where more space is available (e.g., Lighthouse Point, Lighthouse Field, and Natural Bridges State Beaches). This policy and its subpolicies were also developed to align the Beaches and Bluffs chapter with the 50-Year Community Vision for West Cliff and West Cliff Five-Year Roadmap.

BB-8. Private Development in the Shoreline Hazard Evaluation Area This policy establishes a Shoreline Hazard Evaluation Area, detailed in the maps included after the Beaches and Bluff policies. This area is largely within 100 feet of the bluff top, with a few areas slightly greater than 100 feet of the bluff top based on best available science determining coastal hazard zones. Proposed development within this area would require a site-specific coastal hazards analysis to evaluate shoreline hazard risks over the anticipated life of the proposed development. Development within this Shoreline Hazard Evaluation Area must be designed and sited to be safe from erosion, bluff failure, wave run-up, flooding, and other long-term coastal hazards for its anticipated lifetime without relying on existing shoreline protection or new or enhanced shoreline protection of any kind.

BB-11. Nature-based Shoreline Protection
Different types of adaptation strategies can be used to address coastal hazards. Low-impact, nature-based solutions such as landscaping and drainage control seek to work with natural environmental systems and are to be prioritized over high-impact, non-nature-based solutions (e.g., seawalls). Hybrid solutions would also be supported over fully non-nature-based solutions when possible. While the SAMP process will further detail preferred solutions and adaptation priorities, this policy serves to still prioritize nature-based solutions prior to the SAMPs being adopted.

BB-12. Shoreline Protective Devices
Shoreline protective devices are solutions to coastal hazards that are non-nature-based, such as seawalls, revetments, and other forms of hard armoring. Efforts to protect development with shoreline protective devices can directly result in loss and diminution of natural resources. This policy sets out how and when a shoreline protective device can be implemented and how its impact can be mitigated.

General Plan 2030 Sensitive Habitat and Vegetation Types Maps The City updated its Sensitive Habitat and Vegetation Types maps as part of General Plan 2030.

However, within the Coastal Zone, the City still uses habitat maps from the previous General Plan 1990-2005, because the current maps have not been adopted into the LCP yet. As a minor cleanup to reflect the more current information from the General Plan 2030, the updated Sensitive Habitat and Vegetation Types maps are included as part of this proposed LCP amendment package.

23.8 LCP and Coastal Act Consistency
The primary purpose of the proposed Beaches and Bluffs chapter is to identify and integrate shoreline adaptation strategies and supportive policies that respond to climate change, sea level rise, and related hazards to update the land use planning and program requirements for the Coastal Zone within Santa Cruz city limits. This approach is consistent with the California Coastal Act and the California Coastal Commission Sea Level Rise Policy Guidance, first adopted on August 12, 2015, with subsequent science updates adopted on November 7, 2018 and November 13, 2024, with that guidance calling for jurisdictions to address sea level rise through the use of best available science and other relevant policies. Protection of environmentally sensitive habitat is a key policy of the Coastal Act, and the proposed Sensitive Habitat and Vegetation Types maps are consistent with the Coastal Act in that they update the existing maps using more recent and best available science.

Community Outreach
Coordination with stakeholders was done through each step of the process in developing this new chapter and the underway, but not yet completed, work to update the entire existing LCP document. Two major public review drafts and comment periods were provided, one in late 2021 and one in the summer of 2025. The most recent edits staff made based on the comments on the 2025 public review draft are left in track changes in the proposed Beaches and Bluffs chapter attached. The comments received on the Summer 2025 draft chapter are also attached. Key edits made in response to the recent public review draft were to add more discussion around surfing’s vital role in the City’s coastline based on Save the Waves’ comments. While there was a desire in the comments to develop a monitoring and maintenance program specifically for surfing conditions, the City does not have the technical ability or funding to perform such a task at this time. Edits to Policy BB-5 regarding monitoring leave this option open as a future work item should the opportunity arise. Sub-policies (f) and (g) of Policy BB-7 regarding projects along West Cliff were amended to more closely align with the language in the Council-adopted West Cliff Five-Year Roadmap. The desire for greater consistency between the two documents regarding pedestrian, bicycle, and recreational uses on West Cliff was noted by a few commentors. Finally, a takings clause policy was also added based on comments received from Smart Coast California.

Planning Commission Summary
This item was heard by the Planning Commission on October 16, 2025. Planning Commission only had concerns about the Shoreline Hazard Evaluation Area process. Staff confirmed that only development within the Shoreline Hazard Evaluation Area is subject to additional hazards analysis, and development outside of the area is exempt from the additional analysis, even if it is on property that is partially within the area. Staff were also asked to clarify the hazards analysis process, including which jurisdiction does the review. Staff have since coordinated further with the local Coastal Commission staff to ensure aligned efforts. Typically, the applicant hires a qualified engineer to perform the hazards analysis which would then be reviewed by the City. In instances where the Coastal Commission is the permitting authority, it would undertake the final review of the hazards analysis. Finally, Planning Commission was interested in knowing more details regarding the differences between the first public draft of the Beaches and Bluffs chapter and this current one. That question was answered in the meeting, and those additional details are provided in the Beaches and Bluffs Policy Development section of this report.

23.9 Next Steps
Following action by the City Council, the proposed amendments will be submitted to the California Coastal Commission late this year, with the Commission’s approval likely to take place in early 2026. The forthcoming development of the Shoreline Adaptation Management Plans (SAMPs) for West Cliff, Main-Cowell Beaches, and East Cliff represents a direct extension of these policies, as do other coastal resilience planning efforts by the City regarding monitoring, living shorelines and nature-based solution implementation, and sand management feasibility studies. As noted previously, this proposed Beaches and Bluffs chapter represents adding a new policy section to the LCP. The effort to update the rest of the existing LCP is ongoing and expected to be completed in 2027.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed amendments are exempt from environmental review under California Environmental Quality Act (CEQA) Guidelines Section 15265 and Public Resources Code Section 21080.9 in that CEQA does not apply to activities and approvals pursuant to the California Coastal Act such as preparation and adoption of an LCP by a local government.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: Yes

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: No

FISCAL IMPACT DESCRIPTION: The proposed changes to the LCP are anticipated to have some fiscal impact in the years ahead. While the proposed new Beaches and Bluffs Hazards Adaptation policy chapter is broad in nature, it outlines several programs such as monitoring, Shoreline Adaptation Management Plans, and shoreline protection device mitigation that would likely be implemented with some General Fund spending. Some of these programs already have state and federal grant funding that will supplement a portion of these additional costs. While the resiliency efforts outlined in the proposed new LCP chapter would have upfront costs, they are also intended to address long-term expenses that would be even more costly if alternative paths were chosen. For example, under current policies, coastal impacts brought by sea level rise and climate change would be expected to cost the City an estimated one billion dollars over the next 100 years, and some of the Beaches and Bluffs policies aim to mitigate sea level rise impacts and reduce City costs over the long-term.

Prepared By:

Matt VanHua, AICP
Principal Planner
Submitted By:

Lee Butler, AICP
Director of Planning &
Community Development
Approved By:

Matt Huffaker
City Manager

23.10 ATTACHMENTS:

1. PROPOSED BEACHES AND BLUFFS HAZARDS ADAPTATION CHAPTER.PDF

2. PUBLIC REVIEW COMMENTS ON THE DRAFT BEACHES AND BLUFFS HAZARDS ADAPTATION CHAPTER.PDF

3. GENERAL PLAN 2030 SENSITIVE HABITAT AND VEGETATION MAPS.PDF

4. PLANNING COMMISSION REPORT OF AGENDA OCTOBER 16, 2025.PDF

23.11 City Council

AGENDA REPORT
DATE: 11/20/2025
AGENDA OF: 12/09/2025
DEPARTMENT: Public Works
SUBJECT: Murray Street Bridge Seismic Retrofit Construction Phase (c402519) – Contract Amendment 12 (PW)
LOCATION: District 2
RECOMMENDATION: Motion to approve Contract Amendment 12 to an agreement with TRC Engineers, Inc. (Rancho Cordova, CA) to provide design completion, final coordination and construction support services for the Murray Street Bridge Seismic Retrofit Project. The Public Works Director is authorized to approve future Contract Amendments within the approved project budget.

BACKGROUND: At its February 9, 2000, meeting, the City Council authorized staff to enter into an agreement with Imbsen and Associates to provide design completion services for the Market Street Bridge, the Water Street Bridge and East Cliff Bridge Projects. Amendments 1 through 7 to this contract authorized Imbsen and Associates (and then the same entity renamed TRC Engineers, Inc.) to provide preliminary engineering design and environmental documentation services and then coordinate right of way services for the Murray Street Bridge Project. Amendments 8 through 10 authorized TRC Engineers, Inc. to complete final design to current state standards and incorporate the County Sanitation District’s force main facility into the project. The project team at TRC Engineers, Inc., has been the design group that has worked on a majority of the City’s bridge retrofit projects and has extensive knowledge not only of the site specific requirements for the design of this project, but also with the procedures of the City for capital projects and with the Caltrans requirements for Right of Way certification.

Amendment 11 provided for TRC’s providing project construction support.

DISCUSSION: Since construction began in March 2025, there have been several changes in both the existing conditions and the contractor’s approach to the project that have required additional review from TRC. Amendment 12 is required to enable TRC to continue supporting the construction phase of the project. The project is presently on schedule and expected to finish construction in January 2028.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

Amending a professional services contract is not a project subject to CEQA review.

24.1 HEALTH IN ALL POLICIES (HiAP): This project advances the City’s HiAP objectives by addressing key pillars of public health, equity, and sustainability:

Public Health: This project will enhance both pedestrian and bicycle access across the bridge, making it more attractive for that use.

Equity: The project preserves coastal access for all community members, including historically underrepresented and underserved populations who rely on public recreational infrastructure for free or low-cost health and leisure opportunities.

Sustainability: The new pedestrian and bicycle facilities on the bridge will promote low emission transportation modes such as biking and walking by maintaining safe and accessible routes.

The project reflects the City’s commitment to embedding HiAP principles in infrastructure planning and implementation, fostering resilient systems that improve community well-being.

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 cost of continuing construction support from TRC for this project is $295,961. Funds are available in Murray Street Bridge-Construction Phase (c402519). Additional costs will be borne by federal and state grants, and local gas tax funds.

Federal reimbursement is 88.53% of eligible project costs, while the state will contribute up to

11.47% (depending on available funds) of eligible project costs. There is no impact to the General Fund.

Prepared By:

Joshua Spangrud, P.E.

Senior Civil Engineer
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. CONTRACT AMENDMENT 12.PDF

24.2 12th Amendment to Professional Services Agreement for Design and Construction Support November 2025 Page 1
12TH AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH
TRC Engineers, Inc.

THIS twelfth AMENDMENT (“Amendment 12”), effective as of _________, (“effective date”) to the PROFESSIONAL SERVICES AGREEMENT dated February 9. 2000 is made by and between the CITY OF SANTA CRUZ (“City”) and TRC Engineers, Inc. (“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 February 9, 2000, incorporated herein by this reference; WHEREAS, City and Consultant previously entered into the following Amendments to the contract:

1. On February 9, 2000, the City Council of the City of Santa Cruz and TRC Engineers, Inc. (formerly Imbsen & Associates, Inc.), entered into an agreement for design completion services.

2. The initial contract only authorized the consultant to proceed with design completion services for the following three bridges which have been completed:

Market Street Bridge at Branciforte Creek, Br. No. 36C-88 Water Street Bridge at Branciforte Creek, Br. No. 36C-90 East Cliff Bridge at San Lorenzo River, Br. No. 36C-100

3. Agreement Amendments 1 through 10 were necessary to authorize and complete environmental clearance and permitting, preliminary and final design, utility coordination, and Right-of-Way acquisition services for the Murray Street Bridge at Woods Lagoon, Br. No. 36C-108.

4. Agreement Amendment 11 was necessary to authorize the consultant to perform additional final coordination work in advertising the project for construction, reconfiguring the staging plan to secure Caltrans HBP funding, as well as design support services during the construction phase.

5. This Agreement Amendment 12 is necessary to authorize the consultant to perform additional design support services during the three-year duration construction phase.

WHEREAS, City and Consultant desire to enter into this 12th Amendment to the Agreement to authorize the consultant to perform additional design support services during the three-year duration construction phase.

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

1. In consideration of the mutual covenants of the parties thereto the Agreement is amended by adding following at the end of Section 1 Scope of Services:

The Consultant is authorized by the City of Santa Cruz to proceed with additional design support services during construction including funding documentation assistance and project closeout for the Murray Street Bridge at Woods Lagoon, Br. No. 36C-108, as described in Exhibit A-12 attached hereto.

24.3 12th Amendment to Professional Services Agreement for Design and Construction Support November 2025 Page 2

2. In consideration of the mutual covenants of the parties thereto the Agreement is amended by adding following at the end of Section 4 Fees and Payment:

The cost for additional basic and supplemental services shall not exceed $295,961 for this Agreement Amendment 12 as shown on Exhibit B-12 attached hereto, unless this Agreement is further amended.

The total cost for services, including the original Agreement and subsequent amendments including this Amendment 12 shall not exceed $3,519,716 for basic services or $2,451,593 for supplemental services, for a total of $5,971,309 unless this agreement is further amended.

3. All other terms and conditions of said Agreement shall remain in full force and effect. The terms of this 12th Amendment shall control if any conflicts exist.

4. Each party acknowledges that it has reviewed this 12th 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 12th Amendment.

5. The unenforceability, invalidity, or illegality of any provision(s) of this 12th Amendment shall not render the other provisions unenforceable, invalid, or illegal.

6. The Parties may execute this 12th 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.

7. The signatories to this 12th Amendment warrant and represent that each is authorized to 2025_10_03_Scope of work - Murray CON Support Amendment 2 10/3/2025 execute this 12th Amendment and that their respective signatures serve to legally obligate their respective representatives, agents, successors, and assigns to comply with the provisions of this 12th Amendment.

Notwithstanding these amended terms of the original Agreement by this 12th 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 12th Amendment shall control if any conflict exists.

Each party acknowledges that it has reviewed this 12th 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 12th Amendment.

The unenforceability, invalidity or illegality of any provision(s) of this 12th Amendment shall not render the other provisions unenforceable, invalid or illegal.

The Parties may execute this 12th 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 12th Amendment warrant and represent that each is authorized to execute this 12th Amendment and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this 12th Amendment.

24.4 12th Amendment to Professional Services Agreement for Design and Construction Support November 2025 Page 3
IN WITNESS WHEREOF, the City and the Consultant have executed this 12th Amendment effective as of the date first written above.

Technical Review:

By: _____________________________ Date: ___________
Kevin Crossley, Assistant Director

CONSULTANT
By: _____________________________ Date: __________________ Printed: Mark Imbriani______________ Title: Vice President

CITY OF SANTA CRUZ
By: _____________________________ Date: __________________ Matt Huffaker, City Manager
Approved As To Form:

By: _____________________________ Date: ___________
Office of the City Attorney

24.5 2025_10_03_Scope of work - Murray CON Support Amendment 3 10/3/2025 EXHIBIT A-12
Continued Construction Phase Support
Murray Street Bridge Seismic Retrofit and Barrier
Replacement Project
City of Santa Cruz, CA
TRC Engineers, Inc.

Scope of Professional Engineering Services

INTRODUCTION
The CITY desires for the CONSULTANT to provide continued support during the construction phase of the project, as well as perform any final coordination, funding and project closeout activities for the seismic retrofit and barrier replacement of the Murray Street Bridge at Woods Lagoon, Br. No. 36C0108. This is a continuation of work currently being performed, changes in scope are not anticipated in this scope of services excepting additional work under each task.

Additional, extensive, coordination with the Port will be required during construction although it is anticipated that the City’s R.E. will take the lead on all such coordination.

The work also includes continued coordination with the firm of Bender Rosenthal, as our subconsultant, and the CITY in performing right-of-way activities such as reimbursement of relocation costs. Coordination is also anticipated with City consultants that prepared the environmental documents and permit applications and will perform environmental monitoring.

Sewer design construction support will be performed by the County, under direct contract with a consultant should they so desire. CONSULTANT will coordinate to some degree during the sewer construction.

To the extent possible, additional assumptions are stated in this scope of services.

Significant effort will be required during the estimated 27-month duration of work.

Separate fee estimates are included in Exhibit B-12, consisting of basic services and supplemental services. All work for basic and supplemental services will be on a time and materials basis due to the indeterminate nature of the work.

CONSULTANT shall be entitled to rely upon the accuracy of data and information

24.6 2025_10_03_Scope of work - Murray CON Support Amendment 4 10/3/2025 provided by CITY or others without independent review or evaluation.

The detailed scope of services is described below, with task numbers reflecting those included in Attachment A-11 of Amendment 11:

DETAILED SCOPE OF WORK FOR AMENDMENT 12

BASIC TASKS
Task 4.B – Environmental and Permit Coordination
Coordination with the City and their Consultants Dudek and Gary Kittleson in providing information required for permit renewal, mitigation measures, or revisions to plans to accommodate agency requirements.

Task 4.C - Right-of-Way
This task includes coordination with right-of-way consultant BRI and the CITY. This work includes coordinating the conduct of relocation activities for displaced boat owners and assisting with preparation of and submittal of Caltrans forms for this purpose.

An additional budget of $10,000 is reserved for additional services by Bender Rosenthal, which will take the lead in these activities. It is assumed that no work by Hogan Land Surveys is required.

Task 4.E - Subconsultant Coordination
Coordination with Bender Rosenthal, Crawford, Peters Engineering Group, Design Lab 252, and Hogan Land Surveys during construction.

Task 4.K – Site Visits
Ongoing site visits are expected during the period of construction. It is anticipated that ten site visits will be required during the 30-month duration of the project.

Task 4.L – Phone Consultation and Respond to RFIs
CONSULTANT will be available for phone consultation to discuss project construction activities for minor items of discussion. This task also includes responding to Requests for Information (RFI) from the Contractor during the course of construction. It is expected that the CONSULTANT will receive the RFI directly from the CM on behalf of the CITY. An additional 70 labor hours of such work is included under Basic Services for this task.

Task 4.M – Shop Plan Reviews
The CONSULTANT will review and provide comments on the following list of shop plans when requested by the RE, however it is expected that the RE will perform certain reviews with minimal input from the CONSULTANT as denoted with an asterisk in the

24.7 2025_10_03_Scope of work - Murray CON Support Amendment 5 10/3/2025 list below. The CONSULTANT will visit the precasting plant during girder fabrication and attend girder erection in the field. An additional 76 labor hours of such work is included under Basic Services for this task.

1. Falsework plans*

2. Shoring Plans*

3. Concrete mix designs

4. CIDH Concrete pile placement plan

5. Review rebar shop drawings (not for approval, but to identify any errors)

6. Precast prestressed girder shop drawings

7. Conduct source inspection at precast plant (two trips assumed)

8. Field visit during erection of girders (two trips assumed with one overnight stay each trip)

9. Trestle Plans

10. Vibration Monitoring Plans

11. Deck Overlay Material

12. Temporary Building Plans*
Task 4.N – Change Order Assistance
This task includes assistance in evaluating or modifying existing plans and specifications for incorporation into change orders prepared by the RE. An additional 36 labor hours of such work is included under Basic Services for this task.

Task 4.P – Construction Phase Project Management & Coordination This task includes managing the CONSULTANT'S effort, including attending two weekly progress meetings for the project duration, documentation, maintaining files, preparing monthly progress reports and invoices for the CITY. An additional 332 labor hours of such work is included under Basic Services for this task.

Task 4.Q – Geotechnical Coordination
This task includes the CONSULTANT'S work in observing CIDH pile installation and answering questions related to geotechnical considerations. We have assumed an additional 38 labor hours of basic services.

Task 4.R – Environmental Monitoring Coordination
This task includes coordination with the CITY’s environmental monitoring team to respond to changes necessitated by field conditions. The CONSULTANT'S work does not include primary responsibility for environmental monitoring, pre-construction surveys environmental awareness training of field personnel, nor plant establishment monitoring. An additional 24 labor hours of such work is included under Basic Services for this task.

Task 4.S – Traffic Coordination

24.8 2025_10_03_Scope of work - Murray CON Support Amendment 6 10/3/2025 This task includes CONSULTANT’S work in responding to adaptive traffic management plan changes and other traffic support, recognizing that the Contractor, R.E., and CITY are responsible for traffic handling during construction. An additional 24 labor hours of such work is included under Basic Services for this task.

Task 4.T – Landscape and Irrigation Coordination
This task includes CONSULTANT’S work in performing work related to planting and irrigation during construction. An additional 10 labor hours of such work is included under Basic Services for this task. An additional budget of $3,000 is included under supplemental services for subconsultant Design Lab 252.

SUPPLEMENTAL TASKS
The following supplemental tasks may be required during work. Due to the indeterminate nature of each task, CITY will reimburse CONSULTANT for work performed utilizing the methodology shown on Exhibit B-12. Costs included on Exhibit B-12 for these tasks are estimates only. CONSULTANT will keep CITY apprised as to any work performed on these tasks on a monthly basis. CITY will give verbal Notice-ToProceed to CONSULTANT before the commencement of work on any of these tasks.

Task 5.A - Railroad or SCCRTC Coordination
CONSULTANT will coordinate with SCCRTC, particularly if railroad operations commence during construction. An additional 18 labor hours of such work is included for this task.

Task 5.B - Coast Guard Coordination
Additional scope may be required for this task.

Task 5.C - Port District Coordination and Design
An additional 100 labor hours of such work is included for this task.

Task 5.D - Utility Coordination/Design
An additional 160 labor hours of such work is included for this task.

Task 5.E – CCC, CDFW, NOAA, RWQCB, USACE and USCG
Coordination
Coordination with resource agencies during construction, although such work shall be led by the City and its R.E. An additional 16 labor hours of such work is included for this task.

Task 5.F - Caltrans Coordination
An additional 30 labor hours of such work is included for this task.

24.9 2025_10_03_Scope of work - Murray CON Support Amendment 7 10/3/2025 Task 5.G – County Sewer Line Construction Coordination
Coordination with the COUNTY and its consultant during construction, although such work shall be led by the City and its R.E. An additional 10 labor hours of such work is included for this task.

Task 5.H – Rail Trail Coordination
Coordination with PG&E, the CITY and its consultant in assisting them avoid our construction through redesign of the rail trail project and PG&E accommodation of same. An additional 18 labor hours of such work is included for this task.

Task 5.I – Partnering
Attend an initial and quarterly partnering meetings with the City, R.E., Contractor, and other interested parties. Each session is assumed to be four hours in duration and will be attended by three CONSULTANT team members. An additional 16 labor hours of such work is included for this task.

24.10 2025_10_03_Scope of work - Murray CON Support Amendment 8 10/3/2025

EXTRA SERVICES
Certain services not specifically included herein may be requested by the CITY or recommended by the CONSULTANT. These will be considered extra work and a scope, schedule, and fee negotiated. - Reimbursement will be determined utilizing the methodology shown on Exhibit B-12.

Listed below are examples of potential extra services. This list is not all inclusive.

1. Attendance at public meetings or additional meetings above the number specified herein.

2. Other services not specifically included herein.

CITY, COUNTY, OR PORT PROVIDED INFORMATION

AND SERVICES

1. Provide CONSULTANT with all available information for the project that was prepared by Caltrans, the CITY, or a consultant to Caltrans or the CITY.

2. All dock design and construction work, and work and coordination involving boat owners, businesses, etc. in the Port.

PROJECT SCHEDULE
The schedule is assumed to be of 30-month duration. This may be extended depending on realized field conditions. Considerations include allowable harbor construction windows, which the Port District prefers to be during the winter to minimize impacts on the summer sailing season. Thus, the ending date of this AGREEMENT amendment will be determined on the completion of construction and project closeout work.

CONSULTANT is prepared to extend the length of services with appropriate compensation.

ATTACHMENTS
None

24.11 2025_10_03_Scope of work - Murray CON Support Amendment 9 10/3/2025

PAYMENT PROVISIONS
Specific Rates of Compensation
A. CONSULTANT will be reimbursed for hours worked at the hourly rates specified in the CONSULTANT’s Hourly Rate Schedule from Amendment 11, attached hereto.

Estimated labor effort and costs are indicated on Exhibit B-12, Design Fee Estimate Worksheet. The specified hourly rates include direct salary costs, employee benefits, prevailing wages, employer payments, overhead, and fee. In the absence of specified future rates, an increase of 3% per annum is permitted as well as escalation for subconsultant agreements commencing on January 1, 2028.

B. In addition, CONSULTANT will be reimbursed for incurred (actual) direct costs other than salary costs that are in the approved Cost Proposal and identified in the approved Cost Proposal, and other reasonable and ordinary expenses. As actual costs for the various types of direct expenses may vary during the course of the project, costs presented herein are estimates only. Such costs will be reimbursed at the time they are incurred at then current prices.

C. The specific project applicable to this AGREEMENT has been assigned to CONSULTANT and as such there will not be the issuance of Task Orders, although amendments to this AGREEMENT may be required from time to time.

D. In Exhibit A-12 are identified the scope of services, expected results, project deliverables, period of performance, project schedule and designated CITY Project Coordinator. CITY and CONSULTANT both accept this scope of work and total cost; as evidenced by their signatures on this AGREEMENT amendment.

E. The specific rates of compensation listed herein are based on the labor and other rates set forth in CONSULTANT’s approved Cost Proposal. CONSULTANT shall be responsible for any future adjustments to prevailing wage rates including, but not limited to, base hourly rates and employer payments as determined by the Department of Industrial Relations. CONSULTANT is responsible for paying the appropriate rate, including escalations that take place during the term of the AGREEMENT.

F. Reimbursement for transportation and subsistence costs shall not exceed State rates.

CONSULTANT will be reimbursed for reasonable and responsible for transportation and subsistence costs in excess of State rates where alternatives are not available.

G. CONSULTANT shall obtain prior written approval in the form of an AGREEMENT amendment for a revised milestone cost estimate from the Contract Administrator before exceeding such estimate.

H. Progress payments will be made monthly in arrears based on services provided and actual costs incurred.

24.12 2025_10_03_Scope of work - Murray CON Support Amendment 10 10/3/2025 I. CONSULTANT shall not commence performance of work or services until this AGREEMENT amendment has been approved by CITY and notification to proceed has been issued by CITY’s Contract Administrator. No payment will be made prior to approval or for any work performed prior to approval of this AGREEMENT amendment.

J. This AGREEMENT amendment is of no force or effect until returned to CITY and signed by an authorized representative of CITY. No expenditures are authorized on a project and work shall not commence until this AGREEMENT amendment has been executed by CITY.

K. CONSULTANT will be reimbursed within thirty (30) days upon receipt by CITY’s Contract Administrator of itemized invoices in duplicate. Separate invoices itemizing all costs are required for all work performed. Invoices shall be submitted no later than thirty (30) calendar days after the performance of work for which CONSULTANT is billing, or upon completion of the work. Invoices shall detail the work performed on each milestone, on each project as applicable. Invoices shall follow the format stipulated for the approved Cost Proposal and shall reference this AGREEMENT amendment number and project title. Credits due CITY that include any equipment purchased must be reimbursed by CONSULTANT prior to the expiration or termination of this AGREEMENT. Invoices shall be mailed to CITY’s Contract Administrator at the following address:

Joshua Spangrud, P.E.

City of Santa Cruz Public Works Department
809 Center Street, Room 201
Santa Cruz, CA 95060
L. The period of performance for this AGREEMENT amendment shall be in accordance with dates specified herein.

M. The total amount payable by CITY shall not exceed the amount agreed to, unless authorized by an AGREEMENT amendment.

N. If CONSULTANT fails to satisfactorily complete a deliverable no payment will be made until the deliverable has been satisfactorily completed.

O. AGREEMENT amendments may be used to amend the language (or the terms) of this AGREEMENT or the scope of work under this AGREEMENT.

24.13 24.14
Date: Project: 03-Oct-25
Overhead %: 0.00% Increase: 4.0% 04:29:36 PM
Profit %: 0% Sub administration: 0%
Expenses Subconsultants Basic Total Fee Estimate - Basic Description Amount Name Amount Labor
Crawford Associates $0.00
Peters Engineering Group $0.00
Design Lab 252 $0.00
Total Fee Estimate - Supplemental
Labor
Subconsultants Supplemental
Name Amount
$0.00
$0.00 Total Fee Estimate
$3,000.00
$10,000.00 Overhead (Combined)
Fee
Expenses $0.00
Total $105,080.00
Total $13,000
Bender Rosenthal
Crawford Associates
$92,080.00
Subconsultants $13,000.00

TRC ENGINEERS
EXHIBIT B-12
$0
$0.00
$3,421.36
$190,881.36
10/03/25 117685.0009
Subconsultants
Expenses
Total
$187,460.00

CITY OF SANTA CRUZ
Subconsultants Admin. Costs
Other Direct Costs
Total

MURRAY STREET BRIDGE REHABILITATION DESIGN FEE ESTIMATE WORKSHEET AMENDMENT 12 CE
Car Rental
Misc.

Airfare (round trips)
Mileage
Travel
Peters Engineering Group
DesignLab 252
Total
$0
$896
$1,440
$408
$0
$0
ODC Subtotal
Lodging
Per Diem
Travel Subtotal
$677
$3,421
$2,744
$677
$0
Total $295,961.36
$0.00
$0.00
Labor $279,540.00
Subconsultants $13,000.00
Expenses $3,421.36
Fee- Murray Amendment 12,Expenses_Totals
10/3/2025

24.15 Date: 10/03/25 Project: Increase: 4.0%
Start Date: 4/1/2026 Sub admin: 0%
End Date: 3/31/2027 Overhead %:

Profit %:

LABOR
Phase Phase Description Total Total %
# Hours $ of
Hours Hours Hours Hours Hours Hours Hours Hours Hours Hours Hrs $ Total

4.A Final Design Coordination 0 0 0 0 0 0 0 0 0 0 0 0%

4.B Environmental & Permits 16 8 4 8 24 2 62 12480 0%

4.C Right of Way 12 16 4 4 36 9920 0%

4.D.1 Specifications 0 0 0 0 0 0 0%

4.D.2 Cost Estimate 0 0 0 0 0 0%

4.E Sub Coordination 8 8 4 2 2 4 4 4 36 7460 0%

4.F Quality Control 0 0 0 0 0%

4.G Final PS&E 0 0 0 0 0 0 0 0 0%

4.H Project Management & Coord 0 0 0 0 0%

4.I Bid Support 0 0 0 0 0 0 0 0 0 0 0%
0 0%

4.J Prebid & Precon Meetings 0 0 0 0 0 0 0 0 0%

4.K Site Visits 16 16 16 48 12960 0%

4.L RFI Responses 8 8 8 12 12 12 4 4 2 70 14560 0%

4.M Shop Plan Reviews 4 4 4 24 4 24 12 76 13400 0%

4.N CCO Assistance 4 4 4 4 4 4 4 4 4 36 7000 0%

4.O As-Built Drawings 0 0 0 0 0 0 0 0 0 0 0 0%

4.P CON PM & Coordination 100 80 100 40 12 332 92160 0%

4.Q Geotechnical Work 4 12 12 8 2 38 8320 0%

4.R Environmental Monitoring 8 8 8 0 24 4560 0%

4.S Traffic Coordination 2 2 4 0 2 2 12 2320 0%

4.T Landscape Coordination 2 4 2 2 10 2320 0%
Total CE Tasks 780 187460 100%
0 0 0%
0 0 0%
0 0 0%
0 0 0%
0 0 0%
0 0 0%
0 0 0%
0 0 0%
0 0 0%
0 0 0%
0 0 0%
0 0 0%
0 0 0%
0 0 0%
0 0 0%
0 0 0%
Totals Page 1 Hrs 184 Hrs 150 Hrs 136 Hrs 108 Hrs 30 Hrs 66 Hrs 34 Hrs 12 Hrs 14 Hrs 46 780 780 187460 100% Rate 320.0 Rate 290.0 Rate 280.0 Rate 200.0 Rate 180.0 Rate 140.0 Rate 110.0 Rate 150.0 Rate 110.0 Rate 80.0 Fee/Classification 58880 43500 38080 21600 5400 9240 3740 1800 1540 3680 187460 hours ok % of Total Hours/Classification 24% 19% 17% 14% 4% 8% 4% 2% 2% 6% 100% $ ok Sr. Project
Manager Manager Manager Engineer Engineer II
Project Project Project Senior Engineer
Conklin Christensen Pinkerton/Silva Bedal

CITY OF SANTA CRUZ

MURRAY STREET BRIDGE REHABILITATION
AMENDMENT 12 CE

DESIGN FEE ESTIMATE WORKSHEET

TRC ENGINEERS
2025
I Supervisor Technician
Engineer CADD CADD Phase
Subtotals
117685.0009
Assistant
Administrative
Fee- Murray Amendment 12,Task 1-Basic
10/3/2025

24.16 Project: Increase: 4.0%
117685.0009 Sub admin: 0%
Overhead %: 0%
Profit %: 0%
LABOR
Phase Phase Description Total Total %
# Hours $ of
Hours Hours Hours Hours Hours Hours Hours Hours Hours Hours Hrs $ Total SUPPLEMENTAL TASKS 0%

5.A Railroad or SCCRTC Coordination 8 8 2 18 5040 18 5040 5%

5.B Coast Guard Coordination 0 0 0 0 0%

5.C Port District Coordination and Design 20 40 20 8 8 0 0 4 100 26960 100 26960 27%

5.D Utility Coordination/Design 4 40 32 40 12 12 8 12 160 35160 160 35160 43%

5.E CCC, CDFW, NOAA, RWQCB, USACE & USCG Coordination
4 4 8 16 3880 16 3880 4%

5.F Caltrans Coordination 20 10 0 0 0 30 9300 30 9300 8%

5.G County Sewerline Coordination 2 4 4 0 0 10 2920 10 2920 3%

5.H Rail Trail Coordination 6 6 2 2 2 18 4460 18 4460 5%

5.I Partnering 4 4 4 4 16 4360 16 4360 4%
0 0 0 0 0%
0 0 0 0 0%
0 0 0 0 0%
0 0 0 0 0%
0 0 0 0 0%
0 0 0 0 0%
0 0 0 0 0%
0 0 0 0 0%
0 0 0 0 0%
0 0 0 0 0%
0 0 0 0 0%
0 0 0 0 0%
0 0 0 0 0%
0 0 0 0 0%
0 0 0 0 0%
0 0 0 0 0%
0 0 0 0 0%
0%
0%
0%
0%
Totals Page 2 Hrs 68 Hrs 116 Hrs 60 Hrs 52 Hrs 30 Hrs 0 Hrs 14 Hrs 0 Hrs 10 Hrs 18 368 368 92080 100% Rate 320.0 Rate 290.0 Rate 280.0 Rate 200.0 Rate 180.0 Rate 140.0 Rate 110.0 Rate 150.0 Rate 110.0 Rate 80.0 Fee/Classification 21760 33640 16800 10400 5400 0 1540 0 1100 1440 92080 hours ok % of Total Hours/Classification 18% 32% 16% 14% 8% 0% 4% 0% 3% 5% 100% $ ok Totals Pages 1 and 2 Hrs 252 Hrs 266 Hrs 196 Hrs 160 Hrs 60 Hrs 66 Hrs 48 Hrs 12 Hrs 24 Hrs 64 1148 1148 279540 Rate 320.0 Rate 290.0 Rate 280.0 Rate 200.0 Rate 180.0 Rate 140.0 Rate 110.0 Rate 150.0 Rate 110.0 Rate 80.0 Fee/Classification 80640 77140 54880 32000 10800 9240 5280 1800 2640 5120 279540 hours ok % of Total Hours/Classification 22% 23% 17% 14% 5% 6% 4% 1% 2% 6% 100% $ ok

CITY OF SANTA CRUZ

MURRAY STREET BRIDGE REHABILITATION
AMENDMENT 12 CE

DESIGN FEE ESTIMATE WORKSHEET

TRC ENGINEERS
2023
Phase
I Supervisor Assistant Subtotals
CADD
Technician
CADD Administrative
Manager Manager
Engineer
II
Senior Engineer
Engineer
Project
Manager Engineer
Sr. Project Project Project
0 Conklin Christensen Pinkerton/Silva Bedal 0 0 0 0 0
Fee- Murray Amendment 12,Task 3-Supp 10/3/2025

24.17 TRC ENGINEERS

FEE ESTIMATE WORKSHEET
Travel
From Sacramento
To Santa Cruz
# of people 4
# of days 2 # of nights 2
# of trips 2
Rate # #
Airfare (round trips) x trips x people = $0.00
Mileage $0.700 x 320 miles x 4 trips = $896.00
Lodging $180.00 x 2 nights x 4 people = $1,440.00
Per Diem $51.00 x 2 days x 4 people = $408.00
Car rental x days x people = $0.00
Miscellaneous x units x units = $0.00
Total Travel $2,744.00
ODC's
Rate #
Mail $0.73 x 2 pieces = $1.46
Overnight mail $16.00 x 6 pieces = $96.00
Copies $0.08 x 1000 copies = $80.00
Prints (22x34) $2.50 x prints = $0.00
Vellums (22x34) $7.50 x prints = $0.00
Mylars (22x34) $15.00 x 0 prints = $0.00
Miscellaneous $250.00 x 2 units = $500.00
Total ODC's $677.46
Total Travel and ODC's $3,421.46
Fee- Murray Amendment 12,Expense Worksheet 10/3/2025

24.18 City Council

AGENDA REPORT
DATE: 11/20/2025
AGENDA OF: 12/09/2025
DEPARTMENT: Public Works
SUBJECT: West Cliff Drive Stabilization Project - Notice of Completion (PW) LOCATION: District 6
RECOMMENDATION: Motion to accept the work of Granite Construction (Watsonville, CA), authorize the filing of the Notice of Completion for the West Cliff Stabilization Project (c401501), and authorize the Public Works Director to sign the Notice of Completion as the Owner’s Authorized Agent.

BACKGROUND: In December 2022 and January 2023 several high wave and storm events dislodged approximately 3,500 tons of coastal armoring (rip-rap) and eroded significantly into the public right of way at four initial locations: opposite 920, 932, 1016 and 1030 West Cliff Drive. These events were declared a disaster by the State of California.

City Council authorized the solicitation of bids at it’s June 27, 2023 meeting. Granite Construction was awarded the initial contract under emergency provisions, and, as additional damage to infrastructure was sustained, remedying that damage was added into the scope of Granite’s contract.

Another high wave and storm event occurred in December 2023. This event was declared a disaster by the State of California and resulted in additional damage opposite 944 and 960 West Cliff Drive.

Work progressed essentially from the east to the west, with the completion of sea walls located across from 920 and 932 West Cliff Drive without significant incident. Across from the1016, and then later at 1030 West Cliff Drive locations, sea caves were discovered that made the designed solution no longer feasible. As Granite Construction was mobilized and occupying the area.

Work behind and around the end of an existing retaining wall across from the 944 and 960 West Cliff Drive areas– were added to the scope of Granite Construction’s contract.

The most challenging of the walls to be built, located in the1030 West Cliff Drive area, was effectively completed this past summer. New handrails and new paving on both the path and the roadway were constructed.

25.1 DISCUSSION: The construction is now complete. Staff have inspected the work and found it to have been completed in accordance with City and State specifications.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The emergency repair work has already been performed and was statutorily exempt from environmental review under CEQA Guidelines Section 15269, Emergency Projects. (14 CCR §15269.)
HEALTH IN ALL POLICIES (HiAP): This project advances the City’s HiAP objectives by addressing key pillars of public health, equity, and sustainability:

Public Health: This work mitigates climate-related hazards that threaten physical safety and infrastructure by providing temporary erosion control in the damaged area of the West Cliff Multi-Use Path. It also ensures continued access to outdoor recreational amenities that support physical and mental health.

Sustainability: Reopening and ensuring the safety of the West Cliff Multi-Use Path promotes low emission transportation modes such as biking and walking by maintaining safe and accessible routes.

The project reflects the City’s commitment to embedding HiAP principles in infrastructure planning and implementation, fostering resilient systems that improve community well-being.

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 project was completed with a total cost of $9,918,664 and is funded by the General Capital Improvement Fund in the FY23 and 24 Capital Investment Improvement Program. In addition, approximately 88.53% of the cost will be borne by FHWA/CalOES funds dedicated to this project.

Prepared By:

Joshua Spangrud, P.E
Senior Civil Engineer
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. NOTICE OF COMPLETION.DOCX

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

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

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

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

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

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: West Cliff Stabilization Project c401501

3. Nature of Work Performed on the Property or Materials Furnished for the City. The Project consisted of work described as: construction of seawalls, placement of coastal armoring, backfill, paving, placing handrail.

4. The general site location description or address (the “Property”) of the public improvement is located at: the 900 and 1000 blocks of West Cliff Drive.

5. Name and Address of Contractor. The Contractor on the Project is: Granite Construction, Inc. 585 W.

Beach Street, Watsonville CA 95076.

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

7. Date of Completion. The Project on the Property was completed on: September 1, 2025

8. The filing of this Notice of Completion was authorized by the Santa Cruz City Council Minute Order on Tuesday, December 9, 2025
DATE: ___________________
Nathan Nguyen
Director of Public Works, City of Santa Cruz
RECORDED AT THE REQUEST OF:

City of Santa Cruz, Public Works
Attn: Joshua Spangrud
WHEN RECORDED MAIL TO:

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

25.3 Notice of Completion (Revised Oct 2021)

VERIFICATION FOR THE CITY OF SANTA CRUZ
I have read the foregoing Notice of Completion and know the contents thereof, and I certify that the same is true of my own knowledge, except as to those matters which are therein stated upon my information or belief, and as to those matters I believe it to be true. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Executed on ____________________at Santa Cruz, CA
Nathan Nguyen
Director of Public Works, City of Santa Cruz

25.4 Notice of Completion (Revised Oct 2021)

PROOF OF SERVICE DECLARATION
(California Civil Code § 8118)
I, Joshua Spangrud, declare that I served copies of the above NOTICE OF COMPLETION on the interested parties, in the manner and at the date and place set forth below (Check One):

Direct Contractor: Granite Construction, Inc.
585 W. Beach Street, Watsonville CA 95076.
☐ REGISTERED, CERTIFIED, OR EXPRESS MAIL: by placing the Notice in a sealed envelope with postage fully prepaid and depositing the envelope in the United States mail by registered, certified, or express mail. Documentation of such service is attached herein. ☐ OVERNIGHT DELIVERY: by causing the Notice to be picked up for overnight delivery by an express service carrier. Documentation of such service is attached herein. ☐ PERSONAL DELIVERY: by causing the Notice to be personally delivered to each of the addresses above stated on the date below.
☐ CODE OF CIV. PROC. § 415.20: by leaving the Notice and mailing a copy of the Notice in the manner provided under California Code of Civil Procedure § 415.20 for service of a summons and complaint in a civil action.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Executed on December 9, 2025, at Santa Cruz, California.

Joshua Spangrud

25.5 City Council

AGENDA REPORT
DATE: 11/19/2025
AGENDA OF: 12/09/2025
DEPARTMENT: Water
SUBJECT: Adjustment of the City of Santa Cruz Water Department Miscellaneous Fees (WT)
LOCATION: County
RECOMMENDATION: Motion to adopt a resolution adjusting the City of Santa Cruz Water Department’s miscellaneous fees for services due to labor cost increases and rescinding Resolution No. NS-30,337.

BACKGROUND: The City of Santa Cruz Water Department (SCWD) maintains a Miscellaneous Fees Schedule for services requested on an as-needed basis. These fees apply to customer service-related activities, engineering plan reviews, and inspection services. Fees are charged at the time of service. Fee amounts are designed to recover the cost of labor, materials, and parts needed to perform the service. This fee schedule is typically updated annually, on a calendar-year basis, with current labor and material costs for full cost-recovery of these services.

On May 9, 2024, City Council approved revised miscellaneous fees calculated using the average of actual labor and material costs from FY (fiscal year) 2022 and FY 2023. The updated fees were effective July 1, 2024. In FY 2025, the Water Department collected $321,039 in miscellaneous fees, which accounted for 0.5% of the total Water Department revenue.

DISCUSSION: As with previous adjustments, the Water Department re-calculated the miscellaneous fees using actual FY 2024 and FY 2025 labor and material costs, adjusted for inflation. The calculation continues to apply a blended-rate approach consistent with the City’s standard full-cost recovery methodology that incorporates personnel, overhead costs, and support costs across all divisions. This approach provides an accurate and comprehensive reflection of the total cost of service.

Beginning with this adjustment, the Water Department fees will transition from fiscal-year based to calendar-year based fee adjustments. This change aligns the Water Department’s process with the City’s broader citywide fee update schedule, improving coordination and administrative efficiency.

26.1 CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

Approval of the revised rates is not a project under CEQA because it does not have the potential to cause physical change in the environment directly or indirectly.

HEALTH IN ALL POLICIES (HiAP): Adjustments to Water Department miscellaneous fees addresses the HiAP pillars of equity and fiscal sustainability; fees are assessed to the customers that incur the cost of labor and materials. Such specialty services are needed by an average of 11% of customers annually and, therefore, are not included in the cost-of-service analysis used to set water rates charged to all customers.

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: It is estimated the amount collected in Water Department miscellaneous fees will increase by 2%, resulting in approximately $327,000 in FY 2026 revenue, and $6,400 more revenue in the Water Operations Fund 711 than collected in FY 2025.

Prepared By:

Nicholas Kurns
Assistant Finance Director -
Water Department
Submitted By:

Heidi Luckenbach
Water Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

2. FEE COMPARISON.PDF

26.2 RESOLUTION NO. NS-30,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ ADJUSTING

MISCELLANEOUS WATER SERVICE FEES DUE TO LABOR COST INCREASES AND RESCINDING RESOLUTION NO. NS-30,337
WHEREAS, Title 16 of the Santa Cruz Municipal Code provides the rules and requirements governing the administration and operation of the City of Santa Cruz's water system, including identification of the various sources of authority to establish and amend miscellaneous service fees; and
WHEREAS, the miscellaneous service fees are designed to fully recover the cost of providing the service requested by the customer; and
WHEREAS, on May 28, 2024, the City Council adopted Resolution No. NS-30,337 establishing revised miscellaneous service fees that recover the cost to provide the service; and WHEREAS, the City of Santa Cruz Water Department (Water Department or SCWD) is implementing an adjustment based on prior fiscal year labor costs which will ensure that the miscellaneous service fees continue to fully recover the costs to provide the services.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz that miscellaneous water service fees will be charged as follows:

Section 1. MISCELLANEOUS SERVICE FEES SCHEDULE

NEW ACCOUNTS AND BILLING
Service description Fee

1. Application for service $65/application

2. Late payment charge (per SCMC 16.13.040) 10% or $5, whichever is greater

3. Returned payment charge $25

RESTORING SERVICE AFTER SHUT-OFF
Service description Base fee When additional fees may apply

4. Restore service $130 After 3:00pm, fee is $390 *
If customer self-restores service (in addition to above fee):

5. Labor to set or re-set a lock $130/hour Add cost for parts if lock is broken or a locking bracket is needed

6. Labor to remove meter if lock is broken $260 Add $130/hour over 2 hours

7. Labor to reset meter $260 After 3:00 pm, fee is $390*

26.3 RESOLUTION NO. NS-30,XXX

SERVICE CHARGES
Service description Base fee When additional fees may apply

8. To start or stop service No fee After hour rate will apply after 3:00 pm *

9. Service at the meter (such as leak checks, to
dig out box, and verify meter reads)
No fee After hour rate will apply after 3:00
pm *

10. Service beyond the meter on property side
(such as testing for cross-connection)
$130/hour Add parts as needed. After hour
rate will apply after 3:00 pm *

11. Repair of damage to SCWD
equipment/facilities
$390 Add parts as needed. Add
$130/hour each hour over 3 *

12. Unauthorized connection assessment and
response
$390 Add parts as needed. Add
$130/hour each hour over 3 *

13. Cancellation/Rescheduling without 1
business-day notice of appointments for
contractor related assistance
$250 Per missed appointment

14. Monthly manual meter reading for billing $65 When customers opt out of remote reading for billing
* Every effort will be made to schedule services to charge at the regular business hour rate. Requests for nonemergency services received after 3:00pm will be subject to the after-hours rate of $195.00/hour with a 2-hour minimum.

METER TESTING
Service description Deposit
amount
Deposit policy

15. In-field meter test (during regular office
hours only)
$130

16. Meter bench test, 5/8” or 3/4” meter $260

17. Meter bench test, 1” meter $260

18. Meter bench test, 1-1/2” to 2” meter $390

19. Meter field test, 3” and over meter $260
Deposit will be returned if meter is
found to run more than 2% fast.

PLAN REVIEW FEES**
Charges will be applied for review of construction and development plans or drawings by Water Department engineering staff to ensure compliance with water codes and design standards. Plan review fees are in addition to any other fees and charges that may be required as a condition of approval.

Service description Base fee When additional fees may apply Up to 5,000 sq ft of
landscape area

20. Landscape/ $260 Add $130/hour each hour over 2
Irrigation plan
review: 5,000 – 20,000 sq ft of
landscape area
$520 Add $130/hour each hour over 4

26.4 RESOLUTION NO. NS-30,XXX
Over 20,000 sq ft of
landscape area
$1040 Add $130/hour each hour over 8

21. Residential w/ separate meter (includes fire
service review)
$130/unit None
3/4” or 5/8” meter $130 Add $130/hour each hour over 1
1” meter $260 Add $130/hour each hour over 2
1-1/2” meter $390 Add $130/hour each hour over 3
2” meter $650 Add $130/hour each hour over 5
3” meter $910 Add $130/hour each hour over 7
4” meter $1170 Add $130/hour each hour over 9

22. Non-residential
or residential on
a master meter
(does not include
fire service
review):
6” meter and over $1300 Add $130/hour each hour over 10

23. Monitoring well permit $130/well Add $130/hour each hour over 1

24. Production well permit $390/well Add $130/hour each hour over 3

25. Commercial fire service $130 each Add $130/hour each hour over 1

26. Fire hydrant $260/ hydrant Add $130/hour each hour over 2

27. Water main extension $715 Add $130/hour each hour over 5.5

28. Water main replacement $1430 Add $130/hour each hour over 11

29. Backflow device $260 Add $130/hour each hour over 2

30. Backflow device retrofit No fee

31. Water facility (such as a pressure regulating
station, booster pump station, or storage tank)
$520 Add $130/hour each hour over 4
INSPECTION SERVICES**
Inspections are required for applicant/contractor-installed service lines, line extensions, and devices.

Service description Base fee When additional fees may apply

32. Water service $390/tap Add $130/hour each hour over 3

33. Fire hydrant $390/
hydrant
Add $130/hour each hour over 3

34. Backflow device $260 Add $130/hour each hour over 2

35. Backflow device retrofit No fee

36. Water service / fire hydrant adjustment
(A separate fee for a Public Works Street
Opening Permit or Encroachment Permit may
apply)
$130 Add $130/hour each hour over 1
Base fee: $130 up to
100lf
Add $1.00 /lf over 100 lf 37. Water main
extension or
replacement, Per Plus: Taps $260/tap

26.5 RESOLUTION NO. NS-30,XXX
Plus: Tie-Ins $1872 each Add $130/hour each hour over

14.4 hours
Plus: Hydrants $130 each
Plus: Thrust block $130 each
Plus: Disinfection &
pressure testing
$2405 each Add cost of dechlorination
materials. Add $130/hour each
hour over 18.5
linear feet (lf)
Plus: Water facilities $390 each Add $130/hour each hour over 3

38. Water main extension mapping $520 Add $130/hour each hour over 4

39. Monitoring well permit $130/well Add $130/hour each hour over 1

40. Production well permit $260/well Add $130/hour each hour over 2

41. Bucket Test $130/test Add $130/hour each hour over 1 METER INSTALLATION**
New service connections will require the installation of a new meter by SCWD. Size and type of meter installed will be according to the approved plans. Total fee will be labor plus the cost of the meter.

Service description Labor cost Plus cost of materials

42. 5/8”, 3/4", or 1” meter $130 Meter estimate: $218 - $260

43. 1-1/2” or 2” meter $520 Meter estimate: $406 -$524

44. 3”, 4”, or 6” meter $780 Meter estimate: $1667 - $2013

45. Over 6” meter Time and materials

46. B16-B36 polycarbonate meter box lid $65 Lid estimate: $42 - $70

47. 1017- 1730 traffic-rated meter box lid $65 Lid estimate: $270 - $503 ** An additional 6% technology surcharge will be added to these fees at the time that fees are assessed per Resolution No. NS30,161.

BULK WATER STATION USE
Users must comply with requirements of the Bulk Water Permit issued by SCWD.

Service description Fee

48. Deposit $173 minimum deposit, based on estimated use

49. Annual permit processing $130 per truck

50. Reported usage, per centum cubic feet (ccf)
(monthly)
Current commercial inside rate (all commodity
rates), $50 minimum

51. Failure to report use (monthly) $100

HYDRANT METER USE

26.6 RESOLUTION NO. NS-30,XXX
Service description Fee

52. Deposit
Amount is the cost for full replacement. If the
meter requires repairs upon return, the deposit
amount to be returned will be reduced by the cost
of parts and labor to repair.
$3415

53. Application for service $65

54. Water Ready to Service (monthly) Current 3” meter inside rate

55. Water usage, per ccf (monthly) Current commercial inside rate (all commodity rates)

56. Daily use fee $5

OTHER REQUESTS
Service description Fee

57. Records research / data requests
This excludes public records subject to the CA
Public Records Act
$130/hour

TEMPORARY CONSTRUCTION SERVICE
All standard applicable fees and charges apply. This includes, but may not be limited to, fees and charges for installation, inspection, application for service, water usage, and System Development Charge. Upon completion of the construction project, the System Development Charge will be refunded or credited to the resulting project. After 180 days, temporary status may be re-evaluated, and account converted to permanent status.

BE IT FURTHER RESOLVED that until such a time as a new Water Department labor cost study has been completed, the City Council authorizes that each fee’s cost basis of providing the service within the Miscellaneous Water Service Fees Schedule shall be increased annually for any annual increase in the Consumer Price Index for all urban consumers for the San Francisco/Oakland Bay Area (all items), provided by the U.S. Bureau of Labor Statistics.

BE IT FURTHER RESOLVED that Resolution No. NS-30,337 is hereby rescinded.

Section 2. EFFECTIVE DATE
This Resolution shall be effective January 1, 2026.

26.7 RESOLUTION NO. NS-30,XXX
PASSED AND ADOPTED this 9th day of December, 2025 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

26.8 Water's Miscellaneous Service Fees
Rate Comparison
Service Type # hours to
perform task
FY 2024
Fee
2026
Fee
Application for Service 0.5 $62.50 $65.00
Records Research Per hour $125.00 $130.00
Restoration of Service After Shut-Down for Non-Payment
During regular working hours 1.0 $125.00 $130.00
After regular working hours 3.0 $375.00 $390.00
Set a lock 1.0 $125.00 $130.00
Lock replacement $16.00 $16.00
Lock bracket, if needed $51.00 $51.00
Visit to remove meter 2.0 $250.00 $260.00
Visit to re-set meter 2.0 $250.00 $260.00
Service Calls
During regular working hours 1.0 $125.00 $130.00
After regular working hours 3.0 $375.00 $390.00
All repairs, including curb stop 3.0 $375.00 $390.00
Unauthorized Connection 3.0 $375.00 $390.00
Insufficient Notice for Cancellation $250.00 $250.00
Manual meter reading for billing 0.5 $62.50 $65.00
Meter Testing by Request
In Field meter testing (flow test) 1.0 $125.00 $130.00
Meter bench test, 5/8” or 3/4” meter 2.0 $250.00 $260.00 Meter bench test, 1” meter 2.0 $250.00 $260.00
Meter bench test, 1-1/2” to 3” meter 3.0 $375.00 $390.00 Meter field test, 3” and over meter 2.0 $250.00 $260.00 Water Service Plan Review
Landscape, Up to 5,000sqft landscape area 2.0 $250.00 $260.00 Landscape, 5,000-20,000sqft landscape area 4.0 $500.00 $520.00 Landscape, Over 20,000sqft landscape area 8.0 $1,000.00 $1,040.00 Residential separate meter 1.0 $125.00 $130.00
Nonresidential, 3/4" x 5/8" 1.0 $125.00 $130.00
Nonresidential, 1" 2.0 $250.00 $260.00
Nonresidential, 1-1/2" 3.0 $375.00 $390.00
Nonresidential, 2" 5.0 $625.00 $650.00
Nonresidential, 3" 7.0 $875.00 $910.00
Nonresidential, 4" 9.0 $1,125.00 $1,170.00
Nonresidential, 6" and over 10.0 $1,250.00 $1,300.00
Monitoring Well Permit Plan Review 1.0 $125.00 $130.00
Production Well Permit Plan Review 3.0 $375.00 $390.00
Commercial Fire Service Plan Review 1.0 $125.00 $130.00 Fire Hydrant Plan Review 2.0 $250.00 $260.00

26.9 Service Type # hours to
perform task
FY 2024
Fee
2026
Fee
Water main extension plan review 5.5 $687.50 $715.00
Water main replacement plan review 11.0 $1,375.00 $1,430.00 Backflow plan review 2.0 $250.00 $260.00
Facility plan review 4.0 $500.00 $520.00
Inspection Services
Water Service Inspection 3.0 $375.00 $390.00
Fire Hydrant Inspection 3.0 $375.00 $390.00
Backflow Device Inspection 2.0 $250.00 $260.00
Water Service/Fire Hydrant Adjustment 1.0 $125.00 $130.00 Main Extension/Replace: Base fee 1.0 $125.00 $130.00
Main Extension/Replace: add'l lf $1/lf over 100 lf $1/lf over 100 lf Main Extension/Replace: Taps 2.0 $250.00 $260.00
Main Extension/Replace: Tie-Ins 14.4 $1,800.00 $1,872.00 Main Extension/Replace: Hydrants 1.0 $125.00 $130.00
Main Extension/Repl: Thrust Block 1.0 $125.00 $130.00
Main Extension: Disinfect & Pressure Test 18.5 $2,312.50 $2,405.00 Main Extension/Repl: Add'l facilities 3.0 $375.00 $390.00 Water Main Extension Mapping 4.0 $500.00 $520.00
Monitoring Well Permit Inspection 1.0 $125.00 $130.00
Production Well Permit Inspection 2.0 $250.00 $260.00
Bucket Test 1.0 $125.00 $130.00
Meter Installation Labor (parts not included)
5/8" Meter 1.0 $125.00 $130.00
3/4" Meter 1.0 $125.00 $130.00
1" Meter 1.0 $125.00 $130.00
1 1/2" Meter 4.0 $500.00 $520.00
2" Meter 4.0 $500.00 $520.00
3" Meter 6.0 $750.00 $780.00
4" Meter 6.0 $750.00 $780.00
6" Meter 6.0 $750.00 $780.00
Over 6" Actual Cost Actual Cost
Meter box lid delivery 6.0 $62.50 $780.00
Bulk Water Station Use
Deposit $173.00 $173.00
Annual permit 1.0 $125.00 $130.00
Minimum usage, per ccf (monthly) $50.00 $50.00
Failure to report use (monthly) $100.00 $100.00
Hydrant Meter Use
Deposit (to cover repair or replace) $3,415.00 $3,415.00 Service Application 0.5 $62.50 $65.00
Daily Use Fee $5.00 $5.00
*Fees in resolution rounded to the nearest dollar

26.10 City Council

AGENDA REPORT
DATE: 11/19/2025
AGENDA OF: 12/09/2025
DEPARTMENT: Water
SUBJECT: Water Supply Augmentation, Beltz Well 10 Aquifer Storage and Recovery Pilot Test and Beltz 11 Injection Pilot Test, Pueblo Water Resources Professional Services Contract for Pilot Test Work Plan and Hydrogeology Support to Perform the Pilot Test (WT)
LOCATION: County
RECOMMENDATION: Motion to:
1) Authorize the City Manager to execute an agreement in a form to be approved by the City Attorney with Pueblo Water Resources (PWR) of Ventura, CA in the amount of $455,910 to conduct pilot testing of Aquifer Storage and Recovery (ASR) at Beltz Well 10 and Beltz Well 11;
2) Authorize the Water Director, or designee, to execute amendments that are within the approved budget; and
3) Adopt a finding of Categorical Exemption pursuant to Section 14 Cal Code Regs §15301 (Existing Facilities) and §15306 (Information Collection) of the California Environmental Quality Act (CEQA) Guidelines.

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 directed by the Securing Our Water Future Policy. The recommended strategy is developed around the goal of delivering long-term water supply security to the City of Santa Cruz (City) water customers. Water Department staff continue to study the feasibility of the planned recommendations that include water transfers and exchanges, aquifer storage and recovery (ASR), recycled water, and desalination.

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 extracted when needed to meet customer demand. The City is looking at the feasibility of ASR in both the Santa Margarita Groundwater Basin (SMGB) underlying the

27.1 Scotts Valley area and the Mid-County Groundwater Basin (MGB) underlying the Live Oak area.

ASR implementation consists of three phases: technical feasibility, pilot testing, and implementation. Previous Council actions to date supported the following activities:

February 9, 2016 Develop an ASR work plan.

April 25, 2017 Perform groundwater modeling that included approximately 40 modeling scenarios.

October 9, 2018 Pilot test at the City’s Beltz 12 water production well.

December 10, 2019 Pilot test at the City’s Beltz 8 water production well.

October 26, 2021 ASR Demonstration Study in the City’s Beltz 12 water production well.

November 9, 2021 ASR Demonstration Study in the City’s Beltz 8 water production well.

November 15, 2022 Year 2 of ASR Demonstration Studies in the City’s Beltz 8 and 12 water production wells.

March 23, 2023 ASR Pilot Test for Beltz 9 well.

May 28, 2024 Beltz 10 Well Rehabilitation.

Pilot testing at Beltz 10 would include both injection and extraction for ASR, while pilot testing at Beltz 11 would include injection testing only. Beltz 10 and Beltz 11 are located at the same water facility but in different zones of the Purisima Aquifer. While the primary objective of pilot testing of Beltz 10 is to determine the feasibility of storing and extracting water from the aquifer, the primary purpose of the injection pilot testing at Beltz 11 is to investigate the feasibility of raising aquifer water levels at the coastline to mitigate the potential for seawater intrusion.

DISCUSSION: Based on favorable results obtained from previous studies, staff is recommending that City Council authorize signing an agreement with PWR for Pilot Testing of ASR at Beltz 10 and to perform injection testing at Beltz 11. Findings from this work will inform whether or not to implement ASR at Beltz Well 10 and injection at Beltz Well 11. PWR work consists of the following main sequential tasks:

1. Development of an ASR and injection pilot test Work Plan

2. Permitting assistance

3. Development of plans, specifications and bidding assistance for a well contractor to prepare the wells and site facilities for testing

4. Field oversight and management of well and site facilities preparation

5. Implementation of the ASR and injection testing

6. Data collection, analysis and reporting
PWR’s efforts will not include construction work to prepare the wells for pilot testing; construction of the pilot facilities, while designed by PWR, will be constructed by others and bid separately.

Staff recommend continuing with the sole-source contract with PWR. PWR has ongoing work with the City performing hydrogeological services and has served as a technical expert for work by both the Santa Margarita and Mid-County groundwater agencies. Their work with the City will support the timely implementation of the plan and schedule recommended by the WSAC and previously approved by the City Council. Award of a new contract has been reviewed by the Purchasing Manager and is supportive of the non-competitive award as authorized in SCMC Section 3.08.150.

27.2 CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: Staff has performed a preliminary environmental assessment of the work required for the Beltz 10 ASR and Beltz 11 Injection Pilot Tests and has determined that the tests fall within the Categorical Exemption set forth in Section 14 Cal Code Regs §15301 and §15306 of the California Environmental Quality Act (CEQA) Guidelines which exempt operation, or minor alteration of existing public facilities involving negligible or no expansion of existing or former use, and information collection for scientific data collection, research, experimental management, and resource evaluation activities that do not result in a serious or major disturbance of an environmental resource. Furthermore, Staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, section 15300.2 apply.

HEALTH IN ALL POLICIES (HiAP): The objectives of the effort 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 ASR functions will bolster water supplies during periods of drought and emergencies such as wildfire. This effort 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: No

3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: Funds are available in the Water Department’s FY 2026 Capital Investment Program budget, c701609 – ASR Planning. 49% of the effort is funded by a Water Infrastructure Finance and Innovation Act (WIFIA) low-interest 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. DRAFT PROFESSIONAL SERVICES AGREEMENT.PDF

27.3 City of Santa Cruz Professional Services Agreement for BELTZ WELL 10 AQUIFER STORAGE AND RECOVERY PILOT TEST
AND BELTZ WELL 11 INJECTION PILOT TEST
December 2025 Page 1
Professional Services Agreement With
PUEBLO WATER RESOURCES, INC.

For
BELTZ WELL 10 AQUIFER STORAGE AND RECOVERY PILOT TEST
AND BELTZ WELL 11 INJECTION PILOT TEST
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) for professional services is made by and between the City of Santa Cruz (“City”) and Pueblo Water Resources, Inc. (“Consultant”) (each is referred to individually as a “Party” and collectively, as the “Parties”) as of ____________, 2026 (the “Effective Date”).

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

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

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

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

If, in performing the services, 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 or authority.

Consultant shall meet with Heidi Luckenbach, Director of the Water Department, hereinafter called "Director", or other designated and authorized City personnel, and/ or third parties as necessary, on all matters connected with carrying out Consultant’s services described in Exhibit A. Such meetings shall be held at the request of either Party.

Consultant shall obtain City’s review and acceptance of completed work monthly, or at other intervals as may be mutually agreed upon during the term of this Agreement. Review or acceptance of Consultant’s work by City or its designee shall not relieve Consultant from responsibility for errors and omissions in Consultant’s work.

SECTION 3: RESPONSIBILITIES OF THE CITY
City shall make available to Consultant all data and information in the City’s possession necessary to carrying out and completing the services 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.

27.4 City of Santa Cruz Professional Services Agreement for BELTZ WELL 10 AQUIFER STORAGE AND RECOVERY PILOT TEST
AND BELTZ WELL 11 INJECTION PILOT TEST
December 2025 Page 2
The Director may authorize a City staff person to serve as their representative with respect to this Agreement.

Consultant’s work 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 acceptance.

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. Markups shall not be charged for any approved sub-consultants or subcontractors.

Consultant agrees that the payments to Consultant specified in this Section 4 will constitute full and complete compensation for all obligations assumed by Consultant under this Agreement. Such payments shall be considered the full compensation for all personnel, materials, supplies, and equipment used by Consultant in the Scope of Work. Where conflicts regarding compensation may occur, the provisions of this section shall 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 $455,910.00 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 an authorized representative of Consultant (if Consultant is an entity):
“[I] or [As an authorized representative of Consultant, I] hereby certify that the charge of (Insert invoice amount) as summarized above and shown in detail on the attachments is in accordance with the terms of the Agreement by and between the City of Santa Cruz and (Insert Party Name) dated (Insert Agreement Date), and has not been previously paid." This Agreement is contingent upon the appropriation of sufficient funding by the City and federal government for the Scope of Work covered by this Agreement. If funding is reduced or deleted for the Scope of Work 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 any reduced amount.

SECTION 5: TRAVEL REIMBURSEMENT POLICY
The City agrees to reimburse Consultant and Consultant's employee(s) for only authorized travel expenses. 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 expenses shall not exceed the amount described in the Fee Schedule, Exhibit B.

27.5 City of Santa Cruz Professional Services Agreement for BELTZ WELL 10 AQUIFER STORAGE AND RECOVERY PILOT TEST
AND BELTZ WELL 11 INJECTION PILOT TEST
December 2025 Page 3
Consultant will be reimbursed at the Per Diem rate of $150/day which includes all meals, lodging, and incidentals. Receipts are required for reimbursement.

Consultant will be reimbursed for vehicle use on travel days at the rate of $75/travel day. 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.

Travel expenses not listed or checked above will not be reimbursed. Travel reimbursements are paid after the completion of travel. There are no travel advances.

Exceptions to any of the above requirements require advanced written permission from the Director or City's designated agent contracting with the Consu1tant. The City of Santa Cruz has the sole discretion to deny any Consultant proposed reimbursable expense the City has determined to be excessive or an inappropriate use of public funds.

SECTION 6: CHANGES IN WORK
City may negotiate changes to the Scope of Work. No changes to the Scope of Work shall be made without the prior written agreement between 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 commence on the effective date of this Agreement and terminate on upon completion of the Scope of Work.

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

The Work Schedule for completion of the work shall be as shown upon Exhibit B. In the event there are major changes to the Scope of Work, the schedule for completion as stated in Exhibit C may be adjusted with the City’s approval to allow Consultant a reasonable period of time within which to complete any additional work which may be required as a result of the changes to the Scope of Work.

Neither party shall 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 under 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.

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.

27.6 City of Santa Cruz Professional Services Agreement for BELTZ WELL 10 AQUIFER STORAGE AND RECOVERY PILOT TEST
AND BELTZ WELL 11 INJECTION PILOT TEST
December 2025 Page 4
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 be 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 of its obligations under this Agreement within a period of 30 calendar days (or such longer period agreed to by the Consultant), from the date of the Consultant’s written termination notice specifying the default in performance.

Consultant must provide a written notice of termination to the City not less than 60 calendar days of the effective termination date.

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

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

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

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

27.7 City of Santa Cruz Professional Services Agreement for BELTZ WELL 10 AQUIFER STORAGE AND RECOVERY PILOT TEST
AND BELTZ WELL 11 INJECTION PILOT TEST
December 2025 Page 5
City’s policies promote a working environment free from abusive conduct, discrimination, harassment, and retaliation; and require equal opportunity in employment for all regardless of race, religious creed (including religious dress and grooming practices), color, national origin (including language use restrictions), ancestry, religion, disability (mental and physical), medical condition, sex, gender (including gender identity and gender expression), physical characteristics, marital status, age, sexual orientation, genetic information (including family health history and genetic test results), organizational affiliation, and military or veteran status, or any other consideration made unlawful by local, State or Federal law. City requires Consultant to comply with all applicable Federal and State and local equal employment opportunity laws and regulations, and Consultant is responsible for ensuring that effective policies and procedures concerning the prevention of abusive conduct, discrimination, harassment, and retaliation exist in Consultant’s business organization. The City’s current Equal Employment Opportunity and Non-Discrimination policies to which this Section applies may be viewed at http://www.codepublishing.com/CA/SantaCruz/?SantaCruz09/SantaCruz0983.html and http://www.cityofsantacruz.com/home/showdocument?id=59192.

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

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

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

SECTION 14: MISCELLANEOUS PROVISIONS

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

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

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

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

27.8 City of Santa Cruz Professional Services Agreement for BELTZ WELL 10 AQUIFER STORAGE AND RECOVERY PILOT TEST
AND BELTZ WELL 11 INJECTION PILOT TEST
December 2025 Page 6
In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

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

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

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

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

7. Conflicts of Interest. Consultant agrees to comply with conflict of interest 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, (Gov’t. Code §§1090, 87100), Levine Act (Gov’t. Code §84308), 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,

27.9 City of Santa Cruz Professional Services Agreement for BELTZ WELL 10 AQUIFER STORAGE AND RECOVERY PILOT TEST
AND BELTZ WELL 11 INJECTION PILOT TEST
December 2025 Page 7
as applicable. Notwithstanding any other provision of this Agreement to the contrary, Consultant shall retain the rights in any pre-existing standard drawing details, designs, specifications, databases, computer software, proprietary information, documents, templates, and any other property owned by Consultant on the date of this Agreement or developed outside of this Agreement.

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

27.10 City of Santa Cruz Professional Services Agreement for BELTZ WELL 10 AQUIFER STORAGE AND RECOVERY PILOT TEST
AND BELTZ WELL 11 INJECTION PILOT TEST
December 2025 Page 8
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 connection with, the unauthorized use, access, and/or disclosure of City Data and/or Confidential Information by Consultant and/or its agents, employees or subcontractors, excepting only loss, injury or damage caused by the sole negligence or willful misconduct of the City. This provision shall survive the termination or expiration of this Agreement.

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

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

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

27.11 City of Santa Cruz Professional Services Agreement for BELTZ WELL 10 AQUIFER STORAGE AND RECOVERY PILOT TEST
AND BELTZ WELL 11 INJECTION PILOT TEST
December 2025 Page 9

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 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

27.12 City of Santa Cruz Professional Services Agreement for BELTZ WELL 10 AQUIFER STORAGE AND RECOVERY PILOT TEST
AND BELTZ WELL 11 INJECTION PILOT TEST
December 2025 Page 10
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.

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.

27.13 City of Santa Cruz Professional Services Agreement for BELTZ WELL 10 AQUIFER STORAGE AND RECOVERY PILOT TEST
AND BELTZ WELL 11 INJECTION PILOT TEST
December 2025 Page 11

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.

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

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

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

To CITY:

Water Department
Heidi Luckenbach, P.E., Water Director
212 Locust Street, Suite A
Santa Cruz, CA 95060
[email protected]/ (831) 420-5200
To CONSULTANT:

Pueblo Water Resources
Robert C. Marks, P.G., C.Hg. Principal Hydrologist
4478 Market Street, Suite 705
Ventura, CA 93003
[email protected]/ (805) 644-0470
The Parties must provide notice of any changes to the above information in writing at least ten (10) business days before the change is effective.

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

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

29. 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 E 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]

27.14 City of Santa Cruz Professional Services Agreement for BELTZ WELL 10 AQUIFER STORAGE AND RECOVERY PILOT TEST
AND BELTZ WELL 11 INJECTION PILOT TEST
December 2025 Page 12

1. Signature Requirements for Business Entity:
a. Corporation – 2 officer signatures required (one from each group, unless person signing holds officer positions in both Group 1 and 2):

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

By: _____________________________ Date: __________________ Office of the City Attorney

CITY OF SANTA CRUZ
By: ______________________________ Date: _________________ Matt Huffaker
City Manager
CONSULTANT: PUEBLO WATER RESOURCES, INC.

By: _____________________________ Date: __________________ Printed: ___________________________ Title: __________________ By: _____________________________ Date: __________________ Printed: ___________________________ Title: __________________

WATER DEPARTMENT
By: _____________________________ Date: __________________ Heidi Luckenbach, P.E.

Water Director
Technical Review By:

By: _____________________________ Date: __________________ Isidro Rivera, P.E., Deputy Water Director/ Engineering Manager

27.15 City of Santa Cruz Professional Services Agreement for BELTZ WELL 10 AQUIFER STORAGE AND RECOVERY PILOT TEST
AND BELTZ WELL 11 INJECTION PILOT TEST
December 2025 Page 13
EXHIBIT A: SCOPE OF WORK AND WORK SCHEDULE

27.16 PUEBLO WATER RESOURCES, INC
4478 Market Street, Suite 705 • Ventura, CA 93003 • 805.644.0470 November 17, 2025
Project No. 24-0064
City of Santa Cruz Water Department
212 Locust St., Suite C
Santa Cruz, California 95060
Attention: Ms. Leah Van Der Maaten, P.E., Associate Professional Engineer Subject: Proposal for Hydrogeologic Services; Beltz 10 ASR and Beltz 11 Injection Pilot Test Project
Dear Leah:

In accordance with your request, Pueblo Water Resources, Inc. (PWR) is pleased to submit this proposal for hydrogeologic services to implement an Aquifer Storage and Recovery (ASR) and injection pilot test project for the Santa Cruz Water Department’s (SCWD’s) Beltz 10 and 11 wells, which are co-located on the same site. The subject ASR pilot test program at Beltz 10 represents further advancement of the SCWD’s technical feasibility investigation of ASR in the Santa Cruz Mid-County Groundwater Basin (MGB) following the successful implementation of similar programs at the Beltz 12, 8 and 9 wells in 2019, 2020/2021, and 2023/2024, respectively.

The injection pilot test program at Beltz 11 is intended to investigate the potential for injection at this well to raise water levels at the coast to mitigate the potential for seawater intrusion in the MGB. Presented in this proposal is a detailed scope of work, estimated costs, and a schedule to implement the project.

BACKGROUND
The SCWD is investigating ASR as part of its water-supply augmentation strategy. ASR is a method of “banking” water in an aquifer during times when excess surface water is available (typically wet periods), and subsequent recovery of the water from the aquifer when needed (typically dry periods). ASR utilizes dual-purpose injection/recovery wells for the injection of water into aquifer storage and the subsequent recovery of the stored water by pumping. In order to feasibly implement ASR, the following five basic project components are required:

1. A supply of excess surface water for injection;

2. A system for the diversion, treatment and conveyance of water between the source and groundwater storage basin;

3. A suitable groundwater basin with available storage space;

4. ASR wells to inject and recover the stored water, and;

5. A system for the treatment and conveyance of recovered water from the ASR wells into the distribution system.

Exhibit A

27.17 Santa Cruz Water Department
Beltz 10 ASR and Beltz 11 Injection Pilot Test Proposal November 17, 2025 (24-0064)
24-0064_SC_ASR_beltz_10_11_pilot_test_pro_final_2025-11-17.docx - 2 -
As applied to Santa Cruz, ASR would involve the diversion of “excess” winter and spring flows from North Coast sources and the San Lorenzo River (SLR), treated to potable standards at the Graham Hill Water Treatment Plant (GHWTP), then conveyed through the existing (and/or improved) water distribution system(s) to ASR wells located in the MGB. In this context, “excess” flows are those flows that exceed SCWD demands and in-stream flow requirements and are within water rights.

As a consultant to the Water Supply Advisory Committee (WSAC) Technical Team, PWR performed an initial reconnaissance-level study (Recon-Study) of the feasibility, potential yields, and costs of ASR for the SCWD. The Recon-Study findings indicated that ASR appeared to be technically feasible with no obvious fatal flaws. Based on these findings, an implementation strategy for ASR was developed through the WSAC that consisted of three basic phases:
• Phase 1 – Technical Feasibility Analyses: Performance of detailed technical feasibility investigations that were beyond the scope of the Recon-Study, including the use of groundwater modeling, completion of site-specific injection capacity and geochemical interaction analyses, and development of a pilot ASR testing program. • Phase 2 – ASR Pilot Testing: Performance of a pilot ASR testing program and assessment of probable ASR system performance, cost and schedule to complete build-out of the ASR system.
• Phase 3 – Project Implementation: Development of full-scale ASR project basis-ofdesign, construction of ASR system facilities (perhaps incrementally), establishment of ASR project operational parameters, and long-term operation of project to achieve target storage volumes.

The Phase 1 Technical Feasibility Investigation has been completed and based on the favorable results of the investigation, the SCWD decided to advance the ASR investigation to Phase 2 ASR pilot testing, which has been successfully performed at three existing Beltz wells:
• Beltz 12 in 2019
• Beltz 8 in 2020/2021
• Beltz 9 in 2023/2024
The overall objective of the Phase 2 pilot testing was to field-verify the findings developed from Phase 1 and empirically determine site-specific hydrogeologic and water-quality factors that will allow a technical and economic viability assessment of ASR technology for the SCWD. Based on the favorable results of the Phase 2 ASR pilot testing performed at the three existing Beltz wells listed above, the SCWD is currently implementing Phase 3 permanent ASR facilities at both the Beltz 12 and 8 wells and is in the planning stages of implementing Phase 3 at the Beltz 9 well.

The subject Beltz 10 well, therefore, represents the fourth existing Beltz well to be ASR pilot tested by the SCWD and potentially converted into a permanent ASR well.

27.18 Santa Cruz Water Department
Beltz 10 ASR and Beltz 11 Injection Pilot Test Proposal November 17, 2025 (24-0064)
24-0064_SC_ASR_beltz_10_11_pilot_test_pro_final_2025-11-17.docx - 3 -
The Beltz 10 and 11 wells are co-located at the same site in the MGB and are screened in the A/AA and Tu aquifer units of the Purisima aquifer system, respectively. PWR recently performed analysis of the various operational and hydrogeologic constraints affecting the potential injection and recovery pumping capacities of both Beltz 10 and 11. The analysis incorporated assumptions regarding the anticipated effectiveness of chemical and mechanical rehabilitation of the wells on its injection and pumping performance. The Beltz 10 well was recently successfully rehabilitated and the results were consistent with the ASR capacity analysis assumptions; therefore, based on the results of the ASR capacity analysis and the successful rehabilitation of Beltz 10, it is our understanding that the SCWD desires to proceed with implementing an ASR pilot test project at Beltz 10 at this time.

The primary purpose of the subject injection pilot testing at Beltz 11 is to investigate the feasibility of utilizing Beltz 11 as an injection well to raise aquifer water levels in the Tu Unit at the coastline to mitigate the potential for seawater intrusion into the MGB, thereby allowing the SCWD to meet anticipated Groundwater Sustainability Plan (GSP) Minimum Threshold water levels at the SP-5 monitoring well and potentially allowing for more flexibility in the pumping operations of Beltz 12 (which is also screened in the Tu Unit). It is noted that the Beltz 11 well has not been rehabilitated to improve performance and it is our understanding that the SCWD does not desire to do so as part of this project. Not rehabilitating Beltz 11 prior to injection testing will limit the injection capacity during the test program and the associated aquifer water-level response at SP5 that can be empirically demonstrated; however, the data generated can nevertheless be analyzed to estimate the aquifer response to injection should the SCWD decide to rehabilitate Beltz 11 in the future.

PURPOSE AND SCOPE
The primary purpose of the Beltz 10 ASR pilot test program is to field-test the potential application of ASR in the A/AA Units of the Purisima Aquifer system at the site, whereas the primary purpose of the injection pilot testing at Beltz 11 is to investigate the feasibility of utilizing Beltz 11 as an injection-only well to raise aquifer water levels in the Tu Unit at the coastline. While injection testing at Beltz 11 will occur on a parallel track with ASR testing at Beltz 101 , the two test
program structures will differ somewhat, given the different end-purposes envisioned for each well. The data generated will be used to assess both the economic and logistical viability of ASR at Beltz 10 and injection at Beltz 11 and will provide the basis for the design, environmental planning, and permitting for long-term full-scale project operations at the site. If successful, the data gathered may be used to complete CEQA documentation and Regional Water Quality 1 It is noted that implementing both pilot test programs on a parallel track will result in some cost savings to the SCWD compared to implementing them separately, primarily in mobilization costs for both the contractor and PWR.

27.19 Santa Cruz Water Department
Beltz 10 ASR and Beltz 11 Injection Pilot Test Proposal November 17, 2025 (24-0064)
24-0064_SC_ASR_beltz_10_11_pilot_test_pro_final_2025-11-17.docx - 4 -
Control Board (RWQCB) permitting for a permanent ASR and/or injection project and provide design basis information for a permanent dual-purpose ASR/injection facility at the site.

Primary issues to be investigated in the Beltz 10 ASR pilot test include the following:
• Determination of well efficiency and specific capacity and injectivity • Evaluation of injection well plugging rates (both active and residual) • Determination of optimal rates, frequency, and duration of backflushing to maintain injection capacity
• Determination of long-term sustainable injection rates • Monitoring of local aquifer response to injection and extraction • Monitoring of ion exchange and redox reactions
• Evaluation of water-quality changes during aquifer storage and recovery pumping (e.g., arsenic mobilization)
• Monitoring Disinfection Byproducts (DBPs) Trihalomethanes (THM) and Haloacetic Acid (HAA) ingrowth and degradation during aquifer storage • Monitoring of recovery efficiencies
Primary issues to be investigated in the Beltz 11 injection pilot test include the following:
• Monitoring of coastal aquifer response (SP-5 and SC-13) to injection • Evaluation of potential for problematic water-quality changes in the target aquifer as a result of injection (e.g., arsenic mobilization)
• Determination of well efficiency and specific capacity and injectivity • Evaluation of injection well plugging rates (both active and residual) • Determination of optimal rates, frequency, and duration of backflushing to maintain injection capacity
• Determination of long-term sustainable injection rates Implementation of the Beltz 10 and 11 pilot test program consists of the following main sequential tasks:

1. Development of an ASR and injection pilot test Work Plan

2. Project permitting assistance

3. Development of plans, specifications and bidding assistance for a well contractor to prepare the wells and site facilities for testing

4. Field oversight and management of well and site facilities preparation

27.20 Santa Cruz Water Department
Beltz 10 ASR and Beltz 11 Injection Pilot Test Proposal November 17, 2025 (24-0064)
24-0064_SC_ASR_beltz_10_11_pilot_test_pro_final_2025-11-17.docx - 5 -

5. Implementation of the ASR and injection testing programs

6. Data collection, analysis and reporting

7. Project management and meetings
A detailed scope of work to perform the above tasks is presented below.

Task 1. ASR and Injection Pilot Test Work Plan
PWR will develop a Work Plan for an ASR pilot test at Beltz 10 and an injection pilot test at Beltz 11. The Work Plan will include identification of temporary facility improvements needed for testing (e.g., preparation of wells for injection, piping/valving modifications and installation, test pumps, etc.,) and ASR and injection pilot testing programs designed to demonstrate ASR and injection well operational viability and parameters. The overall purpose of this task is to develop the information required to prepare plans, specifications and bid documents for implementing the ASR and injection pilot testing program at the site. The Work Plan will include the following minimum components:
• Evaluation of the existing Beltz 7 monitoring well and the potential need for new monitoring well(s) drilling and installation
• Evaluation of the type of well rehabilitation/cleaning needed to prepare the well(s) for testing

1. Identification of temporary modifications to well downhole equipment and pump/motor/discharge heads

2. Identification of temporary above-ground facility improvements

3. Development of ASR and injection pilot test program
• Development of Sampling and Analysis Plan

4. Development of detailed project implementation schedule Task 2. RWQCB Permitting Assistance
The State Water Resources Control Board (SWRCB) has adopted general waste discharge requirements for ASR projects that inject drinking water into groundwater (Order No. 2012-0010-DWQ or General ASR Order). The General ASR Order provides a statewide regulatory framework for authorizing both pilot testing and permanent projects that utilize wells to inject drinking water into groundwater aquifers. Oversight of these regulations is done through the Regional Water Quality Control Boards (RWQCBs) and obtaining coverage under the General ASR Order requires the preparation and submission of a Notice of Intent (NOI) application package to the local RWQCB (in this case, the Central Coast RWQCB).

27.21 Santa Cruz Water Department
Beltz 10 ASR and Beltz 11 Injection Pilot Test Proposal November 17, 2025 (24-0064)
24-0064_SC_ASR_beltz_10_11_pilot_test_pro_final_2025-11-17.docx - 6 -
Based on the information developed in the Task 1 pilot test Work Plan for Beltz 10 and 11, a Technical Report for the pilot tests will be prepared by PWR in accordance with the application requirements of the General ASR Order and will include the following minimum components:
• Project location map
• Identification and description of target aquifers
• Pilot testing schedule
• Delineation of the Areas of Hydrologic Influence
• Identification of all land uses within the delineated Areas of Hydrologic Influence • Identification of known areas of contamination within the Areas of Hydrologic Influence
• Identification of project-specific Constituents of Concern (COCs) • CEQA compliance documentation (Categorical Exemption assumed) • Groundwater Degradation Assessment
PWR will issue a draft copy of the completed Technical Report for SCWD review and comment. PWR will incorporate SCWD comments and prepare the final Technical Report for inclusion in the NOI application package. It is assumed that SCWD staff will prepare the complete NOI application package in accordance with the requirements of the General ASR Order and submit it to the RWQCB.

Task 3. Plans, Specifications and Bidding Assistance for Well and Site Facilities Preparation
The Beltz 10 and 11 wells and the site facilities will need some preparatory work performed in order to implement a successful ASR and injection pilot test program, including the following key activities:
• Installation of an on-site monitoring well (if needed as to be determined in Task 1) that is screened in the same sections of the A/AA Unit as Beltz 10 (a monitoring well in the Tu Unit is not planned as part of this project); • Downhole preparation of the Beltz 10 and 11 wells for injection testing, and; • Installation of various temporary site improvements at the Beltz 10/11 facility.

PWR will develop plans and technical specifications, which will include identification of materials and methods to be utilized, logistical constraints, and schedule considerations. The technical specifications are intended to provide adequate detail for bidding by competent, licensed (C-57 / C-61) well contractors. The specifications will include the following minimum items:

27.22 Santa Cruz Water Department
Beltz 10 ASR and Beltz 11 Injection Pilot Test Proposal November 17, 2025 (24-0064)
24-0064_SC_ASR_beltz_10_11_pilot_test_pro_final_2025-11-17.docx - 7 -
• Minimum Contractor Qualifications
• Contractor Equipment Requirements
• Traffic Control Requirements
• Materials Requirements
• Monitoring Well Drilling Procedures
• ASR/Injection Well Downhole Cleaning Procedures
• Temporary Test Pump or Replacement of Permanent Pump and Downhole Appurtenances Specifications
• Temporary Injection Piping Specifications
• NPDES Discharge Requirements and Limitations
• Site Cleanup and Restoration
PWR will issue a draft copy of the technical specifications for SCWD review and comment.

PWR will incorporate SCWD comments and provide the final technical specifications. It is assumed that SCWD will incorporate PWR’s technical specifications with its contract "boiler plate", including general conditions and special insurance requirements, into the final contract package. It is also assumed that the SCWD will duplicate and distribute the bid packages and serve as the primary contact for response to questions from bidders.

PWR will be available to assist SCWD throughout the bidding process. This will include responding to questions Contractors may have during the preparation of bids, preparing and distributing requisite addenda, and communicating to potential bidders other pertinent information. PWR will also assist the SCWD in evaluating the received bids for conformance and responsiveness with the requirements set forth in the bid documents and will provide recommendations for bid award.

Task 4. Field Oversight of Contractor Activities
This task will involve the coordination and field oversight of the selected contractor during monitoring well drilling, well and site preparation activities. Prior to contractor mobilization, PWR will coordinate a pre-construction meeting to introduce involved parties, establish chain-ofcommand and communications protocols, review the key work elements and safety procedures, and develop a schedule of the work to be performed. During project execution, PWR will coordinate weekly “tailgate” meetings with the contractor and provide email summaries of key items discussed to SCWD staff.

During the field operations, PWR will oversee and document contractor activities to ensure adherence to the project specifications, including NPDES monitoring for any discharges to surface water. PWR will provide the SCWD with routine daily email field summaries of work performed,

27.23 Santa Cruz Water Department
Beltz 10 ASR and Beltz 11 Injection Pilot Test Proposal November 17, 2025 (24-0064)
24-0064_SC_ASR_beltz_10_11_pilot_test_pro_final_2025-11-17.docx - 8 -
significant accomplishments and anticipated work to be performed. PWR will also provide assistance to the SCWD in reviewing contractor submittals and invoices, responding to Requests for Information (RFIs) and processing Change Order requests. Following completion of the contractor’s work, PWR will assist the SCWD in documenting the as-built facilities.

Task 5. Pilot Test Program Implementation
Beltz 10 ASR Pilot Test. This task consists of implementing the ASR pilot test program for Beltz 10. The program planned for Beltz 10 is nearly identical to the programs that were recently implemented at Beltz 12, 8 and 9, modified as needed for the specific site conditions at Beltz 10.

ASR operations generally consist of three steps:

1. Injection of potable-quality drinking water into the aquifer;

2. Storage of the injected/recharged water within the aquifer, and;

3. Recovery of the stored water.

Sequential implementation of these injection-storage-recovery steps constitutes an ASR “cycle”. The structure of the ASR pilot test program includes numerous incremental steps of ASR operations to provide multiple checkpoints in the event that pilot operations deviate significantly from the predicted responses. The test program will involve three repeated ASR cycles of operations and monitoring, each of larger volume and duration than the preceding cycle, so that if adverse conditions are encountered at any point, the program can be adjusted, if needed.

A summary of the planned ASR cycles at Beltz 10 is presented in Table 1 below:

Table 1. Summary of Planned ASR Cycles – Beltz 10
ASR Storage
Cycle Period Rate Radius Period Period Rate Discharge
No. (days) (gpm) (mg) (af) (ft) (days) (days) (gpm) (mg) (af) Location 1 1 175 0.25 0.77 17 2 1 305 0.44 1.35 Storm Drain
2 7 175 1.76 5.4 44 14 7 305 3.07 9.4 Storm Drain
3 30 175 7.6 23.2 91 60 30 305 13.2 40.4 Distribution
Total Active Duration (days): 152
Total Injection Volume (af): 29.4
Total Recovery Volume (af): 51.2
Total Volume Volume
Injection Recovery

27.24 Santa Cruz Water Department
Beltz 10 ASR and Beltz 11 Injection Pilot Test Proposal November 17, 2025 (24-0064)
24-0064_SC_ASR_beltz_10_11_pilot_test_pro_final_2025-11-17.docx - 9 -
As shown, ISR Cycle 1 consists of one day of injection, followed by two days of storage, then one day of recovery. ISR Cycle 2 extends each of these phases, with one week of injection, two weeks of storage and one week of recovery. Recovery flows during ISR Cycles 1 and 2 are planned to be discharged to the storm drain system while collecting a robust set of water-quality data. Assuming no adverse water quality issues are identified in ISR Cycles 1 and 2 (e.g., arsenic mobilization), ISR Cycle 3 would proceed with one month of continuous injection (interrupted only for periodic backflushing to limit well plugging), two months of storage and one month of recovery pumping. Recovery pumping during ISR Cycle 3 would be directed to the distribution system to help meet demands. The primary test objectives for each ISR Cycle at Beltz 10 are summarized below:

ISR Cycle 1
• Establish short-term injection hydraulics
• Monitor short-term ion exchange reactions
• Evaluate water chemistry changes during storage and recovery (e.g., arsenic mobilization)
ISR Cycle 2
• Measure well plugging rates (active and residual)
• Evaluate backflushing efficacy
• Monitor longer-term ion exchange reactions
• Monitor redox reactions
• Evaluate water chemistry changes during storage and recovery (e.g., arsenic mobilization
• Monitor recovery efficiency (the percentage of recharged water that is recovered during each cycle)
• Monitor DBPs during recovery
ISR Cycle 3
• Evaluate longer-term well performance and plugging rates • Monitor injected water quality stability during storage and recovery (e.g., arsenic mobilization)
• Monitor DBP ingrowth/degradation during storage
• Monitor recovery efficiency (the percentage of recharged water that is recovered during each cycle)

27.25 Santa Cruz Water Department
Beltz 10 ASR and Beltz 11 Injection Pilot Test Proposal November 17, 2025 (24-0064)
24-0064_SC_ASR_beltz_10_11_pilot_test_pro_final_2025-11-17.docx - 10 -
• Monitor DBPs during recovery
The total duration of the ASR pilot test program is anticipated to require approximately 6 months and is tentatively scheduled to begin in November 2026 (refer to the preliminary schedule presented below).

Beltz 11 Injection Pilot Test. This task consists of implementing the injection pilot test program for Beltz 11. As an injection pilot test instead of an ASR pilot test program, the structure of the program will be similar to the ASR pilot test program for Beltz 10 but will differ in important ways. Specifically, while the primary purpose of injection at Beltz 11 is to raise water levels in the Tu Unit at the coast rather than to “bank” water for later recovery during dry periods, the potential impacts to water quality in the Tu Unit from injection of GHWTP product water needs to be investigated; however, the extended storage and recovery periods planned for ASR Cycle 3 at Beltz 10 are not needed for the intended purpose of Beltz 11. Water quality impacts will be assessed by implementing similar short-duration ISR Cycle 1 and 2 tests. Assuming no adverse effects are observed during Cycles 1 and 2, the remainder of the program will consist of longduration continuous injection (interrupted only for periodic backflushing) for a long as excess surface supplies are available without subsequent recovery in order to more fully observe the effects of injection at the coast (i.e., at SP-5).

A summary of the planned injection testing program at Beltz 11 is presented in Table 2 below:

Table 2. Summary of Planned Injection Testing – Beltz 11 ISR Storage
Cycle Period Rate Radius Period Period Rate Discharge
No. (days) (gpm) (mg) (af) (ft) (days) (days) (gpm) (mg) (af) Location 1 1 55 0.08 0.24 15 2 1 85 0.12 0.38 Storm Drain
2 7 55 0.55 1.7 40 14 7 85 0.86 2.6 Storm Drain
3 120 55 9.5 29.2 82
Total Active Duration (days): 152
Total Injection Volume (af): 31.1
Total Recovery Volume (af): 3.0
Injection Recovery
Total Volume Volume
Not Applicable
As shown, for Beltz 11, ISR Cycles 1 and 2 would have the same structure as for Beltz 10 and with similar objectives (primarily to investigate the potential for adverse water-quality interactions). Again, assuming the results of ISR Cycles 1 and 2 are favorable, the remainder of the program would consist of longer-term continuous injection (interrupted only for periodic backflushing) for up to 6 months, depending on the availability of excess surface water for injection, with no recovery of the injected water (i.e., the injected water would remain in aquifer

27.26 Santa Cruz Water Department
Beltz 10 ASR and Beltz 11 Injection Pilot Test Proposal November 17, 2025 (24-0064)
24-0064_SC_ASR_beltz_10_11_pilot_test_pro_final_2025-11-17.docx - 11 -
storage to bolster coastal water levels in the Tu Unit). The primary test objectives for each phase of testing at Beltz 11 are summarized below:

ISR Cycle 1
• Establish short-term injection hydraulics
• Monitor short-term ion exchange reactions
• Evaluate water chemistry changes during storage and recovery (e.g., arsenic mobilization)
ISR Cycle 2
• Measure well plugging rates (active and residual)
• Evaluate backflushing efficacy
• Monitor longer-term ion exchange reactions
• Monitor redox reactions
• Evaluate water chemistry changes during storage and recovery (e.g., arsenic mobilization
• Monitor DBPs during storage recovery
Long-Term Continuous Injection Test
• Monitor water-level response at coastal monitoring wells (SP-5 and SC-13) to longterm continuous injection (interrupted only for backflushing) • Evaluate longer-term well performance and plugging rates • Measure well plugging rates (active and residual)
• Evaluate backflushing efficacy
As for Beltz 10 ASR, the total duration of the Beltz 11 injection pilot test program is anticipated to require approximately 6 months and is tentatively scheduled to begin in November 2026 (refer to the preliminary schedule presented below).

During the Beltz 10 ASR and Beltz 11 injection pilot test program, a variety of water-level and water-quality data will be collected by PWR, which will be described in detail in the Task 1 Work Plan. Water levels in the aquifer system will be monitored during all phases at the Beltz 10 and 11 wells as well as several existing, proximate monitoring wells. In addition, periodic samples of the injected, stored, and recovered waters will be collected from the Beltz 10 and 11 pilot test wells and the to-be-constructed Beltz 10 on-site monitoring well and analyzed for a variety of water-quality constituents in accordance with the Sampling and Analysis Plan (SAP) that will be developed for the Work Plan. PWR will collect all water-quality samples and deliver them to

27.27 Santa Cruz Water Department
Beltz 10 ASR and Beltz 11 Injection Pilot Test Proposal November 17, 2025 (24-0064)
24-0064_SC_ASR_beltz_10_11_pilot_test_pro_final_2025-11-17.docx - 12 -
FedEx for shipping to an outside laboratory (consistent with past practice, it is assumed that SCWD will contract directly with the outside laboratory and arrange for sample cooler kits to be provided to PWR). In addition, PWR will perform NPDES monitoring utilizing SCWD-provided discharge forms for any discharges to surface water during the ASR pilot test program.

During the Beltz 10 ASR Cycle 3 recovery period, PWR will perform an assessment of whether any residual plugging of either Beltz 10 or 11 occurred over the course of injection testing.

If either or both wells did experience any residual plugging, following termination of the Beltz 10 recovery and Beltz 11 continuous injection periods, PWR will perform a common well development technique known as “pumping and surging” at either or both wells in an effort to mitigate residual plugging, where the well pump is started and stopped several times and then pumped at a constant rate until the water is clear. The intent is to agitate the gravel pack and near-bore aquifer matrices, remove the finer fraction that is causing plugging, and then rearrange the remaining matrix particles. The procedure is then repeated several times until no further fine materials (as measured by turbidity and/or sand content in the produced water) are produced by the well. For budgetary purposes, it is assumed that this work will require 2 to 3 days on site.

Task 6. Data Analysis and Reporting
The reporting task will consist of producing three types of reports; a draft Summary of Operations Report (SOR), General ASR Order quarterly and annual compliance reports for submittal to the RWQCB, and a final SOR. Detailed descriptions of each of these reports are presented below:

Task 6.1. Draft Summary of Operations Report. Upon completion of the ASR and injection pilot test program, a draft Summary of Operations Report (SOR) documenting the well and temporary site improvements, project procedures, testing results and data analyses will be prepared. Documentation of the monitoring well drilling, as-built completion and development will be presented as an appendix in the SOR for future reference by the SCWD. Specific ASR well and aquifer hydraulic data analysis and issues addressed in the report will include the following:
• Estimates of aquifer parameters of transmissivity, hydraulic conductivity, and storage coefficients
• Well specific capacity/injectivity ratios
• Well plugging rates (observed and normalized)
• Well backflushing efficiency and criteria
• Well interference effects on other Beltz wells
• Long-term sustainable injection and extraction/recovery rates • Recovery efficiencies

27.28 Santa Cruz Water Department
Beltz 10 ASR and Beltz 11 Injection Pilot Test Proposal November 17, 2025 (24-0064)
24-0064_SC_ASR_beltz_10_11_pilot_test_pro_final_2025-11-17.docx - 13 -
• Local aquifer water-level response to injection and extraction at Beltz 10 and injection at Beltz 11
PWR will also analyze water-quality data from the ASR and injection pilot testing program.

This will include evaluating water-quality changes during each ISR cycle, with particular emphasis on arsenic mobilization and Disinfection Byproducts (DBPs) ingrowth and degradation during aquifer storage and recovery, as well as iron and manganese concentrations during recovery pumping.

The report will also provide specific recommendations for continued ASR and injection operations of the wells and additional tests and procedures that may be needed to further assess issues of long-term water-quality interactions, well plugging and biofouling mechanisms, and injectate recovery.

Task 6.2 - Final Summary of Operations Report. After the SCWD has reviewed the draft SOR and provides comments, PWR will prepare the final report. PWR will also transmit to SCWD all digital files of collected water-level data, water-quality data and project photographs.

Task 6.3 – ASR General ASR Permit Compliance Reporting. This task includes the preparation of the RWQCB Monitoring and Reporting Program (MRP) quarterly and annual reports required by the General ASR Permit. PWR will compile all field water-level and waterquality data, laboratory analytical reports, and flow information required by the MRP, and will prepare brief transmittal letter-reports for submittal to the RWQCB by SCWD staff.

Task 7. Project Management, Meetings
This task consists of overall project management, budget and schedule tracking, invoicing, and attendance at various project-related meetings. The overall purpose is to ensure effective management of project implementation, schedule and budget. This will also include the coordination and attendance at various meetings over the course of the project to communicate progress and findings to the SCWD and other interested parties. For budgetary purposes, the following formal meetings are assumed:
• Pre-Bid Meeting
• Pre-Construction Meeting
• Project Kick-Off
• Weekly or Biweekly Coordination and Test Results Discussions with Staff • Draft Report Review
Each meeting will be attended by one to two PWR Principal Hydrogeologists, depending on the meeting agenda.

27.29 Santa Cruz Water Department
Beltz 10 ASR and Beltz 11 Injection Pilot Test Proposal November 17, 2025 (24-0064)
24-0064_SC_ASR_beltz_10_11_pilot_test_pro_final_2025-11-17.docx - 14 -
Services Not Included
Services which are (or may be) necessary for the completion of this project, which are not included in our proposal include the following:
• Distribution system hydraulic modeling (if needed, assumed provided by others); • CEQA compliance documents (assumed provided by SCWD); • RWQCB NOI package compilation, submittal and associated fee (assumed provided by SCWD);
• Water-level transducers/data loggers for offsite project monitoring wells (assumed data collected by existing data loggers will be provided to PWR by SCWD); • Monitoring well sampling pump (assumed provided by SCWD utilizing same pump used for Beltz 9 ASR pilot test);
• Water quality laboratory services (assumed provided by SCWD); • Daily site visits and field data recording during the Beltz 10 ISR Cycle 3 injection and recovery tests and the Beltz 11 continuous injection (assumed provided by SCWD);
• Cost of SCWD staff labor and equipment to operate the facility during Beltz 10 ASR Cycle 3 recovery period;
• Cost of water, electricity, or other utilities, and;
• Any other items not specifically included in PWR’s scope of services.

Estimated Fees and Schedule
It is noted that many of the project tasks are integrated efforts between the two wells (e.g., the Work Plan, permitting assistance, plans/specifications/bidding, reporting), whereas others are clearly separate efforts (e.g., implementation of the pilot test programs at each well). It is our understanding that the SCWD desires to have the costs associated with each well separated out; therefore, for budgetary purposes, the Beltz 10 program is considered to represent the baseline cost with the incremental costs associated with inclusion of Beltz 11 identified.

Based on the scope of services presented herein, we estimate the fees for our services will be $455,910, which will be billed on a time-plus-expenses basis in accordance with our current Fee Schedule (attached). A summary breakdown of costs per task is presented in Table 3 below, and an estimated fee worksheet is also attached detailing the estimated staff-hours and costs per task/work item.

27.30 Santa Cruz Water Department
Beltz 10 ASR and Beltz 11 Injection Pilot Test Proposal November 17, 2025 (24-0064)
24-0064_SC_ASR_beltz_10_11_pilot_test_pro_final_2025-11-17.docx - 15 -
Table 3. Estimated Costs Summary
Beltz 10 Beltz 11
1 - Pilot Test Work Plan $19,510 $9,210
2 - RWQCB Permitting Assistance $9,850 $4,925
3 - Plans, Specs, Bidding $13,260 $6,710
4 - Field Oversight of Contractor Activities $50,250 $43,050 5 - Pilot Test Program Implementation $133,020 $72,450
6 - Data Analysis and Reporting $38,290 $19,135
7 - Project Management and Meetings $26,250 $10,000
Subtotals $290,430 $165,480
Total
Task
Estimated Costs
$455,910
As shown, the baseline cost associated with implementing an ASR pilot test program at Beltz 10 is estimated at approximately $290K with the incremental cost associated with including a Beltz 11 injection pilot test program estimated at approximately $165K.

In developing our estimate of staff hours for the monitoring well drilling and site preparation phase of the project (Task 4), we have assumed that the work will be performed on a 12-hour per day / 5-day per week schedule, and that observation will be provided on a variable basis, with particular focus on the critical stages of drilling and construction. It is noted that the level of effort associated with well construction supervision can be difficult to estimate, as the time involved is often a function of Contractor competence and diligence, factors over which we have limited control under low-bid procurement procedures. Presented in Tables 4 and 5 below is a summary of our assumptions for estimating our costs associated with construction and inspection for Beltz 10 and 11, respectively, based on our experience with similar previous projects:

27.31 Santa Cruz Water Department
Beltz 10 ASR and Beltz 11 Injection Pilot Test Proposal November 17, 2025 (24-0064)
24-0064_SC_ASR_beltz_10_11_pilot_test_pro_final_2025-11-17.docx - 16 -
Table 4. Estimated Staff-hours During Construction Summary – Beltz 10 Task No. Task Description
Estimated
Duration
(days)
Required
Staffing
Coverage (%)
Estimated
Hours
MW Drilling
1 Mobilization 2 25% 6
2 Conductor Installation 2 75% 18
3 Drilling 2 50% 12
4 Geophysical Logging 0.5 100% 6
5 Well Construction 2 100% 24
6 Well Development 2 50% 12
7 Well Enclosure 1 25% 3
0 1 Remove Existing Pump 1 50% 6
2 Pre-Rehab Video Survey 0.5 100% 6
3 Nylon Brushing 1 75% 9
4 Set Up Temp. Tanks, Piping, etc. 2 25% 6
5 Dual-Swab Airlifting 2 75% 18
6 Open-Ended Airlifting 0.5 100% 6
7 Post-Rehab Video Survey 0.5 100% 6
1 Install Test Pump & Injection Tubes 1 75% 9
2 Disinfection 1 50% 6
3 Chlorine Flushing 1 75% 9
4 Set Up Temp. Tanks, Piping, etc. 5 25% 15
5 Remove Temp. Tanks, Piping, etc 2 25% 6
6 Remove Test Pump 1 50% 6
7 Reinstall Existing Pump 1 75% 9
8 Disinfection 1 50% 6
9 Chlorine Flushing 1 50% 6
Totals 33 210
Downhole Well Cleaning/Preparation for Injection
Temporary ASR Testing Setup

27.32 Santa Cruz Water Department
Beltz 10 ASR and Beltz 11 Injection Pilot Test Proposal November 17, 2025 (24-0064)
24-0064_SC_ASR_beltz_10_11_pilot_test_pro_final_2025-11-17.docx - 17 -
Table 5. Estimated Staff-hours During Construction Summary – Beltz 11 Task No. Task Description
Estimated
Duration
(days)
Required
Staffing
Coverage (%)
Estimated
Hours
1 Remove Existing Pump 1 50% 6
2 Pre-Rehab Video Survey 0.5 100% 6
3 Nylon Brushing 2 75% 18
4 Set Up Temp. Tanks, Piping, etc. 2 25% 6
5 Dual-Swab Airlifting 3 75% 27
6 Open-Ended Airlifting 2 100% 24
7 Post-Rehab Video Survey 0.5 100% 6
1 Install Test Pump & Injection Tubes 2 75% 18
2 Disinfection 1 50% 6
3 Chlorine Flushing 1 75% 9
4 Set Up Temp. Tanks, Piping, etc. 5 25% 15
5 Remove Temp. Tanks, Piping, etc 2 25% 6
6 Remove Test Pump 2 50% 12
7 Reinstall Existing Pump 1 75% 9
8 Disinfection 1 50% 6
9 Chlorine Flushing 1 50% 6
Totals 27 180
Downhole Well Cleaning/Preparation for Injection
Temporary ASR Testing Setup
We understand that in order to authorize this work, your City Council must first approve a formal contract. Based on our current workload, we believe that we can commence work within two weeks of your authorization and an estimated project schedule is presented in Table 6 below:

Table 6. Estimated Project Schedule
Duration
Task / Activity Time Period (months)
Work Plan Jan - Feb 2026 2
RWQCB NOI Technical Report Mar - Apr 2026 2
Technical Plans and Specifications May - Jun 2026 2
Bidding and Contracting Jul - Sep 2026 3
Monitoring Well Drilling Oct 2026 1
Well Preparation for Injection Nov - Dec 2026 2
Site Preparation Jan 2027 1
Pilot Test Implementation Feb - Jul 2027 6
Data Analysis and Reporting Aug - Oct 2027 3
Total: 21

27.33 Santa Cruz Water Department
Beltz 10 ASR and Beltz 11 Injection Pilot Test Proposal November 17, 2025 (24-0064)
24-0064_SC_ASR_beltz_10_11_pilot_test_pro_final_2025-11-17.docx - 18 -
As shown, the project is planned to start in January 2026 with the preparation of the pilot test Work Plan and the field activities portion of the program is planned for an approximate 10- month duration (with both Beltz 10 and 11 occurring on parallel tracks) during the period February through July 2027, with an estimated total project duration of approximately 21 months.

We appreciate the opportunity to provide continued assistance to the City on this important community water-supply project. If you require additional information regarding this or other matters, please contact us.

Sincerely,
PUEBLO WATER RESOURCES, INC.

Robert C. Marks, P.G., C.Hg.

Principal Hydrogeologist
RCM
Attachments: Cost Estimation Spreadsheet
2025 Fee Schedule

27.34 Beltz 10 ASR and Beltz 11 Injection Pilot Test Project PWR Project No.: 24-0064

ESTIMATED FEE DETAIL
Principal
Prof. Senior Prof. Drafting WP
Hourly Fee $250 $235 $160 $140
Task Task Description
1 Pilot Test Work Plan
Beltz 10 ASR 75 3 2 80 $19,510
Beltz 11 Injection 35 2 1 38 $9,210
2 RWQCB Permitting Assistance
Beltz 10 ASR 30 10 40 $9,850
Beltz 11 Injection 15 5 20 $4,925
3 Plans, Specs and Bidding Assistance
Beltz 10 ASR 50 3 2 55 $13,260
Beltz 11 Injection 25 2 1 28 $6,710
4 Field Oversight of Contractor Activities
Beltz 10 ASR 60 150 270 $50,250
Beltz 11 Injection 50 130 230 $43,050
5 Pilot Test Program Implementation
Beltz 10 ASR 140 240 380 $91,400
Beltz 11 Injection 100 170 270 $64,950
6 Data Analysis and Reporting
Beltz 10 ASR 100 50 7 3 160 $38,290
Beltz 11 Injection 50 25 3 2 80 $19,135
7 Project Management and Meetings
Beltz 10 ASR 105 105 $26,250
Beltz 11 Injection 40 40 $10,000
875 780 20 11
$218,750 $183,300 $3,200 $1,540
Total Labor Hours
Total Labor Costs
Unit No. of
Units Price Units Fee
Weekly $300 0 $0
Weekly $550 22 $12,100
Weekly $300 0 $0
Weekly $750 2 $1,500
Daily $75 120 $9,000
Daily $75 40 $3,000
Daily $150 90 $13,500
Daily $150 30 $4,500
$43,600
Unit No. of
Units Price Units Fee
Lump Sum $1,200 4 $4,800
$0 0 $0
$0 0 $0
$0 0 $0
$0 0 $0
$4,800
$5,520
$406,790
$43,600
$5,520
$455,910
$0
$455,910
Per Diem (Beltz 10)
Vehicle (Beltz 11)
Vehicle (Beltz 10)
Santa Cruz Water Department
Water-Level Transducer/Datalogger
Total Outside Products and Services w/ Markup (15%)

COST SUMMARY
LABOR
Water-Level Transducer/Datalogger
1796
$406,790

EQUIPMENT AND OTHER DIRECT COSTS
Total Equipment and ODCs

OUTSIDE PRODUCTS AND SERVICES
Subtotal
Per Diem (Beltz 11)
Water-Quality Sampling Pump
Field Water Quality Instruments
Ultrasonic Flowmeter
Outside Products and Services
Subtotal
0 % Contingency

TOTAL ESTIMATED PROJECT COST
Estimated
Task Cost
Hours by
Task
Hours by Labor Category
Costs by Labor Category
Labor
Equipment and Other Direct Costs
24-0064_SC_ASR_beltz_10_11_pilot_test_costs_draft_2025-11-10.xls Exhibit B

27.35 City of Santa Cruz Professional Services Agreement for BELTZ WELL 10 AQUIFER STORAGE AND RECOVERY PILOT TEST
AND BELTZ WELL 11 INJECTION PILOT TEST
December 2025 Page 14
EXHIBIT B: FEE SCHEDULE

27.36 PUEBLO WATER RESOURCES, INC • 4478 Market Street, Suite 705 • Ventura, CA 93003 805.644.0470 • 805.644.0480 FAX
PUEBLO WATER RESOURCES, INC.
2025 FEE SCHEDULE
Professional Services
Principal Professional............................................................................$250/hr Senior Professional...............................................................................$235/hr Project Professional..............................................................................$215/hr Staff Professional ................................................................................$185/hr Technician..........................................................................................$175/hr AutoCad Drafter..................................................................................$160/hr Word Processer ..................................................................................$140/hr Other Direct Charges
Subcontracted Services............................................................... Cost Plus 15% Outside Reproduction.................................................................. Cost Plus 15% Travel Expenses..........................................................................Cost Plus 15% Per Diem*.........................................................................................$150/day Vehicle ..............................................................................................$75/day Equipment Charges
Drilling Fluid Test Kit........................................................ $100/day, $400/week Field Water Quality Meter (Hach DR890) .............................. $75/day, $275/week Orion ORP/pH/Temp Probe.................................................. $75/day, $275/week Water Level Probes (In-Situ Level Troll) ............................... $75/day, $300/week Water Level Probes – Long Term Deployment (> 6 months) ............... $150/month Water Quality Probes (In-Situ Aqua Troll) ........................... $100/day, $325/week Ultrasonic Flowmeter.........................................................$200/day, $750/week *Regionally and seasonally specific to project.

27.37 City of Santa Cruz Professional Services Agreement for BELTZ WELL 10 AQUIFER STORAGE AND RECOVERY PILOT TEST
AND BELTZ WELL 11 INJECTION PILOT TEST
December 2025 Page 16
EXHIBIT D: INSURANCE REQUIREMENTS
Consultant shall procure and maintain insurance against claims for injuries to persons or damages to property and otherwise which may arise from or in connection with the performance of the work under this Agreement and the results of that work by Consultant, its agents, representatives, employees, or subcontractors.

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

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

Coverage will be at least as broad as:
• COMMERCIAL GENERAL LIABILITY (CGL): $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.

27.38 City of Santa Cruz Professional Services Agreement for BELTZ WELL 10 AQUIFER STORAGE AND RECOVERY PILOT TEST
AND BELTZ WELL 11 INJECTION PILOT TEST
December 2025 Page 17
• WORKERS’ COMPENSATION AS REQUIRED BY THE STATE OF CALIFORNIA, WITH STATUTORY LIMITS, AND EMPLOYER’S LIABILITY INSURANCE: $1,000,000 per accident for bodily injury or disease.

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

C. OTHER INSURANCE PROVISIONS
The insurance policies are to comply with the following provisions:
• ADDITIONAL INSURED STATUS
The City, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of Consultant including materials, parts, or equipment furnished in connection with such work or operations, products and completed operations. General liability coverage will be provided in the form of an endorsement to Consultant’s insurance at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 (if a later edition is used).
• 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. • SELF-INSURED RETENTIONS (SIR)

27.39 City of Santa Cruz Professional Services Agreement for BELTZ WELL 10 AQUIFER STORAGE AND RECOVERY PILOT TEST
AND BELTZ WELL 11 INJECTION PILOT TEST
December 2025 Page 18
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 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.

27.40 City of Santa Cruz Professional Services Agreement for BELTZ WELL 10 AQUIFER STORAGE AND RECOVERY PILOT TEST
AND BELTZ WELL 11 INJECTION PILOT TEST
December 2025 Page 19
EXHIBIT E:

Supplementary Provisions for Water Infrastructure Funding Innovation Act (WIFIA)

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 2 CFR part 180 and part 1532 (per Executive Order 12549, 51 FR 6370, February 21, 1986) or who is prohibited under Section 306 of the Clean Air Act or Section 508 of the Clean Water Act 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. 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

27.41 City of Santa Cruz Professional Services Agreement for BELTZ WELL 10 AQUIFER STORAGE AND RECOVERY PILOT TEST
AND BELTZ WELL 11 INJECTION PILOT TEST
December 2025 Page 20
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 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).

5. Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment (Effective August 13, 2020). The John S. McCain National Defense Authorization Act for Fiscal Year 2019 (P.L. 115- 232), at Section 889, prohibits EPA financial assistance recipients, including WIFIA borrowers, from expending loan funds 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 the Act, “covered telecommunications equipment or services” means:

A. Telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities).

B. 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).

C. Telecommunications or video surveillance services provided by such entities or using such equipment.

D. 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.

E. The Act does not prohibit:

F. Procuring with an entity to provide a service that connects to the facilities of a third-party, such as backhaul, roaming, or interconnection arrangements.

G. Telecommunications equipment that cannot route or redirect user data traffic or permit visibility into any user data or packets that such equipment transmits or otherwise handles.

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. Federal Lobbying Restrictions (31 U.S.C 1352)
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:

27.42 City of Santa Cruz Professional Services Agreement for BELTZ WELL 10 AQUIFER STORAGE AND RECOVERY PILOT TEST
AND BELTZ WELL 11 INJECTION PILOT TEST
December 2025 Page 21

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.

27.43 ANTI-LOBBYING CERTIFICATION
(To be submitted with proposal)
The undersigned certifies, to the best of his or her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, 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 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, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure of Lobbying Activities," in accordance with its instructions.
(3) The undersigned shall require that the language of this certification be included in the award documents of all sub-awards at all tiers (including subcontracts, sub-grants, and contracts under grants, loans, and cooperative agreements) and that all sub- recipients shall certify and disclose accordingly.

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, United States 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 such failure.

Organization: _____________________________________________________________________ Street address: ____________________________________________________________________ City, State, Zip: ___________________________________________________________________ Printed Name of Person Signing for Organization: ________________________________________ Title of Person Signing for Organization: _______________________________________________ Signature of Person Signing for Organization: ___________________________________________

27.44 City Council

AGENDA REPORT
DATE: 11/19/2025
AGENDA OF: 12/09/2025
DEPARTMENT: Planning and Community Development
SUBJECT: 2nd Reading and Final Adoption of Ordinance No. 2025-23 and Ordinance No. 2025-24 Amending the 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) Adopt Ordinance No. 2025-23 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) Adopt Ordinance No. 2025-24 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) Adopt a resolution directing staff to submit Ordinance No. 2025-24 to the California Coastal Commission.

BACKGROUND: Ordinance Nos. 2025-23 and 2025-24 were introduced for publication at the November 18, 2025 Council meeting.

DISCUSSION: Staff is requesting that Council adopt Ordinance Nos. 2025-23 and 2025-24.

Upon adoption of the resolution, staff will submit Ordinance No. 2025-24 to the California Coastal Commission.

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.

28.1 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 DESCRIPTION: None.

ATTACHMENTS:

1. 2025-23 - RELOCATION ASSISTANCE RELATED TO DEMOLITION OF HOUSING (PL).DOCX

2. 2025-24 - LCP IP DEMOLITION OF THREE OR MORE DWELLINGS (PL).DOCX

3. RESOLUTION.DOCX

28.2 ORDINANCE NO. 2025-23

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 CONDITIONS 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

28.3 ORDINANCE NO. 2025-23
2 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:

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.

28.4 ORDINANCE NO. 2025-23
3 (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 short-term 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

28.5 ORDINANCE NO. 2025-23
4 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. (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. Persons residing in homeless shelters, persons encamped on public lands, and persons residing in vehicles are not tenants under this definition.
(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.

28.6 ORDINANCE NO. 2025-23
5 (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 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,

28.7 ORDINANCE NO. 2025-23
6 the provision that provides the greater protections to the tenant(s) shall take precedent.

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 the large rent increase relocation assistance provisions of this chapter.
(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.

28.8 ORDINANCE NO. 2025-23
7 (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, 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 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

28.9 ORDINANCE NO. 2025-23
8 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

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:

28.10 ORDINANCE NO. 2025-23
9 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 moderate-income 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

28.11 ORDINANCE NO. 2025-23
10 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. 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

28.12 ORDINANCE NO. 2025-23
11 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 lowor 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 three- to eight-bedroom unit.

28.13 ORDINANCE NO. 2025-23
12 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.

Section 17. This ordinance shall take effect and be in full force thirty (30) days after final adoption.

28.14 ORDINANCE NO. 2025-23
13 APPROVED FOR PUBLICATION this 18th day of November 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
APPROVED 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. 2025-23 and that
it has been published or posted in
accordance with the Charter of the
City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator

28.15 ORDINANCE NO. 2025-24

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:

28.16 ORDINANCE NO. 2025-24
2 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
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

28.17 ORDINANCE NO. 2025-24
3 Public Hearing Requirement and Decision-Making Body
Which Can Approve an Application
No
Public
Hearing
Public Hearing Permits/Actions4
Action Recommendation Action
Appeal Bodies
(in order)
Slope 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

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,
R-M, or R-H zone districts with
no more than 50 dwelling units

ZA CPC/CC

28.18 ORDINANCE NO. 2025-24
4 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)
and conforming to all standards of
Section 24.12.185.

8. Mixed-use or residential
developments not within the R-L,
R-M, 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,
R-M, or R-H zone districts with
no more than 50 dwelling units
and varying from at least one and
no more than five standards of
Section 24.12.185

ZA CPC/CC

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

28.19 ORDINANCE NO. 2025-24
5 Public Hearing Requirement and Decision-Making Body
Which Can Approve an Application
No
Public
Hearing
Public Hearing Permits/Actions4
Action Recommendation Action
Appeal Bodies
(in order)
Historic Landmark Designation HPC CC
Mobile Homes (Certificate of
Compatibility)

ZA CPC/CC
Mobile Home Park Conversion CPC CC
Outdoor Extension Areas per Section

24.12.192

ZA CPC/CC
Planned Development Permit CPC CC
Project (Major) Modification Hearing by ZA or body
approving application
Appeal to next
highest
body(ies)
Project (Minor) Modification ZA CPC/CC
Relocation of Structures Permit ZA CPC/CC
Revocation Permit Hearing by ZA or body
approving application
Appeal to next
highest
body(ies)
Sign Permit ZA CPC/CC
Special Use Permit CPC CC
Variance ZA CPC/CC
Watercourse Variance CPC CC
Watercourse Development Permit ZA CPC/CC
Zoning Ordinance Text and Map
Amendments:

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

28.20 ORDINANCE NO. 2025-24
6 dwelling unit is not locally appealable. An appeal of such a coastal permit within the appealable area of the Coastal Zone shall be made directly to the California Coastal Commission. In addition to all other applicable LCP requirements, standards for ADUs in the Coastal Zone are specified in Section 24.12.140(2).

2. Such permits shall be issued administratively, without a public hearing, unless a cultural resources evaluation, prepared by a qualified consultant as determined by the zoning administrator, determines that the building or structure is eligible for listing on the city historic building survey.

3. California Coastal Commission in case of CLUP policy, CLIP elements.

4. At a regularly scheduled meeting, a majority of the council may take an action to direct any project or amendment to be called from a lower hearing body prior to a final action or during an appeal period in accordance with Section 24.04.175(2).

5. An appellant must exhaust all local appeals before an appeal can be made to the California Coastal Commission, unless the coastal permit is processed concurrently with other permits pursuant to Section 24.04.150 (for example, a design permit, a use permit, etc.). Because the city charges an appeal fee pursuant to Section

24.04.070 for appeals of coastal permits processed concurrently with other permits, Section 30603(c) of the Coastal Act does not require an appellant to exhaust all local appeals before a project can be appealed to the California Coastal Commission. The city does not charge a fee for local appeals of standalone coastal permits (i.e., where the coastal permit is not accompanied by any other permits).

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.

28.21 ORDINANCE NO. 2025-24
7 PASSED FOR PUBLICATION this 18th day of November 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
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. 2025-24 and that
it has been published or posted in
accordance with the Charter of the
City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator

28.22 RESOLUTION NO. NS-30,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ

AUTHORIZING AND DIRECTING THE CITY MANAGER TO SUBMIT THE PROPOSED AMENDMENTS TO TITLE 24, THE ZONING ORDINANCE OF THE CITY

OF SANTA CRUZ MUNICIPAL CODE, AS LOCAL COASTAL PROGRAM

IMPLEMENTATION PLAN AMENDMENTS TO THE CALIFORNIA COASTAL

COMMISSION FOR FINAL CERTIFICATION
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.

WHEREAS, on November 18, 2025, the City Council held a public hearing at which the proposed amendments to the Municipal Code were introduced for publication; and WHEREAS, on December 9, 2025, the City Council held a public hearing where the proposed amendments to the Municipal Code were approved; and

28.23 WHEREAS, in making their decisions, including this direction, the Council considered the full public record for said items, including but not limited to the staff reports and associated materials in the packet; and
WHEREAS, the City Council now finds:

1. The proposed amendments to Title 24 are in the public interest as they support tenants vulnerable to displacement related to demolition of housing and support alignment with state law requirements for objective review of housing development.

2. The proposed amendments to Title 24 are consistent and compatible with the General Plan and any implementation programs that may be affected.

3. The proposed amendments to Title 24 are intended to be carried out in a manner fully in conformity with the Coastal Act (CA Section 30510).

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz that it hereby directs the City Manager to submit the Local Coastal Program Implementation Plan changes, as shown in in Ordinance 2025-24 that makes modifications to Title 24 of the City of Santa Cruz Municipal Code, to the Coastal Commission for certification.

BE IT FURTHER RESOLVED, that amendments to the Local Coastal Implementation Plan will become effective inside the Coastal Zone upon final certification by the California Coastal Commission.

PASSED AND ADOPTED this 9th day of December, 2025, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

28.24 ORDINANCE NO. 2025-25
AN ORDINANCE OF THE CITY OF SANTA CRUZ TO: (1) AMEND SANTA CRUZ MUNICIPAL CODE CHAPTER 19.05 TO ADOPT AND INCORPORATE BY REFERENCE THE 2025 EDITION OF THE CALIFORNIA FIRE CODE AND MAKE OTHER AMENDMENTS; AND (2) AMEND SANTA CRUZ MUNICIPAL CODE CHAPTER 19.10 WHEREAS, the City of Santa Cruz (“City”) proposes to adopt and incorporate by reference the 2025 edition of the California Fire Code and Fire Code Standards, including annual supplements and State amendments and errata; and
WHEREAS, the City proposes to make certain changes in the requirements of the 2022 California Fire Code, which will make certain parts the City’s Fire Code more restrictive than state law; and
WHEREAS, California Health and Safety Code Section 17958.7 requires the Santa Cruz City Council make express findings that changes or modifications to the requirements contained in the provisions published in the California Building Standards Code and the other regulations adopted pursuant to Section 17922 (including, but not limited to, green building standards) are reasonably necessary because of local climatic, geological, or topographical conditions; and WHEREAS, California Health and Safety Code Section 17958.7 further requires that a copy of the above referenced findings “together with the modification or change expressly marked and identified to which each finding refers, shall be filed with the California Building Standards Commission”; and
WHEREAS, the Santa Cruz City Council finds that the proposed amendments to Santa Cruz Municipal Code (SCMC) section 19.05.190, modifying distance regulations applying to “dead-end” fire apparatus roads from 150 feet to 200 feet, will allow fire access to deeper lots with the same safety and level of service. These edits establish a more restrictive local provision and do not conflict with the California Fire Code; and
WHEREAS, the Santa Cruz City Council finds that all remaining changes shown in the proposed ordinance are necessary for administrative clarification and do not modify the California Fire Code; and
WHEREAS, Santa Cruz City Council hereby approves all of the below-noted additions, amendments and deletions to the following chapters of the 2025 California Fire Code: Chapter 1, 2, 3, and 9. The below-noted modifications have been proposed by the Santa Cruz Fire Department, in consultation with the City Attorney’s Office; and
WHEREAS, Staff is directed to file a copy of the findings included in this Ordinance with the California Building Standards Commission pursuant to California Health and Safety Code Section 17958.7.

29.1 ORDINANCE NO. 2025-25
2 BE IT ORDAINED by the City Council of the City of Santa Cruz as follows:

SECTION 1. Recitals Incorporated. The recitals set forth in the preamble of this Ordinance are hereby incorporated into this Ordinance as if fully set forth herein.

SECTION 2. 2025 Edition of the California Fire Code Adopted. The City of Santa Cruz hereby adopts the 2025 edition of the California Fire Code (including Appendix Chapters B, BB, C, CC, D, O, I and P), as the Fire Code of the City of Santa Cruz. The 2022 edition of the California Fire Code shall no longer be in force and effect.

The City of Santa Cruz also adopts local amendments to 2025 edition of the California Fire Code, as set forth in this Ordinance and the Santa Cruz Municipal Code.

SECTION 3. Amendments to Portions of Santa Cruz Municipal Code Chapter 19.05 A. Santa Cruz Municipal Code Section 19.05.010 is hereby amended to read as follows:
“19.05.010 CALIFORNIA FIRE CODE ADOPTED
An ordinance of the City of Santa Cruz adopting the 2025 edition of the California Fire Code with local amendments, regulating and governing the safeguarding of life and property from fire and explosion hazards arising from the storage, handling and use of hazardous substances, materials and devices, and from conditions hazardous to life or property in the occupancy of buildings and premises in the City of Santa Cruz; providing for the issuance of permits and collection of fees therefor; repealing Ordinance No. 2022-14 (part) 2022 of the City of Santa Cruz and all other ordinances and parts of the ordinances in conflict therewith.

The City Council of the City of Santa Cruz does ordain that a certain document, three (3) copies of which are on file in the office of the Santa Cruz City Clerk of the City of Santa Cruz, being marked and designated as the California Fire Code, 2025 edition including “Appendix Chapters (B, BB, C, CC, D, O, I and P) as published by the International Code Council, be and is hereby adopted as the Fire Code of the City of Santa Cruz, in the State of California regulating and governing the safeguarding of life and property from fire and explosion hazards arising from the storage, handling and use of hazardous substances, materials and devices, and from conditions hazardous to life or property in the occupancy of buildings and premises as herein provided; for the issuance of permits and collection of fees therefor; and each and all of the regulations, provisions, penalties, conditions and terms of said Fire Code on file in the office of the City of Santa Cruz are hereby referred to, adopted, and made a part hereof, as if fully set out in this ordinance, with the additions, insertions, deletions and changes, if any, set forth in this Chapter.” B. Santa Cruz Municipal Code Section 19.05.030 is hereby amended to read as follows:
“19.05.030 Section § 104.1 IS ADDED– GENERAL
Section § 104.1 and 104.2 of Chapter 1 of the Fire Code of the City of Santa Cruz are added to read as follows:

29.2 ORDINANCE NO. 2025-25
3 § 104.1 – General. The fire code official is hereby authorized to enforce the provisions of this code. § 104.2 – Determination of Compliance. The fire code official shall have the authority to determine compliance with this code, to render interpretations of this code and to adopt policies and procedures in order to clarify the applications of its provisions. Such interpretations, policies and procedures:

1. Shall be in compliance with the intent and purpose of this code.

2. Shall not have the effect of waiving requirements specifically provided for in this code.” C. Santa Cruz Municipal Code Section 19.05.040 is hereby amended to read as follows:
“19.05.040 SECTION § 105.1.1 IS AMENDED – PERMITS REQUIRED Section § 105.1.1 of Chapter 1 of the Fire Code of the City of Santa Cruz is amended to read as follows:
§ 105.1.1 – Permits required. Any property owner or owner’s authorized agent who intends to conduct an operation or business, or install or modify systems and equipment which is regulated by this code, or to cause any such work to be performed, shall first make application to the fire code official and obtain the required permit.

When required by the fire code official, a permit shall be obtained. Permit fees, if any, shall be paid prior to issuance of the permit. Issued permits shall be kept on the premises designated therein at all times and shall be readily available for inspection by the fire code official.” D. Santa Cruz Municipal Code Section 19.05.050 is hereby amended to read as follows:
“19.05.050 SECTION § 109.1 IS ADDED– INSPECTION AUTHORITY Section § 109.1 of Chapter 1 of the Fire Code of the City of Santa Cruz is added to read as follows:
§ 109.1 – Inspection authority. The fire code official is authorized to enter and examine any building, structure, marine vessel, vehicle or premises in accordance with Section 104.4 for the purpose of enforcing this code.”
E. Santa Cruz Municipal Code Section 19.05.060 is hereby amended to read as follows:
“19.05.060 SECTION § 110.6 IS ADDED– OVERCROWDING
Section § 110.6 of Chapter 1 of the Fire Code of the City of Santa Cruz is added to read as follows:
§ 110.6 – Overcrowding. Overcrowding or admittance of any person beyond the approved capacity of a building or a portion thereof shall not be allowed. The fire code official, upon finding any overcrowding conditions or obstructions in aisles, passageways or other means of egress, or upon finding any condition which constitutes a life safety hazard, shall be authorized to cause the event to be stopped until such condition or obstruction is corrected.”

29.3 ORDINANCE NO. 2025-25
4 F. Santa Cruz Municipal Code Section 19.05.070 is hereby amended to read as follows:
“19.05.070 SECTION § 113.4 IS ADDED– VIOLATION PENALTIES.

Section § 113.4 of Chapter 1 of the Fire Code of the city of Santa Cruz is added to read as follows:
§ 113.4 – Violation Penalties. Persons who shall violate a provision of this code or shall fail to comply with any of the requirements thereof or who shall erect, install, alter, repair or do work in violation of the approved construction documents or directive of the fire code official, or of a permit or certificate used under provisions of this code, shall be guilty of an infraction.

Acts denominated as infractions shall not be punishable by imprisonment. Every violation determined to be an infraction is punishable by:

1. A fine not exceeding one hundred dollars for a first violation;

2. A fine not exceeding two hundred dollars for a second violation of the same provision of this code within one year;

3. A fine not exceeding five hundred dollars for each additional violation of the same provision of this code within one year.

A person charged with an infraction shall not be entitled to a trial by jury. A judgment that a person convicted of an infraction be punished by fine may also provide for the payment to be made within a specified time or in specified installments, contingent upon the person giving his written promise to either pay the fine as provided or to appear in court on the due date. Any person who willfully violates any such written promise is guilty of a misdemeanor. Each day that a violation continues after due notice has been served shall be deemed a separate offense. Nothing contained herein shall be deemed to limit the City’s authority to enforce the provisions of this Chapter pursuant to any other authority specified in the municipal code, or any other applicable state law.” G. Santa Cruz Municipal Code Section 19.05.080 is hereby amended to read as follows:
“19.05.080 SECTION § 113.4.1 AMENDED AND 112.4.2 ADDED—ABATEMENT OF VIOLATION; FAILURE TO COMPLY.

Section § 113.4.1 Chapter 1 of the Fire Code of the city of Santa Cruz is hereby amended and Section 113.4.2 is hereby added to read as follows:
§ 113.4.1 –Abatement of violation. In addition to the imposition of the penalties herein described, the fire code official is authorized to institute appropriate action to prevent unlawful construction or to restrain, correct or abate a violation; or to prevent illegal occupancy of a structure or premises; or to stop an illegal act, conduct of business or occupancy of a structure on or about a premises. 113.4.2– Failure to comply. It is unlawful for any person, firm or corporation to violate or fail to comply with any lawful order of the fire code official; fail to comply with an order by the Board of Building and Fire Appeals; or, fail to comply with an order of the court of competent jurisdiction within the time fixed therein. Every such violation shall be deemed a misdemeanor and shall be punishable by a fine of not more than $500.00 plus court assigned fees or by imprisonment not exceeding 1 year in the county jail, or both such fine and imprisonment.”

29.4 ORDINANCE NO. 2025-25
5 H. Santa Cruz Municipal Code Section 19.05.090 is hereby amended to read as follows:
“19.05.090 SECTION 202 IS AMENDED – GENERAL DEFINITIONS Section 202 of Chapter 2 of the Fire Code of the City of Santa Cruz is hereby amended as follows:

A. “Driveway” is added after “Draft Stop” to read as follows:

DRIVEWAY is vehicular ingress and egress routes that serve no more than 2 residential buildings or structures, not including accessory structures, on one parcel, containing no more than 3 dwelling units.
(a) All driveways shall provide a minimum unobstructed width of 12 feet and minimum unobstructed vertical clearance of 15 feet. Exception: Driveways serving parcels which are not considered a flag lot by the City Planning Department may be 10 feet wide when approved by the Fire Code Official.
(b) All curb cuts at entrances to driveways or other private ways shall be of sufficient width to permit safe travel by emergency vehicles at all times of the year. (c) Turnouts shall be designed and constructed every 400 feet along the driveway’s length or at the midpoint when the driveway is over 400 but not more than 800 feet in length. (d) A turnaround shall be provided at all building or structure sites on driveways over 300 feet in length and shall be at 50 feet from the structure. Fire vehicle access road turnaround shall meet minimum requirement provisions listed in the 2025 California Fire Code Appendix D.
(e) In addition, where applicable, all driveways shall conform to N.F.P.A. Standard 1141, the standard for planned building groups.

B. “Imposed Loads” is added after “Impairment Coordinator” to read as follows:

IMPOSED LOADS OF APPARATUS is a minimum of 40,000 pounds for a fire engine and 75,000 pounds for an aerial ladder fire truck.

C. “State Responsibility Area (SRA)” is added after “State-Owned/Leased Building” to read as follows:

STATE RESPONSIBILITY AREA (SRA) shall mean lands that are classified by the Board of Forestry pursuant to Public Resources Code Section 4125 to 4127; and the California Code of Regulations, Title14, Division 1.5, Chapter 7, Article 1, Sections 1220- 1220.5 where the financial responsibility of preventing and suppressing forest fires is primarily the responsibility of the State of California.

I. Santa Cruz Municipal Code Section 19.05.100 is hereby amended to read as follows:

29.5 ORDINANCE NO. 2025-25
6 19.05.100 SECTION 304.1.3 IS AMENDED – VEGETATION.

Section 304.1.3 of Chapter 3 of the Fire Code of the City of Santa Cruz is amended to read as follows:
304.1.2 – Vegetation. Weeds, grass, vines or other growth that is capable of being ignited and endangering property, shall be cut down and removed by the owner or occupant of the premises.

Vegetation clearance requirements in urban-wildland interface areas shall be maintained around and adjacent to buildings and structures in accordance with California Code of Regulations, Title 19, Division 1, Section 3.07(b) Clearances, 2025 California Wildland-Urban Interface Code Title 24 Part 7, Public Resources Code Section 4291 requirements and the following: A firebreak shall be made by removing and clearing away, for a distance of not less than 30 feet on each side of the building or structure or to the property line, whichever is nearer, all flammable vegetation or other combustible growth. This does not apply to single specimens of trees or other vegetation that is well-pruned and maintained so as to effectively manage fuels and not form a means of rapidly transmitting fire from other nearby vegetation to any building or structure.

When required by state law, or local ordinance, rule or regulation, an additional fire protection zone or firebreak may be made by removing all brush, flammable vegetation, or combustible growth that is located within 100 feet from the building or structure or to the property line. This section does not prevent an insurance company that insures a building or structure from requiring the owner of the building or structure to maintain a firebreak of more than 100 feet around the building or structure. Grass and other vegetation located more than 30 feet from the building or structure and less than 18 inches in height above the ground may be maintained where necessary to stabilize the soil and prevent erosion. This does not apply to single specimens of trees or other vegetation that is well-pruned and maintained so as to effectively manage fuels and not form a means of rapidly transmitting fire from other nearby vegetation to a dwelling or structure.

No owner, agent, lessee or other person occupying or having charge or control of any building, lot or premises within the city shall permit weeds to remain upon said premises or public sidewalk, or street or alleys between said premises and the centerline of any public street or alley after May 15th.

Whenever any such weeds are growing upon any private property or properties or in any street or alley within the city, the chief of the fire department shall give notice to the owner, agent, lessee or other person occupying or having charge or control of any building, lot or premises within the city, that unless such nuisance be abated without delay by the destruction or removal of such weeds, the work of abating such nuisance will be done by the city authorities, and the cost thereof assessed upon the lots and lands from which weeds shall have been destroyed or removed.

Method of Abatement
(a) The chief of the fire department shall cause weeds to be abated through mowing, cutting, disking, removal or any other approved method except spraying.

29.6 ORDINANCE NO. 2025-25
7 (b) When the chief determines that total removal of weed growth is impractical due to size or environmental factors, approved fuel breaks shall be established. Designated areas shall be cleared of combustible vegetation to establish fuel breaks. (c) The chief of the fire department, and its deputies, assistants, employees, contracting agents, or other representatives are hereby expressly authorized to enter upon private property for the purpose of destroying weeds.
(d) Any property owner shall have the right to abate such weeds themselves, or have the same abated at their own expense provided that such weeds shall have been destroyed or removed prior to May 15th and the arrival of the chief of the fire department or his/her agents or representative to abate them.
(e) Combustible rubbish which hampers or otherwise obstructs city weed abatement efforts may also be removed by the chief of the fire department or his/her agents or authorized representative at the owner’s expense under the reimbursement and collection provisions of this chapter.

J. Santa Cruz Municipal Code Section 19.05.140 is hereby amended to read as follows:

19.05.140 SECTION 308.1.7 IS ADDED– SKY LANTERNS
Section 308.1.7 of Chapter 3 of the Fire Code of the City of Santa Cruz is amended to read as follows:
308.1.7 – Sky lanterns. A person shall not release or cause to be released a sky lantern.

K. Santa Cruz Municipal Code Section 19.05.150 is hereby amended to read as follows:

19.05.150 SECTION 308.1.8 IS ADDED – RELIGIOUS CEREMONIES Section 308.1.8 of Chapter 3 of the Fire Code of the City of Santa Cruz is added to read as follows:
308.1.8 – Religious ceremonies. When, in the opinion of the fire code official, adequate safeguards have been taken, participants in religious ceremonies are allowed to carry hand-held candles.

Hand-held candles shall not be passed from one person to another while lighted.

L. Santa Cruz Municipal Code Section 19.05.190 is hereby amended to read as follows:

19.05.190 SECTION 503 IS AMENDED - FIRE APPARATUS ACCESS ROADS Section 503 of Chapter 3 of the Fire Code of the City of Santa Cruz is amended to read as follows:
503 Fire apparatus access roads.
503.1 Where required.

Fire apparatus access roads shall be provided and maintained in accordance with Sections 503.1.1 through 503.1.3.

29.7 ORDINANCE NO. 2025-25
8 503.1.1 Buildings and facilities.

Approved fire apparatus access roads shall be provided for every facility, building or portion of a building hereafter constructed or moved into or within the jurisdiction. The fire apparatus access road shall comply with the requirements of this section and shall extend to within 150 feet (45 720 mm) of all portions of the facility and all portions of the exterior walls of the first story of the building as measured by an approved route around the exterior of the building or facility.

Exception: The fire code official is authorized to increase the dimension of 150 feet (45,720 mm) where:

1. The building is equipped throughout with an approved automatic sprinkler system installed in accordance with Section 903.3.1.1, 903.3.1.2 or 903.3.1.3.

2. Fire apparatus access roads cannot be installed because of location on property, topography, waterways, nonnegotiable grades or other similar conditions, and an approved alternative means of fire protection is provided.

3. There are not more than two Group R-3 or Group U occupancies. 503.1.2 Additional access.

The fire code official is authorized to require more than one fire apparatus access road based on the potential for impairment of a single road by vehicle congestion, condition of terrain, climatic conditions or other factors that could limit access.
503.1.3 High-piled storage.

Fire department vehicle access to buildings used for high-piled combustible storage shall comply with the applicable provisions of Chapter 32.
503.2 Specifications.

Fire apparatus access roads shall be installed and arranged in accordance with Sections 503.2.1 through 503.2.8.
503.2.1 Dimensions.

Fire apparatus access roads shall have an unobstructed width of not less than 20 feet (6096 mm), except for approved security gates in accordance with Section 503.6, and an unobstructed vertical clearance of not less than 15 feet (4572 mm).
503.2.2 Authority.

The fire official shall have the authority to require or permit modifications to the required access widths where they are inadequate for fire or rescue operations or where necessary to meet the public safety objectives of the jurisdiction.
503.2.3 Surface.

Fire apparatus access roads shall be designed and maintained to support the imposed loads of fire apparatus and shall be surfaced so as to provide all-weather driving capabilities.

29.8 ORDINANCE NO. 2025-25
9 503.2.4 Turning radius.

The required turning radius of a fire apparatus access road shall be 28 feet (8,534 mm) inside radius and 48 feet (14,630 mm) outside radius on all turns in the fire apparatus access road, unless otherwise approved by the fire code official.
503.2.5 Dead ends.

Dead-end fire apparatus access roads in excess of 200 feet (60,960) in length shall be provided with an approved area for turning around fire apparatus. Access roads between 150 feet and 200 feet shall be straight for the entire distance.
503.2.6 Bridges and elevated surfaces.

Where a bridge or an elevated surface is part of a fire apparatus access road, the bridge shall be constructed and maintained in accordance with AASHTO HB-17. Bridges and elevated surfaces shall be designed for a live load sufficient to carry the imposed loads of fire apparatus. Vehicle load limits shall be posted at both entrances to bridges when required by the fire code official.

Where elevated surfaces designed for emergency vehicle use are adjacent to surfaces which are not designed for such use, approved barriers, approved signs or both shall be installed and maintained when required by the fire code official.
503.2.7 Grade.

The grade of the fire apparatus access road shall be within the limits established by the fire code official based on the fire department's apparatus.
503.2.8 Angles of approach and departure
The angles of approach and departure for fire apparatus access roads shall be within the limits established by the fire code official based on the fire departments apparatus. 503.3 Marking.

Where required by the fire code official approved signs or other approved notices or markings that include the words NO PARKING – FIRE LANE shall be provided for fire apparatus access roads to identify such roads or prohibit the obstruction thereof. The means by which fire lanes are designated shall be maintained in a clean and legible condition at all times and be replaced or repaired when necessary to provide adequate visibility. 503.4 Obstruction of fire apparatus access roads.

Fire apparatus access roads shall not be obstructed in any manner, including the parking of vehicles. The minimum widths and clearances established in Section 503.2.1 and 503.2.2 shall be maintained at all times.
503.4.1. Traffic calming devices
Traffic calming devices shall be prohibited unless approved by the fire code official. 503.4.2 Vegetation clearance along access roads.

Areas within 10 feet (3048) horizontal and 15 feet (4572 mm) vertical on each side of portions of highways, public and private streets, roads and driveways which are ordinarily used for vehicular traffic shall be cleared of flammable vegetation and other combustible growth.

29.9 ORDINANCE NO. 2025-25
10 Exception: Single specimens of trees, ornamental shrubbery or cultivated ground cover such as green grass, ivy, succulents or similar plants sued as ground covers, are exempt provided that they do not form a means of readily transmitting fire. 503.5 Required gates or barricades.

The fire code official is authorized to require the installation and maintenance of gates or the approved barricades across fire apparatus access roads, trails or other access ways, not including public streets, alleys or highways.
503.5.1 Secured gates and barricades.

Where required, gates and barricades shall be secured in an approved manner. Roads, trails and other access ways that have been closed and obstructed in the manner prescribed by Section 503.5 shall not be trespassed on or used unless authorized by the owner and the fire code official.

Exception: The restriction on use shall not apply to public officers acting within the scope of duty. § 503.5.2 Fences and gates.

School grounds may be fenced and gates therein may be equipped with locks, provided that safe dispersal areas based on 3 square feet (0.28 m2) per occupant are located between the school and the fence. Such required safe dispersal areas shall not be located less than 50 feet (15 240 mm) from school buildings.

Every public and private school shall conform with Section 32020 of the Education Code which states:

The governing board of every public school district, and the governing authority of every private school, which maintains any building used for the instruction or housing of school pupils on land entirely enclosed (except for building walls) by fences, or walls, shall, through cooperation with the local law enforcement and fire protection agencies having jurisdiction of the area, make provision for the erection of gates in such fences or walls. The gates shall be of sufficient size to permit the entrance of the ambulances, police equipment and fire-fighting apparatus used by the law enforcement and fire protection agencies. There shall be no less than one such access gate and there shall be as many such gates as needed to ensure access to all major buildings and ground areas. If such gates are to be equipped with locks, the locking devices shall be designed to permit ready entrance by the use of the chain or bolt-cutting devices with which the local law enforcement and fire protection agencies may be equipped.
503.6 Security gates.

The installation of security gates across a fire apparatus access road shall be approved by the fire chief. Where security gates are installed, they shall have an approved means of emergency operation. The security gates and the emergency operation shall be maintained operational at all times.

M. Santa Cruz Municipal Code Section 19.05.220 is hereby amended to read as follows:

29.10 ORDINANCE NO. 2025-25
11 19.05.220 CFC SECTIONS 903.1 THROUGH 903.2.10.2 ARE DELETED AND REPLACED – AUTOMATIC SPRINKLER SYSTEMS.

Sections 903.1 through 903.2.10.2 of Chapter 9 of the Fire Code of the city of Santa Cruz are deleted and replaced to read as follows:
903.1 General. Automatic sprinkler systems shall comply with this section. 903.1.1 Alternative Protection. Alternative automatic fire-extinguishing systems complying with Section 904 shall be permitted in lieu of automatic sprinkler protection where recognized by the applicable standard and approved by the fire code official. 903.2 Where required. Approved automatic sprinkler systems in new buildings and structures shall be provided in the locations described in this section. 903.2.1 New Structures. An automatic fire sprinkler system shall be provided in all new occupancies as defined in Chapter 3 of the California Building Code, regardless of type of construction and/or floor area, unless otherwise pre-empted by the California Health and Safety Code. Any occupancy not specifically mentioned shall be included in the group that it most nearly resembles based on the proposed life and fire hazard.

EXCEPTIONS:

1. Private garages, carports, workshops, office, art studio, and/or sheds not more than 1,000 square feet (93 m2) of total floor area shall not require fire sprinklers where they are detached and separate from other structures and provided with exterior wall and opening protection as per the California Building Code.

2. Sheds exceeding 1,000 square feet, (93 m2) but not exceeding 3,000 square feet (278 m2) shall not require fire sprinklers at the discretion of the Fire Chief when the applicant demonstrates that the applicant’s proposal does not increase the fire hazard or fire load.

3. Agricultural buildings as defined in Appendix Chapter C, of the California Building Code having a clear unobstructed side yard exceeding 60 feet (18,280 mm) in all directions, not exceeding 25 feet (7620 mm) in height and located within an Agricultural zoned district, as defined in the Santa Cruz County Planning Code.
a. Not exceeding 2,000 square feet (186 m2) or as exempted by the fire chief, shall not require fire sprinklers.
b. Exceeding 2,000 square feet (186 m2) but not exceeding 5,000 square feet, shall not require fire sprinklers at the discretion of the fire chief when the applicant demonstrates the applicant’s proposal does not increase the fire hazard or fire load. c. Greenhouses of non-combustible construction shall not require fire sprinklers.

4. Group B and Group M Occupancies not more than 500 square feet (46.5 m2) shall not require fire sprinklers where they are detached and separate from other structures and

29.11 ORDINANCE NO. 2025-25
12 provided with exterior wall and opening protection as per the 2025 California Building Code, Tables 508.4 and 508.9.

5. For public school state-funded construction projects see CFC Section 903.2.19. 903.2.2 Existing Structures. An automatic sprinkler system shall be provided in existing structures when, after the effective date of this code, a building permit is issued to allow additions to be made to existing structures which either:

1. Are already six thousand (6,000) square feet or greater in total floor area; or

2. Will increase the existing square footage to greater than > (6,000) square feet in total floor area; or

3. Will increase the total floor area of a structure by 10% or more; or

4. When there is a change in the character of the occupancy or use of any building which in the opinion of the fire chief increases or may cause to increase the hazard of fire or threat to life or safety.

5. When additions are made to a structure which contains an existing fire sprinkler system.

The fire sprinkler system shall be augmented, thus, creating fire sprinkler protection in the entire structure.

Exceptions:

1. Group U occupancies not more than one thousand (1,000) square feet.

2. Group B and Group M occupancies not more than five hundred (500) square feet.

3. Group R-3 dwellings:
a) Where additions do not increase the total existing square footage by more than 50%.

Or,
b) Where alterations and/or repairs result in the removal, alteration, modification, replacement and/or repair of fifty percent or more of the external walls of a building, or result in the removal, modification, replacement and/or repair of fifty percent or more of the existing internal structural and/or non-structural framework, independently or in combination thereof, within a five year period, the entire building shall be made to conform to the current provisions of this chapter. The determination under this section of the requirement for upgrading any existing structure to full conformance with current provisions of this Chapter shall be at the sole discretion of the Fire Code Official.

29.12 ORDINANCE NO. 2025-25
13 4. Accessory Dwelling Unit constructed on lots with an existing sprinklered primary residence:
a) Attached to main residence – fire sprinklers required. b) Detached from main residence, fire sprinklers required.

5. Accessory Dwelling Unit constructed on lots with an existing non-sprinklered primary residence:
a) Attached to main residence and is less than or equal to 50% of the existing sq-ft. of the primary residence – fire sprinklers not required.
b) Detached from main residence– fire sprinklers not required.

N. Santa Cruz Municipal Code Section 19.05.290 is hereby amended to read as follows:
“19.05.290 [reserved]”
SECTION 4. Santa Cruz Municipal Code Section 19.10.020 is hereby amended to read as follows:
“19.10.020 GEOGRAPHIC LIMITS REFERRED TO IN CERTAIN SECTIONS OF THE 2025 CALIFORNIA FIRE CODE.

The geographic limits referred to in certain sections of the 2025 California Fire Code are hereby established as follows:

Section 5704.2.9.6.1 (geographic limits in which the storage of Class I and Class II liquids in above-ground tanks outside of buildings is prohibited): City of Santa Cruz.

Section 5706.2.4.4 (geographic limits in which the storage of Class I and Class II liquids in aboveground tanks is prohibited): City of Santa Cruz.

Section 5806.2 (geographic limits in which the storage of flammable cryogenic fluids in stationary containers is prohibited): City of Santa Cruz.

Section 6104.2 (geographic limits in which the storage of liquefied petroleum gas is restricted for the protection of heavily populated or congested areas): City of Santa Cruz.” SECTION 5. Interpretation.

Nothing in this ordinance or in the Fire Code hereby adopted shall be construed to affect any suit or proceeding pending in any court or liability incurred under any prior version of this ordinance.

SECTION 6. This ordinance shall take effect and be in force thirty (30) days after final adoption but not prior to January 1, 2026.

29.13 ORDINANCE NO. 2025-25
14 PASSED FOR PUBLICATION this 18th day of November, 2025, by the following vote:

AYES: Councilmembers Trigueiro, Brunner, Golder, O’Hara; Vice Mayor Kalantari-Johnson; Mayor Keeley.

NOES: None.

ABSENT: Councilmember Newsome.

DISQUALIFIED: None.

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. 2025-25 and that
it has been published or posted in
accordance with the Charter of the
City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator

29.14 ORDINANCE NO. 2025-26
AN ORDINANCE OF THE CITY OF SANTA CRUZ ADDING CHAPTER 19.30 “WILDLAND-URBAN INTERFACE CODE” TO THE SANTA CRUZ MUNICIPAL CODE TO ADOPT AND INCORPORATE BY REFERENCE THE 2025 CALIFORNIA WILDLANDURBAN INTERFACE CODE AND MAKE OTHER AMENDMENTS WHEREAS, the State of California enacted Title 24, Part 7, the California Wildland-Urban Interface Code, relocating chapters from the California Building Code, California Residential Code, and the California Fire Code and incorporating sections from Title 14 and Title 19 of the California Code of Regulations, effective January 1, 2026; and WHEREAS, the unrestricted use of property in wildland-urban interface areas presents a significant risk to human life and property due to wildfires; and WHEREAS, the California Wildland-Urban Interface Code establishes minimum requirements to reduce the likelihood of life and property loss due to wildfires through the use of performance and prescriptive requirements for construction and development in high fire hazard severity zones; and
WHEREAS, the City of Santa Cruz (“City”) proposes to adopt and incorporate by reference the 2025 California Wildland-Urban Interface Code, including annual supplements and State amendments and errata; and
WHEREAS, the adoption of the 2025 California Wildland-Urban Interface Code by this Ordinance enables the City to make future modifications or changes to the California WildlandUrban Interface Code to address specific local climatic, geological, or topographical conditions; and
WHEREAS, the adoption of the 2025 California Wildland-Urban Interface Code by this Ordinance enables the City to utilize administrative and criminal enforcement measures as may be necessary to enforce provisions of the California Wildland-Urban Interface Code; and WHEREAS, the City proposes to make certain modifications in the requirements of the 2025 California Wildland-Urban Interface Code, which will make certain parts of the City’s Wildland-Urban Interface Code more restrictive than state law; and WHEREAS, California Health and Safety Code Section 17958.7 requires the Santa Cruz City Council to make express findings that changes or modifications to the requirements contained in the provisions published in the California Building Standards Code and the other regulations adopted pursuant to Section 17922 (including, but not limited to, green building standards) are reasonably necessary because of local climatic, geological, or topographical conditions; and

30.1 ORDINANCE NO. 2025-26
2 WHEREAS, California Health and Safety Code Section 17958.7 further requires that a copy of the above referenced findings “together with the modification or change expressly marked and identified to which each finding refers, shall be filed with the California Building Standards Commission”; and
WHEREAS, the Santa Cruz City Council finds that the proposed addition of Santa Cruz Municipal Code Chapter 19.30, modifying California Wildland-Urban Interface Code section 503.1, to remove the exception to compliance for additions to and remodels of buildings constructed prior to July 1, 2008 will ensure that all new construction in Wildland-Urban Interface areas adheres to the highest fire safety standards, and is reasonably necessary due to the increase of wildfire intensity and frequency as a result of local climatic conditions. This modification establishes a more restrictive local provision and does not conflict with the California WildlandUrban Interface Code; and WHEREAS, the Santa Cruz City Council further finds that, consistent with Health and Safety Code Section 18941.5, the modification to California Wildland-Urban Interface Code Section 503.1, to remove the exception to compliance for additions to and remodels of buildings constructed prior to July 1, 2008, is substantially equivalent to changes or modifications previously filed by the Santa Cruz City Council and were in effect as of September 30, 2025. More specifically, the City of Santa Cruz previously adopted Ordinance No. 2022-14, modifying California Fire Code Section 4901.3 in Santa Cruz Municipal Code Section 19.05.270 so that construction requirements in the 2022 California Building Code, Chapter 7A (applicable to buildings in the Wildland-Urban Interface Fire Area) applied consistently to all new construction and all new materials used for additions and remodels; and WHEREAS, Santa Cruz City Council hereby approves the below noted amendment to Chapter 5 of the 2025 California Wildland-Urban Interface Code. The below-noted modification has been proposed by the Santa Cruz Fire Department, in consultation with the City Attorney’s Office; and
WHEREAS, Staff is directed to file a copy of the findings included in this Ordinance with the California Buildings Standards Commission pursuant to California Health and Safety Code Section 17958.7.

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

SECTION 1. Recitals Incorporated. The recitals set forth in the preamble of this Ordinance are hereby incorporated into this Ordinance as if fully set forth herein.

SECTION 2. 2025 California Wildland-Urban Interface Code Adopted. The City of Santa Cruz hereby adopts the 2025 California Wildland-Urban Interface Code as the Wildland-Urban Interface Code of the City of Santa Cruz.

SECTION 3. Chapter 19.30 of the Santa Cruz Municipal Code is added as follows:

30.2 ORDINANCE NO. 2025-26
3 “Chapter 19.30 WILDLAND-URBAN INTERFACE CODE.

19.30.010 WILDLAND-URBAN INTERFACE CODE OF THE CITY OF SANTA CRUZ.

This chapter constitutes the Wildland-Urban Interface Code of the City of Santa Cruz.

19.30.020 WILDLAND-URBAN INTERFACE CODE ADOPTED.

The following documents are hereby adopted as part of the Wildland-Urban Interface Code of the City of Santa Cruz:

California Code of Regulations Title 24, Part 7, The 2025 California Wildland-Urban Interface Code.

One complete and up to date copy of the above document is and shall be maintained in the office of the building official, for use and examination by the public.

19.30.030 WILDLAND-URBAN INTERFACE CODE DELETIONS AND
MODIFICATIONS.

The following section of the Wildland-Urban Interface Code as adopted in Section 19.30.020 is hereby modified as follows:

Section 503.1 of the California Wildland-Urban Interface Code is amended to read as follows:

Buildings and structures hereafter constructed, modified, or relocated into or within wildland-urban interface areas shall meet the construction requirements in accordance with Chapter 5. Materials required to be ignition-resistant building materials shall comply with the requirements of Section 503.2.

Exceptions:

1. New accessory buildings and miscellaneous structures complying with Section 504.11.

2. Group C occupancy special buildings conforming to the limitations specified in Section 450.4.1 of the California Building Code.

19.30.040 GENERAL.
(a) General. The Fire Marshal, the Chief Building Official, or their respective designees are hereby authorized to enforce the provisions of this code. (b) Determination of Compliance. The Fire Marshal, the Chief Building Official, or their respective designees shall have authority to determine compliance with this code, to render interpretations of this code and to adopt policies and procedures in order to clarify the application of its provisions. Such interpretations, policies and procedures shall be in

30.3 ORDINANCE NO. 2025-26
4 compliance with the intent and purpose of this code and shall not have the effect of waiving requirements specifically provided for in this code.
(c) Applications and permits. The Fire Marshal, the Chief Building Official, or their respective designees are authorized to receive applications, review construction documents and issue permits for construction regulated by this code, issue permits for operations regulated by this code, inspect the premises for which such permits have been issued and enforce compliance with the provisions of this code.

19.30.050 PENALTIES.

Any person, firm, or corporation violating any provisions of this chapter shall be subject to the penalties provided in Title 4 or alternatively delineated in the Santa Cruz County superior court uniform bail and penalty schedule for the City of Santa Cruz.” SECTION 4. This ordinance shall take effect and be in force thirty (30) days after final adoption.

PASSED FOR PUBLICATION this 18th day of November, 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

30.4 ORDINANCE NO. 2025-26
5 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. 2025-26 and that
it has been published or posted in
accordance with the Charter of the
City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator

30.5 ORDINANCE NO. 2025-27

AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING SANTA CRUZ MUNICIPAL CODE SECTION 10.36.040 PERTAINING TO MEDIANS
WHEREAS, the City has a substantial and compelling interest in promoting traffic safety and reducing hazards to bicyclists, motorists, and pedestrians. The Council is concerned about the safety impacts associated with individuals lingering on medians, particularly along high-speed, high-volume, or narrow median locations where pedestrians are especially vulnerable to collisions.

WHEREAS, the City’s existing Santa Cruz Municipal Code (“SCMC”) § 10.36.040 currently prohibits “remaining” on any median citywide. This ordinance narrows SCMC §

10.36.040 to focus on medians where there is a clear, objective public-safety risk, while ensuring the regulation is content-neutral and consistent with free-speech protections.

WHEREAS, the City Council desires to eliminate all traffic fatalities and severe injuries and increase safe, healthy, and equitable mobility for all. In furtherance of that goal, in August of 2019, the City of Santa Cruz adopted a Vision Zero policy to eliminate all traffic fatalities and serious injuries on City streets by 2030.

WHEREAS, medians are an important tool for increasing street safety and meeting the City’s Vision Zero goal. Medians enhance street safety by physically separating opposing traffic, reducing head-on collisions and cross-over accidents, providing pedestrian refuge islands, and shortening crossing distances. Nevertheless, medians, and especially narrow medians that often simply serve to divide traffic, are not designed as pedestrian gathering spaces. Individuals lingering on medians risk being struck by vehicles, obstruct traffic sightlines, and distract drivers who must focus on the safe operation of fast-moving vehicles.

WHEREAS, the City Council, in consultation with the City Engineer, finds that increased exposure to vehicles from lingering on medians creates safety risks where the median is narrow four feet wide or less), adjacent to a roadway with high traffic volume, or on or adjacent to a highspeed corridor such as the River Street/Highway 1 intersection. Such medians provide little refuge for pedestrians, particularly from large or commercial vehicles whose mirrors or accessories extend into adjacent lanes. Even wider medians adjacent to high-speed or high-volume roadways place pedestrians at significant risk of being struck or inadvertently entering the roadway. Narrow medians further limit the ability of pedestrians to safely avoid vehicles, increasing both the likelihood and potential severity of collisions.

WHEREAS, the City Engineer has also found that sometimes pedestrians who linger on medians obstruct traffic signs or signals, which is another public safety issue. Traffic devices sometimes installed on medians include regulatory signs and equipment such as turn prohibitions and signal indications, which, if blocked, creates a traffic safety concern.

WHEREAS, the City Council hereby enacts the following amendments to Santa Cruz Municipal Code Section 10.36.040.

31.1 ORDINANCE NO. 2025-27
2 NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Santa Cruz as follows:

SECTION 1. Santa Cruz Municipal Code Section 10.36.040 is amended as follows:
“LINGERING ON CERTAIN MEDIANS
(a) Definitions. The following definitions apply to this section:
“Linger” means to remain for longer than two traffic signal cycles, or, for locations without a traffic signal, for longer than three minutes.
“Median” means a raised paved or planted strip of ground dividing a street, roadway, or highway into lanes according to the direction of travel. (b)
(1) No person may linger on any median within the City of Santa Cruz at a location on the median that is four feet wide or narrower.
(2) No person may block traffic signs or signals located on or within any median in the City of Santa Cruz for more than two traffic signal cycles, or, for locations without a traffic signal, for longer than three minutes.
(3) No person may linger on any median within the City of Santa Cruz at a location that is within 100 feet of any roadway where the speed limit is 35 miles per hour or higher. (c) The prohibitions contained in subdivision (b) above shall not apply to public employees, employees of public utilities, or employees of public contractors when it is necessary to be upon a median in connection with their employment duties. Nor shall subdivision (b) prohibit anyone from being present on a median as may be necessary to cross a roadway or respond to an emergency.
(d) Any violation of this section is punishable as either an infraction or a misdemeanor.” SECTION 2. This ordinance shall take effect and be in force thirty (30) days after final adoption.

31.2 ORDINANCE NO. 2025-27
3 PASSED FOR PUBLICATION this 18th day of November, 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.

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. 2025-27 and that
it has been published or posted in
accordance with the Charter of the
City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator

31.3 Brittany Inclan
From: Judi Grunstra <[email protected]>
Sent: Saturday, December 6, 2025 11:16 AM
To: City Council
Subject: Consent public hearing #32
Dear Mayor and Council:

I support the ordinance to improve safety. I hope the median on Ocean St is also included (esp near Soquel Dr intersection).

I wonder how news of this ordinance will reach the folks who typically panhandle from these medians. How will the locations be specified? (hopefully some sort of clear, easy to read signage that doesn't obstruct drivers' vision).

Thank you.

Judi Grunstra

31.4 31.5

31.6 ORDINANCE NO. 2025-28

AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING SANTA CRUZ MUNICIPAL CODE SECTION 5.82 PERTAINING TO SIDEWALK VENDING WHEREAS, in 2019, California Senate Bill ("SB") 946 (Sidewalk Vendors) became law, decriminalizing commercial sidewalk vending and limiting local governments' ability to restrict sidewalk vending;
WHEREAS, on April 12, 2022, the City passed Ordinance No. 2022-03, which created the Santa Cruz Municipal Code Chapter 5.82, “Sidewalk Vending;” to promote public health, safety, and welfare, through a comprehensive City-wide dedicated sidewalk vending permitting and regulation scheme that was intended to both comply with state law and be effective at regulating sidewalk vending in public spaces;
WHEREAS, on February 12, 2023, the City amended the Ordinance via Ordinance No. 2023-04;
WHEREAS, on March 25, 2025, the City amended the Ordinance via Ordinance No. 2025- 06;
WHEREAS, the intent of this ordinance is to update the current sidewalk vending permitting and regulation scheme to effectively regulate sidewalk vending in a way that both complies with state and federal law, while at the same time effectively addressing objective public health, safety, and welfare concerns.

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

Section 1. Santa Cruz Municipal Code Section 5.82.120 “IMPOUNDMENT” is hereby amended as follows:

5.82.120 IMPOUNDMENT.
a) The city may impound vending display devices, food, goods, and/or merchandise that:
1) Reasonably appear to be abandoned on public property; or 2) Is (A) creating an imminent and substantial safety or environmental hazard by the location of the vending display device or the nature of the goods being offered for sale, and (B) refuses to remove their vending display device, food for sale, and/or goods/merchandise for sale after being instructed to do so by a city enforcement official. b) The city may immediately dispose of impounded materials that are perishable or cannot be safely stored.

32.1 ORDINANCE NO. 2025-28
2 c) An individual may recover impounded materials upon demonstrating proper proof of ownership.
d) Any unclaimed items will be considered abandoned and forfeited to the city after ninety days following impoundment.

Section 2. Santa Cruz Municipal Code Section 5.82.150 “NUISANCE” is hereby added as follows:
“5.82.150 NUISANCE.

The city council hereby finds and declares that repeated violations of this chapter constitute a public nuisance which may be enjoined under all applicable law, including but not limited to Municipal Code Section 4.04.020.”
Section 3. 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: 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

32.2 ORDINANCE NO. 2025-28
3 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. 2025-28 and that
it has been published or posted in
accordance with the Charter of the
City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator

32.3 32.4

32.5 City Council

AGENDA REPORT
DATE: 11/19/2025
AGENDA OF: 12/09/2025
DEPARTMENT: Economic Development and Housing
SUBJECT: Tax and Equity Fiscal Responsibility Act (TEFRA) Hearing and Resolution regarding Conduit Financing for the 136 River Street Project (EDH)
LOCATION: District 5
RECOMMENDATION: Conduct the public hearing under the requirements of Tax and Equity Fiscal Responsibility Act (“TEFRA”) and the Internal Revenue Code of 1986, as amended (the “Code”) and adopt a resolution approving the issuance of tax-exempt multi-family rental housing revenue bonds in an amount not to exceed $30,000,000 (the “Bonds”), by the California Municipal Finance Authority (“CMFA”) for the benefit of 136 River Apartments Investors, L.P. (the “Borrower”), to provide for the financing of the multi-family rental housing project.

BACKGROUND: On January 24, 2024, the project at 136 River Street was approved ministerially by the City’s Zoning Administrator. The Borrower requested that the CMFA serve as the municipal issuer of the Bonds in an aggregate principal amount not to exceed $30,000,000 of tax-exempt revenue bonds. The proceeds of the Bonds will be used to finance or refinance the acquisition, construction, improvement and equipping of a multi-family rental housing project (the “Project”) located at 136 River Street, Santa Cruz, California.

In order for the Bonds to qualify as tax-exempt, the City must conduct a public hearing (the “TEFRA Hearing”), providing community members an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Prior to such TEFRA Hearing, reasonable public notice must be provided. Following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project.

CALIFORNIA MUNICIPAL FINANCE AUTHORITY:

The CMFA was created on January 1, 2004, pursuant to a joint exercise of powers agreement to promote economic, cultural and community development, through the financing of economic development and charitable activities throughout California. To date, over 350 municipalities, including the City, have become members of CMFA.

DISCUSSION: In the judgment of the Borrower, the most cost-effective and desirable way to finance the Project requires the issuance of tax-exempt Bonds in an amount not to exceed

33.1 $30,000,000. Issuance of the Bonds requires the host city to conduct a public hearing under the TEFRA. The hearing is to consider the proposed issuance of the Bonds by the CMFA, a joint exercise of powers authority and public entity of the State of California, in an amount not to exceed $30,000,000, to finance the Project. In order to finance the Project, the City Council will need to adopt a resolution approving the issuance of the Bonds by the CMFA at the public hearing.

In order to support the production of affordable housing, staff recommend that the City Council conduct the TEFRA Hearing and adopt the resolution in favor of the issuance of the Bonds by the CMFA.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The project qualified for Categorical Exemptions under CEQA guidelines Section 15332, Class 32 for an infill development project. The project was deemed consistent with the General Plan and zoning regulations except as modified by State Density Bonus Law. The project site is less than five acres in size and is substantially surrounded by urban uses. The project site has no value as habitat for endangered, rare, or threatened species as it does not contain any natural open space and is not mapped for sensitive habitat under the general plan. The project would not result in significant effects related to traffic, noise, air quality, or water quality, and the site is within the urban services area and will be served by all utilities and public services.

HEALTH IN ALL POLICIES (HiAP): HiAP is a collaborative approach to improving the health of all people by incorporating health considerations into decision-making across sectors and policy areas. HiAP rests on three pillars: equity, public health, and sustainability. HiAP serves to ensure that all decision-makers remain informed about the health, equity, and sustainability impacts of various policy options during the policy development process. The project supports the pillar of equity by providing rental units on an infill site in a developed urban area improved with sidewalks and street trees and offering direct access to public transportation, commercial goods and services, and recreational areas, including ample opportunities for recreation and respite provided by virtue of the site’s proximity to parks and the Pacific Ocean. The development of residences on the existing low-performing, underutilized site encourages a sustainable and healthy lifestyle by promoting alternative forms of transportation.

Through the incorporation of additional bicycle parking and site landscaping, the redevelopment encourages a sustainable and healthy lifestyle by promoting alternative modes of transportation in a resource-rich environment encouraging outdoor recreation. As such, the project fortifies the three pillars of the HiAP and demonstrates efficient and judicious use of the subject property.

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 will be no impact to the City’s General Fund. The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, or moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City or the State of California but are to be paid for solely from funds provided by the Borrower.

33.2 Prepared By:

Jessie Bristow
Development Manager
Submitted By:

Bonnie Lipscomb
Deputy City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

33.3 RESOLUTION NO. NS-30,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ APPROVING

THE ISSUANCE OF THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY TAX

EXEMPT FACILITY BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $30,000,000 FOR THE PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION, CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF 136 RIVER

STREET APARTMENTS AND CERTAIN OTHER MATTERS RELATING THERETO WHEREAS, 136 River Apartments Investors, L.P. (the “Borrower”) a partnership of which For the Future Housing, Inc. (the “Developer”) or a related person to the Developer is the general partner, has requested that the California Municipal Finance Authority (the “Authority”) adopt a plan of financing providing for the issuance of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Internal Revenue Code of 1986 (the “Code”) in one or more series issued from time to time, including bonds issued to refund such exempt facility bonds in one or more series from time to time, and at no time to exceed $30,000,000 in aggregate principal amount (the “Bonds”), to finance or refinance the acquisition, construction, improvement and equipping of a multifamily rental housing project located at 136 River Street, Santa Cruz, California (the “Project”); and
WHEREAS, pursuant to Section 147(f) of the Code, the issuance of the Bonds by the Authority must be approved by the City of Santa Cruz (the “City”) because the Project is located within the territorial limits of the City; and
WHEREAS, the City Council of the City (the “City Council”) is the elected legislative body of the City and is one of the “applicable elected representatives” required to approve the issuance of the Bonds under Section 147(f) of the Code; and WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”), among certain local agencies, including the City; and
WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Santa Cruz as follows:

Section 1. The foregoing resolutions are true and correct.

Section 2. The City Council hereby approves the issuance of the Bonds by the Authority.

It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the Authority, for the purposes of (a) Section 147(f) of the Code by the

33.4 RESOLUTION NO. NS-30,XXX
applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement.

Section 3. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Bonds.

Section 4. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein.

Section 5. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby.

Section 6. This resolution shall take effect immediately upon its adoption.

PASSED AND ADOPTED this 9th day of December, 2025 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

33.5 City Council

AGENDA REPORT
DATE: 11/19/2025
AGENDA OF: 12/09/2025
DEPARTMENT: Economic Development and Housing
SUBJECT: Tax and Equity Fiscal Responsibility Act (TEFRA) Hearing and Resolution regarding Conduit Financing for the 525 Water Street Project (EDH)
LOCATION: District 1
RECOMMENDATION: Conduct the public hearing under the requirements of Tax and Equity Fiscal Responsibility Act (“TEFRA”) and the Internal Revenue Code of 1986, as amended (the “Code”) and adopt a resolution approving the issuance of tax-exempt multi-family rental housing revenue bonds in an amount not to exceed $32,000,000 (the “Bonds”), by the California Municipal Finance Authority (“CMFA”) for the benefit of 525 Water Street LP (the “Borrower”), to provide for the financing of the multi-family rental housing project.

BACKGROUND: On May 7, 2025, the project at 525 Water Street was approved ministerially by the City’s Zoning Administrator. The Borrower requested that the CMFA serve as the municipal issuer of the Bonds in an aggregate principal amount not to exceed $32,000,000 of tax-exempt revenue bonds. The proceeds of the Bonds will be used to finance or refinance the acquisition, construction, improvement and equipping of a multi-family rental housing project (the “Project”) located at 525 Water Street, Santa Cruz, California.

In order for the Bonds to qualify as tax-exempt, the City must conduct a public hearing (the “TEFRA Hearing”), providing community members an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Prior to such TEFRA Hearing, reasonable notice must be provided. Following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project.

CALIFORNIA MUNICIPAL FINANCE AUTHORITY:

DISCUSSION: In the judgment of the Borrower, the most cost-effective and desirable way to finance the Project requires the issuance of tax-exempt Bonds in an amount not to exceed

34.1 $32,000,000. Issuance of the Bonds requires the host city to conduct a public hearing under the TEFRA. The hearing is to consider the proposed issuance of the Bonds by the CMFA, a joint exercise of powers authority and public entity of the State of California, in an amount not to exceed $32,000,000, to finance the Project. In order to finance the Project, the City Council will need to adopt a resolution approving the issuance of the Bonds by the CMFA at the public hearing.

In order to support the production of affordable housing, staff recommend that the City Council conduct the TEFRA Hearing and adopt the resolution in favor of the issuance of the Bonds by the CMFA.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

Assembly Bill 2011 establishes a process for reviewing a qualifying housing development proposal, intended to facilitate jurisdictional oversight via a ministerial, streamlined process, and states that a development proposal does not constitute a “project” under the California Environmental Quality Act (CEQA), codified as Public Resources Code Division 13 (commencing with Section 21000). As a project eligible for the protections of AB2011, no further evaluation of the submitted proposal shall be conducted pursuant to the California Environmental Quality Act.

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 will be no impact to the City’s General Fund. The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal or moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City or the State of California but are to be paid for solely from funds provided by the Borrower.

34.2 Prepared By:

Jessie Bristow
Development Manager
Submitted By:

Bonnie Lipscomb
Deputy City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

34.3 RESOLUTION NO. NS-30,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ APPROVING

THE ISSUANCE OF THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY TAX

EXEMPT FACILITY BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $32,000,000 FOR THE PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION, CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF 525 WATER

STREET AND CERTAIN OTHER MATTERS RELATING THERETO
WHEREAS, 525 Water Street LP (the “Borrower”) a partnership of which Zen Development LLC (the “Developer”) or a related person to the Developer is the general partner, has requested that the California Municipal Finance Authority (the “Authority”) adopt a plan of financing providing for the issuance of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Internal Revenue Code of 1986 (the “Code”) in one or more series issued from time to time, including bonds issued to refund such exempt facility bonds in one or more series from time to time, and at no time to exceed $32,000,000 in aggregate principal amount (the “Bonds”), to finance or refinance the acquisition, construction, improvement and equipping of a multifamily rental housing project located at 525 Water Street, Santa Cruz, California (the “Project”); and
WHEREAS, pursuant to Section 147(f) of the Code, the issuance of the Bonds by the Authority must be approved by the City of Santa Cruz (the “City”) because the Project is located within the territorial limits of the City; and
WHEREAS, the City Council of the City (the “City Council”) is the elected legislative body of the City and is one of the “applicable elected representatives” required to approve the issuance of the Bonds under Section 147(f) of the Code; and WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”), among certain local agencies, including the City; and
WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Santa Cruz as follows:

Section 1. The foregoing recitals are true and correct.

Section 2. The City Council hereby approves the issuance of the Bonds by the Authority.

It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the Authority, for the purposes of (a) Section 147(f) of the Code by the

34.4 applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement.

Section 6. This resolution shall take effect immediately upon its adoption.

PASSED AND ADOPTED this 9th day of December, 2025 by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

34.5 City Council

AGENDA REPORT
DATE: 11/20/2025
AGENDA OF: 12/09/2025
DEPARTMENT: Public Works/Planning and Community Development SUBJECT: No-Parking Street Sweeping Program and Street Sweeping Coastal Permit Project Number: CP25-0132 Coastal Permit for Continuation, in Perpetuity, of Limitation of Hours of Public Parking in Support of Ongoing Sweeping of City Streets in the Public Right-of-Way on Land Within the Shoreline Protection Overlay/Coastal Zone on Public Rights-of-Way Within the Coastal Zone, Including Potential Future Expansions of the Locations and Time of Parking Restrictions. Environmental Review: Not a Project Pursuant to CEQA Section 15378; Statutory Exemption: CEQA Guidelines Section 15282(j) (14 CCR Section 15282(j)). Categorical Exemption: CEQA Guidelines Sections 15301(c) and (g), 15307, 15308, and 15061(b) (14 CCR Sections 15301(c) and (g), 15307, 15308, and 15061(b).); Filed: 10/15/2025 by Applicant: City of Santa Cruz. This Coastal Permit is Appealable to the California Coastal Commission (PW/PL)
LOCATION: Districts 1, 2, 5, and 6
RECOMMENDATION: Motion to:
1) Adopt a resolution formalizing and making permanent the No-Parking Street Sweeping Pilot Program, allowing for continuation, in perpetuity, and future expansion of limitations on hours of public parking on certain streets in various locations throughout the City of Santa Cruz; and 2) Adopt a resolution acknowledging the environmental determination and approving a Coastal Development Permit for continuation, in perpetuity, and future expansion of limitations on hours of public parking in support of ongoing sweeping of City streets in the public right-of-way on land within the Shoreline Protection Overlay/Coastal Zone, based on the attached Findings and Conditions of Approval.

BACKGROUND: Street sweeping is an effective best management practice (BMP) in mitigating stormwater pollution as urban runoff and other "non-point source" discharges regulated by the 1972 Federal Clean Water Act. The City of Santa Cruz (City) Public Works Resource Recovery division provides street sweeping services citywide, which help reduce trash, sediment, trace metals, and many other pollutants entering the San Lorenzo River, Monterey Bay National Marine Sanctuary, and other local waterbodies through the stormwater system. The

35.1 City’s street sweeping services also help maintain compliance with the Municipal Separate Storm Sewer System (MS4) permit issued with the State Water Resources Control Board (SWRCB) under the auspices of the National Pollutant Discharge Elimination System (NPDES) permit program.

In 2015, the SWRCB adopted a Trash Amendment to all MS4 permittees, including the City of Santa Cruz. This amendment established a statewide water quality objective for trash, meaning the City must reduce the amount of trash discharged into waters of the State (e.g. Monterey Bay).

By the 2018 compliance date, the City’s Public Works department contracted a third-party organization to document trash levels throughout City streets and assess the effectiveness of the street sweeping program. Although many streets were characterized as having “low” trash levels, several streets were identified as “moderate,” with certain segments showing “high” and “very high” trash levels. These areas include the Ocean Street corridor, Soquel Drive, Water Street, the Harvey West area, and main roads in the far west side of the city (i.e. Delaware and Mission Street extension). These noncompliant trash areas were later designated as the Zones for the NoParking Street Sweeping Pilot Program approved through the City Council’s adoption of Resolution No. NS-30,379 on August 27, 2024. The approval specifies the pilot program’s oneyear timespan while the Coastal Permit is effective until December 31, 2025.

Coastal Permit
To improve the effectiveness of municipal street sweeping operations, the City recently adopted a No-Parking Street Sweeping Pilot Program via CP23-0144, affirmed through City Council Resolution No. NS-30,379, encompassing a prohibition on vehicular parking from the hours of 5:00 a.m. until 7:00 a.m. on six routes within three designated areas throughout the City. In adopting the Pilot Program, the City pledged to pursue a new Coastal Permit for continuation of parking restrictions beyond the one-year pilot program. The subject Coastal Permit application would thus allow for continuation of existing parking restrictions on City streets located in the Coastal Zone incorporated in the Pilot Program, including Delaware Avenue, Natural Bridges Drive, Swanton Boulevard, and Mission Street.

On November 20, 2025, the Planning Commission granted approval of the Coastal Permit for continuation, in perpetuity, of proposed limitation of hours of public parking in support of ongoing sweeping of City streets in the public right-of-way on land within the Shoreline Protection Overlay/Coastal Zone. Please see the attached staff report for further information.

Thereafter, in accordance with Municipal Code Section 24.04.175, Councilmember Golder referred the decision of the Planning Commission for City Council final action.

At the Planning Commission hearing of November 20th, the Commission discussed a variety of topics related to the City’s existing street-sweeping program, including the impacts of, and whether to allow, towing of vehicles parked in the public right-of-way during hours of restricted parking; the costs of implementing the program versus the parking citation revenue; the number of vehicles towed to date under the program, which is zero; and the options for potential modification to, or expansion of, the program. After deliberation, the Planning Commission voted 4 to 1 (McKelvey opposed; Dann & Thompson absent) to approve the Coastal Permit with recommended conditions of approval.

The attached November 20, 2025, Planning Commission staff report contains additional information on the street sweeping program, the Coastal Permit request to modify parking

35.2 restrictions, the project’s consistency with the City’s Local Coastal Program, and the staff recommendation. Staff continues to recommend approval of the Coastal Permit, consistent with the Planning Commission report and the Planning Commission’s action.

DISCUSSION: Per the City Council’s direction at its August 27, 2024 meeting to return with findings and recommendations for the No-Parking Street Sweeping Pilot Program, Public Works staff has been conducting regular evaluations of the program. Metrics for evaluation include trash levels, enforcement actions, and feedback from both street-sweeper vehicle operators and community members. A summary is listed below:

Visual Trash Assessments
Zones were assessed on a monthly basis on the same day of street sweeping. These visual assessments are documented using ArcGIS Field Maps and recorded in the department’s stormwater management software. Comparing the trash levels from the start of these assessments in 2018 to the present, collected data (visual observations) confirm that trash levels have consistently decreased. Before the one-year Street Sweeping Pilot Program, areas among Ocean Street/Soquel Avenue/Water Street (Zones 3 and 4) and Mission Street extension (Zones 5 and 6) were identified as having moderate trash levels. Overall, visual trash assessment results throughout the pilot program indicate that previously moderate trash levels have decreased to low trash levels with exceptions in Zones 1 and 2 along Coral Street.

Collected Trash Totals
Street sweeper operators in the Resource Recovery Collections division log the amount of debris and trash collected within each Zone of the pilot program. Since the program started in March 2025 through October 31, 2025, a total of 92.55 cubic yards (about 121.06 tons) of trash and sediment were removed from the curb and gutters before they enter the waterways.

Parking Enforcement
The Parking Services division issued warnings to all first-time violations and escalated with citations for repeat offenders. From the beginning of the pilot in March 2025 to October, a total of 574 warnings and 573 citations were issued while zero vehicles have been towed as a result of the street sweeping program. Street curbs are where trash and debris collects and sits, and street sweepers cannot reach the curb when cars are parked. Moving a car for a short window once a week is one of the simplest, most cost-effective actions residents can take to directly help improve water quality.

Feedback
Public Works maintains a tracking sheet for documenting public feedback. Comments included residential requests to have their streets swept or to report illegal dumping. This insight can help identify potential locations to expand the program as deemed beneficial, subject to approval of a new Coastal Permit.

The results of the visual trash assessments and total of collected trash throughout the No-Parking Street Sweeping Pilot Program are promising thus far. They indicate the street sweepers are successful in collecting trash and diverting it from local waterways. There is, however, still room for improvement. Parking Services staff are treating the pilot program as an educational opportunity for the community and have not yet escalated to towing vehicles. Towing should still be an available tool for providing sweepers full access to the curb and gutter and ultimately

35.3 collecting more trash and debris. Public Works staff recommend establishing this program as a permanent component of the City’s street sweeping schedule.

Project plans can be found on the City webpage here:
https://www.santacruzca.gov/Government/City-Departments/Public-Works/Projects Coastal Permit Changes Since the Planning Commission Hearing Since the Planning Commission Hearing, the City has made a few modifications to the structure of the conditions and to a limited number of conditions. First, the conditions presented to Planning Commission were structured in a manner that included both a) new conditions for the subject permit, CP25-0132, while also including by reference b) the prior conditions from the former Coastal Permit, CP23-0144, to the extent that they did not conflict with the new conditions. To clarify and simplify what conditions of approval apply, staff has consolidated the two sets of conditions into one set.

The Planning Commission inquired about whether changes to the locations or hours of parking restrictions could be made, and staff responded that the permit would allow such changes. The proposed edits to the conditions increase the clarity that the Director of Public Works and the Director of Planning and Community Development can amend the locations and time restrictions.

The conditions of approval were modified since the Planning Commission hearing to note that, in order to make such changes to parking restriction times or locations, the Director of Public Works and the Director of Planning and Community Development must make a finding that the proposed changes would not create an adverse impact to coastal resources, which would include access to the coast.

Should the Director of Public Works and the Director of Planning and Community Development find that the street sweeping program creates an adverse coastal resource impact during the course of its operation, the final substantive change to the conditions would require that the program be modified to alleviate said adverse impact.

The conditions of approval attached to this report as part of the Coastal Permit Resolution include the updated changes. The prior version of the conditions of approval is available from the packet materials for the November 20, 2025 Planning Commission hearing (https://www.santacruzca.gov/pc).

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

Limitation of hours of parking for short durations at regular intervals to facilitate sweeping of City streets hold little, if any, potential for impact to the environment based on established thresholds of significance and, therefore, is not considered a project under Article 19 of the California Environmental Quality Act (CEQA) Guidelines Section 15378. Further, the proposed actions remain statutorily exempt from environmental review under CEQA Guidelines Section 15282(j), related to restriping of City streets, and categorically exempt under Section 15301(c) and (g), 15307, 15308, and 15061(b), related to alteration of City streets not involving addition of lanes.

The California Environmental Quality Act (CEQA) establishes several “categorical exemptions” applicable to classes of projects and varieties of activities which generally avoid inducing risk of significant impacts to the environment. Section 15307 of the CEQA Guidelines “consists of

35.4 actions taken by regulatory agencies... to assure the maintenance, restoration, or enhancement of a natural resource where the regulatory process involves procedures for protection of the environment.”
Section 15308 of the CEQA Guidelines
“consists of actions taken by regulatory agencies… to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for the protection of the environment.”
None of the exceptions to the exemptions under Section 15300.2 apply, in that the project site (public rights-of-way within the Coastal Zone) is not located in a mapped environmentally sensitive area, the project (continuation of parking restrictions on public streets for predefined periods on a predictable schedule) is not part of a larger project that could result in a cumulative impact, there are no unusual circumstances associated with the project or subject parcel, the project will not result in damage to resources associated with an officially designated scenic highway, the project site is not included on any lists compiled pursuant to Section 65962.5 of the Government Code related to Hazardous Waste Sites, and the project will not result in substantial adverse changes in the significance of a historical resource site in that there are no known historic resources on the property.

Implementation of limited-duration restrictions of hours of on-street public parking, with minor modifications as potentially required, will not result in any new construction, or need for building of additional facilities for public services such as Police, Parks, or Fire. As the proposed actions would facilitate the improvement of street-sweeping operations for more effective removal of debris from City streets, the proposed project will bring about beneficial, rather than detrimental, environmental outcomes. The proposed project demonstrates eligibility for implementation of exemptions as afforded by CEQA. None of the exceptions to the exemptions under Section 15300.2 applies.

HEALTH IN ALL POLICIES (HiAP): The goal of HiAP is to ensure that all decision-makers are informed about the public health, equity, and sustainability impacts of various initiatives during the policy development process. The No-Parking Street Sweeping Program addresses Healthy Environments by reducing the amount of pollution going into the storm drain systems and local waterbodies, including the San Lorenzo River and Monterey Bay.

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: Initial costs for starting the pilot program covered the manufacturing and installation of new no-parking signs. However, continuing the program should not increase current sweeping costs. Any increase in costs related to parking enforcement is expected to be offset by fines generated by noncompliance.

35.5 Prepared By:

Jessica Juico
Environmental Programs
Analyst II
Timothy Maier
Senior Planner
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works,
P.E.

Lee Butler
Director of Planning and
Community Development
Approved By:

Matt Huffaker
City Manager

35.6 ATTACHMENTS:

1. RESOLUTION - NO-PARKING STREET SWEEPING PILOT PROGRAM.DOCX

2. RESOLUTION COASTAL AND ENVIRONMENTAL DETERMINATION.DOCX

3. TRANSPORTATION AND PUBLIC WORKS COMMISSION STAFF REPORT - JANUARY 22, 2024.PDF

4. ZONING ADMINISTRATOR STAFF REPORT - APRIL 17, 2024.PDF

5. CITY COUNCIL STAFF REPORT - AUGUST 27, 2024.PDF

6. CALIFORNIA COASTAL COMMISSION STAFF REPORT APPEAL - NOVEMBER 14, 2024.PDF

7. PLANNING COMMISSION STAFF REPORT - NOVEMBER 20, 2025.DOCX

8. EMAIL FROM COUNCILMEMBER GOLDER PER 24.04.175.PDF

35.7 RESOLUTION NO. NS-30-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ TO

FORMALIZE AND MAKE PERMANENT THE STREET-SWEEPING PILOT PROGRAM,

ALLOWING FOR CONTINUATION, IN PERPETUITY, LIMITATION ON HOURS OF

PUBLIC PARKING ON STREETS IN VARIOUS LOCATIONS THROUGHOUT THE CITY WHEREAS, one of the primary functions of the City is to promote the health and wellbeing of the community; and WHEREAS, street sweeping is a critical operation for ensuring public health, maintaining cleanliness of City streets and protecting the water quality of local waterways; and WHEREAS, the City is mandated by the State Water Resources Control Board (SWRCB/ “Water Board”) to reduce trash-related impacts to local waterways and the Monterey Bay; and WHEREAS, on February 22, 2024, the Transportation and Public Works Commission (TPWC) reviewed the Street-Sweeping Pilot Program as originally proposed, and recommended that the City Council approve limitation on hours of parking, with enforcement through towing and placement of signage to facilitate implementation of the program; and WHEREAS, on August 27, 2024, the City Council considered the proposed one-year pilot program and adopted Resolution NS-30,379, approving 1) parking restrictions for the pilot StreetSweeping Program in Zones 1-4 (located outside the Coastal Zone) during posted hours; and WHEREAS, on December 9, 2025, the City Council conducted a duly-noticed public hearing to consider proposed continuation of parking restrictions in support of municipal streetsweeping operations.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Santa Cruz hereby formalizes and makes permanent the Street-Sweeping Pilot Program, allowing for continuation, in perpetuity, limitation of hours of public parking on lands in various locations throughout the city.

35.8 PASSED AND ADOPTED this 9th day of December 2025, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

35.9 RESOLUTION NO. NS-30-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ TO

FORMALIZE AND MAKE PERMANENT THE STREET-SWEEPING PILOT PROGRAM,

ACKNOWLEDGING THE ENVIRONMENTAL DETERMINATION AND APPROVING A

COASTAL PERMIT FOR CONTINUATION, IN PERPETUITY, AND FUTURE

EXPANSION OF LIMITATIONS ON HOURS OF PUBLIC PARKING IN SUPPORT OF

ONGOING SWEEPING OF CITY STREETS IN THE PUBLIC RIGHT-OF-WAY ON LAND

WITHIN THE SHORELINE PROTECTION OVERLAY/COASTAL ZONE (APPLICATION NO. CP25-0132)
WHEREAS, one of the primary functions of the City is to ensure the public health and well-being of the community; and
WHEREAS, street sweeping is a critical operation for ensuring public health, maintaining cleanliness of City streets and protecting the water quality of local waterways; and WHEREAS, the City is mandated by the State Water Resources Control Board (SWRCB/ “Water Board”) to reduce trash-related impacts to local waterways and the Monterey Bay; and WHEREAS, on February 22, 2024, the Transportation and Public Works Commission (TPWC) reviewed the Street-Sweeping Pilot Program as originally proposed, and recommended that the City Council approve limitation on hours of parking, with enforcement through towing, and placement of signage to facilitate implementation of the program; and WHEREAS, on April 17, 2024, the Zoning Administrator conducted a public hearing for review of applications for Coastal Permit and Design Permit CP23-0144 for proposed limitation on hours of public parking and placement of new signage for sweeping of City streets in the public right-of-way on land within the Shoreline Protection Overlay/Coastal Zone. Thereafter, on May 13, 2024, an appeal of the Coastal Permit approval was submitted to the California Coastal Commission; and
WHEREAS, on August 27, 2024, the City Council considered the proposed one-year pilot program and adopted Resolution NS-30,379, approving 1) parking restrictions for the pilot StreetSweeping Program in Zones 1-4 (located outside the Coastal Zone) during posted hours and 2) approving parking restrictions for the pilot Street-Sweeping Program in Zones 5-6 (located in the Coastal Zone) during posted hours and directed the City Manager or designee to implement the one-year Pilot Program. Subsequently, on October 7, 2024, an appeal of the City Council’s action enabling parking restrictions in the Coastal Zone was submitted to the California Coastal Commission; and
WHEREAS, on November 14, 2024, the California Coastal Commission, at public hearing, made a determination of No Substantial Issue (NSI) of Appeal Number A-3-STC- 24-0044, thereby allowing the City Council’s action and prior Zoning Administrator Coastal Permit approval to remain effective; and

35.10 WHEREAS, by referral of the Zoning Administrator pursuant to Municipal Code Section

24.04.130(2), on November 20, 2025, the Planning Commission, at public hearing, granted approval of the Coastal Permit for continuation, in perpetuity, of proposed limitation on hours of public parking in support of ongoing sweeping of City streets in the public right-of-way on land within the Shoreline Protection Overlay/Coastal Zone; and WHEREAS, in accordance with Municipal Code Section 24.04.175, a member of the City Council referred for City Council review the decision of the Planning Commission; and WHEREAS, on December 9, 2025, the City Council conducted a duly-noticed public hearing to consider proposed continuation of parking restrictions in support of municipal streetsweeping operations; and WHEREAS, the City Council now makes the following findings:

With Respect to the Environmental Determination
Public Resources Code Section 21080 establishes proposed actions deemed statutorily exempt from environmental review. Limitation on hours of public parking, including associated minor modifications (such as demarcation of parking spaces and similar) would remain statutorily exempt under Article 19 of the California Environmental Quality Act (CEQA) Guidelines, Section 15282(j), related to restriping of City streets. Further, Public Resources Code Section 21084 requires California Environmental Quality Act (CEQA) Guidelines to include a list of classes of projects which have been determined not to have a significant effect on the environment and which, therefore, shall be exempt from the provisions of CEQA. Section 15307 (Class 7 Categorical Exemption) of the CEQA Guidelines “consists of actions taken by regulatory agencies... to assure the maintenance, restoration, or enhancement of a natural resource where the regulatory process involves procedures for protection of the environment.” Section 15308 (Class 8 Categorical Exemption) of the CEQA Guidelines “consists of actions taken by regulatory agencies… to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for the protection of the environment.” Implementation of limited-duration restrictions on hours of on-street public parking, with minor modifications as potentially required, will not likely result in any new construction, or need for building of additional facilities for public services such as Police, Parks, or Fire.

As the proposed actions would facilitate the improvement of street-sweeping operations for more effective removal of debris from City streets, the proposed project will bring about beneficial, rather than detrimental, environmental outcomes. None of the exceptions to the exemptions under CEQA Section 15300.2 apply. The proposed project therefore demonstrates eligibility for implementation of statutory and categorical exemptions as afforded by CEQA.

Coastal Permit, Section 24.08.250

1. Maintain views between the sea and the first public roadway parallel to the sea.

35.11 With the scope of work encompassing limitation of hours of public parking, the proposal will not induce adverse impact to coastal views.

2. Protect vegetation, natural habitats and natural resources consistent with the Local Coastal Land Use Plan.

The proposed actions are consistent with the California Environmental Quality Act (CEQA) and the City’s environmental review and protection procedures. No disturbance of any vegetation, natural habitats, or natural resources will accompany the actions included in the subject Coastal Permit.

3. Be consistent with any applicable design plans and/or area plans incorporated into the Local Coastal Land Use Plan, in that it implements policies therein.

Actions included under the requested Coastal Permit remain consistent with the Local Coastal Program (and General Plan) in that the proposed scope of work advances, and serves to implement, relevant goals and policies related to promotion of enhanced aesthetics and protection of the natural environment.

The proposed actions address policies and programs of the Local Coastal Program, including, but not limited to, the following:
 Water Quality Policy 2.1: Meet or exceed State Water Resources Control Board standards for discharge of sewage and storm waters to the Monterey Bay.  Open Space Lands Policy 3.5: Protect coastal recreation areas, maintain all existing coastal access points open to the public, and enhance public access, open space quality and recreational enjoyment in a manner that is consistent with the California Coastal Act.
 Open Space Lands Policy 3.7: Recognize and protect the Pacific Ocean and Monterey Bay as a valuable open space, natural resource, and National Marine Sanctuary.
 Natural Setting and Scenic Resources Program 2.1.3: Protect the Monterey Bay National Marine Sanctuary and the shoreline and views to and along the ocean, recognizing their value as natural and recreational resources.  Open Space Lands Program 3.5.5: Develop and implement plans to maximize public access and enjoyment of recreations areas along the coastline.  Biotic Diversity and Stability Program 4.2.5: Protect and minimize the impact of development on bird, fish and wildlife habitat in and adjacent to waterways.  Biotic Diversity and Stability Program 4.1.5: Protect the quality of water discharged into the Bay and allow no dumping of materials into the Monterey Bay.

An evaluation of the project’s potential for generation of environmental impacts in accordance with the provisions of the California Environmental Quality Act (CEQA) and the City’s Environmental Review Guidelines and procedures has resulted in the conclusion that all actions included qualify for established categorical and/or statutory

35.12 exemptions and the determination that the subject application holds no potential for generation of significant environmental impact, but, rather, will improve both the visual and natural environment.

The subject Coastal Permit application provides for ongoing implementation of the City’s Street-Sweeping Program which seeks to minimize detrimental environmental impacts associated with accumulation of refuse along City street curbs.

The proposed actions remain statutorily exempt from environmental review under Article 19 of the California Environmental Quality Act (CEQA) Guidelines, Section 15282(j), related to restriping of City streets, and categorically exempt under Section 15301(c) and (g), 15307, 15308 and 15061(b), related to alteration of City streets not involving addition of lanes.

Limited-duration restrictions of hours of on-street public parking, with potential future minor modifications as deemed necessary, will not likely result in any new construction, or need for building of additional facilities for public services such as Police, Parks, or Fire. As the proposed actions would allow for more effective street-sweeping operations providing for removal of debris from City streets, implementation of an enhanced streetsweeping pilot program will bring about beneficial, rather than detrimental, environmental outcomes.

4. Maintain public access to the coast along any coastline as set forth in the Local Coastal Land Use Plan.

The proposed scope of work would prohibit parking for a limited duration on alternating sides of affected streets on differing days, affording adequate access to the curb and gutter for street-sweeping vehciles to remove accumulate trash which would otherwise eventually migrate into the Monterey Bay, where its environmental impact would be exacerbated. Short-duration limitation on hours of parking will not substantively impact availability of vehicular parking which would obstruct or impair access to the Coast. The subject application will enhance cleanliness and safety by facilitating proper disposal of litter, with associated benefits to preservation of community character and aesthetics. The project will enable the general public to experience coastal access to the ocean and adjacent shore in an environment of improved cleanliness, rendering visitation to oceanside lands more attractive and thereby encouraging public access to the coast.

Conditions of approval require that, should the street sweeping program create an adverse coastal resource impact (for example, to coastal access) then the program will be modified to alleviate said adverse impact.

5. Be consistent with the Local Coastal Land Use Plan goal of providing visitor-serving needs as appropriate.

No impact to bona-fide recreational beach access would result from the proposed actions.

Conditions of approval require that, should the street sweeping program create an adverse

35.13 coastal resource impact (for example, to coastal access) then the program will be modified to alleviate said adverse impact.

6. Be consistent with the Local Coastal Land Use Plan goal of encouraging coastal development uses as appropriate.

The restriction on hours of public on-street parking remain consistent with the Local Coastal Land Use Plan and holds no appreciable impact to coastal development while enhancing City street-sweeping operations to effect improved aesthetic and environmental conditions promoting public coastal access.

Shoreline Protection Overlay District, Section 24.10.2430

7. The project protects trees and vegetation and sensitive wildlife habitat.

The proposed limited-duration restriction on vehicular parking will not negatively affect trees, vegetation, or sensitive wildlife habitat. By reducing litter accumulation, improved street-sweeping operations will have a positive effect on trees, vegetation, and sensitive habitat.

8. The project is consistent with the following criteria for bluff or cliff development:
a. The development is sited and designed to assure stability and structural integrity of its expected economic life span and minimize alterations to natural landforms. b. The development will not create or contribute significantly to problems of erosion or geologic instability on the site or on surrounding geologically hazardous areas. c. The development minimizes alteration of cliffs, bluff tops, faces or bases, and will not interfere with sand movement.
d. The development which proposes use of retaining walls shall be allowed only to stabilize slopes. Sea walls at the toe of sea cliffs to check marine erosion shall be allowed only where there is no less environmentally damaging alternative. e. The development within one hundred feet of any cliff or bluff line shall follow the recommendations of an approved geologic report by a registered geologist.

The area where such a report is required may be increased where the issue of slope stability requires a greater distance from any cliff or bluff line.

Continuation of existing limitations of on-street public parking will not physically affect any cliff or bluff.

35.14 9. The project provides maximum erosion protection, using accepted engineering practices and other methods and specifications set forth in this title.

The project will not result in any detrimental impact related to accelerated erosion.

10. The project maintains public view corridors between the sea and the first public roadway parallel to the sea and maintain natural views of the coastline.

The proposed actions will not result in impact to any view corridor between the sea and the first public roadway parallel to the sea.

11. The project protects paleontological resources as prescribed in the Land Use Plan.

The proposed actions do not encompass any subsurface excavation and therefore will not impact paleontological resources as prescribed in the Land Use Plan. The above finding remains inapplicable.

12. The project protects and enhances free public access to or along the beach, and sign such access when necessary.

The proposed actions will not reduce the capacity of, or access to, free public parking or bona fide recreational use of the shore. Conditions of approval require that, should the street sweeping program create an adverse coastal resource impact (for example, to coastal access) then the program will be modified to alleviate said adverse impact. The project improves cleanliness of the beach area, thereby enhancing free public access.

13. The project includes mitigation measures prescribed in any applicable environmental document.

No mitigation measures apply, and the above finding remains inapplicable.

14. The project is compatible with the established physical scale of the area.

The proposed actions will not impact the established physical scale of the area, and the above finding remains inapplicable. The project will not induce physical effect to any cliff, bluff, or mapped sensitive habitat.

15. The project is consistent with the design review guidelines of this title and the policies of any applicable area plan.

As the project proposes a continuation of existing limitation on hours of on-street public parking to enable more effective sweeping of City streets in the Coastal Zone, the above finding remains inapplicable.

35.15 16. The project is consistent with the policies of the Local Coastal Program, the General Plan, and the California Coastal Act.

The proposed actions demonstrate consistency with the policies of the Local Coastal Program, the General Plan, and the California Coastal Act in that the proposed limitedduration restriction of vehicular parking will result in continued benefits to the community along spans of the coast affected by accumulation of trash and debris, with attendant enhancements to health and safety. The proposed actions will address the policies of the LCP as listed below:
 Water Quality Policy 2.1: Meet or exceed State Water Resources Control Board standards for discharge of sewage and storm waters to the Monterey Bay.  Open Space Lands Policy 3.5: Protect coastal recreation areas, maintain all existing coastal access points open to the public, and enhance public access, open space quality and recreational enjoyment in a manner that is consistent with the California Coastal Act.
 Open Space Lands Policy 3.7: Recognize and protect the Pacific Ocean and Monterey Bay as a valuable open space, natural resource, and National Marine Sanctuary.
 Natural Setting and Scenic Resources Program 2.1.3: Protect the Monterey Bay National Marine Sanctuary and the shoreline and views to and along the ocean, recognizing their value as natural and recreational resources.  Open Space Lands Program 3.5.5: Develop and implement plans to maximize public access and enjoyment of recreations areas along the coastline.  Biotic Diversity and Stability Program 4.2.5: Protect and minimize the impact of development on bird, fish and wildlife habitat in and adjacent to waterways.  Biotic Diversity and Stability Program 4.1.5: Protect the quality of water discharged into the Bay and allow no dumping of materials into the Monterey Bay.

Recreational access to the beach will remain unaffected, and the proposed actions will avoid negative impacts to availability of free public parking and access to the shore.

Limitations of on-street public parking will not detrimentally affect any mapped highimpact, environmentally sensitive sites within the Coastal Zone. Conditions of approval require that, should the street sweeping program create an adverse coastal resource impact (for example, to coastal access) then the program will be modified to alleviate said adverse impact.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Santa Cruz hereby formalizes and makes permanent the Street-Sweeping Pilot Program, acknowledging the environmental determination and approving a Coastal Permit for continuation, in perpetuity, and future expansion of limitations on hours of public parking in support of ongoing sweeping of city streets in the public right-of-way on land within the Shoreline Protection Overlay/Coastal Zone, subject to the Findings listed above and the Conditions of Approval listed in Exhibit “A” , attached hereto and made a part hereof.

35.16 PASSED AND ADOPTED this 9th day of December 2025, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

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

35.17 RESOLUTION NO. NS-30-XXX
EXHIBIT "A"

CONDITIONS OF APPROVAL FOR THE PROJECT ON PROPERTY AT
Citywide at Select Locations in the Coastal Zone – CP25-0132 Coastal Permit for continuation, in perpetuity, and future expansion of limitations on hours of public parking in support of ongoing sweeping of City streets in the public rightof-way on land within the Shoreline Protection Overlay/Coastal Zone.

1. If one or more of the following conditions is not met with respect to all its terms, then the approval may be modified or revoked.

2. If, upon exercise of this permit, the proposed use is at any time determined by the Zoning Administrator to be incompatible with the surrounding neighborhood, revocation of, or amendment to, this permit can occur.

3. All plans for future construction which are not covered by this review shall be submitted to the City Planning and Community Development Department for review and approval.

4. This permit shall be exercised within three (3) years of the date of final approval, or it shall become null and void.

5. The actions included in the subject permit applications shall remain independent of, and not impact, any action approved by CP23-0176.

6. The Street-Sweeping Pilot Program shall allow for limited-hours restrictions of on-street parking in perpetuity, subject to conditions included herein.

7. The Director of Planning and Community Development, in conjunction with the Director of Public Works, shall be authorized to make minor modifications regarding the placement of signage and/or limitations of hours of on-street parking as deemed necessary to facilitate an effective Street Sweeping Program, upon making a finding that the proposed changes would not create an adverse impact to coastal resources, which would include access to the coast.

8. This permit shall allow for expansion of the Street Sweeping Program into additional areas of the City within the Coastal Zone, subject to review by the Director of Planning and Community Development in conjunction with the Director of Public Works, upon making a finding that the proposed changes would not create an adverse impact to coastal resources, which would include access to the coast.

9. Should the Director of Public Works and the Director of Planning and Community Development find that the street sweeping program creates an adverse coastal resource impact (including access to the coast) during the course of its operation, the street sweeping program shall be modified to alleviate said adverse impact.

35.18 10. The use shall meet the standards and shall be developed within limits established by Chapter

24.14 of the Santa Cruz Municipal Code as to the emission of noise, odor, smoke, dust, vibration, wastes, fumes or any public nuisance arising or occurring incidental to its establishment or operation.

11. The applicant shall be responsible for the completeness and accuracy of all forms and supporting material submitted in connection with any application. Any errors or discrepancies found therein may result in the revocation of any approval or permits issued in connection therewith.

12. While land disturbance is not anticipated as part of this permit, if, for whatever reason, land disturbance associated with this permit occurs, any person exercising a development permit or building permit who, at any time in the preparation for or process of excavating or otherwise disturbing earth, discovers any human remains of any age or any artifact or any other object which reasonably appears to be evidence of an archaeological/cultural resource or paleontological resource, shall:
a. Immediately cease all further excavation, disturbance, and work on the project site; b. Cause staking to be placed completely around the area of discovery by visible stakes not more than ten feet apart forming a circle having a radius of not less than one hundred feet from the point of discovery; provided, that such staking need not take place on adjoining property unless the owner of the adjoining property authorizes such staking; c. Notify the Santa Cruz County sheriff-coroner and the city of Santa Cruz planning director of the discovery unless no human remains have been discovered, in which case the property owner shall notify only the planning director; d. Grant permission to all duly authorized representatives of the sheriff-coroner and the planning director to enter onto the property and to take all actions consistent with this section.

35.19 35.20

35.21 CITY OF SANTA CRUZ

TRANSPORTATION AND PUBLIC WORKS

COMMISSION

AGENDA REPORT
DATE: 11/30/23
AGENDA OF: January 22, 2024
DEPARTMENT: Public Works
SUBJECT: No Parking Streets for Weekly Street Sweeping Pilot Program RECOMMENDATION: That the Transportation and Public Works Commission recommend that the City Council approve the proposed streets for a no parking pilot program to improve the City Street Sweeping Program.

BACKGROUND: Historically, the Public Works Resource Recovery Division has provided street sweeping services to the City. Currently, we attempt to sweep commercial areas at least weekly and residential areas twice a month, following their refuse collection day. The City has few parking restrictions in place, which often present a problem for the sweeping operation. When the sweeper needs to go around parked vehicles they miss several car lengths of curb area, where most trash accumulates. This forces the sweeper into the traffic lane and provides incomplete sweeping coverage and allows some material to make its way to the storm drains and ultimately to the Monterey Bay. Not only is this environmentally unsustainable, it does not meet the full requirements of our citywide Stormwater Permits with the Regional Water Board.
.

DISCUSSION: For several years, the City has utilized a third party organization to monitor and test our streets for debris and trash in accordance with the Regional Water Board Stormwater permit. This also provides a “report card” for the effectiveness of our sweeeping program. Although most of the city shows low trash impacts, several areas were identified as “moderate trash levels.” These areas are primarily the Ocean Street corridor, Soquel and Water, the Harvey West area, and the far westside, primarily Deleware and Mission Stret Extension area.

The concept of this pilot program is to temporarily restrict parking between the hours of 5 AM and 9 AM on alternate days, for example the south side of the street would be swept on Tuesday and the north side would be swept on Thursdays. This would still allow some parking on the alternate side of the street on the sweeping day. It allows our sweeper to fully access the curb areas and improve efficiency of the sweeping operation. When the sweepers can get to the curb they can quickly clean the area without having to swerve around parked vehicles, improving the city’s stormwater compliance requirements.

In addition to the fact that these streets are higher in trash levels, they are primarily in commercial areas which should lessen the impact of restricted parking for those few hours each week. This pilot will help us assess how the program could work in those remaining moderate trash residential areas, those where parking is at a premium.

Zone 1 Wednesday
Encinal from River Street to Du Bois St. 30 spaces

35.22 Transportation and Public Works Commission January 22, 2024 No Parking Streets for Weekly Street Sweeping Pilot Program Page 2 Du Bois St. to Harvey West Blvd. 23 spaces
Harvey West Blvd to Coral St. 58 spaces
Coral St. to River St. 68 spaces
Zone 1 Friday
Coral St. from River St. to Harvey West Blvd 30 spaces
Harvey West Blvd from Coral St.to Du Bois 61 spaces
Du Bois St. from Harvey West Blvd.to Encinal St. 30 spaces Encinal to River Street 28 spaces
Zone 2 Tuesday
Ocean Street from Ocean St. Extension to Soquel Ave. 66 spaces Soquel Ave to Morrissey Blvd. 80 spaces
Water St. from Morrissey Blvd. to North Branciforte Ave. 43 spaces Zone 2 Thursday
Water St. from North Branciforte Ave. to Morrissey Blvd. 14 spaces Soquel Ave from Poplar Ave to Ocean St. 46 spaces
Ocean Street from Soquel Ave. to Plymouth St. 50 spaces Zone 3 Tuesday
Mission Street Extension from Swift Street to Western Dr. 67 spaces Natural Bridges Dr. to Delaware Ave. 80 spaces
Delaware Ave. from Shaffer Rd to Swift St. 140 spaces
Swanton Blvd from Delaware Ave to West Cliff Dr. 79 spaces Zone 3 Thursday
Natural Bridges Dr. from Delaware Ave. to Mission St. Extension 66 spaces Mission St. from Western Dr. to Swift St. 77 spaces
Delaware Ave. From Swift St. to Shaffer Rd. 147 spaces
Swanton Blvd. from West Cliff Drive to Delaware Ave. 45 spaces FISCAL IMPACT: The Refuse Fund has budgeted funding for the manufacture and installation of the no parking signs associated with this project. Since this program falls under our current operation, there should be no increase in sweeping costs, it’s anticipated that it will improve the efficiency of the current sweeping efforts. There may be some increased costs related to parking control and towing, but those additional costs should be offset by the fines generated by non-compliance.

Prepared by: Name, Title

35.23 Transportation and Public Works Commission January 22, 2024 No Parking Streets for Weekly Street Sweeping Pilot Program Page 3 Submitted by:

Name, Title
Attachments:

Trash Moderate Area Map
Proposed Pilot Sweeping Areas

35.24 P:\_Public\PACKETS\2024\4 - ZA\4-17-24\Public ROW in Costal Zone - Street Sweeping\CP23-0144 Staff Report.doc

ZONING ADMINISTRATOR

AGENDA REPORT
DATE: April 17, 2024
AGENDA OF: April 8, 2024
ITEM NO.: CP23-0144 Citywide at Select Locations in the Coastal Zone RECOMMENDATION: That the Zoning Administrator acknowledge the environmental determination and approve the Coastal Permit and Design Permit for proposed limitation of hours of public parking and placement of new signage for sweeping of City streets in the public right-of-way on land within the Shoreline Protection Overlay/Coastal Zone, based on the attached Findings and the Conditions of Approval listed in Exhibit “A”.

PROJECT DATA
Property Owner: City of Santa Cruz APNs: Various
Representative: Eric Dhakni, Public Works Department
Application Type: Coastal Permit for prohibition of public parking during limited hours in select areas of the Coastal Zone to facilitate improved effectiveness of the City’s existing Street Sweeping Program; and Design Permit to review proposed signage design and placement locations
Project Consistency: Consistent with the General Plan land use designations Zoning Designation: Select locations in the Coastal Zone within the public right-of-way (ROW), including Delaware Avenue, Natural Bridges Drive, Swanton Boulevard, and Mission Street

General Plan: Various
Project Consistency: Consistent with the General Plan land use designations Land Use:

Existing: Public streets and public parking
Proposed: Same with modified hours of allowable parking Parking: No change to parking capacity; only hours of allowable parking subject to change
Coastal Review: Coastal Permit required
Environmental Review: Statutory exemption: CEQA Guidelines Section 15282(j) (14 CCR section 15282(j)).

35.25 AGENDA REPORT
ZA Meeting of April 17, 2024
SUBJECT: City Street Sweeping in Coastal Zone– Application No. CP23-0144

Page 2 ends

Santa Cruz City CouncilDecember 9, 2025

Santa Cruz City Council
December 9, 2025