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property. Tenant shall surrender the Premises and all improvements constructed thereon to Landlord at the expiration or earlier termination of this Lease, free and clear of all liens, encumbrances, and third party claims. Tenant shall indemnify, defend and hold harmless Landlord against all liability and loss arising from such liens, encumbrances, or claims and/or from Landlord’s exercise of the rights conferred by this Section. Tenant agrees to execute, acknowledge, and deliver to Landlord any instrument requested by Landlord as necessary in Landlord's opinion to perfect Landlord's right, title, and interest in and to the Premises and the permanent improvements and fixtures located thereon. Tenant may remove any movable personal property and equipment, provided such removal is consistent with Section 9.04 (Trade Fixtures) and Tenant shall repair any damage caused by such removal. Tenant shall not remove trade fixtures, display items, machinery or other trade equipment except as allowed pursuant to Section 9.04 (Trade Fixtures) above. Notwithstanding anything contained in this Lease that may be construed to the contrary, to the full extent permitted by law (including, but not limited to, California Public Resources Code Section 6312, or any successor statute), the Parties agree that upon expiration or earlier termination of this Lease, Landlord shall have no liability or obligation to pay compensation for any improvements made to the Premises.
ARTICLE 10 - MAINTENANCE AND REPAIRS
10.01 Landlord’s Maintenance Obligations.
(a) Landlord shall maintain in good condition and repair the foundations, roofs, the Wharf substructure and pilings, and exterior surfaces of exterior walls of the Premises (exclusive of doors, door frames, door checks, windows, window frames and store fronts); provided, however, if any repairs or replacements are necessitated by the acts, omissions, negligence, gross negligence or willful acts of Tenant (or its officers, directors, employees, representatives, agents, volunteers, contractors, subcontractors, suppliers, customers, invitees, or others acting on Tenant’s behalf or under Tenant’s authority or control), or trespassers, or by reason of Tenant’s failure to observe or perform its obligations and/or any provisions contained in this Lease or caused by alterations, additions or improvements made by Tenant or its directors, officers, employees, representatives, agents, contractors, subcontractors, laborers or materialmen, the cost and expense of such repairs and replacements shall be the sole obligation of Tenant.
(b) Landlord shall maintain and inspect all fire sprinkler systems on the Premises in accordance with the California Fire Code and Santa Cruz Municipal Code Chapter 19.05, and any other applicable state or local rules and regulations. Landlord shall comply with all requirements of the Landlord’s insurance underwriters and any other governmental authority having jurisdiction thereof, regarding the installation and periodic maintenance of fire suppression systems or apparatus on the Premises. All costs related to the maintenance and inspection of fire sprinkler systems on the Premises shall be considered Additional Rent and billed to Tenant. (c) Tenant shall be solely responsible for all repairs to and maintenance of the Premises and improvements constructed by Tenant (including, but not limited to, any Tenant Improvements) which are not expressly allocated to the Landlord under this Lease or by separate written Lease between the Landlord and Tenant.
(d) Tenant acknowledges and agrees that it shall be responsible for paying Landlord a pro rata share of Landlord’s Operating Expenses in maintaining the surfaces of the exterior walls and for periodic cleaning of awnings and of the roof of the building in which the Premises are located as set forth elsewhere in this Lease. Landlord agrees to exercise reasonable effort to obtain cleaning and maintenance services at a reasonable and market rate.
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(e) In its sole discretion, or in the event Tenant fails to maintain, repair, or replace any mechanical or electrical system (including, but not limited to, the HVAC systems) in accordance with Section 10.03 (Tenant’s Maintenance Obligations), Landlord may contract with a service company licensed and experienced in servicing the applicable systems and/or equipment and approved by Landlord for regular maintenance, repairs and replacement, if required, of the applicable systems and/or equipment serving the Premises. Tenant shall be responsible for the costs and expenses of such maintenance, repairs or replacement as set forth in this Lease.
(f) Unless Tenant notifies Landlord in writing of the need for repairs under this provision, Landlord shall not be liable to Tenant or others for its failure to make such repairs.
Landlord shall be entitled to a reasonable period of time to effect such repairs upon receipt of said written notice from Tenant. Tenant expressly waives and agrees not to assert as an affirmative defense in any judicial proceeding or arbitration brought by Landlord against Tenant (1) the right to require Landlord to make repairs; (2) any right to make repairs at the expense of Landlord; (3) the right to reduce or offset rent as a consequence of the condition of the Premises or the improvements located thereon; (4) the benefits of California Civil Code Section 1932, 1941, and 1942, as amended from time to time, or any superseding statute, and of any other Law permitting Tenant to make repairs at Landlord's expense; and (5) any Law, judicial pronouncement, or common law principal similar thereto, which is now or hereinafter in effect or is otherwise inconsistent with the provisions of this Lease.
10.02 Landlord’s Right of Entry. Landlord, its agents, contractors, employees, representatives, contractors, and assigns may enter the Premises at all reasonable times to:
(a) Examine the Premises and improvements thereon;
(b) Perform any obligation of, or exercise any right or remedy of, Landlord under this Lease;
(c) Make improvements, alterations, additions, or repairs to the Premises, or to other portions of the Wharf as Landlord deems necessary; (d) Perform work necessary to comply with laws, ordinances, rules or regulations of any public authority or any insurance underwriter;
(e) To post “for rent” or “for lease” signs or to show prospective tenants the Premises during the last six (6) months of the Term; and (f) Perform work that Landlord deems necessary to prevent waste or deterioration in connection with the Premises and/or the Wharf should Tenant fail to commence to make, and diligently pursue to completion, in a reasonable time, as defined by Landlord, Tenant’s required repairs after written demand therefore by Landlord. Landlord will give Tenant a minimum of twenty-four (24) hours advance notice of such entry when practical, except in the case of an emergency and/or in situations involving an immediate peril and/or hazard to the Wharf, when such entry shall be made summarily by Landlord. Landlord shall be the sole and exclusive judge as to what constitutes immediate peril and hazard to the Wharf.
Tenant hereby waives any claims for damage against Landlord arising from loss of business by reason of Landlord’s entry onto, use of, modification to, and/or removal of all or any portion of the Premises or any structure or building on the Wharf for the purpose of making improvements, alteration, additions and/or repairs to the Premises or to any other area.
Tenant shall furnish key(s) to Premises within ten (10) days of Landlord’s written request.
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10.03 Tenant’s Maintenance Obligations.
(a) Except as provided elsewhere in this Lease or as expressly assigned to Landlord, Tenant, at its sole cost and expense, shall clean and maintain the Premises and any Improvements in good order, condition and repair and shall make all replacements necessary to keep all portions of the Premises and any Improvements (including inside and outside) in a safe, clean, neat, and sanitary condition, including, but not limited to, maintenance, repair, and replacement of interior plumbing and fixtures and HVAC systems. For the purposes of this Section, the term “Improvements” shall be inclusive of any such improvements on, in, at, about, from, or under the Premises, that are not otherwise the responsibility of the Landlord and those specified in Section 10.01(b). Without limiting the foregoing, Tenant’s maintenance obligations shall include, without limitation, the following:
(1) Cleaning the building sewer main and the sewer distribution system related to the Premises and Improvements located (or to be located) thereon with a rotorooter system as needed. (2) Maintaining, without limitation, all plumbing fixtures and the plumbing system in the Premises and Improvements located (or to be located) thereon. (3) Steam-cleaning or pressure washing the pedestrian sidewalk fronting the Premises on a quarterly basis or upon Landlord’s request. (4) Keeping and maintaining the sidewalk, ramp, and railings fronting the Premises in good condition and repair, free and clear of all obstacles, stands, dirt, mud, water, debris, rubbish, filth, and other encumbrances or obstructions, and safe and convenient for the use of the public.
(5) Washing windows inside and out on a regular basis; maintaining flags, awnings and signs in a good condition; keeping lights operable; washing any fabric awnings regularly and repairing immediately if ripped or torn; removing graffiti immediately; cleaning and polishing regularly any brass or metallic hardware. (6) Handling, recycling and/or disposing of all waste on, in, at, about, from, or under the Premises consistent with City’s applicable rules and regulations. (7) In the event, Tenant chooses to paint the exterior of the Premises, Tenant shall endeavor to conduct all exterior painting activities during typically rain free months (April through September); and, Tenant shall thereafter be responsible for maintenance of any such painted surfaces, except if reverting to City specified color and motif, at Landlord’s sole discretion. Tenant shall address any paint issues, and repaint surfaces as needed, within ninety (90) days of any request by Landlord. Any painting of the building exterior shall require Landlord’s approval of color, material, and motif.
(b) All replacement equipment shall be of a quality, value and use equal to or exceeding that of the original equipment or Improvements. Should Tenant fail to promptly and diligently make these repairs and replacements or otherwise maintain and/or repair the Premises and Improvements located (or to be located) thereon for a period of three (3) days after delivery of a written demand by Landlord, Landlord shall have the right (but not the obligation) to make such repairs or replacements without liability to Tenant for any loss or damage that may occur to Tenant’s stock or business, and Tenant shall pay for all costs and expenses incurred by Landlord in making such repairs and/or replacements, together with interest thereon at the maximum rate permitted by law from the date of commencement of the work through the date of
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payment. Tenant shall, at its sole cost and expense, promptly and diligently repair any damage to the Premises, building(s) and/or Improvements located (or to be located) on the Premises, and/or the Wharf caused by Tenant, its officers, directors, employees, representatives, agents, volunteers, contractors, subcontractors, suppliers, customers, invitees, subtenants, assignees, concessionaires, or others acting on Tenant’s behalf or under Tenant’s authority or control, or caused by the installation or removal of Tenant’s personal property.
10.04 Windows. Tenant shall replace, at its expense, any and all damaged or broken glass and plate glass components on or about the Premises resulting from any cause whatsoever other than that proximately caused by the sole negligence or willful misconduct of Landlord.
Tenant shall have full responsibility, at its sole discretion, to either self-insure or obtain insurance policies covering damage or replacement of said glass and plate glass components. If Tenant elects not to obtain such insurance coverage, it does so at its sole risk.
10.05 Requirements of Governmental Bodies. At all times during the Term of this Lease, Tenant, at Tenant's sole cost and expense, shall do all of the following:
(a) Make all improvements, alterations, additions, and/or repairs to, on, in, at, about from, or under the Premises required by any Laws (including, but not limited to, ADA) now or hereafter in effect and applicable;
(b) Indemnify, defend and hold Landlord (and Landlord’s officers, officials, employees, representatives, and agents) and the property of Landlord, including, but not limited to the Premises, free and harmless from any and all liability, loss, cost, damages, fines, penalties, claims, and actions resulting from or related to the Tenant's failure to comply with and perform the requirements of this Section.
ARTICLE 11 – UTILITIES AND SERVICES
11.01 Separate Charges. Tenant shall make all arrangements and be solely responsible for obtaining all gas, water, electricity, heat, fuel, communication service, refuse disposal, sewer, grease interceptor, maintenance, security services, and other utilities and services (collectively “Utilities and Services”) for the Premises and/or improvements located or to be located thereon (including, but not limited to any Tenant Improvements). Tenant shall promptly pay or cause to be paid before delinquency, and hold Landlord and Landlord's property, including, but not limited to, the Premises and improvements located or to be located thereon (including, but not limited to, any Tenant Improvements) free and harmless from, all charges, costs and expenses for the furnishing of all Utilities and Services to the Premises and/or improvements located or to be located thereon and for the removal of garbage, tallow, and rubbish from the Premises and/or improvements located or to be located thereon.
Tenant shall pay for all water, gas, heat, light, power, communication service and any other utilities metered or otherwise separately charged to the Premises.
11.02 Jointly Metered Utilities. Tenant shall pay, as Additional Rent, a pro rata share of any Utilities and Services which are jointly metered or charged. Tenant’s pro rata share of these charges and fees shall be based upon the ratio of the square footage of the Premises to the total square footage of the building or buildings serviced by such meter, plus any extraordinary uses by Tenant which may be reasonably ascertained by Landlord. Such charges will be paid as Rent to Landlord at the time of regular Rent payments.
In the event that any other premises shall be sub-metered or otherwise utilize utilities for which the Tenant is the primary account holder and responsible for payment, Tenant shall be
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entitled to recoup a pro rata shared of such charges and fees as can be reasonably assigned to the secondary user.
11.03 Interruption. Landlord shall not be liable for any failure or interruption of any Utilities and Services being furnished to the Premises, and no such failure or interruption shall entitle Tenant to terminate this Lease.
11.04 Electricity Use Included. INTENTIONALLY OMITTED.
11.05 No Offset. Any payments under this Section shall not reduce or offset Rent payments. Landlord has no liability for such payments.
ARTICLE 12 - INDEMNIFICATION AND INSURANCE
12.01 Indemnification. In addition to any other indemnity provided for in this Lease, and to the fullest extent permitted by law, Tenant agrees to indemnify, defend (with counsel reasonably satisfactory to Landlord), and hold harmless Landlord, its officials, officers, directors, employees, agents, attorneys, volunteers, representatives, successors and assigns (“Indemnified Parties”) from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney’s fees, disbursements and court costs) for any injury or damage to person or property, or of any other kind or nature, that may arise from or in any manner relate to (directly or indirectly): (i) the rights and/or obligations of Tenant, its employees, and agents under this Lease, (ii) the acts or omissions or negligence or willful misconduct of Tenant or its officers, directors, employees, agents, representatives, invitees, customers, contractors, sublessees, suppliers, trespassers, or others acting on Tenant’s behalf or under Tenant’s authority or control as related to this Lease, (iii) the occupancy and/or use of the Premises, or improvements to the Premises (including, but not limited to any Tenant Improvements or personal property located therein) by Tenant, or its officers, directors, employees, agents, servants, representatives, volunteers, guests, invitees, customers, contractors, subcontractors, suppliers, laborers, materialmen, sublessees, or others acting on Tenant’s behalf or under Tenant’s authority or control (collectively “Tenant Agents” and individually “Tenant Agent”), (iv) any breach or default under this Lease by Tenant; and/or (v) any construction or other work undertaken by Tenant on the Premises (including any Tenant Improvements)(individually, each a “Claim” and, collectively, “Claims”).
Tenant’s obligations in this Section shall not extend to any Claim that is caused by the sole negligence or willful misconduct of Landlord or an Indemnified Party, subject to any immunities which may apply to Landlord with respect to such Claims. Tenant’s obligation to defend shall arise regardless of any claim or assertion that Landlord caused or contributed to the Claims. This Section and any other indemnification provided elsewhere in this Lease shall survive the termination of this Lease and shall survive for the entire time that any third party can make a Claim.
Tenant shall ensure that its contractors and subcontractors (e.g. those constructing any Tenant Improvements or performing any work on the Premises) also fully indemnify, defend and hold harmless the Indemnified Parties to the same extent that Tenant is required to indemnify, defend and hold harmless such Indemnified Parties.
12.02 Insurance Requirements. Upon execution of this Lease, and, in any event, before Tenant enters the Premises (or any portion thereof) or commences any work on or at the Premises, Tenant shall, at its sole cost and expense, procure and maintain in full force and effect for the duration of this Lease, insurance as required by Exhibit G (Insurance Requirements) to protect against claims for injuries to persons or damages to the Premises and to loss or damage
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to Tenant’s trade fixtures, personal property, and improvements, which may arise from or in connection with the Tenant’s operation and use of the Premises. The cost of such insurance shall be borne by the Tenant.
12.03 Review of Coverage. Landlord may increase or decrease the amount of commercial general liability insurance required herein, based upon a general review by Landlord of the standard insurance requirements. Changes in insurance amounts shall occur not more frequently than once a year. Landlord will notify Tenant of any changes under this provision of this Lease. Landlord may also require Tenant’s contractor or subcontractor to obtain insurance sufficient in coverage, form, and amount to provide adequate protection for Landlord, Tenant, and/or those using the Premises.
12.04 Tenant’s Failure to Maintain Insurance.
(a) Tenant agrees that if Tenant does not procure, maintain and show evidence of any insurance policy required under this Lease or fails to pay any premiums when due, Landlord may, at its election (but without any obligation to do so), either terminate this Lease, require that the Premises be immediately closed for business pending reinstatement of insurance by Tenant, or obtain the necessary insurance and pay the premium, and the repayment thereof shall be deemed to be Additional Rent due by the Tenant and payable on the next date upon which a payment of rent is due.
(b) Landlord has the right at any time to demand a copy of a Certificate of Insurance from Tenant for the policies of insurance required herein and any other reasonable evidence proving compliance with these provisions. (including, but not limited to, complete, certified copies of all required insurance policies, including, but not limited to, endorsements). The failure to provide the Landlord with such evidence within five (5) calendar days of such demand shall constitute a material breach of this Lease.
(c) In the event that Tenant fails to maintain insurance coverages, as required in this Lease, and a loss or damage occurs that results in Landlord’s liability for copayments, deductibles, or other such charges to replace the loss under Landlord’s applicable insurance policy, Tenant agrees to reimburse the City for all such charges within ninety (90) days of the City’s notification to Tenant.
12.05 Waiver of Subrogation. Tenant for itself and on behalf of its insurers, hereby waives and releases the Landlord, and its officers, officials, directors, employees, agents, representatives, and volunteers (i.e. the additional insureds) from liability for injury to any person or damage to property that is caused by or results from any risk covered under any insurance policy required by this Agreement or any other valid and collectible insurance policy otherwise carried by Tenant. Tenant agrees to defend, indemnify and hold Landlord and its officers, officials, directors, employees, agents, representatives, and volunteers harmless from any and all such liability. Tenant shall obtain a waiver of any subrogation right that its insurers may acquire against any of the additional insureds by virtue of payment of any such loss covered by such insurance.
12.06 Waiver of Loss and Damage. Landlord shall not be liable for any damage to inventory or other property of Tenant, or others, located in, on, at, or about the Premises, nor for the loss of or damage to any property of Tenant or of others by theft or otherwise, which is not proximately caused by Landlord’s sole negligence or willful misconduct, and Tenant waives any claim against Landlord with respect to such property. Landlord shall not be liable to Tenant or Tenant’s officers, directors, employees, agents, representatives, volunteers, contractors, subcontractors, guests, invitees, or customers for any injury or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas, electricity, water, rain or leaks from any part of the Premises or from the pipes, appliance or plumbing works or from the roof, street or subsurface or from any other places or by any other cause of whatsoever nature. Landlord shall
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not be liable to Tenant or Tenant’s officers, directors, employees, agents, representatives, volunteers, contractors, subcontractors, guests, invitees, or customers for any such damage caused by other tenants or persons in the Premises, occupants of adjacent property of the Wharf, or the public, or caused by operations in construction of any private, public or quasi-public work.
All property of Tenant kept or stored on the Premises shall be so kept or stored at the sole risk of Tenant, and Tenant shall hold Landlord harmless from any claims arising out of damage to the same, including, but not limited to, subrogation claims by Tenant’s insurance carriers, unless such damage shall be proximately caused by the willful act or sole negligence of Landlord.
12.07 Notice by Tenant. Tenant shall give prompt notice to Landlord in case of fire or accidents in or around the Premises or of any damage or defects in the Premises (or any improvements located thereon), or any fixtures or equipment therein.
ARTICLE 13 - PARKING
13.01 Employee Parking. Tenant understands and agrees that it will use good faith efforts to discourage Tenant’s employees from parking on the Wharf except by permit which may be issued by Landlord. Tenant and its employees shall park their vehicles only in those areas as may be designated for such purpose by Landlord. Tenant and its employees agree not to occupy parking places directly in front of Wharf businesses.
13.02 Customer Parking. Landlord shall have the right to adopt and implement such parking programs as may be necessary to alleviate parking problems during peak traffic periods, including, without limitation, requiring the use of off-site parking. Landlord reserves the right to change the entrances, exits, traffic lanes, and the boundaries and locations of the parking area.
Tenant shall be responsible for compliance with all parking rules and regulations as may be adopted and implemented by Landlord from time to time, including, without limitation, systems of validation, shuttle transportation or any other programs which may be deemed necessary or appropriate by Landlord to control, regulate or assist parking by customers of the Wharf.
ARTICLE 14 – TRANSFER, ASSIGNMENT AND SUBLETTING
14.01 Transfers Prohibited. Tenant and its permitted successors and assigns shall not either voluntarily, or by operation of law, Transfer (as defined below) its interest in this Lease or in the Premises, or any portion thereof, without first providing written request to Landlord and obtaining Landlord’s prior written consent pursuant to Section 14.02(b) below (which consent may be withheld or delayed in Landlord’s sole discretion). As used in this Lease, the term “Transfer” means any attempt to sell, convey, assign, sublease, transfer, mortgage, pledge, grant, hypothecate or encumber this Lease or any interest in this Lease, or the Premises or any portion thereof or the buildings and improvements thereon, and any attempt to sublet, license or grant any concession to the Premises, in whole or in part, or allow any person other than Tenant’s employees, agents, customers, and invitees to occupy or use all or any portion of the Premises.
14.02 Landlord Consent; Tenant’s Request to Landlord.
(a) Any Transfer made in violation of this Article 14 is voidable, at Landlord’s election, and shall constitute a default subject to the cure right in Article 15 (Default). (b) For purposes of this Article 14, the consent to any Transfer must be obtained from the City Council, or any agent or representative authorized by said City Council to give said consent. Unless otherwise provided in writing by Landlord, approved transferees and assignees may not extend the Initial Term of this Lease (and any applicable Extended Term) by exercising any option(s) to extend or renew the Initial Term (or Extended Term, as applicable) of this Lease
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granted herein that have not already commenced at the time of said assignment, sublease or other Transfer.
(1) Notwithstanding anything to the contrary herein, Landlord reserves, at Landlord’s sole discretion, all authority to withhold, deny, approve, or otherwise require the modification of any proposed Transfer.
(c) Tenant shall comply with the following requirements for any Transfer. Tenant agrees that failure to satisfy these requirements are reasonable bases for Landlord to deny consent but is not exhaustive of the bases to deny consent:
(1) Tenant shall give Landlord at least thirty (30) days’ written notice of its proposed Transfer and provide appropriate documentation demonstrating, to Landlord’s satisfaction, the financial and operational responsibility and appropriateness of the proposed transferee. Tenant shall provide Landlord within five (5) days such other or additional information and/or documentation as may be reasonably requested by Landlord; and
(2) Tenant shall provide the terms and provisions of the proposed Transfer; and (3) The proposed assignee or transferee shall expressly assume all the terms, covenants, obligations, responsibilities, liabilities, duties, and conditions of this Lease.
14.03 Involuntary Assignment. No interest of Tenant (or Tenant’s shareholders as of the Effective Date) in this Lease, shall be assignable by operation of law including, without limitation, the Transfer of this Lease by testate or intestate succession, except to Tenant’s heirs at law in the first degree. Each of the following acts shall be considered an involuntary assignment:
(a) If Tenant is or becomes bankrupt or insolvent, makes an assignment for the benefit of creditors, or institutes a proceeding under the Bankruptcy Act in which Tenant is the bankrupt; or, if Tenant is a partnership or consists of more than one person or entity, if any partner of the partnership or other person or entity is or becomes bankrupt or insolvent, or makes an assignment for the benefit of creditors;
(b) If a writ of attachment or execution is levied on this Lease; (c) If, in any proceeding or action to which Tenant is a party, a receiver is appointed with authority to take possession of the Premises;
An involuntary Transfer shall constitute a default by Tenant and Landlord shall have the right to elect to terminate this Lease, in which case this Lease shall not be treated as an asset of Tenant.
If a writ of attachment or execution is levied on this Lease, Tenant shall have fifteen (15) days in which to cause the attachment or execution to be removed. If any involuntary proceeding in bankruptcy is brought against Tenant, or if a receiver is appointed, Tenant shall have thirty (30) days in which to have the involuntary proceeding dismissed or the receiver removed.
14.04 Consent Required. Tenant shall not, without Landlord’s prior written consent, Transfer any interest in this Lease or any right or privilege appurtenant hereto or permit use of the Premises by any person or persons other than Tenant, its employees, agents, invitees, and customers. It is agreed that Landlord will not be acting unreasonably in refusing to consent to a Transfer if, in Landlord’s opinion, (A) the quality of the operation of the proposed assignee or transferee is not equal to or better than that of the Tenant, (B) such assignee or transferee may
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adversely affect the business of the other tenants or the tenant mix in the Wharf or Landlord’s ability to obtain Rent, (C) such assignee or transferee does not have a positive net worth on the date of assignment, or (D) such assignee or transferee does not have a net worth on the date of assignment that is equal to or greater than Tenant and Guarantor’s combined net worth as of the Effective Date of this Lease. The term “net worth” shall mean the amount by which the total of all assets shall exceed the total of all liabilities as determined by an independent certified public accountant in accordance with generally accepted accounting principles.
14.05 Deemed Assignment. Any Transfer of this Lease from Tenant by merger, consolidation, liquidation or sale of a controlling interest of corporate stock shall constitute an assignment. All Transfers shall require Landlord’s prior written approval pursuant to this Article
14. 14.06 Unauthorized Assignment or Sublease. Any attempted Transfer without Landlord’s required consent shall be void. Any assignee, subtenant, transferee or other recipient of Tenant’s interest in this Lease is hereby notified that such Transfer is of no force or effect without Landlord’s prior written consent.
14.07 Expenses and Attorneys’ Fees. Tenant shall pay to Landlord, all of Landlord’s costs and expenses (including reasonable attorneys’ fees) incurred by Landlord in connection with reviewing, considering, or consenting to any proposed Transfer, regardless of whether such transfer is approved or consummated, or in connection with any other actions taken by Landlord pursuant to this Article 14.
14.08 Effect of Consent. Consent by Landlord to a Transfer shall not release Tenant from its primary liability under this Lease. Landlord’s consent to one Transfer or occupation by other parties shall not be deemed a consent to other or future assignments or use by other parties, or constitute a waiver of the requirements of this Article 14.
14.09 Surrender of Lease. The voluntary or other surrender or a cancellation of this Lease by Tenant shall not work a merger, and shall, at the election of Landlord, either terminate all or any existing subleases or sub-tenancies or may operate as an assignment to Landlord of any or all of such subleases or sub-tenancies. Landlord shall exercise its election within thirty (30) days of the event so requiring.
ARTICLE 15 - DEFAULT
15.01 Events of Default. The occurrence of any of the following shall constitute a material breach and an Event of Default of this Lease by Tenant:
(a) The failure of Tenant to pay or cause to be paid any Rent, monies or other charges due Landlord as set forth in this Lease on or before the due date for payment of any such amounts;
(b) The failure of Tenant to maintain all insurance coverage as set forth in Article 12 (Indemnification and Insurance);
(c) The abandonment of the Premises by Tenant, which shall mean failure to operate as set forth in this Lease for five (5) consecutive days, except by prior written notice by Tenant to Landlord at least fourteen (14) days in advance and with the written consent of Landlord; (d) Except as otherwise provided in this Lease, the failure of Tenant to do or cause to be done any act as set forth in this Lease, if the failure continues for fifteen days (15) consecutive days after notice has been given to Tenant. However, Tenant shall not be in default
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of this Lease if Tenant commences to cure the default within said fifteen (15) day period and diligently and in good faith continues to cure the default to the satisfaction of the Landlord; (e) Tenant causing, permitting or suffering, without the prior written consent of Landlord, any act when this Lease requires Landlord’s prior written consent or prohibits such act; or
(f) Any act of bankruptcy caused, suffered or permitted by Tenant. For the purposes of this Lease, “act of bankruptcy” shall include any of the following:
(i) Any general assignment or general arrangement for the benefit of creditors;
(ii) The filing of any petition by or against Tenant to have Tenant adjudged a bankrupt or a petition for reorganization or arrangement under any law relating to bankruptcy, unless such petition is filed against Tenant and the same is dismissed within sixty (60) days;
(iii) The appointment of a trustee or receiver to take possession of substantially all of Tenant’s assets located in the Premises or of Tenant’s interest in this Lease.
(iv) The attachment, execution, or other judicial seizure of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease.
(g) Failure to abide by any Laws; or
(h) Failure to maintain the Premises in a clean, safe, and attractive condition, as described above; and, failure to promptly remedy any maintenance issues within sixty (60) days of notice from Landlord.
15.02 Remedies. In the event of any breach or default by Tenant, Landlord may, at Landlord's option and in Landlord’s sole discretion, exercise any and all rights available to a landlord under the laws of the State of California (including, but not limited to, those rights and remedies set forth in California Civil Code Sections 1951.2, 1951.4, and 1951.8), including, without limitation, the right to do any of the following:
(a) Landlord may elect to continue this Lease in effect by not terminating Tenant’s right to possession of the Premises, in which case Landlord shall be entitled to enforce all Landlord’s rights and remedies under this Lease, including the right to cure the breach underlying the Event of Default for the account and at the expense of Tenant and Landlord shall recover all costs, including costs of settlements, court costs and attorney’s fees, administrative overhead fees of twenty percent (20%) together with interest thereon at the rate of the prime rate of interest per annum as quoted by the Bank of America from the date of such payment or performance by Landlord, that Landlord may incur in the course of curing Tenant’s breach; and Landlord may also recover all Rent specified in this Lease as it becomes due under this Lease, and seek any other damages proximately caused by Tenant’s failure to perform the obligations under this Lease;
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(b) Landlord shall have the right to terminate this Lease and recover against Tenant:
(i) The worth at the time of award of the unpaid Rent which had been earned at the time of termination (plus applicable late charges and interest);
(ii) The worth at the time of award of the amount by which the unpaid Rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided (plus interest on the award at the maximum rate allowed by law);
(iii) The worth at the time of award of the amount by which the unpaid Rent for the balance of the Term after the time of award exceeds the amount of such rental loss for the same period that Tenant proves could be reasonably avoided, including, without limitation, interest on the excess at the rate set forth in Section 4.06 (Late Charge and Interest on Unpaid Rent); and
(iv) Any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform Tenant’s obligations under this Lease or which in the ordinary course of things would be likely to result therefrom.
(c) The “worth at the time of award” of the amounts referred to in the previous subparagraphs 15.02(b)(i), and (b)(ii) shall be computed by allowing interest at ten percent (10%) per annum. The worth at the time of award of the amount referred to in subparagraph 15.02(b)(iii) shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%). (d) Efforts Landlord may make to mitigate the damages caused by Tenant’s breach of this Lease shall not constitute a waiver of Landlord’s right to recover damages against Tenant, nor shall anything contained in this Lease affect Landlord’s right to indemnification against Tenant for any liability arising prior to the termination of this Lease (including, but not limited to, for personal injuries and/or property damage), and Tenant agrees to indemnify and hold Landlord (and Landlord’s officers, employees, representatives, and agents) harmless from any injuries and damages, including, but not limited to, all reasonable attorney fees and costs incurred by Landlord in defending any action brought against Landlord for any recovery, and in enforcing the terms and provisions of this indemnification against Tenant.
(e) In addition to all other rights and/or remedies of Landlord at law, in equity, and/or under this Lease, the Landlord has the remedy described in California Civil Code Section 1951.4, as such may be amended (Landlord may continue Lease in effect after Tenant’s breach and abandonment and recover Rent as it becomes due, if Tenant has right to sublet or assign, subject only to reasonable limitations). Accordingly, the breach of this Lease by Tenant, or an abandonment of the Premises by Tenant, shall not constitute a termination of this Lease, nor of Tenant’s right of possession under this Lease, unless and until Landlord elects to so terminate this Lease, and until that time Landlord may (at Landlord’s option) continue this Lease in full force and effect and shall have the right to recover Rent and all other payments to be made by Tenant under this Lease as they become due; provided, that until Landlord elects to terminate this Lease and Tenant’s right of possession under this Lease, Tenant shall have the right to sublet the Premises or to assign interests in this Lease, or both, subject only to the written consent of
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Landlord, which consent shall not be unreasonably withheld or delayed. The Parties intend that this Section 15.02(e) satisfies the requirements of California Civil Code §1951.4 and that the Landlord has the remedy set forth in California Civil Code Civil Code §1951.4. (f) In the event Landlord terminates this Lease pursuant to this Section
15.02, and Tenant has made an advance payment of Rent as defined in California Civil Code §1951.7, and Tenant has requested in writing that Landlord notify it of any initial reletting of the Premises, then and only then must Landlord notify Tenant pursuant to California Civil Code §1951.7(c) that the Premises have been relet.
(g) As security for the performance by Tenant of all duties and obligations under the Lease, Tenant assigns to Landlord the right, power, and authority, during the continuance of this Lease, to collect the Rents, issues, and profits of the Premises, reserving to Tenant the right, prior to any breach or default by Tenant under this Lease, to collect and retain the rents, (solely in the case of a sublease previously approved by Landlord) issues, and profits, from the operation of Tenant’s approved business use, as they become due and payable, and so long as payments to Landlord are also kept current. Upon any breach or default, Landlord shall have the right at any time afterward, without notice except as provided for previously, either in person, by agent, or by a receiver to be appointed by a court, enter and take possession of the Premises and collect Rents, issues, and profits, including, but not limited to, those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including, but not limited to, reasonable attorney fees, upon any secured indebtedness, and in an order as Landlord may determine.
(h) In the event that Landlord should take any act to maintain or preserve the Premises on Tenant’s behalf, or seek the appointment of a receiver to protect Landlord’s interests under this Lease, such acts shall not constitute a termination of Tenant’s right of possession unless Tenant receives written notice from Landlord regarding Landlord’s election to terminate. (i) Tenant acknowledges that Landlord has executed this Lease in reliance on the financial information furnished by Tenant to Landlord as to Tenant’s financial condition. If it is determined at any time subsequent to the date of this Lease that any of the financial information furnished by Tenant and relied upon by Landlord in executing this Lease is substantially untrue or inaccurate, Tenant shall be deemed to be in default under this Lease, which default shall not be subject to cure, and which shall entitle Landlord to exercise all rights and remedies reserved to Landlord under this Lease or otherwise available to Landlord at law. (j) Landlord may remove all Tenant’s property from the Premises, and such property may be stored by Landlord in a public warehouse or elsewhere at the sole cost and expense for the account of Tenant. If Landlord does not elect to store any or all of Tenant’s property left in the Premises, Landlord may consider such property to be abandoned by Tenant, and Landlord may thereupon dispose of such property in any manner deemed appropriate by Landlord. Any proceeds realized by Landlord on the disposal of any such property shall be applied first to offset all expenses of storage and sale, then credited against Tenant’s outstanding obligations to Landlord under this Lease, and any balance remaining after satisfaction of all obligations of Tenant under this Lease shall be delivered to Tenant.
15.03 Covenants and Conditions. All covenants made by Tenant hereby are conditions of this Lease; therefore, in the event of any default by Tenant in fulfilling any of the same, Landlord may at any time thereafter at its option declare a forfeiture of this Lease. Landlord shall not be obligated to perform any covenant made by Landlord under this Lease which accrues after the date of any default by Tenant hereunder.
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15.04 Landlord’s Right to Perform. All terms, covenants and conditions of this Lease to be performed or observed by Tenant shall be performed or observed by Tenant at Tenant’s sole cost and expense, and without any reduction of Rent. If Tenant shall fail to pay any sum of money, or other Rent, required to be paid by it hereunder, or shall fail to perform any other term, covenant, or condition hereunder on its part to be performed, and such failure shall continue for ten (10) days after written notice thereof by Landlord, Landlord, without waiving or releasing Tenant from any obligation of Tenant hereunder, may, but shall not be obligated to, make any such payment or perform any such other term, covenant or condition on Tenant’s part to be performed. All sums so paid by Landlord and all necessary costs of such performance by Landlord plus an administrative overhead fee of twenty percent (20%), together with interest thereon at the rate of the prime rate of interest per annum as quoted by the Bank of America from the date of such payment or performance by Landlord, shall be paid (and Tenant covenants to make such payment) to Landlord on Landlord’s demand, and Landlord shall have (in addition to any other right or remedy of Landlord) the same rights and remedies in the event of nonpayment by Tenant as in the case of failure by Tenant in the payment of any Rent hereunder.
ARTICLE 16 - DAMAGE OR DESTRUCTION
16.01 Repair of Damage by Landlord. Tenant agrees to notify Landlord in writing promptly of any damage to the Premises resulting from fire, earthquake, or any other identifiable event of a sudden, unexpected, or unusual nature (“Casualty”). If the Premises are damaged by a Casualty or any adjacent or surrounding common areas providing access to the Premises are damaged by a Casualty, such as but not limited to a Wharf closure as provided in Section 2.06 (Wharf Closure), and such that the Premises are untenantable, or Tenant does not have reasonable access to the Premises, provided that the Casualty was not caused by the negligence, gross negligence or willful misconduct of any Tenant’s employee, contractor, invitee, guest, licensee, contractor or subtenant (“Tenant Party”), and if neither Landlord nor Tenant has elected to terminate this Lease under Section 16.03 (Landlord’s Option to Terminate or Repair) or Section
16.04 (Tenant’s Option to Terminate), Landlord will promptly and diligently restore such common areas, the Premises, and the Tenant Improvements originally constructed by Landlord to substantially the same condition as existed before the Casualty, or to a condition that satisfies required buildings codes and other laws, or to a condition that is desirable by Landlord in its sole discretion. In making these modifications, Landlord will not materially impair Tenant’s access to the Premises. Landlord’s obligation to restore is subject to reasonable delays for insurance adjustment and other matters beyond Landlord’s reasonable control and subject to the other clauses of this Article 16. If Tenant requests that Landlord modify the Tenant Improvements in connection with the rebuilding, Landlord may condition its consent to those modifications on:
(a) Tenant’s payment to Landlord before construction is begun of any sums in excess of the amount of insurance proceeds received by Landlord that are needed to complete the Tenant Improvements; and
(b) Confirmation by Landlord’s architect or contractor that the modifications will not increase the scope of work or the time necessary to complete the Tenant Improvements.
16.02 Repair Period Notice. Landlord will provide written notice to Tenant indicating the anticipated period for repairing the Casualty (“Repair Period Notice”), within the later of: (a) sixty (60) days after the date on which Landlord determines the full extent of the damage caused by the Casualty, or (b) thirty (30) days after Landlord has determined the extent of the insurance proceeds available to effectuate repairs. The Repair Period Notice will also state, if applicable, Landlord’s election either to repair or to terminate the Lease under Section 16.03 (Landlord’s Option to Terminate or Repair).
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16.03 Landlord’s Option to Terminate or Repair. Landlord may elect either to terminate this Lease or to effectuate repairs if:
(a) The Repair Period Notice estimates that the period for repairing the Casualty exceeds one (1) year from the date of the commencement of the repair; (b) The estimated repair cost exceeds the available insurance proceeds, if any, for such repair (not including the deductible), plus any amount that Tenant is obligated to pay for, or elects to pay for such repair;
(c) The estimated repair cost of the Premises, even though covered by insurance, exceeds fifty percent (50%) of the full replacement cost of the Premises; or (d) The Premises cannot be restored except in a substantially different structural or architectural form than existed before the Casualty.
Landlord’s election will be stated in the Repair Period Notice.
16.04 Tenant’s Option to Terminate. If all or a substantial part of the Premises are rendered untenantable or inaccessible by damage to all or any part of the Premises from a Casualty, and Landlord does not elect to terminate as provided above, then Tenant may elect to terminate this Lease if the Repair Period Notice provided by Landlord indicates that the anticipated period for repairing the Casualty exceeds one (1) year from the date of commencement of the repairs. Tenant may elect to terminate this Lease by providing written notice (“Tenant’s Termination Notice”) to Landlord within thirty (30) days after receiving the Repair Period Notice from Landlord. If Tenant does not elect to terminate within this thirty-day (30-day) period, Tenant will be considered to have waived the option to terminate. Tenant will not have an option to terminate if Tenant is in default under this Lease and the Casualty was caused in part or in whole by the fault of any Tenant Party, including negligence, gross negligence or willful misconduct of any Tenant Party.
16.05 Rent Abatement Due to Casualty. Landlord and Tenant agree that, if the Casualty was not the result of the negligence, gross negligence, or willful misconduct of any Tenant Party, and provided that Tenant is not then in default under this Lease, Tenant will be provided with a proportionate abatement of Rent based on the Rentable Square Footage of the Premises rendered unusable (due to physical damage to the Premises or the unavailability of access to the Premises) and not used by Tenant. That proportional abatement, if any, will be provided during the period beginning on the later of: (a) the date of the Casualty, or (b) the date on which Tenant ceases to occupy the Premises and ending on the date of substantial completion of Landlord’s restoration obligations as provided in this Article 16. Subject to Section 16.04 (Tenant’s Option to Terminate), the Rent abatement provided in this Section16.05 is Tenant’s sole remedy due to the occurrence of the Casualty. Landlord will not be liable to Tenant or any other person or entity for any direct, indirect, or consequential damage (including but not limited to lost profits of Tenant or loss of or interference with Tenant’s business), whether or not caused by the negligence of Landlord or Landlord’s employees, contractors, licensees, or invitees, due to, arising out of, or as a result of the Casualty (including but not limited to the termination of the Lease in connection with the Casualty). Tenant agrees to maintain business interruption insurance in amounts and with coverage no less than that required by Exhibit G (Insurance Requirements) to provide coverage regarding such matters.
16.06 Damage Near End of Term. Notwithstanding any other provision of this Article 16, if the Premises is destroyed or damaged by a Casualty during the last eighteen (18) months of the Lease Term, Landlord has the option to terminate this Lease by giving written notice to Tenant consistent with the Repair Period Notice.
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16.07 Effective Date of Termination and Rent Apportionment. If Landlord or Tenant elects to terminate this Lease under this Article 16 in connection with a Casualty, the termination will be effective thirty (30) days after delivery of notice of such election. Tenant must pay Rent, properly apportioned up to the date of the Casualty or Tenant’s cessation of revenue generating business activities from the Premises, whichever is later. After the effective date of the termination, Landlord and Tenant will be discharged of all future obligations under this Lease, except for those provisions that, by their terms, survive the expiration or earlier termination of this Lease.
16.08 Waiver of Statutory Provisions. The provisions of this Lease, including those in this Article 16, constitute an express agreement between Landlord and Tenant that applies in the event of any Casualty to the Premises. Landlord and Tenant, therefore, each fully waives the provisions of any statute or regulation, including California Civil Code §§1932(2) and 1933(4), or any successor statute, relating to any rights or obligations concerning a Casualty.
ARTICLE 17 - ESTOPPEL CERTIFICATES; ATTORNMENT
17.01 Tenant to Furnish Certificate. Tenant shall, within ten (10) business days of written notice from Landlord, execute and deliver to Landlord a written statement certifying that this Lease is unmodified and in full force and effect or, if modified, stating the nature of such modification. Tenant’s statement shall include other details requested by Landlord, such as the date to which Rent and other charges are paid and Tenant’s acknowledgement concerning any uncured defaults in Landlord’s obligations under this Lease and the nature of such defaults if they are claimed. Any such statement may be relied upon conclusively by any prospective purchaser or encumbrancer of the Premises. Tenant’s failure to deliver such statements within such time shall be conclusive upon Tenant that this Lease is in full force and effect, except as and to the extent any modification has been represented by Landlord, and that there are no uncured defaults in Landlord’s performance and that not more than one (1) quarter’s Minimum Base Rent has been paid in advance.
17.02 Attornment. If any proceedings are brought for foreclosure, or if the power of sale is exercised under any mortgage or deed of trust made by Landlord covering the Premises, Tenant shall attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as Landlord under this Lease.
17.03 Additional Documents. Tenant, upon request of any party in interest, shall execute promptly such instruments and certificates necessary to carry out the intent of the foregoing Sections as shall be requested by Landlord.
ARTICLE 18 – OTHER MUNICIPAL RULES AND REGULATIONS
18.01 Rules and Regulations. Tenant acknowledges and understands that the Premises are located on property of Landlord, primarily devoted to commerce and navigation, namely the Municipal Wharf, which is under exclusive control of Landlord. By executing this Lease, Tenant agrees to abide by all Laws promulgated by the City Council of the City of Santa Cruz now existing or hereafter made for the government, management, maintenance, operation and/or improvement of the Wharf, including, without limitation, such directives as to the usage of the Wharf as may be determined or promulgated by the officials, officers or representatives of Landlord in their official or departmental capacity. Tenant further agrees that such Laws or conditions as may be imposed by Landlord through its City Council, administrative officers, department heads and/or duly authorized representatives, shall be subject to immediate compliance by Tenant without question or qualification as to the validity or reasonableness thereof.
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18.02 Collective Wellbeing and Reputation. Tenant acknowledges and understands that maintaining the positive reputation of all businesses on the Municipal Wharf is essential to the success of the entire Wharf as a tourist destination and center of commerce. By executing this Lease, Tenant acknowledges their own duty to maintain a position reputation and favorable customer reviews during the Term of the Lease. Tenant shall endeavor to maintain favorable customer reviews across popular online review platforms, such as, but not exclusively, Yelp, Tripadvisor, Google, Zagat, Open Table, etc. For the purposes of this Section, favorable reviews shall be considered as an average of three and one half (3.5) stars or above, or other equivalent rating, across at least two (2) platforms with a minimum of fifty (50) reviews each. In the event that Tenant’s ratings drop below this threshold, Tenant shall develop and implement an action plan that identified and address issues that consistently and negatively impact reviews within forty-five (45) days of Landlord’s request. Landlord reserves the right to consider reviews in its decision to approve or deny any Extension Request, and shall provide Tenant a minimum of thirty days (30) days to contest any such decision on the premise of reviews.
18.03 Collective Responsibility for Wharf Safety and Experience. Tenant acknowledges that maintaining a safe and welcoming environment on the Wharf promotes the success of Tenant’s business and those of other Wharf tenants, as well as the sustainability of the Wharf itself. Tenant accepts its responsibility to comply with all Laws and permit conditions regarding the responsible sale of alcohol, including control of service, portion control, and the responsibilities of third-party liability, which are essential to protecting Tenant’s business, other tenants, the City, and visitors to the Wharf, if applicable.
In the event that Tenant is found to be in violation of alcohol laws or permit conditions, the City may require the Tenant to pay a fine of $1,000 per occurrence. This fine is cumulative and in addition to any other remedies the City or other public agency may take related to alcohol permit compliance.
18.04 Tenant Meeting Attendance. Tenant agrees to attend no fewer than fifty percent (50%) of Tenant coordination meetings held between the Landlord and Wharf tenants. Quarterly meetings are currently held between City staff and Wharf tenants to discuss issues and policies related to Wharf businesses, operations, and tenants. Tenant may designate an agent or employee to attend such meetings on behalf of Tenant.
ARTICLE 19 – CONDEMNATION
19.01 Condemnation. If the Premises or any portion thereof are taken under the power of eminent domain or sold under the threat of the exercise of said power (collectively "Condemnation"), this Lease shall terminate as to the part taken as of the date the condemning authority takes title or possession, whichever first occurs. If more than twenty-five percent (25%) of that portion of the Premises is taken by Condemnation, Tenant may, at Tenant’s option, to be exercised in writing within ten (10) days after Landlord shall have given Tenant written notice of such taking (or in the absence of such notice, within ten (10) days after the condemning authority shall have taken possession) terminate this Lease as of the date the condemning authority takes such possession. If Tenant does not terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion of the Premises remaining, except that the Minimum Base Rent shall be reduced in proportion to the reduction in utility of the Premises caused by such Condemnation. Except as provided herein, Landlord shall be entitled to receive all compensation and anything of value awarded, paid, or received in settlement or otherwise related to any Condemnation (“Award”) and Tenant irrevocably assigns and transfers to Landlord all rights to and interests in the Award, including, without limitation, any amount attributable to any excess of the market value of the Premises for the remainder of the Term over the present value
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as of the termination date of the Rent payable for the remainder of the Term (commonly referred to as the “bonus value” of the Lease). Notwithstanding the foregoing, Tenant shall have the right to make a separate claim in the Condemnation proceeding, as long as the Award payable to Landlord is not reduced thereby, for: (a) the taking of the unamortized or undepreciated value of any leasehold improvements owned by Tenant that Landlord has the right to remove at the end of the Term and that Tenant elects not to remove; (b) reasonable removal and relocation costs for any leasehold improvements that Tenant has the right to remove and elects to remove (if condemner approves of the removal); and (c) relocation costs under California Government Code section 7262, the claim for which Tenant may pursue by separate action independent of this Lease.
ARTICLE 20 - MISCELLANEOUS
20.01 Attorneys’ Fees. In the event of any legal action, arbitration or proceeding between the Parties, the prevailing Party shall be entitled to reasonable attorneys’ fees and expenses as awarded by the court, arbitrator or other person deciding the legal action, arbitration or proceeding as a part of the judgment or award resulting therefrom.
20.02 Sale or Lease of the Premises by Landlord. Notwithstanding any provisions of this Lease, Landlord may assign in whole or in part Landlord’s interest in this Lease and may sell all or part of Landlord’s leasehold interest in the real estate of which the Premises are a part. In the event of any sale or exchange of the Premises by Landlord and assignment by Landlord of this Lease, Landlord shall be entirely freed and relieved of all liability under all covenants and obligations contained in or derived from this Lease or arising out of any act, occurrence or omission relating to the Premises which occurs after the consummation of such sale, exchange or assignment.
20.03 Liability to Successors. The covenants and conditions herein contained shall, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators and assigns of the Parties hereto who shall be jointly and severally liable for the covenants contained herein. This Lease shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors, and assigns of the Parties hereto, but nothing in this Section shall be construed as a consent by Landlord to any assignment of this Lease or any interest in this Lease by Tenant except as provided in Article 14 (Assignment and Subletting) of this Lease.
20.04 Interpretation. Whenever the singular number is used in this Lease, the same shall include the plural. Reference to any gender shall include the masculine, feminine and neuter genders, and the word “person” shall include corporation, firm or association, when required by the content.
The headings or titles to the paragraphs of this Lease are for convenience only and do not in any way define, limit or construe the contents of such paragraphs.
This instrument contains all of the agreements and conditions made between the Parties with respect to the hiring of the Premises and may not be modified orally or in any manner except by a written instrument signed by all the Parties to this Lease.
The laws of the State of California shall govern the validity, performance and enforcement of this Lease. Any action or proceeding arising out of or relating to the Lease shall be brought in a state or federal court situated in the County of Santa Cruz, State of California. If any provision of this Agreement is determined to be void by any court of competent jurisdiction, such determination shall not affect any other provision of this Lease and such other provisions shall remain in full force and effect. If any provision of this Lease is capable of two constructions, one
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which would render the provision void and one which would render the provision valid, the provision shall be interpreted in the manner which would render it valid.
Except as may otherwise be expressly stated, each payment required to be made by Tenant shall be in addition to and not in substitution for other payments to be made by Tenant.
20.05 Time. Time is of the essence in this Lease.
20.06 Force Majeure. Any prevention, delay or stoppage due to strikes, lockouts, labor disputes, abnormal adverse weather conditions, acts of God, inability to obtain labor or materials or reasonable substitutes therefore, governmental restrictions, regulations or controls, enemy or hostile government action, civil commotion, fire or other casualty, and other causes beyond the reasonable control of and not caused by the fault or negligence of the Party obligated to perform, shall excuse the performance by such Party for a period equal to that resulting from such prevention, delay or stoppage. However, nothing contained in this Section shall excuse the prompt payment of Rent by Tenant as required by this Lease. Tenant's obligations to make payment for Rent and other charges pursuant to the terms of this Lease shall be excused or reduced only as elsewhere expressly and specifically provided in this Lease.
20.07 Notices. Any notice to be given by one Party to the other under this Lease or any options to be exercised under this Lease, shall be in writing. To the extent permitted by law, such notices shall be delivered via email to the addresses listed in Section 1.11 (Tenant’s Address for Notices) and Section 1.12 (Landlord’s Address for Notices).
If email is not permitted as sufficient written notice pursuant to California written law, the notice shall be delivered by: 1) personal delivery in writing to the address set forth in Section
1.11 (Tenant’s Address for Notices) and Section 1.12 (Landlord’s Address for Notices), in which case notice is effective upon delivery; 2) overnight courier (i.e. Federal Express) to the address set forth in Section 1.11 (Tenant’s Address for Notices) and Section 1.12 (Landlord’s Address for Notices) with postage and charges prepaid and return receipt requested, in which case notice is effective when delivered; 3) priority U.S. Mail to the address set forth in Section 1.11 (Tenant’s Address for Notices) and Section 1.12 (Landlord’s Address for Notices), in which case notice shall be deemed delivered on the second business day after the deposit thereof with the United States Postal Service; or 4) as otherwise required by law. Either Party may change its notification contact information set forth in Section 1.11 (Tenant’s Address for Notices), Section 1.12 (Landlord’s Address for Notices) and Section 1.13 (Landlord’s Address for Payment of Rent) by providing written notice of any such change in accordance with this paragraph.
Mailed notices shall be sent by United States Postal Service, certified or registered mail, postage prepaid, and shall be deemed to have been given on the date of posting in the United States Postal Service.
Either Party may, by proper written notice pursuant to this Lease, at any time designate a different address to which notices shall be sent.
20.08 Relationship of Parties. The relationship of the Parties hereto is that of Landlord and Tenant. Nothing in this Lease shall be construed to render Landlord in any way or for any purpose a partner, joint venturer, or associate in any relationship with Tenant other than that of Landlord and Tenant, nor shall this Lease be construed to authorize either to act as agent for the other.
20.09 Advertising and Promotion Fund. Landlord, upon acquiring approval from a majority of Wharf tenants and licensees, may establish a Wharf Marketing Association (“Association”) to market, advertise and promote the Municipal Wharf and its various businesses.
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By executing this Lease, Tenant agrees to join the Association, if any, and to contribute funds to a Wharf Marketing and Promotion Fund (“Fund”) for the purpose of developing coordinated marketing plans which may include without limitation, media advertising, community-relations programs, special events and promotions of the Wharf and its businesses.
The Association members shall select a board of directors or other such advisory group as a majority of the members of the Association shall select which shall decide and approve all expenditures from the Fund. The activities of the Association shall be financed by the proceeds of the Fund and shall be based upon an annual budget based on an appropriate fiscal year.
If the Landlord elects to establish the Association, Landlord may impose a marketing fee on all members of the Association to implement the Fund. The marketing fee shall equal one-half percent (1/2%) of Gross Annual Sales as defined in this Lease. No such charge shall be imposed unless all members of the Association are similarly charged. This fee shall be in addition to any other Rent, payment or charge required under this Lease and shall be paid in quarterly installments to the Landlord for remittance to the Association.
If a Business Improvement Area or Assessment District (as defined in the Santa Cruz Municipal Code) is established in the future which includes the Wharf and its tenants, the collection of marketing fees described above shall terminate if the assessments collected through said District equal or exceed the amounts collected by the Landlord for deposit into the Fund during the prior fiscal year.
20.10 Waiver. The waiver by Landlord of any breach of any provision, term, covenant or condition of this Lease shall not constitute a continuing waiver or a waiver of any subsequent breach by Tenant of either the same or a different provision, term, covenant, or condition of this Lease. The subsequent acceptance of Rent hereunder by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of any provision, term, covenant or condition of this Lease, other than the failure of Tenant to pay the particular rental so accepted, regardless of Landlord’s knowledge of such preceding breach at the time of acceptance of such rent. No provision, covenant, term or condition of this Lease shall be deemed to have been waived by Landlord, unless such waiver is in writing by Landlord.
20.11 Accord and Satisfaction. No payment by Tenant or receipt by Landlord of a lesser amount than the Rent herein stipulated shall be deemed to be other than on account of the earliest stipulated Rent, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as Rent be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such Rent or pursue any other remedy in this Lease provided.
20.12 Authority. If Tenant is a corporation or partnership, each individual executing this Lease on behalf of such entity represents or warrants that he or she is duly authorized to execute and deliver this Lease on behalf of such entity and that such entity shall be bound by all the terms and provisions hereof.
20.13 Joint and Several Liability. If more than one individual or entity comprises Tenant, the obligations and liabilities imposed on each individual or entity that comprises Tenant under this Lease will be joint and several.
20.14 Broker’s Commission. Each Party represents and warrants that there are no claims for brokerage commissions or finder’s fees arising from that Party’s activities in connection with this Lease, and each Party agrees to indemnify and hold the other Party harmless from all liability arising from any such claim.
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20.15 Guaranty of Lease. This Lease shall not be effective until the Guarantor(s) named in Section 1.10 (Guaranty of Lease) has executed a written Guaranty in the form attached hereto as Exhibit C (Guaranty of Lease). If Section 1.11 (Guaranty of Lease) are blank or marked “Intentionally Omitted” then Tenant shall be solely responsible for all payments and performance required by this Lease.
20.16 Recycling Activities. Tenant agrees to participate, to the greatest extent possible, in all existing or future recycling activities initiated or arranged by Landlord with regard to the Wharf.
20.17 Assessment District Establishment. Tenant agrees not to unreasonably protest the establishment of an assessment district for purposes of parking, promotion, or maintenance.
20.18 MacBride Principles and the Peace Charter. The City Council of the City of Santa Cruz approved Resolution No. NS-19,378 on the 24th day of July 1990, endorsing the MacBride Principles and Peace Charter and encourages all companies doing business in Northern Ireland to abide by the MacBride Principles and Peace Charter.
20.19 Partial Invalidity; Severability. If any provision of this Lease is held by a court of competent jurisdiction to be invalid, void, or unenforceable, such determination shall not affect any other provision of this Lease and such remaining provisions of this Lease shall remain in full force and effect unimpaired by the holding.
20.20 Approval by City Council/City Attorney. This Agreement, and any amendment of its terms, except as under such authority delegated to the City Manager, or designee, is subject to the approval of the City Council of the City of Santa Cruz and the City Attorney, and shall not bind Landlord until such time as their approval and consent has been received in writing.
20.21 Subordination. This Lease is and shall be subordinate to any encumbrance now of record or recorded after the date of this Lease affecting the building, other improvements, and land of which the premises are a part.
Such subordination is effective without any further act of Tenant. Tenant shall from time to time, on request from Landlord, execute and deliver any documents or instruments that may be required by a lender to effectuate any subordination. If Tenant fails to execute and deliver any such documents or instruments, Tenant irrevocably constitutes and appoints Landlord as Tenant’s special attorney in fact to execute and deliver any such documents or instruments.
20.22 Permits and Approvals. Tenant is responsible for obtaining all applicable and required government permits or approvals. Approval by Landlord of any action requiring approval does not constitute approval by the City of Santa Cruz of any required permits or applications, and in no way limits the discretion of the City of Santa Cruz in the permit, regulatory, and approval process. Landlord and Tenant will render to each other reasonable assistance in obtaining necessary City of Santa Cruz and other governmental permits or approvals. Any consent or approval of the City of Santa Cruz for any permit, application, or regulatory matter does not constitute consent or approval by the Landlord under the terms of this Lease.
20.23 Prevailing Wage. It shall be the obligation of Tenant and/or any contractor or subcontractor under Tenant to comply with and conform to all State of California labor laws, rules and regulations and the Parties agree that the Landlord shall not be liable for any violation thereof.
To the extent that the construction of any Tenant Improvements or any other work performed pursuant to this Lease may be considered a “public work” (construction, alteration, demolition, or repair work) under and pursuant to the California Labor Code (see California Labor Code Sections
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1720 et seq. and Title 8, California Code of Regulations, Chapter 8, Subchapter 3, commencing with Section 16000) and subject to labor compliance monitoring and enforcement by the Department of Industrial Relations, Tenant (and its contractor(s) and subcontractor(s) performing the work) shall conform to any and all prevailing wage requirements applicable to the work on the Premises under this Lease. Tenant (and its contractors and subcontractors) shall adhere to the prevailing wage determinations made by the Director of Industrial Relations pursuant to California Labor Code Part 7, Chapter 1, Article 2, applicable to the Tenant Improvements and associated work. All workers employed in the execution of a public works contract (as such term is defined California Labor Code Section 1720 et seq. and Section 1782(d)(1)) must be paid not less than the specified prevailing wage rates for the type of work performed. (Reference: California Labor Code Sections 1720, 1774 and 1782). Tenant shall ensure that its contractors and subcontractors also comply with and adhere to this prevailing wage provision. Tenant shall be responsible for any failure of Tenant’s contractors and/or subcontractors to comply with applicable prevailing wage and public works laws. If the Tenant is unsure whether the subject work is a “public work” as defined in the California Labor Code, it may wish to seek a timely determination from the California Department of Industrial Relations (“DIR”) or an appropriate court. Only the DIR and courts of competent jurisdiction have jurisdiction to issue legally binding determinations that a particular project is or is not a public work.
To the extent applicable to this Lease, Tenant agrees to be bound by the state prevailing wage requirements, including, but not limited to, the following:
a. If a worker is paid less than the applicable prevailing wage rate owed for a calendar day (or any portion thereof), Tenant shall pay the worker the difference between the prevailing wage rate and the amount actually paid for each calendar day (or portion thereof) for which the worker(s) was paid less than the prevailing wage rate, as specified in California Labor Code section 1775;
b. Tenant shall maintain and make available payroll and worker records in accordance with California Labor Code sections 1776 and 1812; c. If Tenant employs (and/or is legally required to employ) apprentices in performing any work and/or services on the Premises under this Lease, Tenant shall ensure compliance with California Labor Code section 1777.5;
d. Tenant is aware of the limitations imposed on overtime work by California Labor Code sections 1810 et seq. and shall be responsible for any penalties levied in accordance with California Labor Code section 1813 for failing to pay required overtime wages; e. Tenant shall post a copy of the applicable wage rates at each jobsite at a location readily available to its workers.
f. Any failure of Tenant and/or its subconsultant to comply with the above requirements relating to a public work project shall constitute a breach of this Lease that excuses the Landlord’s performance of this Lease at the Landlord’s sole and absolute option and shall be at the sole risk of Tenant. Tenant on behalf of itself and any subconsultant, agree to indemnify, defend and hold harmless the Landlord and its officials, officers, employees, and agents from and against any and all claims, liabilities, losses, costs, expenses, attorney’s fees, damages, expenses, fines, financial consequences, interest, and penalties, of any kind or nature, arising from or relating to any failure (or alleged failure) of Tenant and any subconsultant to pay prevailing wages or to otherwise comply with the requirements of prevailing wage law relating to a public work.
g. Tenant acknowledges that it and/or any subconsultant may not engage in the performance of any contract for public work unless currently registered with the DIR and qualified to perform public work pursuant to California Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under California Labor Code section 1771.1(a)].
20.24 Limitation of Liability; Waiver of Consequential Damages; No Liability for Damages.
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(a) The obligations of Landlord under this Lease shall not constitute personal obligations of Landlord or its City Council members, officials, directors, officers, employees, representatives, agents, or volunteers, and Tenant shall not seek recourse against Landlord’s City Council members, officials, directors, officers, employees, representatives, agents, or volunteers, or any of their personal assets for such satisfaction. (b) In no event shall Landlord (or its City Council members, officials, officers, directors, employees, agents, representatives, or volunteers) be liable to Tenant for penalties or liquidated damages, or for special, indirect, consequential, or incidental losses or damages including, but not limited to, lost profits, loss or interruption of business, lost or damaged data, loss of use of facility or equipment, or the failure or increased expense of operations, regardless of whether any such losses or damages are characterized as arising from breach of contract, breach of warranty, tort, strict liability, or otherwise, even if Landlord is advised of the possibility of such losses or damages, or if such losses or damages are foreseeable. (c) Tenant acknowledges that Landlord would not enter into this Lease if it were to be liable for damages (including, but not limited to, actual damages, economic damages, consequential damages, lost profits, loss of rents or other revenues, loss of business opportunity, loss of goodwill or loss of use) under, or relating to, this Lease or any of the matters referred to in this Lease. Accordingly, Tenant covenants and agrees on behalf of itself and its successors and assigns, not to sue Landlord (either in its capacity as landlord in this Lease or in its capacity as the City of Santa Cruz) or Landlord’s City Council members, officials, officers, directors, employees, agents, representatives, or volunteers for damages (including, but not limited to, actual damages, economic damages, consequential damages, lost profits, loss of rents or other revenues, loss of business opportunity, loss of goodwill or loss of use) or monetary relief for any breach of this Lease by Landlord or for any dispute, controversy, or issue between Landlord and Tenant arising out of or connected with this Lease or any of the matters referred to in this Lease (including, without limitation, any and all Wharf closures, Landlord obligations, and/or any and all plans, permits, licenses, regulatory approvals, California Environmental Quality Act (“CEQA”) documents, Transfers and/or any future amendments or enactments thereto), the Parties agreeing that declaratory relief, injunctive relief, mandate and specific performance shall be Tenant’s sole and exclusive judicial remedies.
20.25 Offer. Preparation of this Lease by either Party or their agent and submission of same to the other Party shall not be deemed an offer to lease to the other Party. This Lease is not intended to be binding until executed and delivered by all Parties hereto.
20.26 Compliance with City Departmental Rules and Regulations. Tenant agrees to comply with all rules and regulations imposed by the City's Fire, Police, Planning, Water, Public Works, Building, Finance, Economic Development and Housing and Sanitations departments and divisions, and any other departments and divisions in existence now or at any time in the future.
20.27 Retention of Discretion. By its execution of this Lease, Landlord is not committing itself or agreeing to undertake any activity requiring the subsequent exercise of discretion by the City of Santa Cruz, or any department thereof, including but not limited to the approval of any Tenant Improvements, any CEQA documents, any development proposal or land use regulation governing the Premises, or any other approval. Tenant understands and agrees that Landlord in its capacity as the City of Santa Cruz reserves the right to exercise its discretion as to all matters which it is, by law, entitled or required to exercise its discretion, including, but not limited to, the consideration of Tenant Improvements, any CEQA documents, a final development or project, any and all plans, permits, licenses or regulatory approvals, and/or any other acts or activities requiring the subsequent independent exercise of discretion by the City of Santa Cruz or any agency or department thereof. Nothing in this Lease shall obligate the Landlord in its capacity as
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the City of Santa Cruz to exercise its discretion in any particular manner, and notwithstanding any provision of this Lease to the contrary any exercise of discretion required by law or permitted by this Lease shall not be deemed to constitute a breach of Landlord’s duties under this Lease.
20.28 Cumulative Remedies. The various rights, options, elections, powers and remedies contained in this Lease shall be construed as cumulative, and no one of them shall be exclusive of any of the others or of any other legal or equitable remedy which either party might otherwise have in the event of a breach or default in the terms of this Lease. The exercise of one right or remedy by such Party shall not impair its right to any other right or remedy until all obligations imposed on the other party have been fully performed.
20.29 Counterparts. This Lease may be executed in several counterparts and all such executed counterparts together shall constitute one agreement binding on all of the Parties. A scanned, electronic, facsimile or other copy of a Party’s signature shall be accepted and valid as an original.
20.30 Entire Agreement. This Lease and the attached Exhibits contain all of the agreements and conditions made between the Parties with respect to the hiring and leasing of the Premises and the subject matter of this Lease and supersede all prior agreements or understandings between the Parties related thereto. Any agreements or representations respecting the Premises, their leasing to Tenant by Landlord, or any other matter discussed in this Lease not expressly set forth in this instrument are null and void. This Lease may not be modified or amended orally or in any manner except as provided in Section 20.32 (Amendments to Lease) below.
20.31 Construction of Agreement. Each Party acknowledges that it has reviewed this Lease and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting Party shall not apply in the interpretation or construction of this Lease.
20.32 Amendments to Lease. This Lease may not be amended in any respect except by way of a written instrument which expressly references and identifies this particular Lease, which expressly states that its purpose is to amend this particular Lease, and which is duly executed by the Parties.
20.33 Warranty of Authority. The signatories to this Lease warrant and represent that each is authorized to execute this Lease and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this Lease.
SIGNATURE PAGE FOLLOWS
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The Parties have executed this Lease as of the Effective Date.
LANDLORD
City of Santa Cruz
A California municipal corporation
By: ________________________________ Date: _____________________ Matt Huffaker
Its: City Manager
TENANT
By: _____________________________ Date: _____________________ Charles Maier
By: _____________________________ Date: _____________________
APPROVED AS TO FORM:
_____________________________ Date:
Stephanie Duck
Office of the City Attorney
Signature Requirements for Business Entity:
a. Corporation – 2 officer signatures required (one from each group, unless person signing holds officer positions in both Group 1 and 2):
Group 1: Chief Executive Officer, Chairman of the Board, President, or Vice President Group 2: Secretary, Assistant Secretary, Chief Financial Officer, Treasurer, Assistant Treasurer b. Partnership - Signature of General Partner, or signature of partner who is authorized to execute documents per the Certificate of Partnership. If authorized partner is a corporation, follow Corporation signature requirement. c. LLC- For a member-managed LLC, signature of any member. For a manager-managed LLC, signature of the manager. If the LLC has corporate officer designations, follow Corporation signature requirement.
February 19, 2026
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Exhibit A
Location of Premises on Santa Cruz Municipal Wharf
37 Municipal Wharf
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Exhibit B
Floor Plan of Premises
The floor plan below does not include the kitchen area. The kitchen area floor area is unavailable.
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Exhibit C
Guaranty of Lease
1. In consideration of the execution of the attached Lease dated ______________, by and between City of Santa Cruz, a municipal corporation (“Landlord”) and Santa Cruz Diner Inc., a California corporation, (“Tenant”) for the premises known as 37 Municipal Wharf in Santa Cruz, California, the undersigned Guarantor(s) hereby unconditionally and irrevocably guarantee(s) to Landlord, its successors and assigns, the prompt payment by Tenant of the rent and all other sums required under the Lease, and the faithful performance by Tenant of all the terms, covenants, and conditions contained in the Lease. The lease is incorporated herein by reference.
2. This Guaranty shall not be affected by any deviation from or alteration of the terms, covenants, or conditions of the Lease or by any permitted assignment or subletting of all or any part of the interest of Tenant in the Lease. This Guaranty shall not be released, extinguished, modified, or in any way affected by failure on the part of Landlord to enforce any or all of its rights or remedies whether pursuant to the terms of the Lease or at law or in equity.
3. This Guaranty is a continuing one and shall terminate only on payment by Tenant of all the rent and other sums required under the Lease and on performance by Tenant of all duties and obligations contained in the Lease.
4. The undersigned waives notice: (a) of any default by Tenant (i) in payment by Tenant of any of the rent or other sums hereby guaranteed and (ii) in performance by Tenant of the terms, covenants, and conditions of the Lease, and (b) of acceptance by Landlord of this Guaranty. Landlord agrees to give written notice to the undersigned prior to commencing legal action against the Tenant or against the undersigned.
5. The undersigned consents that Landlord may from time to time extend the time for performance or otherwise modify, alter, or change the Lease and any or all of its provisions and may extend the time for payment of the rent and all other sums hereby guaranteed and may receive and accept notes, checks, and other instruments for the payment of money made by Tenant and extensions and renewals thereon without in any way releasing or discharging the undersigned from its obligations under this Guaranty. Notice of presentment of any such note or notes and/or notice of default in the payment thereof at maturity and/or protest or notice of protest thereof is expressly waived.
6. The undersigned further consents and agrees that Landlord shall not be required, in order to enforce this Guaranty, to first institute suit or exhaust its legal remedies against Tenant. This Guaranty of Lease shall not be extinguished as a result of any bankruptcy proceeding.
7. This Guaranty may be immediately enforced against the undersigned (jointly and/or severally if more than one guarantor) on any default by Tenant, and the insolvency of Tenant shall be deemed a default.
8. In the event any action should be commenced by Landlord against the undersigned to enforce any of the terms or conditions of this Guaranty, Landlord shall be entitled to recover from the undersigned hereunder in any action in which it shall prevail, reasonable attorneys’ fees and expenses.
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9. If there is more than one Guarantor, the obligations and liabilities imposed on each individual that serves as a Guarantor under this Guaranty will be joint and several.
10. This Guaranty shall inure to the benefit of Landlord, its successors and assigns, and shall bind the successors and assigns of the undersigned.
11. The unenforceability, invalidity, or illegality of any provision(s) of this Guaranty shall not render the other provisions unenforceable, invalid, or illegal.
12. The undersigned Guarantor(s) acknowledge(s) that he/she has/have reviewed this Guaranty and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Guaranty.
13. The undersigned Guarantor(s) acknowledge(s) giving mature and careful thought to this Guaranty and has the legal capacity and standing to enter into this Guaranty. The undersigned Guarantor(s) acknowledges understanding the meaning and legal consequences of this Guaranty.
14. This Guaranty may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.
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IN WITNESS WHEREOF, the undersigned has executed this Guaranty this ______ day of _____________, 2026.
Guarantor:
______________________
Charles Maier, individually and as
owner of Santa Cruz Diner Inc.
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CERTIFICATE OF ACKNOWLEDGMENT OF NOTARY PUBLIC
State of California)
County of Santa Cruz)
On ______________________ before me,
, Notary Public, personally
appeared __________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
(This area for official notary seal)
Signature ______________________________
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
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Exhibit D
Statement of Gross Income and Rent
(form of begins next page)
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IN ACCOUNT WITH
CITY OF SANTA CRUZ
1200 PACIFIC AVENUE, SUITE 290
SANTA CRUZ, CALIFORNIA 95060
Gilda’s
37 Municipal Wharf
Santa Cruz, CA 95060
This completed and signed form, together with the accompanying payment, must be received by the City no later than close of business on the fifteenth day of the month following the quarter for which you are reporting sales. Do not modify this form.
QUARTERLY STATEMENT OF GROSS INCOME, RENT, AND
CAPITAL IMPROVEMENT CONTRIBUTIONS
FOR QUARTER ENDING _________________ 20__
1. Gross quarterly income (all sales and business transactions): ..................................... $ ___________
2. Cash or credit refunds made upon sales from premises: ..................................................... $ ___________
3. The amount of any city, county, state or federal sales, luxury or excise taxes on sales from the premises where such taxes are both added to the selling price and paid to the taxing authorities by Tenant: ................................................................................. $ ___________
4. Total adjustments (Line 2 plus Line 3): ................................................................................ $ ___________
5. Adjusted gross income (Line 1 minus Line 4): ..................................................................... $ ___________
6. Percentage Rent (Line 5 x 3%): ........................................................................................... $ ___________
7. Current minimum quarterly rent: ............................................................................ $ _9,716.00__
8. RENT DUE (the greater of Line 6 or Line 7): ....................................................................... $ ___________
9. CAPITAL IMPROVEMENT CONTRIBUTION (1.0% of Line 5): ........................................... $ ___________
10. LATE FEE (10% of Line 8 plus Line 9 if paid after the due date): ........................................ $ ___________
11. INTEREST ON UNPAID RENT (1.5% monthly interest on Line 8 plus Line 9 if paid after the due date): ....................................................................................................................... $ ___________
12. CREDIT/TRUE UP (amount of any prior rent over/underpayments)*: .................................. $ ___________
13. TOTAL REMITTANCE (Sum of Line 9-12): .......................................................................... $ ___________
*Description of Credit/True Up
I hereby certify that “Gross Quarterly Income” reported herein is equal to total gross sales which have been or will be reported on the State, Federal and District Sales and Use Tax Return submitted to the State Board of Equalization for the period ending _________________.
______________________________________________________
Signature of Tenant or Tenant’s Principal Agent
Executed at Santa Cruz, California on ______________________, 20_____ w512601
Capital Improvements
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Exhibit E
Construction Work Best Management Practices and Regulations (attached)
12.67 CONSTRUCTION WORK
Best Management Practices
Chapter 4 of the Best Management Practices Manual for the City’s Storm Water Management Program
Planning Department
Public Works Department
809 Center Street, Santa Cruz, CA 95060
Revised: June 2014
Published: March 2007
Authorized by Municipal Code Chapter 16.19
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TABLE OF CONTENTS
1. PLANNING CONSTRUCTION PROJECTS ................................................................................................ 1
1.1. Site Planning to Minimize Project Impacts .............................................................................................. 1
1.2. Erosion Control Plan Requirements ......................................................................................................... 2
2. EROSION AND SEDIMENT CONTROL REQUIREMENTS..................................................................... 3
2.1. Erosion Control ........................................................................................................................................ 3
2.2. Sediment Control...................................................................................................................................... 4
3. SITE HOUSEKEEPING REQUIREMENTS ................................................................................................. 5
3.1. Equipment and Vehicle Maintenance and Cleaning ................................................................................ 5
3.2. Material Storage and Soil Stockpiles ....................................................................................................... 5
3.3. Dewatering Operations ............................................................................................................................. 6
3.4. Waste Management: Building Materials, Demolition Waste, and Vegetation ........................................ 6
3.5. Portable Toilet Facilities .......................................................................................................................... 7
3.6. Site Cleanup ............................................................................................................................................. 8
4. PAINTING AND MASONRY WORK .......................................................................................................... 8
4.1. Painting..................................................................................................................................................... 8
4.2. Masonry and Concrete Work ................................................................................................................... 9
5. SIDEWALK AND ROADWORK ............................................................................................................... 10
6. References & Credits .................................................................................................................................... 10
7. Contact .......................................................................................................................................................... 10
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In the City of Santa Cruz, water in the streets, gutters, and storm drains flows to local creeks, the San Lorenzo River, or Monterey Bay without any treatment. Construction sites have the potential to generate wastewater and runoff that carry sediment, debris, paint, concrete, and other harmful pollutants. Thus, in order to reduce the amount of pollutants reaching the storm drain system and local waterways, the City developed “Best Management Practices (BMPs)” for construction work. All types of construction projects, whether large or small projects, must abide by these BMPs. Construction work includes, but is not limited to, clearing, grading, excavation, stockpiling, building, masonry and concrete work, and roadwork. These BMPs apply to commercial, retail, industrial, and residential projects, and to both new construction sites and remodeling projects.
1. PLANNING CONSTRUCTION PROJECTS
1.1. Site Planning to Minimize Project Impacts
Coordinating BMP implementation and construction activities is critical in preventing erosion and sediment loss. The site planning measures below shall be incorporated in project grading and erosion control plans to reduce the potential for soil erosion and storm water impacts:
Site development shall closely match the existing
topography and soil in order to minimize the
potential for erosion. Minimize disturbed area and
protect natural features including soil, trees and
shrubs.
Protect trees subject to the Heritage Tree
Ordinance and other trees designated for protection
by a development proposal through the use of
fencing, tree armoring, barricades or other
appropriate methods during the construction phases.
Clearly mark the proposed limits of land
disturbance prior to commencing topsoil or
vegetation removal to ensure that only the required
land is cleared. Delineate clearing limits,
easements, setbacks, sensitive or critical areas,
trees, drainage courses, and buffer zones prior to
construction to prevent excessive or unnecessary
disturbances and exposure.
Do not remove existing trees or tree stands located
on a site for which a discretionary permit is
required until such a permit is approved by the
Planning Department.
Conduct grading operations in phases in order to
reduce the amount of disturbed areas and exposed
soil at any one time. Unless specifically approved
on the project’s Erosion Control Plan, no clearing,
excavation, or grading shall be conducted during rainy weather. All rainy season grading must be in accordance with Section 18.45.040 of Title 18 of the City’s Municipal Code. An exception may be granted by the Building Official for minor soil disturbance that does not present a hazard. Plan to route construction traffic over areas that must be disturbed for other construction activities in order to reduce the amount of area that must be cleared.
HEADS UP!
SOIL DISTURBANCE OVER 1 ACRE
If your project will disturb one acre or more of soil
(or is less than one acre but part of a larger
development), you must file a Notice of Intent (NOI)
with the State Water Resource Control Board
(SWRCB) to obtain coverage under the General
Permit for Discharges of Storm Water Associated
with Construction Activity (Construction General
Permit) prior to commencing work.
As part of the submittal to the SWRCB, a Storm
Water Pollution Prevention Plan (SWPPP) must be
prepared for the proposed project by a Qualified
SWPPP Developer (QSD).When receiving coverage
under the Construction General Permit, the project
will be assigned a Waste Discharger Identification
(WDID) from the SWRCB. The City of Santa Cruz
will not issue a Building permit for the project
unless it has received a WDID. For more
information on the Construction General Permit,
visit
http://www.waterboards.ca.gov/water_issue
s/programs/stormwater/construction.shtml
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1.2.Erosion Control Plan Requirements
Site grading and construction activities shall be implemented in accordance with an approved erosion control plan. Before designing an Erosion Control Plan, gather project background information, including soil type, drainage, topography, and surrounding site conditions. This information will help determine appropriate Construction BMPs. Erosion Control Plans shall be submitted with all building permit applications involving ground disturbance and shall include at a minimum:
Site topography
Nearby watercourses within 200 feet of the project area Proposed grading contours
Locations of existing utilities, including sewer, storm drain, curb and gutter, as applicable Location of proposed erosion control measures and installation details (see section 2.1 for requirements)
Location of proposed sediment control measures and installation details (see section 2.2 for requirements)
Location of proposed construction waste control measures (see section 3.4 for requirements) Stockpile and equipment staging areas
Total area of disturbance (in acres)
List of other required permits associated with the grading activity, such as State Construction General Permit, U.S. Army Corps of Engineers 404 permit, State Water Board 401 Water Quality Certification, California Department of Fish and Wildlife 1600 Agreement, as applicable. .
Figure 1: Example Erosion Control Plan
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2. EROSION AND SEDIMENT CONTROL REQUIREMENTS
Erosion and sediment control BMPs shall be in place and implemented, as appropriate, prior to commencing grading or vegetation removal. These measures shall be maintained on all disturbed areas in order to minimize the release of sediment in a site’s storm water discharge.
2.1. Erosion Control
Any project that involves ground disturbance shall include the following minimum erosion control measures on the erosion control plan. Note erosion control measures on the plan and provide installation details.
Protect and preserve topsoil to minimize erosion and retain infiltration capacity.
Minimize land disturbance such as cuts and fills. Stabilize slopes and all disturbed areas as soon as grading is finished or cut-and-fills are made.
Cover bare soils and slopes as soon as possible. Use one or more of the following to reduce the erosion potential from bare, exposed, or disturbed soil: rolled erosion control products (e.g. filter fabric, erosion control blankets, geotextiles), hydraulic mulch or hydroseeding, straw or wood mulch, seeding,
vegetation planting, or other appropriate cover material. Do not use seeding or loose mulch on slopes greater than 3:1 (H:V) without additional erosion protection such as geotextiles or hydroseeding. If vegetative cover is used, establish a uniform vegetative cover with a minimum of 70 percent coverage. Protect vegetated buffer zones and riparian corridors by using silt fences, that are properly staked in (on flat land or moderate slopes), or use other appropriate sediment controls. Properly install and maintain all on-site erosion control measures and structural devices, both temporary and
permanent. Promptly repair or reinstall any erosion control measures and structural devices that were damaged during construction and maintain them so that they do not become nuisances with stagnant water, odors, insect breeding, heavy algae growth, debris, and/or safety hazards.
A qualified person should conduct inspections of all on-site BMPs during each rainstorm, if possible, and after a storm is over to ensure that the BMPs are functioning properly. For sites greater than one-acre, on-site inspections are required in accordance with the State Water Quality Control Board
Construction Activities Storm Water General Permit.
Figure 2: Types of Erosion
Figure 3: Protect Vegetated Buffers &
Riparian Corridors
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2.2. Sediment Control
Any project that involves ground disturbance shall include the following minimum sediment control measures on the erosion control plan. Note sediment control measures on the plan and provide installation details. Installation standard details can be downloaded from the California Department of Transportation (Caltrans) website at http://www.dot.ca.gov/hq/construc/stormwater/details.htm or on the California Stormwater Quality Association (CASQA) website. Perimeter control. Use one or more sediment control measures, such as fiber rolls and silt fences, to prevent sediment from leaving the site during the winter season. The measure(s) used will depend upon site conditions and topography.
Fiber rolls can be used around the perimeter of the soil disturbance area on flat sites to prevent or limit
sediment from leaving the site. In urban areas or sites directly adjacent to streets, place fiber rolls at the back of the curb or sidewalk. Fiber rolls are also appropriate in combination with erosion control cover on slopes to
shorten slope length and spread runoff as sheet flow.
Silt fences can be used for perimeter control and/or as interior controls down-slope of disturbed areas on sites where slopes do not exceed 4:1 (H:V). Silt fences are
not appropriate in concentrated runoff flow areas, in
areas where flooding is a concern, or along slopes.
Silt fences must be properly staked in to be effective. Install silt fences so that the drainage around each fence does not create erosion and rills down-slope of the fence. Turn the ends of the silt fence uphill to prevent storm water from flowing around the fence. If not installed at the same elevation throughout, silt fences will create erosion.
Storm Drain Inlet Protection. Projects that include storm drain inlets or projects that drain into storm drains shall include measures on the Erosion Control Plan to protect the inlets so silt and other pollutants do not enter the storm drain system. Effective methods to protect storm drain inlets include rock/sand bag barriers, fiber rolls, heavy rubber mats to cover and seal the inlet, and geotextile blankets inserted into the catch basin.
Do not use sand bags or straw wattles around storm drain inlets exposed to vehicular traffic in streets or parking lots.
Train employees and contractors to not drive over or park on sand bags, fiber rolls or berms protecting storm drain inlets. If protective barriers are broken or damaged, cleanup and remove any particles entering the storm drain inlet, and replace them immediately. Stabilized construction access/exit. All projects that include ground disturbance must include a stabilized construction access/exit, unless construction vehicles and equipment will remain on paved surfaces at all times during construction. Show the location of the stabilized construction access/exit on the Figure 6: Stabilized construction access Erosion Control Plan as well as construction details and notes.
Figure 4: Perimeter silt fence
Figure 5: Storm drain inlet
protection
12.73 5
Sediment Control on Slopes. Additional measures will be required to reduce runoff velocity and to trap sediments on slopes.
The following measures may be applied individually or in combination: erosion control blankets, fiber rolls, terracing, check dams and energy dissipaters, and/or diversion structures to reduce runoff velocity and trap sediments.
Long-term sediment control. Measures are required to ensure that erosion and sedimentation do not become an issue once the project is completed. The following measures can be effective for long term sediment control once the plantings and roots have grown to sufficient size:
o Seeding slopes by hydro-seeding or with seeded blankets; preferably using native seeds
o Landscaping with plant species that grow rapidly and have root systems that are effective at “holding” soil
3. SITE HOUSEKEEPING REQUIREMENTS
Include the following housekeeping practices on the Erosion Control Plan as applicable. Implement during construction in order to minimize the potential for storm water impacts.
3.1. Equipment and Vehicle Maintenance and Cleaning
Inspect equipment and vehicles frequently and repair any leaks as soon as possible. Contain and clean up leaks, spills, and drips of hazardous materials and chemicals as quickly as possible to minimize run-off or soak in. This includes fuel and motor oil, hydraulic fluid, and glycol based anti-freeze from vehicles. Use dry cleanup methods if possible. Perform major maintenance and repairs off-site. Remove encountered abandoned fuel/oil tanks (and their contents) in a manner consistent with methodology approved by both the City and the Santa Cruz County Environmental Health Department. If repair or refueling of vehicles and equipment must be done on-site, use a designated location away from storm drain inlets, water bodies, and other sensitive areas. If equipment is washed on-site, wash water may not be discharged to the storm drain system. If possible, wash vehicles at an appropriate off-site facility. Recycle used motor oil, other vehicle fluids, and vehicle parts whenever possible.
3.2. Material Storage and Soil Stockpiles
Locate material and soil stockpiles away from gutters, storm drain inlets, and water bodies. In addition, keep stockpiles away from steep slopes and unstable soil in order to minimize the chance of an accidental release to the environment. Stockpiles may never be stored on a street or in an alley unless specifically approved by the Public Works Department.
Store materials, including stockpiles and excavation spoils, under cover and protected from wind, rain, and runoff. Cover piles of soil, construction materials and wastes with plastic sheeting or tarps.
Figure 7: Fiber roll installation
12.74 6
During the rainy season, after October 1st or sooner if rain is forecast, implement control measures for the items listed below if stored outside in order to prevent sediment, litter, and other pollutants from leaving the site and/or being discharged into the storm drain system. o Material stockpiles
o Soil stockpiles
o Excavation spoils
o Construction materials
Store open bags of particulate, granular, or powder materials (such as plaster or concrete) indoors if possible. If stored outside, they must be covered or closed, and during the rainy season they must be kept within secondary containment.
Store paints, chemicals, solvents, and other hazardous materials inside or within a shed with double containment.
Keep dumpster lids closed and secured. For dumpsters or bins that don’t have a lid, cover them with plastic sheeting or a tarp during rainy or windy weather.
3.3.Dewatering Operations
Proper procedures must be followed before starting construction and during construction to manage the discharge of groundwater or storm water accumulated in construction site excavations or other non-storm water discharges.
When it is expected that water encountered during site construction will need to be discharged offsite, make
arrangements ahead of time to properly manage and
dispose of this water. Identify the location of
dewatering activities and the nearest sanitary sewer
connection where the water will be discharged on the
Erosion Control Plan.
Direct groundwater or storm water that must be
pumped out of an excavation to a settling tank to
allow sediments to settle out of the water.
Retain water from fire sprinkler system dewatering
onsite for landscape irrigation or direct it towards the sanitary sewer.
Apply for a wastewater discharge permit from the City’s Wastewater Treatment Facility before connecting to the sanitary sewer. Contact an Environmental Compliance Inspector, at 420-6050 to request a permit.
3.4.Waste Management: Building Materials, Demolition Waste, and Vegetation Onsite storage of construction materials. Store wastes in containers or a dumpster whenever possible.
Cover piles of uncontained wastes and wastes stored in open containers during windy conditions and prior to significant forecasted rain (0.25 inches in a 24-hour period). Do not hose dumpsters out on the construction site.
Use construction products made from or packaged in polystyrene/plastic foam in a manner preventing the polystyrene/plastic foam from being released into the environment.
HEADS UP!
DEWATERING OPERATIONS
Water from fire sprinkler and excavation
dewatering that cannot be managed onsite
shall be directed towards the sanitary
sewer. A permit must be obtained from
the City’s Wastewater Treatment Facility
before connecting to the sanitary sewer.
12.75 7
Building materials and demolition waste. All residential and nonresidential construction projects must comply with the mandatory 50% recycle rate for all construction and demolition waste, per City’s Construction Waste Management Plan (CWMP). If contractors, and/or subcontractors haul their own material as part of the scope of work, they shall not be excluded from complying with the CWMP.
All contractors, and/or subcontractors shall provide the City of Santa Cruz with all required documentation of weight and waste diversion data for the materials hauled. Contact the Green Building coordinator at 420-5120 for more information.
Never leave or abandon materials or excavation spoils at a project site. At the end of a construction project, collect all unused or waste materials and dispose of properly. Do not leave discarded building materials, demolition wastes and waste vegetation in a street, gully, or waterway. Construction and demolition waste recycling. Recyclable waste includes broken concrete, green waste, lumber and wood, scrap metal and appliances. Call the City’s Customer Service Division, at telephone (831) 420-5220, for information about what may be recycled and to make arrangements to have recycling bins or dumpsters brought to the work site.
Construction projects at commercial or industrial sites must obtain any detached roll-off boxes, dumpsters, debris-boxes or other containers for collection of waste materials (to be disposed of or recycled) from the City’s Sanitation Services at (831) 420-5220. A private hauling service may be used only if all roll-off boxes or containers are left attached to the service’s vehicle the entire time the box is at the site.
There are reduced rates available for certain waste materials separated according to type. These waste types are: 1) green waste, lumber and wood; 2) mixed construction and demolition debris; 3) dirt; and 4) broken brick, asphalt, and concrete. When calling Customer Service, please ask about the “Other Materials” box rates and tonnage fees for separated materials. The same tonnage fees are also available at the landfill for self-hauled separated loads.
Waste vegetation. Dispose of waste vegetation and unpainted or untreated lumber through the City’s GreenCycle! program.
The program accepts many types of vegetation including brush, plants, branches, untreated boards, and tree trunks (not exceeding 24 inches in diameter and four feet in length).
Vegetation may be dropped off at the City’s Resource Recovery Facility or placed in a City GreenCycle! container for pickup by the City. For more details, call the City’s Customer Service Division at (831) 420-5220.
Never dump or leave soil, mulch, vegetation, and other
landscape products into the street, gutter, or storm drain system. Hazardous materials. Asbestos and other debris containing hazardous materials must be disposed of as hazardous waste. For more information about hazardous waste disposal, please contact the County Environmental Health Department at (831) 454-2022.
3.5. Portable Toilet Facilities
All sanitary wastes shall be collected and managed through the use of portable toilet facilities, serviced with disposal in the sanitary sewer system, or permanent toilet facilities plumbed to the sanitary sewer. If portable toilets are used, ensure that the leasing company properly maintains the toilets and promptly makes repairs as needed. Conduct visual inspections for leaks.
12.76 8
Place portable toilets on a level surface and at a safe distance away from paved areas and, to the extent practical, storm drain inlets. Secure them to prevent blowing over. Provide secondary containment for portable toilets located within 20 feet of a stream, storm drain, or street.
During pump-out, take appropriate measures to avoid spillage. If spillage occurs it shall be cleaned up immediately.
3.6. Site Cleanup
When cleaning up, sweep whenever possible. Litter and debris must be picked up and disposed of properly.
Road or sidewalk work. In the roadway or on the
sidewalk, material stockpiles must be removed and
cleaned up by the end of each day.
Landscaping work. Sweep up soil and other landscape
products that remain on pavement, such as the sidewalk, driveway, or street by the end of each day.
Sediment Control Devices. Sweep and remove any solid
waste that accumulates at erosion and sediment control
devices as soon as possible.
4. PAINTING AND MASONRY WORK
4.1. Painting
Paint, paint thinner, and rinse water containing either of these may never be discharged into the storm drain system.
When there is a risk of a spill reaching storm drains, protect nearby storm drain inlets prior to starting painting.
Clean up spills immediately.
When work is conducted on a bridge, take precautions to prevent runoff from reaching the water body beneath the bridge. When cleaning brushes and rollers after painting, brush out excess paint onto newspaper or cardboard. Never clean or rinse paintbrushes, rollers, and containers into a street gutter or storm drain inlet.
If using latex paints, the brush or roller can be rinsed in a sink that is plumbed to the sanitary sewer. If using oil-based paints, the brush or roller needs to be cleaned with paint thinner. Do not discharge paint thinners to the sanitary sewer. Paint thinner must be disposed of as hazardous waste.
Drain leftover paint in the roller pan back into the paint can. If using paint hoses and guns, spray out the paint residue into the paint can.
HEADS UP!
SITE CLEANUP
Do not clean the street, sidewalk, or
other paved areas by washing or by
directing sediment, concrete, asphalt, or
other particles into the storm drain
system. If using water, direct it to a
landscaped or grassy area large enough
to absorb all the water.
Figure 8: Do not let paint, paint thinner,
or water containing either flow to the
gutter or storm drain system
12.77 9
Leftover water-based (latex) paint should be
recycled, returned to the supplier or donated to
someone who will use it. Dried latex paint and empty
paint cans may be disposed of in the garbage.
Leftover oil-based paint may be recycled or disposed
of as hazardous waste. For more information about
hazardous waste disposal, please contact the County
Environmental Health Department at (831) 454-2022.
Non-hazardous paint chips and dust from dry
stripping and sand blasting may be swept up or
collected in plastic drop cloths and disposed of as
trash. Residue from chemical paint stripping and chips
and dust from marine paints or paints containing lead
or tributyl tin must be disposed of as a hazardous
waste.
If grinding or blasting is used to remove old paint,
protect nearby storm drain inlets with some type of a
protective cover such as a heavy rubber mat. Paint
dust, particles, and other debris must be completely
cleaned up, preferably by sweeping, after the job is
done.
4.2. Masonry and Concrete Work
Concrete, cement, and masonry products may never be discharged into the storm drain system.
Concrete, cement, and masonry mixing containers may not be washed or rinsed into the street or storm drain system. If a concrete transit mixer is used, a suitable washout box, excavation or self-washing mixer able to contain the waste material shall be provided on-site. Do not mix fresh concrete or cement mortar in a gutter, over a storm drain inlet, or immediately adjacent to a water body.
During tile or concrete cutting, ensure that the slurry water does not run off into the street or storm drain system. Also, dried slurry must be cleaned up and properly disposed so that it will not be carried into the storm drain system by wind, traffic, or rain.
Store materials under cover and protected from wind, rain, and runoff. Small amounts of excess concrete, grout, and mortar may be disposed of in the trash. Wash out from concrete mixers may never be disposed of in the street or storm drain system. If possible, pump the washout back into the mixer for reuse.
HEADS UP!
BUILDING EXTERIOR CLEANING
When using high-pressure water to strip
or clean building exteriors prior to
painting, cover or berm nearby storm
drain inlets to prevent discharge into the
storm drain system. The wastewater must
be collected and discharged to the
sanitary sewer if the paint does not
contain lead (usually buildings painted
after 1978) or mercury. If paint
containing lead or mercury was used,
contact an Environmental Compliance
Inspector, at (831) 420-6050, for
information about the appropriate
discharge or disposal options prior to
commencing the work.
12.78 10
5. SIDEWALK AND ROADWORK
Protect nearby storm drain inlets (preferably with heavy rubber mats) and adjacent water bodies prior to breaking up asphalt or concrete.
If it rains unexpectedly, take appropriate action to prevent pollution of storm water runoff (e.g., divert runoff around work areas, cover materials).
Saw-cut slurry. The discharge of saw-cut slurry to the storm drain system is prohibited. Take measures to contain the slurry and, if necessary, protect nearby catch basins or gutters. If slurry enters the storm drain system, remove material immediately.
Dried saw cut slurry must be cleaned up and properly disposed so that it will not be carried into the storm drain system by wind, traffic, or rainfall.
Oil sealants. Cover and seal nearby storm drain inlets and manholes before applying seal coat, slurry seal, etc. Leave covers in place until the oil sealant is dry or the end of the day. Park paving machines over drip pans or absorbent materials if they have a drip or leak. Waste and material management. After breaking up old pavement, sweep up materials and recycle as much material as possible. Properly dispose of non-recyclable materials.
Never wash sweepings from exposed aggregate concrete into a street or a storm drain inlet. Collect and return to aggregate base stockpile or dispose of in the trash.
Remove and clean up material stockpiles (i.e. asphalt and sand) by the end of each week or, if during the rainy season, the end of the day. Stockpiles must be removed by the end of each day if they are located in a public right-of-way.
6. References & Credits
Erosion and sediment control illustrations from: U.S. Environmental Protection Agency (EPA), National Pollutant Discharge Elimination System (NPDES), “Developing Your Stormwater Pollution Prevention Plan: A Guide for Construction Sites”, available online at http://water.epa.gov/polwaste/npdes/stormwater/Stormwater-Pollution-Prevention-Plans-for-ConstructionActivities.cfm
7. Contact
For more information, please call the City of Santa Cruz:
Public Works Department: 420-5160
Environmental Compliance Inspector: 420-6050
Planning Department: Building Inspection Services at 420-5120 Planning Department: Green Building at 420-5120
Figure 9: Do not discharge saw cut slurry
to the gutter or storm drain system
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Rev. 12.15.2025
Exhibit F
Municipal Wharf Sign Guidelines
1.01. Purpose.
a. These Guidelines are intended to provide Wharf Tenants with general criteria regarding appropriate business signage.
b. All advertising devices and signs shall comply with the regulations set forth at Santa Cruz Municipal Code (“SCMC”) Chapter 24.12 Part 4 entitled “Advertising Devices, Signs and Billboards” made part hereof by reference.
c. In the event of conflict or inconsistency between these Guidelines and SCMC Chapter 24 Part 4, SCMC Chapter 24.12 Part 4 shall prevail.
2.01. City Approval. AII exterior signs must be approved in writing by the City Wharf Staff Committee. Certain types and sizes of signs require zoning and building or electrical permits.
3.01. Sign Application Process.
a. Tenants shall submit an application for all new signage to the City’s Wharf Property Manager. The application shall consist of:
i. Dimensioned drawings of the sign;
ii. Type of material, color, lighting, and other sign characteristics; iii. Sketch or photograph showing proposed location with approximate dimensions to ground, roof, doors, and windows.
b. The Wharf Property Manager will forward the application to the City Staff Wharf Committee for review and action.
c. Upon City Staff Wharf Committee action, the Wharf Property Manager shall inform the Tenant of the decision. If the application is approved, the Tenant will be notified of any other City approvals required.
4.01. Sign Criteria.
a. Types. The following types of signs are appropriate for use on the Wharf:
i. Signs painted directly on buildings.
ii. Signs mounted directly on building walls.
iii. Individual letters and numerals mounted directly on building walls. iv. Neon signs.
v. Iconic signs.
vi. Window signs.
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Rev. 12.15.2025
vii. Hanging Signs.
b. Size. Each Wharf business is allowed thirty (30) square feet of total sign area. The following configurations are acceptable:
i. One 6’x5’ sign;
ii. Three 2’x5’ signs;
iii. One 4’x5’ sign, one 2x2’ sign, and one 3’x2’ sign; iv. Other configurations as approved by City Staff Wharf Committee. c. Location.
i. Signs should normally be located at or near pedestrian eye level. ii. Signs shall not project above the roof line or project over the sidewalk unless there is an 8’ high clearance over the sidewalk.
iii. Neon signs are permitted on building exteriors and in windows. iv. Other types of signs positioned in windows are discouraged in order to allow views into and through business spaces.
5.01. Sign Design Considerations.
a. Given the nature of the Wharf and its environs, marine-oriented themes are most appropriate.
b. Signs Painted Directly on Buildings - This type of sign lends itself well to buildings on the Wharf and could develop an overall visual theme. The size of such signs is dependent on the section of the building where they are proposed. Large wall sections could appropriately contain larger signs.
c. Signs Mounted on Building Walls - Useful for locations where painting directly on building walls is not desirable. Carved wooden or composite material signs with a marine-related theme can work well. Wall-mounted signs are to be flush with the building surface.
d. Individual Letters Mounted on the Building - Letters should not exceed 12” in height and should not project more than 2” from the building wall. Plastic letters are not allowed, nor are self-illuminated letters. Letters in colors that appropriately contrast with the background are most effective.
e. Neon Signs - Neon signs provide light, color, and vibrancy, and are especially effective after dark. Neon signs are appropriate for display in windows, provided that they are in scale with the window size and do not completely obscure views through the window. Neon signs may also be mounted directly on the building wall to supplement a painted sign. Flashing or blinking neon signs are not permitted. f. Iconic Signs - Iconic signs are hanging or projecting signs which depict a physical object such as an anchor or a boat, as contrasted with signs which utilize lettering to convey the sign’s message. Iconic signs that are in scale with the structure and use of
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Rev. 12.15.2025
the building are most effective. Iconic signs may not present obstructions to pedestrian traffic, and an 8’ overhead clearance is required for any iconic sign overhanging a pedestrian walkway.
g. Window Signs - Painted signs or decals on glass should be designed so that views into and through the business are maintained.
h. Hanging Signs - Small hanging signs beneath an overhang or canopy may be approved if they are incidental and purposeful (e.g., advertising an “Annual Sale”). i. Sign Lighting - Flood lighting of signs is allowed provided that lights are directed away from pedestrians.
j. Banners and Flags - Banners, flags and pennants may be used for specific and limited purposes, but when used to excess may actually detract from the desired result. These advertising devices must be approved on a case-by-case basis. k. Temporary Signs and Posters - These advertising devices are generally discouraged but may be used for no longer than fourteen days at a time with prior approval. They may not obstruct views into and through buildings.
l. Menus - Food establishments may display menus securely fixed to the wall or in an enclosed display case. A display case may be lighted.
m. Addresses - All businesses should display clearly legible address numbers. They may be incorporated into signage as appropriate.
n. Sandwich Board and Movable Freestanding Signs - Are not permitted.
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Rev. 12.15.2025
EXHIBIT G
Insurance Requirements
Tenant shall procure and maintain for the duration of the Lease, insurance against claims for injuries to persons or damages to property which may arise from or in connection with Tenant’s operation on, access to, and/or use of the Premises. The cost of such insurance shall be borne by Tenant.
A. Insurance Certificate Requirements.
Landlord will be issued a Certificate of Insurance (a Memorandum of Understanding will not be accepted) with the following minimum requirements:
• Certificate(s) will show current policy number(s) and effective dates, • Coverage and policy limits will meet, or exceed, requirements below, • The Certificate Holder will be City of Santa Cruz, Risk Management, 1200 Pacific Ave., Suite 290, Santa Cruz, CA 95060,
• Certificate will be signed by an authorized representative, • An endorsement, if required below, will be provided to show the Landlord, its officers, officials, employees, and volunteers as additional insureds, and • Coverages must be maintained during the Term of the Lease with the Landlord, unless a longer duration is required.
B. Minimum Scope and Limit of Insurance.
Tenant acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. If Tenant maintains broader insurance coverage and/or higher limits than the minimums shown below, Landlord shall be entitled to the broader insurance coverage and/or higher limits maintained by Tenant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to Landlord.
Tenant shall maintain limits no less than the following:
1. Commercial General Liability (CGL): $2,000,000.00 per occurrence; $2,000,000 in the aggregate, including products and completed operations, property damage, bodily injury and personal & advertising injury insuring against all liability of Tenant and its employees, agents, representatives, subtenants, assignees and concessionaires arising out of and in connection with Tenant's use or occupancy of the Premises; and, if applicable, liability for the sale and distribution of liquor and alcoholic beverages.
2. “All Risk” Property Insurance Coverage. Tenant shall, at Tenant's sole expense, obtain and keep in full force and effect an insurance policy covering all of Tenant's personal property, trade fixtures, equipment and merchandise located in or upon the Premises in an amount sufficient to cover not less than one hundred percent (100%) of the replacement value thereof, providing protection against any peril included within including sprinkler damage, vandalism and malicious mischief endorsements ordinarily included in extended coverage casualty insurance policies. Tenant shall be solely responsible for any uninsured loss or damage caused to Tenant's personal property, trade fixtures, equipment and merchandise located in or upon the Premises for any reason.
3. Fire Insurance\Legal Liability Coverage. Tenant, at its sole cost, shall procure and maintain in full force and effect at all times during the Term of this Lease, fire and extended coverage insurance satisfactory to Landlord covering the Premises to keep all leased property or rented
12.83
Rev. 12.15.2025
space, Tenant Improvements therein in an amount not less than one hundred percent (100%) of the full replacement cost against loss or destruction by fire and all perils, including vandalism, malicious mischief, special extended perils (“special form”). The property insurance is to be endorsed to include Legal Liability Coverage (ISO Form CP 00 40 04 02 or equivalent) with a limit equal to the replacement cost of the leased property. Landlord shall be named as an additional insured and loss payee on the policies. Any loss payable under any policy described in this section shall be paid by the insurance company to Landlord or as otherwise agreed by the Parties to be used to fund the repair or replacement of the damaged Premises or improvement pursuant to this Lease. “Full replacement cost,” as used in this section, shall mean the actual cost of replacement for the building and other improvements on the Premises, as determined from time to time.
4. Business Interruption Insurance. Policy with adequate limits to cover the Term of this Lease and shall contain an inflation endorsement if the Premises or Tenant Improvements are destroyed or rendered inaccessible by a risk insured against by a policy of standard fire and extended coverage insurance, with vandalism and malicious mischief endorsements.
Insurance proceeds thereunder shall be payable to Landlord for loss of rents.
5. Workers’ Compensation and Employer’s Liability Insurance. Tenant shall obtain policies as required by applicable law against liability arising on account of injuries or death to workers or employees on the Premises or any Tenant Improvement. Such workers’ compensation insurance shall be in amounts at least equal to the maximum liability of Tenant, its agents, and contractors under the Workers’ Compensation Insurance and Safety Act of the State of California and the Federal Longshore and Harbor Workers’ Compensation Act, as applicable.
Tenant shall also maintain Employer’s Liability insurance with limits no less than One Million Dollars ($1,000,000) per accident for bodily injury or disease, $1,000,000 disease – policy limit, $1,000,000 disease – each employee. Such insurance shall include a waiver of subrogation in favor of Landlord.
C. Other Insurance Provisions.
ADDITIONAL INSURED STATUS
Landlord, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of Tenant, including materials, parts, or equipment furnished in connection with such work or operations, products and completed operations.
General liability coverage will be provided in the form of an endorsement to Tenant’s insurance at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 (if a later edition is used).
PRIMARY COVERAGE
For any claims related to this Lease, Tenant’s insurance coverage will be primary and non-contributory as respects Landlord, its officers, officials, and employees. Any insurance or self-insurance maintained by Landlord, its officers, officials, and employees will be excess of Tenant’s insurance and will not contribute with it.
NOTICE OF CANCELLATION
Each insurance policy required above shall state that the coverage shall not be canceled, except with notice to Landlord.
WAIVER OF SUBROGATION
Tenant hereby grants to Landlord a waiver of any right to subrogation, except as otherwise not applicable, which any insurer of said Tenant may acquire against Landlord by virtue
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Rev. 12.15.2025
of the payment of any loss, including attorney’s fees under such insurance. Tenant agrees to obtain any endorsement that may be necessary to effectuate this waiver of subrogation, but this provision applies regardless of whether or not Landlord has received a waiver of subrogation endorsement from the insurer.
EXCESS LIABILITY/UMBRELLA INSURANCE POLICIES
Tenant may use excess liability/umbrella policies to meet the required liability limits on the condition that they provide all of the insurance coverages required herein, including, but not limited to, primary and non-contributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements. The excess liability/umbrella insurance policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying CGL insurance. No insurance policies maintained by the additional insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until Tenant’s primary and excess liability policies are exhausted.
SELF-INSURED RETENTIONS (SIR)
Self-insured retentions must be declared to and approved by Landlord. Landlord may require Tenant to purchase coverage with a lower retention or provide proof of ability to pay losses and related expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or Landlord.
ACCEPTABILITY OF INSURERS
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:
VII, unless otherwise acceptable to Landlord.
VERIFICATION OF COVERAGE
Tenant will furnish Landlord with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL, and any Excess Liability/Umbrella policies, as applicable, listing all policy endorsements to be approved by the Landlord before the Lease begins. However, failure to obtain the required documents prior to the Lease beginning will not waive Tenant’s obligation to provide them. Landlord reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
SUBCONTRACTORS
Tenant shall include their subcontractor(s) as additional insured(s) under the policies or shall furnish separate certificates and endorsements for each contractor and subcontractor for any work related to the Premises. Tenant shall require and verify that all contractors and subcontractors maintain insurance meeting all the requirements stated herein, and Tenant shall ensure that Landlord, its officers, officials, employees, agents, and volunteers are named as additional insureds on insurance required from its contractor(s) and subcontractor(s).
SPECIAL RISKS/CIRCUMSTANCES
Landlord reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances and provide notice to Tenant.
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Rev. 12.15.2025
EXHIBIT H
Description of Landlord and Tenant Work
Landlord Work
Not applicable
Tenant Work
Tenant shall comply with all requirements set forth in Article 9 (Improvements, Alterations, and Additions) of the Lease in completing the following work:
1. Replace windows with high efficiency and operable styles to improve visibility by March 15, 2027.
a. Landlord may match up to fifty percent (50%) of window replacement cost towards the Capital Improvement Fund, subject to Landlord’s written final approval of design and cost estimate.
b. Tenant shall submit proof of payment of window replacements in order to receive any credit from Landlord towards the Capital Improvement Fund. c. Upon Landlord’s written acceptance of Tenant’s proof of payment for the window replacements, Tenant’s Capital Improvement contribution shall be reduced from one percent (1%) to one-half percent (0.5%) until the unpaid portion of the Capital Improvement contribution of one-half percent (0.5%) is equivalent to Landlord’s match owed.
1. Replace carpets prior to the end of the Initial Term.
2. Replace seating prior to the end of the Initial Term.
3. Renovate entryway ceiling to a more contemporary style (as approved by Landlord in writing), anticipating wood slat coating after removal or over existing popcorn ceiling by May 31, 2026.
12.86 City of Santa Cruz
BUDGET ADJUSTMENT REQUEST
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2026
02/24/2026
Adjustment for revenue following the execution of new Municipal Wharf Lease at 37 Municipal Wharf. Increased gross sales may increase estimated rent collected in the Capital Improvement Fund project w512601. 319-51-81-9221-57290 w512601-667-1026-0 37 Municipal Wharf 4,233 4,233
0 4,233
David
McCormic
Digitally signed by
David McCormic
Date: 2026.02.04
22:15:13 -08'00'
Kathryn
L. Mintz
Digitally signed by
Kathryn L. Mintz
Date: 2026.02.06
07:48:53 -08'00'
Digitally signed
by Emily Burton
Date: 2026.02.06
'12:30:42 -08'00
Elizabet
h Cabell
Digitally signed by
Elizabeth Cabell
Date: 2026.02.09
10:17:31 -08'00' 12.87
City Council
AGENDA REPORT
DATE: 02/05/2026
AGENDA OF: 02/24/2026
DEPARTMENT: Economic Development
SUBJECT: Design Services Contract for the Coral Street Navigation Center (ED) LOCATION: District 5
RECOMMENDATION: Motion to:
1) Authorize the City Manager, or designee, to execute a contract with NJA Architecture for design services through construction management in an amount not to exceed $1,280,040, and any related documents in a form to be approved by the City Attorney; and 2) Authorize the Deputy City Manager, or designee, to execute amendments or change orders with NJA Architecture within the approved budget of the Navigation Center BHCIP project (c512602).
BACKGROUND: In 2022, the City purchased the property site at 125 Coral Street with the intent to incorporate it into the Coral Street Campus, where services were already being provided to unhoused individuals in our community by the County, Housing Matters, and Encompass Community Services. The Coral Street Visioning Report, as presented to the City Council in 2023, sets goals and priorities for the Coral Street Campus, focusing the use of the site for a navigation center with expanded shelter capacity and wrap around services.
The California Department of Health Care Services (DCHS) launched the bond funded Behavioral Health Continuum Infrastructure Program (BHCIP) to address historic gaps in the behavioral health care continuum and meet the growing demand for services and support across the life span of vulnerable individuals in need. Proposition 1, the Behavioral Health Infrastructure Bond Act of 2024, created a new source of infrastructure funding in the State of California (State).
In 2024, the City Council authorized the submission of a BHCIP grant application in an amount not to exceed $30,000,000 and the execution of a Program Funding Agreement. In May 2025, the City received notification that it was awarded the grant in the amount of $30,000,000 from the California Department of Health Care Services Bond BHCIP to fund the proposed 50 bed residential substance use disorder (SUD) facility. The project will be known as the Coral Street SUD Navigation Center. The Program Funding Agreement was fully executed on January 27, 2026.
13.1 DISCUSSION: In December 2025, a request for proposals (RFP) was released for design services for the Coral Street SUD Navigation Center, and four proposals were received. The California Government Code Section 4526 qualifications-based selection model for procurement of architectural services by state and local agencies mandates selection on the basis of demonstrated competence and professional qualifications, with fees to be negotiated later with the most highly qualified firm.
All proposals were evaluated based on the criteria in the RFP and the qualifications presented by the architects. The most qualified proposal was submitted by NJA Architecture, an architectural planning and design firm with an office in Lodi, California, experienced with BHCIP funded projects, and having a client roster ranging from cities, counties, community centers, access centers, homeless shelters, navigation centers, and affordable housing.
Staff negotiated fees with NJA Architecture to perform the required services which include design development drawings, construction drawings for permits, specifications and bid documents, and construction management support. The recommended contract fee from design services through construction management support for NJA Architecture is in an amount not to exceed $1,280,040.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: On June 26, City Council certified the CEQA Environmental Impact Report for the City’s General Plan 2030 (“General Plan EIR”). The proposed Council action is not a “project” under CEQA because the Council is simply authorizing a contract for design services for the proposed navigation center. With that said, it is worth noting that the facility proposed to be constructed on the site will likely qualify for a CEQA exemption under 1 or more categories, including the class 32 Categorical Exemption (14 CCR Section 15332), which applies to infill projects that are consistent with all applicable general plan policies and zoning criteria. In addition, there is a statutory exemption from CEQA under Welfare and Institutions Code section 5960.3(b): Projects funded by Behavioral Health Continuum Infrastructure Program grants. Finally, Section 65662 states that CEQA does not apply to the approval of a “low barrier navigation center” to provide transitional housing for the homeless. Such centers are allowed by right in mixed use and nonresidential zones permitting multifamily uses.
HEALTH IN ALL POLICIES (HiAP): The project is consistent with the Health in All Policies pillars of equity, public health, and sustainability. The proposed Coral Street residential facility would serve some of the most challenged unhoused individuals in the City, providing on site substance use disorder treatment for multiple levels of care per the American Society of Addiction Medicine (ASAM). The project would permit folks to stay within the community for treatment and receive wrap around services instead of having to wait for a treatment bed to become available someplace else.
FISCAL IMPACT:
1. The recommendation in this report impacts the General Fund: No
2. This recommendation requires a budget adjustment: No
3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: Funds are available and budgeted in the Economic Development capital investment program (CIP) project, Navigation Center BHCIP (c512602).
13.2 Prepared By:
Kathryn Mintz
Development Manager
Submitted By:
Bonnie Lipscomb
Deputy City Manager
Approved By:
Matt Huffaker
City Manager
ATTACHMENTS:
1. NJA ARCHITECTURE DRAFT CONTRACT AGREEMENT.DOCX
13.3 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0265 January 2026 (Form Rev.03/25 ) Page 1
Professional Services Agreement With
NJA Architecture
For CORAL STREET RESIDENTIAL SUBSTANCE USE DISORDER NAVIGATION CENTER THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) for professional services is made by and between the City of Santa Cruz (“City”) and NJA Architecture (“Consultant”) (each is referred to individually as a “Party” and collectively, as the “Parties”) as of ____________, 20__ (the “Effective Date”).
NOW, THEREFORE, in consideration of each other’s mutual promises, the Parties hereto agree as follows:
SECTION 1: SCOPE OF WORK
Consultant will furnish services as defined and described in the Scope of Work, attached hereto as Exhibit A and incorporated herein.
SECTION 2: RESPONSIBILITIES OF CONSULTANT
All services performed by Consultant, or under Consultant’s direction, shall be rendered in accordance with the generally accepted practices, and to the standards of, Consultant's profession. Consultant represents and agrees that Consultant: (i) is fully experienced and properly qualified to perform the work and services provided for herein, (ii) has the financial capability required for the performance of the work and services, and (iii) is properly equipped and organized to perform the work and services in a competent, timely, and workmanlike/professional manner, in accordance with the requirements of this Agreement.
Consultant shall not undertake any work beyond the Scope of Work set forth in Exhibit A unless such additional work is approved in advance and in writing by City. City shall compensate Consultant for such additional work on the same basis as provided for in Section 4.
If, in performing the services, it is necessary to conduct field operations, security and safety of the job site will be the Consultant's responsibility excluding, the security and safety of any facility of City within the job site which is not under the Consultant’s control or authority.
Consultant shall meet with Bonnie Lipscomb, Deputy City Manager, hereinafter called "Director", or other designated and authorized City personnel, and/ or third parties as necessary, on all matters connected with carrying out Consultant’s services described in Exhibit A. Such meetings shall be held at the request of either Party.
Consultant shall obtain City’s review and acceptance of completed work monthly, or at other intervals as may be mutually agreed upon during the term of this Agreement. Review or acceptance of Consultant’s work by City or its designee shall not relieve Consultant from responsibility for errors and omissions in Consultant’s work.
SECTION 3: RESPONSIBILITIES OF THE CITY
City shall make available to Consultant all data and information in the City’s possession necessary to carrying out and completing the services and shall actively assist Consultant in obtaining such information from other agencies and individuals as needed. Consultant is entitled to reasonably rely upon the accuracy and completeness of such data and information, and Consultant shall provide City prompt written notice of any known defects in such data and information.
The Director may authorize a City staff person to serve as their representative with respect to this Agreement.
Consultant’s work shall be reviewed at such intervals as may be mutually agreed upon between the Parties. The City will be the sole judge of acceptable work, provided that such approval will not be unreasonably withheld or
13.4 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0265 January 2026 (Form Rev.03/25 ) Page 2
delayed. If the work is not acceptable, City will inform Consultant of the changes or revisions necessary to secure acceptance.
SECTION 4: FEES AND PAYMENT
For services actually performed, the City will compensate Consultant at the rates set forth in the Fee Schedule detailed in Exhibit B and in accordance with the terms set forth therein. Payment for Consultant's services in carrying out the entire Scope of Work shall be made within the budget limit, or limits shown, upon Exhibit B.
Consultant agrees that the payments to Consultant specified in this Section 4 will constitute full and complete compensation for all obligations assumed by Consultant under this Agreement. Such payments shall be considered the full compensation for all personnel, materials, supplies, and equipment used by Consultant in the Scope of Work. Where conflicts regarding compensation may occur, the provisions of this section shall apply.
Variations from the budget for each task which are justified by statements indicating personnel time expended and submittal of a revised budget are only allowed with prior City approval; however, in no event shall the total fee charged for the Scope of Work set forth in Exhibit A exceed the contract budget of $1,218,700 without advance written City authorization in the form of an amendment or change order.
ADD/ALTERNATES. Consultant and the City mutually agree to the list below of additional alternates with the design work. Consultant will, after notice of election from the City provide:
Boundary Survey - $9,610
Topographic Survey - $14,890
SWPPP - $6,170
QSD Inspections, BMP 5 Visual - $9,610
Geotechnical Exploration, Testing, and Reporting – $21,060 Invoices shall detail the time worked by each class of employee on each task and the expenses incurred for which billing is made. Invoices shall indicate the percentage completion of each work task as identified in the Scope of Work in Exhibit A and the overall percentage of completion of the total required services. Unless otherwise specified in the fee schedule, payments shall be made monthly by the City within 30 days based on itemized invoices from the Consultant which list the actual costs and expenses.
All invoices shall contain the following affidavit signed by Consultant (if individual) or by an authorized representative of Consultant (if Consultant is an entity):
“[I] or [As an authorized representative of Consultant, I] hereby certify that the charge of (Insert invoice amount) as summarized above and shown in detail on the attachments is in accordance with the terms of the Agreement by and between the City of Santa Cruz and (Insert Party Name) dated (Insert Agreement Date), and has not been previously paid." This Agreement is contingent upon the appropriation of sufficient funding by the City and state for the Scope of Work covered by this Agreement. If funding is reduced or deleted for the Scope of Work covered by this Agreement, the City has the option without penalty or liability to either terminate this Agreement or to offer an amendment to this Agreement indicating any reduced amount.
SECTION 5: TRAVEL REIMBURSEMENT POLICY
The City shall not be responsible for any travel, meal, or lodging reimbursements to Consultant and/or Consultant’s employees [
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SECTION 6: CHANGES IN WORK
City may negotiate changes to the Scope of Work. No changes to the Scope of Work shall be made without the prior written agreement between City and Consultant. Any change requiring compensation in excess of the sum specified in Exhibit B shall be approved in advance in writing by the City. Only City’s authorized representative(s) is authorized to approve changes to this Agreement on behalf of City.
SECTION 7: TERM AND SCHEDULE
The term of this Agreement shall commence on the effective date of this Agreement and terminate on or upon completion of the Scope of Work.
Consultant shall begin the Scope of Work as specified in a written authorization (e.g., Notice to Proceed) to perform services issued by the City. The written authorization to perform work shall not be issued until after this Agreement has been approved and executed by the City.
The Work Schedule for completion of the work shall be as shown upon Exhibit C. In the event there are major changes to the Scope of Work, the schedule for completion as stated in Exhibit C may be adjusted with the City’s approval to allow Consultant a reasonable period of time within which to complete any additional work which may be required as a result of the changes to the Scope of Work.
Neither party shall be held responsible for delay or default caused by declared emergencies, natural disasters, or any Force Majeure event which is beyond the party's reasonable control. Consultant will, however, make all reasonable efforts to remove or eliminate such a cause of delay or default and will, upon the cessation of the cause, diligently pursue performance of its obligations under this Agreement.
The City reserves the right to obtain the item(s) and/or services covered by this Agreement from another source during any on-going suspension of service due to the circumstances outlined above.
Consultant acknowledges that it is necessary for Consultant to complete its work on or before the completion date set forth in Exhibit C in order to allow the City to achieve its objectives for entering into this Agreement. The Parties therefore agree that time is of the essence in the performance of this Agreement.
SECTION 8: TERMINATION
The City may terminate the Agreement for any reason by providing written notice to Consultant not less than 10 calendar days prior to an effective termination date.
The City may, at its option, allow Consultant to cure its failure to perform within 10 business days (or longer period authorized in writing by the City) from the date of the City’s termination notice. The termination shall be become effective if Consultant has not cured within the specified time period to the City’s satisfaction.
Consultant may terminate this Agreement for cause if the City fails to cure a material default in performance of its obligations under this Agreement within a period of 30 calendar days (or such longer period agreed to by the Consultant), from the date of the Consultant’s written termination notice specifying the default in performance.
Consultant must provide a written notice of termination to the City not less than 60 calendar days of the effective termination date.
Upon notice of termination by either the City or Consultant, the Consultant will immediately act to not incur any additional obligations, costs or expenses, except as may be reasonably necessary to terminate its activities. The City’s only obligation to the Consultant will be just and equitable payment for services authorized by, and received to the satisfaction of, the City up to and including the effective date of termination less any amounts withheld. All
13.6 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0265 January 2026 (Form Rev.03/25 ) Page 4
finished or unfinished work or documents procured or produced under the Agreement will become property of the City upon the termination date. In the event of Consultant’s failure to perform pursuant to the Agreement, the City reserves the right to obtain services elsewhere and Consultant will be liable for the difference between the prices set forth in the terminated Agreement and the actual cost to the City. Termination of the Agreement pursuant to this paragraph shall not relieve the Consultant of any liability to City for additional costs, expenses, or damages sustained by City due to failure of the Consultant to perform pursuant to the Agreement. City may withhold any payments to Consultant for the purpose of set-off until such time as the exact amount of damages due City from Consultant is determined. After the effective date of termination, Consultant will have no further claims against the City under the Agreement. No other compensation will be payable for anticipated profit on unperformed services.
SECTION 9: INSURANCE
Prior to the beginning of and throughout the duration of the Agreement, Consultant will maintain and comply with the Insurance Requirements as set forth in Exhibit D. Consultant will insure the City against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder. The insurance coverages required shall not in any way limit the liability of the Consultant.
SECTION 10: INDEMNIFICATION
Consultant agrees, to the fullest extent permitted by law, to indemnify, defend, and hold harmless the City, its officials, officers, employees, agents, and volunteers (collectively, “Indemnitees”) from and against any and all liability, claim, action, loss, injury, damage, judgment, or expense, including attorneys’ fees and costs (“Losses”) caused by or resulting from the negligence, recklessness, or willful misconduct of Consultant, Consultant’s officers, employees, agents, or subcontractors in any way related to this Agreement. Consultant’s duty to indemnify and hold harmless Indemnitees shall not apply to the extent such Losses are caused by the sole or active negligence or willful misconduct of Indemnitees. Consultant’s obligation to defend shall arise regardless of any claim or assertion that Indemnitees caused or contributed to the Losses.
In the event this Agreement involves the performance of design professional services by Consultant, Consultant’s officers, employees, agents, or subcontractors, Consultant’s costs to defend Indemnitees shall not exceed the Consultant’s proportionate percentage of fault per Civil Code §2782.8. This section shall survive the termination or expiration of this Agreement.
SECTION 11: EQUAL EMPLOYMENT OPPORTUNITY/NON-DISCRIMINATION POLICIES City’s policies promote a working environment free from abusive conduct, discrimination, harassment, and retaliation; and require equal opportunity in employment for all regardless of race, religious creed (including religious dress and grooming practices), color, national origin (including language use restrictions), ancestry, religion, disability (mental and physical), medical condition, sex, gender (including gender identity and gender expression), physical characteristics, marital status, age, sexual orientation, genetic information (including family health history and genetic test results), organizational affiliation, and military or veteran status, or any other consideration made unlawful by local, State or Federal law. City requires Consultant to comply with all applicable Federal and State and local equal employment opportunity laws and regulations, and Consultant is responsible for ensuring that effective policies and procedures concerning the prevention of abusive conduct, discrimination, harassment, and retaliation exist in Consultant’s business organization. The City’s current Equal Employment Opportunity and Non-Discrimination policies to which this Section applies may be viewed at http://www.codepublishing.com/CA/SantaCruz/?SantaCruz09/SantaCruz0983.html and https://www.santacruzca.gov/Government/City-Departments/Human-Resources/Equal-Employment-OpportunityEEO.
SECTION 12: LEGAL ACTION/ATTORNEYS’ FEES
13.7 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0265 January 2026 (Form Rev.03/25 ) Page 5
If any action at law or in equity is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief. The laws of the State of California, with jurisdiction in the Santa Cruz County Superior Court, shall govern all matters relating to the validity, interpretation, and effect of this Agreement and any authorized or alleged changes, the performance of any of its terms, as well as the rights and obligations of Consultant and the City.
SECTION 13: AMENDMENTS
This Agreement may not be amended in any respect except by way of a written instrument which expressly references and identifies this particular Agreement, which expressly states that its purpose is to amend this particular Agreement, and which is duly executed by the City and Consultant. Consultant acknowledges that no such amendment shall be effective until approved and authorized by the City’s authorized representative. No representative of the City is authorized to obligate the City to pay the cost or value of services beyond the scope of services set forth in Exhibit A.
Such authority is retained solely by the City Manager, Director, or their designee. Unless expressly authorized by the City Manager or Director, Consultant’s compensation shall be limited to that set forth in Exhibit B, Fee Schedule.
SECTION 14: MISCELLANEOUS PROVISIONS
1. Project Manager/Key Staff. Director reserves the right to evaluate and confer with Consultant regarding the project manager or other key staff assigned by Consultant to perform the work under this Agreement. Consultant shall replace the project manager or key staff upon Director’s request due to Director’s concern about their performance.
Otherwise, no change in assignment by the Consultant may occur without prior written approval of the City.
2. Consultant Services Only. Consultant is employed to render professional services only and any payments made to Consultant are compensation solely for such professional services.
3. Independent Contractor. In the performance of this Agreement, it is expressly understood that Consultant, including each of Consultant’s employees, agents, subcontractors or others under Consultant’s supervision or control, is an independent contractor solely responsible for its own acts and omissions, and shall not be considered an employee of the City for any purpose. Consultant agrees to indemnify, defend and hold harmless the City, its officials, officers, employees, and agents against any claim or liability, including attorneys’ fees and costs, arising in any manner related to this Agreement that an employee, agent or others under Consultant’s supervision or control was misclassified.
In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.
4. Consultant Not an Agent. Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.
5. Subcontractors. Consultant shall obtain prior approval of the City prior to subcontracting of any work pursuant to this Agreement. If at any time, the City determines any subcontractor is incompetent or unqualified, Consultant will be notified and will be expected to immediately cancel the subcontract. Consultant shall require and verify that all subcontractors maintain insurance meeting all of the requirements stated herein, including naming the City of Santa Cruz, its officers, officials, employees, agents, and volunteers as additional insureds. Any modification to the insurance requirements for subcontractors must be agreed to by the City in writing.
13.8 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0265 January 2026 (Form Rev.03/25 ) Page 6
Consultant shall be as fully responsible to the City for the negligent acts and omissions of its contractors and subcontractors or subconsultants, and of persons either directly or indirectly employed by them, or acting on Consultant’s behalf pursuant to this Agreement, as it is for the acts and omissions of persons directly employed by Consultant. Consultant’s obligation to pay its subconsultants is an independent obligation from the City’s obligation to make payments to the Consultant.
6. Assignment. This Agreement shall not be assigned without first obtaining the express written consent of the Director or after approval of the City Council. Neither party may assign this Agreement unless this Agreement is amended in accordance with its terms.
7. Conflicts of Interest. Consultant agrees to comply with conflict of interest laws in performing the work and services under this Agreement. Consultant covenants (on behalf of Consultant and Consultant’s employees, agents, representatives, and subcontractors) that there is no direct or indirect interest, financial or otherwise, which would conflict in any manner or degree with the performance of services required under this Agreement. Consultant acknowledges and agrees to comply with applicable provisions of conflict of interest law and regulations, including the CA Political Reform Act, (Gov’t. Code §§1090, 87100), Levine Act (Gov’t. Code §84308), and the City’s conflict of interest code. Consultant will immediately advise City if Consultant learns of a conflicting financial interest of Consultant during the term of this Agreement.
8. City Property. The work, or any portion, of Consultant in performing this Agreement shall become the property of City. The Consultant may be permitted to retain copies of such work for information and reference in connection only with the provision of services for the City. All materials and work product, whether finished or unfinished, shall be delivered to City upon completion of contract services or termination of this Agreement for any reason.
Consultant acknowledges and agrees that the work product shall be considered a work made for hire within the meaning of the patent and copyright laws of the United States; and Consultant agrees that all copyrights which arise from creation of project-related documents and materials pursuant to this Agreement shall be vested in the City and Consultant waives and relinquishes all claims to copyright or other intellectual property rights in favor of City. Any work product related to this Agreement shall be confidential, not to be used by the Consultant on other projects or disclosed to any third party, except by agreement in writing by the City, or except as otherwise provided herein.
Consultant’s final deliverables shall comply with Section 508 (29 U.S.C. Section 794d) accessibility requirements, as applicable. Notwithstanding any other provision of this Agreement to the contrary, Consultant shall retain the rights in any pre-existing standard drawing details, designs, specifications, databases, computer software, proprietary information, documents, templates, and any other property owned by Consultant on the date of this Agreement or developed outside of this Agreement.
9. Intellectual Property and Indemnity.
a. Consultant represents to City that, to the best of Consultant’s knowledge, any Intellectual Property (including but not limited to: patent, patent application, trade secret, copyright and any applications or right to apply for registration, computer software programs or applications, tangible or intangible proprietary information, or any other intellectual property right) in connection with any services and/or products related to this Agreement does not violate or infringe upon any Intellectual Property rights of any other person or entity. b. To the fullest extent permitted by law, Consultant agrees to indemnify, defend, and hold harmless City, its officials, officers, employees, and agents, from any and all claims, demands, actions, liabilities, damages, or expenses (including reasonable attorneys’ fees and costs) arising out of a claim of infringement, actual or alleged, direct or contributory, of any Intellectual Property rights in any way related to Consultant’s performance under this Agreement or to the City’s authorized intended or actual use of Consultant’s product or service under this Agreement. This provision shall survive termination or expiration of this Agreement.
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c. If any product or service becomes, or in the Consultant’s opinion is likely to become, the subject of a claim of infringement, the Consultant shall, at its sole expense: (i) provide the City the right to continue using the product or service; or (ii) replace or modify the product or service so that it becomes non-infringing; or (iii) if none of the foregoing alternatives are possible even after Consultant’s commercially reasonable efforts, in addition to other available legal remedies, City will have the right to return the product or service and receive a full or partial refund of an amount equal to the value of the returned product or service, less the unpaid portion of the purchase price and any other amounts, which may be due to the Consultant. City shall have the right to retrieve its data and proprietary information at no charge prior to any return of the product or termination of service.
10. Confidentiality.
a. Consultant shall not acquire any ownership interest in data and information (“City Data”) received by Consultant from City, which shall remain the property of the City. Certain information may be considered confidential (“Confidential Information”). Confidential Information shall mean all information or proprietary materials (in every form and media) not generally known to the public and which has been or is hereafter disclosed or made available directly or indirectly to Consultant through any means of communication, either verbally or in writing even if it has not been designated in writing as “Confidential” to Consultant in connection with this Agreement. Unless otherwise required by law, Consultant shall not, without City’s written permission, use or disclose City Data and/or Confidential Information other than in the performance of the obligations under this Agreement. As between Consultant and City, all City Confidential Information shall remain the property of the City. Consultant shall not acquire ownership interest in the City’s Confidential Information. b. Consultant shall be responsible for ensuring and maintaining the security and confidentiality of City Data and Confidential Information, protect against any anticipated threats or hazards to the security or integrity of City Data and Confidential Information, protect against unauthorized access to or use of City Data and Confidential Information that could result in substantial harm or inconvenience to City or any end users; and ensure the proper return and/or disposal of City Data and Confidential Information upon termination of this Agreement with notice to the City.
c. Consultant shall take appropriate action to address any incident of unauthorized access to City Data and Confidential Information, including addressing and/or remedying the issue that resulted in such unauthorized access, notifying City as soon as possible of any incident of unauthorized access to City Data and Confidential Information, or any other breach in Consultant’s security that materially affects City or end users; and be responsible for ensuring compliance by its officers, employees, agents, and subcontractors with the confidentiality provisions hereof. Should confidential and/or legally protected City Data be divulged to unauthorized third parties, Consultant shall comply with all applicable federal and state laws and regulations, including but not limited to California Civil Code sections 1798.29 and 1798.82 at Consultant’s sole expense.
Consultant shall not charge City for any expenses associated with Consultant’s compliance with these obligations.
d. Consultant shall defend, indemnify and hold harmless City, its officials, officers, employees and agents against any claim, liability, loss, injury or damage (including attorneys’ fee and costs) arising out of, or in connection with, the unauthorized use, access, and/or disclosure of City Data and/or Confidential Information by Consultant and/or its agents, employees or subcontractors, excepting only loss, injury or damage caused by the sole negligence or willful misconduct of the City. This provision shall survive the termination or expiration of this Agreement.
11. Consultant's Records/Audits. Consultant shall maintain accurate accounting records and other written documentation pertaining to the costs incurred relating to this Agreement for examination and audit by the City,
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State, or federal government, as applicable, in compliance with Gov. Code §8546.7 for a contract in excess of $10,000, or in compliance with other applicable federal laws (e.g. 48 CFR 31) or regulations for a period of three (3) years from: the date of the final City payment for Consultant's services, or from the date of final disposition of real property or equipment acquired with federal funds, or date of the termination of this Agreement, whichever is later. If Consultant engages a subcontractor to perform work related to this Agreement with a cost of $10,000 or more over a 12-month period, such subcontract shall contain these same requirements. This provision shall survive the termination of this Agreement.
12. California Public Records Act. City is a public agency subject to the disclosure requirements of the California Public Records Act (“CPRA”). If Consultant’s proprietary information is contained in documents or information submitted to City, and Consultant claims that such information falls within one or more CPRA exemptions, Consultant must clearly mark such information “Confidential and Proprietary,” and identify the specific lines containing the information. In the event of a request for such information, City will make best efforts to provide notice to Consultant prior to such disclosure. If Consultant contends that any documents are exempt from the CPRA and wishes to prevent disclosure, it is required to obtain a protective order, injunctive relief, or other appropriate remedy from a court of law in Santa Cruz County before the City is required to respond to the CPRA request. If Consultant fails to obtain such remedy within the time the City is required to respond to the CPRA request, City may disclose the requested information without any liability. Consultant further agrees that it shall defend, indemnify and hold City harmless against any claim, action or litigation (including but not limited to all judgments, costs, and attorney’s fees) that may result from denial by City of a CPRA request for information arising from any representation, or any action (or inaction), by the Consultant.
13. Compliance with Laws. All activities of Consultant, its employees, subcontractors and/or agents will be carried out in compliance with all applicable federal, state, and local laws and regulations. Consultant further agrees to comply with the covenant of good faith and fair dealing and other provisions of Santa Cruz Municipal Ordinance chapter 3.09, or otherwise Consultant may be subject to penalties including being declared an irresponsible contractor.
14. Licensure. Consultant agrees that Consultant, its subcontractors and/or agents (if any) has/have complied with all applicable federal, state, and local licensing requirements and agrees to provide proof of a current City of Santa Cruz Business Tax Certificate if:
Consultant, its subcontractor(s) and agent(s) or its business is/are located in the City of Santa Cruz; Will perform actual work in the City of Santa Cruz for 6 or more days annually; or Will use company vehicles to deliver within the City of Santa Cruz for 6 or more days annually.
For additional information and licensing requirements, view the City’s Business Licenses and Permits webpage or call the Revenue and Taxation division at 831/420-5070.
15. Living Wage. Every contract for services to the City for $10,000 or more, is subject to City of Santa Cruz Living Wage Ordinance number 2000-25. If applicable, Consultant agrees to comply with the requirements of the Living Wage ordinance as provided in Santa Cruz Municipal Code Chapter 5.10.
16. Prevailing Wages for Public Work. To the extent that the work or services to be performed under this Agreement may be considered a “public work” (construction, alteration, demolition, or repair work) pursuant and subject to Labor Code section 1720 et seq., Consultant (and any subconsultant performing the work or services) shall conform to any and all prevailing wage requirements applicable to such work/and or services under this Agreement. Consultant (and any subconsultant) shall adhere to the prevailing wage determinations made by the Director of Industrial Relations (DIR) pursuant to California Labor Code Part 7, Chapter 1, Article 2, applicable to the work, if any. All workers employed in the execution of a public works contract (as such term is defined California Labor Code section 1720 et seq. and section 1782(d)(1)) must be paid not less than the specified prevailing wage rates for the type of work performed. (CA Labor Code sections 1720, 1774 and 1782.)
13.11 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0265 January 2026 (Form Rev.03/25 ) Page 9
To the extent applicable to the scope of work and services under this Agreement, Consultant agrees to be bound by the state prevailing wage requirements, including, but not limited to, the following:
a. If a worker is paid less than the applicable prevailing wage rate owed for a calendar day (or any portion thereof), Consultant shall pay the worker the difference between the prevailing wage rate and the amount actually paid for each calendar day (or portion thereof) for which the worker(s) was paid less than the prevailing wage rate, as specified in Labor Code section 1775; b. Consultant shall maintain and make available payroll and worker records in accordance with Labor Code sections 1776 and 1812;
c. If Consultant employs (and/or is legally required to employ) apprentices in performing the work and/or services under this Agreement, Consultant shall ensure compliance with Labor Code section 1777.5; d. Consultant is aware of the limitations imposed on overtime work by Labor Code sections 1810 et seq. and shall be responsible for any penalties levied in accordance with Labor Code section 1813 for failing to pay required overtime wages;
e. Consultant shall post a copy of the applicable wage rates at each jobsite at a location readily available to its workers.
f. Any failure of Consultant and/or its subconsultant to comply with the above requirements relating to a public work project shall constitute a breach of this Agreement that excuses the City’s performance of this Agreement at the City’s sole and absolute option and shall be at the sole risk of Consultant. Consultant on behalf of itself and any subconsultant, agree to indemnify, defend and hold harmless the City and its officials, officers, employees, and agents from and against any and all claims, liabilities, losses, costs, expenses, attorney’s fees, damages, expenses, fines, financial consequences, interest, and penalties, of any kind or nature, arising from or relating to any failure (or alleged failure) of the Consultant and any subconsultant to pay prevailing wages or to otherwise comply with the requirements of prevailing wage law relating to a public work.
g. Consultant acknowledges that it and/or any subconsultant may not engage in the performance of any contract for public work unless currently registered with the DIR and qualified to perform public work pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].
17. Storm Water Requirements. To the extent applicable to the Scope of Work under this Agreement, Consultant, Consultant’s employees, subcontractors, and agents are required to abide by the applicable City of Santa Cruz Storm Water Best Management Practices (BMPs) for the duration of the work. The City’s mandatory Storm Water BMPs, which are listed according to the type of work, operations, or business, are located on the City website at: https://www.santacruzca.gov/Government/City-Departments/Public-Works/Stormwater/City-ofSanta-Cruz-Storm-Water-Management-Plan
18. Dispute Resolution. The Parties agree to attempt in good faith to resolve through negotiation any dispute, claim or controversy arising out of or relating to this Agreement. Either party may initiate negotiations by providing written notice in letter form to the other party, setting forth the subject of the dispute and the relief requested.
Promptly upon such notification, the Parties shall meet at a mutually agreeable time and place in order to exchange relevant information and perspective, and to attempt to resolve the dispute. In the event that no resolution is achieved, and if, but only if, the parties mutually agree, then prior to pursuing formal legal action, the parties shall make a good faith effort to resolve the dispute by non-binding mediation or negotiations
13.12 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0265 January 2026 (Form Rev.03/25 ) Page 10
between representatives with decision-making power, who, to the extent possible, shall not have had substantive involvement in the matters of the dispute. To the extent that the dispute involves or relates to a public works project, the Parties agree to attempt to resolve the dispute by complying with the claims process as set forth in Public Contract Code sections 9204(e), 20104-20104.6, but without waiving the requirements of the California Tort Claims Act, Gov’t Code section 800 et seq. unless otherwise agreed to by the Parties.
19. Force Majeure. Neither party hereto shall be considered in default in the performance of its obligation hereunder to the extent that the performance of any such obligation is prevented or delayed by an act of God, natural disaster, pandemic, acts of terrorism, war, a strike, lockout or other labor difficulty, or other peril, which is beyond the reasonable control of the affected party and without the negligence of the respective Parties. Each party hereto shall give notice promptly to the other of the nature and extent of any Force Majeure claimed to delay, hinder or prevent performance of the services under this Agreement. Each Party will, however, make all reasonable efforts to remove or eliminate such a cause of delay or default and will, upon the cessation of the cause, diligently pursue performance of its obligations in this Agreement. In the event either party is prevented or delayed in the performance of its respective obligation by reason of such Force Majeure, the only remedy is that there may be an equitable adjustment of the schedule based on City’s sole discretion.
20. Complete Agreement. This Agreement, along with any attachments, is the full and complete integration of the Parties’ agreement with respect to the matters addressed herein, and that this Agreement supersedes any previous written or oral agreements between the Parties with respect to the matters addressed herein. Unless otherwise stated, to the extent there is any conflict between this Agreement and any other agreement (written or oral), the terms of this Agreement shall control.
21. Severability. The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the other provisions unenforceable, invalid or illegal.
22. Waiver. Waiver by any party of any portion of this Agreement shall not constitute a waiver of the same or any other portion hereof.
23. Governing Law. This Agreement shall be governed by and interpreted in accordance with California law.
24. Contract Interpretation. Each party acknowledges that it has reviewed this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement.
25. MacBride Principles/Peace Charter. City of Santa Cruz Resolution NS-19,378 (7/24/90) encourages all companies doing business in Northern Ireland to abide by the MacBride Principles and Peace Charter.
26. Notices. If either party shall desire or is required to give notice to the other, such notice shall be given in writing, via email, and concurrently delivered by: (a) personal delivery, in which case notice is effective upon delivery; (b) overnight courier (i.e., Federal Express) with charges prepaid or charged to the sender’s account, in which case notice is effective when delivered; (c) priority U.S. Mail, in which case notice shall be deemed delivered on the second business day after the deposit thereof with the U.S. Postal Service. Notices shall be addressed to recipient as follows:
To CITY:
Economic Development Office
Jessie Bristow
337 Locust St. SC 95060
[email protected]
To CONSULTANT:
Business Name
Consultant Contact Name
Address
Email/Phone
13.13 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0265 January 2026 (Form Rev.03/25 ) Page 11
The Parties must provide notice of any changes to the above information in writing at least ten (10) business days before the change is effective.
27. Counterparts. The Parties may execute this Agreement in two or more counterparts, which shall, in the aggregate, be deemed an original but all of which, together, shall constitute one and the same instrument. A scanned, electronic, facsimile or other copy of a party’s signature shall be accepted and valid as an original.
28. Warranty of Authority. The signatories to this Agreement warrant and represent that each is authorized to execute this Agreement and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this Agreement. [SIGNATURES ON FOLLOWING PAGE]
Approved As To Form:
By: ______________________________ Date: __________________ Office of the City Attorney
CITY OF SANTA CRUZ
By: ______________________________ Date: __________________ Matt Huffaker
City Manager
CONSULTANT
By: ______________________________ Date: __________________ Printed: ___________________________ Title: __________________ By: ______________________________ Date: __________________ Printed: ___________________________ Title: __________________
13.14 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0265 January 2026 (Form Rev.03/25 ) Page 12
EXHIBIT A: SCOPE OF WORK
PROJECT SANTA CRUZ SUBSTANCE USE DISORDER NAVIGATION CENTER RFP NO. EDH-0265
SUBJECT PRELIMINARY WORK PLAN
INTRODUCTION
NJA Architecture understands the importance of aligning with Substance Use Disorder Navigation Center and the City of Santa Cruz’s mission to deliver accessible, dignified, and community-integrated behavioral health and residential treatment facilities. Our team is committed to a process grounded in transparency, responsiveness, and collaboration, ensuring all project objectives—including ASAM-aligned program requirements, trauma-informed design standards, and grant budget constraints—are met with precision and care.
TASK 1 PROJECT MANAGEMENT
To manage day-to-day design activities, Victor Raya will serve as City of Santa Cruz’s dedicated point of contact. The Project Manager will lead all internal and consultant coordination, maintain schedule and budget alignment, track deliverables, and facilitate consistent communication through structured meetings, milestone reviews, and digital collaboration platforms. Our goal is a clear, predictable, and highly responsive design process from kickoff through construction administration.
The following work plan reflects the City of Santa Cruz’s stated goals, service requirements, and project parameters— including the need for trauma-informed design, sustainability, regulatory compliance, and construction documents suitable for competitive bidding. Each phase incorporates decision checkpoints, alignment meetings, and well-defined deliverables to support a streamlined path to completion.
Additional project-specific considerations integrated into our approach:
Alignment with BHCIP funding requirements and budget realism. Integration of SUD treatment needs across ASAM Levels 3.1, 3.2-WM, and 3.5. Coordination with Housing Matters and County Health Services partners regarding trauma-informed operations. Consideration for environmental remediation, site constraints, and new zoning overlay updates. Design-Bid-Build requirements and the City’s expectation for a permit-ready set.
13.15 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0265 January 2026 (Form Rev.03/25 ) Page 13
TASK 2 PROGRAMMING
Staff & Stakeholder Engagement
We will begin with a structured kickoff workshop involving City staff, County Behavioral Health partners, Housing Matters, and key service providers. This session establishes project goals, expectations, operational needs, treatment model parameters, and project success criteria. It also confirms communication protocols and schedule milestones.
Site Assessment & Feasibility Review
NJA will conduct a detailed assessment of the Coral Street site, reviewing:
Site access, parking needs, and circulation requirements Infrastructure capacity and preliminary utility routing Zoning, height limits, building envelope constraints, and the City’s overlay updates Environmental considerations indicated in existing Phase I/II studies Opportunities for maximizing residential capacity within ASAM treatment requirements This review confirms feasibility and identifies constraints early, reducing risk later in the project.
Program Confirmation & Recommendations:
Using Santa Cruz’s program as the foundation, NJA will validate space needs, unit counts, ASAM level requirements, staffing needs, security and access protocols, and adjacencies. Recommendations will be provided where adjustments improve operational flow, trauma-informed care, or constructability.
Design Concepts:
NJA will provide multiple design options for the client to review and comment. Goals will match the research and data collected in previous stages noted above.
Santa Cruz Review:
We will present all concepts and stakeholders for evaluation, refinement, and recommendation of a preferred scheme.
Revisions will be made based on collective feedback, and a refined concept will advance into Schematic Design.
Deliverables:
Kickoff meeting summary
Site assessment
Preliminary project schedule
Program summary matrix
Conceptual diagrams
TASK 3: SCHEMATIC DESIGN
NJA will transform the approved concept into a full Schematic Design package, integrating site planning, floor plans, building massing, circulation, treatment spaces, residential units, support services, and trauma-informed outdoor environments.
13.16 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0265 January 2026 (Form Rev.03/25 ) Page 14
Cost Estimate:
Our team will engage engineering partners to outline building systems and provide a schematic-level cost estimate. This review ensures alignment with the City’s BHCIP-supported budget and informs any required value-based adjustments.
Santa Cruz Review:
A milestone meeting will present schematic drawings, updated program mapping, and cost analysis to the City for feedback and approval. Adjustments will align scope, budget, and treatment needs.
Deliverables:
Site and Floor Plans
Building Massing and Layout Studies
Stakeholder Feedback Summary
Presentation Renderings + Diagrams
Final Deliverable: Schematic Design Package
TASK 4: DESIGN DEVELOPMENT
NJA will refine the approved schematic design into a coordinated, detailed framework that integrates all disciplines—civil, structural, mechanical, electrical, plumbing, and environmental considerations.
Technical Refinement Includes:
Detailed floor plans, elevations, and interior layouts Preliminary finish selections and outline specifications Engineering systems development
ADA and accessibility review
Circulation and security pathway refinement
Updated integration of trauma-informed design, sustainability, and modular strategies
13.17 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0265 January 2026 (Form Rev.03/25 ) Page 15
Cost Estimate:
A second cost estimate will evaluate the DD-level development and ensure consistency with the $30M BHCIP budget.
Adjustments will be recommended only as needed to maintain program integrity and financial feasibility.
Santa Cruz Review:
A formal milestone review will ensure the City approves all refinements before advancing to Construction Documents.
Deliverables:
Refined floor plans, site plans, elevations, and interior layouts Interior layouts and outline specifications
Coordinated building systems overview
Updated cost estimate
Final Deliverable: Design Development Package
TASKS 5-6: DOCUMENTS AND PERMITS
NJA will produce a fully coordinated and permit-ready Construction Document set aligned with the City’s Design-Bid-Build process.
Throughout this phase, we will conduct regular progress meetings to share updates and confirm design decisions. Our internal QA/QC reviews will help identify issues early, reduce plan check comments, and ensure smooth permit review.
Cost Estimate:
NJA will produce estimation of costs for construction at 60% and 90% CD’s to ensure the design aligns with budgetary constraints.
Santa Cruz Review:
Throughout CDs, NJA will facilitate milestone meetings of draft plans, specs, and construction estimates, at 60% and 90% completion. This will ensure the City remains informed and up to date on progress.
Deliverables:
60%, 90%, and 100% Construction Drawings
Bid Package Documents + Cost Estimates
Final Deliverable: Full Construction Document Set for Bidding & Permitting Specifications
13.18 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0265 January 2026 (Form Rev.03/25 ) Page 16
TASK 7: BIDDING
Bid Document Preparation
Prepare final construction documents (plans and specifications) in formats suitable for public bidding and contractor use, in accordance with the City’s procurement procedures. Develop alternates for transparent cost control flexibility.
Pre-Bid Meeting Assistance
Assist City staff in facilitating a pre-bid meeting and walkthrough at the project site, ensuring that potential bidders fully understand the scope of work and site-specific constraints. We will be available to present design intent and answer technical questions from bidders.
Bid Evaluation Support:
Assist City staff with review of submitted bids, including identifying any irregularities, evaluating compliance with design intent.
TASK 8: CONSTRUCTION ADMINISTRATION
During construction, our team will actively support the City to ensure that the project is executed according to the approved design, meets quality standards, and complies with funding and permitting requirements.
Construction Observation and Site Visits:
Regular site visits are an integral part of our construction administration process. NJA Architecture will visit the construction site on a routine basis to monitor progress, verify that the work aligns with the design documents, and address any on-site issues in real-time. This includes responding to RFI’s, reviewing material and equipment submittal, evaluating change orders, addressing unforeseen circumstances, and implementing necessary adjustments to keep the project on track. These site visits provide a direct connection between the design team and the construction team.
Project Completion & Closeout:
Conduct substantial completion inspections and generate punch lists identifying required corrections. Upon final completion, we will assist the City in verifying that all work has been completed to specification and coordinate collection of closeout submittals, including warranties, manuals, and as-built drawings.
Support construction documentation and funding requirement compliance.
Deliverables:
Pre-Construction Coordination Notes
Submittal Review Logs + Approvals
RFI Responses + Documentation
Field Observation Reports
TASK 9: CLOSEOUT
13.19 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0265 January 2026 (Form Rev.03/25 ) Page 17
NJA will provide comprehensive closeout support for the City of Santa Cruz SUD Facility, including coordination of final inspections and agency approvals, resolution of punch list items, review of as built drawings and O&M manuals, and support through certificate of occupancy. Our team will facilitate owner training, warranty documentation, and record document delivery to ensure a smooth transition from construction to full facility operations.
Deliverables:
Punch List Report
Deliverable: Closeout Docs and Record Set
BHCIP Close out requirements
13.20 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0265 January 2026 (Form Rev.03/25 ) Page 18
EXHIBIT B: FEE SCHEDULE
Description Fee
CONTRACT BUDGET
Task 1 Project Management $32,400
Task 2 Program Verification (2 in-person visits) $33,200 Task 3 Schematic Design (2 in-person visits) $197,800
Task 4 Design Development (3 in-person visits) $257,700 Task 5 Construction Documents (4 in-person visits) $390,400 Task 6 Permitting (1 in-person visit) $60,700
Task 7 Bid Support, NTE (1 in-person visit) $25,000
Task 8 Construction Admin, NTE (15 in-person visits) $196,200 Task 9 Closeout NTE $25,300
TOTAL $1,218,700
OPTIONAL ADDITIONAL SERVICES
Boundary Survey $9,610
Topographic Survey $14,890
SWPPP $6,170
QSD Inspections, BMP 5 Visual $9,610
All Earth: Exploration, Testing, Reporting $21,060
ADDITIONAL ALTERNATIVE Subtotal $61,340
Total $1,280,040
13.21 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0265 January 2026 (Form Rev.03/25 ) Page 19
EXHIBIT C: WORK SCHEDULE
EXHIBIT D: INSURANCE REQUIREMENTS
13.22 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0265 January 2026 (Form Rev.03/25 ) Page 20
Consultant shall procure and maintain insurance against claims for injuries to persons or damages to property and otherwise which may arise from or in connection with the performance of the work under this Agreement and the results of that work by Consultant, its agents, representatives, employees, or subcontractors.
A. CERTIFICATE REQUIREMENTS
The City will be issued a Certificate of Insurance (a Memorandum of Understanding will not be accepted) with the following minimum requirements:
Certificate(s) will show current policy number(s) and effective dates, Coverage and policy limits will meet, or exceed, requirements below, The Certificate Holder will be City of Santa Cruz, Risk Management, 1200 Pacific Ave., Suite 290, Santa Cruz, CA 95060,
Certificate will be signed by an authorized representative, An endorsement, if required below, will be provided to show the City, its officers, officials, employees, and volunteers as additional insureds, and
Coverages must be maintained during the term of the Agreement with the City, unless a longer duration is required as specified below.
B. MINIMUM SCOPE AND LIMITS OF INSURANCE
Consultant acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. If Consultant maintains broader insurance coverage and/or higher limits than the minimums shown below, the City of Santa Cruz requires and shall be entitled to the broader insurance coverage and/or higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Santa Cruz.
Coverage will be at least as broad as:
COMMERCIAL GENERAL LIABILITY (CGL): $1,000,000 PER OCCURRENCE; $2,000,000 AGGREGATE Proof of coverage for $1 Million per occurrence and $2 Million in the aggregate including products and completed operations, property damage, bodily injury, personal and advertising injury will be provided on Insurance Services Office (ISO) Form CG 00 01 covering CGL. PROFESSIONAL LIABILITY (ERRORS AND OMISSIONS): $2,000,000 PER OCCURRENCE OR CLAIM, $4,000,000 AGGREGATE.
Consultant will maintain insurance appropriate to Consultant’s profession; with limit no less than $2,000,000 per occurrence or claim, $4,000,000 aggregate. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after date of completion of the services under this Agreement. If coverage is canceled or non-renewed and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date or start of work date, Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of the contract of work.
AUTOMOBILE LIABILITY:
Proof of coverage for $1,000,000 provided on ISO Form Number CA 00 01 covering any auto (Code 1), or if Consultant has no owned autos, hired, (Code 8) and non-owned autos (Code 9), per accident for bodily injury and property damage.
WORKERS’ COMPENSATION AS REQUIRED BY THE STATE OF CALIFORNIA, WITH STATUTORY LIMITS, AND EMPLOYER’S LIABILITY INSURANCE: $1,000,000 per accident for bodily injury or disease.
The Worker’s Compensation policy must be endorsed with a waiver of subrogation in favor of the City for all work performed by the Consultant and its employees.
13.23 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0265 January 2026 (Form Rev.03/25 ) Page 21
(Not required if Consultant provides written verification it has no employees) - If Consultant has no employees, Consultant shall complete and sign a Workers’ Compensation Exemption Declaration and Release of Liability.
C. OTHER INSURANCE PROVISIONS
The insurance policies are to comply with the following provisions:
ADDITIONAL INSURED STATUS
The City, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of Consultant including materials, parts, or equipment furnished in connection with such work or operations, products and completed operations. General liability coverage will be provided in the form of an endorsement to Consultant’s insurance at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 (if a later edition is used).
PRIMARY COVERAGE
For any claims related to this Agreement, Consultant’s and all subcontractor’s insurance coverage will be primary and non-contributory as respects the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents, or volunteers will be excess of Consultant’s and all subcontractor’s insurance and will not contribute with it.
NOTICE OF CANCELLATION
Each insurance policy required above shall state that the coverage shall not be canceled, except with notice to the City.
WAIVER OF SUBROGATION
Consultant hereby grants to the City a waiver of any right to subrogation, except as otherwise not applicable, which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss, including attorney’s fees under such insurance. Consultant agrees to obtain any endorsement that may be necessary to effectuate this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. EXCESS LIABILITY/UMBRELLA INSURANCE POLICIES
Consultant may use excess liability/umbrella policies to meet the required liability limits on the condition that they provide all of the insurance coverages required herein, including, but not limited to, primary and non-contributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements. The excess liability/umbrella insurance policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying CGL insurance. No insurance policies maintained by the additional insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Consultant’s primary and excess liability policies are exhausted. DURATION OF COVERAGE
CGL & Excess Liability/Umbrella policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of 5 years for Completed Operations liability coverage. Such Insurance must be maintained, and evidence of insurance must be provided, for at least five (5) years after completion of the contract of work.] SELF-INSURED RETENTIONS (SIR)
13.24 DRAFT City of Santa Cruz Professional Services Agreement for RFP No. EDH-0265 January 2026 (Form Rev.03/25 ) Page 22
Self-insured retentions must be declared to and approved by the City. City may require Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related expenses.
The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.
ACCEPTABILITY OF INSURERS
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A: VII, unless otherwise acceptable to the City.
CLAIMS MADE POLICIES
If any of the required policies provide coverage on a claims-made basis:
1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.
2. Insurance must be maintained, and evidence of insurance must be provided, for at least five (5) years after completion of the contract of work.
3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work. VERIFICATION OF COVERAGE
Consultant will furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to be approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning will not waive the Consultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
D. SUBCONTRACTORS
Consultant shall include their subcontractor(s) as additional insured(s) under the policies or shall furnish separate certificates and endorsements for each contractor and subcontractor. Consultant shall require and verify that all contractors and subcontractors maintain insurance meeting all the requirements stated herein, and Consultant shall ensure that City, its officers, officials, employees, agents, and volunteers are named as additional insureds on insurance required from its contractor(s) and subcontractor(s).
E. SPECIAL RISKS/CIRCUMSTANCES
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances and provide notice to Consultant.
13.25 City Council
AGENDA REPORT
DATE: 02/05/2026
AGENDA OF: 02/24/2026
DEPARTMENT: Economic Development
SUBJECT: Resolution Establishing the 2026 Security Deposit Interest Rate for Residential Rental Property (ED)
LOCATION: Citywide
RECOMMENDATION: Motion to adopt a resolution establishing the 2026 interest rate for the residential security deposits at 0.02% and rescinding Resolution No. NS-30,444.
BACKGROUND: Santa Cruz Municipal Code (SCMC) Chapter 21.02 requires that residential renters be paid interest on any security deposit totaling more than fifty dollars ($50.00) held by the landlord. The section further stipulates that the Santa Cruz County Treasurer-Tax Collector annually sets a recommended interest rate for security deposits, which is then adopted by the Santa Cruz County Board of Supervisors. The City Council, by resolution, then adopts that security deposit interest rate for the following year in order to maintain consistency with other jurisdictions within the County.
In early 2013, the City Council amended SCMC Section 21.02.040 to include a subsection permitting landlords to pay tenants’ security deposit interest at the earlier of the following: 1) the termination of tenancy or 2) at the February after accrued interest reaches fifty dollars ($50.00).
In the case that the termination of tenancy occurs before accrued interest reaches fifty dollars, the tenant shall be entitled to a direct payment of the accrued security deposit interest no later than twenty-one (21) days after the tenant has vacated the premises. In the case that the accrued interest reaches fifty dollars ($50.00) before the termination of tenancy, the landlord shall, without demand, pay the tenant the accrued security deposit interest in the form of either a draft payment or a credit against the tenant’s rent (the landlord shall choose between the two methods of payment).
DISCUSSION: In December 2025, the Santa Cruz County Treasurer-Tax Collector conducted a survey of interest paid on savings accounts under $5,000 by six major banking and savings and loan institutions in order to establish the recommended interest rate to be paid on security deposits in 2026. The average interest rate was determined to be 0.02%. The County Board of Supervisors subsequently adopted Resolution No. 243-2025 on December 16, 2025, setting the interest rate at that level effective January 1, 2026.
14.1 In accordance with past practices, it is recommended that the 2026 interest rate with the City of Santa Cruz be adjusted retroactive to January 1, 2026, to 0.02%.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: This item does not require CEQA review.
HEALTH IN ALL POLICIES (HiAP): In terms of assessing this item with respect to the three pillars of Health in All Policies, this action has a direct nexus with equity in that all households renting residential units in the City, including disadvantaged community members, that may be required to provide a security deposit of more than fifty dollars ($50.00) as part of their lease are covered under this section of the municipal code and are entitled to interest on their security deposit as outlined in the code. This resolution will enable the City to provide residential landlords and tenants citywide with the information regarding the current interest rate.
FISCAL IMPACT:
1. The recommendation in this report impacts the General Fund: No
2. This recommendation requires a budget adjustment: No
3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: No impact.
Prepared By:
Andrea Inouye
Principal Management
Analyst
Jessica de Wit
Housing and Community
Development Manager
Submitted By:
Bonnie Lipscomb
Deputy City Manager
Approved By:
Matt Huffaker
City Manager
ATTACHMENTS:
1. RESOLUTION ESTABLISHING 2026 SECURITY DEPOSIT INTEREST RATE.DOCX
14.2 RESOLUTION NO. NS-XX,XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ
ESTABLISHING THE INTEREST RATE FOR RESIDENTIAL SECURITY DEPOSITS AT 0.02% FOR 2026 AND RESCINDING RESOLUTION NO. NS-30,444 WHEREAS, the City of Santa Cruz adopted Ordinance 97-10 on December 9, 1997, amending Chapter 21.02 of the Santa Cruz Municipal Code in order to facilitate uniform regulations throughout the County of Santa Cruz for the payment of interest on residential security deposits; and
WHEREAS, Section 21.02.010 requires that the interest rate payable by landlords to tenants on residential security deposits be established from time to time by resolution based on the recommendation of the Santa Cruz County Treasurer-Tax Collector; and WHEREAS, the current rate of interest is 0.01%; and
WHEREAS, in December 2025 the County Treasurer-Tax Collector determined that the average interest rate to be charged in 2026 would be 0.02%, which was duly adopted by the Santa Cruz County Board of Supervisors on December 16, 2025.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz as follows: that it hereby rescinds Resolution No. NS-30,444 and establishes the interest rate for residential security deposits at 0.02% retroactive to January 1, 2026.
PASSED AND ADOPTED this 24th day of February 2026, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
14.3 City Council
AGENDA REPORT
DATE: 02/05/2026
AGENDA OF: 02/24/2026
DEPARTMENT: Finance
SUBJECT: Liability Claims Filed Against the City of Santa Cruz (FN) RECOMMENDATION: Motion to reject the liability claims of 1) Alan J. Mac, 2) James Morrissey, 3) Angelo Jason Mirizzi Kaplan, 4) Michael Benjamin Ruder, 5) David W. Turner, and 6) Michael Deuschel based on staff recommendation.
BACKGROUND: N/A
DISCUSSION: Claims to be rejected:
1. Claimant: Alan J. Mac
Date of occurrence: 1/8/2026
Date of claim: 1/14/2026
Amount of claim: $469.00
Claimant seeks reimbursement for vehicle tire damage allegedly caused by a pothole.
Self-Represented
2. Claimant: James Morrissey
Date of occurrence: 7/21/2025
Date of claim: 1/20/2026
Amount of claim: $50,000,000.00
Claimant seeks reimbursement for injuries and damages allegedly sustained when a city vehicle collided with his vehicle.
Represented by Legal Counsel
15.1 3. Claimant: Angelo Jason Mirizzi Kaplan
Date of occurrence: 12/4/2025
Date of claim: 1/21/2026
Amount of claim: $24,400.00
Claimant seeks reimbursement for damage to his plumbing allegedly caused by City water main replacement.
Self-Represented
4. Claimant: Michael Benjamin Ruder
Date of occurrence: 11/19/2025
Date of claim: 1/16/2026
Amount of claim: $2,236.00
Claimant seeks reimbursement for plumbing repair caused by City sewer main backup.
Self-Represented
5. Claimant: David W. Turner
Date of occurrence: 1/30/2026
Date of claim: 2/2/2026
Amount of claim: Not Specified
Claimant seeks damages related to alleged violations of his civil rights and illegally citing him for an oversized vehicle.
Self-Represented
6. Claimant: Michael Deuschel
Date of occurrence: 2/2/2026
Date of claim: 2/3/2026
Amount of claim: Not Specified
Claimant seeks damages related to alleged violations of his civil rights.
Self-Represented
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: N/A HEALTH IN ALL POLICIES (HiAP): N/A
FISCAL IMPACT:
1. The recommendation in this report impacts the General Fund: No
2. This recommendation requires a budget adjustment: No
3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: No fiscal impact.
15.2 Prepared By:
Ross Brandon
Risk & Safety Manager
Submitted By:
Elizabeth Cabell
Finance Director
Approved By:
Matt Huffaker
City Manager
ATTACHMENTS:
None.
15.3 City Council
AGENDA REPORT
DATE: 01/30/2026
AGENDA OF: 02/24/2026
DEPARTMENT: Parks and Recreation
SUBJECT: Puerto Escondido, Oaxaca, Mexico Friendship City Status (PR) LOCATION: Citywide
RECOMMENDATION: Motion to approve the adoption of Puerto Escondido, Oaxaca, Mexico as a Friendship City as recommended and resolved by the Sister Cities Committee.
BACKGROUND: At their November 24, 2025 meeting, the Sister Cities Committee unanimously passed a resolution approving a Friendship City relationship between City of Santa Cruz, California with Puerto Escondido, Oaxaca, Mexico. Implementation of the Friendship City relationship will commence no sooner than 45-days following the City Council meeting of February 24, 2026, unless the City Council objects establishing the Friendship City relationship.
The City of Santa Cruz has a longstanding tradition of international partnership through its Sister Cities Program, which seeks to promote cross-cultural understanding, economic collaboration, and shared educational opportunities. In alignment with these objectives, the Sister Cities Committee has evaluated potential new relationships with cities exhibiting complementary values and mutual interests. Before a city can become a Sister City of Santa Cruz, it must first be evaluated by the Sister City Committee and become a Friendship City.
Puerto Escondido, located on the Pacific coast of Oaxaca, Mexico, is recognized for its vibrant community, robust tourism sector, and engagement in sustainable development initiatives. The alignment of Puerto Escondido's priorities with those of Santa Cruz makes it an exemplary candidate for the Friendship City program.
This report includes a document detailing the rationale for the proposed Friendship City relationship and the procedural requirements for implementation in accordance with the Friendship City Policy.
DISCUSSION: In November 2025, an official delegation representing the City of Santa Cruz and the Sister Cities Committee conducted a formal site visit to Puerto Escondido. The delegation consisted of committee members and local stakeholders, all tasked with assessing compatibility and potential for a sustained relationship between the two cities.
16.1 During the visit, the delegation engaged in official meetings with the Municipal head of Puerto Escondido, representatives from the local government, and leaders of community organizations and higher education institutions. Key agenda items included explorations of educational exchange programs, lifesaving and ocean safety training, environmental collaboration, arts and culture initiatives, and sustainable tourism projects. The delegation offered tours of prominent local institutions, including educational facilities, cultural centers, and coastal conservation projects, fostering a deeper understanding of the opportunities for partnership.
Feedback from both Santa Cruz and Puerto Escondido officials was overwhelmingly positive.
The site visit concluded with a joint declaration of intent to pursue a formalized relationship, which was subsequently presented to the Sister Cities Committee for evaluation and approval.
Resolution by the Sister Cities Committee
During the November meeting, the Sister Cities Committee evaluated the merits establishing a Friendship City relationship with Puerto Escondido presented in the “Proposal for Sister City Collaboration: Santa Cruz and Puerto Escondido” (attached) and through an oral report presented at the meeting. The Sister Cities Committee conducted a detailed assessment of the strategic, cultural, and educational benefits, and considered public input and correspondence from stakeholders in both cities.
By unanimous vote, the Sister Cities Committee adopted a formal resolution approving the Friendship City relationship, subject to City Council approval. This action was taken in strict accordance with the procedural guidelines articulated in the City of Santa Cruz’s Friendship City Policy, ensuring transparency, public engagement, and alignment with municipal priorities.
This will begin Puerto Escondido’s two-year term as a Friendship City. At any point during that term, the Sister Cities Committee may seek to elevate Puerto Escondido to a Sister City, or it may extend the term by one year to continue its evaluation process.
Assuming the City Council does not object, as outlined below, Puerto Escondido would be the only Friendship City at present.
Implementation Timeline and Council Oversight
Pursuant to the established Friendship City Policy, implementation of the approved relationship is scheduled to commence 45 calendar days from the date of the scheduled City Council meeting of February 24, 2026, unless the City Council objects to its approval at the City Council meeting.
This period serves as a window for additional council review, public comment, and any further due diligence deemed necessary by elected officials.
If no objections are raised within the 45-day period post notification as served by this regularly agendized staff report staff will initiate a coordinated program of introductory activities designed to solidify the partnership. These may include virtual meetings, reciprocal visits, joint cultural events, educational outreach, and collaborative projects in areas of shared interest such as sustainability, youth engagement, and civic innovation.
All actions will be documented and reported to the City Council, ensuring continuous oversight and accountability throughout the implementation process.
16.2 Recommendation
It is the formal recommendation of the Sister Cities Committee that the City Council allow for the Sister Cities Committee resolution supporting the Friendship City relationship with Puerto Escondido to proceed without objection. The committee respectfully requests that City Council members review the details of this report and approve the adoption of the new Friendship City.
F Absent any objections following the 45-day period, the committee will proceed with the implementation of the partnership as outlined above.
Should the Council require additional documentation or wish to schedule a presentation on the findings of the November 2025 site visit, the Sister Cities Committee stands ready to provide further information and support as required.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed Council action is not a “project” under CEQA (Pub. Resources Code, § 21065).
HEALTH IN ALL POLICIES (HiAP): The adoption of Puerto Escondido, Mexico as a Friendship City, through the lens of Health in All Policies (HiAP), will have a significant effect on community outcomes in several ways. Because HiAP emphasizes integrating health considerations into decision-making across all sectors, areas potentially impacted include cultural exchange and social well-being, economic development and equity, environmental and public health, education and youth development, and emergency preparedness and public safety.
Specific projects identified in year-one of the friendship city programs include the development and enhancement of ocean safety awareness programs, as well as ocean lifesaving program exchanges between both cities.
The friendship city partnership with Puerto Escondido offers multifaceted benefits that enhance health and well-being through cultural, economic, environmental, educational, and public safety initiatives. By fostering cultural exchange and social cohesion, these collaborations reduce isolation and promote mental health, while economic ties through tourism and trade support stability and equitable access to opportunities that improve overall health outcomes.
Environmental cooperation, such as sharing best practices on climate resilience, create healthier living spaces. Joint educational programs broaden youth perspectives and encourage healthy behaviors.
FISCAL IMPACT:
1. The recommendation in this report impacts the General Fund: No
2. This recommendation requires a budget adjustment: No
3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: None.
Prepared By:
Tremain Hedden-Jones
Superintendent of Recreation
Submitted By:
Tony Elliot
Director of Parks and
Recreation
Approved By:
Matt Huffaker
City Manager
16.3 ATTACHMENTS:
1. SISTER CITIES RESOLUTION, ADOPTED NOVEMBER 11, 2025.PDF
2. FRIENDSHIP AND SISTER CITY ADOPTION POLICY.PDF
3. PUERTO ESCONDIDO REPORT.PDF
16.4 16.5
16.6 A Policy of the Sister Cities Committee of the City of Santa Cruz 1 Friendship and Sister City Adoption Policy
Sharing experiences and knowledge between the City of Santa Cruz and its Friendship and Sister Cities is a source of mutual enrichment. Successful Friendship and Sister City relationships promote peace and understanding by fostering mutual respect and cooperation between individuals and communities. They enhance the quality of life for citizens of both cities.
The intent of this document is to define the circumstances, criteria, and processes to nominate and adopt Friendship Cities and recommend to the Santa Cruz City Council the adoption of Sister Cities.
Additionally, a process to reconsider existing relationships is outlined.
Mission and Purpose
The City of Santa Cruz desires to establish relationships with towns and localities abroad to provide opportunities to build friendships, learn about other cultures, and foster international understanding. To this end, the City of Santa Cruz has established the Santa Cruz Sister Cities Committee (“Committee”), a volunteer group of ordinary citizens who, with the support of local elected officials and local organizations, form long-term relationships with people and organizations in cities abroad. Through people-to- people relationships, the Committee pursues activities and exchanges in thematic areas that are important to both communities, including municipal, business, trade, educational, and cultural exchanges.
I. Defining Friendship and Sister Cities
A. A Friendship City is a designated relationship, where both cities have the opportunity to explore the potential for becoming Sister Cities. Both cities enter into anagreement to develop and strengthen relationships through a variety of activities, including but not limited to:
• Youth programs/exchanges
• Visitor exchanges
• Cultural and business exchanges
• School affiliations/pen pals (adult & children)
• Humanitarian projects
B. A Sister City relationship is a broad-based, long-term partnership between two communities in two countries. This relationship is officially recognized after the mayor or highest elected official or (or if elections do not take place, the highest appointed official) from both communities sign an agreement. A city can have multiple Sister Cities, with community involvement by volunteers, civic organizations, nonprofits, municipal governments, the private sector, and others. Exchange possibilities are as described above for Friendship Cities.
II. Friendship and Sister City Selection Criteria & Process A. Selection Criteria:
Friendship and Sister Cities should ideally meet three sets of criteria:
• Criteria related to structural similarities associated with compatibility; • Pre-existing or easily developed constituencies; and
• Geographic balance. 16.7
A Policy of the Sister Cities Committee of the City of Santa Cruz Friendship and Sister City Adoption Policy
These criteria are described below.
1. Structural Similarities:
Potential Friendship and Sister Cities should ideally share certain structural commonalities with the City of Santa Cruz to better ensure compatibility and hence the circumstances needed for a long-lived and thriving relationship.
These structural criteria include:
• Population size
• Key industries
• Geographic characteristics
• Institutions of higher learning
• Similar values, such as tolerance and respect for the environment • Similar goals for their Sister Cities program
For the City of Santa Cruz, a comparable city would be a university town of about 60,000 people located near the ocean or other large body of water with a municipal wharf or working harbor and served principally by tourism, technology, and agricultural industries.
While successful relationships are based, in part, on shared experiences that derive from structural similarities, the City of Santa Cruz should not insist on an exact match. In evaluating structural criteria, the Committee should look for cities that share most, or all, of the above criteria.
2. Existing or easily developed constituencies:
The City of Santa Cruz should enter into Friendship and Sister City relationships only with cities for which community support exists or can readily be developed.
Support can take many forms. For example:
• Expatriate and ethnic ties
• Art and cultural relationships and exchanges
• Educational linkages, including alumni ties
• Service organization activities
• Economic and business relationships
• Youth organization activities
In choosing a Friendship or Sister City, the Committee should take cognizance of the number, variety, and depth of relationships between the City of Santa Cruz and that city that already exist and the level of community support in both cities for the relationship. The more existing ties, the stronger the relationship will likely prove to be and the greater the likelihood that relationship will successfully transition to, or be, a Sister City. In the absence of a preexisting base, the potential to develop a broad base of community support can and should be considered. However, given that the Santa Cruz Sister Cities Committee is a volunteer organization, the Committee should give preference to cities which already have local constituencies and community support in both cities. The Committee should avoid entering into Friendship or Sister City relationships with cities where it will be difficult to develop support among the community and the burden of such support will fall primarily on the Committee members.
16.8 A Policy of the Sister Cities Committee of the City of Santa Cruz Friendship and Sister City Adoption Policy
3. Geographic Balance:
The Committee should seek geographic balance for its Friendship Cities. Ideally, selected cities should be spread out across the globe rather than clustered in one geographic region. Currently, the City of Santa Cruz has Sister and Friendship Cities dispersed as follows:
I. North/Central America:
• Jinotepe, Nicaragua
II. South America:
• Puerto la Cruz, Venezuela
III. Europe:
• Sestri Levante, Italy
• Alushta, Crimean Peninsula
• Biarritz, France
IV. Africa:
• None currently
V. Oceania
• None currently
VI. Asia:
• Shingu, Japan
Future Friendship and Sister Cities would ideally be located in South America, Africa, and/or Oceania for geographic balance and a truly global network.
B. Process for Adding a Friendship City:
The Santa Cruz Sister Cities Committee will frequently be faced with requests to establish Sister City relationships with cities abroad. As a rule, the Committee should seek to preserve quality over quantity. Committee members’ time and energy are limited, and should be focused on preserving, deepening, and expanding already existing Sister City and Friendship City relationships. However, excellent matches will come along, and the Committee should be prepared to identify them. The following process will help the Committee do so.
1. Upon receiving a request to establish a Friendship or Sister City relationship, the Committee shall seek a volunteer champion from the Committee membership to actively shepherd the request through the Committee’s process.
The champion will be a volunteer position only—neither the Chair nor the Committee can name a champion who has not volunteered. If such a volunteer is not identified from the Committee membership, the Friendship or Sister City request will not proceed. The Parks and Recreation staff liaison cannot fulfill this responsibility.
2. Requests for establishing Friendship or Sister City relationships may originate from other cities, members of the public, or Committee members.
3. When possible, Santa Cruz and the candidate Friendship/Sister City should exchange delegations or have other social or community exchanges prior to a formal designation in order to explore and determine all initial exchange possibilities.
16.9 A Policy of the Sister Cities Committee of the City of Santa Cruz Friendship and Sister City Adoption Policy
4. Prior to adoption as a Friendship City, the champion will prepare a written report for the Committee to include:
a. A profile of the city under consideration that details the structural characteristics of the city (population size, geographic location, presence of universities, key industries). Moreover, the profile should also detail the languages spoken in the area, give a brief introduction to the structure of the local government, provide a short history of the area, and describe any logistical challenges to travelling to and from the city under consideration.
b. A profile of the existing or likely constituencies for the Friendship City candidate in Santa Cruz.
c. A profile of the existing or likely constituencies in the city under consideration.
d. A description of potential focus areas for activities and exchanges with the Friendship City candidate, including a delineation of those potential activities and exchanges. This section of the report should describe how entering into a Friendship City relationship will benefit both cities. e. Once the report is complete, the champion will request the staff liaison and/or Committee Chair to put the report’s delivery on the next Committee agenda and formally notify the City Council of this proposal. f. At a subsequent Committee meeting, the Committee will vote on whether or not to adopt the candidate city as a Friendship City; provided, that, if the City Council objects to such designation within 45 days of notification, the city will not become a Friendship City.
C. Capacity
1. Ceiling:
There can be a maximum of two (2) Friendship Cities at a time.
2. Length of Friendship City Status:
The default is that Friendship City status runs for a two-year term.
3. Possibility of Extending or Shortening Term:
The Committee at its option may extend the Friendship City status for an additional year or may decide to consider a transition to Sister City status before the completion of a Friendship City term.
4. Informal Relationship:
It is intended that Friendship City status be informal and need not be reported to Sister Cities International.
16.10 A Policy of the Sister Cities Committee of the City of Santa Cruz Friendship and Sister City Adoption Policy
III. Sister City Selection Criteria & Process Selection Criteria Before the conclusion of the Friendship City term, the city may be advanced to candidacy for Sister City status based on the totality of community and Committee support for such advancement and the interest expressed by the Friendship City in becoming a Sister City. It is expected but not required that a city will be a Friendship City prior to adoption as a Sister City and that, in addition to the criteria detailed in Section II, to become a Sister City a city will meet the following additional criterion:
1. At least one bilateral exchange of delegations has occurred after Friendship City status had been granted. That is, a delegation from the friendship city will have visited Santa Cruz, and a delegation from Santa Cruz will have visited the Friendship City, or at least two virtual “visits” or exchanges will have occurred.
2. One or more participating Committee members will have done the following:
a. Presented to the full Committee before a delegation departs or a virtual meeting occurs an outline of what they hope to learn and accomplish from the delegation or exchange.
b. Solicited questions from Committee members to be investigated during the delegation or exchange.
c. Reported their findings to the Committee and made
recommendations.
A. Process:
Based on the above criterion the Committee may consider recommending a city to the City Council for Sister City status. While the city is being considered for Sister City status, its Friendship City status will be automatically renewed until the process is completed.
The process for granting Sister City status is as follows:
1. Prior to the end of any Friendship City term, the chair of the subcommittee for the Friendship City seeking Sister City status will prepare a report, and deliver the report to the staff liaison and/or Committee Chair for provision to the Committee, that informs the members of the Santa Cruz Sister Cities Committee of the current scope of the relationship and its potential for growth. The report will contain at a minimum the following information:
a. A profile of the city under consideration that details the structural characteristics of the city (population size, geographic location, presence of universities, key industries). Moreover, the profile should also detail the languages spoken in the area, give a brief introduction to the structure of thelocal government, provide a short history of the area, and describe any logistical challenges to travelling to and from the city under consideration.
b. A detailed profile of the existing constituencies for the sister city candidate inSanta Cruz. A profile of likely future constituencies should also be provided ifthe subcommittee intends to involve more segments of the community in the relationship.
16.11 A Policy of the Sister Cities Committee of the City of Santa Cruz Friendship and Sister City Adoption Policy
c. A detailed profile of the existing constituencies for making Santa Cruz a sister city in the city under consideration. A profile of likely future constituencies should also be provided if the subcommittee knows of it counterpart’s plans to expand the relationship to other communities in the candidate city or if the subcommittee has plans to reach out to other community groups in the candidate city.
d. A description of the activities and exchanges that have occurred already involving the sister city candidate. This section should not only include a description of the inbound and outbound delegations, but also descriptionsof other activities and exchanges in which the two cities have engaged.
e. A description of the activities and exchanges that are anticipated for the next five years. With regard to exchanges, the five-year plan should provide a realistic description of their type, frequency, and method. f. A description of how a permanent relationship will be of mutual benefit. g. A recommendation for or against Sister City status.
1. At the same time the report is delivered, the chair of the subcommittee will request the staff liaison and/or Committee Chair to put the status of the city on the next Committee agenda.
2. The Committee will hear and discuss the report at the next Committee meeting if possible and may either vote on whether to recommend to the City Council to advance the city to Sister City status, may request further information or may determine to hold such vote at a subsequent Committee meeting.
3. If not previously voted on, at a subsequent committee meeting, the Committee will vote on whether to recommend to the City Council to advance that city to Sister City status.
4. In the event the Committee votes to recommend to the City Council to advance a city to Sister City status, the Committee Chair or subcommittee chair (or other designated Committee member) will notify the City Council of such vote and will be responsible for working with the City Council to advance the candidacy of the city. If the City Council votes in favor of making the City a Sister City, the subcommittee chair (or other designated Committee member) will be responsible for (i) putting in place a formal agreement between the City of Santa Cruz and the Sister City which must be signed by the mayor or other highest elected official (or if no election, the highest appointed official) of both cities and (ii) forwarding such agreement to Sister Cities International.
5. In the event the Committee or the City Council votes not to advance a city to Sister City status, then any Friendship City status will expire at the end of the original term (or earlier if so voted by the Committee) and the city no longer will be a Friendship City. If such Friendship City status has been reported to Sister Cities International, the Chair or subcommittee chair shall notify Sister Cities
16.12 A Policy of the Sister Cities Committee of the City of Santa Cruz Friendship and Sister City Adoption Policy
International of the termination of the Friendship City status.
IV. Active, Inactive, and Emeritus Sister Cities
A. The activity level of our relationships will vary:
While active relationships with all Sister Cities would be ideal, the reality is that some relationships will become dormant. To deal with this situation, the Santa Cruz Sister Cities Committee needs a mechanism for distinguishing between active and inactive relationships. Sister Cities International has such a mechanism: inactive sister cities can be formally transitioned to an emeritus status or Sister City status can be terminated.
B. “Inactive” Status.
For our Committee’s purposes, an intermediate step between active and emeritus is added: “Inactive” status. This step would be an informal inactive status which Sister Cities International would not be informed about. It would be for our Committee’s use only. In practice, the Committee should deem those Sister Cities for which there have been no or very limited interactions for 3 years to be Inactive. The Committee may also deem a city to be Inactive if there are other extenuating circumstances that make Inactive status advisable or necessary. All cities that are deemed Inactive can be managed by one Committee member who will report on the status of the relationship at least once per year or more frequently if significant interactions are restarted or the extenuating circumstances no longer apply. Once made Inactive, a city can return to active status, but until then, they will be less of an administrative burden on the Committee.
C. Website.
In distinguishing between active and Inactive Sister Cities, the Committee’s online presence (City website, Facebook page) can list the active relationships as our Sister Cities and include a section mentioning our Inactive Sister Cities. By doing so, the Committee can identify its active relationships while also ensuring that Inactive cities remain visible to the community for those who might be inspired to help us restore these dormant relationships. The website also may, but is not required to, list cities that are in Friendship City or Emeritus status.
D. Emeritus Status.
Sister Cities for which there have not been any significant interaction for a total of five years, or which have been in Inactive status for at least two years, or if there are other extenuating circumstances that make Emeritus status advisable, can be considered for formal emeritus status. The Committee periodically should evaluate whether to recommend to the City Council to place any Sister City which meets such criteria into Emeritus status.
1. In the event the Committee votes to recommend to the City Council to place a Sister City into Emeritus status, the Committee Chair or subcommittee chair (or other designated Committee member) will notify the City Council of such vote and will be responsible for working with the City Council to place such Sister City into Emeritus status, including obtaining a letter from the mayor or highest elected official of Santa Cruz to the Sister City indicating that Santa Cruz considers the relationship dormant and wishes to change its status to Emeritus. In such case, a copy of such letter will be sent to Sister Cities International to inform of this change in status.
16.13 A Policy of the Sister Cities Committee of the City of Santa Cruz Friendship and Sister City Adoption Policy
2. In the event the Committee or City Council votes not to place such Sister City into Emeritus status, the Sister City will continue to be a Sister City.
E. Re-Evaluation of Emeritus Status.
While a Sister City is in Emeritus status, the Committee periodically may evaluate whether that Sister City should remain in Emeritus status or alternatively should be removed from Emeritus status because either (1) the Committee votes to revive the Sister City relationship or (2) the Committee votes to terminate the Sister Cities status entirely.
1. In the event the Committee votes either to revive or terminate the relationship, the Committee will designate a Committee member to work with the City Council either to revive such relationship or to terminate it respectively, including obtaining a letter from the mayor or highest elected official of Santa Cruz to the Sister City indicating that Santa Cruz wishes to end the emeritus relationship and either revive the Sister City relationship or terminate it respectively. In either event, the Chair or subcommittee chair shall notify Sister Cities International of the revival or termination (if required to so notify) of the Emeritus Sister City status.
2. In the event the Committee or City Council votes not to change a city’s Emeritus status, the city will continue to be an Emeritus Sister City.
Last revised by City Council:
April 26, 2022
March 22, 2016
ATTEST:
X
Tremain Hedden-Jones
Secretary to the Committee
16.14 Proposal for Sister City Collaboration: Santa Cruz & Puerto Escondido
Executive Summary
This proposal presents a comprehensive case for the establishment of a Friendship City relationship between Santa Cruz and Puerto Escondido, located in the state of Oaxaca, Mexico. These coastal cities share significant cultural, environmental, and economic similarities, particularly in areas such as surf culture, welcoming tourists while maintaining a beautiful, safe and healthy environment, and academic research. Recent developments including Puerto Escondido's nomination as a World Surfing Reserve, substantial improvements in travel infrastructure, and increasing interest in academic collaborations underscore the timeliness and potential of this partnership.
I. Strategic Alignment with Sister City Policy Criteria A. Structural Similarities
B. Community Connections
• Santa Cruz: Hosts a vibrant Oaxacan and broader Latin American community, represented through organizations like Senderos. Senderos is a nonprofit that promotes cultural exchange and educational equity by organizing annual events such as the Guelaguetza, a traditional Oaxacan celebration.
Criteria Santa Cruz,
California
Puerto Escondido, Oaxaca
Population
(2025
estimate)
60,541 Approximately 41,000
Coastal
Environment
Pacific Ocean
surf city
Pacific Ocean surf city
Higher
Education
Institutions
University of
California,
Santa Cruz
Universidad del Mar (University of the
Sea)
Key Industries Tourism,
Agriculture,
Higher
Tourism, Agriculture, Hospitality,
Remote Work Opportunities
Community
Values
Environmental
protection,
social inclusion,
cultural
Sustainability, preservation of
indigenous culture, community
resilience,
16.15 • Puerto Escondido: Home to a diverse population of indigenous and mestizo communities. Local cooperatives focus on ecological tourism and traditional arts. Organizations such as Vive Mar are dedicated to marine wildlife conservation, including sea turtle protection programs. Another local nonprofit, Casa Wabi, focusses on forging social development through the arts.
C. Geographic and Diplomatic Significance
• 22.4% of the Santa Cruz population identifies as Hispanic or Latino, and 17.5% identify specifically as Mexican. Our only other active Latin American Sister City is Jinotepe Nicaragua, which is currently at a standstill, while Puerto La Cruz, Venezuela is inactive.
• This partnership will strengthen California-Mexico relations through community-based diplomacy.
• The relationship will foster mutual understanding with a similar rapidly developing coastal city.
II. Economic and Cultural Collaboration Opportunities
1. Sustainable Tourism and Surf Culture Exchange
• Collaborate on strategies for managing seasonal tourism influxes while preserving natural resources.
• Joint development of surf safety and beach stewardship programs.
• Coordinate environmental volunteer initiatives involving local youth, facilitated by nonprofits like Save the Waves Coalition.
2. Artisan and Small Enterprise Development
• Facilitate access for Puerto Escondido artisans to participate in Santa Cruz's retail markets and farmer's markets.
• Host cultural fairs in both cities to promote indigenous crafts, culinary traditions, and local entrepreneurship.
3. Digital Economy and Innovation Partnerships
• Connect Santa Cruz’s startup and technology sectors with Puerto Escondido’s emerging community of remote workers.
16.16 • Support the establishment of co-working spaces and mentorship programs for young digital entrepreneurs.
4. Culinary and Agricultural Exchange
• Create programs to connect organic producers of coffee and mezcal in Puerto Escondido with food entrepreneurs and farmers in Santa Cruz.
• Organize culinary exchanges featuring traditional Oaxacan dishes and Santa Cruz's sustainable food initiatives.
III. Educational and Academic Synergies
A. Formal Academic Partnerships
• The University of California, Santa Cruz and the Universidad del Mar can collaborate on research in marine biodiversity, climate change adaptation, and the development of sustainable tourism models.
• These institutions can co-host field studies, academic symposiums, and student exchange programs with a focus on indigenous knowledge, biodiversity conservation, and socioenvironmental challenges and language.
B. Youth and Cultural Engagement
• Launch bilingual youth programs centered on environmental stewardship and leadership development.
• Implement collaborative arts and media projects, including storytelling and documentary filmmaking, to explore the effects of climate change and community resilience.
• Develop community-based mural initiatives that represent themes of migration, sustainability, and indigenous identity.
IV. Environmental and Coastal Resilience Collaboration
• Build cross-border initiatives to address shared challenges such as coastal erosion and marine habitat degradation.
• Coordinate public education campaigns, data-sharing platforms, and environmental monitoring programs.
16.17 • Establish a joint working group to develop best practices for marine protected areas and coastal adaptation strategies.
V. Travel and Safety
Air Travel Access
• Travelers can access Puerto Escondido from the United States through major airports including San Jose International Airport and San Francisco International Airport.
• Beginning December 3, 2025, American Airlines will offer direct, year-round service from Dallas-Fort Worth International Airport to Puerto Escondido, significantly improving accessibility. • Existing routes via Mexico City or Oaxaca City are now more convenient due to the opening of a new highway that reduces travel time between Oaxaca City and Puerto Escondido to approximately three hours.
Safety Considerations
• Puerto Escondido is considered a relatively safe destination for tourists, with lower rates of violent crime compared to other Mexican tourist areas.
• Travelers are encouraged to follow standard precautions such as avoiding isolated areas at night and staying informed through official travel advisories.
• To facilitate the safe and effective development of a Sister City partnership with Puerto Escondido, it is important to recognize that the U.S. State Department currently assigns Oaxaca State a Level 2 travel advisory, recommending increased caution due to crime. This advisory level or a higher one is in effect across all Mexican states except Yucatán and Campeche, which remain at Level 1. Notably, there are no travel restrictions for U.S. government employees in major tourist areas of Oaxaca,
including Puerto Escondido, Oaxaca City, Monte Alban, and Huatulco. Initial partnership activities are best conducted in lowrisk environments such as cultural festivals or educational forums, while maintaining open communication with local leaders and tourism officials to promote transparency and collaborative safety measures. Continuous monitoring of U.S. State
16.18 Department advisories and local developments will help ensure that all partnership efforts remain responsive to changing conditions.
VI. Implementation Roadmap
Recommended Actions
1. Grant Puerto Escondido official status as a Friendship City of Santa Cruz.
2. Establish a dedicated subcommittee to oversee the development of cultural, academic, and economic exchanges.
3. Engage key institutions such as the University of California, Santa Cruz, Senderos, and the Universidad del Mar to co-design exchange programs.
4. Pursue financial support through private and city resources.
5. Launch a public awareness campaign that includes digital storytelling, youth media productions, and public art exhibitions.
6. Develop a phased three-year plan with specific goals such as cohosted academic forums, community festivals, environmental pilot programs, and lifeguard training. Should the relationship prove successful, move to official Sister City status in two years.
VII. Conclusion
A Sister City relationship between Santa Cruz, California and Puerto Escondido, Oaxaca would represent a powerful alliance between two culturally rich and environmentally conscious coastal communities.
Through collaboration in education, tourism, environmental protection, and economic development, both cities stand to benefit from shared knowledge and mutual support.
16.19 Santa Cruz & Puerto Escondido: Exploring a
New Friendship City
Feb. 24, 2026 16.20
Golfo de
México
Océano Pacífico
Population
Santa Cruz, CA. Puerto Escondido,
Oaxaca.
60,541
* 2025 Est.
41,000
* 2025 Est.
Universities University of the Sea
(UMAR)
UCSC
Key Industries Tourism,
Agriculture, Tech,
Remote Work Hub
Tourism,
Agriculture,
Remote Work Hub
Values Environmentalism,
Diversity,
Inclusion
Sustainability,
Indigenous
preservation
** Known for surfing, biodiversity and culture **
Santa Cruz & Puerto Escondido
16.21 Casa Wabi
Contemporary Art Foundation.
Wabi -Sabi Philosophy: Beauty in imperfection and the
passage of time.
Palmarito Turtle Camp
Conservation Programs:
Protection and monitoring of sea turtles at Palmarito Beach. Noches Oscuras - educational program (light pollution awareness). Marine monitoring of two species in feeding zones.
Responsible ecotourism
Santa Cruz & Puerto Escondido
16.22 UMAR *
Marine Biology Program
Forestry & Ecosystem Restoration Programs.
Computer Science & AI Cluster
Institute of Economic Research
Bachelor Degree in Nursing
Municipal Government
San Pedro Mixtepec
“Sister Waves” Lifeguard Exchange **
“Pacific Fusion ” Surfboard collection
“Olas Hermanas blend ” - Fair trade Coffee & Cocoa project Santa Cruz & Puerto Escondido
16.23 Santa Cruz & Puerto Escondido
16.24 Santa Cruz & Puerto Escondido
16.25 City Council
AGENDA REPORT
DATE: 02/05/2026
AGENDA OF: 02/24/2026
DEPARTMENT: Public Works
SUBJECT: Purchase of Lift Vehicle (PW)
LOCATION: Citywide
RECOMMENDATION: Motion to award a contract for the purchase of a Ford E-Transit T-350 Cargo Van with a LiftUp Aerial Device from Rush Truck Center (Commerce City, CO) in the amount of $127,598.
BACKGROUND: The Fleet Services division of the City of Santa Cruz (City) Public Works Department is responsible for providing pool vehicles for City department use. In 2001, the City purchased vehicle #519, a Ford F550 XL aerial ladder truck, commonly referred to as a “boom truck.” This vehicle was regularly rented as a pool vehicle by numerous City departments.
Before it was retired in 2025 for safety reasons, the vehicle ran over 108,000 miles and 4,000 lift hours after nearly 25 years in service.
There is a continued citywide need for a truck with an aerial lift device. Uses for the truck include changing and maintaining large street signs and other parking signage, building repairs and maintenance, and Wharf repairs and maintenance. In the absence of a working “boom truck,” City departments have had to rent this vehicle from an outside vendor. Within the last 3 years, an electric version of a “boom truck” has come to market. In accordance with the Advanced Clean Fleets Regulations through California Air Resources Board (CARB), Fleet Services has focused upon and researched manufacturers of electric trucks with mounted aerial ladders. Within the last year, Fleet Services staff have attended Clean Fleet tradeshows where they have been able to view electric “boom trucks” in action.
Rush Truck Center offers an electric “boom truck” that consists of a LiftUp Aerial Device mounted to the top of a Ford Transit E-Transit T-350 Cargo Van. A benefit to being mounted on top of a van is that there is no special licensing needed for the driver or operator. The size of the vehicle is comparable to that of a regular cargo van, allowing access to tighter spaces including the levee and alleyways. The inside of the van offers space for tools and equipment that formerly needed to be transported in a separate vehicle to the jobsite and comes equipped with basic storage racks and drawers. The aerial lift offers 38 ft working height, 27 ft side reach, 360-degree visibility and ground access for the operator. Emergency features include emergency stop buttons, a tilt alarm and a tethered platform for emergency decent by the operator. The vehicle
17.1 comes equipped with strobe lights and directional arrows for traffic control and the ladder is powder coated to seal out moisture.
DISCUSSION: Section 3.08.170 of the Municipal Code allows the City to buy from cooperative purchasing agreements when it is in the best interest of the City to do so. There is a partnership between Rush Truck Centers and Sourcewell to provide a competitive bid to the City under contract 032824. Comparable models of electric “boom trucks” located by Fleet staff ranged from $229,000 to $247,000 and are oversized for the City’s needs.
The charging infrastructure needed for this vehicle is already available at the Corporation Yard and basic vehicle maintenance can be handled by City Fleet staff. The vehicle comes with a standard Ford 5-year, 60,000-mile warranty, the battery with an 8-year, 100,000-mile warranty and the aerial lift with a 5 year, 2,000-hour warranty.
Purchasing this electric, zero emission vehicle, as opposed to a standard internal combustion engine vehicle, allows the City to move forward in compliance with State mandated Advanced Clean Fleet Regulations and supports the City’s 2030 Climate Action Plan goal of electrifying the City fleet by 2035.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The purchase of this vehicle is not a “Project” under CEQA. (Public Resources Code § 21065; CEQA Guidelines § 15378(b) – The term “project” does not include continuing “maintenance activities, such as purchases for supplies”.)
HEALTH IN ALL POLICIES (HiAP): This purchase promotes Health in All Policies in that it promotes a healthy environment and health and wellness benefits. This vehicle produces zero vehicle emissions as part of the City’s goal to reduce greenhouse gas emissions on commercial vehicles. Furthermore, this vehicle will be used to repair and maintain City infrastructure so that it may be used safely by pedestrians, bicyclists and community members.
FISCAL IMPACT:
1. The recommendation in this report impacts the General Fund: No
2. This recommendation requires a budget adjustment: No
3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: There are sufficient funds in the Public Works Fleet Fund (Fund 811) for the purchase price of $127,598 for the Ford E-Transit T-350 Cargo Van with a LiftUp Aerial Device and the funds are budgeted for FY 2026. Fund 811 is an internal services account where actual equipment expenditures are charged out to activities in various funds based on usage. Both General and Enterprise fund impacts are based on the usage of the asset at $100/hour for the current fiscal year, and the rental rates will increase each fiscal year.
Prepared By:
Jenna Wilson
Management Analyst
Submitted By:
Nathan Nguyen, P.E.
Director of Public Works
Approved By:
Matt Huffaker
City Manager
ATTACHMENTS:
1. QUOTE.PDF
2. SOURCEWELL CONTRACT #032824.PDF
17.2 Date Prepared: 1/21/2026
Vendor Phone:
Participating Agency:
Agency Phone:
$ 56,175.00
1.50% $ (842.63)
$ 55,332.38
$ -
$ 128,522.00
$ -
$ -
$ (67,954.38)
$ -
$ 11,335.55
$ 325.00
$ 37.00
$ 127,597.55
1 $ 127,597.55
Doc/Admin Fee:
Quote Valid for 30 Days
Ranger FTL-27 Bin Package & Installation
Municipal Light Package
Total Participating Agency CAPEX:
Quantity Ordered:
State Applicable Fees:
Sales Price Per Unit:
Sourcewell Contract Number: 032824-RTG
Remit P.O.s To: [email protected]
Extended Warranty:
Colton Kruse
Upfit:
2023 Ford Transit E-Transit T-350 Cargo Low Roof Van with LiftUp Aerial Device ANSI Certification
LiftUp 38DGA 46KV Insulated Aerial Device
Sourcewell Discount:
Johnny Navarro (831) 420-5506
26502 City of Santa Cruz, CA
Vendor: Rush Truck Center
Contact for Vendor:
Expected Floorplan Expense:
Freight to End User:
State Applicable Sales Tax:
(830) 302-5219
Participating Agency #:
Agency Contact:
Product Dscription:
OEM Chassis MSRP:
Unit Price before Upfit
Additonal Incentives/Credits:
Government Grant/Assistance:
Freight to End User
17.3 032824-RTG
Rev. 3/2022 1
Solicitation Number: RFP #032824
CONTRACT
This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and Rush Truck Centers of Texas, L.P., 555 IH-35 South Ste. 500, New Braunfels, TX 78130 (Supplier).
Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to eligible federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada.
Sourcewell issued a public solicitation for Class 4-8 Chassis and Cabs with Related Equipment, Accessories, and Services from which Supplier was awarded a contract.
Supplier desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and the entities located in the United States that access Sourcewell’s cooperative purchasing contracts (Participating Entities).
1. TERM OF CONTRACT
A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below.
EXPIRATION DATE AND EXTENSION. This Contract expires July 9, 2028, unless it is cancelled sooner pursuant to Article 22. This Contract allows up to three additional one-year extensions upon the request of Sourcewell and written agreement by Supplier. Sourcewell retains the right to consider additional extensions beyond seven years as required under exceptional circumstances.
B. SURVIVAL OF TERMS. Notwithstanding any expiration or termination of this Contract, all payment obligations incurred prior to expiration or termination will survive, as will the following: Articles 11 through 14 survive the expiration or cancellation of this Contract. All other rights will cease upon expiration or termination of this Contract.
17.4 032824-RTG
Rev. 3/2022 2
2. EQUIPMENT, PRODUCTS, OR SERVICES
A. EQUIPMENT, PRODUCTS, OR SERVICES. Supplier will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above.
Supplier’s Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract.
All Equipment and Products provided under this Contract must be new and the current model.
Supplier may offer close-out or refurbished Equipment or Products if they are clearly indicated in Supplier’s product and pricing list. Unless agreed to by the Participating Entities in advance, Equipment or Products must be delivered as operational to the Participating Entity’s site.
This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed.
B. WARRANTY. Supplier warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, subject to the Notice of Security Interest attached hereto as Exhibit A for Participating Entities with deferred payment terms. Any warranties on any Equipment and Products sold by Rush are limited only to any printed warranty provided by the applicable manufacturer of the Equipment or Product. Supplier agrees to assist the Participating Entity in reaching a resolution in any dispute over warranty terms with the manufacturer. Supplier warrants that all services performed by Supplier for a Participating Entity, including repair, maintenance, and installation services (“Services”), will be performed in a good and workmanlike manner in accordance with industry standards (“Services Warranty”).
The Services Warranty is valid for a period of ninety (90) days from the date the Service is completed.
C. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Equipment, Products and Services will be offered for sale to Participating Entities through Supplier and its affiliates as stated in Supplier’s Proposal. Upon Contract execution and throughout the Contract term, Supplier must provide to Sourcewell a current means to validate or authenticate Supplier’s authorized dealers, distributors, or resellers relative to the Equipment, Products, and Services offered under this Contract, which will be incorporated into this Contract by reference. It is the Supplier’s responsibility to ensure Sourcewell receives the most current information.
3. PRICING
All Equipment, Products, or Services under this Contract will be priced at or below the price stated in Supplier’s Proposal.
When providing pricing quotes to Participating Entities, all pricing quoted must reflect a Participating Entity’s total cost of acquisition. This means that the quoted cost is for delivered
17.5 032824-RTG
Rev. 3/2022 3
Equipment, Products, and Services that are operational for their intended purpose, and includes all costs to the Participating Entity’s requested delivery location.
Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase.
A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily apparent at the time of delivery, Supplier must permit the Equipment and Products to be returned within a reasonable time at no cost to Sourcewell or its Participating Entities.
Participating Entities reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Supplier as soon as possible and the Supplier will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity.
Supplier must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition.
Sourcewell may declare the Supplier in breach of this Contract if the Supplier intentionally delivers substandard or inferior Equipment or Products.
B. SALES TAX. Each Participating Entity is responsible for supplying the Supplier with valid taxexemption certification(s). When ordering, a Participating Entity must indicate if it is a taxexempt entity.
C. HOT LIST PRICING. At any time during this Contract, Supplier may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract.
When Supplier determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below.
Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities.
17.6 032824-RTG
Rev. 3/2022 4
4. PRODUCT AND PRICING CHANGE REQUESTS
Supplier may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Supplier Development Administrator. This approved form is available from the assigned Sourcewell Supplier Development Administrator.
At a minimum, the request must:
x Identify the applicable Sourcewell contract number;
x Clearly specify the requested change;
x Provide sufficient detail to justify the requested change; x Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and x Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged.
A fully executed Sourcewell Price and Product Change Request Form will become an amendment to this Contract and will be incorporated by reference.
5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS
A. PARTICIPATION. Sourcewell’s cooperative contracts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities.
The benefits of this Contract should be available to all Participating Entities located in the United States that can legally access the Equipment, Products, or Services under this Contract.
A Participating Entity’s authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Supplier understands that a Participating Entity’s use of this Contract is at the Participating Entity’s sole convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source.
Supplier is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential participating entities to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract.
17.7 032824-RTG
Rev. 3/2022 5
B. PUBLIC FACILITIES. Supplier’s employees may be required to perform work at governmentowned facilities, including schools. Supplier’s employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws.
6. PARTICIPATING ENTITY USE AND PURCHASING
A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Supplier that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Supplier. Typically, a Participating Entity will issue an order directly to Supplier or its authorized subsidiary, distributor, dealer, or reseller. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell contract number. All Participating Entity orders under this Contract must be issued prior to expiration or cancellation of this Contract; however, Supplier performance, Participating Entity payment obligations, and any applicable warranty periods or other Supplier or Participating Entity obligations may extend beyond the term of this Contract.
Supplier’s acceptable forms of payment are included in its attached Proposal. Participating Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity.
B. ADDITIONAL TERMS AND CONDITIONS/PARTICIPATING ADDENDUM. Additional terms and conditions to a purchase order, or other required transaction documentation, may be negotiated between a Participating Entity and Supplier, such as job or industry-specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), or specific local policy requirements. Some Participating Entities may require the use of a Participating Addendum, the terms of which will be negotiated directly between the Participating Entity and the Supplier or its authorized dealers, distributors, or resellers, as applicable. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract.
C. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements not addressed in this Contract (such as ecommerce specifications, specialized delivery requirements, or other specifications and requirements), the Participating Entity and the Supplier may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement.
D. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Supplier in the event of any of the following events:
17.8 032824-RTG
Rev. 3/2022 6
1. The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the equipment, products, or services to be purchased; or
2. Federal, state, or provincial laws or regulations prohibit the purchase or change the Participating Entity’s requirements.
E. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Participating Entity’s order will be determined by the Participating Entity making the purchase.
7. CUSTOMER SERVICE
A. PRIMARY ACCOUNT REPRESENTATIVE. Supplier will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for:
x Maintenance and management of this Contract;
x Timely response to all Sourcewell and Participating Entity inquiries; and x Business reviews to Sourcewell and Participating Entities, if applicable.
B. BUSINESS REVIEWS. Supplier must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, sales data reports, performance issues, supply issues, customer issues, and any other necessary information.
8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Supplier must provide a contract sales activity report (Report) to the Sourcewell Supplier Development Administrator assigned to this Contract. Reports are due no later than 45 days after the end of each calendar quarter. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Supplier must submit a report indicating no sales were made).
The Report must contain the following fields:
x Participating Entity Name (e.g., City of Staples Highway Department); x Participating Entity Physical Street Address;
x Participating Entity City;
x Participating Entity State/Province;
x Participating Entity Zip/Postal Code;
x Participating Entity Contact Name;
x Participating Entity Contact Email Address;
x Participating Entity Contact Telephone Number;
17.9 032824-RTG
Rev. 3/2022 7
x Sourcewell Assigned Entity/Participating Entity Number; x Item Purchased Description;
x Item Purchased Price;
x Sourcewell Administrative Fee Applied; and
x Date Purchase was invoiced/sale was recognized as revenue by Supplier.
B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Supplier will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Supplier may not charge Participating Entities more than the contracted price to offset the Administrative Fee.
The Supplier will submit payment to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased by Participating Entities under this Contract during each calendar quarter. Payments should note the Supplier’s name and Sourcewell-assigned contract number in the memo; and must be mailed to the address above “Attn: Accounts Receivable” or remitted electronically to Sourcewell’s banking institution per Sourcewell’s Finance department instructions. Payments must be received no later than 45 calendar days after the end of each calendar quarter.
Supplier agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract.
In the event the Supplier is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Supplier in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract’s expiration date, the administrative fee payment will be due no more than 30 days from the cancellation date.
9. AUTHORIZED REPRESENTATIVE
Sourcewell's Authorized Representative is its Chief Procurement Officer.
Supplier’s Authorized Representative is the person named in the Supplier’s Proposal. If Supplier’s Authorized Representative changes at any time during this Contract, Supplier must promptly notify Sourcewell in writing.
10. AUDIT, ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE A. AUDIT. Pursuant to Minnesota Statutes Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Contract are subject to examination by Sourcewell or the Minnesota State Auditor for a minimum of six years from the
17.10 032824-RTG
Rev. 3/2022 8
end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract.
B. ASSIGNMENT. Neither party may assign or otherwise transfer its rights or obligations under this Contract without the prior written consent of the other party and a fully executed assignment agreement. Such consent will not be unreasonably withheld. Any prohibited assignment will be invalid.
C. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been duly executed by the parties.
D. WAIVER. Failure by either party to take action or assert any right under this Contract will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. Any such waiver must be in writing and signed by the parties.
E. CONTRACT COMPLETE. This Contract represents the complete agreement between the parties. No other understanding regarding this Contract, whether written or oral, may be used to bind either party. For any conflict between the attached Proposal and the terms set out in Articles 1-22 of this Contract, the terms of Articles 1-22 will govern.
F. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master-servant, or principal-agent.
11. INDEMNITY AND HOLD HARMLESS
Supplier must indemnify, defend, save, and hold Sourcewell and its Participating Entities, including their agents and employees, harmless from any claims or causes of action, including attorneys’ fees incurred by Sourcewell or its Participating Entities, brought or alleged by unaffiliated third parties arising out of any negligent act or omission in the performance of this Contract by the Supplier or its agents or employees; this indemnification includes injury or death to person(s) or property alleged to have been caused by the negligent act or omission of Supplier relating to the Equipment, Products, or Services provided by Supplier under this Contract. Sourcewell’s responsibility will be governed by the State of Minnesota’s Tort Liability Act (Minnesota Statutes Chapter 466) and other applicable law.
12. GOVERNMENT DATA PRACTICES
Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell
17.11 032824-RTG
Rev. 3/2022 9
under this Contract and as it applies to all data created, collected, received, maintained, or disseminated by the Supplier under this Contract.
13. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT A. INTELLECTUAL PROPERTY
1. Grant of License. During the term of this Contract:
a. Sourcewell grants to Supplier a royalty-free, worldwide, non-exclusive right and license to use the trademark(s) provided to Supplier by Sourcewell in advertising and promotional materials for the purpose of marketing Sourcewell’s relationship with Supplier.
b. Supplier grants to Sourcewell a royalty-free, worldwide, non-exclusive right and license to use Supplier’s trademarks in advertising and promotional materials for the purpose of marketing Supplier’s relationship with Sourcewell.
2. Limited Right of Sublicense. The right and license granted herein includes a limited right of each party to grant sublicenses to their respective subsidiaries, distributors, dealers, resellers, marketing representatives, and agents (collectively “Permitted Sublicensees”) in advertising and promotional materials for the purpose of marketing the Parties’ relationship to Participating Entities. Any sublicense granted will be subject to the terms and conditions of this Article. Each party will be responsible for any breach of this Article by any of their respective sublicensees.
3. Use; Quality Control.
a. Neither party may alter the other party’s trademarks from the form provided and must comply with removal requests as to specific uses of its trademarks or logos.
b. Each party agrees to use, and to cause its Permitted Sublicensees to use, the other party’s trademarks only in good faith and in a dignified manner consistent with such party’s use of the trademarks. Upon written notice to the breaching party, the breaching party has 30 days of the date of the written notice to cure the breach or the license will be terminated.
4. Termination. Upon the termination of this Contract for any reason, each party, including Permitted Sublicensees, will have 30 days to remove all Trademarks from signage, websites, and the like bearing the other party’s name or logo (excepting Sourcewell’s pre-printed catalog of suppliers which may be used until the next printing). Supplier must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewell’s written directions.
B. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Supplier individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract.
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C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Send all approval requests to the Sourcewell Supplier Development Administrator assigned to this Contract.
D. ENDORSEMENT. The Supplier must not claim that Sourcewell endorses its Equipment, Products, or Services.
14. GOVERNING LAW, JURISDICTION, AND VENUE
The substantive and procedural laws of the State of Minnesota will govern this Contract. Venue for all legal proceedings arising out of this Contract, or its breach, must be in the appropriate state court in Todd County, Minnesota or federal court in Fergus Falls, Minnesota.
15. FORCE MAJEURE
Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party’s reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default.
16. SEVERABILITY
If any provision of this Contract is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Contract is capable of being performed, it will not be affected by such determination or finding and must be fully performed.
17. PERFORMANCE, DEFAULT, AND REMEDIES
A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows:
1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Supplier will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties.
2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Supplier may escalate the resolution of the issue to a higher level of management. The Supplier will have 30 calendar days to cure an outstanding issue.
3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Supplier must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Supplier fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed
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work, the Supplier will bear any additional costs incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed.
B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default:
1. Nonperformance of contractual requirements, or
2. A material breach of any term or condition of this Contract.
The party claiming default must provide written notice of the default, with 30 calendar days to cure the default. Time allowed for cure will not diminish or eliminate any liability for liquidated or other damages. If the default remains after the opportunity for cure, the non-defaulting party may:
x Exercise any remedy provided by law or equity, or
x Terminate the Contract or any portion thereof, including any orders issued against the Contract.
18. INSURANCE
A. REQUIREMENTS. At its own expense, Supplier must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an “AM BEST” rating of A- or better, with coverage and limits of insurance not less than the following:
1. Workers’ Compensation and Employer’s Liability.
Workers’ Compensation: As required by any applicable law or regulation.
Employer's Liability Insurance: must be provided in amounts not less than listed below:
Minimum limits:
$500,000 each accident for bodily injury by accident
$500,000 policy limit for bodily injury by disease
$500,000 each employee for bodily injury by disease
2. Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office (“ISO”) Commercial General Liability Form CG0001 (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract.
Minimum Limits:
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$1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury
$2,000,000 aggregate for products liability-completed operations $2,000,000 general aggregate
3. Commercial Automobile Liability Insurance. During the term of this Contract, Supplier will maintain insurance covering all owned, hired, and non-owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent.
Minimum Limits:
$1,000,000 each accident, combined single limit
4. Umbrella Insurance. During the term of this Contract, Supplier will maintain umbrella coverage over Employer’s Liability, Commercial General Liability, and Commercial Automobile.
Minimum Limits:
$2,000,000
Failure of Supplier to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default.
B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Supplier must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Supplier Development Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf.
Failure to request certificates of insurance by Sourcewell, or failure of Supplier to provide certificates of insurance, in no way limits or relieves Supplier of its duties and responsibilities in this Contract.
C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Supplier’s commercial general liability insurance policy with respect to liability arising out of activities, “operations,” or “work” performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds.
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D. WAIVER OF SUBROGATION. Supplier waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other insurance applicable to the Supplier or its subcontractors. The waiver must apply to all deductibles and/or self-insured retentions applicable to the required or any other insurance maintained by the Supplier or its subcontractors. Where permitted by law, Supplier must require similar written express waivers of subrogation and insurance clauses from each of its subcontractors.
E. UMBRELLA/EXCESS LIABILITY/SELF-INSURED RETENTION. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies), or self-insured retention.
19. COMPLIANCE
A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold.
B. LICENSES. Supplier must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Supplier conducts with Sourcewell and Participating Entities.
20. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION
Supplier certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Supplier declares bankruptcy, Supplier must immediately notify Sourcewell in writing.
Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time.
21. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER
UNITED STATES FEDERAL AWARDS OR OTHER AWARDS
Participating Entities that use United States federal grant or FEMA funds to purchase goods or services from this Contract may be subject to additional requirements including the
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procurement standards of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 C.F.R. § 200. Participating Entities may have additional requirements based on specific funding source terms or conditions. Within this Article, all references to “federal” should be interpreted to mean the United States federal government.
The following list only applies when a Participating Entity accesses Supplier’s Equipment, Products, or Services with United States federal funds.
A. EQUAL EMPLOYMENT OPPORTUNITY. Except as otherwise provided under 41 C.F.R. § 60, all contracts that meet the definition of “federally assisted construction contract” in 41 C.F.R. § 60-
1.3 must include the equal opportunity clause provided under 41 C.F.R. §60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 C.F.R. §, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 C.F.R. § 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.” The equal opportunity clause is incorporated herein by reference.
B. DAVIS-BACON ACT, AS AMENDED (40 U.S.C. § 3141-3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by nonfederal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. § 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 C.F.R. § 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-federal entity must report all suspected or reported violations to the federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. § 3145), as supplemented by Department of Labor regulations (29 C.F.R. § 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-federal entity must report all suspected or reported violations to the federal awarding agency. Supplier must be in compliance with all applicable Davis-Bacon Act provisions.
C. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT (40 U.S.C. § 3701-3708). Where applicable, all contracts awarded by the non-federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. §§ 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. § 5).
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Under 40 U.S.C. § 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. § 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. This provision is hereby incorporated by reference into this Contract. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.
D. RIGHTS TO INVENTIONS MADE UNDER A CONTRACT OR AGREEMENT. If the federal award meets the definition of “funding agreement” under 37 C.F.R. § 401.2(a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 C.F.R. § 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.
E. CLEAN AIR ACT (42 U.S.C. § 7401-7671Q.) AND THE FEDERAL WATER POLLUTION CONTROL ACT (33 U.S.C. § 1251-1387). Contracts and subgrants of amounts in excess of $150,000 require the non-federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. § 7401- 7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. § 1251- 1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).
Supplier certifies that during the term of this Contract will comply with applicable requirements as referenced above.
F. DEBARMENT AND SUSPENSION (EXECUTIVE ORDERS 12549 AND 12689). A contract award (see 2 C.F.R. § 180.220) must not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 C.F.R. §180 that implement Executive Orders 12549 (3 C.F.R. § 1986 Comp., p. 189) and 12689 (3 C.F.R. § 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Supplier certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any federal department or agency.
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G. BYRD ANTI-LOBBYING AMENDMENT, AS AMENDED (31 U.S.C. § 1352). Suppliers must file any required certifications. Suppliers must not have used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Suppliers must disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. Suppliers must file all certifications and disclosures required by, and otherwise comply with, the Byrd Anti-Lobbying Amendment (31 U.S.C. § 1352).
H. RECORD RETENTION REQUIREMENTS. To the extent applicable, Supplier must comply with the record retention requirements detailed in 2 C.F.R. § 200.333. The Supplier further certifies that it will retain all records as required by 2 C.F.R. § 200.333 for a period of 3 years after grantees or subgrantees submit final expenditure reports or quarterly or annual financial reports, as applicable, and all other pending matters are closed.
I. ENERGY POLICY AND CONSERVATION ACT COMPLIANCE. To the extent applicable, Supplier must comply with the mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act.
J. BUY AMERICAN PROVISIONS COMPLIANCE. To the extent applicable, Supplier must comply with all applicable provisions of the Buy American Act. Purchases made in accordance with the Buy American Act must follow the applicable procurement rules calling for free and open competition.
K. ACCESS TO RECORDS (2 C.F.R. § 200.336). Supplier agrees that duly authorized representatives of a federal agency must have access to any books, documents, papers and records of Supplier that are directly pertinent to Supplier’s discharge of its obligations under this Contract for the purpose of making audits, examinations, excerpts, and transcriptions. The right also includes timely and reasonable access to Supplier’s personnel for the purpose of interview and discussion relating to such documents.
L. PROCUREMENT OF RECOVERED MATERIALS (2 C.F.R. § 200.322). A non-federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. § 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring
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solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.
M. FEDERAL SEAL(S), LOGOS, AND FLAGS. The Supplier cannot use the seal(s), logos, crests, or reproductions of flags or likenesses of Federal agency officials without specific pre-approval.
N. NO OBLIGATION BY FEDERAL GOVERNMENT. The U.S. federal government is not a party to this Contract or any purchase by a Participating Entity and is not subject to any obligations or liabilities to the Participating Entity, Supplier, or any other party pertaining to any matter resulting from the Contract or any purchase by an authorized user.
O. PROGRAM FRAUD AND FALSE OR FRAUDULENT STATEMENTS OR RELATED ACTS. The Contractor acknowledges that 31 U.S.C. 38 (Administrative Remedies for False Claims and Statements) applies to the Supplier’s actions pertaining to this Contract or any purchase by a Participating Entity.
P. FEDERAL DEBT. The Supplier certifies that it is non-delinquent in its repayment of any federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowance, and benefit overpayments.
Q. CONFLICTS OF INTEREST. The Supplier must notify the U.S. Office of General Services, Sourcewell, and Participating Entity as soon as possible if this Contract or any aspect related to the anticipated work under this Contract raises an actual or potential conflict of interest (as described in 2 C.F.R. Part 200). The Supplier must explain the actual or potential conflict in writing in sufficient detail so that the U.S. Office of General Services, Sourcewell, and Participating Entity are able to assess the actual or potential conflict; and provide any additional information as necessary or requested.
R. U.S. EXECUTIVE ORDER 13224. The Supplier, and its subcontractors, must comply with U.S.
Executive Order 13224 and U.S. Laws that prohibit transactions with and provision of resources and support to individuals and organizations associated with terrorism.
S. PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT. To the extent applicable, Supplier certifies that during the term of this Contract it will comply with applicable requirements of 2 C.F.R. § 200.216.
T. DOMESTIC PREFERENCES FOR PROCUREMENTS. To the extent applicable, Supplier certifies that during the term of this Contract will comply with applicable requirements of 2 C.F.R. § 200.322.
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22. CANCELLATION
Sourcewell or Supplier may cancel this Contract at any time, with or without cause, upon 60 days’ written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Supplier’s Proposal. Cancellation of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation.
Sourcewell Rush Truck Centers of Texas, L.P.
By: __________________________ By: __________________________ Jeremy Schwartz Michael Lyons
Title: Chief Procurement Officer Title: Associate General Counsel Date: ________________________ Date: ________________________
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Exhibit A
Notice of Security Interest
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Bid Number: RFP 032824 Vendor Name: Rush Enterprises
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Bid Number: RFP 032824 Vendor Name: Rush Enterprises
17.30 Table 16: Category 2 - Depth and Breadth of Offered Equipment Products and Services Indicate below if the listed types or classes of equipment, products, and services are offered within your proposal. Provide additional comments in the text box provided, as necessary.
Proposers seeking an award in Category 2, as defined herein, must include at least one solution offered within the scope of Category 2 for electric propulsion systems only. See RFP Section II. B. 1 for details.
We will not be submitting for Table 16: Category 2 - Depth and Breadth of Offered Equipment Products and Services Line
Item Category or Type Offered * Comments
80 Battery Electric Vehicle (BEV)
Class 4 Chassis
Yes
No
Rush Truck Centers is not offering an OEM that has a BEV vehicle for the class 4 space. 81 Battery Electric Vehicle (BEV)
Class 5 Chassis
Yes
No
Isuzu is looking to offer a BEV class 5 unit towards the end of 2024/beginning of 2025. Although pricing isn t currently available, once made available to Rush Truck Centers, we intend to work with Sourcwell to have this model added to the contract.
82 Battery Electric Vehicle (BEV)
Class 6 Chassis
Yes
No
Rush Truck Centers is not offering an OEM that has a BEV vehicle for the class 6 space on. 83 Battery Electric Vehicle (BEV)
Class 7 Chassis
Yes
No
Rush Truck Centers is not offering an OEM that has a BEV vehicle for the class 7 space. 84 Battery Electric Vehicle (BEV)
Class 8 Chassis
Yes
No
Rush Truck Centers is not offering an OEM that has a BEV vehicle for the class 8 space. 85 Related equipment, accessories, parts, upfitting,
services, used chassis and Class 3 chassis
Yes
No
Rush Truck Centers is offering the Ford E-Transit line which we are offering on this proposal.
Exceptions to Terms, Conditions, or Specifications Form Only those Proposer Exceptions to Terms, Conditions, or Specifications that have been accepted by Sourcewell have been incorporated into the contract text.
Documents
Ensure your submission document(s) conforms to the following:
1. Documents in PDF format are preferred. Documents in Word, Excel, or compatible formats may also be provided.
2. Documents should NOT have a security password, as Sourcewell may not be able to open the file. It is your sole responsibility to ensure that the uploaded document(s) are not either defective, corrupted or blank and that the documents can be opened and viewed by Sourcewell.
3. Sourcewell may reject any response where any document(s) cannot be opened and viewed by Sourcewell.
4. If you need to upload more than one (1) document for a single item, you should combine the documents into one zipped file. If the zipped file contains more than one (1) document, ensure each document is named, in relation to the submission format item responding to. For example, if responding to the Marketing Plan category save the document as "Marketing Plan." Pricing - MSRP Pricing.zip - Thursday March 28, 2024 13:53:27 Financial Strength and Stability - 2023 10-K Final.pdf - Tuesday March 26, 2024 10:49:33 Marketing Plan/Samples (optional)
WMBE/MBE/SBE or Related Certificates (optional)
Warranty Information - Exhibit C - Rush Limited Warranty.pdf - Thursday March 28, 2024 12:41:37 Standard Transaction Document Samples - Sourcewell Docs Example.pdf - Thursday March 28, 2024 14:24:57 Requested Exceptions - RFP_033824_Class_4-8_Chassis_&_Cabs_Contract_Template_Rush revisions.docx - Tuesday March 26, 2024 11:39:46 Upload Additional Document - Additional Documents.zip - Thursday March 28, 2024 12:40:50 Bid Number: RFP 032824 Vendor Name: Rush Enterprises
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Bid Number: RFP 032824 Vendor Name: Rush Enterprises
17.33 City Council
AGENDA REPORT
DATE: 02/05/2026
AGENDA OF: 02/24/2026
DEPARTMENT: Public Works
SUBJECT: Purchase of Wastewater Collection Utility Truck (PW) LOCATION: Citywide
RECOMMENDATION: Motion to award a contract for the purchase of one Ford F-550 Utility Truck from Watsonville Ford (Watsonville, CA) in the amount of $108,388.
BACKGROUND: The Wastewater Collection Division is responsible for the inspection, cleaning, and maintenance of approximately 160 miles of sanitary sewer each year. The wastewater collection team oversees the infrastructure that conveys wastewater from homes and businesses to treatment facilities, helping protect public health by preventing system blockages and overflows. Their duties include inspecting, cleaning, repairing, and maintaining sewer lines, manholes, and lift stations using specialized equipment.
DISCUSSION: The Wastewater Collection Division proposes to replace vehicle #455. The replacement vehicle will be a service truck equipped with a utility body and is used daily by staff to transport tools and equipment to various job sites throughout the collection system. This vehicle supports spot repairs to City sewer mains, the removal and replacement of sewer manhole frame and cover assemblies, and other sewer-related construction activities.
Additionally, the vehicle is utilized for towing air compressors, trailer-mounted pumps, portable generators, and the trailer-mounted O’Brien sewer cleaning unit.
Section 3.08.170 of the Municipal Code allows the City of Santa Cruz to buy from cooperative purchasing agreements when is in the best interest of the City to do so. Sourcewell obtains competitively and formally bid contracts which can be used by participating member municipal agencies, including the City. The Sourcewell quoted price for the utility truck is $108,388, inclusive of 9.75% sales tax. Use of the Cooperative Purchasing method through the Sourcewell contract provides discounted pricing from the manufacturer’s list price, resulting in cost savings to the City compared to traditional purchasing methods. During FY 2026, the Fleet Division attempted to secure a replacement vehicle but found that Ford F-450 models are currently on hold due to a safety recall, with pricing unavailable until the recall is lifted. Consequently, staff pursued the Ford F-550 based on availability. The proposed vehicle is one of five remaining 2025 models available in California and is being offered at a discounted price. Comparable 2026 models are expected to be more costly and would not be available until April or May.
18.1 CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The purchase of this vehicle is not a “Project” under CEQA. (Public Resources Code § 21065; CEQA Guidelines § 15378(b) – A CEQA “Project” does not include continuing “maintenance activities, such as purchases for supplies”.)
HEALTH IN ALL POLICIES (HiAP): The project promotes the following Health in All Policies Conditions: Health and Wellness; Healthy Environments, Neighborhood/Built Environment and Public Safety by maintaining the City’s sewer system infrastructure.
FISCAL IMPACT:
1. The recommendation in this report impacts the General Fund: No
2. This recommendation requires a budget adjustment: No
3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: The purchase price of the replacement service truck is $108,388. The purchase is budgeted in the FY 2026 operating budget in the Wastewater Enterprise Fund (Fund 721). There is no impact to the General Fund.
Prepared By:
Christina Alberti
Principal Management
Analyst
Rome Norman
Wastewater Collection
Manager
Submitted By:
Nathan Nguyen, P.E.
Director of Public Works
Approved By:
Matt Huffaker
City Manager
ATTACHMENTS:
1. QUOTE.PDF
2. SINGLE SOURCE MEMO AND SOURCEWELL.DOCX
18.2 18.3
18.4 18.5
18.6 18.7
MEMORANDUM
DATE: January 21, 2026
TO: Elizabeth Millwee, Purchasing Manager
FROM: Johnny Navarro, Garage Service Supervisor
SUBJECT: Single Source Memo for Purchase of Wastewater Collection Utility Truck The Wastewater Collection Division is responsible for inspecting, cleaning, and maintaining approximately 160 miles of sanitary sewer annually. The collection team manages the infrastructure that transports wastewater from homes and businesses to treatment facilities, safeguarding public health by preventing blockages and overflows.
Responsibilities include the inspection, cleaning, repair, and maintenance of sewer lines, manholes, and lift stations using specialized equipment.
To support these operations, the Wastewater Collection Division proposes replacing vehicle #455 in its fleet. The replacement vehicle is a service truck with a utility body and is used daily to transport tools and equipment to job sites throughout the collection system. It is utilized for spot repairs to City sewer mains, the removal and replacement of sewer manhole frame and cover assemblies, and other sewer-related construction activities. The vehicle also supports towing air compressors, trailer-mounted pumps, portable generators, and the trailer-mounted O’Brien sewer cleaning unit.
The Sourcewell quoted price for the utility truck is $108,388, inclusive of 9.75% sales tax. All Ford F-450 vehicles were placed on hold due to a safety recall. At the time, no units with installed bodies were available, and pricing could not be obtained until the recall is lifted, which has not yet occurred. As a result, staff evaluated the Ford F-550 due to its availability.
Requiring multiple quotes would negate the efficiency and intent of utilizing a Sourcewell cooperative purchasing vendor. The proposed vehicle is one of five remaining 2025 models available in California and is being offered at a discounted price. Any alternative quotes would be for 2026 models, which would be more costly and are not expected to be available until April or May. As a result of limited availability for such a vehicle, and the competitive price offered at a local dealership, we recommend this as a single source purchase.
18.8 City Council
AGENDA REPORT
DATE: 02/05/2026
AGENDA OF: 02/24/2026
DEPARTMENT: Water
SUBJECT: SCMU Customer Assistance Program (UCAP) Update—Expansion to Include Multi-Family Customers – Budget Adjustment (WT) LOCATION: County
RECOMMENDATION: Receive an update on the SCMU Customer Assistance Program (UCAP), including the expansion of the UCAP to serve multi-family customers, and adopt a resolution amending the Fiscal Year (FY) 2026 budget in the amount of $1,101,000 for the UCAP Special Revenue Fund (Fund 296) and ($42,631) for the Water Department (Fund 711).
BACKGROUND: Santa Cruz Municipal Utilities (SCMU) provides billing and customer support to Santa Cruz utility users. Services include refuse, sewer, and water for customers inside the City of Santa Cruz, and water only service for some unincorporated areas of the County of Santa Cruz.
In recognition of the disproportionate impact increasing utility costs have on financially struggling customers, Santa Cruz Municipal Utilities (SCMU) developed the Utility Customer Assistance Program (UCAP). Funding was identified and secured through Council Policy 34.8, adopted in March of 2025, authorizing the creation of a Special Revenue Fund to financially administer the UCAP.
The initial launch of the UCAP was focused on single-family customers in part because singlefamily customers have an SCMU account in their name and pay SCMU directly for services, making the monthly financial assistance relatively simple to administer via a bill credit applied to each enrolled customer’s SCMU account. Program outreach efforts were also facilitated through existing customer contact information. While implementing the single-family program, staff have concurrently been developing the framework to launch the multi-family program, expanding the reach of UCAP to serve customers who do not have accounts directly with SCMU, but rather pay for their SCMU services to their landlords or property managers in the form of rent, third-party billing, or through association fees.
What follows is an update on the progress of the single-family program and an overview of the planned multi-family program expansion. Although Santa Cruz is not immune to raising utility costs, SCMU is proud to be offering the UCAP to support our most vulnerable customers.
19.1 DISCUSSION:
UCAP Single-Family Program Implementation
The single-family portion of the UCAP officially launched in April of 2025. Community outreach was conducted, in both English and Spanish, to all single-family SCMU customers, with additional targeted outreach to SCMU customers who had accumulated debt/arrearage or who had a history of late payment. In addition, staff reached out to local community partners to help market this new financial assistance program.
As of February 2026, over 500 SCMU single-family customers have been enrolled in UCAP.
These customers receive ongoing monthly bill credits, waivers of late payment penalty fees, and early leak notifications (when applicable). Outreach efforts continue through the City’s website, customer e-mail blasts, community flyers, and through one-on-one customer service communications.
Staff have proactively been evaluating and analyzing the single-family program throughout the (almost) first year of program implementation, resulting in the following enhancements to the financial benefits provided to enrolled single-family UCAP participants:
In addition to a waiver of future late payment fees, participants now also receive reimbursement of up to 12 prior late payment penalty fees. This additional benefit was added after staff noticed a high number of enrollees who entered the program with debt, in part due to the late fees they had incurred. The UCAP monthly bill credits help customers manage their monthly bills but are not significant enough to assist customers who enter the program with significant debt. Now, many participants receive a substantial bill adjustment upon enrollment, helping them reduce and/or eliminate their debt/arrearage.
The single-family monthly bill credit was initially set at $25.00 for all UCAP enrolled customers. After additional cost analysis looking at the difference in rates for inside City and outside City customers and consideration of the annual rate increases for all three utilities (water, wastewater, and refuse), staff developed a method to establish a more updated monthly bill credit. The UCAP monthly bill credits are now representative of a discount of 25% off the average single-family SCMU bill. The monthly bill credit amounts will be re-assessed each year in July (prior to utility rate increases) to help ensure the UCAP bill credit keeps pace with the cost of services. Currently, enrolled customers receive the following monthly bill credit: $58.00 for inside City customers (who receive water, wastewater, and refuse services) and $25.00 for outside City customers (who receive water services only).
As the single-family portion of the UCAP nears the first full year of implementation, staff is committed to continued program evaluation and modification to ensure SCMU is implementing an effective and impactful financial support program for customers who are experiencing financial challenges.
19.2 UCAP Multi-Family Program Launch
The UCAP was always conceptualized as a program designed to support all SCMU residential customers, not just account holders. Multi-family customers, those living in apartment complexes, mobile home parks, or any dwelling units with shared water meters, may not pay SCMU directly for services, but are very much still users of SCMU’s services and therefore should have equal access to the UCAP if they are struggling financially.
According to a 2016 EPA study, approximately a quarter of all large water utilities (those with 100,000 or more customers) offer some form of a single-family customer assistance program.
This is in stark contrast to multi-family assistance programs that are very rare (only 5 known programs are currently in implementation in the US). This is due to the challenges faced in accessing these “hard to reach” customers, the lack of consistency in how utility costs are passed down from landlords to tenants, and in the lack of research in understanding how raising utility costs are impacting these households. SCMU has partnered with researchers at Stanford to conduct a needs assessment as part of the multi-family program development. To date, Stanford researchers have conducted focus groups and surveys to obtain insights from both multi-family customers and landlords to better understand how multi-family customers pay for SCMU services and what financial impact those costs are having on our more vulnerable community members. Although the final analysis is still a few months away, some common themes have emerged, most notably the reality that these customers are indeed “hard to reach,” and therefore robust outreach efforts are needed to make sure these customers have access to the UCAP.
Concurrent to the multi-family needs assessment, staff have been developing a framework for multi-family program implementation. The multi-family enrollment process and benefits will be very similar to the existing single-family program, aiming to keep the enrollment process as lowbarrier as possible. Potential multi-family participants will need to complete a simple online or paper application (available in both English and Spanish), provide proof of income eligibility (copy of County benefit enrollment letter or a PG&E bill showing CARE enrollment), and documentation showing residency in the SCMU service area. Annual re-enrollment will be allowed with a simplified application, should funding allow.
Single-family UCAP participants receive a monthly bill credit applied directly to their account.
This process is automated, allowing customers to be supported each month. Since multi-family customers do not have accounts with SCMU, there is no option to simply apply a monthly discount. Instead, a check will need to be issued and sent to these participants. To avoid the significant workload of monthly check issuance on both Water and Finance staff, the multifamily UCAP participants will receive an annual check as opposed to monthly bill credit. Once enrolled, multi-family customers will receive an annual check in the amount of $696 ($58 x 12 months) for inside City customers and $300 ($25 x 12 months) for outside City customers. Water Department staff will collaborate with Finance Department staff to issue the annual checks. As with the single-family program, staff will collect multi-family enrollment data to assist in program monitoring and evaluation. Finance staff will monitor check issuance and track any unclaimed checks.
The Multi-Family UCAP is set to launch in March. Outreach will be conducted, in English and Spanish, to all multi-family residences in the SCMU service area. Staff plan to collaborate with PG&E and the County benefits office to ensure their existing income-qualifying program
19.3 participants receive UCAP outreach materials. In addition, staff will coordinate with community partners who help make sure these hard-to-reach customers have access to this new program.
UCAP Financial Outlook
Council previously approved the creation of a Special Revenue Fund to financially administer the UCAP, utilizing SCMU late payment fee revenues. Since the UCAP funding source is ongoing and enrollment in the single-family program took time to ramp up, the Fund is currently more than sufficient to support the existing single-family program. Financial analysis suggests this Fund will also be sufficient to support the multi-family expansion. Staff anticipate a similar enrollment rate in the multi-family program as has been seen in the single-family program, though staff have budgeted for an additional uptick in enrollment rates to account for the expanded community outreach that will occur with the launch of the new multi-family program.
Should enrollment exceed anticipated numbers, staff will seek outside (non Prop-218 restricted) funding and/or limit program enrollment to ensure there are sufficient funds to support existing enrolled UCAP participants.
Staff is seeking approval of a budget adjustment for the UCAP Special Revenue Fund to recognize program revenue and appropriate funds for the single and multi-family programs. This budget adjustment is being brought to Council now, as opposed to during the annual fiscal year budgeting process, in an effort to launch the multi-program as soon as possible. It is also important to note that, while this budget adjustment does not fully utilize available resources as the programs are being rolled out, the intent is to fully program available funds on an ongoing basis.
In addition, the budget adjustment includes the ability to charge staff time to the UCAP programs. This change is being made because Prop-218 requires that rate payer fees be used for the purpose of providing utility services to those ratepayers, and the cost of providing reduced rates to some ratepayers might not be considered necessary part of providing utility services to all customers. Payroll costs associated with implementing the UCAP will be drawn from the UCAP Special Revenue Fund.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed Council action is not a “Project” under the CEQA. The expansion of the UCAP to serve multi-family customers, which will provide ongoing financial support to enrolled, qualified, low-income program participants, does not have the potential to directly or indirectly cause a physical change in the environment.
HEALTH IN ALL POLICIES (HiAP): The expansion of the UCAP to serve multi-family customers is consistent with the Health in All Policies pillars of equity, public health, and sustainability, as the expanded program will provide financial support to income-qualifying community members in an effort to ensure continued access to reliable, high-quality drinking water to all the SCMU’s customers.
FISCAL IMPACT:
1. The recommendation in this report impacts the General Fund: No
2. This recommendation requires a budget adjustment: Yes
3. The recommendation creates an on-going expenditure commitment: Yes
19.4 FISCAL IMPACT DESCRIPTION: Funds for this program are available in the dedicated UCAP Special Revenue Fund (Fund 296). This action budgets both the single family and multifamily programs for FY 2026.
Prepared By:
Megan Bunch
Program Analyst
Submitted By:
Heidi Luckenbach
Water Director
Approved By:
Matt Huffaker
City Manager
ATTACHMENTS:
1. BUDGET ADJUSTMENT.PDF
19.5 City of Santa Cruz
BUDGET ADJUSTMENT REQUEST
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REQUESTED BY DEPARTMENT HEAD
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APPROVAL
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APPROVAL
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Clear Form
2026
01/21/2026
Implementation of the Utility Customer Assistance Program (UCAP) for single family and multi-family customers. FUnding of staff position dedicated to administering the UCAP program.
296-00-00-0000-41972 Utility users tax - UCAP penalty 1,101,000 1,101,000
296-00-00-0000-52270 UCAP Credit Applied (single family bill credits) 350,000 296-00-00-0000-52271 UCAP Assistance Checks 150,000
multi-family mailed checks for Mar to Jun 2026
296-00-00-0000-52122 t702601-100-2010-0 Interfund labor expense (75% for 4 months) 42,631 711-70-93-7104-51910 intrafund labor credit for UCAP staff (4 months) <42,631> 500,085
600,915
Nichola
s Kurns
Digitally signed by
Nicholas Kurns
Date: 2026.02.05
09:10:48 -08'00'
Heidi
Luckenbach
Digitally signed by
Heidi Luckenbach
Date: 2026.02.06
12:06:53 -08'00'
Digitally signed
by Emily Burton
Date: 2026.02.06
'12:31:18 -08'00
Elizabet
h Cabell
Digitally signed by
Elizabeth Cabell
Date: 2026.02.09
10:27:35 -08'00' 19.6
Brittany Inclan
From: Garrett <[email protected]>
Sent: Thursday, February 19, 2026 5:14 PM
To: City Council
Subject: 2.24.26 agenda item # 19 utility assistance (Consent agenda) Re: 2.24.26 agenda item # 19 utility assistance (Consent agenda) Dear Council,
I believe citizens could benefit from looking at Huntington Beach when making policy of any kind.
The reason is they are highly ranked as one of the best run, best places to live in the country through analysis of dozens of objective factors by WalletHub (as they do every year).
They regularly rank in the top as to city operation and for instance top 24 of 150 largest USA cities. (San Francisco, Oakland, New York always are the bottom 3 worst, typical of leftist hell holes).
While there is no ranking for medium sized cities, Santa Cruz given it's high taxes, homelessness, poverty rates, high utility rates, debt and high city cost per capita overall would rank very low, so maybe get some insight from those who do excel in city management.
As to this matter, they do have a program to give utility tax waivers to qualifying low income seniors over 62 (HUD Income Guidelines – “Very Low Income Category” ).
They require proof of this low income and age (tax return, etc).
As far as I can tell, nothing else.
In this way, they DO NOT discount service, and proof is required every year. Everyone pays for what they use. It is a tax discount only.
They also require deposits when setting up accounts unless users have sufficiently good payment history. (This avoids some payment deadbeats to begin with).
There is probably more to know, but as an exceptional well run city, worth a look.
You should not be in the welfare business for the able bodies young, or late payment forgiveness business of same.
Garrett Philipp
19.7 Brittany Inclan
From: A Webb <[email protected]>
Sent: Monday, February 23, 2026 1:49 PM
To: City Council
Subject: Feb 24, 2026 Agenda - SUPPORT Item #19 re:City utility assistance program for Multifamily property residents To City Mayor and Councilmembers,
Please SUPPORT the expansion of this important City utilities assistance program to include Multi-family, specifically MH Park communities, residents who are paying for all City Water, Sewer, Trash, Yard Carts utilities and services. In our MH Park, the Park Owner/account holder passes through all costs to residents via monthly billings (including Ready-to-Serve charges), we do have individual water submeters of which our water and sewer rates and charges are based, and we pay an additional monthly Park Water Administration Fee to the Park Owner. Monthly City utility costs exceed our monthly PG&E costs most of the year, and with all of those rates increasing annually, some significantly, very low fixed income households - particularly our seniors and disabled - really struggle to keep up. Rents, medical and other costs of living escalate, and income does not.
THANK YOU for finding a way to extend this program to multi-family/MH Park property residents.
I see to keep costs at minimum an annual check is proposed vs. the monthly Credit to account holders. I understand that, but wonder what happens if a resident dies (we've had seniors pass annually in our community of 68 homes) or moves within that 12- month period? Also, is it possible to do a semi-annual check vs. annual, like PG&E does their CA Climate Credits for example?
And I am interpreting the reference in the Summary report, when it gets down to how the expansion of this program will work, that multi-family "customers" means individual qualified households - correct? Up to now "customers" usually means account holders, so I wanted to clarify.
Thank you again.
Anita Webb,
President,
ClearView Court Homeowners Association
Santa Cruz
19.8 City Council
AGENDA REPORT
DATE: 02/03/2026
AGENDA OF: 02/24/2026
DEPARTMENT: Planning and Community Development
SUBJECT: 2nd Reading and Final Adoption of Ordinance Nos. 2026-02 and 2026-03 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) Adopt Ordinance 2026-02 amending Chapter 24.16 Part 2 of the Santa Cruz Municipal Code (SCMC) related to Accessory Dwelling Unit Regulations;
2) Adopt Ordinance 2026-03 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) Adopt a resolution directing staff to submit Ordinance No. 2026-03 to the California Coastal Commission.
BACKGROUND: Ordinance Nos. 2026-02 and 2026-03 were introduced for publication at the February 10, 2026 Council meeting.
DISCUSSION: Staff is requesting that Council adopt Ordinance Nos. 2026-02 and 2026-03.
Upon adoption of the resolution, staff will submit Ordinance No. 2026-03 to the California Coastal Commission.
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.
20.1 HEALTH IN ALL POLICIES (HiAP): In 2019, the City adopted a Health in All Policies strategy to eliminate inequities in health and well-being and attain equity for all residents. The proposed amendments further the City’s Health in All Policies strategy, 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.
FISCAL IMPACT DESCRIPTION: None.
Prepared By:
Clara Stanger, Senior Planner
Matt VanHua, Principal
Planner
Submitted By:
Lee Butler
Director of Community
Development
Approved By:
Matt Huffaker
City Manager
ATTACHMENTS:
1. 2026-02 - AMENDMENTS TO MUNICIPAL CODE CHAPTER 24.04 - ADUS (PL).DOCX
2. 2026-03 - LCP IP - AMENDMENTS TO MUNICIPAL CODE CHAPTER 24.04 - ADUS (PL).DOCX
3. RESOLUTION.DOCX
20.2 ORDINANCE NO. 2026-02
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
20.3 ORDINANCE NO. 2026-02
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 three20.4 ORDINANCE NO. 2026-02
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.
20.5 ORDINANCE NO. 2026-02
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 multi20.6 ORDINANCE NO. 2026-02
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.
20.7 ORDINANCE NO. 2026-02
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).
20.8 ORDINANCE NO. 2026-02
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:
20.9 ORDINANCE NO. 2026-02
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.
20.10 ORDINANCE NO. 2026-02
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.
20.11 ORDINANCE NO. 2026-02
Development
Standard Attached Conversion1,2 Detached
• 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.
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.
20.12 ORDINANCE NO. 2026-02
Development
Standard Attached Conversion1,2 Detached
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 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.
20.13 ORDINANCE NO. 2026-02
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 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.
20.14 ORDINANCE NO. 2026-02
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.
20.15 ORDINANCE NO. 2026-02
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.
20.16 ORDINANCE NO. 2026-02
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 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
20.17 ORDINANCE NO. 2026-02
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).
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:
20.18 ORDINANCE NO. 2026-02
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.
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:
20.19 ORDINANCE NO. 2026-02
(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.
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.
20.20 ORDINANCE NO. 2026-02
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 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.
20.21 ORDINANCE NO. 2026-02
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.
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.
20.22 ORDINANCE NO. 2026-02
PASSED FOR PUBLICATION this 10th day of February 2026, by the following vote:
AYES: Councilmembers Brunner, Newsome, Golder, O’Hara; Vice Mayor Kalantari-Johnson; Mayor Keeley.
NOES: None.
ABSENT: Councilmember Trigueiro.
DISQUALIFIED: None.
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. 2026-02 and that
it has been published or posted in
accordance with the Charter of the
City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator
20.23 ORDINANCE NO. 2026-03
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 REGULATIONS. 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;
20.24 ORDINANCE NO. 2026-03
2 (2) the proposed General Plan and/or Local Coastal Program amendment is consistent and compatible with the rest of the General Plan and LCP and any implementation programs that may be affected; (3) the potential impacts of the proposed amendment have been assessed and have been determined not to be detrimental to the public health, safety, or welfare; and (4) the proposed amendment has been processed in accordance with the applicable provisions of the California Government Code and the California Environmental Quality Act (CEQA); and WHEREAS, at its 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
20.25 ORDINANCE NO. 2026-03
3 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
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
20.26 ORDINANCE NO. 2026-03
4 Public Hearing Requirement and Decision-Making
Body Which Can Approve an Application
No Public
Hearing Public Hearing Permits/Actions4
Action Recommendation Action
Appeal Bodies
(in order)
Administrative Use Permit: Variations
to parking design requirements or
variations to number of required spaces
ZA CPC/CC/CCC
Other uses as listed by individual zoning
districts as requiring an administrative
use permit
ZA CPC/CC
Conditional Fence Permit ZA ZA CPC/CC
Slope Regulations Modifications
(Variance) in the Coastal Zone
CPC CC
Slope Development Permit (on or within
20 feet of a 50% or greater slope)
outside the Coastal Zone
ZA CPC/CCC
Slope Regulations Modifications
(Design Permit) in the Coastal Zone
ZA CPC/CC
Slope Development Permit (on or within
20 feet of a slope greater than or equal
to 30% and less than 50%) outside the
Coastal Zone
ZA CPC/CC
Design Permit ZA CPC/CC
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
20.27 ORDINANCE NO. 2026-03
5 Public Hearing Requirement and Decision-Making
Body Which Can Approve an Application
No Public
Hearing Public Hearing Permits/Actions4
Action Recommendation Action
Appeal Bodies
(in order)
6.Residential development in R-L, R-M,
or R-H zone districts conforming to
all standards of Section 24.12.185
ZA CPC/CC
7.Mixed-use or residential development
not within the R-L, R-M, or R-H zone
districts with no more than 50
dwelling units and conforming to all
standards of Section 24.12.185
ZA CPC/CC
8.Mixed-use or residential
developments not within the R-L, RM, or R-H zone districts with 51 dwelling units or more and
conforming to all standards of Section
24.12.185
ZA CPC/CC
9.Mixed-use or residential development
varying from at least one and no more
than five standards of Section
24.12.185
ZA CPC/CC
10. Mixed-use or residential
development that varies from six or
more standards of Section 24.12.185
CPC CC
Demolition Permit
1. Single-family residential ZA CPC/CC
2. Multifamily residential ZA CPC/CC
3. Historic demolition permit HPC CC
4. Nonresidential ZA2 ZA2 CPC/CC
General Plan Text and Map
Amendments
CPC CC/CCC3
Historic Alteration Permit HPC CC
Administrative Historic Alteration
Permit
ZA HPC/CC
Historic Building Survey:
Building designation, deletion HPC CC
20.28 ORDINANCE NO. 2026-03
6 Public Hearing Requirement and Decision-Making
Body Which Can Approve an Application
No Public
Hearing Public Hearing Permits/Actions4
Action Recommendation Action
Appeal Bodies
(in order)
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
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
20.29 ORDINANCE NO. 2026-03
7 Public Hearing Requirement and Decision-Making
Body Which Can Approve an Application
No Public
Hearing Public Hearing Permits/Actions4
Action Recommendation Action
Appeal Bodies
(in order)
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 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 non-appealable to the Coastal Commission.
The determination of whether a project is appealable or non-appealable, 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
20.30 ORDINANCE NO. 2026-03
8 Coastal Commission. Coastal permits for small cell facilities that are both in the public rightof-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.
20.31 ORDINANCE NO. 2026-03
9 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.
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.
20.32 ORDINANCE NO. 2026-03
10 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: Councilmembers Brunner, Newsome, Golder, O’Hara; Vice Mayor Kalantari-Johnson; Mayor Keeley.
NOES: None.
ABSENT: Councilmember Trigueiro.
DISQUALIFIED: None.
APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
20.33 ORDINANCE NO. 2026-03
11 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. 2026-03 and that
it has been published or posted in
accordance with the Charter of the
City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator
20.34 RESOLUTION NO. NS-30,XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ
AUTHORIZING AND DIRECTING THE CITY MANAGER TO SUBMIT THE PROPOSED AMENDMENTS TO TITLE 24, THE ZONING ORDINANCE OF THE CITY
OF SANTA CRUZ MUNICIPAL CODE, AS LOCAL COASTAL PROGRAM
IMPLEMENTATION PLAN AMENDMENTS TO THE CALIFORNIA COASTAL
COMMISSION FOR FINAL CERTIFICATION
WHEREAS, 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 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
20.35 RESOLUTION NO. NS-30,XXX
2 as any additional changes needed to comply with state ADU law; and WHEREAS, on February 10, 2026, the City Council held a public hearing where the proposed amendments to the Municipal Code were introduced for publication; and WHEREAS, on February 24, 2026, the City Council held a public hearing where the proposed amendments to the Municipal Code were approved; and WHEREAS, in making their decisions, including this direction, the Council considered the full public record for said items, including but not limited to the staff reports and associated materials in the packet; and
WHEREAS, the City Council now finds:
1. The proposed amendments to Title 24 are in the public interest as they conform with state law changes to support the development of ADUs and JADUs and improve clarity of existing regulations.
2. The proposed amendments to Title 24 are consistent and compatible with the General Plan and any implementation programs that may be affected.
3. The proposed amendments to Title 24 are intended to be carried out in a manner fully in conformity with the Coastal Act (CA Section 30510).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz that it hereby directs the City Manager to submit the Local Coastal Program Implementation Plan changes, as shown in in Ordinance 2026-03 that makes modifications to Title 24 of the City of Santa Cruz Municipal Code, to the Coastal Commission for certification.
BE IT FURTHER RESOLVED, that amendments to the Local Coastal Implementation Plan will become effective inside the Coastal Zone upon final certification by the California Coastal Commission.
PASSED AND ADOPTED this 24th day of February, 2026, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
20.36 Proof of Publication
(2015 C.C.P.)
I, the undersigned, declare:
That I caused the attached legal notice/advertisement to be published in the Santa Cruz Good Times, a weekly newspaper published and circulated in the County of Santa Cruz, and adjudged a newspaper of general circulation by the Superior Court of California in and for the County of Santa Cruz, under Proceeding No. 68833; and that the legal notice/advertisement was published in the above-named newspaper on the following date(s), to wit:
February 18, 2026
I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge.
This 18th day of February, 2026, Santa Cruz, California ____________________________
Julia Wood
Deputy City Clerk Administrator
20.37 DECLARATION OF POSTING
STATE OF CALIFORNIA )
) SS.
COUNTY OF SANTA CRUZ )
On the 18th day of February, 2026, I posted conspicuously in three public places within the City of Santa Cruz, Ordinance No. 2026-02, to wit:
1. City Hall: 809 Center Street: Bulletin Board outside Room 9/10
2. City Hall: Bulletin Board outside Council Chambers
3. The City of Santa Cruz website
The document, posted in its entirety, consists of pages 1—21.
I declare under penalty of perjury that the foregoing is true and correct. Executed this 18th day of February, 2026, in Santa Cruz, California.
_______________________________
Julia Wood
Deputy City Clerk Administrator
20.38 Proof of Publication
(2015 C.C.P.)
I, the undersigned, declare:
That I caused the attached legal notice/advertisement to be published in the Santa Cruz Good Times, a weekly newspaper published and circulated in the County of Santa Cruz, and adjudged a newspaper of general circulation by the Superior Court of California in and for the County of Santa Cruz, under Proceeding No. 68833; and that the legal notice/advertisement was published in the above-named newspaper on the following date(s), to wit:
February 18, 2026
I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge.
This 18th day of February, 2026, Santa Cruz, California ____________________________
Julia Wood
Deputy City Clerk Administrator
20.39 DECLARATION OF POSTING
STATE OF CALIFORNIA )
) SS.
COUNTY OF SANTA CRUZ )
On the 18th day of February, 2026, I posted conspicuously in three public places within the City of Santa Cruz, Ordinance No. 2026-03, to wit:
1. City Hall: 809 Center Street: Bulletin Board outside Room 9/10
2. City Hall: Bulletin Board outside Council Chambers
3. The City of Santa Cruz website
The document, posted in its entirety, consists of pages 1—11.
I declare under penalty of perjury that the foregoing is true and correct. Executed this 18th day of February, 2026, in Santa Cruz, California.
_______________________________
Julia Wood
Deputy City Clerk Administrator
20.40 City Council
AGENDA REPORT
DATE: 02/05/2026
AGENDA OF: 02/24/2026
DEPARTMENT: Public Works
SUBJECT: E-Bike Regulation Concepts (PW)
LOCATION: Citywide
RECOMMENDATION: Motion to:
1) Introduce for publication an ordinance amending Chapter 10.68 of the Santa Cruz Municipal Code pertaining to bicycles;
2) Adopt a finding of categorical exemption pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15307 (Actions by Regulatory Agencies for Protection of Natural Resources) and Section 15308 (Actions by Regulatory Agencies for Protection of the Environment);
3) Direct staff to continue coordination with state and regional partners to address concerns related to speed and age limits for e-bikes;
4) Direct staff to continue efforts to expand e-bike education, with an emphasis on partnership with Santa Cruz City Schools; and
5) Direct staff to continue to seek outside funding to provide continued and expanded e-bike education for youth and community members.
BACKGROUND: The City of Santa Cruz (City) has long been a leader in promoting multimodal transportation. The community has set ambitious goals, including a Climate Action Plan goal to achieve 23% bicycle mode share by 2030 and 30% bicycle mode share by 2035. To achieve this, the City has spent decades building out a safer, more connected bicycle network. To complement the infrastructure investments, the City has sponsored, funded, and promoted education and encouragement for all members of the community, with special focus on schools.
Through grant programs, school populations have had lessons in safe riding skills and encouragement to ride their bikes for daily trips. As a result of investments in infrastructure, education, and encouragement, more people are riding bikes, including e-bikes. The popularity of e-bikes has also significantly increased across California. E-bikes provide accessible and sustainable transportation, reduce vehicle miles traveled, and offer mobility options.
21.1 With this rise in e-bike use, Cities across the state are also observing rising concerns about safety, particularly on shared-use paths, in school zones, and with younger riders. City Council and members of the community have expressed similar concerns about the emerging increase of e-bikes on our roadways, with particular concern for speed, rider safety, and following rules of the road.
California Vehicle Code (CVC) §21207.5 allows local jurisdictions to regulate Class 1 and Class 2 e-bikes on bike paths and trails, and cities may restrict Class 3 e-bikes on certain facilities. The state, however, does not currently require licensing, registration, or insurance for e-bike riders.
At the April 22, 2025, City Council meeting, the Council reviewed the design options for the Bay Corridor. As part of the motion for that item, Councilmember O’Hara included the following language:
Direct staff to return to Council, in a reasonable time frame in relation to emerging Statewide legislation, with recommendations for local regulations and infrastructure enhancements specific to e-bike use, including but not limited to speed limits, rider age guidelines, helmet enforcement strategies, signage improvements, and insurance and licensing to ensure safe multimodal use.
Subsequent to this direction, staff presented policy alternatives to the Transportation and Public Works Commission (TPWC) at their September 25, 2025 meeting. TPWC direction included prioritizing partnering with Santa Cruz City Schools for e-bike education, enforcement of nonstreet legal vehicles, updating the Municipal Code to address changes to state law, and pursuing state level legislative changes to address young rider safety.
Staff reviewed this information with Councilmembers Golder, O’Hara, and Vice Mayor Kalantari Johnson, who all supported the proposed direction presented in this report.
DISCUSSION: As part of this review, staff coordinated with others working in the space, including other coastal cities, neighboring jurisdictions, the California Bicycle Coalition, and local advocacy organizations. Additionally, Senate Bill 381 (SB 381) directed the Mineta Transportation Institute at San Jose State University to conduct an e-bike study to inform efforts to improve safety of users. This report was released in December 2025 and informs the recommendations in this report.
E-bikes are defined in CVC §312.5 to be less than 750 watts and have fully operable pedals.
There are three defined classes of e-bikes: Class 1 provides pedal assist up to 20 miles per hour, Class 2 includes a throttle and provides pedal assist up to 20 miles per hour, and Class 3 provides pedal assist up to 28 miles per hour. Riders must be at least 16 years old to operate a Class 3 ebike, and all Class 3 riders must wear helmets. All e-bikes designed to carry passengers are permitted to carry passengers.
There are many vendors that sell devices marketed as e-bikes that do not meet this definition.
The motor may be too large, the speed may go above the established thresholds, or they may not have pedals. These bikes are not e-bikes as defined in California Vehicle Code. Santa Cruz Police Department has begun impounding these non-street legal vehicles and will continue to do so.
21.2 What Are We Already Doing
Infrastructure: Public Works continues to lead in the implementation of safer bike infrastructure.
Data shows that creating networks of safe bike infrastructure increases both real and perceived safety.
Education: The City continues to stand up a robust education program. Historically, the City has secured funds for Ecology Action to provide walking education for all 2nd graders and biking education for all 5th graders. With the increase in e-bike usage, the City’s Public Works and Police departments have partnered with Ecology Action and Santa Cruz City Schools to expand these offerings to middle and high schools, with specific target messaging on e-bike safety. This education will continue this calendar year, and additional funding requests will be submitted for upcoming years.
This spring, Santa Cruz City Schools will pilot an e-bike parking permit requirement at Branciforte and Mission Hill Middle Schools. This program would require students who ride ebikes to school to attend a safety course in order to receive an e-bike parking permit. Permits would only be issued to street legal e-bikes.
Enforcement: The Santa Cruz Police Department (SCPD) enforces all rules of the road, including those related to bikes and e-bikes. E-bikes must follow the rules of the road, including stopping at signs and signals, riding in the correct direction, not riding recklessly, and all other elements of vehicle code.
SCPD has begun impounding non street legal “e-bike shaped devices”. These vehicles do not meet requirements in Vehicle Code, often having larger motors larger than e-bikes and being able to travel at speed higher than allowable. SCPD will continue these enforcement actions.
Helmets: Current state law requires all minors to wear a helmet when riding a bike or as a passenger on a bike. State law also requires all operators and passengers on Class 3 e-bikes to wear a helmet, which is an enforceable law. The City of Santa Cruz currently distributes free helmets to participants in the downtown GO Santa Cruz program.
Next Steps: This report is organized to cover the elements requested by Council, grouped by recommendations at state and local levels.
State Policy Changes: E-bike issues are fairly consistent statewide. Many of the methods of implementing change are done at the state level rather than locally. These include how e-bikes are classified, their allowable speed and power, age limits, and licensing and registration.
Speed: California Vehicle Code defines the speed and power allowed by the three classes of ebikes. Class 1 and 2 e-bikes can travel up to 20 mph, and Class 3 e-bikes can travel up to 28 mph. All legal e-bikes have a maximum power of 750 watts. According to the Mineta Transportation Institute, the “USA is a notable outlier with respect to both maximum watts and assisted speeds. The U.S. maximum wattage is three times more than Japan and the European Union” and “the 28 mph allowed for Class 3 electric bicycles in most states is considerably higher than all the other countries. (https://transweb.sjsu.edu/sites/default/files/2423-AgrawalElectric-Bicycle-Safety-Data-Policy.pdf)’. Maximum speeds in other countries range from
21.3 12mph in Japan to 20mph in Canada, with a 16mph maximum speed in China, Australia, and the European Union.
The MTI report recommends revising California law to lower the maximum power assisted speed, maximum rate of acceleration, and peak power to address issues related to speed (pages 142-143). Additionally, the MTI report recommends changing the existing three class system of e-bikes to a new low power/high power system. Low power would have a maximum speed of 15 mph and peak power of 750 watts. A high-power category would be more comparable to a moped, requiring a rider to be 16, have a license and registration, and allowing up to 30mph and peak power of 3000 watts.
Staff recommends the City work with state partners to support the MTI recommendations to revise the existing classification system. This would address concerns related to speed, age, licensing and registration, and would bring California closer in line with standards in other countries.
Rider Age: Staff have heard broad community and Council concerns regarding young riders on e-bikes. Concerns about youth on e-bikes are common in California, and all peer agencies have echoed these concerns. Capitola City Council has supported a minimum age of 14 for Class 2 ebikes. Outreach with parents and schools has included concerns for youth on e-bikes but has also highlighted positive equity opportunities for independent travel. Of note, multiple people stated that e-bikes allow their children to get to and from school on time and to be able to attend extracurriculars, where those students could not otherwise attend because of lack of transportation.
Santa Cruz County Public Health Department conducted a review of Emergency Medical Service (EMS) data from 2019-2024 to attempt to summarize e-bike related injuries. While this data has limiting factors, over the period reviewed 18.1% of e-bike related EMS patients were 17 or younger, and the mean age of e-bike related EMS patients was 36.1. This closely resembles the national data in the MTI report, which reflects 20% of patients are 17 or under, and that patients age 65 and older have the highest hospitalization rate and highest head injury rate.
There are two existing pilot programs authorized by state legislation that restrict e-bike rider age.
AB 1778 in Marin County authorizes restricting youth under 16 from riding Class 2 e-bikes (throttles) and require helmets for all Class 2 users. This pilot program is in effect through January 1, 2029. In San Diego County, AB 2234 allows local agencies to ban anyone under 12 from riding a Class 1 or 2 e-bike. This pilot program is in effect through January 1, 2029. The Transportation and Public Works Commission recommended the City pursue methods to join these pilots or work to achieve similar allowable actions in Santa Cruz County.
Staff recommends that the City partner with other jurisdictions in the County and beyond to pursue statewide changes to age limits for Class 1 and 2 e-bikes where supported by public health data. Additionally, staff will continue to partner with Ecology Action on e-bike training for older riders as part of GO Santa Cruz offerings.
Local Policy Changes: While most changes to e-bike regulation will occur at the state level, there are areas in existing policy that could be modified to support the overall goal of increasing safe multimodal mobility.
21.4 Changes to Existing Municipal Code: SCMC 10.68 governs bicycle use in the City of Santa Cruz. Multiple sections of existing code are out of date and in need of updating.
Staff recommends adoption of the attached proposed updates, which include:
Update definitions in sections 10.68.010 and 10.68.015 to match current state law. Remove section “10.68.090 Passengers” as this is defined in state law. Update 10.68.110 Bicycle License Requirement for compliance with state law. Updating multiple sections to include reference to “e-bike” consistent with revised definitions.
Speed Limits: The allowable speed of the three classes of e-bikes is set by California Vehicle Code. Local agencies may restrict Class 3 (28mph maximum) e-bikes from multiuse trails in some specific use cases.
Public Works consulted with the Police Department on options to set and enforce speed limits for multiuse paths. While the City has the authority to set speed limits on paths, SCPD has identified that enforcement would be challenging due to technology limitations as radars are not calibrated for bicycles.
Staff recommends support for SCPD to continue to target enforcement and impoundment of devices that are not e-bikes that travel faster than allowed by state law.
Education: Public Works and Parks and Recreation are currently implementing a “social norming” campaign promoting good behavior in shared environments. This campaign, called Cruz Kind, promotes appropriate speed, sharing space, and modeling good behavior where multiple user groups are sharing space. This signage campaign will be installed on the Rail Trail and West Cliff Drive in the coming weeks.
In coordination with community and peer agencies, education of youth was a top concern. The City already funds extensive education for active transportation. In the coming year and beyond, the City will continue to seek funding and work with partners at Santa Cruz City Schools and local nonprofits to expand e-bike specific education and encouragement offerings.
Staff recommends monitoring the feedback on the new Cruz Kind signage and expanding it to additional areas if the messaging is successful. Staff also recommends continuing to aggressively seek funding to continue and expand e-bike specific education to all age groups, with an emphasis on youth.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:
CEQA review is not required for this item because the action recommended does not meet the definition of a Project under CEQA. (Public Resources Code § 21065; CEQA Guidelines § 15378).
To the extent that the proposed Council action is deemed a CEQA “project”, the following categorical exemptions apply: CEQA Guidelines Section 15307 (Actions by Regulatory Agencies for Protection of Natural Resources) and Section 15308 (Actions by Regulatory Agencies for Protection of the Environment).
21.5 HEALTH IN ALL POLICIES (HiAP): This project promotes the following Health in All Policies Conditions: Health and Wellness and Healthy Environment. Providing a safe framework for people to be able to use active transportation supports making healthy choices for people and environment.
FISCAL IMPACT:
1. The recommendation in this report impacts the General Fund: No
2. This recommendation requires a budget adjustment: No
3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: There is no cost associated with this item.
Prepared By:
Claire Gallogly
Principal Transportation
Planner
Submitted By:
Nathan Nguyen, P.E.
Director of Public Works
Approved By:
Matt Huffaker
City Manager
ATTACHMENTS:
1. ORDINANCE UPDATE - CLEAN VERSION.DOCX
2. ORDINANCE UPDATE - REDLINE.DOCX
21.6 ORDINANCE NO. 2026-XX
AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING MUNICIPAL CODE CHAPTER 10.68 – BICYCLES, ADOPTING AMENDMENTS TO UPDATE LANGUAGE TO
CONFORM WITH STATE LAW
WHEREAS, the Santa Cruz Municipal Code locally regulates certain elements of bicycles; and
WHEREAS, the California Vehicle Code defines and regulates bicycle and electric bicycles (e-bikes); and
WHEREAS, AB 1909 (2023) ended the ability to mandate bicycle licensing.
BE IT ORDAINED by the City Council of the City of Santa Cruz as follows:
Section 1. Incorporation of Recitals. The foregoing recitals are found to be true and correct, and are incorporated by this reference into this action.
Section 2. Chapter 10.68 of the Santa Cruz Municipal Code is hereby amended to read as follows:
10.68.010 BICYCLES DEFINED.
A “bicycle” is defined in California Vehicle Code Section 231.
10.68.015 ELECTRIC BICYCLE (E-BIKE) DEFINED.
A “electric bicycle” or “e-bike” is an electric bicycle as defined by California Vehicle Code Section 312.5.
10.68.020 STATE AUTHORITY.
Reference is made by this section to California Vehicle Code Division 11, Article 1, 4 relating to laws applicable to bicycle use and equipment, and by such reference any and all statutes relating to the operation of bicycles are incorporated into this chapter. Every person operating a bicycle or e-bike on a roadway has all the rights and is subject to all the duties applicable to the driver of a vehicle, by the laws of this state or by the ordinances of this city except those provisions of laws and ordinances which by their nature can have no application, and except as otherwise provided in this chapter.
10.68.030 OPERATION UPON SIDEWALKS.
No person shall ride a bicycle or electric bicycle upon sidewalks fronting and adjacent to commercial establishments, stores, or buildings used for business or commercial purposes. Every person operating a bicycle or electric bicycle upon a sidewalk where permitted shall yield the rightof-way to any pedestrians on such sidewalk.
21.7 ORDINANCE NO. 2026-XX
10.68.050 PARKING.
No person shall park, stand, or chain any bicycle or e-bike against windows, street trees, planter boxes, shrubs or planted areas, or on the main traveled portion of any sidewalk or public way, nor in such manner as to constitute a hazard to pedestrians, vehicular traffic, or property. If no bicycle racks or other facilities intended to be used for bicycle or e-bike parking are available within 50 feet, bicycles or e-bikes may be parked on the sidewalk or locked to a parking meter pole, in an upright position parallel to and within twenty-four inches of the street curb.
10.68.060 BICYCLE PARKING PROHIBITED.
No person shall park a bicycle or e-bike at any location which has been posted with signs prohibiting such parking.
10.68.070 RACING AND TRICK RIDING.
No person operating a bicycle or e-bike upon a public highway or street shall participate in any unauthorized race, speed or endurance contest; provided, however, that the city council may authorize bicycle or e-bike racing and trick riding events together with temporary closure of a portion of any street pursuant to Section 21101(e) of the State Vehicle Code.
10.68.080 PLACING OF BICYCLE RACKS.
No person shall place or maintain on any public right-of-way a bicycle rack or contrivance used for the holding or parking of bicycles without first being issued a permit therefor by the director of public works.
10.68.100 ENTERING PUBLIC RIGHT-OF-WAY.
The operator of a bicycle ore-bike , on approaching any public right-of-way when the view is obstructed, shall stop such bicycle or e-bike immediately prior to entering upon such public rightof-way.
10.68.110 OPTIONAL BICYCLE LICENSE.
A “bicycle,” defined for licensing under this section, is any device upon which a person may ride, propelled by human power through a belt, chain, or gears, and having either two or three wheels in tandem or tricycle arrangement, and which has wheels at least twenty inches in diameter and a frame of at least fourteen inches; or any e-bike as defined by the State Vehicle Code.
10.68.120 OFFICIAL LICENSING AGENT.
The city manager is designated as official licensing agent and is authorized to appoint any person or persons to assist in the capacity of bicycle licensing agencies. Each licensing agency shall license bicycles for persons residing in the city and may license bicycles for nonresident persons upon request. Licensing agencies shall submit monthly reports to the licensing agent, indicating a monthly summary of all licensing activities and fees collected.
10.68.130 BICYCLE REGISTRATION CERTIFICATE.
At the time any person licenses a bicycle and pays the established license fee in accordance with the provisions of this chapter, the licensing agency shall provide him with a registration certificate bearing the date, owner’s name, address, telephone number, bicycle license number, the bicycle manufacturer, type and frame number and any other descriptive material concerning the bicycle
21.8 ORDINANCE NO. 2026-XX
deemed necessary by the licensing agent, and provisions for the transfer of ownership of said bicycle. In addition, at the time of licensing, the bicycle owner shall be issued his bicycle license bearing the unique number reflecting the proper indicia procured from the Director of Motor Vehicles pursuant to Section 39001 of the California Vehicle Code. The bicycle license shall remain in effect for the period of three years.
10.68.140 LICENSE REPLACEMENT.
In the event any bicycle license issued pursuant to the provisions of this chapter is lost or stolen, the licensee shall immediately notify the licensing agency of such loss, and shall apply to said licensing agency for a new bicycle license; whereupon, said licensing agency shall issue to such licensee a new bicycle license.
10.68.150 FEES.
The fees required to be paid pursuant to the provisions of this chapter shall be those fees established by resolution adopted by the city council.
10.68.160 TAMPERING.
It is unlawful for any person to remove, destroy, mutilate or in any way alter or tamper with any bicycle license issued pursuant to the provisions of this chapter.
It is unlawful for any person to remove, alter or mutilate the serial number of any bicycle frame licensed under the provisions of this chapter.
10.68.170 BICYCLE FUND.
All amounts collected in excess of the cost of conducting and administering the bicycle licensing program, including reasonable cost-reimbursement to licensing agencies, shall be placed in a special bicycle fund. The bicycle fund shall be used to improve bicycle safety programs and to establish and maintain bicycle facilities, including, but not limited to, bicycle paths and lanes.
10.68.180 AUTHORITY TO NUMBER BICYCLE FRAMES.
All bicycles sold shall have, as a means of identification, serial numbers marked on the frame of the bicycle. Licensing agencies may mark numbers on bicycles not bearing manufacturer’s serial numbers.
10.68.190 RENTAL AGENCIES.
A rental agency operating within the city shall not rent or offer any bicycle for rent unless said bicycle is licensed as provided in this chapter.
10.68.200 OPERATION OF E-BIKES ON MUNICIPAL PATHWAYS NOT WITHIN THE ROADWAY.
E-Bikes may be operated on any municipal bicycle path, trail, or bikeway, unless the Santa Cruz city council or the governing body of the public agency having jurisdiction over such path or bikeway prohibits such operation by resolution. Any gasoline-powered transportation device (motorized scooters, motorized bicycles or motorized skateboards) shall not be operated on any municipal bikeway.
21.9 ORDINANCE NO. 2026-XX
10.68.210 EXCEPTION FOR POLICE ENFORCEMENT ACTIVITIES.
Nothing in this code shall preclude police officers from operating bicycles, while acting within the scope of their duties, in any reasonable manner when it is for the purpose of taking enforcement action or carrying out the performance of their duties.
PASSED FOR PUBLICATION this 24th 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 10th day of March, 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
21.10 ORDINANCE NO. 202X-XX
AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING MUNICIPAL CODE CHAPTER 10.68 – BICYCLES, ADOPTING AMENDMENTS TO UPDATE LANGUAGE TO
CONFORM WITH STATE LAW
WHEREAS, the Santa Cruz Municipal Code locally regulates certain elements of bicycles; and
WHEREAS, the California Vehicle Code defines and regulates bicycle and electric bicycles (e-bikes); and
WHEREAS, AB 1909 (2023) ended the ability to mandate bicycle licensing.
BE IT ORDAINED by the City Council of the City of Santa Cruz as follows:
Section 1. Incorporation of Recitals. The foregoing recitals are found to be true and correct, and are incorporated by this reference into this action.
Section 2. Chapter 10.68 of the Santa Cruz Municipal Code is hereby amended to read as follows:
10.68.010 BICYCLES DEFINED.
A “bicycle” is defined in California Vehicle Code Section 231. a device upon which a person may ride, propelled exclusively by human power through a belt, chain, or gears, and having one or more wheels.
(Ord. 2001-05 § 1, 2001: Ord. 76-15 § 1 (part), 1976).
10.68.015 PERSONAL TRANSPORTATION DEVICE (“PTD”) ELECTRIC BICYCLE (E-BIKE) DEFINED.
An “electric bicycle” or “e-bike” is “personal transportation device” or “PTD” is an electric bicycle as defined by California Vehicle Code Section 312.5. 406(b) and a motorized scooter as defined by California Vehicle Code Section 407.5, both of which are capable of transporting persons from one place to another at a maximum speed of not more than 20 miles per hour. “PTD” does not include a moped as defined in California Vehicle Code Section 406(a), a gas-powered motorized scooter as defined in California Vehicle Code Section 407.5(b), or a motorized skateboard as referenced in California Vehicle Code Section 21968.
(Ord. 2001-05 § 2, 2001).
10.68.020 STATE AUTHORITY.
21.11 ORDINANCE NO. 202X-XX
2 Reference is made by this section to California Vehicle Code Division 11, Article 1, 4 relating to laws applicable to bicycle use and equipment, and by such reference any and all statutes relating to the operation of bicycles are incorporated into this chapter. Every person operating a bicycle or a PTD e-bike on a roadway has all the rights and is subject to all the duties applicable to the driver of a vehicle, by the laws of this state or by the ordinances of this city except those provisions of laws and ordinances which by their nature can have no application, and except as otherwise provided in this chapter. (Ord. 2001-05 § 3, 2001: Ord. 76-15 § 1 (part), 1976).
10.68.030 OPERATION UPON SIDEWALKS.
No person shall ride a bicycle or electric bicycle upon sidewalks fronting and adjacent to commercial establishments, stores, or buildings used for business or commercial purposes. Every person operating a bicycle or electric bicycle upon a sidewalk where permitted shall yield the right-of-way to any pedestrians on such sidewalk. In accordance with California Vehicle Code Section 21235(g), the operator of a motorized scooter shall not operate the motorized scooter upon any sidewalk except as may be necessary to enter or leave adjacent property.
(Ord. 2001-05 § 4, 2001: Ord. 76-15 § 1 (part), 1976).
10.68.040 GROUP OPERATION.
No person or persons shall ride or operate bicycles or PTD’s e-bikes other than single file, except on paths or parts of a roadway set aside for the exclusive use of bicycles and e-bikes PTD’s.
(Ord. 2001-05 § 5, 2001: Ord. 76-15 § 1 (part), 1976).
10.68.050 PARKING.
No person shall park, stand, or chain any bicycle or PTD e-bike against windows, street trees, planter boxes, shrubs or planted areas, or on the main traveled portion of any sidewalk or public way, nor in such manner as to constitute a hazard to pedestrians, vehicular traffic, or property. If no bicycle racks or other facilities intended to be used for bicycle or PTD e-bike parking are available within 50 feet, bicycles or PTD’s e-bikes may be parked on the sidewalk or locked to a parking meter pole, in an upright position parallel to and within twenty-four inches of the street curb. (Ord. 2001-05 § 6, 2001: Ord. 76-15 § 1 (part), 1976).
10.68.060 BICYCLE PARKING PROHIBITED.
No person shall park a bicycle or PTD e-bike at any location which has been posted with signs prohibiting such parking.
21.12 ORDINANCE NO. 202X-XX
3 (Ord. 2001-05 § 7, 2001: Ord. 76-15 § 1 (part), 1976).
10.68.070 RACING AND TRICK RIDING.
No person operating a bicycle or PTD e-bike upon a public highway or street shall participate in any unauthorized race, speed or endurance contest; provided, however, that the city council may authorize bicycle or PTD e-bike racing and trick riding events together with temporary closure of a portion of any street pursuant to Section 21101(e) of the State Vehicle Code.
(Ord. 2001-05 § 8, 2001: Ord. 76-15 § 1 (part), 1976).
10.68.080 PLACING OF BICYCLE RACKS.
No person shall place or maintain on any public right-of-way a bicycle rack or contrivance used for the holding or parking of bicycles without first being issued a permit therefor by the director of public works.
(Ord. 76-15 § 1 (part), 1976).
10.68.090 PASSENGERS.
No person riding or operating a bicycle or PTD shall carry another person on said bicycle or PTD unless such person or passenger is seated upon an individual seat or carrier with footrests separate from those intended to be used by the operator.
No person shall ride upon a bicycle or PTD as a passenger, unless he or she is seated upon an individual seat or carrier with footrests separate from those intended to be used by the operator.
(Ord. 2001-05 § 9, 2001: Ord. 76-15 § 1 (part), 1976).
10.68.100 ENTERING PUBLIC RIGHT-OF-WAY.
The operator of a bicycle or PTDe-bike, on approaching any public right-of-way when the view is obstructed, shall stop such bicycle or PTD e-bike immediately prior to entering upon such public right-of-way.
(Ord. 2001-05 § 10, 2001: Ord. 76-15 § 1 (part), 1976).
10.68.110 OPTIONAL BICYCLE LICENSE REQUIREMENT.
It is unlawful for any person to operate a bicycle on any public street or sidewalk, or upon any public path set aside for the exclusive use of bicycles, unless such bicycle, as defined in this section, has been licensed under the provisions of this chapter or under licensing provisions of another public agency.
21.13 ORDINANCE NO. 202X-XX
4 A “bicycle,” defined for licensing requirements under this section, is any device upon which a person may ride, propelled by human power through a belt, chain, or gears, and having either two or three wheels in tandem or tricycle arrangement, and which has wheels at least twenty inches in diameter and a frame of at least fourteen inches; or any motorized bicycle as defined by the State Vehicle Code. (Ord. 76-15 § 1 (part), 1976).
10.68.120 OFFICIAL LICENSING AGENT.
The city manager is designated as official licensing agent and is authorized to appoint any person or persons to assist in the capacity of bicycle licensing agencies. Each licensing agency shall license bicycles for persons residing in the city and may license bicycles for nonresident persons upon request. Licensing agencies shall submit monthly reports to the licensing agent, indicating a monthly summary of all licensing activities and fees collected.
(Ord. 76-15 § 1 (part), 1976).
10.68.130 BICYCLE REGISTRATION CERTIFICATE.
At the time any person licenses a bicycle and pays the established license fee in accordance with the provisions of this chapter, the licensing agency shall provide him with a registration certificate bearing the date, owner’s name, address, telephone number, bicycle license number, the bicycle manufacturer, type and frame number and any other descriptive material concerning the bicycle deemed necessary by the licensing agent, and provisions for the transfer of ownership of said bicycle. In addition, at the time of licensing, the bicycle owner shall be issued his bicycle license bearing the unique number reflecting the proper indicia procured from the Director of Motor Vehicles pursuant to Section 39001 of the California Vehicle Code. The bicycle license shall remain in effect for the period of three years.
(Ord. 76-15 § 1 (part), 1976).
10.68.140 LICENSE REPLACEMENT.
In the event any bicycle license issued pursuant to the provisions of this chapter is lost or stolen, the licensee shall immediately notify the licensing agency of such loss, and shall apply to said licensing agency for a new bicycle license; whereupon, said licensing agency shall issue to such licensee a new bicycle license. (Ord. 76-15 § 1 (part), 1976).
10.68.150 FEES.
21.14 ORDINANCE NO. 202X-XX
5 The fees required to be paid pursuant to the provisions of this chapter shall be those fees established by resolution adopted by the city council. (Ord. 76-15 § 1 (part), 1976).
10.68.160 TAMPERING.
It is unlawful for any person to remove, destroy, mutilate or in any way alter or tamper with any bicycle license issued pursuant to the provisions of this chapter.
It is unlawful for any person to remove, alter or mutilate the serial number of any bicycle frame licensed under the provisions of this chapter.
(Ord. 76-15 § 1 (part), 1976).
10.68.170 BICYCLE FUND.
All amounts collected in excess of the cost of conducting and administering the bicycle licensing program, including reasonable cost-reimbursement to licensing agencies, shall be placed in a special bicycle fund. The bicycle fund shall be used to improve bicycle safety programs and to establish and maintain bicycle facilities, including, but not limited to, bicycle paths and lanes.
(Ord. 76-15 § 1 (part), 1976).
10.68.180 AUTHORITY TO NUMBER BICYCLE FRAMES.
All bicycles sold shall have, as a means of identification, serial numbers marked on the frame of the bicycle. Licensing agencies may mark numbers on bicycles not bearing manufacturer’s serial numbers.
(Ord. 76-15 § 1 (part), 1976).
10.68.190 RENTAL AGENCIES.
A rental agency operating within the city shall not rent or offer any bicycle for rent unless said bicycle is licensed as provided in this chapter.
(Ord. 76-15 § 1 (part), 1976).
10.68.200 OPERATION OF PTD’S E-BIKES ON MUNICIPAL PATHWAYS NOT WITHIN THE ROADWAY.
PTD’s E-bikes may be operated on any municipal bicycle path, trail, or bikeway, unless the Santa Cruz city council or the governing body of the public agency having jurisdiction over such path or bikeway prohibits such operation by resolution. Any gasoline-powered transportation device (motorized scooters, motorized bicycles or motorized skateboards) shall not be operated on any municipal bikeway.
21.15 ORDINANCE NO. 202X-XX
6 (Ord. 2001-05 § 11, 2001: Ord. 77-49 § 1, 1978).
10.68.210 EXCEPTION FOR POLICE ENFORCEMENT ACTIVITIES.
Nothing in this code shall preclude police officers from operating bicycles, while acting within the scope of their duties, in any reasonable manner when it is for the purpose of taking enforcement action or carrying out the performance of their duties.
PASSED FOR PUBLICATION this 24th 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 10th day of March, 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
21.16 ORDINANCE NO. 202X-XX
7 it has been published or posted in
accordance with the Charter of the
City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator
21.17 Brittany Inclan
From: A Webb <[email protected]>
Sent: Monday, February 23, 2026 2:38 PM
To: City Council
Subject: Feb 24, 2026 City Council Agenda Item #21 re:e-bike regulation/education in City Dear Mayor and Citycouncilmembers,
Thank you for taking steps towards making a safer travel experience for all using and sharing roadways, bike lanes or authorized pathways with motorized bikes. I know this is a complex situation with the different types of motorized bikes now on the market, but this is a good start and sorely needed. It seems much of this safety emphasis can extend to non-motorized bike safety education too.
If they are not included in the regulatory and educational materials, can you please include these items with a focus on safe operations, speed limits for each type of use (bike lanes, roadways, pathways, parking lots) and bike type (non-motorized and ebikes), with all riders wearing helmets and not exceeding the number of passengers the bike was designed for.
1. Safely sharing car lanes without bike lanes - which include large commercial vehicles;
2. Single and 2-way bike lanes, speeds
3. Multi-use paths, including Rail Trail, West Cliff Drive (pathway should eliminate motorized bike use - too crowded/dangerous), and in area parks (city, state, national). Because we have locals and tourists using the city e-bike stations, there are a lot of inexperienced riders jumping onto every pathway - none of whom wear helmets - including up the coast to state and national parks and trails where they don't belong. Riders should first learn what is allowed and the rules. Perhaps an app at the rental stations where an area destination can be entered with an easy pop up on rules, if it doesn't already exist.
4. Private property - obey No Trespassing signs such as in communities like MH Parks, and where access is permitted follow all posted speed limits (often 5, 10, or 15mph)
5. Parking lots - I've had so many near misses with speeding bikes (with and some without motors, but ebikes were the worst due to speed) where slow careful speed limits needed, and watching for cars backing out, people walking. The ebikes encounters were zig-zagging all over like it's a personal obstacle course, creating opportunities for accidents. I've recognized kids of neighbors who were running errands for their parent to the grocery, and then carry those in their hands while riding ebikes, not following any rules of the road that we were sharing. Not good.
Thank you for your efforts towards a safer travel experience for all in the City, and for consideration of these comments.
Sincerely,
Anita Webb
21.18 City of Santa Cruz long time resident
21.19 420 Capitola Avenue
Capitola, California 95010
Telephone: (831) 475-7300
FAX: (831) 479-8879
Website: http://www.cityofcapitola.org
Santa Cruz City Hall
809 Center Street
Santa Cruz, CA, 95060
February 23, 2026
SUBJECT: E-Bike Safety for Youth
Dear Mayor Fred Keely and Santa Cruz City Council Members, I am writing to express my support for the City of Santa Cruz’s efforts to strengthen electric bicycle (e-bike) safety and education, particularly for younger members of our shared community. This is an issue of deep importance to the City of Capitola, where our City Council and residents alike are committed to advancing policies that protect public safety while supporting active and sustainable transportation.
At the direction of the full Capitola City Council, on April 10, 2025, we submitted the attached letter to our state representatives outlining three practical proposals for state legislation we believe would have meaningful and lasting impact. These recommendations reflect both our local experience and our belief that coordinated, thoughtful, action is essential to addressing the rapid growth and evolving technology of e-bikes.
We value Santa Cruz’s efforts to tackle this issue and would welcome the opportunity to collaborate in advancing shared strategies for regulation, education, and safety.
Thank you for your continued leadership and partnership.
Sincerely,
Margaux Morgan
Mayor, City of Capitola
Docusign Envelope ID: 4311CFCD-CC39-4968-80B2-04234408F681
21.20 Docusign Envelope ID: 4311CFCD-CC39-4968-80B2-04234408F681
21.21 Docusign Envelope ID: 4311CFCD-CC39-4968-80B2-04234408F681
21.22 E-Bike Regulation
Concepts
Claire Gallogly
City Council
February 24, 2026
21.23 Overview
Existing Conditions
Current Efforts
State Policy Changes: Focus Areas
Recommended Action
21.24 We’re Committed to Mode Shift
… and we need to talk about e-bikes
21.25 Shared Understanding:
What are E-Bikes?
21.26 Shared Understanding: What are NOT
E-Bikes?
21.27 Shared Understanding: What are the
rules?
Same:
• Rules of the road
• Under 18 wear a helmet
Different:
• Class 3:
• 16+
• Everyone wears a helmet
• Can regulate on multiuse
paths and trails
21.28 Why address it?
Council direction
Public Health efforts
Increasing use of e-bikes
Concerns about younger riders
21.29 What are we
already doing?
21.30 Infrastructure
Building bike network for all ages
and abilities
21.31 Education
Existing
• Elementary
• Middle
• High
• Adult
New
• Pilot Middle School Permit
• Expanded E-bike focus for
Middle and High
• Parent/Child Contracts
21.32 Enforcement
• All rules of the road
• Helmets
• Impound of “e-bike
shaped devices”
21.33 State Issues and
Policy Priorities
21.34 Speed Limits
• Class 1 and 2 e-bike can travel up to 20 mph and Class 3 ebikes can travel up to 28 mph • Set by California Vehicle Code, NOT locally
• Recommendation: work with state partners to support the MTI recommendations to revise the existing classification system
• Speed, age, licensing, registration
• Watch AB2346, which would allow local agency speed limit setting for active transportation facilities
21.35 • Safety and behavior issues
with younger, less
experienced riders riding
e-bikes.
• Access for kids to school,
extracurriculars
• Santa Cruz County: 18% of
e-bike related EMS are 17
or under, mean age 36.1
Rider Age Restrictions
21.36 Rider Age Restrictions
Recommendation: City partner with other jurisdictions in the County and beyond to pursue statewide changes to age
limits for Class 1 and 2 e-bikes where supported by public health data
• Example: state legislation expanding AB 1778 to include Santa Cruz County, banning those under 16 from Class 2 e-bikes. • Example: state legislation to expand AB 2234 to Santa Cruz County to allow agencies to ban anyone under 12 from riding a Class 1 or 2 e-bike.
21.37 Helmet Enforcement
• Issue: Helmet usage among e-bike
riders is inconsistent. Existing law
requires helmets for all minors and
for anyone on a Class 3 e-bike (CVC
21212). The fine for a helmet violation
is $25 (CVC 21212 (e)(1))
21.38 Signage and Facility Design
Policy Options:
• Develop and install
consistent signage across
city multiuse facilities
related to speed and mixed
user groups.
• “Social norming” marketing
campaign to reinforce
courteous speeds and
passing behavior in mixed
traffic areas.
21.39 Additional Efforts
• CalBike E-Mobility Council: informing state policy
• Active Transportation Research Group: using academic data to drive public policy
• SCC Public Health E-Bike Safety Subcommittee
• Santa Cruz City Schools Collaboration
• California Walks “Walk Bike Roll CA” curriculum
development
21.40 Current State Leg Introduced
• AB2346: speed limits on sidewalks, paths, Class IV
• AB1569: required bike safety course and parking permit for K-12
• AB1942: registration and license plates for Class 2 and 3 • SB1167: marketing of e-motos
• AB 1557: limits to 750 watts peak power
• SB956: placeholder for e-bike leg
21.41 Changes to Existing Municipal Code:
• SCMC 10.68 governs bicycle use in the City of Santa Cruz.
Multiple sections of this code are out of date and in need of updating.
• Update to reflect state law
• Reflect e-bikes as a mode
• Remove mandatory bike registration (AB 1909, 2023)
21.42 Thank you