Cities Index.
Agenda packet

Santa Cruz City Council
February 10, 2026

Document
Agenda packet
Meeting
February 10, 2026
Body
Santa Cruz City Council
Pages
68
Original file
25.2 MB
Text extracted from the city's file for reading and search. Open the original on ecm.cityofsantacruz.com. That file is the official record.

14.71 17.06 Long-Term Disability ................................................................................................................ 35

17.07 Principal Domestic Partners ...................................................................................................... 35

17.08 Retiree Medical Trust ................................................................................................................ 36 SECTION 18.00 - GRIEVANCE PROCEDURE ........................................................................................... 37

18.01 Purpose ...................................................................................................................................... 37

18.02 Definitions ................................................................................................................................. 37

18.03 Limitations ................................................................................................................................ 37

18.04 Consolidation ............................................................................................................................ 38

18.05 Procedures ................................................................................................................................. 38

18.05.01 Step I ................................................................................................................................ 38

18.05.02 Step II .............................................................................................................................. 38

18.05.03 Step III ............................................................................................................................. 39

18.05.04 Step IV ............................................................................................................................ 39 SECTION 19.00 - DISCIPLINARY APPEALS PROCEDURE .................................................................... 40

19.01 Definition .................................................................................................................................. 40

19.02 Pre-Action Procedure ................................................................................................................ 40

19.02.01 Step I ................................................................................................................................ 40

19.02.02 Step II .............................................................................................................................. 40

19.03 Post-Action Appeal ................................................................................................................... 40

19.03.01 Step III ............................................................................................................................. 40

19.03.02 Step IV ............................................................................................................................. 41

19.04 Firefighters Procedural Bill of Rights Act ................................................................................ 42 SECTION 20.00 - WRITTEN REPRIMANDS .............................................................................................. 42 SECTION 21.00 - SEVERABILITY .............................................................................................................. 42 SECTION 22.00 - RENEGOTIATIONS ........................................................................................................ 42 SECTION 1.00 - TERM ................................................................................................................................... 1 SECTION 2.00 - PREAMBLE ......................................................................................................................... 1 SECTION 3.00 - NO ABROGATION OF RIGHTS ........................................................................................ 1 SECTION 4.00 - UNION/MANAGEMENT RELATIONS............................................................................. 1

4.01 Association Use of City E-Mail System .......................................................................................... 1 SECTION 5.00 - UNION RECOGNITION/AGENCY SHOP ....................................................................... 2

5.01 Recognition ...................................................................................................................................... 2

5.02 Payroll Deduction ............................................................................................................................ 2

14.72 5.02.01 Payroll Deductions ................................................................................................................. 2

5.02.02 Union’s Certification ............................................................................................................. 2

5.03 Indemnification ..................................................................................................................................... 3

5.04 Union Notification ........................................................................................................................... 3 SECTION 6.00 - FULL UNDERSTANDING, MODIFICATION, WAIVER ................................................ 3 SECTION 7.00 - NO DISCRIMINATION ...................................................................................................... 4 SECTION 8.00 - WORK WEEK/SHIFTS/ASSIGNMENTS .......................................................................... 4

8.01 56 Hour/Week Schedule .................................................................................................................. 4

8.01.01 Work Week ............................................................................................................................ 4

8.01.02 Shifts ...................................................................................................................................... 4

8.01.03 Time Released ........................................................................................................................ 4

8.02 40 Hour/Week Schedule .................................................................................................................. 4

8.02.01 Work Week ............................................................................................................................ 4

8.02.02 Schedule ................................................................................................................................. 5

8.03 Job Assignment ................................................................................................................................ 5

8.03.01 Fire Prevention Assignment ................................................................................................... 5

8.03.02 Marine Rescue Captain Assignment ...................................................................................... 5

8.04 Staffing ............................................................................................................................................ 5

8.05 Shift and Station Bidding ................................................................................................................ 5

8.06 Vacancy Bidding ............................................................................................................................. 5

8.08 Marine Safety Officer Shift Differential .......................................................................................... 5 SECTION 9.00 - PERSONNEL ACTION ....................................................................................................... 6

9.01 Performance Evaluations ................................................................................................................. 6

9.02 Probation .......................................................................................................................................... 6

9.02.01 Probationary Period ............................................................................................................... 6

9.02.02 Objective of Probationary Period ........................................................................................... 6

9.02.03 Rejection of Probationary Employee ..................................................................................... 7

9.02.04 Extension of Probation ........................................................................................................... 7

9.03 Personnel Files ................................................................................................................................. 7 SECTION 10.00 - PAY RATES AND PRACTICES ....................................................................................... 7

10.01 Salary Steps ................................................................................................................................. 7

10.01.01 Salary Rates Upon Appointment ....................................................................................... 7

10.01.02 Advancement Within the Range ........................................................................................ 7

14.73 10.02 Salary ........................................................................................................................................... 8

10.03 P.E.R.S. ....................................................................................................................................... 9

10.03.01 Employees Hired on or Before September 2, 2011 (Tier I) ............................................... 9

10.03.02 Employees Hired On or After September 3, 2011 (Tier II) ............................................. 10

10.03.03 Employees Hired On or After January 1, 2013 (Tier III) ................................................ 10

10.03.04 Retirement, All Employees .............................................................................................. 11

10.03.05 Sick Leave Conversion .................................................................................................... 11

10.04 Overtime .................................................................................................................................... 12

10.04.01 56-Hour Work Week ....................................................................................................... 12

10.04.02 40-Hour Work Week ....................................................................................................... 12

10.05 Marine Safety Officer CalPERS ................................................................................................ 13

10.06 Call Back ................................................................................................................................... 13

10.06.01 Marine Safety Officer Call-Back ..................................................................................... 13

10.06.01.01 Callback by Phone or Computer ................................................................................. 13

10.06.01.02 Callback to Worksite .................................................................................................. 14

10.07 Holidays .................................................................................................................................... 14

10.07.01 56-Hour per Week Employees ........................................................................................ 14

10.07.02 40-Hour per Week Employees ........................................................................................ 15

10.07.03 Marine Safety Officer Holidays ...................................................................................... 16

10.07.03.01 Fixed Holidays ............................................................................................................ 16

10.08 Working Out of Classification .................................................................................................. 16

10.09 Special Project Pay .................................................................................................................... 17

10.10 Special Detail ............................................................................................................................ 17

10.11 Bilingual Pay ............................................................................................................................. 18

10.12 Education Incentive ................................................................................................................... 18

10.13 Longevity .................................................................................................................................. 19

10.14 Paramedic Program ................................................................................................................... 20

10.15 Emergency Medical Technician ................................................................................................ 20

10.16 Paramedic Premium Pay for Marine Safety Administrative Captain ........................................ 20

10.17 Rescue Swimmer Assignment and Compensation .................................................................... 20

10.18 Haz-Mat Technician Assignment and Compensation ............................................................... 20

10.19 On-Call Fire Investigator Assignment and Compensation ........................................................ 20 SECTION 11.00 - SICK LEAVE ................................................................................................................... 21

14.74 11.01 Definition .................................................................................................................................. 21

11.02 Accrual ...................................................................................................................................... 21

11.02.01 24-Hour Shift Personnel .................................................................................................. 21

11.02.02 40-Hour per Week Personnel .......................................................................................... 21

11.02.03 Paid Status ....................................................................................................................... 21

11.03 Limitations ................................................................................................................................ 22

11.04 Sick Leave Incentive ................................................................................................................. 22

11.04.01 56-Hour per Week Employees ........................................................................................ 22

11.04.02 40-Hour per Week Employees ........................................................................................ 22 SECTION 12.00 - VACATION ...................................................................................................................... 23

12.01 Accrual ...................................................................................................................................... 23

12.01.01 40-hour/week schedules .................................................................................................. 23

12.01.02 56-hours/week schedules ................................................................................................. 23

12.02 Illness During Vacation ............................................................................................................. 23

12.03 Union Leave Bank ..................................................................................................................... 23 SECTION 13.00 - BEREAVEMENT LEAVE ............................................................................................... 25

13.01 Marine Safety Officer Bereavement Leave .............................................................................. 26 SECTION 14.00 - LEAVES OF ABSENCE .................................................................................................. 26

14.01 Unpaid Leaves of Absence ........................................................................................................ 26

14.01.01 Medical or Personal Leave .............................................................................................. 26

14.01.02 Pregnancy Disability Leave ............................................................................................. 27

14.01.03 Family Leave ................................................................................................................... 27

14.01.04 Continuation of Insurance Benefits During Unpaid Leaves of Absence ......................... 29

14.02 Paid Leaves of Absence ............................................................................................................ 30

14.02.01 Paid Birth/Adoptive Leave .............................................................................................. 30

14.02.02 Military Leave ................................................................................................................. 30 SECTION 15.00 - UNIFORMS, LINENS, AND PERSONAL PROPERTY ................................................ 30

15.01 Uniforms ................................................................................................................................... 30

15.02 Linens ........................................................................................................................................ 31

15.03 Personal Property ...................................................................................................................... 31 SECTION 16.00 - MISCELLANEOUS PROVISIONS ................................................................................. 31

16.01 Additional Duties ...................................................................................................................... 31

16.02 Miscellaneous Employment ...................................................................................................... 31

14.75 16.03 Promotions ................................................................................................................................ 31

16.04 Layoff Policy & Procedure........................................................................................................ 32

16.04.01 Layoffs ............................................................................................................................. 32

16.04.02 Bumping .......................................................................................................................... 32

16.04.03 Notification ...................................................................................................................... 32

16.04.04 Reinstatement .................................................................................................................. 32

16.05 Consolidation Merger ................................................................................................................ 32

16.06 Tuition Reimbursement ............................................................................................................. 33

16.07 Captain/Engineer Promotional Exam ........................................................................................ 33 SECTION 17.00 - BENEFITS ........................................................................................................................ 33

17.01 Medical Plan/Flexible Benefits ................................................................................................. 33

17.01.01 Medical Waiver Benefit ................................................................................................... 33

17.01.02 Optional Benefits ............................................................................................................. 34

17.02 Dental Plan ................................................................................................................................ 34

17.03 Vision Insurance ........................................................................................................................ 35

17.04 Retired Health Program ............................................................................................................. 35

17.04.01 Retiree Medical/CalPERS Medical Plan ......................................................................... 35

17.04.02 Retiree Medical Incentive ................................................................................................ 35

17.04.03 Disability Retirement before Eligible Age for Service Retirement ................................. 35

17.05 Life Insurance ............................................................................................................................ 36

17.06 Long-Term Disability ................................................................................................................ 36

17.07 Principal Domestic Partners ...................................................................................................... 36

17.08 Retiree Medical Trust ................................................................................................................ 37 SECTION 18.00 - GRIEVANCE PROCEDURE ........................................................................................... 38

18.01 Purpose ...................................................................................................................................... 38

18.02 Definitions ................................................................................................................................. 38

18.03 Limitations ................................................................................................................................ 38

18.04 Consolidation ............................................................................................................................ 38

18.05 Procedures ................................................................................................................................. 39

18.05.01 Step I ................................................................................................................................ 39

18.05.02 Step II .............................................................................................................................. 39

18.05.03 Step III ............................................................................................................................. 39

18.05.04 Step IV ............................................................................................................................ 40

14.76 SECTION 19.00 - DISCIPLINARY APPEALS PROCEDURE .................................................................... 40

19.01 Definition .................................................................................................................................. 40

19.02 Pre-Action Procedure ................................................................................................................ 41

19.02.01 Step I ................................................................................................................................ 41

19.02.02 Step II .............................................................................................................................. 41

19.03 Post-Action Appeal ................................................................................................................... 41

19.03.01 Step III ............................................................................................................................. 41

19.03.02 Step IV ............................................................................................................................. 42

19.04 Firefighters Procedural Bill of Rights Act ................................................................................ 42 SECTION 20.00 - WRITTEN REPRIMANDS .............................................................................................. 42 SECTION 21.00 - SEVERABILITY .............................................................................................................. 43 SECTION 22.00 - RENEGOTIATIONS ........................................................................................................ 43

14.77 EXHIBIT A: Statement of Equal Employment Opportunity and Non-Discrimination Policy EXHIBIT B: Discrimination/Harassment Policy Implementation and Complaint Procedure EXHIBIT C: Section 7k Work Periods and Maximum Non-Overtime Hours EXHIBIT D: Santa Cruz Fire Department Policy & Procedures Manual Section 4-13 Vacation Selection Process for Shift Personnel (September 21, 2015) EXHIBIT E: Salary Schedule
EXHIBIT F: Respectful Workplace Conduct Policy
EXHIBIT G: California Firefighters Benefit Trust Joinder Agreement for Association

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MEMORANDUM OF UNDERSTANDING

CITY OF SANTA CRUZ AND
SANTA CRUZ FIREFIGHTERS, I.A.F.F. LOCAL 1716
September 217, 2022 – September June 3026, 20285
SECTION 1.00 - TERM
The term of this Memorandum of Understanding (Memorandum) shall commence September 217, 20252 and expire on September June 3026, 20285.

SECTION 2.00 - PREAMBLE
This Memorandum is entered into by the City of Santa Cruz (hereinafter referred to as the City) and the Santa Cruz Firefighters, I.A.F.F. Local 1716 (hereinafter referred to as the Union). For the purpose of this Memorandum, employee shall mean a regular, full-time Firefighter, Fire Engineer, Fire Captain, Deputy Fire Marshal, or Fire Prevention Inspector(s) and Marine Safety Officer(s). This Memorandum is subject to Sections 3500-3510 of the Government Code of the State of California, the City of Santa Cruz Charter and Municipal Code, and the Santa Cruz Personnel Rules and Regulations.

SECTION 3.00 - NO ABROGATION OF RIGHTS
The parties acknowledge that the City’s responsibilities and rights as indicated in a) Article XI of the Charter, b) current Article 1, Section 1, (Appendix A) of the City’s Personnel Rules and Regulations, and c) all applicable State or Municipal laws are neither abrogated nor made subject to the meet and confer process by approval of the terms of this Memorandum. The parties further acknowledge the rights of employees are neither abrogated nor diminished by the adoption of this Memorandum.

SECTION 4.00 - UNION/MANAGEMENT RELATIONS
A. The Union and management recognize their obligation to provide services of the highest quality and efficiency. To this end, the City and the Union affirm their joint responsibility to endeavor to promote harmonious labor/management relations.

B. The City intends to meet its obligation under the California Occupational Safety and Health Act and shall adopt and use safeguards, devices and practices, reasonably adequate to render employment safe. The Union agrees to assist the City by working in concert with management to encourage employees to work safely.

4.01 ASSOCIATION USE OF CITY E-MAIL SYSTEM
The Union may be permitted to use City e-mail for the following purposes:
o Notice of Union meetings and agendas
o Notice of Union sponsored events
o Notice of Union elections

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o Reports from Union committees
o Rulings and discussion of Union policies
o Union newsletters
o Other official Union business as may be necessary and which conforms to the guidelines outlined below.

No notice or announcement which contains defamatory statements about the City, including any City department, any City official, or any City employee(s) shall be transmitted by City email. The City reserves the right to refuse to allow notices to be sent through the City’s e-mail system that interfere with the Department’s operational needs, workflow, or mission.

Any violation of this section shall entitle the City to cancel its provisions and revoke the Union’s privilege to use the City’s e-mail system pursuant to this section.

The parties agree to discuss any conflicts that may arise.

SECTION 5.00 - UNION RECOGNITION/AGENCY SHOP

5.01 RECOGNITION
Pursuant to the Meyer-Milias-Brown Act and the City’s Personnel Rules and Regulations, the Union is certified as the recognized employee organization representing regular, full-time Firefighters, Fire Engineers, Fire Captains, Deputy Fire Marshal, and Fire Prevention Inspector(s), and Marine Safety Officer(s).

5.02 PAYROLL DEDUCTION

5.02.01 PAYROLL DEDUCTIONS
The City shall deduct Union membership dues and any other mutually agreed upon payroll deductions, to the extent permitted by law, from the monthly pay of each member employee. The Union will provide the City with information regarding the amount of dues deductions and the list of Union member employees who have affirmatively consented to or authorized dues deductions.

The City shall remit the deducted dues and any other mutually agreed payroll deduction, to the extent permitted by law, to the Union as soon as possible after the deduction.

The City agrees to direct each member employee to the Union with regard to any questions or concerns related to membership dues or any other mutually agreed payroll deduction, to the extent permitted by law.

The Union is responsible for providing the City with timely information regarding changes to member employees’ dues and any other lawful union-related payroll deduction.

5.02.02 UNION’S CERTIFICATION

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The City shall make payroll deductions in reliance on the Union’s certification certifying that the Union has and will maintain an authorization, signed by each member employee who affirmatively consents to pay Union membership dues. Similarly, The City shall only cancel or modify any membership dues or any other mutually agreed payroll deduction, to the extent permitted by law, for any member employees in reliance on the information provided by the Union.

The City shall not request the Union to provide a copy of any member employees’ authorization unless a dispute arises about the existence or terms of the authorization.

5.03 INDEMNIFICATION
The Union shall indemnify, defend, protect and hold harmless the City and its elected and appointed officials, officers, employees, officers and agents (collectively hereafter the “Indemnitees”) from and against any and all claims, liabilities, losses, damages, fines, penalties, claims, demands, suits, actions, causes of action, judgments, costs and expenses (including, but not limited to, reasonable attorneys’ fees and court costs) arising from the application of any provisions under Section 5.02, including, but not limited to, any claims made by any member employees for the membership dues deductions the City made in reliance on the Union’s certification, and any claims made by any member employees for any deduction cancellation or modification the City made in reliance on the information provided by the Union.

In the event any such action or proceeding is brought against the City by reason of any such claim, the Union, upon notice from the City, covenants to defend such action or proceeding by counsel reasonably satisfactory to the City. Further, the Union agrees to indemnify and hold harmless the Indemnitees for any loss or damage arising from the Union’s actions or inactions under Section 5.02.

5.04 UNION NOTIFICATION
Except in cases of bona fide emergencies, the Union shall be given seven (7) working days advance written notification of any ordinance, rule, resolution, or regulation relating to matters within the scope of representation proposed to be adopted by the City Council, or management, and shall be given the opportunity to meet and confer with the City representative prior to its adoption.

SECTION 6.00 - FULL UNDERSTANDING, MODIFICATION, WAIVER This agreement, plus any written departmental rules or regulations sets forth the full and entire understanding of the parties regarding the matters set forth herein and any other prior or existing understanding or agreements by the parties, whether formal or informal, regarding any such matters are hereby superseded or terminated in their entirety.

It is agreed and understood that each party hereto voluntarily and unqualifiedly waives its right to

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negotiate and agrees that the other party shall not be required to negotiate, with respect to any matter covered herein.

It is further agreed and understood that, except in cases of emergency, the City shall not implement any changes to any matter within scope, as defined by the Meyers-Milias-Brown Act, as amended, not covered herein without first having met and conferred with the Union. For purposes of this Agreement, emergency means any sudden and unforeseeable incident or occurrence. Changes implemented pursuant to this paragraph shall only be in effect for the duration of the emergency causing the change.

No agreement, alteration, understanding, variation, waiver, or modification of any of the terms or provisions contained herein shall in any manner be binding upon the parties hereto unless made and executed in writing by all parties hereto and, if required, approved by the City and ratified by the membership of the Union.

The waiver of any breach of any term or condition of this Agreement by either party shall not constitute a precedent in the future enforcement of all its terms and provisions.

SECTION 7.00 - NO DISCRIMINATION
The City and the Union agree to adhere to the City Council policies pertaining to equal employment opportunity and discriminatory harassment as listed in Exhibits A & B, as well as applicable Federal and State discrimination laws.

SECTION 8.00 - WORK WEEK/SHIFTS/ASSIGNMENTS

8.01 56 HOUR/WEEK SCHEDULE

8.01.01 WORK WEEK
The work week shall average 56 hours.

8.01.02 SHIFTS
On-duty shifts shall commence at the hour of 7:00 a.m. and shall be completed at 7:00 a.m. the following day.

8.01.03 TIME RELEASED
Employees shall not be released from duty at the end of a shift until the employee is relieved by a shift-employee replacing the position then held by such employee unless otherwise directed by management personnel.

8.02 40 HOUR/WEEK SCHEDULE

8.02.01 WORK WEEK
The work week for employees assigned to a 40-hour/week schedule shall typically consist of five consecutive days totaling 40 hours. An alternate work schedule (such as a 4-10 plan) may be assigned by the Fire Chief.

14.82 5

8.02.02 SCHEDULE
The Fire Chief shall assign starting and quitting times to these employees to meet operational needs. Affected employees will be notified five (5) working days in advance of changes in work schedules. This shall not preclude the City from effecting schedule changes due to operational needs, overtime or emergency work.

8.03 JOB ASSIGNMENT

8.03.01 FIRE PREVENTION ASSIGNMENT
An employee may be temporarily assigned from a fire suppression position to a fire prevention position. Such a temporary assignment may be no longer than six (6) months in duration and an assignment may not occur more than once in a two (2) year period.

Assignment duration may exceed a six (6) month period in cases of bona fide medical/disability condition of employee or upon mutual consent.

8.03.02 MARINE RESCUE CAPTAIN ASSIGNMENT
A Captain may be temporarily assigned from a fire suppression position to the Marine Rescue Division. Captains assigned to the Marine Rescue Program will be allowed to work an alternate 40 hour per week work schedule. This assignment will not exclude this employee from overtime shift work in accordance with Fire Department policies, procedures, and practices. The Marine Rescue Captain Assignment will be in accordance with the parameters set forth in the Santa Cruz City Fire Department Shift and Station Bidding Procedure.

8.04 STAFFING
Staffing will be in accordance with Policy and Procedure Manual, Article 6, Section #6-5 Equipment Staffing.

8.05 SHIFT AND STATION BIDDING
Shift and Station bidding will be in accordance with the Department’s “Shift and Station Bidding Procedure.”

8.06 VACANCY BIDDING
Vacancy bidding will be in accordance with Policy and Procedure Manual, Article 4, Section #4-12 Vacancy Bidding.

8.07 MARINE SAFETY OFFICER LUNCH PERIOD
The Marine Safety Officer shall be entitled to and expected to take an uninterrupted, unpaid lunch period of a minimum of thirty (30) minutes at or about the mid-point of their workday.

Supervisors may occasionally approve flexible scheduling of lunch periods for individual employees. Regular schedules that do not provide the required lunch period at or about the mid-point of the workday will not be allowed.

8.08 MARINE SAFETY OFFICER SHIFT DIFFERENTIAL
The Marine Safety Officer who is required and authorized by management to work, and

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actually works, a regularly scheduled shift at least four hours or more of which fall between the hours of 6:00 p.m. and 6:00 a.m. shall be paid a shift differential of ninety cents ($.90) per hour or five percent (5%), whichever is greater, for each hour worked within the shift differential period of 6:00 p.m. and 6:00 a.m.

Shift differential shall not apply to:
a. Paid leave hours, including vacation, sick leave, holidays, and other paid leaves provided in Section 17.01.

Hours that are worked between 6:00pm and 6:00am as a result of call-back, duty assignment, or overtime.

SECTION 9.00 - PERSONNEL ACTION

9.01 PERFORMANCE EVALUATIONS
It is compulsory that all regular employees receive an annual written performance evaluation from their supervisor. All original appointments and newly hired employees will be evaluated as follows:

Regular employees will be evaluated annually on their merit review date.

Employees Hired on or after 12/1/18
 First (1st) evaluation: at completion of six (6) months of regular service following completion of Academy
 Second (2nd) evaluation: at completion of probation, twelve (12) months of regular service following completion of Academy
 Third (3rd) evaluation: at completion of 18 months of regular service following completion of Academy.

Subsequently, a performance evaluation will be conducted twelve (12) months after the date of the third (3rd) evaluation; this date becomes the employee’s annual evaluation date.

9.02 PROBATION

9.02.01 PROBATIONARY PERIOD
A. All original appointments (newly hired Firefighters) shall be subject to a probationary period that begins on the first day of regular City employment and ends twelve (12) months after the successful completion of the Fire Academy. All Fire Inspectors and Marine Safety Officers shall be subject to a twelve (12) month probationary period that begins on the first day of regular City employment.

B. All promotional and re-hire appointments shall be subject to a probationary period of twelve (12) months from the date of promotion or the date of re-hire.

Any time spent by a probationary employee on unpaid status shall not be counted as

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qualifying service toward completion of the probationary period.

9.02.02 OBJECTIVE OF PROBATIONARY PERIOD
The probationary period shall be regarded as part of the selection process and shall be utilized for training the new employee on work assignments and standards, and observing and evaluating the employee’s performance.

9.02.03 REJECTION OF PROBATIONARY EMPLOYEE
During the probation period, an employee may be rejected at any time by the appointing authority without the right of appeal. Notification of rejection shall be served to the probationary employee in writing. Any promoted employee who is rejected during the probationary period shall be reinstated to the position from which promotion occurred; unless the rejection is due to discharge in which case no reinstatement shall occur.

9.02.04 EXTENSION OF PROBATION
All efforts will be made to sufficiently evaluate the probationary employee during the assigned period, which includes time spent in the Fire Academy. An extension of the probationary period may, however, be recommended by the appointing authority when good cause exists. Such extensions shall be for a specific period of time not to exceed three (3) months.

9.03 PERSONNEL FILES
There shall be only one official personnel file which shall be maintained in the City’s Human Resources Department. Employees shall have the right to review their personnel files or authorize, in writing, review by their representatives. No adverse material will be placed in an employee’s personnel file without prior notice and a copy given to the employee. Employees may, within thirty (30) days of receipt of these, cause to be placed in their personnel files responses to adverse material inserted therein.

SECTION 10.00 - PAY RATES AND PRACTICES

10.01 SALARY STEPS
The classifications in the unit shall be assigned salary ranges that increase by 6% between steps.

10.01.01 SALARY RATES UPON APPOINTMENT
New employees shall be hired at the first step of the classification’s salary range; unless a higher starting step is recommended by the Fire Chief, based on the employee’s advanced qualifications for the position and such recommendation is approved by the Chief People Officer (Director of Human Resources) and City Manager.

Promoted employees shall receive a minimum six percent (6%) increase. If such increase does not result in them being placed at least at the first step of the new classification’s salary range they will be placed at the first step of the new classification’s salary range. If such increase results in them being placed within the salary range of the new classification but between existing steps, they will be placed at the next higher step in the new range.

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10.01.02 ADVANCEMENT WITHIN THE RANGE
A. Advancement within a classification’s salary range shall normally be granted on the employee’s scheduled merit review date. Such advancements shall be based solely on meritorious job performance as documented by a satisfactory performance evaluation and successful completion of department required training standards.

B. Merit increase dates are aligned with evaluation dates. Newly hired Firefighters are eligible for their first merit increase at the end of their first (6) months of regular employment with the City following completion of the Academy. Newly hired Firefighters are eligible for their second merit increase after completion of 18 months of regular employment with the City following completion of the Academy.

The employee shall be eligible for subsequent merit increases after each full year on paid status from the last merit review date, continuing until the employee is promoted or the top of the salary range is attained.

Newly hired Fire Inspectors and Marine Safety Officers are eligible for their first merit increase at the end of their first six (6) months of regular employment with the City. Newly hired Fire Inspectors and Marine Safety Officers are eligible for their second merit increase after completion of eighteen (18) months of regular employment with the City. The employee shall be eligible for subsequent merit increases after each full year on paid status from the last merit review date, continuing until the employee is promoted or the top of the salary range is attained.

C. Merit increases shall normally be from one pay step to the next higher pay step.

Increases of greater than one (1) step may, however, be recommended by the Fire Chief when exceptional performance has been demonstrated by the employee. Such step increases must be approved by the City Manager.

D. A merit increase may be denied by the Fire Chief when an employee’s job performance falls below the acceptable work standards for the duties assigned. The Fire Chief may, in such a case, recommend that the employee’s work performance be reviewed again at a specific time before the next review date. If a merit increase is granted at that time, the employee’s original review date shall not change and she/he shall be eligible for the next merit increase after one (1) year on a paid status from the original review date.

E. An employee’s scheduled merit review date shall be adjusted for any time spent by the employee on unpaid status.

F. Upon receipt of satisfactory annual evaluation, the effective date for a merit increase shall be the first day of the pay period which includes the employee’s merit review date.

10.02 SALARY
 Effective the pay period that begins on September 17, 2022, the salary for all bargaining unit members shall be increased by an additional three-point forty-three percent (3.43%).

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 Effective the pay period that begins on September 16, 2023, the salary for all bargaining unit members shall be increased by an additional three percent (3%).  Effective the pay period that begins on September 14, 2024, the salary for all bargaining unit members shall be increased by an additional five percent (5%).  Effective September 17, 2022, the salary for the Marine Safety Officer shall be adjusted to be reduced from 10 steps (A-J) to 8 steps (A-H), with 6% between each step. The previous step I in the Supervisory Unit, will now become Step G of the Firefighters Unit.
 Effective the pay period that begins on September 27, 2025, or the pay period when Council approves the successor MOU in open session, whichever is later, the salary for all bargaining unit members shall be increased by an additional three percent (3%).  Effective the pay period that begins on July 4, 2026, the salary for all bargaining unit members shall be increased by an additional three percent (3%).  Effective the pay period that begins on July 3, 2027, the salary for all bargaining unit members shall be increased by an additional three percent (3%).

10.03 P.E.R.S.

10.03.01 EMPLOYEES HIRED ON OR BEFORE SEPTEMBER 2, 2011 (TIER I) This section 10.03.01 shall apply to employees hired on or before September 2, 2011, who are contributing members of CalPERS.

A. Final Compensation Based on the Single Highest Year
For purposes of determining a retirement benefit, final compensation for employees covered by this section 10.03.01 shall be based on the single highest year, defined by CalPERS as any consecutive one-year period with the highest average pay rate and special compensation.

B. 3.0% @ 50 Pension Formula
The 3.0% @ 50 pension formula shall be available to all employees covered by this section 10.03.01 who are contributing members of CalPERS. Additionally, the City provides the Pre-Retirement Optional Settlement 2W Death Benefit to employees covered by this section 10.03.01.

C. Required Employee Contribution
Members covered by this section 10.03.01 will contribute the employee contribution amount established by CalPERS for the 3.0% @ 50 pension formula. The required contribution amount was 9.0% as of the date of this MOU.

D. Additional Required Employee Contribution
In addition to the required employee contribution, starting with the pay period

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beginning September 26, 2015 members covered by this section 10.03.01 will contribute an additional 3.0% (total 12.00%).

10.03.02 EMPLOYEES HIRED ON OR AFTER SEPTEMBER 3, 2011 (TIER II) This section 10.03.02 shall apply to employees hired on or after September 3, 2011 and prior to January 1, 2013 who are contributing members of CalPERS.

A. Final Compensation Based on Three Year Average
For purposes of determining a retirement benefit, final compensation for employees covered by this section 10.03.02 shall be based on the employee’s highest three year average, defined by CalPERS as any consecutive three-year period with the highest average pay rate and special compensation.

B. 3.0% @ 55 Pension Formula
The 3.0% @ 55 pension formula shall be available to all employees covered by this section 10.03.02 who are contributing members of CalPERS. Additionally, the City provides the Pre-Retirement Optional Settlement 2W Death Benefit to employees covered by this section 10.03.02.

C. Required Employee Contribution
Members covered by this section 10.03.02 will contribute the employee contribution amount established by CalPERS for the 3.0% @ 55 pension formula. The required contribution amount was 9.0% as of the date of this MOU.

D. Additional Required Employee Contribution
In addition to the required employee contribution, starting with the pay period beginning September 26, 2015 members covered by this section 10.03.02 will contribute an additional 3.0% (total 12.00%).

10.03.03 EMPLOYEES HIRED ON OR AFTER JANUARY 1, 2013 (TIER III) This section 10.03.03 shall apply to employees hired on or after January 1, 2013 who are contributing members of CalPERS.

A. Final Compensation Based on Three Year Average
For purposes of determining a retirement benefit, final compensation for employees covered by this section 10.03.03 shall be based on the employee’s highest three year average, defined by CalPERS as any consecutive three-year period with the highest average pay rate and special compensation.

B. 2.7% @ 57 Pension Formula
The 2.7% @ 57 pension formula shall be available to all employees covered by this section 10.03.03 who are contributing new members of CalPERS. Additionally, the City provides the Pre-Retirement Optional Settlement 2W Death Benefit to employees covered by this section 10.03.03.

Employees covered by this section 10.03.03 who are classic members as defined by CalPERS may be eligible for a different pension formula.

C. Required Employee Contribution

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Members covered by this section 10.03.03 will contribute the employee contribution amount established by CalPERS for their 2.7% at 57 pension formula. The required contribution amount for the 2.7% @ 57 was 12.75% as of the date of this MOU is

12.75%.

In the event employee contribution rates are adjusted by CalPERS during the term of this MOU, the employee contribution will be recalculated based upon the updated required employee contribution rate established by CalPERS.

D. Additional Required Employee Contribution
In addition to the required employee contribution, starting with the pay period beginning July 6, 2013 members covered by this section 10.03.03 will contribute an additional 3.0% (total 15.75%).

10.03.04 RETIREMENT, ALL EMPLOYEES
The City will maintain the IRS 414(h)(2) provision (for tax purposes only) allowing the employee to defer State and Federal income taxes on their CalPERS contributions.

10.03.05 SICK LEAVE CONVERSION
The City’s contract with CalPERS includes the service credit for unused sick leave (Section 20965).

The Parties agree that the City and Local 1716 will share the cost of will take all administrative steps necessary to of conducting an actuarial study to allow employees the choice of selecting the CalPERS service credit option for employees retiring with at least twenty years of regular service and the ability to also elect to convert a maximum of 1,500 hours of their accrued sick leave (banked and unbanked) in 100 hour increments to an additional 1% contribution by the City towards the cost of their retiree medical benefits as defined by Sections 17.04.01 (Retiree Medical Plan) and 17.04.02 (Retiree Medical Incentive) of this memorandum. For example, the maximum conversion of 1,500 hours would equal a 15% increase in the City’s contribution towards a retiree medical plan for a maximum 90% contribution. All restrictions and requirements of sections 17.04.01 and 17.04.02 apply to this sick leave incentive option including, but not limited to eligibility and plan availability.

10.04 OVERTIME

10.04.01 56-HOUR WORK WEEK
Overtime is additional time worked in excess of an employee’s regular work shift. Overtime shall be paid at one and one-half (1 1/2) times the base rate of pay.

FLSA overtime is defined as all hours required by Management and actually worked by the employee, in excess of the maximum non-overtime hours allowed in the work period. (See Exhibit C for a listing of work periods and the maximum non-overtime hours for each work period.)
FLSA overtime shall be compensated in money at one and one-half (1½) times the employee’s regular rate. The regular rate shall be as defined in the FLSA.

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The City has the right to decide whether or not the Section 7 (k) exemption, as provided by the FLSA, shall apply. The City also has the right to select the work period, as defined by the FLSA.

Firefighters, Fire Engineers, Fire Captains, Fire Inspectors and Marine Safety Officers may choose, in lieu of overtime payment, to have overtime hours worked converted to a compensatory time bank at the rate of one and one-half time the hours worked. Employees’ compensatory time bank shall not exceed one-hundred-twenty (120) hours.

The use of compensatory time off shall be in accordance with Fire department policy 4-13 Vacation Selection Process for Shift Personnel (see attached Exhibit D).

Employees may receive payment for all accrued and unused compensatory time at the time of employment separation or promotion from a job classification represented by IAFF Local 1716.

10.04.02 40-HOUR WORK WEEK
Overtime shall be defined as all management authorized hours in a paid status in excess of forty (40) hours per week, which are contiguous with the employee’s regular work schedule, excluding voluntary training. Overtime shall be computed at the rate of one a one-half (1½) times the base hourly rate or may be converted to compensatory time off at the rate of one and one-half (1½) times the hours worked.

Employees covered by the Fair Labor Standards Act shall be entitled to FLSA overtime which is defined as all hours required by management and actually worked by the employee in excess of forty (40) hours in a work period as defined by the City. FLSA overtime is compensated in pay or compensatory time off at one and one-half (1½) times the employee’s regular rate of pay. The regular rate shall be defined in the FLSA.

A forty (40) hour employee with accrued compensatory time off shall be permitted to use such time within a reasonable period after making the request unless such time off will unduly disrupt the operations of the department. Compensatory time off shall not be allowed to accumulate beyond one hundred fifty (150) hours at any given time.

Employees may receive payment for all accrued and unused compensatory time at the time of employment separation or promotion from a job classification represented by IAFF Local 1716.

10.05 MARINE SAFETY OFFICER CALPERS
The City plans for a re-opener to negotiate regarding safety retirement during the term of the MOU after an actuarial analysis from Cal-PERS is received by the City.

10.06 CALL BACK
Call back is defined as any time an employee is directed to work and actually works for a period not contiguous with their regular shift. Employees so directed shall be compensated at their applicable overtime rate of pay for a minimum of two (2) hours (see Section 10.04 to determine applicable overtime rate). Up to one-half (½) hour will be paid for travel on emergency

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callbacks. With the exclusion of Marine Safety Officer, who will be compensated at their applicable overtime rate of pay for a minimum of two (2) hours (see Section 10.04 to determine applicable overtime rate). No compensation will be made for travel on emergency callbacks.

Notwithstanding the foregoing, any employee called back to work by reason of a shifttrade between employees within the bargaining unit shall not receive the premium set forth herein.

10.06.01 MARINE SAFETY OFFICER CALL-BACK
Call-back work is defined as work required by management of an employee who, following completion of the employee’s work day or work week and departure from the employee’s work site, is unexpectedly ordered to report back to duty to perform necessary work.

10.06.01.01 CALLBACK BY PHONE OR COMPUTER
If the Marine Safety Officer is able to respond by phone or computer and is not required to report to the worksite, then:

A. For the first response of the day, a minimum of thirty (30) minutes (0.5 hours) of overtime will be paid for actual overtime worked of less than thirty (30) minutes.

Thereafter, a minimum of fifteen (15) minutes (0.25 hours) of overtime will be paid for actual overtime worked of less than fifteen (15) minutes.

B. An additional minimum will not be paid if an employee is required to respond to additional call(s) and the time and duration of the response is within the previous minimum.

10.06.01.02 CALLBACK TO WORKSITE
A. All call-back hours shall be paid at the overtime rate. A minimum of two (2) hours of overtime compensation shall be paid for all call-back periods of less than two (2) hours.

B. Hours worked shall include reasonable travel time to work. Return travel time shall not be included within time worked.

C. If a Marine Safety Officer who was called back to work and has completed their assignment and left work is again called back to work, they will not receive another minimum if the time of return is within the previous call-back minimum.

D. Marine Safety Officers who are required to respond to the worksite will be provided mileage compensation, at the federal rate, for the use of their personal vehicles.

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10.07 HOLIDAYS

10.07.01 56-HOUR PER WEEK EMPLOYEES
This is additional compensation for employees who are normally required to work on an approved holiday because they work in positions that require scheduled staffing without regard to holidays as identified in Section 10.07.03. Employees shall accrue holiday pay up to a maximum of two-hundred and eighty-eight (288) hours per calendar year, at a rate of

11.08 hours per pay period. receive a bank of two-hundred (200) hours of holiday pay on the first day of the pay period that includes July 1 of each year. This amount will be pro- rated for new hires.

Pursuant to Fire Department policy 4-13 Vacation Selection Process for Shift Personnel (see attached Exhibit D), employees may use accrued holiday leave. Alternately, holidays shall be paid at a straight time rate. If paid, a separate check shall be issued for 96 hours (less any hours used to date in the fiscal year) on the first pay date in December and again for the remaining balance of hours on the second pay date in June.

Upon separation, employees shall receive the value of their unused accrued holiday leave.

Accumulation of holidays shall not exceed two-hundred and eighty-eight (28800) hours.

10.07.02 40-HOUR PER WEEK EMPLOYEES
This is additional compensation for employees who are normally required to work on approved holiday because they work in positions that require scheduled staffing without regard to holidays as identified in Section 10.07.03. Employees shall receive a bank ofaccrue holiday pay up to a maximum of ninety-six (96) hours per calendar year, at a rate of 3.69 hours per pay period. of holiday pay on the first day of the pay period that includes July 1 of each year. During fiscal years when Christmas and New Year’s Day are on or between Tuesday through Saturday, employees shall be credited with ninety-six (96) hours. In fiscal years where Christmas and New Year’s Day are on a Sunday or Monday, employees shall be credited with eighty-eight (88) hours. This amount will be prorated for new hires.

Pursuant to City policy, employees may use accrued holiday leave. Alternately, holidays shall be paid at the employees base hourly rate. Any accrued and unused holiday pay shall be issued on the first pay period in June and again for all accrued and unused hours on the first pay period in December. if paid, a separate check shall be issued for up to 40 hours in years we do not have the Christmas Eve or New Year’s Eve half day holidays, or 44 hours in the years with the half-day holidays (less any hours used to-date in the fiscal year) on the first pay date in December and again for the remaining balance of hours on the second pay date in June.

Upon separation, employees shall receive the value of their unused accrued holiday leave.

Accumulation of holidays shall not exceed ninety-six (96) hours.

In addition, 40-hour per week employees shall accrue up to twenty-four (24) hours of floating holiday per fiscal year. Floating Holiday accrual will be on a monthly basis. Full-time employees shall accrue floating holiday at the rate of two (2) hours per month. Part-time

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employees shall accrue floating holiday on a pro-rated basis, given the ratio of their budgeted work schedule to full-time (e.g., all employees working in a 20 hour/week position shall receive one (1) hour of floating holiday each month).

Floating holidays may only be taken with prior approval. Upon separation, employees shall receive the value of their unused accrued floating holiday.

Accumulation of floating holidays shall not exceed twenty-four (24) hours.

10.07.03 MARINE SAFETY OFFICER HOLIDAYS
Part-time employees shall receive the following holiday benefits on a prorated basis, given the ratio of their budgeted work schedule to full time.

Marine Safety Officers will accrue paid holiday time the pay period before the pay period with the holiday. The accrual will be in the amount listed for the holidays listed in Section

10.07.03.01 (Fixed Holidays) of this MOU. Employees must be in paid status for at least fifty percent (50%) of the pay period to accrue paid holiday time.

Marine Safety Officers are required to use holiday leave on holidays they do not work, even if they are on leave or are sick. The use of vacation, compensatory time, excess holiday, or other leave time on holidays is only allowed to make up the difference between the hours of holiday granted and the amount of hours the employee is scheduled to work.

Marine Safety Officers are not allowed to use unpaid closure time on holidays during the City’s holiday closure.

10.07.03.01 FIXED HOLIDAYS
Employees within the unit shall have the following specific holidays with pay:

Eight (8) 8 Hour Holidays
Twelve (12) 24 Hour Holidays for 56-Hour per Week Employees Twelve (12) 8 Hour Holidays for 40-Hour per Week Employees  New Year’s Day
 Martin Luther King’s Birthday
 Cesar Chavez
 Presidents’ Day
 Memorial Day
 Juneteenth
 Independence Day
 Labor Day
 Veterans’ Day
 Thanksgiving Day
 Friday after Thanksgiving
 Christmas Day
Four (4) 4 Hour Holidays
The last four (4) hours of the work shift are Holiday hours for Christmas Eve

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(if Christmas is on a Tuesday–Saturday)
The last four (4) hours of the work shift are Holiday hours for New Year’s Eve (if New Year’s Day is on a Tuesday–Saturday)
Except as provided for on Christmas Eve and New Year’s Eve, when a holiday falls on Sunday, the following Monday shall be observed. When a holiday falls on Saturday, the proceeding Friday shall be observed.

10.08 WORKING OUT OF CLASSIFICATION
The term “working out of classification” is defined as a management-authorized assignment on a temporary basis of an employee in a lower classification to a b u d g e t e d higher classification. Pay for working “out of classification” shall be as follows:

1. Employees so assigned will receive acting pay beginning the first day or shift of the assignment.

2. Acting Battalion Chief, Acting Fire Engineer, and Acting Captain shall be made for a minimum of six hours.

3. Acting Battalion Chief, Acting Fire Engineer, and Acting Captain, shall at a minimum, be paid a rate equal to a formal promotional assignment or 6% above the base rate.

In accordance with the Public Employees’ Pension Reform Act (PEPRA), working out of classification pay is not pensionable compensation for employees who are “New Members” of CalPERS, as defined by California Government Code Section 7522.04(f).

10.09 SPECIAL PROJECT PAY
A special project is a specific and unique assignment which exceeds the normally assigned duties and responsibilities of the employee’s job classification. Special projects typically require specialized knowledge, skills, education, training, abilities and/or responsibilities outside the scope of those normally required of the respective job classification.

Special projects may be employee initiated, or developed by the department. When appropriate, the department will post available special project assignments. All qualified employees may request an available special project. The Fire Chief or their designee shall select the most qualified and/or appropriate candidate from amongst those requesting the assignment.

Employees proposing a particular special project may be given preferential consideration during the selection process for that respective special project.

The Fire Chief may assign up to ten (10) employees to special projects. Such assignments shall be made in writing and shall specifically state the expected outcome. The Fire Chief and the assigned employee shall discuss the project and mutually decide progress milestones and objectives. If mutual agreement cannot be reached, then the progress milestones and objectives shall be determined by the Fire Chief. Special projects may be terminated at the discretion of the Fire Chief.

An employee, so assigned by the Chief, shall receive 2.5% of their base pay while actually

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working on such project.

Special project pay does not affect, nor is it included in sick and vacation or other leaves of absence. These assignments will be included in PERS computations.

A listing of all current special projects and the respective employee(s) assigned each project, shall be maintained in the Fire Administration office. Said listing shall be made available to the Union and any employee upon request.

10.10 SPECIAL DETAIL
Special detail is defined as an assignment in which the City is reimbursed by an event’s sponsor, through the Finance Department, for fire services. Firefighters, Fire Engineers, Fire Captains, Fire Inspectors and Marine Safety Officers assigned to cover special detail will be paid a minimum of four (4) hours overtime at one and one-half (1½) times their hourly rate.

10.11 BILINGUAL PAY
The City shall provide payment of five percent (5%) of base salary when the City certifies an employee as qualified and the position requires the use of bilingual language skills with the exception of the Marine Safety Officer who will receive .30/hour. This provision does not apply to the City translator.

10.12 EDUCATION INCENTIVE
Employees will be eligible for one of the following education incentives when the listed requirements have been met for that level and a request for the incentive has been sent to the Fire Chief for review and approval:

I. Two percent (2%) of base salary (one of the following):
a. AA/AS Degree
b. Sixty (60) units of college credit and actively pursuing job related college work c. State Fire Marshal’s Company Officer Certification or Fire Officer Certification d. Successful completion of the following courses:
i. Company Officer 2a: Human Resource Management
ii. Company Officer 2b: General Administrative Functions iii. Company Officer 2c: Fire Inspections and Investigations iv. Company Officer 2d: All Risk Command Operations
v. Company Officer 2e: Wildland Incident Operations
vi. Instructor I: Instructor Methodology
vii. Instructor II: Instructor Development
viii. Instructor III: Instructor Program Management
ix. S-290: Intermediate Fire Behavior (classroom version) x. S-231: Engine Boss
II. Four percent (4%) of base salary (one of the following):
a. BA/BS Degree
b. State Fire Marshal’s Chief Fire Officer Certification or Chief Officer Certification c. Successful completion of the following courses:

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i. Chief Fire Officer 3a: Human Resource Management
ii. Chief Fire Officer 3b: Budget & Fiscal Responsibilities iii. Chief Fire Officer 3c: General Administration Functions iv. Chief Fire Officer 3d: Emergency Service Delivery Responsibilities v. ICS-300: Intermediate ICS for Expanding Incidents (classroom version) vi. S-404: Safety Officer
vii. S-330: Strike Team Leader
viii. S-234: Ignition Operations
ix. S-270: Basic Air Operations
x. L-380: Fireline Leadership
xi. L-336: Tactical Decision Making in Wildland Firefighting Course equivalencies for required courses are acceptable from recognized training organizations like, but not limited to, State Fire Marshal, CalFire, National Fire Academy, Federal Emergency Management Agency, Emergency Management Institute, US Forest Service, California Specialized Training Institute, National Wildfire Coordinating Group, and the International Association of Firefighters.

If the above listed courses are no longer offered, an equivalent course will be substituted upon mutual agreement of the Fire Chief and Local 1716 President.

10.13 LONGEVITY
Upon completion of six (6) years of continuous regular service, employees shall receive a two-and-one-half percent (2½%) longevity pay increase.

Upon completion of ten (10) years of continuous regular service, employees shall receive an additional two percent (2%) longevity pay increase for a total of four-and-one-half percent (4.5%).

Upon completion of fifteen (15) years of continuous regular service, employees shall receive an additional two percent (2%) longevity pay increase for a total of six-and-one-half percent (6.5%).

Upon completion of seventeen (17) years of continuous regular service, employees shall receive an additional two percent (2%) longevity pay increase for a total of eight-and-onehalf percent (8.5%).

Upon completion of twenty (20) years of continuous regular service, employees shall receive an additional two percent (2%) longevity pay increase for a total of ten-and-onehalf percent (10.5%).

Upon completion of twenty-two (22) years of continuous regular service, employees shall receive an additional two percent (2%) longevity pay increase for total of twelve-and-onehalf percent (12.5%) Effective July 3, 2027, longevity pay will be based on the employee’s years of service from the date of hire. Longevity pay will be part of the employee's base pay.

Upon completion of six (6) years of continuous regular service, employees shall receive a

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two-and-one-half percent (2.5%) longevity pay increase.

Upon completion of ten (10) years of continuous regular service, employees shall receive an additional four percent (4%) longevity pay increase for a total of six-and-one-half percent (6.5%).

Upon completion of fifteen (15) years of continuous regular service, employees shall receive an additional two percent (2%) longevity pay increase for a total of eight-and-onehalf percent (8.5%).

Upon completion of twenty (20) years of continuous regular service, employees shall receive an additional four percent (4%) longevity pay increase for a total of twelve-andone-half percent (12.5%).

10.14 PARAMEDIC PROGRAM
A. Each employee who is licensed by the State of California, accredited by the County of Santa Cruz as a paramedic, and assigned to front-line or support duty shall be eligible for paramedic pay with the exception of the Marine Safety Officer.

B. Paramedic pay shall be an amount equal to 10% of top step Firefighter salary.

C. The department will make every effort to ensure continuing education will be provided on duty. However, subject to approval of the Fire Chief, continuing education may be provided off duty, compensated by approved overtime or compensatory time off.

D. Support medic pay shall be an amount equal to seven percent (7%) of base salary.

10.15 EMERGENCY MEDICAL TECHNICIAN
Each employee who is certified in the County of Santa Cruz as an Emergency Medical Technician-D, with the exception of the Marine Safety Officer, shall be compensated an additional 3% of employee’s base salary. (EMT-D pay will not be payable to those employees receiving paramedic pay.)

10.16 PARAMEDIC PREMIUM PAY FOR MARINE SAFETY ADMINISTRATIVE CAPTAIN Paramedic premium pay for the Marine Safety Administrative Fire Captain will be ten percent (10%) of the top-step pay of the firefighter position.

10.17 RESCUE SWIMMER ASSIGNMENT AND COMPENSATION
The Rescue Swimmer program will be administered in accordance with Santa Cruz Fire Department policies and procedures.

Employees designated as Rescue Swimmers, with the exception of the Marine Safety Officer, in accordance with departmental policies and procedures will receive an incentive equal to five percent (5%) of their base salary.

10.18 HAZ-MAT TECHNICIAN ASSIGNMENT AND COMPENSATION

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Employees designated as haz-mat technicians in accordance with departmental policies and procedures, with the exception of the Marine Safety officer, will receive an incentive equal to five percent (5%) of their base salary.

10.19 ON-CALL FIRE INVESTIGATOR ASSIGNMENT AND COMPENSATION On-call Fire Investigator assignments will be made in accordance with Santa Cruz Fire Department Policy and Procedure Manual Article #2, #B2-4 (On-Call Fire Investigator Assignment).

Compensation for on-call Fire Investigator assignments is as follows:

A. For every weekday covered, a stipend equal to 1 ½ hours of “C” step Deputy Fire Marshal pay shall be provided.

B. For every weekend day covered (24 hour period) a stipend equal to 2 hours of “C” step Deputy Fire Marshal pay shall be provided.

C. For every City designated 8-hour holiday covered (24 hour period), a stipend equal to 4 hours of “C” step Deputy Fire Marshal pay shall be provided and an additional 4 hours will be credited to the employee’s accrued compensatory time balance.

D. For every City designated 4-hour holiday covered (24 hour period), a stipend equal to 2 hours of “C” step Deputy Fire Marshal pay shall be provided and an additional 2 hours will be credited to the employee’s accrued compensatory time balance.

E. When an on-call Fire Investigator is dispatched or activated, the pay rate will revert to 1 ½ the employee’s base pay rate as “emergency call back”.

SECTION 11.00 - SICK LEAVE

11.01 DEFINITION
The purpose of this section is to provide paid leave time to be used by employees in the event of a non-work related illness, injury, preventive healthcare, care of an existing health condition, as victims of domestic violence, sexual assault or stalking, or the medical necessity of others as specified below. Sick leave shall not be construed to be a privilege, which an employee may use at their discretion, but shall be allowed only in case of necessity herein set forth.

11.02 ACCRUAL

11.02.01 24-HOUR SHIFT PERSONNEL
All 24-hour shift personnel shall accrue sick leave at the rate of 162 hours for each full month of continuous regular service in which the employee has worked or has been in authorized leave of absence with pay.

11.02.02 40-HOUR PER WEEK PERSONNEL

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All 40-hour per week personnel shall accrue such leave at the rate of 8 hours of each full month of continuous regular service in which the employee has worked or has been in authorized leave of absence with pay.

11.02.03 PAID STATUS
An employee must be on paid status at least 50% of the working hours of a pay period to earn sick leave for that period.

11.03 LIMITATIONS
A. To receive compensation while absent on sick leave, the employee shall notify their immediate supervisor in the manner provided in the departmental rules and regulations.

B. Where absence is for more than two 24-hour shifts, the employee shall furnish proof of illness as may be required by the Fire Chief.

For 40-hour week employees, the Fire Chief may require an employee to submit verification of an illness or injury from a licensed medical practitioner prior to any use of sick leave being authorized.

In cases of chronic absenteeism or medical work restrictions, the Director of Human Resources may have an employee examined by a City-selected physician. The City shall pay the cost of any such medical exam.

C. Up to 72 hours for 24-hour shift personnel and 48 hours for 40-hour week personnel of accrued sick leave per fiscal year may be used when the employee’s personal attendance is required to care for an immediate family member who is ill or injured, or for preventive care, care of an existing health condition, or if they are a victim of domestic violence, sexual assault or stalking. Immediate family is defined as parent, spouse, child, father, mother, brother, sister, registered principal domestic partner, step-father, step-mother, grandparent, grandchild, or close relation residing in the employee’s household. This seventy-two (72) or forty-eight (48) hour limitation may be extended by the City Manager with good cause.

11.04 SICK LEAVE INCENTIVE

11.04.01 56-HOUR PER WEEK EMPLOYEES
56-hour per week employees who have accumulated sick leave above 900 hours as of December of each calendar year, will be able to choose among the following options:

1. To receive a cash pay-off of all hours in excess of 900 at the rate of 33% of their current rate of pay.

2. To “bank” all hours in excess of 900. Banked hours may not later be converted to cash, and will be used as sick leave only when all other sick leave is exhausted and/or converted to service credit upon adoption of the credit for unused sick leave option.

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11.04.02 40-HOUR PER WEEK EMPLOYEES
40-hour per week employees who, as of December 31 of each year, have accumulated more than 400 hours of sick leave will be asked to choose among the following options:

1. To receive a cash pay-off of all hours in excess of 400 at the rate of 33% of their current rate of pay.

2. To “bank” all hours in excess of 400. Banked hours may not later be converted to cash and will be used as sick leave only when all other sick leave is exhausted and/or converted to service credit upon adoption of the credit for unused sick leave option.

Employees who have an excess of 400 hours of unbanked sick leave at the time of separation from the City will be paid-off for these excess hours at the rate of 33% of the employee’s current rate of pay.

SECTION 12.00 - VACATION
Vacation accrual will be on a monthly basis beginning at date of hire. Accumulated vacation time may not exceed twice the annual rate of accrual unless prior written authorization for a specified amount is received from the City Manager or Director of Human Resources. Upon authorization by a Battalion Chief, a probationary employee may use accrued vacation leave.

The Vacation Selection Process for Shift Personnel will follow Article #4-13, revised September 21, 2015, of the Santa Cruz Fire Department Policy and Procedure Manual (see attached Exhibit D).

12.01 ACCRUAL
An employee must be in paid status at least 50% of the working hours of a pay period to earn vacation for that period. Annual vacation accrual shall be based on continuous regular service, as follows:

12.01.01 40-HOUR/WEEK SCHEDULES
Up to 5 years (inclusive): 80 hours for each year of continuous regular service 6 to 10 years (inclusive): 120 hours for each year of continuous regular service 11 or more years: 120 hours for each year of continuous regular service, plus 8 hours for each additional year of continuous regular service after ten (10) years to a maximum of 160 hours per year.

12.01.02 56-HOURS/WEEK SCHEDULES
Up to 5 years (inclusive): 12 hours for each month of continuous regular service 6 to 10 years (inclusive): 18 hours for each month of continuous regular service 11 or more years: 18 hours for each month of continuous regular service, plus one hour for each additional year of continuous regular service after ten (10) years to a maximum of twenty-four (24) hours per month.

12.02 ILLNESS DURING VACATION
An employee who becomes ill or is hospitalized while on vacation and provides a written statement from a licensed medical practitioner to this effect, shall have the period of illness

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23 charged against sick leave and not vacation leave.

12.03 UNION LEAVE BANK

1. Transfer of Accrued Vacation to Union Leave Bank
In the first full pay period of January of each year, each active bargaining unit employee will contribute to the Union Leave Bank by donating six (6) hours of their accrued vacation leave (four (4) hours for forty (40) hour per week employees).

The contribution will be deducted from each employee’s accrued vacation leave, and the total dollar value of those hours, using the employee’s actual hourly rate, will be credited to the Union Leave Bank.

Unless an employee has at least six (6) vacation hours available (four (4) hours for forty (40) hour per week employees), no deduction will occur nor will a deduction occur at any time prior to the next calendar year leave bank transfer. In addition, employees hired during the year will have no deduction until the following calendar year’s leave bank transfer. Employees separating employment during the year will receive no credit for or return of the hours contributed to the Union Leave Bank.

The number of hours deducted from each employee’s accrued vacation leave may be adjusted from year to year as necessary with written notification from the Union to the City.

2. Carry Over of U nused F unds
If there are any unused amounts in the Fire Union Leave Bank at the end of the fiscal year, these amounts will carry over to the following year.

3. Usage of the Union Leave Bank
When a bargaining unit employee has received the appropriate approval to be absent from their scheduled shift(s) to attend conferences related to a union-related function, payment of the employee(s) wages covering for the shift(s) will be made from the Union Leave Bank. The employee will be paid at an FLSA adjusted overtime rate. No ‘acting pay’ will be added to the union coverage overtime rate. There will be no compensatory time bank established for this purpose.

Coverage time will be paid time. The employee absent from work on union business shall receive pay for their regularly scheduled shifts.

4. Authorization for use of the Union Leave Bank
An employee seeking to be absent from work pursuant to this section must receive written approval from a union officer and present the request seven (7) days in advance to the Deputy Chief who shall confirm that there are sufficient funds in the Union Leave Bank to cover the absence. Approval for use of the leave will be denied if there are insufficient funds in the Leave Bank to pay for the coverage of shifts during the proposed absence.

5. Shift Coverage
The Battalion Chief shall ensure a replacement is secured to cover the shifts resulting from an approved Union Leave absence, pursuant to the current practice for obtaining shift replacements. In the event Union Leave is sought at a time when there are inadequate funds in the leave bank to cover the leave,

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24 employees may seek a shift-trade in accordance with current policy and practice, or the Union may deposit an amount sufficient to cover the inadequacy into the Leave Bank account.

6. Time Card Coding
Employees absent on Union Leave and employees covering for employees absent on Union Leave shall code their time cards accordingly. The employee absent from work shall code their time card using a pay code edit, 166 – Union Business and number of duration hours. He/she must delete the pre-populated schedule for the expected duration of the union business. The employees covering for employees absent on union leave shall transfer their time to a “021 - Overtime Union Coverage” work rule.

7. Quarterly Reports
The Fire Department shall provide a report to the Union on a quarterly basis indicating the amounts used during the calendar year as well as the remaining balance of the Union Leave Bank.

8. Disclaimer of Liability
The City assumes no responsibility for how the leave time is used. Time spent on Union Leave is not considered time worked for purposes of worker’s compensation.

9. Overtime
Time spent on Union Leave is not counted as time worked for purposes of calculating overtime. Time spent by employees covering for those on Union Leave is counted as time worked for purposes of overtime.

10. No Waiver of Rights
Nothing in this section shall supersede the Fire Chief’s duty to maintain management control over shifts to ensure that the daily operation of the Fire Department and emergency situations are adequately covered.

SECTION 13.00 - BEREAVEMENT LEAVE
The purpose of this section is to provide paid leave for employees when they are bereaved at the death of a family member and this loss has had a temporary effect on the employee’s ability to continue daily work performance.

A leave of absence with pay of up to twenty-four (24) hours per incident is available to an employee in the event of a death in the employee’s immediate family which shall, for the purpose of this article, include spouse, parent, son, daughter, grandparent, sibling, mother or father-in-law, registered Principal Domestic Partner, grandchild of the employee or spouse, son-in-law, daughter- in-law, grandparent-inlaw, brother-in-law, sister-in-law, or a close relation residing in the employee’s household. In rare cases when the employee and the deceased have no legal relationship other than a foster or stepparent the Human Resources Director or City Manager has the discretion to approve that leave upon application.

Employees who have been employed for at least thirty (30) days are entitled to bereavement leave in

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25 the event of the death of an employee’s spouse, domestic partner, child (including stepchild & foster care child), parent, grandparent, grandchild, sibling, aunt, uncle, first cousin, and the spouse/domestic partner’s child, parent, grandparent, grandchild, brother, sister, sibling or a close relation residing in the employee’s household.

In rare cases when the employee and the deceased have no legal relationship other than a foster or step-parent the Human Resources Director or their designee has the discretion to approve that leave upon application.
56-Hour Work Week Employees
56-hour employees shall receive up to forty-eight (48) hours of paid bereavement leave per incident. 40-Hour Work Week Employees
40-hour employees shall receive up to forty (40) hours of paid bereavement leave per incident. 56-Hour and 40-Hour Employees
The use of paid bereavement leave shall not be charged against any of the employees leave banks. If the employee wishes to take additional days off in addition to the paid bereavement leave provided, as outlined above, to attend to the loss of a family member, the employee may take unpaid leave or use vacation, sick leave or compensatory time off that is otherwise available to the employee.

Days of bereavement leave used need not be consecutive but must be completed within ninety (90) days of the date of the death of the employee’s family member.

As soon as practicable, an employee who needs to use bereavement leave shall notify the Human Resources Director or their designee in the format defined by the Human Resources Department, such as electronic transmittal.

The HR Director or their designee may, within thirty days of the first day of the leave, require that an employee provide documentation of the death of the family member. Documentation includes but is not limited to a death certificate, a published obituary, or written verification of death, burial, or memorial service from a mortuary, funeral home, burial society, crematorium, religious institution, or governmental agency.

13.01 MARINE SAFETY OFFICER BEREAVEMENT LEAVE
A leave of absence with pay of up to forty (40) hours per incident may be granted a Marine Safety Officer by the department head in the event of a death in the employee’s family which shall, for the purpose of this article, include spouse, parent, child, grandparent,sibling, parentin-law, registered principal domestic partner, grandchild of the employee or spouse, siblingin-law, child-in-law, grandparent-in-law, or a close relation residing in the employee’s household. In rare cases when the individual has no other legal relationship other than a foster or step parent, the HR Director or City Manager has the discretion to approve that leave upon application.

An additional forty (40) hours of leave chargeable to accrued sick leave, may be taken by an employee who needs additional time off in connection with a death in the family (as defined in this article).

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26 SECTION 14.00 - LEAVES OF ABSENCE

14.01 UNPAID LEAVES OF ABSENCE

14.01.01 MEDICAL OR PERSONAL LEAVE
A leave of absence without pay may be granted to an employee in a case of extended illness or disability, personal emergency or other situation where such absence would not be contrary to the best interests of the City. Approval of all such leaves of absence is at the sole discretion of management. Such unpaid leave will only be granted after an employee has depleted all appropriate paid leaves. The department head may grant a leave of absence of up to thirty (30) consecutive calendar days; additional leave may only be granted by the City Manager and may not exceed a total of twelve months. No vacation, holidays, sick leave, or any other paid benefit shall be accrued or earned during such leave. All requests for unpaid leaves of absence must be made in writing and include specific begin and end dates for the leave. Employees on Military Leave pursuant to Section 14.02.02 are not subject to the leave depletion requirement.

14.01.02 PREGNANCY DISABILITY LEAVE
An employee may take a leave of absence up to four (4) months in length for the purpose of pregnancy disability leave. The City may request a licensed medical practitioner’s opinion regarding any work restrictions that may exist prior to or after delivery.

Requests for pregnancy disability leave must be made in writing to the Fire Chief at least thirty (30) days in advance of the anticipated starting date. Such requests must include specific begin and end dates for the leave. Starting dates should be as accurate as possible, barring any unforeseen medical issues related to the pregnancy or earlier or later birth than expected. Any requests for extension of pregnancy disability leave must be made in writing to the Fire Chief at least ten (10) calendar days prior to the scheduled end of the existing leave.

The employee may elect to use any appropriate paid leave either before or after an approved pregnancy disability leave, within the use limitations of those leave provisions. No combination of pregnancy disability leave, family leave, sick leave or vacation may exceed one year total or seven (7) months post-partum.

Any additional post-partum leave, not to exceed one (1) year total, may be approved by the City ManagerHuman Resources Director or their designee after consideration of the nature of the request and the operational needs of the department.

Upon return to work, the employee shall be assigned to the same classification and like assignment whenever possible and in accordance with applicable leave laws.

Upon conclusion of an approved Pregnancy Disability Leave, the employee shall be reinstated to the “same” position held prior to the leave, or to a “comparable” position with equivalent pay benefits, and duties, in accordance with State and Federal laws.

14.01.03 FAMILY LEAVE
In accordance with the Federal Family and Medical Leave Act and the California Family Rights Act, the City will grant job protected unpaid family and medical leave to eligible

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27 employees for up to twelve (12) weeks, (continuous or cumulative). Effective January 1, 2016, the City will begin using a “rolling” twelve (12) month period measured backward to establish the 12-month period. Family leave may be taken for any one or more of the following reasons:

A. The birth of a child and in order to care for such child or the placement of a child with the employee for adoption or foster care including the child of a domestic partner (leave for this reason must be taken within the twelve (12) month period following the child’s birth or placement with the employee). In any case in which both parents are employed by the City of Santa Cruz and are entitled to leave, the aggregate number of workweeks of leave to which both may be entitled is limited to twenty-four (24) workweeks during any twelve (12) month period if leave is taken for the birth or placement for adoption or foster care of the employees’ child or child of the employee’s domestic partner.

B. In order to care for a spouse, domestic partner, child, parent, parent-in-law, grandparent, grandchild or sibling of the employee who has a serious health condition.

C. The employee's own serious health condition that makes the employee unable to perform any one or more of the essential functions of their position.

D. Military family leave, which includes:

1. “Qualifying Exigency Leave” may be taken if the employee’s spouse, son, daughter, or parent is on covered active duty or called to covered active duty status in the Regular Armed Forces during deployment to a foreign country or in the National Guard and Reserves during deployment to a foreign country under a call or order in support of a contingency operation; qualifying exigencies may include short-notice deployment, attending certain military events, arranging for alternative childcare and school activities, addressing certain financial and legal arrangements, attending certain counseling sessions, rest and recuperations, and attending post-deployment reintegration briefings.

2. “Military Caregiver Leave” of up to twenty-six (26) workweeks in a twelve (12) month period may be taken by an eligible employee who is the spouse, son, daughter, parent, or next of kin of a “covered servicemember”, in order to care for the covered servicemember with a serious illness or injury incurred or aggravated in the line of duty while on active military duty.
a. In any case in which both parents are employed by the City of Santa Cruz and are entitled to leave to care for a covered servicemember, the aggregate number of workweeks of leave to which both may be entitled is limited to twenty-six (26) workweeks during any twelve (12) month period.

Conditions covering the leave shall include the following:

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28 A. Eligible employee means having been employed by the City for twelve (12) months and has worked for at least 1,250 hours during the twelve-month period immediately preceding the commencement of the leave.

B. Medical verification is required for employee or ill family member for medical leave period.

C. Employees are required to give at least thirty (30) days written notice in the event of a foreseeable leave. In unexpected or unforeseeable situations, an employee should provide as much written notice as is practicable.

D. Employees are required to use accrued vacation as a part of the family leave period.

Use of sick leave is not required, but may be used pursuant to the applicable provisions of the Memorandum of Understanding.

E. Pregnancy disability is not covered under this section and is covered by the California Fair Employment and Housing Act which allows up to four (4) months of leave depending on the actual disability (see Section 14.01.02).

F. Employees retain “employee” status while on family care leave. The leave does not constitute a break in service for purpose of longevity, and/or seniority. Upon return to work, employee will be reinstated to an equivalent position (same classification) with equivalent pay and benefits.

G. Any request for additional leave may be made pursuant to Section 14.01. Requests for leave time using multiple time off provisions may not exceed the total amount allowed pursuant to Section 14.01.

H. Benefit premiums shall be made in accordance with the Federal Family and Medical Leave Act and the California Family Rights Act. Under the current law, the City will continue to maintain coverage under the same conditions as coverage would have been provided if the employee had been continuously employed during the leave period.

I. Any other conditions or interpretations of the leave shall be based upon the Federal Family and Medical Leave Act and the California Family Rights Act.

14.01.04 CONTINUATION OF INSURANCE BENEFITS DURING UNPAID LEAVES OF ABSENCE City-sponsored insurance benefits may be continued during unpaid leaves of absence under the following conditions:

A. Personal Leave
The City shall continue to pay benefit premiums during a personal leave of less than thirty (30) calendar days. For leaves of more than thirty (30) calendar days, employees may continue premium payments at their own cost, in accordance with appropriate PERS medical plan provisions.

B. Medical Leave
The City shall continue to pay benefit premiums during the entire length of a medical leave of absence.

C. Family Leave

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29 Benefit premiums shall be made in accordance with the Federal Family and Medical Leave Act and the California Family Rights Act. Under current law, the City will continue to maintain coverage under the same conditions as coverage would have been provided if the employee had been continuously employed during the leave period.

14.02 PAID LEAVES OF ABSENCE

14.02.01 PAID BIRTH/ADOPTIVE LEAVE
An employee is entitled to forty-eight (48) hours leave with pay at or about the time of the birth of the employee’s child or at the time of adopting a child. The paid leave shall be within two (2) months of the birth or adoption. This leave will be considered a part of the time allotted to family leave as authorized in Section 14.01.03.

14.02.02 MILITARY LEAVE
An employee who is a member of the National Guard or any reserve component of the armed services of the U.S. shall be granted up to thirty (30) days per year of paid leave for any active duty scheduled during the employee’s regular work hours (or 10 shifts per year for 24 hour personnel). The employee must give their supervisor forty-eight (48) hours advance notification of the need for such leave and must present a copy of the “notice” for such duty.

All other military leaves shall be granted pursuant to relevant state and federal statutes.

Employees who exhaust the paid leave benefits described above may take unpaid leave pursuant to Section 14.01.01and are not required to use vacation or other similar leave.

SECTION 15.00 - UNIFORMS, LINENS, AND PERSONAL PROPERTY

15.01 UNIFORMS
A. The City and Union agree unit employees will comply with departmental standards with regard to appearance and cleanliness. To this end, the City agrees to pay the cost of cleaning department authorized uniforms. For this purpose, the City will establish an account at a dry cleaning establishment located within the city of Santa Cruz. For its part, the Union agrees its members will a) deliver and retrieve uniforms from the dry cleaning establishment, and b) do so during non-working hours. However, under exceptional circumstances, subject to the approval of the Fire Chief or their representative, uniforms may be delivered or retrieved during working hours.

The City and Union believe it is counterproductive at this time to establish minimum or maximum number of cleanings authorized by this section. It is understood, however, the Fire Chief and/or Union will monitor this program and advise the other party if any problems materialize.

B. The City agrees to replace uniforms on an as-needed basis, as determined by the Fire Chief. It shall be the responsibility of each unit employee to arrange for purchasing, fitting, pick up, delivery, return, repair and control of uniform items.

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30 C. The parties agree that, for PERS reporting purposes, the value of the cleaning service is four hundred and sixty-eight dollars ($468.00) per year. Employees shall pay the employee PERS cost of the value of cleaning service. Such payment shall be made through a payroll deduction out of their paycheck each pay period. The amount of the deduction shall be determined by multiplying the employee’s PERS contribution rate by eighteen dollars ($18.00).

15.02 LINENS
The City agrees to provide clean sheets, pillow cases, and towels for use by unit employees every two shifts. The City agrees to retain a linen service to clean the aforementioned items.

15.03 PERSONAL PROPERTY
Employees will be reimbursed for the loss, repair or replacement of personal property damaged in the course of employment and performance of their assigned duties.

The option to repair or replace damaged items, and to determine whether replaced property will be returned to the employee, rests with the City.

The intent of this regulation is to permit reimbursement for the repair or replacement of such items as eyeglasses, hearing aids, dentures, watches or personal professional equipment if necessarily worn or carried by the employee in the course of their employment. Reimbursement shall be authorized only when the damage is caused by extraordinary circumstances, which arise out of employment, and not from normal hazards or ordinary wear and tear. This policy extends to both field and office personnel. A maximum of $75.00 per incident shall be paid for this purpose.

SECTION 16.00 - MISCELLANEOUS PROVISIONS

16.01 ADDITIONAL DUTIES
All Firefighters shall be expected to perform work as assigned by the Fire Chief or their designated representative in connection with or related to firefighting, its equipment, apparatus and attendant facilities; fire prevention duties; station housekeeping, maintenance and repair; and, such other duties which are reasonably related to the above.

16.02 MISCELLANEOUS EMPLOYMENT
No outside employment in conflict with firefighting duties or ordinances, Council resolutions or orders shall be allowed without the express permission of the Fire Chief or their designated representative. Notification of outside employment shall be made pursuant to Fire Department administrative directive.

16.03 PROMOTIONS
The City and the Union agree that it is desirable that a highly trained professional fire prevention, fire suppression and Marine Safety force should be developed and maintained. To that end, it is agreed that the Fire Chief or their designated representative shall assist personnel in the development and fulfillment of a training plan which helps them prepare for promotional

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31 positions as they become vacant.

16.04 LAYOFF POLICY & PROCEDURE
All Fire Department employees shall be subject to the layoff policy and procedure provided in this section.

16.04.01 LAYOFFS
The City reserves the right to reduce its workforce by layoff of employees for reasons of economy or changes in departmental operations. When one or more employees assigned to the same classification within a department are to be laid off, the order of layoff shall be as follows:

1. Casual, On-call

2. Temporary

3. Casual - Less-than-half-time

4. Probationary

5. Regular
The order of layoffs shall be governed by seniority in classification from the date of hire in the classified position.

16.04.02 BUMPING
Bumping is defined as a voluntary movement of an employee to be laid off from their current classification to a previously held lower classification or reclassified position held by an employee with less seniority. Bumping privileges may be exercised within the Fire Department. An employee with sufficient seniority to bump an employee in a lower classification shall bump the least senior person in that classification.

For bumping purposes, seniority shall be defined as time in the affected classification added to time in a directly related higher classification.

16.04.03 NOTIFICATION
Employees to be laid off shall be given not less than fifteen (15) working days written notice prior to the reduction in force. An employee wishing to bump to a lower classification shall provide written notice to the City within ten (10) days of receiving their layoff notice.

16.04.04 REINSTATEMENT
Should there be a vacancy in the classification from which an employee was laid off within thirty-six (36) months, the employee shall be eligible for reinstatement. It shall be the employee’s responsibility to notify the Human Resources Department of their current address.

Every effort shall be made to notify the affected individual of any reinstatement opportunity.

Reinstatement shall be in the reverse order of layoff.

16.05 CONSOLIDATION MERGER
The City agrees that it will give advance notice and provide the opportunity for the Union to

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32 meet and confer on the impact of any consolidation/and or merger which involves unit employees.

This section shall not restrict the rights of the department to relocate units, realign districts or to alter organization objectives of the merged departments. The Union will be involved in discussions authorized by the involved agencies concerning the merger as it relates to this agreement.

16.06 TUITION REIMBURSEMENT
The City shall reimburse employees up to $350 per fiscal year for tuition and books upon successful completion of City-approved college or university courses.

To be eligible for reimbursement, employees must receive approval of the Fire Chief prior to attending classes and comply with applicable department and City regulations.

16.07 CAPTAIN/ENGINEER PROMOTIONAL EXAM
When a promotional eligible list (as defined in the Personnel Rules and Regulations) is used to fill a Captain’s or Engineer’s position and that promotional list includes employees represented by this agreement, the Director of Human Resources shall certify the top five (5) eligibles, in alphabetical order, if there be that number, on the relevant promotional list to the Fire Chief. If there be more than one vacancy in the same class, the Director of Human Resources shall certify one additional eligible for each additional vacancy, if there be candidates available on the eligible list.

SECTION 17.00 - BENEFITS

17.01 MEDICAL PLAN/FLEXIBLE BENEFITS
The City will provide medical insurance through the California Public Employees’ Retirement System (CalPERS). The City will contribute a monthly amount to CalPERS pursuant to Government Code Section 22892 of the Public Employees Medical and Hospital Care Act (PEMHCA). The City will provide a flexible benefits plan (“cafeteria plan”) to all eligible employees. If an employee elects to participate in a medical plan, the maximum monthly City contribution to the cafeteria plan is the cost of the Blue Shield Access+ HMO Plan (for the Bay Area/Sacramento region) less the following employee contribution amounts:

Employee Only: $96.00
Employee & One: $118.04
Family: $121.50
In no event will the maximum monthly City contribution exceed the premium for the plan in which the employee is enrolled. In no event will employees be credited with and receive cash back based on the plan chosen.

Each employee participating in a medical plan will make an additional $48.00 contribution per pay period towards the cost of health care benefits. This pre-tax contribution is made

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33 during pay periods where employee deductions for health care benefits are taken (24 pay periods).

17.01.01 MEDICAL WAIVER BENEFIT
Employees may elect to waive City medical coverage and receive a cash benefit. In order to receive the medical waiver benefit, the employee must provide proof to the City of other current medical coverage. Full-time employees who waive medical coverage are eligible to receive $200 per month; part-time employees shall receive a pro-rated amount, based upon their fulltime equivalency (FTE). The medical waiver amount may be applied toward the purchase of any pre-tax or post-tax optional benefits, or paid as a taxable cash benefit.

Employees receiving the medical waiver benefit must notify the Human Resources Department if they cease to be covered by any other medical plan, thereby making them ineligible for the medical waiver benefit.

17.01.02 OPTIONAL BENEFITS
Through the cafeteria plan, employees may also enroll in the following optional benefits and elect to pay premiums on a pre-tax basis:

1. Medical reimbursement account (MRA)

2. Dependent care assistance plan (DCAP)

3. Cancer and Critical Illness Protection Insurance
Employees may also enroll in the following optional benefits and elect to pay premiums on a post-tax basis:

1. Additional life insurance

2. Accident protection insurance

3. Long Term Care Insurance

17.02 DENTAL PLAN
The City shall provide a dental plan for employees and their eligible dependents at no premium cost to employees and with the following minimum benefit levels.

In-PPO Network Out-of-PPO Network (fees
charged are usually higher)
Annual Deductible $25 per person/$75 per
family per calendar year
$25 per person/$75 per
family per calendar year
Annual Benefit
Maximum
$1,500 per person $1,500 per person
Preventive 100% % of contract allowance
Basic Restoration
(Fillings, root canals)
80% % of contract allowance
Major Restoration
(crowns)
50% 50% of contract
allowance

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34 Orthodontia 50% up to $2,000 lifetime
maximum per person, up to
age 23
50% of contract allowance,
up to $2,000 lifetime
maximum per person, up to
age 23

17.03 VISION INSURANCE
The City shall provide a vision plan for employees and their eligible dependents at no premium cost to employees and with the following minimum benefit levels.

Co-pays $15.00 (does not apply to contacts)
Exam: 100% every 12 months
Prescription Lenses 100% every 12 months
Frames 100% up to $115 plus 20% off any out-of- pocket
costs ($65 at Walmart/Costco), every 24 months
Contacts 100% (in lieu of glasses) up to $100, every
12 months

17.04 RETIRED HEALTH PROGRAM

17.04.01 RETIREE MEDICAL/CALPERS MEDICAL PLAN
Covered employees who retire under the provisions of the City’s contract with CalPERS, are currently eligible to continue CalPERS medical coverage. The City will continue a monthly contribution to CalPERS pursuant to Government Code Section 22892 of the Public Employees Medical and Hospital Care Act (PEMHCA), adjusted annually by CalPERS by the medical care component of the Consumer Price Index-Urban.

17.04.02 RETIREE MEDICAL INCENTIVE
In addition to the PEMHCA minimum monthly contribution that the City contributes for all employees in a CalPERS medical plan, employees currently on the City’s retiree medical plan and future covered employees who receive a retirement from CalPERS and have at least five (5) years of continued service with the City and are at least fifty (50) years of age will receive a retiree medical benefit in the amount of $112.04, per month. This benefit will continue as long as the employee continues CalPERS medical coverage through the City of Santa Cruz and until such time as the retiree is eligible for Medicare or other Federal or State health programs, solely on account of age.

Marine Safety Officers currently on the City’s retiree medical plan and future covered employees who receive a retirement from CalPERS and have at least five (5) years of continued service with the City and are at least fifty-five (55) years of age will receive a retiree medical benefit in the amount of one-hundred dollars ($100), per month. This benefit will continue as long as the employee continues CalPERS medical coverage through the City of Santa Cruz and until such time as the retiree is eligible for Medicare or other Federal or State health programs, solely on account of age.

Employees who retire with more than twenty (20) years of City service will have their medical

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35 incentive increased to 75% of the cost of the employee-only coverage of the highest CalPERS HMO plan from only among those plans available in Santa Cruz County at the time of ratification of this agreement (less the contribution listed in 17.04.01 (Retiree Medical/CalPERS Medical Plan).

17.04.03 DISABILITY RETIREMENT BEFORE ELIGIBLE AGE FOR SERVICE RETIREMENT With the exclusion of the Marine Safety Officer, upon disability retirement before attaining the minimum age to be eligible for service retirement, an employee shall be reimbursed for unused sick leave through the provision of the City’s retired health care plan for the employee only to the following limits, whichever occurs first: (1) up to the current value of the employee’s sick leave accrual; or (2) until such time as the employee obtains primary health care coverage under another plan; or (3) until the employee is eligible for Federal or State medical programs.

Once any of these limits are reached, the employee is no longer eligible for coverage under this plan.

The retiree shall notify the City in writing at such time as he/she is receiving primary coverage under another plan.

Two years after the date of retirement, if a retiree is still covered under the City’s plan, he/she must provide the City with an affidavit stating that he/she is not receiving primary coverage under another plan. If the retiree fails to provide such an affidavit, the City has the right to cancel coverage with 30 days written notice.

To be eligible for this Retired Health Care Plan, the employee must have an accrued sick leave balance of 144 hours as of the effective date of disability retirement.

If an employee is medically declared to be totally disabled, the City shall provide the retired health plan to that employee until he/she is eligible for Federal or State medical programs, regardless of the employee’s sick leave balance.

In all cases, retired employees may purchase coverage for their dependents under this plan as long as they, themselves, remain eligible and are insured under the plan.

17.05 LIFE INSURANCE
The City shall contribute the full cost toward the City-sponsored $30,000.00 basic term life insurance program.

17.06 LONG-TERM DISABILITY
The City shall contribute 80% of the premium cost of the Union-sponsored long-term disability program, provided said program offered through California Association of Professional Firefighters Plan A, requires a sixty-day elimination period prior to receipt of benefits by employee. These contributions shall be reported as income to the employee.

The City shall continue its 80% contribution for the term of this agreement; except that it shall not be obligated to pay in excess of $16.00 per month.

17.07 PRINCIPAL DOMESTIC PARTNERS

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36 The City will provide medical, dental, and vision benefits to employees with Principal Domestic Partners equivalent to those provided to an employee’s spouse. Employees may enroll their eligible Principal Domestic Partners and the eligible dependents of their Principal Domestic Partners subject to eligibility requirements established either by CalPERS or the City and subject to tax regulations of the State of California and the Internal Revenue Service of the United States government.

17.08 RETIREE MEDICAL TRUST
The City acknowledges that the Union has entered into an agreement with the Medical Expense Reimbursement Plan of the California Firefighters Benefit Trust (hereafter, the “Trust”). The purpose of the Trust shall be to provide for retiree health expense reimbursement benefits. The Trust shall be, and remain separate and apart from any City health insurance funding program, unless changed by mutual agreement of the parties to this agreement.

A. DEFINED CLASS OF EMPLOYEES RECEIVING CONTRIBUTIONS. The “Defined Class” of employees receiving contributions to the Trust as set forth below, consists of all members of Santa Cruz City Fire Department, Local 1716 B. EMPLOYEE CONTRIBUTION AMOUNT. The City and the Union agree that the City shall withhold a mandatory contribution of $50.00 per pay period on a pre-tax basis from the pay of every employee in the Defined Class who is a member of the bargaining unit represented by the Union and shall transmit such contributions to the Trust pursuant to the requirements in Section D below. No employee in the Defined Class shall be permitted to opt-out of the mandatory contributions or receive any portion of the contribution in cash
C. EMPLOYER CONTRIBUTION AMOUNT. The Employer shall make a mandatory contribution of $50.00 per pay period on a pre-tax basis for every employee in the Defined Class. No employee in the Defined Class shall be permitted to opt-out of the mandatory contributions or receive any portion of the contribution in cash.

D. REMITTANCE OF CONTRIBUTIONS. The City shall remit the above contributions directly to the Trust for the duration of the Memorandum of Understanding. Those contributions shall be remitted on a “per pay period” basis in one aggregate ACH or wire transfer directly to the custodian of the Trust within 30 days of the date the payment would have been payable to the employee.

The Employer hereby acknowledges receipt of the Trust Agreement governing the Trust and will comply with rules set by the Trust Office in regard to reporting and depositing the required contributions set forth herein.

E. REPORTING TO TRUST OFFICE. The City shall electronically submit to the Trust a monthly report of contributing employees for each contribution sent to the Trust, in the format requested by the Trust, and received by the Trust Office within five (5) days of receipt of the contribution funds.

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37 The City shall also provide an initial report of information for all contributing employees, as reasonably requested by the Trust; and shall send updates to this information to the Trust Office whenever the City has notice of changes to the information.

F. MODIFICATION OF EMPLOYEE CONTRIBUTION AND LEAVE
AMOUNTS. The City and the Union agree that the Union has the right, subject to approval of its members according to the Union’s internal rules, to prospectively modify the amount of the mandatory employee monthly contribution (Section B), or to include the mandatory transfer of employee leave where an employee is eligible to receive a monetary payout of accrued leave during the course of this Agreement, so long as the modification is mandatory for all employees covered by this Agreement.

G. LIMITATION OF LIABILITY. The City and Union agree that the Union shall hold the City harmless for the City's actions related to this section and indemnify the City against any liability the City incurs as a result of this section, including but not limited to, its agreement to allow the Union to participate in a post-retirement healthcare trust and/or the City's processing of payroll deductions as set forth in this section.

SECTION 18.00 - GRIEVANCE PROCEDURE

18.01 PURPOSE
To assure prompt and fair treatment of employee grievances related to employment. Any employee covered by this Memorandum of Understanding may file a grievance.

18.02 DEFINITIONS
A grievance is defined as an alleged violation, misinterpretation or misapplication of the provisions of this Memorandum of Understanding or, the City’s Personnel Rules and Regulations.

18.03 LIMITATIONS
A. A grievant may be represented by any representative of their choosing in preparing and presenting a grievance.

B. No reprisal shall result against any employee who presents a bona fide grievance under this procedure.

C. Time limits may be extended by written mutual agreement of the parties. Absent such agreement, grievances may be advanced to the next step if time limits are not met.

D. A grievance shall be considered settled in favor of the other party if, at any step, a decision is not rendered or appealed within the specified time limit.

E. Only upon mutual written agreement between the parties may Step I of the grievance procedure be waived.

14.115
38 F. Grievances may, by mutual agreement in writing, be referred back for further consideration or discussion to a prior Step, or advanced to a higher Step of the grievance procedure. If a grievance is moved either forward or backward to another Step, the time limits at that Step shall be controlling shall begin on the date the parties agree to the move.

18.04 CONSOLIDATION
Concurrent grievances alleging violation of the same provisions shall be consolidated for the purpose of this procedure as a single grievance.

18.05 PROCEDURES

18.05.01 STEP I
The grievant will first attempt to resolve the grievance through informal discussions with their immediate supervisor or other appropriate department personnel. These discussions must be initiated within ten (10) working days of when the employee knew, or reasonably should have known of the incident upon which the grievance is based. Meetings shall be scheduled in advance and the nature of the grievance stated when the appointment is made. Every attempt will be made by the parties to settle the issue at this level.

18.05.02 STEP II
If the grievance is not resolved through the informal discussions, the employee or their representative may within ten (10) workdays after the informal meeting, submit a written grievance to their department head.

The written grievance must contain in clear, factual and concise language:

1. Name of the grievant.

2. A brief statement as to the date, time and place of the occurrence on which the grievance is based and the facts as the grievant see them.

3. The specific provision of the M.O.U. or Personnel Rules and Regulations which the grievant alleges has been misinterpreted, misapplied or violated.

4. Steps taken toward informal resolution.

5. The action the grievant believes will resolve the grievance.

6. The name of any representative chosen by the grievant.

7. A copy of the written grievance, signed by the grievant, shall be presented at the time of the department head conference.

The Fire Chief or their designee shall hold a conference with the grievant within ten (10) workdays following receipt of the formal grievance. He/she shall prepare a written response within five (5) working days after the conference. Copies shall go to the parties involved including the employee’s representative and the Human Resources Department.

14.116
39 18.05.03 STEP III
If the grievance is not resolved, the grievant may, within five (5) workdays following receipt of the Fire Chief’s or designee’s response, appeal to the City Manager or their representative, stating in writing the basis for the appeal. The grievance may also be appealed if the department head fails to respond within fifteen (15) workdays after submission of the formal grievance.

The City Manager or their representative shall set a hearing within ten (10) workdays of receiving the appeal. The grievant, their representative and other parties summoned by the City Manager or representative shall attend the hearing and present testimony or evidence concerning the grievance. The parties may bring a reasonable number of witnesses to the hearing.

The City manager or their representative shall render a written decision to all parties directly involved with fifteen (15) workdays following the hearing.

18.05.04 STEP IV
If the grievance is not resolved to the satisfaction of the employee at the conclusion of Step III, the employee may appeal the decision of the City Manager to a neutral arbitrator, provided s/he so informs the City in writing within ten (10) working days following receipt of the City Manager’s decision.

Within ten (10) working days from the date of receipt of the appeal, the parties may mutually agree on a neutral party from an independent source to serve as an arbitrator. In the event the parties fail to agree on the neutral party, they shall immediately thereafter jointly request the California State Mediation and Conciliation Service to submit to them a list of five (5) persons qualified and available to act as arbitrator.

If such a list is requested from the State Mediation and Conciliation Service, the parties within five (5) working days of receipt of the list, shall mutually agree upon the person on the list who shall be the Arbitrator. If one person is not mutually agreed upon, the parties shall within five (5) days after receipt of the list of names alternately strike two (2) names from such list with the last remaining name to be the person serving as Arbitrator. The party having first choice to strike a name from the list shall be determined by lot.

The Arbitrator shall have no authority to add to, detract from, alter, amend or modify any provision of this Agreement, or impose on any party hereto a limitation or obligation not explicitly provided for in this Agreement, or to alter any wage rate or wage structure. The decision of the Arbitrator shall be rendered after the evidence and arguments are presented to him/her by the parties in the presence of each other and in post hearing briefs if necessary. The decision of the Arbitrator shall be final and binding upon the parties.

The Arbitrator is requested to expedite the decision as the parties normally expect a decision to be issued within fifteen (15) days after the conclusion of the hearing.

The Arbitrator’s expenses, if any, shall be borne equally by the parties. Each party shall bear the cost of its own representation.

14.117
40 SECTION 19.00 - DISCIPLINARY APPEALS PROCEDURE

19.01 DEFINITION
For the purposes of this article, disciplinary action shall mean suspension, demotion, disciplinary reduction in salary or discharge.

The appeal procedure described herein shall apply to cases of disciplinary action affecting regular employees. It shall not be applicable to probationary employees. Employees have the right to representation at any or all stages of the appeal process.

19.02 PRE-ACTION PROCEDURE

19.02.01 STEP I
Prior to imposing disciplinary action, the supervisor shall first provide the employee a preliminary written notice of the proposed action stating the effective date and the specific grounds and particular facts upon which the action will be taken. The employee shall have access to any known written materials, reports or documents upon which the action is based.

The employee shall have the right to respond to the charges within five (5) workdays from receipt of the notice either orally, in writing, or both, to the Fire Chief. If the Fire Chief is personally involved in the initial investigation and notice process, the City Manager or Director of Human Resources shall appoint a designee to hear the response.

The employee may request an extension of the time to respond for justifiable reasons. Failure to respond within the time specified will result in the employee’s waiver of their procedural rights and final action will be taken.

19.02.02 STEP II
Following a review of a proposed disciplinary action, the Fire Chief, within five (5) workdays of receiving employee’s response, shall render a written decision and send it by registered mail or personal delivery to the employee. A copy shall also be mailed to the employee’s representative.

The employee has the right, within five (5) workdays after receiving the decision, to file a request for appeal with the City Manager. The appeal shall be a written statement, signed by the appellant, explaining the matter appealed from, stating the action desired by the appellant, with their reasons therefore, and stating that the pre-action procedures have been exhausted.

19.03 POST-ACTION APPEAL

19.03.01 STEP III
If the employee files a timely appeal, the City Manager shall, within five (5) workdays after receiving the appeal, designate a hearing officer who shall schedule a hearing not less than five (5) workdays from the date the appeal was received.

The hearing officer may conduct such independent investigation of the matter as he/she deems necessary . to evaluate claims raised by the employee during the hearing. However, the hearing officer shall not initiate an investigation or introduce new factual findings that were

14.118
41 not previously disclosed to the employee as part of the basis for their discipline, unless those facts were introduced by the employee during the hearing. In such cases, the hearing officer may include those facts solely to supplement the findings related to the employee’s claims.

The appellant shall be given the opportunity to answer or present evidence in opposition to the findings of this independent investigation.

The appellant shall appear personally at the scheduled hearing unless physically unable to do so. The appellant or their representative may produce relevant oral or documentary evidence at the hearing.

Within fifteen (15) workdays following the hearing, the hearing officer shall render a written decision to all parties involved. The hearing officer has the authority to affirm, repeal or modify the disciplinary action.

19.03.02 STEP IV
If the appeal is not resolved to the satisfaction of the appellant at the conclusion of Step III, the employee may appeal the decision of the City Manager to a neutral arbitrator, provided it so informs the City Manager in writing within ten (10) working days following receipt of the City Manager’s decision.

Within ten (10) working days from the date of receipt of the appeal, the parties may mutually agree on a neutral party from an independent source to serve as an arbitrator. In the event the parties fail to agree on the neutral party, they shall immediately, thereafter, jointly request the California State Mediation and Conciliation Service to submit to them a list of five (5) persons qualified and available to act as arbitrator.

If such a list is requested from the State Mediation and Conciliation Service, the parties within five (5) working days of receipt of the list, shall mutually agree upon the person on the list who shall be the arbitrator. If one person is not mutually agreed upon, the parties shall within five (5) days after receipt of the list of names alternately strike two (2) names from such list with the last remaining name to be the person serving as arbitrator. The party having first choice to strike a name from the list shall be determined by lot.

The arbitrator shall have no authority to add to, detract from, alter, amend, or modify any provision of this agreement, or impose on any party hereto a limitation or obligation not explicitly provided for in this agreement, or to alter any wage rate or wage structure. The decision of the arbitrator shall be rendered after the evidence and arguments are presented to him/her by the parties in the presence of each other and in post hearing briefs, if necessary.

The decision of the arbitrator shall be final and binding upon the parties.

The arbitrator is requested to expedite the decision as the parties normally expect a decision to be issued within fifteen (15) days after the conclusion of the hearing.

For disciplinary action which results in a suspension of three (3) days or less, the losing party shall pay for the cost of the arbitrator. For disciplinary action which results in a suspension of greater than three (3) days or demotion, reduction in salary or discharge, the arbitrator’s expenses shall be borne equally by the parties. In either case, each party shall bear the cost of its own representation.

14.119
42 19.04 FIREFIGHTERS PROCEDURAL BILL OF RIGHTS ACT
During the period of this Memorandum of Understanding, the City and Union agree to adopt and comply with the Firefighter Procedural Bill of Rights Act, codified as California Government Code §§ 3250-3262, effective January 1, 2008.

SECTION 20.00 - WRITTEN REPRIMANDS
A written reprimand may be issued by an employee’s supervisor if an employee has violated a City rule, provision of the M.O.U., or if their performance is in need of improvement. Written reprimands shall be placed in the employee’s personnel file. An employee shall have the right to prepare a written response to the reprimand and have said response placed in their personnel file. An employee may appeal the supervisor’s decision to issue a written reprimand to the Fire Chief by filing an appeal to the Fire Chief within five (5) working days of receipt of the reprimand. The Fire Chief’s decision regarding the written reprimand shall be final.

SECTION 21.00 - SEVERABILITY
This Memorandum is subject to all current and future applicable Federal and State laws, State regulations, California Constitution, and City of Santa Cruz, Charter, Resolutions, or Ordinances.

Should any of the provisions herein contained be rendered or declared invalid by reason of any State or Federal legislation or court action, such invalidations of such part or portions of this Memorandum shall not invalidate the remaining portions hereof and they shall remain in full force and effect insofar as such remaining portions are severable.

SECTION 22.00 - RENEGOTIATIONS
If the Union desires to negotiate a successor M.O.U., then the Union shall serve upon the City during April of the final year of the M.O.U., its written request to begin negotiations as well as its written proposals modifying the M.O.U. Negotiations shall begin within thirty (30) days from the date of receipt by the City of such notice and proposals.

14.120
43 SANTA CRUZ FIREFIGHTERS CITY OF SANTA CRUZ

I.A.F.F., LOCAL 1716
DATED: DATED:

Cody MuhlyEric Azarvand Lisa MurphySara De Leon

Nick HannaEddie Carlson T im Dav is

Ed Carlson

14.121
City Council

AGENDA REPORT
DATE: 2/5/2026
AGENDA OF: 2/10/2026
DEPARTMENT: Planning and Community Development
SUBJECT: Amendments to Municipal Code Chapter 24.04 – Administration, Section

24.12.1755 – Properties with Accessory Dwelling Units, and Chapter 24.16 Part 2 – Accessory Dwelling Units to Align Local Accessory Dwelling Unit Regulations with New State Laws, Clarify Language of Existing Regulations, and Other Minor Changes. (PL)
LOCATION: Citywide
RECOMMENDATION: Motion to:
1) Introduce for publication an ordinance amending Chapter 24.16 Part 2 of the Santa Cruz Municipal Code (SCMC) related to Accessory Dwelling Unit Regulations; 2) Introduce for publication an ordinance amending the Local Coastal Program (LCP) Implementation Plan (IP), amending Chapter 24.04 and Section 24.12.1755 of the Municipal Code related to Coastal Commission appeal of Accessory Dwelling Unit coastal permits and length of tenancy in Junior Accessory Dwelling Units; and 3) Acknowledge the determination that the proposed amendments are exempt under Public Resources Code Section 21080.17 as an ordinance to implement ADU state law and 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.
4) Provide direction to staff on whether or not to bring back, at a later date, an analysis of Planning Commission’s recommended changes to short-term rental regulations as they relate to Accessory Dwelling Units for further consideration by Planning Commission and City Council.

BACKGROUND: In 2025, the state approved several new laws that affect accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs). The bills, SB 543, AB 1154, and AB 462, made several minor changes to the approval process of ADU applications, development standards, and coastal permit appeals. These new laws took effect January 1, 2026, and the

15.1 Municipal Code must be updated accordingly to remain consistent with state law. The proposal updates the City’s regulations to ensure continued consistency with state law and make other minor changes to clarify the language of existing regulations.

DISCUSSION: The proposed updates will implement the following state law changes:
 ADU and JADU sizes are now measured in terms of interior livable space rather than floor area to exterior building walls.
 JADUs are now eligible for the same fire sprinkler and fee exceptions as ADUs.  JADUs must be rented for a term of more than 30 days.  Owner-occupancy is also no longer required on site for a JADU if it has its own separate bathroom facilities.
 The City must provide a completeness determination for ADU and JADU permit applications.
 The City must provide a specified process to allow for an appeal of a completeness determination or denial of ADU or JADU permit.
 Coastal Permits for ADUs are no longer appealable to the Coastal Commission.

The updates also include language edits to clarify existing regulations. A more detailed discussion of these changes and an analysis on consistency with the Coastal Act and Local Coastal Program are available in the attached agenda report from the January 15, 2026 Planning Commission meeting.

Planning Commission Review
The Planning Commission reviewed the proposed changes at the January 15, 2026 meeting and voted unanimously to recommend approval. In addition to supporting the changes proposed by staff, the Planning Commission voted unanimously to recommend a change to the short-term rental (STR) regulations as they relate to ADUs. While state law prohibits short-term rentals in either a state exemption ADU or a JADU, the municipal code goes a step further by also prohibiting short-term rentals in both non-state exempt ADUs and in a primary residence associated with an ADU or JADU. The Commission recommended amending this local regulation to instead allow STRs in the primary dwelling for no more than 90 days per year and no more than seven consecutive days when the primary dwelling is also the property owner’s principal place of residence. The idea was to allow more flexibility for these dwellings in a manner similar to properties without ADUs, providing more options to homeowners who want to rent their homes for brief periods of time. No members of the public were present to comment on the proposed changes.

Staff completed a cursory analysis of this recommended change and determined it has both potential benefits but also some areas that could use further consideration. One potential benefit is increased fairness between the STR rules applied to primary residences associated with ADUs or JADUs as compared to residences on sites without ADUs. In addition, the change could incentivize or reward owner-occupancy on sites with ADUs or JADUs, which the City can no longer require per ADU state law. The current number of STRs in the City’s program is well below the maximum allowable number of permits (approximately 135 active permits for hosted STRs compared to the allowance for up to 250 hosted STR permits), so the program could accommodate additional permits from this change. However, the recommended change has some

15.2 areas that could use further consideration. For example, it could be difficult to confirm or enforce that the property owner is living in and short-term renting the primary dwelling and not shortterm renting the ADU or JADU. It also is not clear how the City could monitor or enforce a cap on the number of consecutive days or the total number of days the unit is rented. Staff would want to look more into the intent and efficacy of the proposed seven-day limit and complete an analysis on whether that limitation provides the desired outcomes.

If Council is interested in pursuing these recommended updates to the STR ADU regulations, staff would need to complete additional research to better understand the goals of the proposed changes and develop recommended amendments to the requisite code sections.

With regard to public outreach, the sections of the Municipal Code that the Planning Commission was interested in changing were noticed, but the topic of STRs as they relate to primary dwellings associated with ADUs was not. Since both the short-term rental program and ADU regulations are topics of community interest, staff recommend additional community outreach and noticing for later hearings. As this topic is not part of the Planning Department’s current workplan, staff are not recommending this be prioritized over work items to fulfill state mandates, adopted housing element policies, or other time-sensitive issues.

Next Steps
Should the first reading of the ordinances be approved, a second reading is anticipated for February 24, 2026. Approved amendments that are not amendments to the Local Coastal Program Implementation Plan will take effect thirty days after final action by the City Council, while those that are subject to California Coastal Commission jurisdiction will be submitted to the Coastal Commission for review and will take effect immediately upon final action by that body. Staff anticipate action by the Coastal Commission to take place in the first half of this year.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed amendments are exempt from environmental review under Public Resources Code Section 21080.17 as an ordinance to implement ADU state law and under California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3) as a project that can be seen with certainty to have no possibility for causing a significant effect on the environment.

HEALTH IN ALL POLICIES (HiAP): In 2019, the City adopted a Health in All Policies strategy to eliminate inequities in health and well-being and attain equity for all residents. The proposed amendments further the City’s Health in All Policies strategy, as they facilitate creation of housing that is relatively more affordable by nature compared to much of the City’s housing stock, thereby promoting more equitable access to housing. The proposed amendments support infill housing development in existing residential neighborhoods, promoting a sustainable development pattern and making efficient and sustainable use of urbanized land.

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

15.3 FISCAL IMPACT DESCRIPTION: These amendments make minor changes to the existing ADU and JADU regulations that will not affect permit fees or staff time associated with permit application review. The proposed appeal process would include the standard appeal fee, which would cover the cost of staff time to process the appeal. Elimination of ADU coastal permit appeals to the California Coastal Commission would eliminate staff resources associated with an appeal; however, such appeals are rare, and the resulting impact to staff resources over time would therefore be insignificant. The net impact on the General Fund from this change would therefore be neutral.

Overall, the amendments are not anticipated to create a fiscal impact.

Prepared By:

Clara Stanger
Senior Planner
Matt VanHua, AICP
Principal Planner
Submitted By:

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

Matt Huffaker
City Manager
ATTACHMENTS:

1. ORDINANCE (NON-LCP) – CLEAN.DOCX

2. ORDINANCE (NON-LCP) – TRACKED CHANGES.DOCX

3. ORDINANCE (LCP IP) – CLEAN.DOCX

4. ORDINANCE (LCP IP) – TRACKED CHANGES.DOCX

5. PLANNING COMMISSION AGENDA REPORT OF JANUARY 15, 2026 MEETING.PDF

15.4 ORDINANCE NO. 2026-XX

AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING SANTA CRUZ MUNICIPAL CODE CHAPTER 24.16 PART 2 – ACCESSORY DWELLING UNITS, TO

MAINTAIN CONSISTENCY WITH STATE REGULATIONS FOR ACCESSORY DWELLING UNITS AND TO CLARIFY EXISTING REGULATIONS. (CEQA: EXEMPT PURSUANT TO PUBLIC RESOURCES CODE SECTION 21080.17 AS AN ORDINANCE

TO IMPLEMENT ACCESSORY DWELLING UNIT STATE LAW AND 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.)
WHEREAS, accessory dwelling units contribute needed housing to the community’s housing stock and provide housing for family members, students, the elderly, in-home health care providers, the disabled, and others within existing neighborhoods, and homeowners who create accessory dwelling units may benefit from added income and an increased sense of security; and WHEREAS, on October 10, 2025, SB 543 (McNerney) was signed into law, making changes to requirements for permitting timelines, fire sprinklers, fees, and unit size measurement for accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs); and WHEREAS, on October 10, 2025, AB 1154 (Carrillo) was signed into law, making changes to requirements for owner occupancy and rental terms for JADUs; and WHEREAS, on October 10, 2025, AB 462 (Lowenthal) was signed into law, making changes to requirements for processing timelines and appeals for Coastal Development Permits for ADUs; and
WHEREAS, amendments to municipal code requirements related to accessory dwelling units are needed to maintain consistency with state law; and WHEREAS, at its January 15, 2026 meeting, the Santa Cruz Planning Commission reviewed the proposed additions and modifications to the Santa Cruz Municipal Code and found that the public necessity, and the general community welfare, and good zoning practice shall be served and furthered; and that the proposed amendments are in general conformance with the principles, policies and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan; and

WHEREAS, at its January 15, 2026 meeting, the Santa Cruz Planning Commission passed a motion that recommended the City Council approve the proposed amendments as well as any additional changes needed to comply with state ADU law; and WHEREAS, the amendments to the Santa Cruz Municipal Code are needed to ensure consistency with state ADU law, and therefore pursuant to Public Resources Code Section 21080.17, no further environmental review under the California Environmental Quality Act (CEQA) is required; and

15.5 ORDINANCE NO. 2026-XX
WHEREAS, the amendments can be seen with certainty to have no possibility for causing a significant effect on the environment, and, therefore, pursuant to California Code of Regulations, Title 14, section 15183 of the CEQA Guidelines, no further environmental review under CEQA is required.

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

Section 1. Section 24.16.100 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Purpose is hereby amended to read as follows:

24.16.100 PURPOSE.

The ordinance codified in this part provides for accessory dwelling units in certain areas and on lots developed or proposed to be developed with single- or multifamily dwellings. Such accessory dwellings are allowed because they can contribute needed housing to the community’s housing stock. Accessory dwelling units provide housing for family members, students, the elderly, inhome health care providers, the disabled, and others within existing neighborhoods, and homeowners who create accessory dwelling units may benefit from added income and an increased sense of security.

In addition, the ordinance codified in this part provides a mechanism to grant legal status to existing illegally constructed accessory dwelling units in single-family neighborhoods. By encouraging legalization, safe dwellings may be added to the city’s existing housing supply.

Accessory dwelling units and junior accessory dwelling units are considered dwelling units for the purposes of meeting the city’s regional housing needs assessment allocation and for the purposes of replacement housing and relocation assistance requirements.

Thus, it is found that accessory dwelling units are a residential use that is consistent with the General Plan objectives and zoning regulations and that enhances housing opportunities throughout the city of Santa Cruz. To ensure that accessory dwelling units will conform to General Plan policy, the following regulations are established. If changes to state law result in any conflict with the following regulations, state law shall supersede the conflicting part(s) of these regulations.

Section 2. Section 24.16.125 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Definitions is hereby amended to read as follows:

24.16.125 DEFINITIONS.

The following definitions shall apply to accessory dwelling units throughout the municipal code:

1. “Attached accessory dwelling unit” shall mean an accessory dwelling unit that is attached to the primary dwelling, including to an attached garage.

2. “Conversion accessory dwelling unit” shall mean any accessory dwelling unit created by the conversion of any one permitted, entitled, or legal nonconforming building, or portion of such a building. The conversion accessory dwelling unit may either be converted utilizing the existing structural components of the building or reconstructed within the existing three15.6 ORDINANCE NO. 2026-XX
dimensional physical space occupied by the building. On property developed with multi-unit buildings, only areas that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, shall be eligible to become conversion accessory dwelling units. The limitation on converting non-livable space shall not apply to a nonconforming duplex on a single-family zoned lot where one unit is converted to an accessory dwelling unit to result in a single-family home and accessory dwelling unit on the site. Consistent with zoning standards, conversion accessory dwelling units shall be permitted to expand the existing footprint of the building by up to one hundred fifty square feet, and the existing height by up to two feet.

3. “Detached accessory dwelling unit” shall mean an accessory dwelling unit that is separated from any single- or multi-unit building.

4. “Livable space” shall mean a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.

5. “Multi-unit building” shall mean a building with two or more attached dwellings on a single lot, including apartment or condominium buildings that contain at least two units. Accessory dwelling units do not count toward the number of units in this calculation.

6. “New construction accessory dwelling unit” shall mean any accessory dwelling unit that includes new construction and that does not meet the definition and requirements for a conversion accessory dwelling unit.

7. “Nonexempt accessory dwelling unit” shall mean an accessory dwelling unit that does not meet the definition of a statewide exemption accessory dwelling unit.

8. “Primary dwelling” shall mean the dwelling unit with which the accessory dwelling unit or junior accessory dwelling unit is associated.

9. “Single-unit building” shall mean a structurally independent building that contains one dwelling unit. A single-unit building may be the only building on the lot, such as a singlefamily home or a townhome, or it may be a detached residential condominium or apartment unit on a lot with one or more other dwellings that are not attached to the single-unit building.

Accessory dwelling units do not count toward the number of units in this calculation.

10. “Statewide exemption accessory dwelling unit” shall mean an accessory dwelling unit that conforms to any of the following subsections (9)(a) through (e). None of the standards in Section 24.16.141 or 24.16.142 shall apply to a statewide exemption accessory dwelling unit. a. One accessory dwelling unit per lot with a proposed or existing single-unit building, including a single-family dwelling, townhome, or a detached residential condominium or apartment unit on a lot with multiple single-unit buildings, if all of the following apply:
i. The accessory dwelling unit is within the space of a proposed single-unit building or it is within the space of an existing single-unit building or detached accessory building.

15.7 ORDINANCE NO. 2026-XX
This type of statewide exemption accessory dwelling unit does not include a building reconstructed within the three-dimensional space of an existing building to be demolished.
ii. If the accessory dwelling unit is within the space of an existing detached accessory building, the accessory dwelling unit may include an expansion of not more than 150 square feet beyond the same physical dimensions as the existing accessory building.

An expansion beyond the physical dimensions of the existing building shall be limited to accommodating ingress and egress.
iii. The accessory dwelling unit has an exterior entrance separate from that of the primary dwelling unit.
iv. If the unit is converted within a building with legal nonconforming setbacks, the side and rear setbacks are sufficient for fire and safety.
b. One detached, new construction accessory dwelling unit that meets the following standards:
i. The accessory dwelling unit shall be located on a lot with a proposed or existing singleunit building, including a single-family dwelling, townhome, or a detached residential condominium or apartment unit on a site with multiple single-unit buildings. ii. The accessory dwelling unit size shall not exceed eight hundred square feet of livable space.
iii. Interior side yard and rear yard setbacks shall be at least four feet. iv. The accessory dwelling unit shall meet one of the following height limitations as measured to the roof peak:

1. A height of sixteen feet; or

2. A height of eighteen feet if the accessory dwelling unit is on a lot within one-half of one mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code.

This height can be increased an additional two feet to twenty feet to accommodate a roof pitch on the accessory dwelling unit that is aligned with the roof pitch of the primary dwelling unit.
c. Multiple accessory dwelling units within the portions of existing multi-unit buildings, including a residential condominium or apartment building with two or more attached units, that are not used as livable space, including but not limited to storage rooms, boiler rooms, passageways, attics, basements, or garages, if each unit complies with state building standards for dwellings. The number of accessory dwelling units permitted is equivalent to up to twenty-five percent of the number of existing, legally permitted units in the multi15.8 ORDINANCE NO. 2026-XX
unit building, or one, whichever is greater. When the twenty-five percent limit results in a fraction of a unit, the total number of accessory dwelling units that may be added shall be determined by rounding the fraction up to the next whole number. d. Multiple detached accessory dwelling units that are located on a lot with a multi-unit building, including a residential condominium or apartment building with two or more attached units, and that are either new construction or are converted from space within an existing building not used as livable space and detached from the multi-unit building.

Accessory dwelling units shall meet the following standards:
i. The number of permitted detached accessory dwelling units equals:

1. On a lot with an existing multi-unit building, not more than eight detached accessory dwelling units. However, the number of accessory dwelling units allowable pursuant to this clause shall not exceed the number of existing units on the lot.

2. On a lot with a proposed multi-unit building, not more than two detached accessory dwelling units.
ii. Rear and interior side yard setbacks shall be at least four feet. If the existing multi-unit building has a rear or interior side yard setback of less than four feet, the existing multiunit building will not be required to be modified to meet this setback. iii. The accessory dwelling units shall meet one of the following height limitations as measured to the roof peak:

1. A height of sixteen feet; or

2. A height of eighteen feet if the accessory dwelling unit is on a lot within one-half of one mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code.

This height can be increased an additional two feet to twenty feet to accommodate a roof pitch on the accessory dwelling unit that is aligned with the roof pitch of the primary dwelling unit; or

3. A height of eighteen feet for a detached accessory dwelling unit on a lot with an existing or proposed multi-unit, multistory building.
e. One junior accessory dwelling unit per lot zoned to allow single-family dwellings and with a proposed or existing single-unit building, including a single-family dwelling, townhome, or detached residential condominium or apartment unit on a lot with multiple detached single-unit dwellings. The junior accessory dwelling unit shall comply with the requirements of Section 24.16.170.

15.9 ORDINANCE NO. 2026-XX
Section 3. Section 24.16.130 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Permit Procedures is hereby amended to read as follows:

24.16.130 PERMIT PROCEDURES.

1. Accessory dwelling units shall be principally permitted uses within the zoning districts specified in Section 24.16.120 and subject to the development standards in Section 24.16.140 et seq., except that statewide exemption accessory dwelling units shall not be subject to the standards in Sections 24.16.141 and 24.16.142.

2. Completeness determination.
a. Within fifteen business days after the City receives an application to create or serve an accessory dwelling unit or junior accessory dwelling unit, the City shall determine whether the application is complete and provide written notice of that determination to the applicant.
b. Incomplete Applications. If the City determines the application is incomplete, the City shall provide, with the written notice, (1) a list of incomplete items and (2) a description of how the application can be made complete. After the applicant resubmits, the City shall not require any item that was not included in the City’s list of incomplete items. c. Deemed complete. If the City does not make a timely determination as required above, the application or resubmitted application shall be deemed complete for purposes of the time periods in this section.

3. City shall issue a ministerial building permit for an accessory dwelling unit or junior accessory dwelling unit without discretionary review or a hearing, consistent with the provisions of this chapter and state law, within sixty days of submittal of a complete building permit application, unless provided otherwise. The sixty-day review period shall not apply when:
a. The permit application to create an accessory dwelling unit or junior accessory dwelling unit requires simultaneous approval of a discretionary or building permit associated with creating a new single-unit or multi-unit building on the same lot or parcel. The City may delay approving or denying the building permit application for the accessory dwelling unit or the junior accessory dwelling unit until the City approves or denies the permit application to create the new single-unit or multi-unit building; or b. When the applicant seeks a delay for any reason, including but not limited to pursuit of a discretionary permit pursuant to subsection (9). The period of the delay shall not count toward the sixty-day time period.

4. If the City denies an application to create an accessory dwelling unit or junior accessory dwelling unit, the City must provide the applicant with comments that include, among other things, a list of all defective or deficient items and a description of how the application may be remedied by the applicant. Notice of the denial and corresponding comments must be provided to the applicant in accordance with the sixty-day time period set forth in subsection (2).

15.10 ORDINANCE NO. 2026-XX

5. If a permit application is determined to be incomplete under subsection (2) or denied under subsection (4), the applicant may appeal that decision in writing to the City planning commission pursuant to the requirements of Sections 24.04.182 and 24.04.183. Appeals on a determination made by the building official and/or fire marshal shall first be made to the board of building and fire appeals pursuant to Chapter 18.41, the decision of which may subsequently be appealed to the City planning commission. The City shall provide a final written determination by not later than 60 business days after receipt of the applicant’s written appeal.

A determination by the board of building and fire appeals or the City planning commission shall not be appealable to the City Council.

6. Construction of an accessory dwelling unit shall not constitute a Group R occupancy change under the local building code, except as specified under state law. Construction of an accessory dwelling unit or junior accessory dwelling unit shall not trigger a requirement for fire sprinklers to be installed in the existing single-unit or multi-unit building.

7. The City shall not require, as a condition for ministerial approval of a permit application for the creation of an accessory dwelling unit or a junior accessory dwelling unit, the correction of nonconforming zoning conditions, building code violations, or unpermitted structures unless they present a threat to public health and safety and are affected by the construction of the accessory dwelling unit.

8. The City shall not deny a building permit for an unpermitted accessory dwelling unit or unpermitted junior accessory dwelling unit that was constructed before January 1, 2020, due to noncompliance with any requirement of this part.

9. The City shall not require, and the applicant shall not be otherwise required, to provide written notice or post a placard for the demolition of a detached garage that is to be replaced with an accessory dwelling unit, unless the property is located within an architecturally and historically significant historic district.

10. An accessory dwelling unit replacing a detached garage shall receive review and issuance of a demolition permit concurrently with the review and issuance of the permit for the accessory dwelling unit.

11. To promote flexibility in siting of accessory dwelling units, nothing in this Part shall prohibit an applicant from pursuing a discretionary permit or review to construct an accessory dwelling unit on a lot that has a buildable area for at least eight hundred square feet of interior livable space with at least four foot side and rear yard setbacks for an attached or detached accessory dwelling unit with application of all site development standards or waivers as provided in Section 24.16.141 but where the applicant chooses to place the accessory dwelling unit in a location that does not meet such standards or waivers.

Section 4. Section 24.16.140 of Chapter 24.16 of the Santa Cruz Municipal Code regarding General Development Standards is hereby amended to read as follows:

15.11 ORDINANCE NO. 2026-XX

24.16.140 GENERAL DEVELOPMENT STANDARDS.

All accessory dwelling units, both new construction and conversion, shall conform to the following requirements:

1. Number of Accessory Dwelling Units per Parcel.
a. For parcels including a proposed or existing single-unit building, including a single-family home, townhome, or multiple detached dwellings, but not including any multifamily structures: One nonexempt accessory dwelling unit shall be allowed on each lot in addition to any statewide exemption accessory dwelling units. Each lot may also include a junior accessory dwelling unit conforming to the standards set forth in Section 24.16.170. b. For lots developed with one or more multi-unit buildings, including an apartment or condominium building with two or more dwelling units: no nonexempt accessory dwelling units shall be allowed. The number of statewide exemption accessory dwelling units allowed on each lot equals:
i. For units converted from areas not used as livable space within an existing multi-unit building , as defined in Section 24.16.125.10.c: at least one conversion accessory dwelling unit. Up to twenty-five percent of the number of existing dwellings in the multi-unit building may be added as conversion accessory dwelling units. When the twenty-five percent limit results in a fraction of a unit, the total number of accessory dwelling units that may be added shall be determined by rounding the fraction up to the next whole number.
ii. For units detached from a multi-unit building, including new construction or conversion from areas not used as livable space, as defined in Section 24.16.125.10.d:

1. On a lot with an existing multi-unit building, not more than eight detached accessory dwelling units. However, the number of accessory dwelling units allowable pursuant to this clause shall not exceed the number of existing units on the lot.

2. On a lot with a proposed multi-unit building, not more than two detached accessory dwelling units.

2. Existing Development on Lot. One of the following conditions must be present in order to approve an application to create an accessory dwelling unit:
a. One or more single-unit buildings, as defined in Section 24.16.125.9, exists on the lot or will be constructed concurrently and in conjunction with the accessory dwelling unit; b. Consistent with the provisions of Sections 24.16.125.10.c and 24.16.125.10.d, the lot contains an existing multi-unit building, as defined in Section 24.16.125.5, or a proposed multi-unit building that will be constructed concurrently and in conjunction with the accessory dwelling unit.

15.12 ORDINANCE NO. 2026-XX

3. Building Code Requirements. The accessory dwelling unit shall meet the requirements of the California Building Standards Code, including the alternative means and methods section as prescribed therein.

4. Large Home Design Permit. The square footage of an accessory dwelling unit shall not be counted with the square footage of the single-family home in determining whether a large home design permit is required. The square footage of a junior accessory dwelling unit shall be counted with the square footage of the single-family home in determining whether a large home design permit is required.

5. Accessory dwelling units in the coastal zone shall conform to the standards in Section 24.12.140.2.

Section 5. Section 24.16.141 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Site Development Standards for Nonexempt Accessory Dwelling Units is hereby amended to read as follows:

24.16.141 SITE DEVELOPMENT STANDARDS FOR NONEXEMPT ACCESSORY DWELLING UNITS.

Despite any directly conflicting zone district site development standards, all nonexempt accessory dwelling units shall comply with the following site development standards. All other zone district site development standards not listed here shall apply to nonexempt accessory dwelling units.

Neither the standards in this section nor any zone district site development standards shall apply to statewide exemption accessory dwelling units.

1. General.

Development
Standard Attached Conversion1,2 Detached
Maximum
Square Feet3
Interior livable space
the greatest of:
• 850 for a studio or
one bedroom.
• 1,000 for a unit with
two or more
bedrooms.
• 50% of the habitable
area of the primary
dwelling to which the
unit is attached.

Footprint of existing
building. Can expand
footprint by 150.4,5
Interior livable space
the greatest of:
• 850 for a studio or
one bedroom.
• 1,000 for a unit with
two or more
bedrooms.
• 10% net lot area and
no more than 1,200
square feet.

Maximum Height
(feet)6
Zone district standard
that applies to primary
dwelling.

Maintain existing, or expand
up to lesser of 2' or standard
for new construction
accessory dwelling unit.7
• 16' to roof peak if less
than 4' from side/rear
property line.
• 22' to roof peak if 4'
or more from side/rear
property line.

15.13 ORDINANCE NO. 2026-XX
Development
Standard Attached Conversion1,2 Detached
Minimum Front
Setback (feet)
Zone district standard
that applies to primary
dwelling.

Maintain existing. Any
expansion shall meet new
construction standard.

Lesser of:
• Front wall line of
primary building,
excluding any
projections from that
line.
• Zone district
standard.

Minimum Rear
Setback (feet)
4' Maintain existing. Any
expansion shall meet new
construction standard.
3' for up to 16' height.
4' above 16' height.

Minimum
Exterior Side
Yard Setback
Zone district standard
that applies to primary
dwelling.

Maintain existing. Any
expansion shall meet new
construction standard.

Zone district standard.

Minimum
Interior Side
Yard Setback
4'8 Maintain existing. Any
expansion shall meet new
construction standard.
3' for up to 16' height.
4' above 16' height.

Minimum
Distance
Between
Buildings
6' Maintain existing.
6' for any expansion.
6'

1. Conversion accessory dwelling units may occupy the three-dimensional space, including setbacks, lot coverage, and height, of the building to be converted or reconstructed, regardless of conformance to current zoning standards.

2. A conversion accessory dwelling unit with any expansion in excess of the above thresholds shall be reviewed as a new construction accessory dwelling unit, including assessment of any required fees.

3. Stairways that provide access to accessory dwelling units do not count toward the interior livable space of an accessory dwelling unit when the stairs are not part of the conditioned space, the stairs do not include any other rooms or room-like areas that would function as interior livable space for the accessory dwelling unit, and there is a fire-rated entry door at the top of the stairs at the entrance to the accessory dwelling unit.

4. An expansion of up to one hundred fifty square feet shall not enlarge the accessory dwelling unit beyond one thousand two hundred square feet unless necessary to accommodate ingress and egress to the accessory dwelling unit.

5. Expansions detached from the primary dwelling shall meet height and setback requirements for a new construction detached accessory dwelling unit. Expansions attached to the primary dwelling shall meet height and setback requirements for new construction attached dwelling

15.14 ORDINANCE NO. 2026-XX
Development
Standard Attached Conversion1,2 Detached
units. Expansions of either type on a substandard lot shall be consistent with substandard lot development standards described in subsection (7).

6. If the design of the building in which the primary dwelling is located has special roof features that should be matched on the detached accessory dwelling unit to enhance design compatibility, the maximum allowed building height of the accessory dwelling unit may be exceeded in order to include such similar special roof features, subject to review and approval of the zoning administrator as part of the review of the building permit application.

7. Existing and resulting roof height are measured to the roof peak. Other portions of the roof may expand more than two feet if their resulting height is the same or lower than the resulting roof peak.

8. Any zone development standard for an additional setback based on building height or stories shall not apply to the portion of the building that contains the accessory dwelling unit.

2. Parking. No off-street parking shall be required for any accessory dwelling unit outside of the Coastal Zone. Any parking spaces, covered or uncovered, removed in order to create an accessory dwelling unit shall not be required to be replaced outside the Coastal Zone. For properties within the Coastal Zone, parking requirements are contained in Section 24.12.240(1).

3. Rear Yard Lot Coverage. In no case shall any accessory dwelling unit be limited in size based on rear yard lot coverage requirements contained in Section 24.12.140(1)(f). In the application of Section 24.12.140(1)(f), the footprint of accessory dwelling units shall not count toward the maximum allowable lot coverage by accessory buildings in yard setback areas.

4. Projections. An accessory dwelling unit that meets the standard zone district setbacks shall be permitted to include projections as described in Section 24.12.120(1). An accessory dwelling unit, or portion thereof, that does not meet standard zone district setbacks but meets standard setbacks for new construction accessory dwelling units shall be permitted to include architectural features such as cornices, canopies, eaves, and sills that project into the setback two and one-half feet. A conversion accessory dwelling unit, or portion thereof, that does not meet standard setbacks for new construction accessory dwelling units shall not contain any new projections beyond any already present on the existing wall.

5. If a new construction detached accessory dwelling unit is attached to a non-habitable accessory use within the same building, then the portion of the building containing the non-habitable use shall meet the site development standards for non-habitable accessory buildings as described in Section 24.12.140. A garage may have interior access to an accessory dwelling unit, but no other non-habitable accessory use within the same building shall have interior access to the accessory dwelling unit.

6. Clear corner triangle and clear vision area. Any new construction accessory dwelling unit or expansion of a conversion accessory dwelling unit shall be located outside of the clear corner

15.15 ORDINANCE NO. 2026-XX
triangle, as defined in Section 24.22.202, and the clear vision area, as defined in Section 24.22.206.

7. Substandard Lots. When a new construction accessory dwelling unit is proposed on a substandard residential lot, as defined in Section 24.22.520, that contains a single-family residential use, the following design standards shall apply:
a. The maximum allowable lot coverage for all structures shall be forty-five percent, except that lot coverage shall be waived to the extent that it physically precludes the construction of the accessory dwelling unit up to eight hundred square feet of interior livable space. The lot coverage of the accessory dwelling unit shall not be included in the calculation of all other structures’ maximum allowable lot coverage. Lot coverage shall include the footprints of the first floor, garage and other accessory buildings (attached and detached), decks and porches (greater than thirty inches in height and not cantilevered), and any second-story cantilevered projection (enclosed or open) beyond two and one-half feet.

Decks under thirty inches in height or fully cantilevered with no vertical support posts do not count toward lot coverage for this purpose. Second-story enclosed cantilevered areas that project less than thirty inches from the building wall do not count toward lot coverage.

For such areas that project more than thirty inches from the building wall, only the floor area that projects more than thirty inches shall be counted toward lot coverage. b. The floor area of a building’s second story shall be limited to one hundred percent of the floor area of the building’s first story if the floor area of the building’s first story constitutes thirty percent or less lot coverage.
c. The floor area of a building’s second story shall not exceed fifty percent of the floor area of the building’s first story if the building’s first story has greater than thirty percent lot coverage up to a maximum of forty-five percent lot coverage. d. The floor area of a building’s second story shall be limited to fifty percent of forty-five percent lot coverage if the building’s first story has greater than forty-five percent lot coverage.

8. Archaeological Resources. The application shall be consistent with all objective standards relating to the preservation of archaeological resources pursuant to Section 24.12.430.

9. Distance from Natural Features. Any new construction accessory dwelling unit or expansion of a conversion accessory dwelling unit shall be consistent with the following standards for distance from natural features:
a. The accessory dwelling unit shall not be constructed within any watercourse setback designated within the City-Wide Creeks and Wetlands Management Plan that does not allow for construction of an accessory dwelling unit by right, as implemented by Section 24.08.2100 et seq.

15.16 ORDINANCE NO. 2026-XX
b. If the site or an adjacent lot contains a wetland or potential wetland as shown in the Citywide Creeks and Wetlands Management Plan, the accessory dwelling unit shall be located at a distance from the wetland as recommend in a report prepared by a professional biologist with a background in wetland biology.
c. The accessory dwelling unit shall not be constructed within twenty feet of a thirty percent or greater slope.
d. The accessory dwelling unit and any related construction and site work shall be located away from a heritage tree, or any street tree growing in the public right-of-way protected under Chapter 13.30, the greatest distance of: ten feet, or three times the diameter of the tree’s largest trunk at fifty-four inches above grade, or the dripline of the tree. e. When the project site includes an area mapped for sensitive habitat or vegetation under the general plan, the accessory dwelling unit and related site work shall be located at a distance from such habitat or vegetation area as determined in a report prepared pursuant to Section 24.14.080 by a professional biologist with a background in sensitive habitat biology.

10. If the application of all site development standards results in a buildable area that physically precludes the creation of any attached or detached accessory dwelling unit of up to eight hundred square feet of interior livable space with at least four foot interior side and rear yard setbacks, then the applicant may waive any one or more of the following site development standards only to the extent that it increases the buildable area to allow such an accessory dwelling unit:
a. Percentage of primary dwelling, and/or
b. Lot coverage, and/or
c. Floor area ratio, and/or
d. Open space, and/or
e. Front setbacks.

Section 6. Section 24.16.142 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Nonexempt Accessory Dwelling Unit Design Standards is hereby amended to read as follows:

24.16.142 NONEXEMPT ACCESSORY DWELLING UNIT DESIGN STANDARDS.

Nonexempt accessory dwelling units shall comply with the following design standards. These standards shall not apply to statewide exemption accessory dwelling units.

1. Municipal Code Requirements. All nonexempt accessory dwelling units shall meet the objective design standards set forth in this code, including landscape and tree removal and/or replacement requirements.

15.17 ORDINANCE NO. 2026-XX

2. The following standards apply to nonexempt accessory dwelling units that do not meet one or more of the standard setbacks for the zone district in which they are proposed:
a. All entrances to the accessory dwelling unit, access stairs, and second story decks shall not be located on the side of the building facing the setback that is less than the zone district standard unless such that side of the building adjacent to an alley or a public street. b. When an accessory dwelling unit is adjacent to an alley or a public street, the accessory dwelling unit shall be oriented toward the alley or street with the front access door and windows facing the alley or street. The entry facing the alley or street shall include a minimum of twelve square feet of flat, unenclosed, covered area, which may be a projection from the building, or inset, or a combination of the two. c. Windows that do not meet the standard zone district side or rear setback and that face an adjoining residential property shall be designed to obscure views of that property by accessory dwelling unit occupants, including transom windows, translucent glass, or other methods; alternatively, fencing or landscaping shall be required to provide screening.

3. Connections Between Units. Nonexempt accessory dwelling units shall not create access between units except a connection between the accessory dwelling unit and the primary dwelling via common access to a shared garage, laundry room, or storage area; provided that each unit meets the definition of dwelling unit found in Section 24.22.320.

4. The application to construct a nonexempt accessory dwelling unit on a property that is designated as a historic resource by the National Register of Historic Places, the state of California, or by the City, including any property that has been determined to be eligible for the city’s historic building survey list but the property owner has elected to not list the property (opt-out), shall show substantial compliance with the guidelines of the Secretary of the Interior for development on such properties as confirmed in a report prepared by a professional historic consultant who is listed on the department of planning and community development’s approved consultant list.

Section 7. Section 24.16.160 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Zoning Incentives is hereby amended to read as follows:

24.16.160 ZONING INCENTIVES.

The following incentives are to encourage construction of accessory dwelling units:

1. Affordability Requirements for Fee Waivers. Accessory dwelling units proposed to be rented at affordable rents, as established by the City, may have development fees waived per Part 4 of this chapter. Existing dwelling units shall be relieved of the affordability requirement upon payment of fees in the amount previously waived plus the difference between that amount and the fees in effect at the time of repayment.

2. Front or Exterior Yard Parking. Three parking spaces may be provided in the front or exterior yard setback under this incentive with the parking design subject to approval of the zoning administrator. The maximum impervious surfaces devoted to the parking area shall be no

15.18 ORDINANCE NO. 2026-XX
greater than the existing driveway surfaces at time of application. Not more than fifty percent of the front yard width shall be allowed to be parking area.

3. Tandem Parking. For a parcel with a permitted accessory dwelling unit, required parking spaces for the primary single-family dwelling and the accessory dwelling unit may be provided in tandem on a driveway. A tandem arrangement consists of one car behind the other. No more than three total cars in tandem may be counted towards meeting the parking requirement.

Section 8. Section 24.16.165 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Separate Sale of Accessory Dwelling Units is hereby amended to read as follows:

24.16.165 SEPARATE SALE OF ACCESSORY DWELLING UNITS.

1. This section implements Government Code Section 66342, enacted by Assembly Bill 1033 (Ting). The purpose of this section is to apply objective local development standards for subdivisions covered by Government Code Section 66342 and is applicable only so long as Government Code Section 66342 is operative. Where this section or Government Code Section 66342 conflicts with any other provisions of the municipal code, this section and Government Code Section 66342 shall control. Any development standard or requirement not specifically addressed by this section or Government Code Section 66342 must conform to all other provisions of the municipal code and all other objective policies and requirements governing subdivisions.

2. Condominium parcels for the separate conveyance of one or more accessory dwelling unit(s) and their associated primary dwelling unit may be created on lots with single-unit buildings, and condominium parcels for the separate conveyance of one or more accessory dwelling unit(s) may be created on lots with multi-unit buildings, and such condominium parcels shall be approved only as provided by this section.

3. Creation of condominium parcels for five or more accessory dwelling units shall require approval of a tentative map and final map consistent with the requirements of Title 23.

4. Creation of four or fewer condominium parcels for accessory dwelling units and associated primary dwellings shall require approval of a parcel map consistent with the requirements of Title 23.

5. Units mapped under the provisions of this section shall not be required to comply with the community housing project requirements under Section 24.12.180, except:
a. Each accessory dwelling unit or primary dwelling unit proposed for new construction concurrently with condominium mapping shall meet the open space requirement pursuant to Section 24.12.180.3 unless waived pursuant to Section 24.16.141.10.d; and b. Each new construction accessory dwelling unit or new construction primary dwelling unit shall provide a minimum of two hundred cubic feet of enclosed storage space within the project capable of being secured by lock or other means for each unit, in addition to kitchen cupboards or clothes and linen closets, consistent with Section 24.12.180(4).

15.19 ORDINANCE NO. 2026-XX

6. No off-street parking beyond that required by Section 24.16.141.2 shall be required for any accessory dwelling unit mapped as a condominium.

7. Accessory dwelling units and associated primary dwelling units mapped as condominiums pursuant to this section shall meet the inclusionary dwelling unit requirements under Section 24.16.020.

8. When no more than four condominium units are created from the conversion of existing accessory dwelling units and associated primary dwellings, the following shall apply:
a. The units may be converted to condominiums regardless of the multifamily housing vacancy rate consistent with Section 23.37.020.1.
b. Tenants displaced shall retain a first right of refusal if the unit is offered to sale to the general public consistent with Section 23.37.050(g). c. Relocation assistance in the amount of four months’ rent shall be provided to tenants of low or moderate income who have resided in the unit within two years prior to the date of submission of the application for the conversion of the unit(s) consistent with Section 23.37.050(h).

9. Consistent with Government Code Section 66341, an accessory dwelling unit shall be approved with a condominium lot for separate conveyance pursuant to the following:
a. The condominiums shall be created pursuant to the Davis-Stirling Common Interest Development Act (Part 5 (commencing with Section 4000) of Division 4 of the Civil Code).
b. The condominiums shall be created in conformance with all applicable objective requirements of the Subdivision Map Act (Division 2 (commencing with Section 66410)) and all applicable objective requirements of Title 23, the Subdivision Ordinance. c. Before recordation of the condominium plan, a safety inspection of the accessory dwelling unit shall be conducted as evidenced either through a certificate of occupancy from the City or a housing quality standards report from a building inspector certified by the United States Department of Housing and Urban Development.
d. Neither a subdivision map nor a condominium plan shall be recorded with the county recorder in the county where the real property is located without each lienholder’s consent.

The following shall apply to the consent of a lienholder:
i. A lienholder may refuse to give consent.
ii. A lienholder may consent provided that any terms and conditions required by the lienholder are satisfied.

15.20 ORDINANCE NO. 2026-XX
e. Prior to recordation of the initial or any subsequent modifications to the condominium plan, written evidence of the lienholder’s consent shall be provided to the county recorder along with a signed statement from each lienholder that states as follows:
(Name of lienholder) hereby consents to the recording of this condominium plan in their sole and absolute discretion and the borrower has or will satisfy any additional terms and conditions the lienholder may have.
f. The lienholder’s consent shall be included on the condominium plan or a separate form attached to the condominium plan that includes the following information:
i. The lienholder’s signature.
ii. The name of the record owner or ground lessee.
iii. The legal description of the real property.
iv. The identities of all parties with an interest in the real property as reflected in the real property records.
v. The lienholder’s consent shall be recorded in the office of the county recorder of the county in which the real property is located.
g. The City shall include the following notice to consumers on any accessory dwelling or junior accessory dwelling unit submittal checklist or public information issued describing requirements and permitting for accessory dwelling units, including as standard condition of any accessory dwelling unit building permit or condominium plan approval:

NOTICE: If you are considering establishing your primary dwelling unit and accessory dwelling unit as a condominium, please ensure that your building permitting agency allows this practice. If you decide to establish your primary dwelling unit and accessory dwelling unit as a condominium, your condominium plan or any future modifications to the condominium plan must be recorded with the County Recorder. Prior to recordation or modification of your subdivision map and condominium plan, any lienholder with a lien on your title must provide a form of written consent either on the condominium plan, or on the lienholder’s consent form attached to the condominium plan, with text that clearly states that the lender approves recordation of the condominium plan and that you have satisfied their terms and conditions, if any.

In order to secure lender consent, you may be required to follow additional lender requirements, which may include, but are not limited to, one or more of the following:
(a) Paying off your current lender. You may pay off your mortgage and any liens through a refinance or a new loan. Be aware that refinancing or using a new loan may result in changes to your interest rate or tax basis. Also, be aware that any subsequent modification

15.21 ORDINANCE NO. 2026-XX
to your subdivision map or condominium plan must also be consented to by your lender, which consent may be denied.
(b) Securing your lender’s approval of a modification to their loan collateral due to the change of your current property legal description into one or more condominium parcels. (c) Securing your lender’s consent to the details of any construction loan or ground lease.

This may include a copy of the improvement contract entered in good faith with a licensed contractor, evidence that the record owner or ground lessee has the funds to complete the work, and a signed statement made by the record owner or ground lessor that the information in the consent above is true and correct.
h. If an accessory dwelling unit is established as a condominium, the homeowner shall notify providers of utilities, including water, sewer, gas, and electricity, of the condominium creation and separate conveyance.
i. The owner of a property or a separate interest within an existing planned development that has an existing association, as defined in Section 4080 of the Civil Code, shall not record a condominium plan to create a common interest development under Section 4100 of the Civil Code without the express written authorization by the existing association. For purposes of this section, written authorization by the existing association means approval by the board at a duly noticed board meeting, as defined in Section 4090 of the Civil Code, and if needed pursuant to the existing association’s governing documents, membership approval of the existing association.

10. Nothing in this section shall prohibit approval of an accessory dwelling with a condominium lot for separate conveyance pursuant to Government Code Sections 66340 through 66341.

Section 9. Section 24.16.170 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Junior Accessory Dwelling Units is hereby amended to read as follows:

24.16.170 JUNIOR ACCESSORY DWELLING UNITS.

1. Notwithstanding any other regulation or definition of this code, one junior accessory dwelling unit shall be permitted per lot in zones where single-family dwellings are an allowed use, including in the R-S, R-1, R-L, R-M, R-H, R-T(A), R-T(B), R-T(C), R-T(D), R-T(E), and PA zones; where one or more single-unit buildings, including a single-family home, townhome, or a detached condominium or apartment on a site with multiple units, exist or are proposed on the lot. Where multiple detached single-unit condominium buildings exist on a lot, the underlying lot shall have no more than one junior accessory dwelling unit.

2. For the purposes of this section, “junior accessory dwelling unit” shall have the same meaning as defined in Section 66313 of the California Government Code.

3. Junior accessory dwelling units shall be attached to a single-unit building and may be created in any part of an existing or proposed single-unit building, including in an attached garage. For purposes of this section, a “proposed single-unit building” shall mean the resulting building

15.22 ORDINANCE NO. 2026-XX
including the junior accessory dwelling unit, regardless of whether portions of the building already exist, and shall therefore include any new single-unit building or a single-unit building resulting from an addition to an existing single-unit building.

4. The junior accessory shall meet the same zoning district site development standards that apply to the primary dwelling.

5. Junior accessory dwelling units shall be no larger than five hundred square feet of interior livable space in size.

6. Junior accessory dwelling units shall contain, at a minimum, the following features:
a. An exterior entrance separate from that of the primary dwelling. b. A cooking facility with appliances.
c. A food preparation counter and storage cabinets of reasonable size in relation to the size of the junior accessory dwelling unit.

7. Junior accessory dwelling units may include separate sanitation facilities or may share sanitation facilities with the primary dwelling. Where sanitation facilities are shared with the primary dwelling, the junior accessory dwelling unit shall have access to the primary dwelling through internal circulation and shall not be required to exit the building in order to reach the entrance to the primary dwelling.

8. If the junior accessory dwelling unit has shared sanitation facilities with the primary dwelling, the property owner shall occupy either the junior accessory dwelling unit or the primary dwelling to which the junior accessory dwelling unit is attached as his or her principal place of residence. Owner occupancy shall not be required if the junior accessory dwelling unit has separate sanitation facilities, or if the owner is another governmental agency, land trust, or housing organization.
a. For purposes of this section, the property owner is:
i. The majority owner(s) of the property as shown in the most recent Santa Cruz County records.
ii. If there is more than one property owner of record, the owner with the majority or highest ownership interest in the property shall be deemed the property owner. Any property owner(s) of record holding an equal share interest in the property may be deemed the majority property owner(s) if no other property owner owns a greater interest.
iii. For property held by a corporation or business entity, a shareholder or officer of the corporation or business entity with the greatest shares or business interest as defined in the articles of incorporation, or other applicable business document.

15.23 ORDINANCE NO. 2026-XX
iv. For property held in trust: (a) the trustor(s) or settlor(s) who created the trust in which the property is held; or any person(s) or entity deemed as the legal owner of the property held in trust in accordance with the trust document, and (b) who has/have the highest ownership interest in the property.

9. Before obtaining a building permit for a junior accessory dwelling unit, the property owner shall file with the county recorder a declaration of restrictions containing a reference to the deed under which the property was acquired by the present owner and including:
a. A prohibition on the sale of the junior accessory dwelling unit separate from the sale of the single-unit building, including a statement that the deed restriction may be enforced against future purchasers.
b. A restriction on the size and attributes of the junior accessory dwelling unit that conforms with the standards in this section.
c. A requirement that the rental of the junior accessory dwelling unit be for a term longer than 30 days.

Section 10. The City Council finds and determines that the adoption of this ordinance is considered a “project” under California Code of Regulations, Title 14, section 15378(a)(1) of the California Environmental Quality Act (CEQA) Guidelines, typically subject to environmental review. The City Council finds that these amendments to the Santa Cruz Municipal Code are needed to ensure consistency with state ADU law, and therefore pursuant to Public Resources Code Section 21080.17, no further environmental review under the California Environmental Quality Act (CEQA) is required; and these amendments can be seen with certainty to have no possibility for causing a significant effect on the environment, and, therefore, pursuant to California Code of Regulations, Title 14, section 15183 of the CEQA Guidelines, no further environmental review under CEQA is required.

Section 11. 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 12. This ordinance shall take effect and be in full force thirty (30) days after final adoption.

PASSED FOR PUBLICATION this 10th day of February 2026, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

15.24 ORDINANCE NO. 2026-XX
APPROVED: __________________________
Fred Keeley, Mayor
ATTEST: ___________________________
Bonnie Bush, City Clerk Administrator
PASSED FOR FINAL ADOPTION this 24th day of February 2026 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. 2026-XX
and that it has been published or
posted in accordance with the
Charter of the City of Santa Cruz.
___________________________
Bonnie Bush, City Clerk Administrator

15.25 ORDINANCE NO.

AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING SANTA CRUZ MUNICIPAL CODE CHAPTER 24.16 PART 2 – ACCESSORY DWELLING UNITS, TO

MAINTAIN CONSISTENCY WITH STATE REGULATIONS FOR ACCESSORY DWELLING UNITS AND TO CLARIFY EXISTING REGULATINOS. (CEQA: EXEMPT PURSUANT TO PUBLIC RESOURCES CODE SECTION 21080.17 AS AN ORDINANCE

TO IMPLEMENT ACCESSORY DWELLING UNIT STATE LAW AND 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.)
WHEREAS, accessory dwelling units contribute needed housing to the community’s housing stock and provide housing for family members, students, the elderly, in-home health care providers, the disabled, and others within existing neighborhoods, and homeowners who create accessory dwelling units may benefit from added income and an increased sense of security; and WHEREAS, on October 10, 2025, SB 543 (McNerney) was signed into law, making changes to requirements for permitting timelines, fire sprinklers, fees, and unit size measurement for accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs); and WHEREAS, on October 10, 2025, AB 1154 (Carrillo) was signed into law, making changes to requirements for owner occupancy and rental terms for JADUs; and WHEREAS, on October 10, 2025, AB 462 (Lowenthal) was signed into law, making changes to requirements for processing timelines and appeals for Coastal Development Permits for ADUs; and
WHEREAS, amendments to municipal code requirements related to accessory dwelling units are needed to maintain consistency with state law; and WHEREAS, at its January 15, 2026 meeting, the Santa Cruz Planning Commission reviewed the proposed additions and modifications to the Santa Cruz Municipal Code and found that the public necessity, and the general community welfare, and good zoning practice shall be served and furthered; and that the proposed amendments are in general conformance with the principles, policies and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan; and

WHEREAS, at its January 15, 2026 meeting, the Santa Cruz Planning Commission passed a motion that recommended the City Council approve the proposed amendments as well as any additional changes needed to comply with state ADU law; and WHEREAS, the amendments to the Santa Cruz Municipal Code are needed to ensure consistency with state ADU law, and therefore pursuant to Public Resources Code Section 21080.17, no further environmental review under the California Environmental Quality Act (CEQA) is required; and

15.26 ORDINANCE NO.

WHEREAS, the amendments can be seen with certainty to have no possibility for causing a significant effect on the environment, and, therefore, pursuant to California Code of Regulations, Title 14, section 15183 of the CEQA Guidelines, no further environmental review under CEQA is required.

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

Section 1. Section 24.16.100 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Purpose is hereby amended to read as follows:

24.16.100 PURPOSE.

The ordinance codified in this part provides for accessory dwelling units in certain areas and on lots developed or proposed to be developed with single- or multifamily dwellings. Such accessory dwellings are allowed because they can contribute needed housing to the community’s housing stock. Accessory dwelling units provide housing for family members, students, the elderly, in-home health care providers, the disabled, and others within existing neighborhoods, and homeowners who create accessory dwelling units may benefit from added income and an increased sense of security.

In addition, the ordinance codified in this part provides a mechanism to grant legal status to existing illegally constructed accessory dwelling units in single-family neighborhoods. By encouraging legalization, safe dwellings may be added to the city’s existing housing supply.

Accessory dwelling units and junior accessory dwelling units are considered dwelling units for the purposes of meeting the city’s regional housing needs assessment allocation and for the purposes of replacement housing and relocation assistance requirements.

Thus, it is found that accessory dwelling units are a residential use that is consistent with the General Plan objectives and zoning regulations and that enhances housing opportunities throughout the city of Santa Cruz. To ensure that accessory dwelling units will conform to General Plan policy, the following regulations are established. If changes to state law result in any conflict with the following regulations, state law shall supersede the conflicting part(s) of these regulations when the state law is more permissive. When local law is more permissive, local law shall prevail. .

Section 2. Section 24.16.125 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Definitions is hereby amended to read as follows:

24.16.125 DEFINITIONS.

The following definitions shall apply to accessory dwelling units throughout the municipal code:

15.27 ORDINANCE NO.

1. “Attached accessory dwelling unit” shall mean an accessory dwelling unit that is attached to the primary dwelling, including to an attached garage.

2. “Conversion accessory dwelling unit” shall mean any accessory dwelling unit created by the conversion of any one permitted, entitled, or legal nonconforming building, or portion of such a building. The conversion accessory dwelling unit may either be converted utilizing the existing structural components of the building or reconstructed within the existing threedimensional physical space occupied by the building. On property developed with multi-unit buildings, only areas that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, shall be eligible to become conversion accessory dwelling units. The limitation on converting non-livable space shall not apply to a nonconforming duplex on a single-family zoned lot where one unit is converted to an accessory dwelling unit to result in a single-family home and accessory dwelling unit on the site. Consistent with zoning standards, conversion accessory dwelling units shall be permitted to expand the existing footprint of the building by up to one hundred fifty square feet, and the existing height by up to two feet.

3. “Detached accessory dwelling unit” shall mean an accessory dwelling unit that is separated from any single- or multi-unit building.

3.4. “Livable space” shall mean a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.

4.5. “Multi-unit building” shall mean a building with two or more attached dwellings on a single lot, including apartment or condominium buildings that contain at least two units.

Accessory dwelling units do not count toward the number of units in this calculation.

5.6. “New construction accessory dwelling unit” shall mean any accessory dwelling unit that includes new construction and that does not meet the definition and requirements for a conversion accessory dwelling unit.

6.7. “Nonexempt accessory dwelling unit” shall mean an accessory dwelling unit that does not meet the definition of a statewide exemption accessory dwelling unit.

7.8. “Primary dwelling” shall mean the dwelling unit with which the accessory dwelling unit or junior accessory dwelling unit is associated.

8.9. “Single-unit building” shall mean a structurally independent building that contains one dwelling unit. A single-unit building may be the only building on the lot, such as a singlefamily home or a townhome, or it may be a detached residential condominium or apartment

15.28 ORDINANCE NO.
unit on a lot with one or more other dwellings that are not attached to the single-unit building. Accessory dwelling units do not count toward the number of units in this calculation.

9.10. “Statewide exemption accessory dwelling unit” shall mean an accessory dwelling unit that conforms to any of the following subsections (9)(a) through (e). None of the standards in Section 24.16.141 or 24.16.142 shall apply to a statewide exemption accessory dwelling unit. a. One accessory dwelling unit per lot with a proposed or existing single-unit building, including a single-family dwelling, townhome, or a detached residential condominium or apartment unit on a lot with multiple single-unit buildings, if all of the following apply:
i. The accessory dwelling unit is within the proposed space of a proposed single-unit building or it is within the existing space of an existing single-unit building or detached accessory building. This type of statewide exemption accessory dwelling unit does not include a building reconstructed within the three-dimensional space of an existing building to be demolished.
ii. If the accessory dwelling unit is within the space of an existing detached accessory building, the accessory dwelling unit may include an expansion of not more than 150 square feet beyond the same physical dimensions as the existing accessory building.

An expansion beyond the physical dimensions of the existing building shall be limited to accommodating ingress and egress.
iii. The accessory dwelling unit has an exterior entrance separate from that of the primary dwelling unit.
iv. If the unit is converted within a building with legal nonconforming setbacks, the side and rear setbacks are sufficient for fire and safety.
b. One detached, new construction accessory dwelling unit that meets the following standards:
i. The accessory dwelling unit shall be located on a lot with a proposed or existing single-unit building, including a single-family dwelling, townhome, or a detached residential condominium or apartment unit on a site with multiple single-unit buildings.
ii. The accessory dwelling unit size shall not exceed eight hundred square feet of livable spacein floor area.

15.29 ORDINANCE NO.
iii. Interior side yard and rear yard setbacks shall be at least four feet. iv. The accessory dwelling unit shall meet one of the following height limitations as measured to the roof peak:

1. A height of sixteen feet; or

2. A height of eighteen feet if the accessory dwelling unit is on a lot within one-half of one mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code. This height can be increased an additional two feet to twenty feet to accommodate a roof pitch on the accessory dwelling unit that is aligned with the roof pitch of the primary dwelling unit.
c. Multiple accessory dwelling units within the portions of existing multi-unit buildings, including a residential condominium or apartment building with two or more attached units, that are not used as livable space, including but not limited to storage rooms, boiler rooms, passageways, attics, basements, or garages, if each unit complies with state building standards for dwellings. The number of accessory dwelling units permitted is equivalent to up to twenty-five percent of the number of existing, legally permitted units in the multi-unit building, or one, whichever is greater. When the twenty-five percent limit results in a fraction of a unit, the total number of accessory dwelling units that may be added shall be determined by rounding the fraction up to the next whole number. d. Multiple detached accessory dwelling units that are located on a lot with a multi-unit building, including a residential condominium or apartment building with two or more attached units, and that are either new construction or are converted from space within an existing building not used as livable space and detached from the multi-unit building.

Accessory dwelling units shall meet the following standards:
i. The number of permitted detached accessory dwelling units equals:

1. On a lot with an existing multi-unit building, not more than eight detached accessory dwelling units. However, the number of accessory dwelling units allowable pursuant to this clause shall not exceed the number of existing units on the lot.

2. On a lot with a proposed multi-unit building, not more than two detached accessory dwelling units.

15.30 ORDINANCE NO.
ii. Rear and interior side yard setbacks shall be at least four feet. If the existing multiunit building has a rear or interior side yard setback of less than four feet, the existing multi-unit building will not be required to be modified to meet this setback. iii. The accessory dwelling units shall meet one of the following height limitations as measured to the roof peak:

1. A height of sixteen feet; or

2. A height of eighteen feet if the accessory dwelling unit is on a lot within one-half of one mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code. This height can be increased an additional two feet to twenty feet to accommodate a roof pitch on the accessory dwelling unit that is aligned with the roof pitch of the primary dwelling unit; or

3. A height of eighteen feet for a detached accessory dwelling unit on a lot with an existing or proposed multi-unit, multistory building.
e. One junior accessory dwelling unit per lot zoned to allow single-family dwellings and with a proposed or existing single-unit building, including a single-family dwelling, townhome, or detached residential condominium or apartment unit on a lot with multiple detached single-unit dwellings. The junior accessory dwelling unit shall comply with the requirements of Section 24.16.170.

Section 3. Section 24.16.130 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Permit Procedures is hereby amended to read as follows:

24.16.130 PERMIT PROCEDURES.

1. Accessory dwelling units shall be principally permitted uses within the zoning districts specified in Section 24.16.120 and subject to the development standards in Section 24.16.140 et seq., except that statewide exemption accessory dwelling units shall not be subject to the standards in Sections 24.16.141 and 24.16.142.

2. Completeness determination.
a. Within fifteen business days after the City receives an application to create or serve an accessory dwelling unit or junior accessory dwelling unit, the City shall determine

15.31 ORDINANCE NO.
whether the application is complete and provide written notice of that determination to the applicant.
b. Incomplete Applications. If the City determines the application is incomplete, the City shall provide, with the written notice, (1) a list of incomplete items and (2) a description of how the application can be made complete. After the applicant resubmits, the City shall not require any item that was not included in the City’s list of incomplete items. c. Deemed complete. If the City does not make a timely determination as required above, the application or resubmitted application shall be deemed complete for purposes of the time periods in this section.

1.3. City shall issue a ministerial building permit for an accessory dwelling unit or junior accessory dwelling unit without discretionary review or a hearing, consistent with the provisions of this chapter and state law, within sixty days of submittal of a complete building permit application, unless provided otherwise. The sixty-day review period shall not apply when:
a. The permit application to create an accessory dwelling unit or junior accessory dwelling unit requires simultaneous approval of a discretionary or building permit associated with creating a new single-unit or multi-unit building on the same lot or parcel. The Ccity may delay approving or denying the building permit application for the accessory dwelling unit or the junior accessory dwelling unit until the Ccity approves or denies the permit application to create the new single-unit or multi-unit building; or b. When the applicant seeks a delay for any reason, including but not limited to pursuit of a discretionary permit pursuant to subsection (9). The period of the delay shall not count toward the sixty-day time period.

2.4. If the Ccity denies an application to create an ADU accessory dwelling unit or JADUjunior accessory dwelling unit, the Ccity must provide the applicant with comments that include, among other things, a list of all defective or deficient items and a description of how the application may be remedied by the applicant. Notice of the denial and corresponding comments must be provided to the applicant in accordance with the sixty-day time period set forth in subsection (2).

5. If a permit application is determined to be incomplete under subsection (2) or denied under subsection (4), the applicant may appeal that decision in writing to the City planning commission pursuant to the requirements of Sections 24.04.182 and 24.04.183. Appeals on a determination made by the building official and/or fire marshal shall first be made to the

15.32 ORDINANCE NO.
board of building and fire appeals pursuant to Chapter 18.41, the decision of which may subsequently be appealed to the City planning commission. The City shall provide a final written determination by not later than 60 business days after receipt of the applicant’s written appeal. A determination by the board of building and fire appeals or the City planning commission shall not be appealable to the City Council.

3.6. Construction of an accessory dwelling unit shall not constitute a Group R occupancy change under the local building code, except as specified under state law. Construction of an accessory dwelling unit or junior accessory dwelling unit shall not trigger a requirement for fire sprinklers to be installed in the existing single-unit or multi-unit building.

4.7. The Ccity shall not require, as a condition for ministerial approval of a permit application for the creation of an accessory dwelling unit or a junior accessory dwelling unit, the correction of nonconforming zoning conditions, building code violations, or unpermitted structures unless they present a threat to public health and safety and are affected by the construction of the accessory dwelling unit.

5.8. The Ccity shall not deny a building permit for an unpermitted accessory dwelling unit or unpermitted junior accessory dwelling unit that was constructed before January 1, 2020, due to noncompliance with any requirement of this part.

6.9. The Ccity shall not require, and the applicant shall not be otherwise required, to provide written notice or post a placard for the demolition of a detached garage that is to be replaced with an accessory dwelling unit, unless the property is located within an architecturally and historically significant historic district.

7.10. An accessory dwelling unit replacing a detached garage shall receive review and issuance of a demolition permit concurrently with the review and issuance of the permit for the accessory dwelling unit.

8.11. To promote flexibility in siting of accessory dwelling units, nothing in this Part shall prohibit an applicant from pursuing a discretionary permit or review to construct an accessory dwelling unit on a lot that has a buildable area of for at least eight hundred square feet of interior livable space with at least four foot side and rear yard setbacks for an attached or detached accessory dwelling unit with application of all site development standards or waivers as provided in Section 24.16.141 but where the applicant chooses to place the accessory dwelling unit in a location that does not meet such standards or waivers.

Section 4. Section 24.16.140 of Chapter 24.16 of the Santa Cruz Municipal Code regarding General Development Standards is hereby amended to read as follows:

15.33 ORDINANCE NO.

24.16.140 GENERAL DEVELOPMENT STANDARDS.

All accessory dwelling units, both new construction and conversion, shall conform to the following requirements:

1. Number of Accessory Dwelling Units per Parcel.
a. For parcels including a proposed or existing single-unit building, including a singlefamily home, townhome, or multiple detached dwellings, but not including any multifamily structures: One nonexempt accessory dwelling unit shall be allowed on each lot in addition to any statewide exemption accessory dwelling units. Each lot may also include a junior accessory dwelling unit conforming to the standards set forth in Section 24.16.170.
b. For lots developed with one or more multi-unit buildings, including an apartment or condominium building with two or more dwelling units: no nonexempt accessory dwelling units shall be allowed. The number of statewide exemption accessory dwelling units allowed on each lot equals:
i. For units converted from areas not used as livable space within an existing multi-unit building nonhabitable space, as defined in Section 24.16.125.10.c(9)(c): at least one conversion accessory dwelling unit. Up to twenty-five percent of the number of existing dwellings in the multi-unit building may be added as conversion accessory dwelling units. When the twenty-five percent limit results in a fraction of a unit, the total number of accessory dwelling units that may be added shall be determined by rounding the fraction up to the next whole number.
ii. For newly constructed units detached from a multi-unit building, including new construction or conversion from areas not used as livable space, as defined in Section 24.16.125.10.d(9)(d):

1. On a lot with an existing multi-unit building, not more than eight detached accessory dwelling units. However, the number of accessory dwelling units allowable pursuant to this clause shall not exceed the number of existing units on the lot.

2. On a lot with a proposed multi-unit building, not more than two detached accessory dwelling units.

15.34 ORDINANCE NO.

2. Existing Development on Lot. One of the following conditions must be present in order to approve an application to create an accessory dwelling unit:
a. One or more single-unit buildings, as defined in Section 24.16.125.9(8), exists on the lot or will be constructed concurrently and in conjunction with the accessory dwelling unit; b. Consistent with the provisions of Sections 24.16.125.10.c(9)(c) and 24.16.125.10.d(9)(d), the lot contains an existing multi-unit building, as defined in Section 24.16.125.5(4), or a proposed multi-unit building that will be constructed concurrently and in conjunction with the accessory dwelling unit.

3. Building Code Requirements. The accessory dwelling unit shall meet the requirements of the California Building Standards Code, including the alternative means and methods section as prescribed therein.

4. Large Home Design Permit. The square footage of an accessory dwelling unit shall not be counted with the square footage of the single-family home in determining whether a large home design permit is required. The square footage of a junior accessory dwelling unit shall be counted with the square footage of the single-family home in determining whether a large home design permit is required.

5. Accessory dwelling units that require approval of ain the coastal zonepermit shall conform to the standards in Section 24.12.140.2(2).

Section 5. Section 24.16.141 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Site Development Standards for Nonexempt Accessory Dwelling Units is hereby amended to read as follows:

24.16.141 SITE DEVELOPMENT STANDARDS FOR NONEXEMPT ACCESSORY DWELLING UNITS.

Despite any directly conflicting zone district site development standards, all nonexempt accessory dwelling units shall comply with the following site development standards. All other zone district site development standards not listed here shall apply to nonexempt accessory dwelling units. Neither the standards in this section nor any zone district site development standards shall apply to statewide exemption accessory dwelling units.

1. General.

15.35 ORDINANCE NO.

Development
Standard Attached Conversion1,2 Detached
Maximum Floor
Area (Ssquare
Ffeet)
3,4
Interior livable space
the Ggreatest of:
• 850 for a studio or
one bedroom.
• 1,000 for a unit with
two or more
bedrooms.
• 50% of the
habitable area of the
primary dwelling to
which the unit is
attached.

Footprint of existing building.

Can expand footprint by
150.4,5,6
Interior livable space
the Ggreatest of:
• 850 for a studio or
one bedroom.
• 1,000 for a unit with
two or more
bedrooms.
• 10% net lot area and
no more than 1,200
habitable square feet.

Maximum
Height (feet)76
Zone district standard
that applies to
primary dwelling.

Maintain existing, or expand
up to lesser of 2' or standard
for new construction
ADUaccessory dwelling
unit.
87 • 16' to roof peak if
less than 4' from
side/rear property
line.
• 22' to roof peak if 4'
or more from
side/rear property
line.

Minimum Front
Setback (feet)
Zone district standard
that applies to
primary dwelling.

Maintain existing. Any
expansion shall meet new
construction standard.

Lesser of:
• Front wall line of
primary building,
excluding any
projections from that
line.
• Zone district
standard.

Minimum Rear
Setback (feet)
4' Maintain existing. Any
expansion shall meet new
construction standard.
3' for up to 16' height.
4' above 16' height.

15.36 ORDINANCE NO.

Development
Standard Attached Conversion1,2 Detached
Minimum
Exterior Side
Yard Setback
Zone district standard
that applies to
primary dwelling.

Maintain existing. Any
expansion shall meet new
construction standard.

Zone district
standard.

Minimum
Interior Side
Yard Setback
4'98 Maintain existing. Any
expansion shall meet new
construction standard.
3' for up to 16' height.
4' above 16' height.

Minimum
Distance
Between
Buildings
6' Maintain existing.
6' for any expansion.
6'

1. Conversion accessory dwelling units may occupy the three-dimensional space, including setbacks, lot coverage, and height, of the building to be converted or reconstructed, regardless of conformance to current zoning standards.

2. A conversion accessory dwelling unit with any expansion in excess of the above thresholds shall be reviewed as a new construction accessory dwelling unit, including assessment of any required fees.

3. Accessory dwelling units that utilize alternative green construction methods that cause the exterior wall thickness to be greater than normal shall be accommodated by calculating the unit square footage size in a manner that accounts for the difference between the square footage of the proposed building and the square footage of a traditional frame house.

34. Stairways that provide access to accessory dwelling units do not count toward the floor areainterior livable space of an accessory dwelling unit when the stairs are not part of the conditioned space, the stairs do not include any other rooms or room-like areas that would function as habitable floor areainterior livable space for the ADUaccessory dwelling unit, and there is a fire-rated entry door at the top of the stairs at the entrance to the accessory dwelling unit.

45. An expansion of up to one hundred fifty square feet shall not enlarge the accessory dwelling unit beyond one thousand two hundred square feet unless necessary to accommodate ingress and egress to the accessory dwelling unit.

15.37 ORDINANCE NO.

Development
Standard Attached Conversion1,2 Detached

56. Expansions detached from the primary dwelling shall meet height and setback requirements for a new construction detached accessory dwelling unit. Expansions attached to the primary dwelling shall meet height and setback requirements for new construction attached dwelling units. Expansions of either type on a substandard lot shall be consistent with substandard lot development standards described in subsection (7).

67. If the design of the building in which the primary dwelling is located has special roof features that should be matched on the detached accessory dwelling unit to enhance design compatibility, the maximum allowed building height of the accessory dwelling unit may be exceeded in order to include such similar special roof features, subject to review and approval of the zoning administrator as part of the review of the building permit application.

78. Existing and resulting roof height are measured to the roof peak. Other portions of the roof may expand more than two feet if their resulting height is the same or lower than the resulting roof peak.

89. Any zone development standard for an additional setback based on building height or stories shall not apply to the portion of the building that contains the accessory dwelling unit.

2. Parking. No off-street parking shall be required for any accessory dwelling unit outside of the Coastal Zone. Any parking spaces, covered or uncovered, removed in order to create an accessory dwelling unit shall not be required to be replaced outside the Coastal Zone. For properties within the Coastal Zone, parking requirements are contained in Section 24.12.240(1).

3. Rear Yard Lot Coverage. In no case shall any accessory dwelling unit be limited in size based on rear yard lot coverage requirements contained in Section 24.12.140(1)(f). In the application of Section 24.12.140(1)(f), the footprint of accessory dwelling units shall not count toward the maximum allowable lot coverage by accessory buildings in yard setback areas.

4. Projections. An accessory dwelling unit that meets the standard zone district setbacks shall be permitted to include projections as described in Section 24.12.120(1). An accessory dwelling unit, or portion thereof, that does not meet standard zone district setbacks but meets standard setbacks for new construction accessory dwelling units shall be permitted to include architectural features such as cornices, canopies, eaves, and sills that project into the setback

15.38 ORDINANCE NO.
two and one-half feet. A conversion accessory dwelling unit, or portion thereof, that does not meet standard setbacks for new construction accessory dwelling units shall not contain any new projections beyond any already present on the existing wall.

5. If a new construction detached accessory dwelling unit is attached to a non-habitable accessory use within the same building, then the portion of the building containing the nonhabitable use shall meet the site development standards for non-habitable accessory buildings as described in Section 24.12.140. A garage may have interior access to an accessory dwelling unit, but no other non-habitable accessory use within the same building shall have interior access to the accessory dwelling unit.

6. Clear corner triangle and clear vision area. Any new construction accessory dwelling unit or expansion of a conversion accessory dwelling unit shall be located outside of the clear corner triangle, as defined in Section 24.22.202, and the clear vision area, as defined in Section 24.22.206.

7. Substandard Lots. When a new construction accessory dwelling unit is proposed on a substandard residential lot, as defined in Section 24.22.520, that contains a single-family residential use, the following design standards shall apply:
a. The maximum allowable lot coverage for all structures shall be forty-five percent, except that lot coverage shall be waived to the extent that it physically precludes the construction of the accessory dwelling unit up to eight hundred square feet in floor areaof interior livable space. The lot coverage of the accessory dwelling unit shall not be included in the calculation of all other structures’ maximum allowable lot coverage. Lot coverage shall include the footprints of the first floor, garage and other accessory buildings (attached and detached), decks and porches (greater than thirty inches in height and not cantilevered), and any second-story cantilevered projection (enclosed or open) beyond two and one-half feet. Decks under thirty inches in height or fully cantilevered with no vertical support posts do not count toward lot coverage for this purpose. Second-story enclosed cantilevered areas that project less than thirty inches from the building wall do not count toward lot coverage. For such areas that project more than thirty inches from the building wall, only the floor area that projects more than thirty inches shall be counted toward lot coverage.
b. The floor area of a building’s second story shall be limited to one hundred percent of the floor area of the building’s first storyfloor if the floor area of the building’s first story constitutes thirty percent or less of the net lot arealot coverage.

15.39 ORDINANCE NO.
c. The floor area of a building’s second story shall not exceed fifty percent of the floor area of the building’s first story if the building’s first story has greater than thirty percent lot coverage up to a maximum of forty-five percent lot coverage. d. The floor area of a building’s second story shall be limited to fifty percent of forty-five percent lot coverage if the building’s first story has greater than forty-five percent lot coverage.

8. Archaeological Resources. The application shall be consistent with all objective standards relating to the preservation of archaeological resources pursuant to Section 24.12.430.

9. Distance from Natural Features. Any new construction accessory dwelling unit or expansion of a conversion accessory dwelling unit shall be consistent with the following standards for distance from natural features:
a. The accessory dwelling unit shall not be constructed within any watercourse setback designated within the City-Wide Creeks and Wetlands Management Plan that does not allow for construction of an accessory dwelling unit by right, as implemented by Section 24.08.2100 et seq.
b. If the site or an adjacent lot contains a wetland or potential wetland as shown in the Citywide Creeks and Wetlands Management Plan, the accessory dwelling unit shall be located at a distance from the wetland as recommend in a report prepared by a professional biologist with a background in wetland biology. c. The accessory dwelling unit shall not be constructed within twenty feet of a thirty percent or greater slope.
d. The accessory dwelling unit and any related construction and site work shall be located away from a heritage tree, or any street tree growing in the public right-of-way protected under Chapter 13.30, the greatest distance of: ten feet, or three times the diameter of the tree’s largest trunk at fifty-four inches above grade, or the dripline of the tree. e. When the project site includes an area mapped for sensitive habitat or vegetation under the general plan, the accessory dwelling unit and related site work shall be located at a distance from such habitat or vegetation area as determined in a report prepared pursuant to Section 24.14.080 by a professional biologist with a background in sensitive habitat biology.

15.40 ORDINANCE NO.

10. If the application of all site development standards results in a buildable area that physically precludes the creation of any attached or detached accessory dwelling unit of up to eight hundred square feet of interior livable space with at least four foot interior side and rear yard setbacks, then the applicant may waive any one or more of the following site development standards only to the extent that it increases the buildable area to allow such an accessory dwelling unit:
a. Percentage of primary dwelling, and/or
b. Lot coverage, and/or
c. Floor area ratio, and/or
d. Open space, and/or
e. Front setbacks.

Section 6. Section 24.16.142 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Nonexempt Accessory Dwelling Unit Design Standards is hereby amended to read as follows:

24.16.142 NONEXEMPT ACCESSORY DWELLING UNIT DESIGN STANDARDS.

Nonexempt accessory dwelling units shall comply with the following design standards. These standards shall not apply to statewide exemption accessory dwelling units.

1. Municipal Code Requirements. All nonexempt accessory dwelling units shall meet the objective design standards set forth in this code, including landscape and tree removal and/or replacement requirements.

2. The following standards apply to nonexempt accessory dwelling units that do not meet one or more of the standard setbacks for the zone district in which they are proposed:
a. The All entrances to the accessory dwelling unit, access stairs, and second story decks shall face the interior of the lot unlessnot be located on the side of the building facing the setback that is less than the zone district standard unless such that side of the building the accessory dwelling unit is adjacent to an alley or a public street. b. When an accessory dwelling unit is adjacent to an alley or a public street, the accessory dwelling unit shall be oriented toward the alley or street with the front access door and windows facing the alley or street. The entry facing the alley or street shall include a

15.41 ORDINANCE NO.
minimum of twelve square feet of flat, unenclosed, covered area, which may be a projection from the building, or inset, or a combination of the two. c. Windows that do not meet the standard zone district side or rear setback and that face an adjoining residential property shall be designed to obscure views of that property by ADU accessory dwelling unit occupants, including transom windows, translucent glass, or other methods; alternatively, fencing or landscaping shall be required to provide screening.

3. Connections Between Units. Nonexempt accessory dwelling units shall not create access between units except a connection between the accessory dwelling unit and the primary dwelling via common access to a shared garage, laundry room, or storage area; provided, that each unit meets the definition of dwelling unit found in Section 24.22.320.

4. The application to construct a nonexempt accessory dwelling unit on a property that is designated as a historic resource by the National Register of Historic Places, the state of California, or by the Ccity, including any property that has been determined to be eligible for the city’s historic building survey list but the property owner has elected to not list the property (opt-out), shall show substantial compliance with the guidelines of the Secretary of the Interior for development on such properties as confirmed in a report prepared by a professional historic consultant who is listed on the department of planning and community development’s approved consultant list.

Section 7. Section 24.16.160 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Zoning Incentives is hereby amended to read as follows:

24.16.160 ZONING INCENTIVES.

The following incentives are to encourage construction of accessory dwelling units:

1. Affordability Requirements for Fee Waivers. Accessory dwelling units proposed to be rented at affordable rents, as established by the Ccity, may have development fees waived per Part 4 of this chapter. Existing dwelling units shall be relieved of the affordability requirement upon payment of fees in the amount previously waived plus the difference between that amount and the fees in effect at the time of repayment.

2. Front or Exterior Yard Parking. Three parking spaces may be provided in the front or exterior yard setback under this incentive with the parking design subject to approval of the zoning administrator. The maximum impervious surfaces devoted to the parking area shall be no

15.42 ORDINANCE NO.
greater than the existing driveway surfaces at time of application. Not more than fifty percent of the front yard width shall be allowed to be parking area.

3. Tandem Parking. For a parcel with a permitted accessory dwelling unit, required parking spaces for the primary single-family dwelling and the accessory dwelling unit may be provided in tandem on a driveway. A tandem arrangement consists of one car behind the other. No more than three total cars in tandem may be counted towards meeting the parking requirement.

Section 8. Section 24.16.165 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Separate Sale of Accessory Dwelling Units is hereby amended to read as follows:

24.16.165 SEPARATE SALE OF ACCESSORY DWELLING UNITS.

1. This section implements Government Code Section 66342, enacted by Assembly Bill 1033 (Ting). The purpose of this section is to apply objective local development standards for subdivisions covered by Government Code Section 66342 and is applicable only so long as Government Code Section 66342 is operative. Where this section or Government Code Section 66342 conflicts with any other provisions of the municipal code, this section and Government Code Section 66342 shall control. Any development standard or requirement not specifically addressed by this section or Government Code Section 66342 must conform to all other provisions of the municipal code and all other objective policies and requirements governing subdivisions.

2. Condominium parcels for the separate conveyance of one or more accessory dwelling unit(s) and their associated primary dwelling unit may be created on lots with single-unit buildings, and condominium parcels for the separate conveyance of one or more accessory dwelling unit(s) may be created on lots with multi-unit buildings, and such condominium parcels shall be approved only as provided by this section.

3. Creation of condominium parcels for five or more accessory dwelling units shall require approval of a tentative map and final map consistent with the requirements of Title 23.

4. Creation of four or fewer condominium parcels for accessory dwelling units and associated primary dwellings shall require approval of a parcel map consistent with the requirements of Title 23.

5. The applicant shall obtain a parcel map or final map to establish the condominium parcels. A tentative map shall not be required.

15.43 ORDINANCE NO.

6.5. Units mapped under the provisions of this section shall not be required to comply with the community housing project requirements under Section 24.12.180, except:
a. Each new construction accessory dwelling unit or new construction primary dwelling unit proposed for new construction concurrently with condominium mapping shall meet the open space requirement pursuant to Section 24.12.1280.3(3) unless waived pursuant to Section 24.16.141.10.d(10)(d); and
b. Each new construction accessory dwelling unit or new construction primary dwelling unit shall provide a minimum of two hundred cubic feet of enclosed storage space within the project capable of being secured by lock or other means for each unit, in addition to kitchen cupboards or clothes and linen closets, consistent with Section 24.12.180(4).

7.6. No off-street parking beyond that required by Section 24.16.141.2 shall be required for any accessory dwelling unit mapped as a condominium.

8.7. Accessory dwelling units and associated primary dwelling units mapped as condominiums pursuant to this section shall meet the inclusionary dwelling unit requirements under Section 24.16.020.

9.8. When no more than four condominium units are created from the conversion of existing accessory dwelling units and associated primary dwellings, the following shall apply:
a. The units may be converted to condominiums regardless of the multifamily housing vacancy rate consistent with Section 23.37.020.1. b. Tenants displaced shall retain a first right of refusal if the unit is offered to sale to the general public consistent with Section 23.37.050(g). c. Relocation assistance in the amount of four months’ rent shall be provided to tenants of low or moderate income who have resided in the unit within two years prior to the date of submission of the application for the conversion of the unit(s) consistent with Section 23.37.050(h).

10.9. Consistent with Government Code Section 66341, an accessory dwelling unit shall be approved with a condominium lot for separate conveyance pursuant to the following:
a. The condominiums shall be created pursuant to the Davis-Stirling Common Interest Development Act (Part 5 (commencing with Section 4000) of Division 4 of the Civil Code).

15.44 ORDINANCE NO.
b. The condominiums shall be created in conformance with all applicable objective requirements of the Subdivision Map Act (Division 2 (commencing with Section 66410)) and all applicable objective requirements of Title 23, the Subdivision Ordinance. c. Before recordation of the condominium plan, a safety inspection of the accessory dwelling unit shall be conducted as evidenced either through a certificate of occupancy from the Ccity or a housing quality standards report from a building inspector certified by the United States Department of Housing and Urban Development. d. Neither a subdivision map nor a condominium plan shall be recorded with the county recorder in the county where the real property is located without each lienholder’s consent. The following shall apply to the consent of a lienholder:
i. A lienholder may refuse to give consent.
ii. A lienholder may consent provided that any terms and conditions required by the lienholder are satisfied.
e. Prior to recordation of the initial or any subsequent modifications to the condominium plan, written evidence of the lienholder’s consent shall be provided to the county recorder along with a signed statement from each lienholder that states as follows:
(Name of lienholder) hereby consents to the recording of this condominium plan in their sole and absolute discretion and the borrower has or will satisfy any additional terms and conditions the lienholder may have.
f. The lienholder’s consent shall be included on the condominium plan or a separate form attached to the condominium plan that includes the following information:
i. The lienholder’s signature.
ii. The name of the record owner or ground lessee.
iii. The legal description of the real property.
iv. The identities of all parties with an interest in the real property as reflected in the real property records.

15.45 ORDINANCE NO.
v. The lienholder’s consent shall be recorded in the office of the county recorder of the county in which the real property is located.
g. The city City shall include the following notice to consumers on any accessory dwelling or junior accessory dwelling unit submittal checklist or public information issued describing requirements and permitting for accessory dwelling units, including as standard condition of any accessory dwelling unit building permit or condominium plan approval:

NOTICE: If you are considering establishing your primary dwelling unit and accessory dwelling unit as a condominium, please ensure that your building permitting agency allows this practice. If you decide to establish your primary dwelling unit and accessory dwelling unit as a condominium, your condominium plan or any future modifications to the condominium plan must be recorded with the County Recorder. Prior to recordation or modification of your subdivision map and condominium plan, any lienholder with a lien on your title must provide a form of written consent either on the condominium plan, or on the lienholder’s consent form attached to the condominium plan, with text that clearly states that the lender approves recordation of the condominium plan and that you have satisfied their terms and conditions, if any.

In order to secure lender consent, you may be required to follow additional lender requirements, which may include, but are not limited to, one or more of the following:
(a) Paying off your current lender. You may pay off your mortgage and any liens through a refinance or a new loan. Be aware that refinancing or using a new loan may result in changes to your interest rate or tax basis. Also, be aware that any subsequent modification to your subdivision map or condominium plan must also be consented to by your lender, which consent may be denied.
(b) Securing your lender’s approval of a modification to their loan collateral due to the change of your current property legal description into one or more condominium parcels. (c) Securing your lender’s consent to the details of any construction loan or ground lease. This may include a copy of the improvement contract entered in good faith with a licensed contractor, evidence that the record owner or ground lessee has the funds to complete the work, and a signed statement made by the record owner or ground lessor that the information in the consent above is true and correct.

15.46 ORDINANCE NO.
h. If an accessory dwelling unit is established as a condominium, the homeowner shall notify providers of utilities, including water, sewer, gas, and electricity, of the condominium creation and separate conveyance.
i. The owner of a property or a separate interest within an existing planned development that has an existing association, as defined in Section 4080 of the Civil Code, shall not record a condominium plan to create a common interest development under Section 4100 of the Civil Code without the express written authorization by the existing association. For purposes of this section, written authorization by the existing association means approval by the board at a duly noticed board meeting, as defined in Section 4090 of the Civil Code, and if needed pursuant to the existing association’s governing documents, membership approval of the existing association.

11.10. Nothing in this section shall prohibit approval of an accessory dwelling with a condominium lot for separate conveyance pursuant to Government Code Sections 66340 through 66341.

Section 9. Section 24.16.170 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Junior Accessory Dwelling Units is hereby amended to read as follows:

24.16.170 JUNIOR ACCESSORY DWELLING UNITS.

1. Notwithstanding any other regulation or definition of this code, one junior accessory dwelling unit shall be permitted on lotsper lot in zones where single-family dwellings are an allowed use, including in the R-S, R-1, R-L, R-M, R-H, R-T(A), R-T(B), R-T(C), R-T(D), RT(E), and P-A zones; where one or more single-unit buildings, including a single-family home, townhome, or a detached condominium or apartment on a site with multiple units, exist or are proposed on the lot; and where the owner of the property occupies the property as their principal place of residence. Where multiple detached single-unit condominium buildings exist on a lot, the underlying lot shall have no more than one junior accessory dwelling unit.

2. For the purposes of this section, “junior accessory dwelling unit” shall have the same meaning as defined in Section 66313 of the California Government Code.

3. Junior accessory dwelling units shall be attached to a single-unit building and may be created in any part of an existing or proposed single-unit building, including in an attached garage.

For purposes of this section, a “proposed single-unit building” shall mean the resulting building including the junior accessory dwelling unit, regardless of whether portions of the

15.47 ORDINANCE NO.
building already exist, and shall therefore include any new single-unit building or a singleunit building resulting from an addition to an existing single-unit building.

4. The junior accessory shall meet the same zoning district site development standards that apply to the primary dwelling.

4.5. Junior accessory dwelling units shall be no larger than five hundred square feet of interior livable space in size.

5.6. Junior accessory dwelling units shall contain, at a minimum, the following features:
a. An exterior entrance separate from that of the primary dwelling. b. A cooking facility with appliances.
c. A food preparation counter and storage cabinets of reasonable size in relation to the size of the junior accessory dwelling unit.

6.7. Junior accessory dwelling units may include separate sanitation facilities or may share sanitation facilities with the primary dwelling. Where sanitation facilities are shared with the primary dwelling, the junior accessory dwelling unit shall have access to the primary dwelling through internal circulation and shall not be required to exit the building in order to reach the entrance to the primary dwelling.

7.8. If the junior accessory dwelling unit has shared sanitation facilities with the primary dwelling, tThe property owner shall occupy either the junior accessory dwelling unit or the primary dwelling to which the junior accessory dwelling unit is attached as his or her principal place of residence. Owner occupancy shall not be required if the junior accessory dwelling unit has separate sanitation facilities, or if the owner is another governmental agency, land trust, or housing organization.
a. For purposes of this section, the property owner is:
i. The majority owner(s) of the property as shown in the most recent Santa Cruz County records.
ii. If there is more than one property owner of record, the owner with the majority or highest ownership interest in the property shall be deemed the property owner. Any property owner(s) of record holding an equal share interest in the property may be

15.48 ORDINANCE NO.
deemed the majority property owner(s) if no other property owner owns a greater interest.
iii. For property held by a corporation or business entity, a shareholder or officer of the corporation or business entity with the greatest shares or business interest as defined in the articles of incorporation, or other applicable business document. iv. For property held in trust: (a) the trustor(s) or settlor(s) who created the trust in which the property is held; or any person(s) or entity deemed as the legal owner of the property held in trust in accordance with the trust document, and (b) who has/have the highest ownership interest in the property.

8.9. Before obtaining a building permit for a junior accessory dwelling unit, the property owner shall file with the county recorder a declaration of restrictions containing a reference to the deed under which the property was acquired by the present owner and including:
a. A prohibition on the sale of the junior accessory dwelling unit separate from the sale of the single-unit building, including a statement that the deed restriction may be enforced against future purchasers.
b. A restriction on the size and attributes of the junior accessory dwelling unit that conforms with the standards in this section.
c. A requirement that the rental of the junior accessory dwelling unit be for a term longer than 30 days.

Section 10. The City Council finds and determines that the adoption of this ordinance is considered a “project” under California Code of Regulations, Title 14, section 15378(a)(1) of the California Environmental Quality Act (CEQA) Guidelines, typically subject to environmental review. The City Council finds that these amendments to the Santa Cruz Municipal Code are needed to ensure consistency with state ADU law, and therefore pursuant to Public Resources Code Section 21080.17, no further environmental review under the California Environmental Quality Act (CEQA) is required; and these amendments can be seen with certainty to have no possibility for causing a significant effect on the environment, and, therefore, pursuant to California Code of Regulations, Title 14, section 15183 of the CEQA Guidelines, no further environmental review under CEQA is required.

Section 11. 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.

15.49 ORDINANCE NO.

Section 12. This ordinance shall take effect and be in full force thirty (30) days after final adoption.

PASSED FOR PUBLICATION this 10th day of February 2026, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: __________________________
Fred Keeley, Mayor
ATTEST: ___________________________
Bonnie Bush, City Clerk Administrator
PASSED FOR FINAL ADOPTION this 24th day of February 2026 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. 2026-XX
and that it has been published or
posted in accordance with the
Charter of the City of Santa Cruz.
___________________________
City Clerk Administrator

15.50 ORDINANCE NO. 2026-XX

AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING SANTA CRUZ MUNICIPAL CODE CHAPTER 24.04 – ADMINISTRATION AND SECTION 24.12.1755 –

PROPERTIES WITH ACCESSORY DWELLING UNITS TO MAINTAIN CONSISTENCY

WITH STATE REGULATIONS FOR ACCESSORY DWELLING UNITS AND TO CLARIFY EXISTING REGULATINOS. AMENDMENTS TO CHAPTER 24.04 AND SECTION

24.12.1755 ARE PART OF THE LOCAL COASTAL PROGRAM IMPLEMENTATION PLAN (LCP IP) AND WILL REQUIRE APPROVAL BY THE CALIFORNIA COASTAL COMMISSION PRIOR TO TAKING EFFECT INSIDE THE COASTAL ZONE. (CEQA:

EXEMPT PURSUANT TO PUBLIC RESOURCES CODE SECTION 21080.17 AS AN

ORDINANCE TO IMPLEMENT ACCESSORY DWELLING UNIT STATE LAW AND 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.)
WHEREAS, accessory dwelling units contribute needed housing to the community’s housing stock and provide housing for family members, students, the elderly, in-home health care providers, the disabled, and others within existing neighborhoods, and homeowners who create accessory dwelling units may benefit from added income and an increased sense of security; and WHEREAS, on October 10, 2025, SB 543 (McNerney) was signed into law, making changes to requirements for permitting timelines, fire sprinklers, fees, and unit size measurement for accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs); and WHEREAS, on October 10, 2025, AB 1154 (Carrillo) was signed into law, making changes to requirements for owner occupancy and rental terms for JADUs; and WHEREAS, on October 10, 2025, AB 462 (Lowenthal) was signed into law, making changes to requirements for processing timelines and appeals for Coastal Development Permits for ADUs; and
WHEREAS, amendments to municipal code requirements related to accessory dwelling units are needed to maintain consistency with state law; and WHEREAS, at its January 15, 2026 meeting, the Santa Cruz Planning Commission reviewed the proposed additions and modifications to the Santa Cruz Municipal Code and found that the public necessity, and the general community welfare, and good zoning practice shall be served and furthered; and that the proposed amendments are in general conformance with the principles, policies and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan; and
WHEREAS, at its January 15, 2026 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

15.51 ORDINANCE NO. 2026-XX
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 January 15, 2026 meeting, the Santa Cruz Planning Commission passed a motion that recommended the City Council approve the proposed amendments as well as any additional changes needed to comply with state ADU law; and WHEREAS, the amendments to the Santa Cruz Municipal Code are needed to ensure consistency with state ADU law, and therefore pursuant to Public Resources Code Section 21080.17, no further environmental review under the California Environmental Quality Act (CEQA) is required; and
WHEREAS, the amendments can be seen with certainty to have no possibility for causing a significant effect on the environment, and, therefore, pursuant to California Code of Regulations, Title 14, section 15183 of the CEQA Guidelines, no further environmental review under CEQA is required.

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

Section 1. Section 24.04.095 of Chapter 24.04 of the Santa Cruz Municipal Code regarding Notice of Administrative Coastal Permit for Accessory Dwelling Units is hereby amended to read as follows:

24.04.095 NOTICE OF ADMINISTRATIVE COASTAL PERMIT FOR ACCESSORY DWELLING UNITS.

The public shall be provided notice of an administrative coastal permit application for an accessory dwelling unit as required by this section as well as any other noticing required by Sections 24.08.200 et seq.

1. Within ten calendar days of accepting an application for administrative approval of a coastal permit for an accessory dwelling unit, and at least fourteen days before a decision is made on the permit application, the city shall provide notice of pending application.

2. The notice shall include the following information:
a. Project Information. The name of the applicant; the city’s project case number assigned to the application; a general explanation of the matter to be considered; a general description, in text and/or diagram, of the location of the property that is subject to the coastal permit; b. Statement on Environmental Document. If a negative declaration, mitigated negative declaration, environmental impact report (EIR) has been prepared for the project, or if the

15.52 ORDINANCE NO. 2026-XX
project has been determined to be exempt, in compliance with the provisions of the California Environmental Quality Act (CEQA) and the city’s Environmental Guidelines, the notice shall include a statement that the decision will also include approval of the environmental determination;
c. The date of filing of the application; and
d. A statement that the development is within the Coastal Zone and requires administrative coastal permit approval.

3. Notices shall be mailed as described in Section 24.04.100(a)(1).

Section 2. Section 24.04.130 of Chapter 24.04 of the Santa Cruz Municipal Code regarding Decision-Making Body With Final Authority on Application Approval is hereby amended to read as follows:

24.04.130 DECISION-MAKING BODY WITH FINAL AUTHORITY ON APPLICATION APPROVAL.

The following table indicates the decision-making body who can approve, deny or conditionally approve an application, whether or not a public hearing is required, and the bodies to which appeals can be made:

1. The planning commission and city council may refer certain aspects of any application to the zoning administrator for final action.

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

15.53 ORDINANCE NO. 2026-XX
Public Hearing Requirement and Decision-Making Body
Which Can Approve an Application
No Public
Hearing Public Hearing Permits/Actions4
Action Recommendation Action
Appeal Bodies (in
order)
Administrative Use Permit:

Temporary uses, variations to
parking design requirements and
number of spaces, low-risk alcohol
outlets, and half baths in accessory
buildings

ZA CPC/CC
Administrative Use Permit:

Variations to parking design
requirements or variations to number
of required spaces

ZA CPC/CC/CCC
Other uses as listed by individual
zoning districts as requiring an
administrative use permit

ZA CPC/CC
Conditional Fence Permit ZA ZA CPC/CC
Slope Regulations Modifications
(Variance) in the Coastal Zone
CPC CC
Slope Development Permit (on or
within 20 feet of a 50% or greater
slope) outside the Coastal Zone

ZA CPC/CCC
Slope Regulations Modifications
(Design Permit) in the Coastal Zone

ZA CPC/CC
Slope Development Permit (on or
within 20 feet of a slope greater than
or equal to 30% and less than 50%)
outside the Coastal Zone

ZA CPC/CC

15.54 ORDINANCE NO. 2026-XX
Public Hearing Requirement and Decision-Making Body
Which Can Approve an Application
No Public
Hearing Public Hearing Permits/Actions4
Action Recommendation Action
Appeal Bodies (in
order)
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, RM, or R-H zone districts with no more than 50 dwelling units and

ZA CPC/CC

15.55 ORDINANCE NO. 2026-XX
Public Hearing Requirement and Decision-Making Body
Which Can Approve an Application
No Public
Hearing Public Hearing Permits/Actions4
Action Recommendation Action
Appeal Bodies (in
order)
conforming to all standards of
Section 24.12.185

8. Mixed-use or residential
developments not within the R-L, RM, or R-H zone districts with 51 dwelling units or more and
conforming to all standards of
Section 24.12.185

ZA CPC/CC

9. Mixed-use or residential
development 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

15.56 ORDINANCE NO. 2026-XX
Public Hearing Requirement and Decision-Making Body
Which Can Approve an Application
No Public
Hearing Public Hearing Permits/Actions4
Action Recommendation Action
Appeal Bodies (in
order)
Administrative Historic Alteration
Permit

ZA HPC/CC
Historic Building Survey:

Building designation, deletion HPC CC
Historic District Designation HPC/CPC CC
Historic Landmark Designation HPC CC
Mobile Homes (Certificate of
Compatibility)

ZA CPC/CC
Mobile Home Park Conversion CPC CC
Outdoor Extension Areas per
Section 24.12.192

ZA CPC/CC
Planned Development Permit CPC CC
Project (Major) Modification Hearing by ZA or body
approving application
Appeal to next
highest body(ies)
Project (Minor) Modification ZA CPC/CC
Relocation of Structures Permit ZA CPC/CC
Revocation Permit Hearing by ZA or body
approving application
Appeal to next
highest body(ies)
Request for Reasonable
Accommodation
ZA CPC

15.57 ORDINANCE NO. 2026-XX
Public Hearing Requirement and Decision-Making Body
Which Can Approve an Application
No Public
Hearing Public Hearing Permits/Actions4
Action Recommendation Action
Appeal Bodies (in
order)
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) except that no public hearing shall be required. A coastal permit for an accessory dwelling unit is not appealable locally or 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

15.58 ORDINANCE NO. 2026-XX
Public Hearing Requirement and Decision-Making Body
Which Can Approve an Application
No Public
Hearing Public Hearing Permits/Actions4
Action Recommendation Action
Appeal Bodies (in
order)
administrator, determines that the building or structure is eligible for listing on the city historic building survey.
3 California Coastal Commission in case of CLUP policy, CLIP elements. 4 At a regularly scheduled meeting, a majority of the council may take an action to direct any project or amendment to be called from a lower hearing body prior to a final action or during an appeal period in accordance with Section 24.04.175(2).
5 An appellant must exhaust all local appeals before an appeal can be made to the California Coastal Commission, unless the coastal permit is processed concurrently with other permits pursuant to Section 24.04.150 (for example, a design permit, a use permit, etc.). Because the city charges an appeal fee pursuant to Section 24.04.070 for appeals of coastal permits processed concurrently with other permits, Section 30603(c) of the Coastal Act does not require an appellant to exhaust all local appeals before a project can be appealed to the California Coastal Commission. The city does not charge a fee for local appeals of standalone coastal permits (i.e., where the coastal permit is not accompanied by any other permits).

Section 3. Section 24.04.186 of Chapter 24.04 of the Santa Cruz Municipal Code regarding Appeals to Coastal Commission is hereby amended to read as follows:

24.04.186 APPEALS TO COASTAL COMMISSION.

1. Coastal permits fall into either of two categories: appealable or nonappealable to the Coastal Commission.

The determination of whether a project is appealable or nonappealable, or categorically exempt, shall be made by the zoning administrator at the time the application is filed. This determination is appealable pursuant to the provision of California Coastal Commission Local Coastal Program Regulations Section 13569.

2. Coastal permits are only appealable after all city appeals are exhausted except for appeals by members of the Coastal Commission, who may appeal the permit directly to the California Coastal

15.59 ORDINANCE NO. 2026-XX
Commission. Coastal permits for small cell facilities that are both in the public right-of-way and in the portion of the Coastal Zone Overlay zone district where city decisions can be appealed to the California Coastal Commission have no local appeal process, and any appeal shall be made directly to the California Coastal Commission. No fee shall be charged for coastal permit appeals. a. Only the following coastal permit applications are appealable to the Coastal Commission:
(1) Any major public works project or facility. The phrase “major public works project or energy facility” is the same as used in Public Resources Code Section 30603(A)(5) and these regulations shall mean any proposed public works projects as defined by Coastal Commission Regulations Section 13012, or “energy facility” as defined by Public Resources Code Section 13012 of the Coastal Commission Regulations, or “energy facility” as defined by Public Resources Code Section 30107 and exceeding fifty thousand dollars in estimated cost of construction. (2) Development approved between the sea and the first public road paralleling the sea or within three hundred feet of the inland extent of any beach or the mean high tide line of the sea where there is no beach, whichever is the greater distance.
(3) Developments approved not included within subsection (2)(a)(2), located on tidelands, submerged lands, public trust lands, within one hundred feet of any wetland, estuary, stream, or within three hundred feet of the top of the seaward face of any coastal bluff. (a) Subsections (a)(2) and (a)(3) are shown as the SP-O Shoreline Protection Overlay zone on the zoning map.
(4) Developments approved that are located in a sensitive coastal resource area. b. An appeal may be filed only by the applicant, an aggrieved person as defined by this title, or any two members of the Coastal Commission. An appeal must be filed in accordance with the appeal procedures contained in this title, except that appeals by any two members of the Coastal Commission do not require exhaustion of local appeals and may be made following the decisions of the reviewing body, zoning administrator, zoning board or city council.

However, commissioner appeals taken prior to exhaustion of all local appeals shall be transmitted to the appropriate local appellate body and the appeal to the commission may be suspended pending a decision on the merits by that local appellate body. If the decision of the local appellate body modifies or reverses the previous decision, the commissioners shall be required to file a new appeal from that decision.
c. Grounds for appeal, pursuant to subsection (2)(a)(2), shall be limited to an allegation that the development does not conform to standards set forth in the certified Local Coastal Program or the Public Access Policies set forth in the California Coastal Act.

15.60 ORDINANCE NO. 2026-XX
d. The grounds for an appeal of a denial of a permit pursuant to subsection (2)(a)(1) shall be limited to an allegation that the development conforms to the standards set forth in the certified Local Coastal Program and the public access policies set forth in the California Coastal Act. e. Appeals to the Coastal Commission pursuant to this section must be filed with the Coastal Commission on forms prescribed by and available from the Coastal Commission.

Section 4. Section 24.12.1755 of Chapter 24.12 of the Santa Cruz Municipal Code regarding Properties with Accessory Dwelling Units is hereby amended to read as follows:

24.12.1755 PROPERTIES WITH ACCESSORY DWELLING UNITS.

1. Short-term rentals are not permitted in an accessory dwelling unit, junior accessory dwelling unit, or associated primary dwelling, except as provided below.

2. An existing accessory dwelling unit property may apply for a short-term rental permit in cases where the accessory dwelling unit property:
a. Was issued a transient occupancy registration certificate prior to November 10, 2015; and b. Is in the same ownership as when the transient occupancy registration certificate obtained prior to November 10, 2015, was issued; and
c. Is in compliance with the provisions of Chapter 3.28, including payment of all taxes, penalties, and interest due, for any short-term rentals; and d. Is in compliance with the principal residency requirements specified in this chapter; and e. Has remitted transient occupancy tax to the city within the previous calendar year.

Section 5. The City Council finds and determines that the adoption of this ordinance is considered a “project” under California Code of Regulations, Title 14, section 15378(a)(1) of the California Environmental Quality Act (CEQA) Guidelines, typically subject to environmental review. The City Council finds that these amendments to the Santa Cruz Municipal Code are needed to ensure consistency with state ADU law, and therefore pursuant to Public Resources Code Section 21080.17, no further environmental review under the California Environmental Quality Act (CEQA) is required; and these amendments can be seen with certainty to have no possibility for causing a significant effect on the environment, and, therefore, pursuant to California Code of Regulations, Title 14, section 15183 of the CEQA Guidelines, no further environmental review under CEQA is required.

15.61 ORDINANCE NO. 2026-XX
Section 6. 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 7. This ordinance shall take effect and be in full force thirty (30) days after final adoption outside of the Coastal Zone. Within the Coastal Zone, this ordinance shall take effect and be in full force after approval by the California Coastal Commission, but no earlier than thirty (30) days after final adoption.

PASSED FOR PUBLICATION this 10th day of February 2026, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: __________________________
Fred Keeley, Mayor
ATTEST: ___________________________
Bonnie Bush, City Clerk Administrator
PASSED FOR FINAL ADOPTION this 24th day of February 2026 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. 202X-XX
and that it has been published or
posted in accordance with the
Charter of the City of Santa Cruz.
_________________________
Bonnie Bush, City Clerk Administrator

15.62 ORDINANCE NO.

AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING SANTA CRUZ MUNICIPAL CODE CHAPTER 24.04 – ADMINISTRATION AND SECTION 24.12.1755 –

PROPERTIES WITH ACCESSORY DWELLING UNITS TO MAINTAIN CONSISTENCY

WITH STATE REGULATIONS FOR ACCESSORY DWELLING UNITS AND TO CLARIFY EXISTING REGULATINOS. AMENDMENTS TO CHAPTER 24.04 AND SECTION

24.12.1755 ARE PART OF THE LOCAL COASTAL PROGRAM IMPLEMENTATION PLAN (LCP IP) AND WILL REQUIRE APPROVAL BY THE CALIFORNIA COASTAL COMMISSION PRIOR TO TAKING EFFECT INSIDE THE COASTAL ZONE. (CEQA:

EXEMPT PURSUANT TO PUBLIC RESOURCES CODE SECTION 21080.17 AS AN

ORDINANCE TO IMPLEMENT ACCESSORY DWELLING UNIT STATE LAW AND 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.)
WHEREAS, accessory dwelling units contribute needed housing to the community’s housing stock and provide housing for family members, students, the elderly, in-home health care providers, the disabled, and others within existing neighborhoods, and homeowners who create accessory dwelling units may benefit from added income and an increased sense of security; and WHEREAS, on October 10, 2025, SB 543 (McNerney) was signed into law, making changes to requirements for permitting timelines, fire sprinklers, fees, and unit size measurement for accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs); and WHEREAS, on October 10, 2025, AB 1154 (Carrillo) was signed into law, making changes to requirements for owner occupancy and rental terms for JADUs; and WHEREAS, on October 10, 2025, AB 462 (Lowenthal) was signed into law, making changes to requirements for processing timelines and appeals for Coastal Development Permits for ADUs; and
WHEREAS, amendments to municipal code requirements related to accessory dwelling units are needed to maintain consistency with state law; and WHEREAS, at its January 15, 2026 meeting, the Santa Cruz Planning Commission reviewed the proposed additions and modifications to the Santa Cruz Municipal Code and found that the public necessity, and the general community welfare, and good zoning practice shall be served and furthered; and that the proposed amendments are in general conformance with the principles, policies and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan; and
WHEREAS, at its January 15, 2026 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

15.63 ORDINANCE NO.
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 January 15, 2026 meeting, the Santa Cruz Planning Commission passed a motion that recommended the City Council approve the proposed amendments as well as any additional changes needed to comply with state ADU law; and WHEREAS, the amendments to the Santa Cruz Municipal Code are needed to ensure consistency with state ADU law, and therefore pursuant to Public Resources Code Section 21080.17, no further environmental review under the California Environmental Quality Act (CEQA) is required; and
WHEREAS, the amendments can be seen with certainty to have no possibility for causing a significant effect on the environment, and, therefore, pursuant to California Code of Regulations, Title 14, section 15183 of the CEQA Guidelines, no further environmental review under CEQA is required.

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

Section 1. Section 24.04.095 of Chapter 24.04 of the Santa Cruz Municipal Code regarding Notice of Administrative Coastal Permit for Accessory Dwelling Units is hereby amended to read as follows:

24.04.095 NOTICE OF ADMINISTRATIVE COASTAL PERMIT FOR ACCESSORY DWELLING UNITS.

The public shall be provided notice of an administrative coastal permit application for an accessory dwelling unit as required by this section as well as any other noticing required by Sections 24.08.200 et seq.

1. Within ten calendar days of accepting an application for administrative approval of a coastal permit for an accessory dwelling unit, and at least fourteen days before a decision is made on the permit application, the city shall provide notice of pending application.

2. The notice shall include the following information:
a. Project Information. The name of the applicant; the city’s project case number assigned to the application; a general explanation of the matter to be considered; a general description, in text and/or diagram, of the location of the property that is subject to the coastal permit;

15.64 ORDINANCE NO.
b. Statement on Environmental Document. If a negative declaration, mitigated negative declaration, environmental impact report (EIR) has been prepared for the project, or if the project has been determined to be exempt, in compliance with the provisions of the California Environmental Quality Act (CEQA) and the city’s Environmental Guidelines, the notice shall include a statement that the decision will also include approval of the environmental determination;
c. The date of filing of the application; and
d. A statement that the development is within the Coastal Zone and requires administrative coastal permit approval;.
e. A statement of whether or not the coastal permit is appealable; and f. The procedures for appeal to the Coastal Commission, if applicable.

3. Notices shall be mailed as described in Section 24.04.100(a)(1).

Section 2. Section 24.04.130 of Chapter 24.04 of the Santa Cruz Municipal Code regarding Decision-Making Body With Final Authority on Application Approval is hereby amended to read as follows:

24.04.130 DECISION-MAKING BODY WITH FINAL AUTHORITY ON APPLICATION APPROVAL.

The following table indicates the decision-making body who can approve, deny or conditionally approve an application, whether or not a public hearing is required, and the bodies to which appeals can be made:

1. The planning commission and city council may refer certain aspects of any application to the zoning administrator for final action.

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.

15.65 ORDINANCE NO.

Public Hearing Requirement and Decision-Making Body
Which Can Approve an Application
No
Public
Hearing
Public Hearing
Permits/Actions4
Action Recommendation Action
Appeal Bodies (in
order)
Coastal Permit ZA
(ADU1)
ZA1 CPC/CC/CCC1
Administrative Use Permit:

Temporary uses, variations to
parking design requirements and
number of spaces, low-risk alcohol
outlets, and half baths in accessory
buildings

ZA CPC/CC
Administrative Use Permit:

Variations to parking design
requirements or variations to
number of required spaces

ZA CPC/CC/CCC
Other uses as listed by individual
zoning districts as requiring an
administrative use permit

ZA CPC/CC
Conditional Fence Permit ZA ZA CPC/CC
Slope Regulations Modifications
(Variance) in the Coastal Zone
CPC CC
Slope Development Permit (on or
within 20 feet of a 50% or greater
slope) outside the Coastal Zone

ZA CPC/CCC
Slope Regulations Modifications
(Design Permit) in the Coastal Zone

ZA CPC/CC

15.66 ORDINANCE NO.

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 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

ZA CPC/CC

15.67 ORDINANCE NO.

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)
conforming to all standards of
Section 24.12.185

7. Mixed-use or residential
development not within the R-L, RM, or R-H zone districts with no more than 50 dwelling units and
conforming to all standards of
Section 24.12.185

ZA CPC/CC

8. Mixed-use or residential
developments not within the R-L,
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 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

15.68 ORDINANCE NO.

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)

3. Historic demolition permit HPC CC

4. Nonresidential ZA2 ZA2 CPC/CC
General Plan Text and Map
Amendments
CPC CC/CCC3
Historic Alteration Permit HPC CC
Administrative Historic Alteration
Permit

ZA HPC/CC
Historic Building Survey:

Building designation, deletion HPC CC
Historic District Designation HPC/CPC CC
Historic Landmark Designation HPC CC
Mobile Homes (Certificate of
Compatibility)

ZA CPC/CC
Mobile Home Park Conversion CPC CC
Outdoor Extension Areas per
Section 24.12.192

ZA CPC/CC
Planned Development Permit CPC CC
Project (Major) Modification Hearing by ZA or body
approving application
Appeal to next
highest body(ies)

15.69 ORDINANCE NO.

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)
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)
Request for Reasonable
Accommodation
ZA CPC
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

15.70 ORDINANCE NO.

Public Hearing Requirement and Decision-Making Body
Which Can Approve an Application
No
Public
Hearing
Public Hearing
Permits/Actions4
Action Recommendation Action
Appeal Bodies (in
order)
1 For projects seaward of the mean high tide line, and in the case of appealable actions, the California Coastal Commission shall be the decision-making body which can finally approve an application. In the Coastal Zone, all proposed accessory dwelling units that require a coastal permit shall be processed in the manner described in Chapter 24.04 and Section 24.08.200 et seq. (including in terms of public noticing and process for appeal to the Coastal Commission) except that no public hearing shall be required. A coastal permit for an accessory dwelling unit is not locally appealable locally or. 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).

15.71 ORDINANCE NO.

Section 3. Section 24.04.186 of Chapter 24.04 of the Santa Cruz Municipal Code regarding Appeals to Coastal Commission is hereby amended to read as follows:

24.04.186 APPEALS TO COASTAL COMMISSION.

1. Coastal permits fall into either of two categories: appealable or nonappealable to the Coastal Commission.

The determination of whether a project is appealable or nonappealable, or categorically exempt, shall be made by the zoning administrator at the time the application is filed. This determination is appealable pursuant to the provision of California Coastal Commission Local Coastal Program Regulations Section 13569.

2. Coastal permits are only appealable after all city appeals are exhausted except for appeals by members of the Coastal Commission, who may appeal the permit directly to the California Coastal Commission. The following coastal permits have no local appeal process, and any appeal shall be made directly to the California Coastal Commission: Ccoastal permits for small cell facilities that are both in the public right-of-way and in the portion of the Coastal Zone Overlay zone district where city decisions can be appealed to the California Coastal Commission have no local appeal process, and any appeal shall be made directly, and coastal permits for accessory dwelling units in the portion of the Coastal Zone Overlay zone district where decisions can be appealed to the California Coastal Commission. No fee shall be charged for coastal permit appeals.
a. Only the following coastal permit applications are appealable to the Coastal Commission:
(1) Any major public works project or facility. The phrase “major public works project or energy facility” is the same as used in Public Resources Code Section 30603(A)(5) and these regulations shall mean any proposed public works projects as defined by Coastal Commission Regulations Section 13012, or “energy facility” as defined by Public Resources Code Section 13012 of the Coastal Commission Regulations, or “energy facility” as defined by Public Resources Code Section 30107 and exceeding fifty thousand dollars in estimated cost of construction.
(2) Development approved between the sea and the first public road paralleling the sea or within three hundred feet of the inland extent of any beach or the mean high tide line of the sea where there is no beach, whichever is the greater distance. (3) Developments approved not included within subsection (2)(a)(2), located on tidelands, submerged lands, public trust lands, within one hundred feet of any wetland, estuary, stream, or within three hundred feet of the top of the seaward face of any coastal bluff. (a) Subsections (a)(2) and (a)(3) are shown as the SP-O Shoreline Protection Overlay zone on the zoning map.

15.72 ORDINANCE NO.
(4) Developments approved that are located in a sensitive coastal resource area. b. An appeal may be filed only by the applicant, an aggrieved person as defined by this title, or any two members of the Coastal Commission. An appeal must be filed in accordance with the appeal procedures contained in this title, except that appeals by any two members of the Coastal Commission do not require exhaustion of local appeals and may be made following the decisions of the reviewing body, zoning administrator, zoning board or city council.

However, commissioner appeals taken prior to exhaustion of all local appeals shall be transmitted to the appropriate local appellate body and the appeal to the commission may be suspended pending a decision on the merits by that local appellate body. If the decision of the local appellate body modifies or reverses the previous decision, the commissioners shall be required to file a new appeal from that decision.
c. Grounds for appeal, pursuant to subsection (2)(a)(2), shall be limited to an allegation that the development does not conform to standards set forth in the certified Local Coastal Program or the Public Access Policies set forth in the California Coastal Act. d. The grounds for an appeal of a denial of a permit pursuant to subsection (2)(a)(1) shall be limited to an allegation that the development conforms to the standards set forth in the certified Local Coastal Program and the public access policies set forth in the California Coastal Act. e. Appeals to the Coastal Commission pursuant to this section must be filed with the Coastal Commission on forms prescribed by and available from the Coastal Commission.

Section 4. Section 24.12.1755 of Chapter 24.12 of the Santa Cruz Municipal Code regarding Properties with Accessory Dwelling Units is hereby amended to read as follows:

24.12.1755 PROPERTIES WITH ACCESSORY DWELLING UNITS.

1. Short-term rentals are not permitted in an accessory dwelling unit, junior accessory dwelling unit, or associated primary dwelling,in the main house of an accessory dwelling unit property, except as provided below.

2. An existing accessory dwelling unit property may apply for a short-term rental permit in cases where the accessory dwelling unit property:
a. Was issued a transient occupancy registration certificate prior to November 10, 2015; and b. Is in the same ownership as when the transient occupancy registration certificate obtained prior to November 10, 2015, was issued; and

15.73 ORDINANCE NO.
c. Is in compliance with the provisions of Chapter 3.28, including payment of all taxes, penalties, and interest due, for any short-term rentals; and d. Is in compliance with the principal residency requirements specified in this chapter; and e. Has remitted transient occupancy tax to the city within the previous calendar year.

Section 5. The City Council finds and determines that the adoption of this ordinance is considered a “project” under California Code of Regulations, Title 14, section 15378(a)(1) of the California Environmental Quality Act (CEQA) Guidelines, typically subject to environmental review. The City Council finds that these amendments to the Santa Cruz Municipal Code are needed to ensure consistency with state ADU law, and therefore pursuant to Public Resources Code Section 21080.17, no further environmental review under the California Environmental Quality Act (CEQA) is required; and these amendments can be seen with certainty to have no possibility for causing a significant effect on the environment, and, therefore, pursuant to California Code of Regulations, Title 14, section 15183 of the CEQA Guidelines, no further environmental review under CEQA is required.

Section 6. 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 7. This ordinance shall take effect and be in full force thirty (30) days after final adoption outside of the Coastal Zone. Within the Coastal Zone, this ordinance shall take effect and be in full force after approval by the California Coastal Commission, but no earlier than thirty (30) days after final adoption.

PASSED FOR PUBLICATION this 10th day of February 2026, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: __________________________
Fred Keeley, Mayor
ATTEST: ___________________________
Bonnie Bush, City Clerk Administrator
PASSED FOR FINAL ADOPTION this 24th day of February 2026 by the following vote:

AYES:

NOES:

ABSENT:

15.74 ORDINANCE NO.

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. 202X-XX
and that it has been published or
posted in accordance with the
Charter of the City of Santa Cruz.
___________________________
City Clerk Administrator

15.75 PLANNING COMMISSION

AGENDA REPORT
DATE: 1/9/2026
AGENDA OF: 1/15/2026
ITEM NO: Amendments to Municipal Code Chapter 24.04 – Administration, Section

24.12.1755 – Properties with Accessory Dwelling Units, and Chapter 24.16 Part 2 – Accessory Dwelling Units to align local accessory dwelling unit regulations with new state laws, clarify language of existing regulations, and other minor changes.

CEQA: Exempt pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines Section 15061(b)(3).

Applicant: City of Santa Cruz.

RECOMMENDATION: That the Planning Commission make findings for Zoning Ordinance amendments pursuant to Municipal Code Section 24.06.040 and recommend that the City Council:
1) Approve the proposed amendments to City of Santa Cruz Municipal Code Chapter 24.04,

24.12.1755, and 24.16 Part 2, and to the Local Coastal Program, and any clarifying corrections required to LCP amending sections as a result of review by the State Department of Housing and Community Development; and
2) Acknowledge the determination that the proposed amendments are exempt from environmental review under Public Resources Code Section 21080.17 and California Environmental Quality Act (CEQA) Guidelines Sections 15061(b)(3).

BACKGROUND: In 2025, the state approved several new laws that affect accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs). The bills, SB 543, AB 1154, and AB 462, made several minor changes to the approval process of ADU applications, development standards, and coastal permit appeals. These new laws took effect January 1, 2026, and the Municipal Code must be updated accordingly to remain consistent with state law. The proposal updates the City’s regulations to ensure continued consistency with state law and make other minor changes to clarify the language of existing regulations.

DISCUSSION: The proposed updates will implement state law changes made by SB 543, AB 1154, and AB 462 as described in the following table:

15.76 State Law New Requirements
SB 543 • ADU and JADU size are now
measured in terms of interior livable
space rather than floor area to exterior
building walls.
• City must provide a completeness
determination for ADU and JADU
permit applications.
• City must provide specified process to
allow appeal of completeness
determination or denial of ADU or
JADU permit.
• JADUs are now eligible for same fire
sprinkler and fee exceptions as ADUs.

AB 1154 • Owner-occupancy no longer required
on site if JADU has its own separate
bathroom facilities.
• JADUs must be rented for a term of
more than 30 days.

AB 462 • Coastal Permits for ADUs are no
longer appealable to the Coastal
Commission.

The appeal process for an ADU or JADU completeness determination or permit denial required by SB 543 allows the City to decide whether appeals can be made to the Planning Commission or to the City Council. Staff propose that the Planning Commission be the final appeal authority, given its land use expertise. For appeals that involve challenges related to the interpretation of regulations for building or fire safety, the applicant would be required to first appeal to the Board of Building and Fire Appeals, since such appeals would need the technical analysis that this board can provide. The decision of the Board of Building and Fire Appeals could subsequently be appealed to the Planning Commission.

The proposal also makes other minor changes to the language of the regulations to clarify existing requirements.

LCP and Coastal Act Consistency
The City’s Local Coastal Program (LCP) is the tool used by the City and the Coastal Commission to implement the California Coastal Act and regulate development activities within the Coastal Zone. The proposed modifications to Section 24.04.095 related to coastal permit noticing for ADUs, Section 24.04.130 related to the hearing body with final authority on application approval, Section 24.04.186 related to appeals of ADUs to Coastal Commission, and Section 24.12.1755 related to short-term rentals of ADUs and JADUs are part of the LCP Implementation Plan and are consistent with the LCP and the Coastal Act.

15.77 The proposed amendments are consistent with land use regulations in the LCP and Coastal Act in that they would facilitate allowed existing development capacities rather than increasing those capacities, which are already permitted by the LCP, and they would have no physical effect on the size or type of development permitted within the Coastal Zone.

Community Outreach
This item involves only amendments to ensure consistency with state law and to clarify existing regulations.. In this instance, the January 15th, 2026 Planning Commission meeting and two subsequent City Council meetings provide necessary opportunity for public input on this item.

Review by State Housing and Community Development Department California Coastal Commission and the California Department of Housing and Community Development (HCD) have collaborated on an effort to streamline review of changes to ADU ordinances that are also part of a Local Coastal Program (LCP). To complete this process, the City must submit a draft of any ordinance that includes ADU-related LCP amendments to HCD, who should complete their review prior to approval by City Council and subsequent submittal of the ordinance amendments to the Coastal Commission. Given timing constraints, this HCD review has been initiated but will not be completed prior to Planning Commission review of the ordinance. The proposed changes within the LCP are minor and straightforward, and staff does not anticipate corrections as a result of HCD review. However, as a precaution, the recommended motion would allow staff to make any clarifying corrections required by the state to the portion of the amendments within the LCP prior to City Council approval and without returning to Planning Commission for further recommendation.

Next Steps
Following action by the Planning Commission, the proposed amendments will proceed to City Council. The proposal will have a first reading before the City Council, currently anticipated on February 10, 2026 and a second reading anticipated on February 24, 2026. Those amendments that are not amendments to the LCP IP will take effect thirty days after final action by the City Council, while those that are subject to California Coastal Commission jurisdiction will be submitted to the Coastal Commission for review and will take effect immediately upon final action by that body. Staff anticipate action by the Coastal Commission to take place in 2026.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed amendments are exempt from environmental review under Public Resources Code Section 21080.17 as an ordinance to implement ADU state law and under California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3) as a project that can be seen with certainty to have no possibility for causing a significant effect on the environment.

HEALTH IN ALL POLICIES (HiAP): In 2019, the City adopted a Health in All Policies strategy to eliminate inequities in health and well-being and attain equity for all residents. The proposed amendments further the City’s Health in All Policies strategy, as they facilitate creation of housing that is affordable by nature, promoting more equitable access to housing. The proposed amendments support infill housing development in existing residential neighborhoods, promoting a sustainable development pattern and making efficient and sustainable use of urbanized land.

15.78 FINDINGS: Zoning Ordinance Section 24.06.040 requires that prior to making a recommendation for approval of General Plan or Zoning Ordinance amendments to the City Council, the Planning Commission shall make findings that the public necessity, and the general community welfare, and good zoning practice shall be served and furthered; and that the proposed amendment is in general conformance with the principles, policies and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan.

Similar findings are also required in the Local Coastal Program for any amendments to the LCP.

These findings include: (1) the proposed amendment is deemed to be in the public interest; (2) the proposed General Plan and/or Local Coastal Program amendment is consistent and compatible with the rest of the General Plan and LCP and any implementation programs that may be affected; (3) the potential impacts of the proposed amendment have been assessed and have been determined not to be detrimental to the public health, safety, or welfare; and (4) the proposed amendment has been processed in accordance with the applicable provisions of the California Government Code and the California Environmental Quality Act (CEQA).

The proposed amendments serve and further public necessity, general community welfare, and good zoning practice by conforming with state law changes to support the development of ADUs and JADUs and improving clarity of existing regulations. The proposed amendments are in general conformance with the principles, policies and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan as described above. The proposed amendments are consistent with the provisions of CEQA as discussed above.

Submitted By:

Clara Stanger
Senior Planner
Approved By:

Matthew VanHua, AICP
Principal Planner
ATTACHMENT:
• DRAFT ACCESSORY DWELLING UNIT AMENDMENTS, TRACK CHANGES (LCP IP)
• DRAFT ACCESSORY DWELLING UNIT AMENDMENTS, TRACK CHANGES (NONLCP IP)

15.79 2026 ADU Ordinance
Updates
Community Development
City Council | February 10, 2026

15.80 2026 ADU Updates
• State laws in effect 2026: SB 543, SB 1154, AB
462
• Update language to clarify existing standards

15.81 State Law Updates
• Development standards:
• ADU/JADU size measurement
• Fire sprinklers
• Fees
• Use standards:
• JADUs long-term rental only
• JADUs with bathrooms: no owner
occupancy required
• Permit Processing:
• Completeness determination
• Building permit appeals
• Coastal permit appeals 15.82
ADUs and Short-Term Rentals
Planning Commission: Allow short-term
rental of primary dwelling:
• Up to 7 consecutive days
• Up to 90 days per year
• Must be owner's principal residence

15.83 February 10
City Council 1st reading
February 24
City Council 2nd reading
Spring 2026
CA Coastal Commission
Next
Steps

15.84 Recommendation
Motion to:
1) Introduce for publication an ordinance amending Chapter 24.16 Part 2 of the Santa Cruz Municipal Code (SCMC) related to Accessory Dwelling Unit Regulations;
2) Introduce for publication an ordinance amending the Local Coastal Program (LCP) Implementation Plan (IP), amending Chapter 24.04 and Section 24.12.1755 of the Municipal Code related to Coastal Commission appeal of Accessory Dwelling Unit coastal permits and length of tenancy in Junior Accessory Dwelling Units; and
3) Acknowledge the determination that the proposed amendments are exempt under Public Resources Code Section 21080.17 as an ordinance to implement ADU state law and 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. 4) Provide direction to staff on whether or not to bring back, at a later date, an analysis of Planning Commission’s recommended changes to short-term rental regulations as they relate to Accessory Dwelling Units for further consideration by Planning Commission and City Council.

15.85 16.1

17.1 17.2

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