CITY COUNCIL AGENDA
Regular Meeting - February 24, 2026
Council Chambers
809 Center Street
Santa Cruz
1:30 P.M. CLOSED SESSION
2:00 P.M. ORAL COMMUNICATIONS, CONSENT, CONSENT PUBLIC HEARING, AND
GENERAL BUSINESS
Council meetings are hybrid, and may be viewed remotely, using any of the following sources:
Click on Zoom link (no time delay): https://zoom.us/j/94684401344 Online at http://www.cityofsantacruz.com/government/city-council/council-meetings Online at Watch – Community Television of Santa Cruz County Comcast Channel 25
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1-669-900-9128
Enter the meeting ID number: 946 8440 1344
When prompted for a Participant ID, press #.
Press *9 on your phone to “raise your hand” when the Mayor calls for public comment. It will be your turn to speak when the Mayor calls on you. Press *6 to unmute yourself. The timer will then be set.
Correspondence to be included in the agenda packet must be received by 5:00 pm on Monday, February 23rd
PLEASE NOTE:
Council may take a break(s) as needed.
Requests for extra speaking time on items other than Oral Communications must be made by 5:00 p.m. on Sunday, February 22nd by emailing the Mayor and the City Clerk.
Approval will be confirmed via email.
[email protected] [email protected]
February 24, 2026 City Council 2
The City of Santa Cruz does not discriminate against persons with disabilities. Out of consideration for people with chemical sensitivities we ask that you attend fragrance free. Upon request, the agenda can be provided in a format to accommodate special needs. Additionally, if you wish to attend this public meeting and will require assistance such as an interpreter for American Sign Language, Spanish, or other special equipment, please call the City Clerk’s Department at 420-5030 at least five days in advance so that we can arrange for such special assistance, or email [email protected]. The Cal-Relay system number: 1-800-735-2922.
Si desea asistir a esta reunión pública y necesita ayuda - como un intérprete de lenguaje de señas americano, español u otro equipo especial - favor de llamar al Departamento de la Secretaría de la Ciudad al 420-5030 al menos cinco días antes para que podamos coordinar dicha asistencia especial o envié un correo electrónico a [email protected]. El número del sistema Cal-Relay es: 1-800-735-2922.
Agenda and Agenda Packet Materials: The City Council agenda and the complete agenda packet containing public records, which are not exempt from disclosure pursuant to the California Public Records Act, are available for review on the City’s website: www.santacruzca.gov/councilmeetings and at the Office of the City Clerk located at 809 Center Street, Room 8, Santa Cruz, California, during normal business hours.
Agenda Materials Submitted after Publication of the Agenda Packet: Pursuant to Government Code §54957.5, public records related to an open session agenda item submitted after distribution of the agenda packet are available at the same time they are distributed or made available to the legislative body on the City’s website at: www.santacruzca.gov/councilmeetings and are also available for public inspection at the Office of the City Clerk, 809 Center Street Room 8, Santa Cruz, California, during normal business hours, and at the Council meeting.
Need more information? Contact the City Clerk’s office at 831-420-5030. 1:30 PM
Statements of Disqualification
Public Comment on Closed Session Items
Closed Session
1. Conference With Legal Counsel – Liability Claims (Government Code §54956.95)
1) Claimant: Alan J. Mac
2) Claimant: James Morrissey
3) Claimant: Angelo Jason Mirizzi Kaplan
4) Claimant: Michael Benjamin Ruder
5) Claimant: David W. Turner
6) Claimant: Michael Deuschel
Claims against the City of Santa Cruz
February 24, 2026 City Council 3
Closed Session (continued)
2. Real Property Negotiations (Government Code §54956.8) Property: 37 Municipal Wharf (Gilda’s)
APN: 007-341-03
Owner: Charles Maier
City Negotiator: Bonnie Lipscomb
Negotiating Parties: City of Santa Cruz and Charles Maier dba Gilda’s Under Negotiation: Price, terms of payment, or both
3. Conference With Legal Counsel – Anticipated Litigation (Government Code §54956.9(d)(2))
Significant exposure to litigation (one potential case to be discussed) February 24, 2026 City Council 4
City Council
2:00 PM
Call to Order
Roll Call
Oral Communications - Members of the public may address Council on matters not on the agenda, but within the jurisdiction of the Council. 30 minutes is allocated for Oral Communications. No extra time for groups will be granted.
Presentation
4. Mayoral Proclamation Declaring February 20, 2026, as Government Communicators Day
Presiding Officer's Announcements
Statements of Disqualification
Additions and Deletions
City Attorney Report on Closed Session
Council Meeting Calendar
5. The City Council will review the meeting calendar attached to the agenda and revise it as necessary.
February 24, 2026 City Council 5
Consent Agenda
6. Minutes of the February 10, 2026 City Council Meeting (CC) LOCATION: None
Motion to approve as submitted.
7. Authorization to Participate in the Local Government Climate Alliance (CM)
LOCATION: Citywide
Motion to direct staff to participate in the Local Government Climate Alliance (LGCA) and provide ongoing authorization for involvement in LGCA activities, including coordinated state-level climate and energy advocacy.
8. Day Services Planning Update - Budget Adjustment (CM) LOCATION: Citywide
Motion to:
1) Adopt a resolution amending the Fiscal Year 2026 budget to appropriate up to $409,115 for the procurement and operation of expanded public hygiene access in the City, through a reallocation of currently budgeted funds in Homelessness Response and Community Programs; and
2) Direct staff to continue to collaborate with the County of Santa Cruz staff in further exploring additional options for providing access to basic hygiene and other services to support the unhoused community.
9. Approval of Three (3) Professional Services Agreements for Qualified Firms to Provide On-Call Grant Support Services (CM)
LOCATION: Citywide
Motion to approve and authorize the City Manager to execute a Professional Services Agreement with qualified firms in a form approved by the City Attorney for on-call grant support services not to exceed $100,000 per vendor per year over a three-year term. The Assistant City Manager is authorized to execute change orders within the approved budget.
February 24, 2026 City Council 6
Consent Agenda (continued)
10. 136 River Street Grant Administration - Budget Adjustment (ED) LOCATION: District 3
Motion to:
1) Adopt a resolution committing funding from the California State Department of Housing and Community Development (HCD) Permanent Local Housing Allocation (PLHA) Program in an amount of $623,298 as a loan to the 136 River Street Affordable Housing Project, an eligible affordable housing project;
2) Adopt a resolution amending the Fiscal Year 2026 budget to appropriate $1,800,000 in the Affordable Housing Trust Fund (AHTF), funded by State HCD through the Local Housing Trust Fund (LHTF) as a loan to 136 River Street Apartments Investors, L.P.;
3) Authorize the City Manager, or designee, to execute related PLHA and LHTF documents; and
4) Authorize staff to submit requests for reimbursement of PLHA and LHTF funds.
11. Authorization for Application and Acceptance of Prohousing Incentive Program Funds (ED)
LOCATION: District 5
Motion to adopt a resolution to approve application submittal and, if selected, receive an allocation of the 4th round of the Prohousing Incentive Program (PIP) and authorize the City Manager or designee to execute any documents or amendments related to the award, in a form approved by the City Attorney.
February 24, 2026 City Council 7
Consent Agenda (continued)
12. Municipal Wharf Lease Agreement with Santa Cruz Diner, Inc., dba Gilda’s for City-owned Commercial Space at 37 Municipal Wharf - Budget Adjustment (ED)
LOCATION: District 4
Motion to:
1) Approve and authorize the City Manager to execute the Municipal Wharf Lease Agreement with Santa Cruz Diner, Inc., and any documents, amendments or extensions of a non-substantive nature, in a form approved by the City Attorney, for the commercial retail space located at 37 Municipal Wharf;
2) Adopt a resolution amending the Fiscal Year 2026 budget to appropriate revenue in the amount of $4,233.00 to the 37 Municipal Wharf (w512601) project; and
3) Adopt a finding of categorical exemption pursuant to the following CEQA guidelines: 14 CCR 15301 (Existing Facilities) and 14 CCR 15061(b)(3) (Common Sense Exemption).
13. Design Services Contract for the Coral Street SUD Navigation Center (ED)
LOCATION: District 5
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).
February 24, 2026 City Council 8
Consent Agenda (continued)
14. Resolution Establishing the 2026 Security Deposit Interest Rate for Residential Rental Property (ED)
LOCATION: Citywide
Motion to adopt a resolution establishing the 2026 interest rate for the residential security deposits at 0.02% and rescinding Resolution No. NS30,444.
15. Liability Claims Filed Against the City of Santa Cruz (FN) 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.
16. Puerto Escondido, Oaxaca, Mexico Friendship City Status (PR) LOCATION: Citywide
Motion to approve the adoption of Puerto Escondido, Oaxaca, Mexico as a Friendship City as recommended and resolved by the Sister Cities Committee.
17. Purchase of Lift Vehicle (PW)
LOCATION: Citywide
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.
18. Purchase of Wastewater Collection Utility Truck (PW) LOCATION: Citywide
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.
February 24, 2026 City Council 9
Consent Agenda (continued)
19. SCMU Customer Assistance Program (UCAP) Update—Expansion to Include Multi-Family Customers - Budget Adjustment (WT) LOCATION: County
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).
End Consent Agenda
Consent Public Hearing
20. 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
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.
February 24, 2026 City Council 10
General Business
21. E-Bike Regulation Concepts (PW)
LOCATION: Citywide
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 ebikes; 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.
22. Review of 2025 State of California Legislation Impacting Land Use, Housing, Homelessness Response, and Economic Development (CD/ED/CM)
LOCATION: Citywide
Motion to accept the review of 2025 State of California legislation impacting land use, housing, homelessness response, and economic development.
Adjournment
February 24, 2026 City Council 11
INFORMATION ITEMS PREVIOUSLY DISTRIBUTED TO CITY COUNCILMEMBERS ADDENDUM TO CITY COUNCIL AGENDA – FEBRUARY 24, 2026
23. Economic Development: First Amendment to the Lease with Santa Cruz Metropolitan Transit District, dba Metro 2/3/26 (EDFYI 002)
24. Library: Incident Report – Santa Cruz Public Library 1st & 2nd Quarter 2025-2026 2/4/26 (LBFYI 023)
MAYOR'S PROCLAMATIONS
None Issued.
Advisory Body Appointments
The following positions are either currently vacant or the terms are due to expire.
Council will make appointments at a future meeting.
Board of Building and Fire Appeals One opening – at-large nomination.
Public Hearing
If, in the future, you wish to challenge in court any of the matters on this agenda for which a public hearing is to be conducted, you may be limited to raising only those issues which you (or someone else) raised orally at the public hearing or in written correspondence received by the City at or before the hearing.
Any person seeking to challenge a City Council decision made as a result of a proceeding in which, by law, a hearing is required to be given, evidence is required to be taken, and the discretion in the determination of facts is vested in the City Council, shall be required to commence that action either 60 days or 90 days following the date on which the decision becomes final as provided in Code of Civil Procedure Section 1094.6 Please refer to code of Civil Procedure 1094.6 to determine how to calculate when a decision becomes “final.” The 60-day rule applies to all public hearings conducted pursuant to the City’s Zoning Ordinance, Title 24, Santa Cruz Municipal Code. The 90-day rule applies to all other public hearings.