Santa Cruz City Council
March 24, 2026

AMENDED AND RESTATED LEASE AGREEMENT
THIS AMENDED AND RESTATED LEASE AGREEMENT (“Lease”) is made this _____ day of March 2026 between the CITY OF SANTA CRUZ, a municipal corporation (“City”) and SANTA CRUZ MUSEUM OF NATURAL HISTORY, a California non-profit corporation (“Museum”). City and Museum are hereinafter referred to individually as “Party” and collectively as “Parties. City and Museum agree to all of the terms and conditions of this Lease as follows:

RECITALS
A. City owns the historic former Carnegie Library building and surrounding property, including Tyrrell Park, at 1305 East Cliff Drive (the “Property”); and B. Museum and City previously entered into a Lease commencing December 15, 2010 (“Original Lease Agreement”) for Museum to operate a museum of natural history at the former Carnegie Library building; and
C. This Amended and Restated Lease leases to Museum the historic former Carnegie Library building and immediately surrounding entrance patio (the “Premises”); and The City further grants Museum a license to use the surrounding Tyrrell Park (the “License Area”); and D. Museum intends to fund a renovation project to construct needed upgrades and improvements to the Premises to support its continued utility, improve accessibility, protect Museum’s natural history collections, and support the Museum’s continued use as a public and educational institution.

The renovation project includes, but is not limited to: structural improvements to the Premises, additions to the Premises’ footprint, upgraded HVAC and environmental control systems, improvements to accessibility, including compliance with the Americans With Disabilities Act, and interior improvements to exhibit halls, office, and collection spaces (collectively the “Renovation Project”); and The current museum building is approximately 5,000 square feet (“Existing Building”). The Renovation Project intends to expand the building to approximately 10,660 square feet (“Expanded Building”). All references to the “Premises” throughout this Lease agreement shall refer to the Expanded Building following completion of the Renovation Project, and the immediately surrounding outdoor patio as modified by the Renovation Project; and
E. Museum and City entered into a Planning and Coordination Agreement dated May 29, 2024 and will enter into a Construction Coordination Agreement governing the roles and responsibilities of each Party relating to the Renovation Project, incorporated herein by reference and referred to collectively as the “Construction Coordination Agreements”; and F. In consideration for Museum funding the upgrades and improvements, Museum and City desire to terminate, replace, and supersede the Original Lease Agreement in its entirety upon commencement of this Amended and Restated Lease to clarify the Parties’ respective roles and responsibilities following completion of the upgrades and improvements to the Premises and providing for an extended lease term.

ARTICLE 1 - BASIC LEASE PROVISIONS
The above stated Recitals are incorporated in this Lease. The following are basic terms applicable to this Lease. The Sections and Exhibits referenced below in parentheses explain and define the basic terms specified below and are to be read in conjunction with basic terms herein:

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1.01. Museum's Trade Name. Santa Cruz Museum of Natural History.

1.02. Commencement of Term. The Commencement Date of the Lease will be the date of the City’s issuance of the Certificate of Occupancy for the Premises or the date of issuance of the Certificate of Completion, whichever occurs sooner, following the construction portion of the Renovation Project (the “Commencement Date”). The Parties agree that the terms of the Original Lease Agreement, dated December 15, 2010, will be in effect until the Commencement Date of this Lease. The Original Lease Agreement will terminate and be superseded by this Lease upon the Commencement Date. If for any reason the Renovation Project does not occur, the terms of the Original Lease Agreement shall remain in force.

1.03. Term of Agreement. The Term of the Agreement will begin on the Commencement Date and will expire thirty (30) years from the Commencement Date, plus two (2) optional ten-year (10) extensions as described in Section 3.02.

1.04. Property Address Location. 1305 East Cliff Drive, Santa Cruz, CA 95062, and as further defined herein (Exhibit A).

1.05. Leased Premises and License Area.
(a) Leased Premises: Approximately 10,660 square feet of the Expanded Building and an approximate 1,000 square feet of outdoor patio. (Exhibit A); (b) License Area: Surrounding License Area including Tyrell Park. (Exhibit A).

1.06. Rent. Museum shall pay to the City $1 per year (“Base Rent”).

1.07. Security Deposit. Not applicable.

1.08. Use of Premises. Museum shall have use of the Premises for the purpose of operating a museum of natural history.

1.09. Business Hours. Museum shall endeavor to be open to the public year-round subject to demand, resources, and the Museum’s ability to fund and staff operations. Except in cases of emergency, Museum shall provide City with a minimum of fifteen (15) days written notice prior to a closure scheduled to last more than thirty (30) consecutive days and shall post notice of such closure at the entrance of the Premises and on the Museum’s website.

1.10. Guarantor of Lease. Not applicable.

1.11. Address for Notices to Museum.

Santa Cruz Museum of Natural History
Executive Director
1305 East Cliff Dr.

Santa Cruz, CA 95062
Phone: (831) 420-6115
Email: [email protected]

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1.12. City’s Address for Notices and Payment of Rent.

City of Santa Cruz
City Manager
Attn: Director of Parks and Recreation & Asset Manager
809 Center Street, Room 10
Santa Cruz, CA 95060
Phone: 831.420.5270
Email: [email protected]
ARTICLE 2 - LEASE OF PREMISES

2.01. City of Santa Cruz as City. Museum acknowledges and understands that the City is a municipality consisting of numerous offices, departments, agencies and districts. Whenever a provision contained in this Lease, or any extension, modification or amendment, requires the "written consent" of the City, such consent must be obtained from the then acting City Manager, Assistant City Manager for the City of Santa Cruz, or their respective designees, by providing written notice as specified in Section 17.07 to the address specified in Section 1.12. Museum may not rely on any statement or representation by any other employee, agent or representative of City in obtaining such consent and any such statement or representation other than the express written consent of the City Manager, Assistant City Manager, or their respective designees, shall be null and void and have no effect. Nothing contained in this Section limits in any way the authority of any office, department, agency or district of the City or County of Santa Cruz California from approving or withholding consent to any event or activity regulated by local law.

2.02. Leased Premises and License Area.

(a) Leased Premises. City leases to Museum and Museum leases from City, in accordance with the terms and conditions set forth in this Lease, the Premises described in Sections 1.04 and 1.05, belonging to the City and commonly known as the 1305 East Cliff Drive as more particularly depicted and described in Exhibit A.
(b) License Area. City is the owner of the public park commonly known as Tyrrell Park surrounding the Premises described herein. City, as Licensor, grants to Museum, as Licensee, a license for the use of Tyrell Park (“License Area”) during park hours for Museum to conduct educational programs such as field trips and summer camps, without the need for the Museum to acquire additional permits for such programs The License Area is marked on the attached Exhibit A. The license is non-exclusive, nonassignable, terminable, and revocable at the will of City; however, the City agrees that it will not revoke the License for spurious, discriminatory, or unreasonable causes.

The License Area is not a part of the leased Premises. Museum, as Licensee, does not hold any estate or interest in the property of the City in the public right of way by virtue of this license. The City may formulate rules, conditions of license, regulations and a permit process for the use of the public property and right of way area surrounding and in close proximity to the Premises, and the uses of other areas in the public right way of the City.

City shall at all times retain exclusive final authority over the public right of way, including the License Area. City has the right to perform any and all acts of construction and maintenance in the public right of way, including the License Area, as fully and completely as if the license for the use of the License Area did not exist. City will not be liable to Museum by reason of any injury to or interference with Museum’s business or property for any inconvenience or damages caused thereby.

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City retains the right at its sole discretion to modify, terminate, or revoke said license upon sixty (60) days written notice to Museum, except in cases of emergency or danger to public health, safety or welfare in which case the City may immediately terminate or revoke said license, as determined by City in City’s sole discretion. Termination or revocation of the Museum’s use of the License Area as Licensee is not grounds for termination of the Lease.

Museum shall maintain the License Area in a good, clean, safe, and sanitary condition during Museum’s use of the License Area and shall ensure the License Area is left in a good, clean, safe, and sanitary condition following Museum’s use of the License Area. The Parties may agree to additional roles and responsibilities relating to Museum’s use and general maintenance of Tyrrell Park in a separate written agreement, such as in an “Adopt a Park” Memorandum of Agreement, or amendments thereto.

2.03. Reservations. This Lease is subject to any and all exceptions, easements, rights, rightsof-way, and other matters of record affecting the Premises, structures or other improvements on the Premises, and land of which the Premises are a part, and such other matters as are apparent from an inspection of the Premises (including, but not limited to, existing easements, servitudes and rights-of-way for roads, telephone, and electric power lines and facilities, pipelines, and other purposes whether recorded or not). This Lease confers no rights with regard to the subsurface of the land below the ground level of the Premises or with regard to airspace above the roof of the Premises. Easements for light and air are not granted in this Lease. City reserves the right to enter and access the roof of the Premises to repair and maintain the roof and to use any space within walls or above the ceiling finish and beneath the floor surface for utility lines and conduits.

2.04. Condition of Premises. Museum agrees to lease the Premises in their “AS IS, WHERE IS, IN ITS CURRENT CONDITION, WITH ALL FAULTS” condition existing on the date of execution of this Lease, subject to all applicable federal, state, or local laws, ordinances and/or regulations affecting the use of the Premises. Museum acknowledges that it has satisfied itself, by its own independent investigation, that the Premises is suitable for its intended use and neither City nor its agents, employees, officials, or representatives have made any representation or warranty as to the present or future suitability of the Premises for the conduct of Museum's business. Any work required by Museum to prepare the Premises for Museum’s occupancy will be paid for by Museum as subject to all of the terms and conditions set forth in this Lease. Museum is further responsible for determining whether or not the building codes, zoning, applicable laws, permits, certifications, permissions, approvals, authorizations, and covenants and/or restrictions of record are appropriate for Museum's intended use.

ARTICLE 3 - TERM

3.01. Commencement of Term. This Lease shall commence on the Commencement Date (Section 1.02 above). The rights and obligations of City and Museum under this Lease are binding as of the Commencement Date, unless a provision of this Lease specifically sets forth another commencement date for the performance of an obligation.

The initial term of this Lease (the “Initial Term”) shall commence on the Commencement Date and shall continue until the date of termination specified in Section 1.03, unless extended at City’s sole discretion or terminated earlier.

3.02. Option for Extension of Term.
(a) If Museum fully and faithfully performs all of the terms and conditions of this Lease and is not in default (as defined in Article 14) during the Initial Term of this Lease or Extended Term (if applicable, and as defined below), Museum may extend the Initial Term of this Lease for up to two (2)

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additional ten (10) year periods (each an “Extended Term” and collectively the “Extended Terms”) immediately following the expiration of the Initial Term and Extended Term (if applicable), upon the same terms and provisions contained in this Lease, except for the Capital Improvement Fund Contribution Minimum, which may be adjusted as provided for in Section 4.07 (Capital Improvement Contributions).

Museum will provide written notice to City of the intent to exercise the option to extend not more than three hundred and sixty-five (365) days and no less than ninety (90) days before the expiration of the Initial Term and Extended Term (if applicable). The Initial Term and Extended Terms are collectively referred to herein as the “Term.”
(b) No more than three hundred and sixty-five (365 days) and no less than ninety (90) days prior to Museum exercising the option to extend the Initial Term or, if applicable, the Extended Term, City and Museum shall meet and confer to discuss adjustments to the Capital Improvement Fund contributions. Pursuant to Section 4.07 (Capital Improvement Contributions), the City may, in the City’s reasonable sole discretion adjust the Contribution Minimum (as defined in Section 4.07) for each of the Extended Terms.
(c) If Museum has failed to cure a default in accordance with Article 14 (Default) of this Lease during the Initial Term of this Lease or Extended Term (if applicable), City has the option to refuse the Museum’s Extension Request and this Lease shall expire at the end of the Initial Term or first Extended Term (if applicable), unless otherwise agreed to by City as provided in section (c) or terminated earlier in accordance with this Lease.
(d) City may, in its sole and absolute discretion and without any obligation to do so, elect to accept the Extension Request notwithstanding the default of Museum. City’s acceptance of the Extension Request will not waive or otherwise relieve Museum of its obligations to promptly correct such default(s) and fully comply with all terms and conditions of this Lease. (e) Should City not receive an Extension Request from Museum within the required timeframe specified in subdivision (a) of this Section 3.02 (Option to Extend Term), City will provide written notice to Museum of the missed deadline and will provide Museum an additional ten (10) days to exercise the option to extend.
(f) Any extension granted to Museum in this Lease is specific to the Museum and cannot be assigned or exercised by anyone other than the Museum without City’s prior written consent, which may be given or withheld in City’s sole and absolute discretion.

3.03. Expiration; Holding Over. The Term will expire at 5:00 p.m. on the date specified as the termination date of this Lease, unless extended as provided herein. If Museum should remain in possession of the Premises after the expiration of the Term of this Lease, or after City has declared a forfeiture of this Lease as a result of Museum's default, then such holding over shall be construed as a tenancy from monthto-month, subject to all of the terms, conditions, provisions and obligations of this Lease at the time this Lease expires or upon the Museum's default, as the case may be. Unless the Museum obtains the express written consent of City to holding over, City does not waive its right to pursue any legal or equitable remedy against Museum with regard to Museum's continued possession of the Premises after the expiration of the term of this Lease. Under a month-to-month tenancy, Museum may terminate this Lease by providing City with written notice at least thirty (30) days prior to the intended termination date. City may terminate the month-to-month tenancy by giving notice to Museum as required by law.

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3.04. Surrender of Premises and Leasehold Interest.
(a) On the expiration or earlier termination of this Lease, Museum will, at Museum’s sole expense:
i. surrender and vacate the Premises and License Area and all improvements in, on or about the Premises, to City in a clean, safe, sanitized, and in good order and condition, except for ordinary wear and tear;
ii. remove all of Museum’s personal property and equipment, and repair all damage resulting from such removal;
iii. restore the Premises and License Area to the condition existing as of the Commencement Date or better, except as the Premises were repaired, rebuilt, restored, altered, and/or added to as permitted or required by the provisions of this Lease, and reasonable wear and tear expected;
iv. render the Premises and License Area safe and free from debris and hazards, and without any reduction in value resulting from any conduct in violation of this Lease;
v. surrender in writing or by legal instrument any leasehold interest or claim to the Premises and License Area, improvements, equipment, fixtures, and use thereof; and,
vi. surrender all keys to the Premises to City.

Museum’s abatement and removal of its personal property and equipment on the Premises pursuant to this section will be in compliance with all applicable laws, permits, certifications, approvals, permissions, and authorizations.
(b) City may remove, store, and dispose of any items Museum does not remove from the Premises and License Area as permitted or required under this Lease at Museum’s sole cost and in a manner deemed appropriate by the City.

ARTICLE 4 - RENT

4.01. Base Rent. Beginning with the Commencement Date, Museum shall pay to City on each yearly anniversary of the Commencement Date during the Term of this Lease, the sum of $1.00, together with any Additional Rent due, as may be applicable.

4.02. Additional Rent. In addition to paying Base Rent, Museum shall pay as “Additional Rent” all amounts payable or reimbursable by Museum under this Lease, including but not limited to late charges and interest (Article 4), Capital Improvement Contributions (Article 4), Museum’s portion of Utilities and Services (Article 8), repayment to City of any insurance premium or policy (Article 10), and payment of additional rent to Museum by a third party (Article 13). All amounts due as Additional Rent are payable within 30 days of written notice by City, unless stated otherwise in this Lease or as otherwise agreed to by the Parties in writing. Museum’s obligations to pay the Additional Rent owned at the time of expiration or termination of the Lease shall survive the expiration of this Lease.

4.03. Commencement of Rent. Museum's obligation to pay the Rent under this Lease shall commence on the Commencement Date set forth in Section 1.02.

4.04. Payment of Rent. All amounts payable or reimbursable by Museum under this Lease, including Base Rent, Additional Rent, late charges, and interest constitute Rent and shall be payable and recoverable as rent in the manner provided in this Lease. All sums payable to City on demand under the terms of this Lease shall be payable within thirty (30) days after notice from City of the amounts due.

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4.05. Late Charges & Interest.
(a) Late Charge. If any payment is not received by City within 30 days of due date, Museum shall pay to City on demand as a late charge an additional amount equal to ten percent (10%) of the overdue payment.

(b) Interest. In addition to the late charges referred to above, which are intended to defray City’s costs resulting from late payments, any payment from Museum to City not paid when due shall bear interest from the date due until paid to City by Museum at the rate of one and one half percent (1 1/2%) per month, or the maximum rate of interest allowed by law, whichever is less (“Interest Rate”). (c) The Parties agree that said late charges and interest represents a fair and reasonable estimate of the costs that City will incur by reason of late payment by Museum. The acceptance by City of any late charge shall not constitute a waiver of Museum's default with respect to the overdue amount, nor prevent City from exercising any of the other rights and remedies available to City under this Lease or as provided by law.
(d) Additionally, if a check is returned for non-sufficient funds (“NSF”), Museum shall pay to City a $25 NSF fee. If any payment is returned for NSF or because Museum stops payment, then City may, in writing, require Museum to pay future Rent in cash.

4.06. Annual Reports. On or before January 1st of each year, Museum shall furnish to City the Museum’s most recent Annual Report and Form 990 submitted to the Internal Revenue Service for the preceding year. To the extent Museum has such information, Museum shall provide City with a summary of visitor profile including description, counts, and demographics or backgrounds for a specified period, within 30 days of City’s written request.

4.07. Capital Improvement Contributions.
(a) Commencing on the third anniversary of the Commencement Date, Museum shall make annual deposits to City to be held in a capital improvement reserve fund by City (the “Capital Improvement Fund”) in a minimum amount of $10,000 annually (“Contribution Minimum”). The Museum may raise its required contributions to support the Capital Improvement Fund by adding a surcharge to the Museum’s admission fees.
(b) The Contribution Minimum shall increase every five (5) years by ten percent (10%) of the prior amount for the duration of the Lease. However, the City will forgo the scheduled increase to the Contribution Minimum if:
i. the balance of the Capital Contribution Fund meets or exceed $100,000 at the time of the pending increase during the Initial Term (years 1-30), $150,000 at the time of a pending increase during the first Extended Term (years 31-40); $175,000 at the time of a pending increase during the second Extended Term (years 41-50): and
ii. no significant improvements to the Premises are anticipated. (c) Prior to Museum exercising its option to extend the Initial Term or the Extended Term (if applicable), pursuant to Section 3.02, the City may, in the City’s reasonable sole discretion, adjust the Contribution Minimum with the following considerations:

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i. The increase to the Contribution Minimum amount will not exceed 15% of the existing Contribution Minimum at the time of the adjustment. ii. Prior to such adjustments, the Parties will meet and confer to discuss adjustments to the Contribution Minimum, upcoming maintenance needs for the Premises, and maintenance costs for the previous Term.
(d) The City will add all interest and earnings on the Capital Improvement Fund to the Capital Improvement Fund, but such interest and earnings will not be treated as a credit against the Capital Improvement Fund deposits required to be made by Museum. (e) Museum and City agree and acknowledge that the purpose of the Capital Improvement Fund is to provide funds for the costs and expenses of additions, replacements, renovations, and/or significant upgrades of or to the Premises or the improvements on the Premises, that fall within the City’s Maintenance Obligations (Section 11.01) including, but not limited to, building exteriors and major building systems (such as HVAC, mechanical, electrical, plumbing, structural elements, roof) that significantly increase the capacity, efficiency, useful life, and/or economy of the operation of the improvements or their major systems as determined by the City in the City’s sole discretion. Except where precluded in the event of an emergency, the Parties will confer on proposed use of the Capital Improvement Fund. The Capital Improvement Fund is not intended to be the sole source of funding for upgrades, renovations, additions, improvements, or maintenance of the Premises. (f) City shall keep full, complete and proper accounting of the use of the Capital Improvement Fund. Museum shall have the right, with prior written notice to examine accounting of funds in the Capital Improvement Fund including any expenditures of funds.

4.08. Books and Records.
(a) Museum shall keep full, complete and proper books, records, and accounts of its operations and daily admissions for a period of four (4) years. City and its employees, representatives and agents shall have the right, with prior written notice to examine records directly relating to the Museum’s obligations under this Lease including but not limited to, any sales tax reports pertaining to the business of Museum conducted on, in, at about, or from the Premises, for the purpose of investigating and verifying the accuracy of information submitted to the City pursuant to this Lease. (b) City may, once in any calendar year, cause an audit of Museum’s business to be made by an accountant of City’s selection. Museum shall furnish any requested information necessary for the audit within thirty (30) days, unless otherwise approved by City in writing.

ARTICLE 5 - TAXES; ASSESSMENTS

5.01. Museum Payment of Taxes. Museum will be responsible for paying all taxes that it is required to pay for its operations, property, and interests in accordance with local, state and federal law.

5.02. Possessory Interest Taxes. City hereby gives notice to Museum, pursuant to California Revenue and Tax Code Section 107.6, that this Lease may create a possessory interest that is the subject of property taxes levied on such interest, the payment of which taxes shall be the sole obligation of Museum.

Museum shall advise (in writing) any sublessee or third party using the Premises of the requirements of Section 107.6. Museum shall pay before delinquency all Possessory Interest Taxes (as defined below), assessments, license fees, and other charges that are levied and assessed against the leasehold interest, including leasehold improvements made in or to the Premises by or for Museum regardless of whether title to those improvements is vested in Museum or City. “Possessory Interest Tax” means that tax imposed

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pursuant to laws of the State of California on leaseholds of tax-exempt property and does not include taxes on Museum’s inventory, personal, or any other tax or assessment that is presently or may, in the future be levied. On demand by City, Museum shall furnish City with satisfactory evidence of these payments.

5.03. No City Liability. Any payments under this Article shall not reduce or offset Rent payments. City has no liability for such payments.

5.04. Museum Taxes Paid by City. If Museum fails to timely pay any taxes, fees, charges, or assessments, as provided herein, City shall have the right (with notice to Museum), but not the obligation, to pay such taxes, fees, charges, and/or assessments on behalf of the Museum. If City pays any taxes, assessments, fees, or other governmental charges levied against Museum arising out of this Lease, Museum shall reimburse City upon demand for the amount of such payment, together with interest at the Interest Rate from the date of City’s payment to the date of Museum’s reimbursement.

5.05. Admissions Tax. To the extent that Museum’s tickets or events are subject to the City’s Admissions Tax, Museum shall be responsible for collecting, monitoring, and paying to the City all Admissions Taxes due.

ARTICLE 6 - USE

6.01. Use of Premises and License Area.
(a) Museum will use the Premises under the trade name (in Section 1.01), and solely for the use specified, in Sections 1.08 and 1.09, herein, subject to the terms and conditions contained in this Article 6, and in compliance with all laws and regulations now existing or which will exist in the future, including all governing permits, approvals, and authorizations. (b) Museum shall not commit or suffer to be committed any waste upon the Premises or any nuisance or other act or thing which may disturb the quiet enjoyment of their customers on the Property. (c) The Museum will not use the Premises for uses or activities which will increase the existing rate of insurance upon the Premises, or cause a cancellation of any insurance policy covering the Premises or any part thereof. Museum will not sell or permit to be kept, used, stored or sold in or about the Premises any article which may be prohibited by any policy of fire insurance obtained by the City. If Museum’s use of the Premises for activities that result in a rate increase to the City for the Premises, City will provide written notice to Museum of such rate increase. Museum shall pay as Additional Rent within ten (10) days written notice, a sum equal to the additional premium caused by such rate increase.

6.02. Hazardous or Toxic Materials. Museum will comply, at its expense, with all federal, state and local statutes and regulations concerning environmental conditions, emissions, pollutants and controls. Except for standard household cleaning and paint supplies, or other standard products relating the Museum’s operation, artifacts or care of collections, Museum shall not cause, store, use, or permit any Hazardous Material (as defined below), including without limitation asbestos or polychlorinated biphenyls, to be brought upon, kept or used in or about the Premises or Property by Museum, its agents, employees, contractors or invitees, without the prior written consent of City, which City shall not unreasonably withhold as long as Museum demonstrates to City’s reasonable satisfaction that such Hazardous Material is necessary or useful to Museum’s business, does not violate any requirements of the City’s policies of fire, causality or public liability insurance and will be used, kept and stored in a manner that complies with all laws regulating any such Hazardous Material so brought upon or used or kept in or about the Premises or Property.

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6.03. Museum’s Indemnification. If Museum breaches any of its obligation stated herein, or if the presence of Hazardous Material on the Premises caused or permitted by Museum results in contamination of the Premises or Property or poses a danger to public safety, then Museum shall indemnify, defend and hold City harmless from any and all claims, judgment, damages, penalties, fines, costs, liabilities or losses, including, without limitation, diminution in value of the Premises, damages for the loss or restriction on use of rentable or usable space or of any amenity of the Premises, and sums paid in settlement of claims, attorneys’ fees, consultant fees and expert fees or other costs which arise during or after the lease term as a result of such contamination. Without limiting the foregoing, if the presence of any Hazardous Material on the Premises caused or permitted by Museum results in any contamination of the Premises or Property or poses a danger to public safety, Museum shall promptly take all actions at its sole expense as are necessary to return the Premises and Property to the condition existing prior to the introduction of any such Hazardous Material to the Premises; provided that City’s approval of such actions shall first be obtained, which approval shall not be unreasonably withheld so long as such actions would not potentially have any material adverse long-term or short-term effect on the Premises or Property. Museum is not responsible for any contamination caused by previous users or tenants of the Premises or Property, nor any impacts that would result from such contamination.

6.04. Definition of Hazardous Material. As used herein, the term “Hazardous Material” means any hazardous or toxic substance, material or waste which is or becomes regulated by any local governmental authority, the State of California or the United States Government.

6.05. Americans With Disabilities Act. The Museum shall comply fully with the Americans with Disabilities Act (“ADA”) and its implementing regulations, and any other local, state or federal law or regulation regarding the accessibility of the Premises. The Museum assumes responsibility for the costs of compliance with the ADA and any other local, state or federal law or regulation regarding the accessibility of the Premises related to the Museum’s operations, use of the Premises, the installation or placement of fixtures and property, and provision of accommodations. Museum agrees to release, indemnify, defend, and hold harmless the City its officials, officers, and employees for any claim, loss, expense, or liability arising from Museum’s failure to fully comply with all such laws or regulations relating to the Premises.

The Museum shall comply fully with the ADA and its implementing regulations, and any other local, state or federal law or regulation regarding the accessibility of the License Area related to Museum’s use of the License Area. Otherwise, City assumes responsibility for the costs of compliance with the ADA and any other local, state or federal law or regulation regarding the accessibility of the License Area. City agrees to release, indemnify, defend, and hold harmless the Museum its officials, officers, and employees for any claim, loss, expense, or liability arising from City’s failure to fully comply with all such accessibility laws or regulations relating to the License Area, except where the claim, loss, expense, or liability arises from Museum’s use of the License Area.

The Parties acknowledge that ADA upgrades will be made to the Premises as a part of the Renovation Project. To the extent that changes made by the Renovation Project require ADA upgrades, Museum will bear the costs of such compliance. If City makes any changes to the Premises or the License Area independent of Museum’s actions before, during, or after the Renovation Project, City will bear the costs of ADA compliance.

6.06. CASp Inspection. City states that the Premises and Property has not been inspected by a Certified Access Specialist (CASp) Accordingly, this notice is provided by City pursuant to California Civil Code Section 1938:

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“A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or City may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the Museum or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of the construction-related accessibility standards within the premises.”
Unless otherwise expressly stated in this Lease and subject to the terms of this Lease: (a) Museum may elect at any time to perform a CASp inspection of the Premises a Museum’s expense; (b) any repairs or modifications necessary to correct violations of applicable construction-related accessibility standards within or about Premises are the responsibility of Museum; (c) any construction-related accessibility improvements by Museum or alterations of or improvements to the Premises are the responsibility of the Museum; (d) any repairs or modifications to correct violations of applicable construction-related accessibility standards are the responsibility of Museum.

6.07. Existing equipment. City authorizes Museum’s use of existing equipment on the Premises subject to Museum’s care, maintenance, and stewardship of the equipment during Museum’s period of use.

In no event shall City be responsible for the repair, replacement, or removal of any equipment on site.

Museum shall notify City at least fifteen (15) days prior to Museum’s intent to discontinue use or dispose of such equipment. City reserves the right to reclaim any such equipment for City’s use, by providing Museum with sixty (60) days prior written notice.

6.08. Events. Museum shall obtain all permits as may be required by the City to conduct events, programs, or gatherings outside of standard operations, in, on or about the Premises or the License Area.

City may, but shall not be required, to waive fees for required permits.

ARTICLE 7 - ALTERATIONS AND ADDITIONS

7.01. Consent. With the exception of repairs or maintenance of the Premises which do not require any alterations to the Premises, Museum shall not make any improvements, alterations, or additions to the Premises or Property without City’s prior written consent. All improvements, alterations, repairs, and additions shall be in conformity with the laws, directives, rules or regulations of all applicable public and governmental agencies.

7.02. Notices. At least fifteen (15) days prior to commencing any work relating to any improvements, alterations, repairs, or additions approved by City, Museum shall notify City in writing of the expected commencement date and expected completion date for the work. City shall have the right thereafter to post and maintain on the Premises or Property such notices as City deems necessary to protect City and the Property from mechanics’ liens, materialmen’s liens or any other liens. Museum shall pay, when due, all claims for labor and materials furnished to or for Museum for use in improving the Premises or Property. Museum shall not permit any mechanics’ or materialmen’s liens to be levied against the Premises or Property arising out of work performed, materials furnished or obligations to have been performed on the Premises or Property by or at the request of Museum. Museum will indemnify and hold City harmless against loss, damage, attorneys’ fees and all other expenses on account of claims of lien of laborers or materialmen or others for work performed or materials or supplies furnished to Museum or persons claiming under it.

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7.03. Trade Fixtures. Museum may install trade fixtures, display items, machinery or other trade equipment in conformance with this Article 8 and all laws, ordinances, directives, rules or regulations of all applicable public and governmental agencies. Museum will not remove any trade fixtures, display items, machinery or other trade equipment from the Premises or Property if the removal of any such item would cause material damage to the Premises or Property, without City’s written consent. In the absence of City’s written consent to removal, any such item shall be deemed a part of the realty and belong to the City at the expiration or termination of the Lease.

7.04. Improvements.
(a) Any improvements existing on the Premises and Property at the Commencement Date will remain City’s property.
(b) Subject to City’s right to require removal of fixtures and improvements as provided in this Article 8, all permanent improvements and fixtures on the Premises and Property, including those improvements and fixtures relating to the Building and Renovation Project, at the expiration or earlier termination of this Lease shall, without compensation to Museum, automatically and without any act of Museum or any third party become City’s property. Museum will surrender the Premises and all improvements constructed thereon to City at the expiration of the Term or earlier termination of this Lease, free and clear of all liens, encumbrances, and third party claims. Museum shall indemnify, defend and hold harmless City against all liability and loss arising from such liens, encumbrances, or claims.

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, City has no liability or obligation to pay compensation for any improvements made to the Premises.

7.05. Restoration. Except as otherwise provided herein, upon termination of the Lease, Museum shall return the Premises to the same clean condition as existed at the Commencement Date, with the exception of reasonable wear and tear and except for improvements, alterations and additions approved by the City, or as otherwise agreed upon by the Parties. In addition, City, at its election, may require Museum to remove, at Museum's sole cost, any improvements, fixtures, alterations, or additions approved by City in accordance with this Lease, except for improvements, alterations, or additions approved by the City for the Renovation Project in the Construction Coordination Agreements. Museum shall repair, at its sole cost, any damage resulting from the removal of any alterations, improvements, additions, equipment, machinery or trade fixtures.

7.06. Prevailing Wages for Public Work. To the extent that any of Museum’s improvements, alterations, or additions to the Premises or Property may be subject to Labor Code section 1720 et seq., Museum (and any subconsultant performing the work or services) shall conform to any and all applicable prevailing wage requirements. Museum (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 improvements, alterations, or additions, if any.

7.07. Signs and Advertising Matter. With the exception of signage to acknowledge the contributions of sponsors and donors and signage reflecting current exhibits and exhibitions and interpretive signs in the License Area adjacent to the Premises, Museum will not place, install, maintain or construct or allow any third party to place, install, maintain or construct any sign, banner, flag, awning or canopy, covering, or advertising matter on the roof, or on any exterior door, wall or windows of the Premises or Property, or any interior portions of the Premises that may be visible from the exterior of the Premises, without City's prior written consent. City, at Museum's cost, may remove any item placed, constructed, or maintained that does not comply with the provisions of this paragraph. Museum further agrees to maintain

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such sign, awning, canopy, decoration, lettering, advertising matter or window coverings in good condition and repair at all times. Museum shall not display or sell any merchandise or allow carts, portable signs, devices, vending machines or other objects to be stored or remain on the sidewalk or elsewhere outside of the defined exterior of the Premises without the prior written consent of the City.

No advertising medium shall be used or allowed to be used by Museum which can be heard or experienced outside the Premises, including, without limitation, flashing lights, searchlights, loudspeakers, phonographs, radios or television. Except with City's prior written consent, Museum shall not display, paint or place, or cause to be displayed, painted or placed, any handbills, bumper stickers or other advertising devices on any vehicle parked near the Premises or the Property.

Museum agrees, at Museum's sole cost and expense, to construct and install signs as may be required or allowed by City in strict conformance with all applicable laws and regulations, including but not limited to Santa Cruz Municipal Code Chapter 24.12, Part 4.

ARTICLE 8 - UTILITIES

8.01. City’s Initial Responsibility. City shall make all arrangements and be solely responsible for obtaining and paying for all water, gas, heat, light, power, sewer, refuse, and one (1) internet or telephone service needed for the security and fire alarm system for the Premises (collectively “Utilities and Services”) for the first five (5) years of the Lease, beginning at the Commencement Date (“City’s Utility Responsibility”). City’s Utility Responsibility, however, shall be capped at $25,000 per year and Museum will be responsible for paying, as Additional Rent, the cost of Utilities and Services that exceed $25,000 per year for the first five (5) years of the Lease.

8.02. Museum’s Responsibility. During the Initial Term of the Lease, Museum shall pay to City as Additional Rent a percentage portion of all Utilities and Services for the Premises (“Museum’s Utility Responsibility”) as follows:
(a) Museum shall pay to City a twenty-five (25%) percent share of the costs for Utilities and Services for the Premises between years 6-10 following the Commencement Date of the Lease. Except as stated in subdivision (d), City shall pay the remaining seventy-five (75%) share of the costs for Utilities and Services.
(b) Museum shall pay to City a fifty (50%) percent share of the costs for Utilities and Services for the Premises for years 11-15 of the Lease. Except as stated in subdivision (d), City shall pay the remaining fifty (50%) percent share of the costs for Utilities and Services. (c) Museum shall pay to City a seventy-five (75%) percent share of the costs for Utilities and Services for the Premises for years 16-20 years of the Lease. Except as stated in subdivision (d), City shall pay the remaining twenty-five (25%) share of the costs for Utilities and Services. (d) City’s payment responsibility for Utilities and Services shall be capped at $25,000 per year during years 6-20 of the Lease. Museum shall be responsible for paying, as Additional Rent, the portion of City’s percentage share of the costs for Utilities and Services that exceed $25,000 per year during years 6-20 of the Lease.
(e) Beginning on the 21st year following the Commencement Date of the Lease and for the duration of the Lease thereafter, Museum shall make all arrangements and be solely responsible for obtaining and paying for all (100%) Utility Services for the Premises. Museum shall promptly pay or cause to be paid before delinquency, and hold City and City’s property, including, but not limited to, the Premises

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and improvements located or to be located thereon 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 and rubbish from the Premises and/or improvements located or to be located thereon.

8.03. Separate Meters. The City will be responsible for ensuring that there are separate meters for the Premises and for the License Area to reflect usage amounts for all Utilities and Services for the separate parts of the Property. Museum is responsible for the Museum’s Utility Responsibility costs only for Utilities and Services that are used for the Premises. City is responsible for costs incurred for Utilities and Services relating to the License Area. City will be responsible for all costs incurred as a result of installing and verifying the service area for separating utility meters, should such installation and/or verification be required, including costs charged by utility providers such as Pacific Gas and Electric Company.

8.04. Interruption. City is not liable for any failure or interruption of any utility service being furnished to the Premises.

ARTICLE 9 - INDEMNIFICATION

9.01. Indemnification. In addition to any other indemnity provided for in this Lease, and to the fullest extent permitted by law, Museum agrees to indemnify, release, defend (with counsel reasonably satisfactory to City) and hold harmless City, its officials, officers, employees, volunteers, successors, assigns, and agents (“Indemnified Parties”) from any loss, claim, liability, penalty, demand, action, damage, judgment, fine, cost, expense, including attorney’s fees 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 obligations or rights of Museum, its employees, and agents under this Lease; (ii) the acts or omissions or negligence or willful misconduct of Museum or its officers, directors, employees, agents, representatives, invitees, customers, contractors, subcontractors, suppliers, or others acting on Museum’s behalf or under Museum’s authority or control as related to this Lease; (iii) the occupancy and/or use of the Property (including, but not limited to any improvements or personal property located therein) by Museum, or its officers, directors, employees, agents, representatives, invitees, customers, contractors, subcontractors, suppliers, or others acting on Museum’s behalf or under Museum’s authority or control; (iv) any breach or default under this Lease by Museum; and/or (v) any construction or other work undertaken by Museum on the Property (including any of Museum’s improvements) (individually, each a “Claim” and, collectively “Claims”). Museum’s obligations in this Section, however, shall not extend to any Claims that are caused by the negligence or willful misconduct of City, its officials, officers, employees, volunteers or agents, subject to any immunities which may apply to City with respect to such Claims.

Museum’s obligation to defend shall arise regardless of any claim or assertion that City caused or contributed to the Claims.

Museum shall ensure that its contractors and subcontractors also fully indemnify, defend and hold harmless the Indemnified Parties to the same extent that Museum is required to indemnify, defend and hold harmless such Indemnified Parties.

9.02. Damage to Museum’s Property. City is not liable for any damage to inventory or other property of Museum, or others, located in, on or about the Premises or Property, nor for the loss of or damage to any personal property of Museum or of others by theft or otherwise, which is not the direct result of City's negligence or misconduct, and Museum waives any claim against City with respect to such personal property, including loss of use, economic losses, and consequential or resulting damage of any kind. City is not liable to Museum, Museum's employees or representatives for any injury or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas, electricity, water, rain, or leaks

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from any part of the Premises or Property or from the pipes, appliances or plumbing, or from the roof, street or subsurface or from any other places or by dampness or by any other cause of whatsoever nature. City shall not be liable to Museum, Museum's employees or representatives for any such damage caused by other tenants, persons, or occupants of adjacent spaces on the Property, or the public, or caused by operations in construction of any private, public or quasi-public work. All property of Museum kept or stored on the Premises is kept or stored at the sole risk of Museum, and Museum shall hold City harmless from any claims arising out of damage to the same, including subrogation claims by Museum's insurance carriers, unless such damage is caused by the willful act or gross negligence of City.

9.03. Survival. The indemnification provisions herein and any other indemnification provided elsewhere in this Lease shall survive the termination of this Lease.

ARTICLE 10 - INSURANCE

10.01. Insurance Requirements. Museum shall procure and maintain for the duration of the Lease, insurance as required in Exhibit B to protect against claims for injuries to persons or damages to the Premises and to loss or damage to Museum’s trade fixtures, personal property, and improvements which may arise from or in connection with the Museum’s operation and use of the Premises. The cost of such insurance shall be borne solely by the Museum.

10.02. Review of Coverage/Contractor Insurance. City may increase or decrease the amount of commercial general liability insurance required herein, based upon a general review by City of the standard insurance requirements. Changes in insurance amounts shall occur not more frequently than once a year.

City will notify Museum in writing of any changes under this provision of this Lease.

10.03. Museum's Failure To Maintain Insurance.
(a) Museum agrees that if Museum does not maintain any insurance policy required under this Lease or fails to pay any premiums when due, City may, at its election, either terminate this Lease, require that the Premises be immediately closed for business pending reinstatement of insurance by Museum, or obtain the necessary insurance and pay the premium, and the repayment thereof shall be deemed to be Additional Rent due by the Museum and payable on the next date upon which a payment of Rent is due.

(b) City has the right at any time to demand a copy of a Certificate of Insurance from Museum for the policies of insurance required herein and any other reasonable evidence proving compliance with these provisions. The failure to provide the City with such evidence within fifteen (15) calendar days of such demand shall constitute a material breach of this Lease. (c) If Museum is unable to obtain any policy of insurance required by City under this Lease, then City, at its sole discretion, and subject to the availability of coverage, may purchase such policy of insurance and Museum shall reimburse City for the cost of such insurance as Additional Rent. In the event that Museum fails to maintain insurance coverages, as required in this Lease, and a loss or damage occurs that results in City’s liability for copayments, deductibles, or other such charges to replace the loss under City’s applicable insurance policy, Museum agrees to reimburse the City for all such charges within ninety (90) days of the City’s notification to Museum.

10.04. Mutual Waiver of Subrogation. Museum and City each waive its respective right of recovery against the other, and their respective successors, assigns, directors, agents, and representatives in connection with any loss or damage which is covered by any insurance policy of either the Museum or City maintained by either party or required by this Lease with respect to the Premises or the Property. Museum

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and City hereby waive, on behalf of each party's insurance carriers, any right of subrogation it may have against the other party and each shall notify its carriers of the waiver contained herein.

ARTICLE 11 - MAINTENANCE AND REPAIRS

11.01. City's Maintenance Obligations.
(a) Except as otherwise stated in the Lease, and to the extent that the City, at the sole discretion of the City Council of the City of Santa Cruz, has the financial resources to do so, City shall maintain in good condition and repair the following:
i. structural parts of the building and structural parts of other improvements on which the Premises are located, which structural parts include only the foundations, bearing and exterior walls, and the structural elements of exterior doors (excluding interior doors, interior door frame, interior door checks, and all windows, window frames and store fronts);
ii. water meter to the Premises, electrical service to the panel, and sewer lateral to the Premises,
iii. HVAC systems and vents (excluding routine servicing and cleaning of system); and
iv. roof, including skylights and areas penetrated for purposes of installing any heating, ventilating, or air conditioning equipment, roof drainage systems on the Property in which the Premises are located.
(b) City 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. City shall comply with all requirements of the City’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. (c) The cost of such repairs and replacements in Section 11.01(a), however, shall be the sole obligation of Museum, if any repairs or replacements are necessitated by the negligence or willful acts of Museum, its officers, employees, representatives, agents, customers, or invitees or by reason of Museum's failure to observe or perform any provisions contained in this Lease or caused by alterations, additions or improvements (excluding alterations, additions, or improvements made as part of the Renovation Project and approved by the City in writing) made by Museum or its officers, employees, representatives, agents, contractors, or subcontractors. (d) In the event, Museum separately funds capital improvements or repairs that would be included in the City's Maintenance Obligations, City at its sole discretion may reimburse Museum for the real cost of improvements or authorize a credit towards the Capital Improvement Fund payments.

(e) Unless Museum notifies City in writing of the need for repairs under this Section

11.01, City shall not be liable for its failure to make such repairs. City shall be entitled to a reasonable period of time to make such repairs upon receipt of said written notice from Museum.

11.02. City's Right of Entry. City, its agents, contractors, employees and assigns may enter the Premises at any time and from time with prior notice to Museum (to the extent reasonably feasible) or as soon as practicable in the case of an emergency, without liability to Museum or entitling Museum to any

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abatement of Rent to: (a) examine the Premises; (b) perform any obligation of, or exercise any right or remedy of, City under this Lease (c) make repairs, alterations, improvements or additions to the Premises or to the Property as City deems necessary; (d) perform work necessary to comply with laws, ordinances, rules or regulations of any public authority or of 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 City deems necessary to prevent waste or deterioration in connection with the Premises should Museum fail to commence to make, and diligently pursue to completion, its required repairs within three (3) days after written demand therefor by City. City will give a minimum of twenty-four (24) hours advance notice of such entry when practicable.

11.03. Museum's Maintenance Obligations.
(a) Museum shall be solely responsible for all repairs to and maintenance of the Premises which are not expressly allocated to the City under this Lease. Except as provided elsewhere in this Lease, Museum, at its sole cost and expense, shall keep the Premises in good clean order, condition and repair and shall make all replacements necessary to keep the Premises in such condition, including maintenance, and repair and replacement of interior walls, floor coverings, ceiling, fixtures, any appliances, electrical systems and outlets that are not maintained by the City pursuant to Section 11.01 (“City’s Maintenance Obligations”), and windows . Museum shall be responsible for routine servicing and cleaning of HVAC systems and vents.
(b) All replacement equipment shall be of a quality equal to or exceeding that of the original equipment or improvements. Should Museum fail to make these repairs and replacements or otherwise maintain the Premises for a period of thirty (30) days after delivery of a written demand by City, or should Museum commence, but fail to complete, any maintenance, repairs or replacements within a reasonable time after written demand by City, City shall have the right to maintain, or make such repairs or replacements without liability to Museum for any loss or damage that may occur to Museum's business, and Museum shall pay for all costs incurred by City in making such repairs or replacements. Museum shall, at its expense, repair promptly any damage to the Premises or to the Property caused by Museum, its agents, employees, customers, invitees, subtenants, assignees or concessionaires, or caused by the installation or removal of Museum's personal property.

11.04. Notice by Museum/City Inspection.
(a) Museum shall give immediate written notice to City in case of fire or personal injury incidents in or around the Premises, or of any damage or defects in the Premises, or any fixtures or equipment therein.
(b) Museum shall give immediate written notice to City of any maintenance or repair needs for any structure or system listed in Section 11.01 (“City’s Maintenance Obligations”), including but not limited to roof and HVAC system. City will conduct inspection of said structure or system within a reasonable timeframe after receipt of notice by Museum. (c) No less than once every ten (10) years, City will conduct an inspection of the Premises and evaluate for future maintenance or repair needs.

11.05. Trash. Museum is responsible for maintaining the Premises in a good, clean, safe and sanitary condition. Museum shall comply with all applicable laws and regulations relating to disposal of refuse and shall remove and properly dispose of all refuse on the Premises.

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ARTICLE 12 - PARKING

12.01. Onsite Parking. No onsite or reserved parking is included with this Lease.

ARTICLE 13 - ASSIGNMENT AND SUBLETTING

13.01. Prohibition Against Voluntary Assignment, Subletting, and Encumbering; Museum's Request to City. Museum shall not voluntarily Transfer (which shall mean any attempt to sell, convey, assign, sublease, sublicense, transfer, mortgage, pledge, grant, or encumber its interest in this Lease or in the Premises or any portion thereof or the improvements thereon), or sublease all or any part of the Premises, or allow any other person or entity (except Museum's authorized representatives) to occupy or use all or any part of the Premises, without first obtaining City's express written consent, which consent shall be at the sole and absolute discretion of the City. Museum shall give City at least thirty (30) days’ written notice of its proposed Transfer. Any assignment, encumbrance, or sublease without City's consent shall be voidable, and at City's election, shall constitute a default. No consent to any assignment, encumbrance, or sublease shall constitute a further waiver of the requirements of this provision. Museum must deliver to City a form of a Consent to Assignment or Consent to Sublease to be executed by City to confirm the consent to any Transfer, which is also executed by the Museum and the assignee/or sublessee confirming their respective obligations to this Lease.

13.02. Involuntary Assignment. No interest of Museum in this Lease shall be assignable by operation of law.

13.03. Unauthorized Assignment or Sublease. Any attempted assignment or subletting without City's required consent shall be void and shall, at the option of City, terminate this Lease. Any assignee, subtenant or other recipient of Museum's interest in this Lease is hereby notified that such transfer is of no force or effect without City's prior written consent.

13.04. Effect of Consent. Consent by City to an assignment or subletting shall not release Museum from its primary liability under this Lease, and City's consent to one assignment, subletting or occupation by other parties shall not be deemed a consent to other subleases, assignments or use by other parties. Each assignee/sublessee shall be jointly and severally liable with Museum (and Museum shall be jointly and severally liable with each assignee/sublessee) for the payment of rent (or, in the case of a sublease, rent in the amount set forth in the sublease) and for the performance of all other terms and provisions of this Lease.

13.05. Excess Consideration. If City consents to an assignment or sublease, Museum shall pay to City as Additional Rent, within thirty (30) days after receipt by Museum, any consideration paid by any assignee or sublessee which is in excess of the amount of Base Rent and Additional Rent that is payable to City by Museum hereunder applicable to the subleased space.

13.06. Surrender of Lease. The voluntary or other surrender of this Lease by Museum or a mutual cancellation of this Lease by City and Museum will either terminate all or any existing subleases or subtenancies or may operate as an assignment to it of any or all of such subleases or subtenancies. City shall exercise its election within thirty (30) days of the event so requiring.

ARTICLE 14 - DEFAULT

14.01. Events of Default. The occurrence of any of the following constitutes a breach and default of this Lease by Museum:

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(a) The failure of Museum to pay or cause to be paid any Rent, monies, or other charges due City as set forth in this Lease within 60 days of the due date for payment of any such amounts; (b) The failure of Museum to maintain all insurance coverage as set forth in Article 10; (c) The abandonment of the Premises by Museum, which shall mean failure to operate as set forth in this Lease for thirty 30 consecutive days, except by prior written notice by Museum and with the written consent of City, or in the event of an emergency; (d) Except as otherwise provided in this Lease, the failure of Museum to do or cause to be done any act as set forth in this Lease, or to do or cause to be done any act prohibited by this Lease or by applicable law or regulations, and if the action or failure continues for fifteen (15) consecutive days after notice has been given to Museum (if applicable). However, Museum shall not be in default of this Lease if Museum 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 City; (e) Museum causing, permitting or suffering, without the prior written consent of City, any material act when this Lease requires City's prior written consent or prohibits such act; or (f) Any act of bankruptcy caused, suffered or permitted by Museum. For the purposes of this Lease, “act of bankruptcy” includes 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 Museum to have Museum adjudged a bankrupt or a petition for reorganization or arrangement under any law relating to bankruptcy, unless such petition is filed against Museum and the same is dismissed within sixty (60) days;
iii. The appointment of a trustee or receiver to take possession of substantially all of Museum's assets located in the Premises or of Museum's interest in this Lease; or
iv. The attachment, execution or other judicial seizure of substantially all of Museum's assets located at the Premises or of Museum's interest in this Lease.

14.02. Museum Opportunity to Cure. City shall by prior written notice first allow Museum a reasonable opportunity to cure an Event of Default, except in cases of emergency, where City may proceed without prior notice to Museum.

14.03. City Election. After the occurrence of an Event of Default, City, in addition to or in lieu of exercising other remedies and after providing Museum an opportunity to cure consistent with Section

15.02, may, but without any obligation to do so, cure the breach underlying the Event of Default, at the expense of Museum. Museum shall, upon demand, immediately reimburse City for all costs, including but not limited to: costs of settlements, defense, court costs, and administrative staff costs and fees that City may incur in the course of any cure.

14.04. City’s Right to Perform. All terms, covenants and conditions of this Lease to be performed or observed by Museum shall be performed or observed by Museum at Museum’s sole cost and expense, and without any reduction of Rent. If Museum fails to pay any sum of money, or other rent, required to be paid by it hereunder, or shall fail to perform any other term or covenant hereunder on its part to be performed, and such failure continues for ten (10) days after written notice thereof by City, City,

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without waiving or releasing Museum from any obligation of Museum hereunder, may, but shall not be obligated to, make any such payment or perform any such other term or covenant on Museum’s part to be performed.

14.05. Remedies.
(a) The remedies granted to City shall not be exclusive but shall be cumulative. In the event of any breach or default by Museum, City may, at City’s option, exercise any and all rights available to a City 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).:
(b) Efforts City may make to mitigate the damages caused by Museum's breach of this Lease shall not constitute a waiver of City's right to recover damages against Museum, nor shall anything contained in this Lease affect City's right to indemnification against Museum for any liability arising prior to the termination of this Lease. .
(c) In addition to all other rights and/or remedies of City at law, in equity, and/or under this Lease, the City may continue lease in effect after Museum’s breach and abandonment and recover Rent as it becomes due, if Museum has right to sublet or assign, subject only to reasonable limitations, as provided by California Civil Code section 1951.4.
(d) In the event City terminates this Lease pursuant to this Section 14.05, and Museum has made an advance payment of Rent as defined in California Civil Code §1951.7, and Museum has requested in writing that City notify it of any initial reletting of the Premises, then and only then must City notify Museum that the Premises have been relet, pursuant to California Civil Code section 1951.7(c). (e) In the event that City should take any act to maintain or preserve the Premises on Museum's behalf, or seek the appointment of a receiver to protect City's interests under this Lease, such acts shall not constitute a termination of Museum's right of possession unless Museum receives written notice from City to regarding City's election to terminate.

14.06. Covenants and Conditions. All covenants made by Museum hereby are conditions of this Lease; therefore, in the event of any default by Museum in fulfilling any of the same, City may at any time thereafter at its option declare a forfeiture of this Lease. City shall not be obligated to perform any covenant made by it under this Lease which accrues after the date of any default by Museum hereunder.

ARTICLE 15 - DAMAGE OR DESTRUCTION

15.01. Repair of Damage by City.
(a) Museum agrees to notify City 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 such that the Premises are untenantable, or Museum does not have reasonable access to the Premises, provided that the Casualty was not caused by the negligence or willful misconduct of Museum or any of Museum’s employees, contractors, invitees, guests, licensees, contractors, or subtenants (“Museum Party”), and if neither City nor Museum has elected to terminate this Lease under Section 15.03 (“City’s Option to Terminate or Repair”) or Section 15.04 (“Museum’s Option to Terminate”), City will, subject to available financial resources, promptly and diligently restore the Premises to substantially the same condition as existed before the Casualty, except for modifications required by building codes and other laws and except for any other modifications to the Premises considered desirable by City. In making these modifications, City will not materially impair

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Museum’s access to the Premises. City’s obligation to restore is subject to reasonable delays for insurance adjustment and other matters beyond City’s reasonable control and subject to the other clauses of this Article 15.

15.02. Repair Period Notice. City will provide written notice to Museum indicating the anticipated period for repairing the Casualty (“Repair Period Notice”), within the later of: (a) sixty (60) days after the date on which City determines the full extent of the damage and costs caused by the Casualty, or (b) sixty (60) days after City has determined the extent of the insurance proceeds available to effectuate repairs. The Repair Period Notice will also state, if applicable, City’s election either to repair or to terminate the Lease under Section 15.03 (“City’s Option to Terminate or Repair”).

15.03. City’s Option to Terminate or Repair. City may elect either to terminate this Lease or to effectuate repairs if:
(a) City 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 Museum 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.

City’s election will be stated in the Repair Period Notice.

15.04. Museum’s Option to Terminate. If all or a substantial part of the Premises are rendered untenantable or inaccessible by damage from fire or other Casualty, and City does not elect to terminate as provided above, then Museum may elect to terminate this Lease if City’s estimate of the time required to complete City’s repair obligations under this Lease is greater than one (1) year after the date of commencement of repairs. Museum may elect to terminate this Lease by giving City written notice of such election to terminate within sixty (60) days after City’s Repair Period Notice. If Museum does not elect to terminate within this sixty-day (60-day) period, Museum will be considered to have waived the option to terminate Museum will not have an option to terminate if Museum is in default under this Lease and the Casualty was caused in part or in whole by the fault of any Museum Party, including negligence, gross negligence or willful misconduct of any Museum Party.

15.05. Damage Near End of Term. Notwithstanding any other provision of this Article 15, if the Premises is destroyed or damaged by a Casualty during the last eighteen (18) months of the Initial Term or Extended Terms (if applicable), City has the option to terminate this Lease by giving written notice to Museum consistent with the Repair Period Notice.

15.06. Effective Date of Termination and Rent Apportionment. If City or Museum elects to terminate this Lease under this Article 15 in connection with a Casualty, the termination will be effective thirty (30) days after delivery of notice of such election. Museum must pay Rent, properly apportioned up to the date of the Casualty. After the effective date of the termination, City and Museum 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.

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15.07. Waiver. The provisions of this Lease, including those in this Article 15, constitute an express agreement between Landlord and Tenant that applies in the event of any Casualty to the Premises.

City and Museum, therefore, each hereby fully waive the provisions of California Civil Code Sections 1932(2), 1933(4) and any other applicable existing or future law permitting the termination of a lease agreement in the event of damage or destruction under any circumstances other than as provided in this Article 15.

ARTICLE 16 - ESTOPPEL CERTIFICATES; ATTORNMENT

16.01. Museum to Furnish Certificate. Museum shall, within ten (10) business days of written notice from City, execute and deliver to City a written statement certifying that this Lease is unmodified and in full force and effect or, if modified, stating the nature of such modification. Museum's statement shall include other details requested by City, such as the date to which Rent and other charges are paid and Museum's knowledge concerning any uncured defaults in City'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. Museum's failure to deliver such statements within such time shall be conclusive upon the Museum that this Lease is in full force and effect, except as and to the extent any modification has been represented by City, and that there are no uncured defaults in City's performance and that not more than one (1) month's rent has been paid in advance.

16.02. 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 City covering the Premises, Museum shall attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as City under this Lease.

16.03. Additional Documents. Museum, 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 City.

ARTICLE 17 - MISCELLANEOUS

17.01. Sale or Lease of the Property by City. Notwithstanding any provisions of this Lease, City may assign in whole or in part City's interest in this Lease and may sell all or part of City's leasehold interest in the real estate of which the Premises are a part. In the event of any sale or exchange of the Property by City and assignment by City of this Lease, City 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.

17.02. Joint and Several Liability. If more than one individual or entity comprises Museum, the obligations and liabilities imposed on each individual or entity that comprises Museum under this Lease will be joint and several.

17.03. 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 City to any assignment of this Lease or any interest in this Lease by Museum except as provided in Article 13 (“Assignment and Subletting”) of this Lease.

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17.04. 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 Leases 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 this 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 Lease 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 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 the Museum shall be in addition to and not in substitution for other payments to be made by Museum.

17.05. Time. Time is of the essence in this Lease.

17.06. Force Majeure. Any prevention, delay or stoppage due to strikes, lockouts, labor disputes, acts of God, public health emergency, inability to obtain labor or materials or reasonable substitutes therefor, 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. Nothing in this section shall excuse the prompt payment of Rent and other charges by Museum as required by this Lease or the performance of any act rendered difficult solely because of the financial condition of the party required to perform the act.

17.07. 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 California law, such notices shall be delivered via email to the addresses listed in Section 1.11 and Section 1.12.

If email is not permitted as a sufficient written notice pursuant to California law, the notice shall be delivered by (1) personal delivery in writing to the address set forth in Section 1.11 or Section 1.12, (2) overnight courier (i.e. Federal Express) to the address set forth in Section 1.11 or Section 1.12, with postage and charges prepaid and return receipt requested, in which case notice is effective when delivered, or (3) priority U.S. Mail to the address set forth in Section 1.11 or Section 1.12, in which case notice shall be deemed delivered on the second business day after the deposit thereof with the United States Postal Service.

Either party may, by written notice in accordance with this Section, at any time designate a different address to which notices shall be sent.

17.08. Relationship of Parties. The relationship of the parties hereto is that of Landlord and Tenant. Nothing in this Lease shall be construed to render City in any way or for any purpose a partner, joint venturer, or associate in any relationship with Museum other than that of City and Museum, nor shall this Lease be construed to authorize either to act as agent for the other.

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17.09. Waiver. The waiver by City of any breach of any term, covenant or condition herein contained shall not constitute a continuing waiver or a waiver of any subsequent breach by Museum of either the same or a different provision, term, covenant or condition of this Lease. The subsequent acceptance of Rent hereunder by City shall not be deemed to be a waiver of any preceding breach by Museum of any term, covenant or condition of this Lease, other than the failure of Museum to pay the particular rental so accepted, regardless of City's knowledge of such preceding breach at the time of acceptance of such rent. No covenant, term or condition of this Lease shall be deemed to have been waived by City, unless such waiver is in writing by City.

17.10. Accord and Satisfaction. No payment by Museum or receipt by City 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 City may accept such check or payment without prejudice to City's right to recover the balance of such rent or pursue any other remedy in this Lease provided.

17.11. Permits and Approvals. Museum is responsible for obtaining all applicable and required government permits or approvals. Approval by City 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. City and Museum 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 City under the terms of this Lease.

17.12. Memorandum of Lease. The Parties agree to execute and record a short form Memorandum of this Lease in the form attached hereto as Exhibit C within ten (10) after the date this Lease is executed.

17.13. Severability. In the event any of the provisions, or applications thereof, of this Lease are held to be unenforceable or invalid by any court of competent jurisdiction, the validity and enforceability of the remaining provisions, or applications thereof, shall not be affected.

17.14. Authority. If Museum is a corporation or partnership, each individual executing this Lease on behalf of such entity represents or warrants that he/she/they is/are duly authorized to execute and deliver this Lease on behalf of such entity and that their signatures serve to legally obligate their respective representatives, agents, successors, and assigns to be bound by all the terms and provisions hereof.

17.15. Amendments. 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.

17.16. Counterparts. This Lease may be executed on one or more copies and each counterpart will be considered an original and binding to the party executing it. A scanned, electronic, facsimile or other copy of a party’s signature shall be treated the same as an original.

17.17. 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. [SIGNATURES ON FOLLOWING PAGE]

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The Parties have executed this Lease as of the date first written above.

CITY OF SANTA CRUZ, a California municipal
corporation
By:

Matt Huffaker, City Manager
APPROVED AS TO FORM:

Stephanie Duck, Deputy City Attorney

SANTA CRUZ MUSEUM OF NATURAL
HISTORY, a California Nonprofit Corporation
By:

NAME
TITLE:

By:______________________________________
NAME
TITLE:
(Signature Requirements for 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.

Signature Requirements for LLC- For a membermanaged LLC, signature of any member. For a manager-managed LLC,
signature of
the manager. If the LLC has corporate officer
designations, follow
Corporation signature requirements.)

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EXHIBIT A

DIAGRAM OF PREMISES AND LICENSE AREA

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EXHIBIT B

INSURANCE REQUIREMENTS
Upon the Commencement Date of this Lease, Museum shall procure and maintain for the duration of the Lease and for so long as may be necessary to fully protect City, insurance against claims for injuries to persons and/or damages to property which may arise from or in connection with the Museum’s operations on, access to, and/or use of the Premises and Property. The cost of such insurance shall be borne by the Museum.

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 Lease with the City, unless a longer duration is required.

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

Coverage shall be at least as broad as the following:

1. Commercial General Liability (CGL): Commercial Liability Insurance. During the term of this Lease, including any extensions or renewals thereof, Museum, at its sole cost, shall keep in full force and effect a policy of standard form commercial general liability insurance, including coverage for contractual liability, personal injury, property damage, products liability, acts of independent contractors, and, if applicable, liability for the sale and distribution of liquor and alcoholic beverages, with a single combined liability limit of not less than Two Million Dollars ($2,000,000.00) per occurrence; Two Million Dollars ($2,000,000) in the aggregate, for bodily injury and property damage insuring against all liability of Museum and its employees, agents, representatives, subtenants, assignees and concessionaires arising out of and in connection with Museum's use or occupancy of the Premises.

The liability insurance policy required herein shall insure Museum's performance of the indemnity provisions of this Lease, and City, and its officials, officers, employees, and agents shall be named as additional insureds with cross-liability endorsements. The City, and any person, firms or corporations designated by City, by reason of their inclusion under said policy, shall not incur liability for payment of any premium for any policy of insurance required herein. If available, any policy of insurance required herein shall contain a provision requiring the insurer to give the City thirty (30) days' prior written notice before canceling or changing any such coverage.

2. Automobile Liability: Museum shall procure automobile insurance on an “Any Auto” Basis: ISO Form Number CA 00 01 covering any auto (Code 1), or if Museum has no owned autos, hired, (Code

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8) and non-owned autos (Code 9), with limit no less than $1,000,000 combined single limit each occurrence/per accident for bodily injury and property damage.

3. Workers’ Compensation and Employer’s Liability Insurance. Museum 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 improvement of Museum. Such workers’ compensation insurance shall be in amounts at least equal to the maximum liability of Museum, 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. Museum 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 City.

4. “All Risk” Property Insurance Coverage. Museum shall, at Museum's sole expense, obtain and keep in full force and effect an insurance policy covering all of Museum'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. Museum shall be solely responsible for any uninsured loss or damage caused to Museum's personal property, trade fixtures, equipment and merchandise located in or upon the Premises for any reason.

5. Fire Insurance\Legal Liability Coverage. Museum, 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 City covering the Premises and Property to keep all leased and licensed property or rented space, Museum 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. City 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 City or as otherwise agreed by the Parties to be used to fund the repair or replacement of the damaged Property 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 and Property, as determined from time to time.

6. Business Interruption Insurance. Policy with adequate limits to cover the term(s) of this Lease and shall contain an inflation endorsement if the Premises or Museum 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 City for loss of rents.

B. OTHER INSURANCE 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 Museum, 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 Museum’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).

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PRIMARY COVERAGE
For any claims related to this Lease, Museum’s insurance coverage will be primary and non-contributory as respects the City of Santa Cruz, its officers, officials, and employees. Any insurance or self-insurance maintained by the City of Santa Cruz, its officers, officials, and employees will be excess of Museum’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 City.

WAIVER OF SUBROGATION
Museum hereby grants to City a waiver of any right to subrogation, except as otherwise not applicable, which any insurer of said Museum may acquire against City by virtue of the payment of any loss, including attorney’s fees under such insurance. Museum agrees to obtain any endorsement that may be necessary to effectuate this waiver of subrogation, but this provision applies regardless of whether or not City has received a waiver of subrogation endorsement from the insurer.

SUBCONTRACTORS
Museum 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 Premises. Museum shall require and verify that all contractors and subcontractors maintain insurance meeting all the requirements stated herein, and Museum 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).

SELF-INSURED RETENTIONS (SIR)
Self-insured retentions must be declared to and approved by City. City may require Museum 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.

INSURANCE LIMITS, RATING, AND PROOF OF COVERAGES
All insurance policies required hereunder shall be issued by an insurance company having not less than a financial rating of Class A VII or better as rated in the most current available Best's Key Rating Guide.

Prior to the commencement of the term of this Lease, Museum shall provide City with evidence of any insurance policies required herein and shall continue to provide such evidence of insurance upon the request of City during the remaining term of this Lease, including all extensions and renewals thereto. All public liability, property damage and other casualty policies shall be written as primary policies, not contributing with and not in excess of coverage which the City may carry. Museum will provide a copy of all insurance policies required under this Lease to the Risk Manager of the City of Santa Cruz.

C. 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 Museum.

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EXHIBIT C

MEMORANDUM OF LEASE

RECORDING REQUESTED BY )

AND WHEN RECORDED MAIL
TO:
)
)
City of Santa Cruz )
323 Church Street )
Santa Cruz, CA 95060 )
Attn: Director of Parks & Recreation )

Exempt from Recording Fees Pursuant to Government Code Section 27383

MEMORANDUM OF LEASE
This Memorandum of Lease (“Memorandum”) is hereby entered into as of ____________, 2026, by and between the City of Santa Cruz, a California municipal corporation and charter city, (“Landlord”), and Santa Cruz Museum of Natural History, a California non-profit corporation (“Tenant”).

RECITALS
A. Landlord and Tenant have entered into that certain Lease (the “Lease”) dated concurrently herewith for that certain parcel of real property located at 1305 East Cliff Drive, Santa Cruz, CA 95062 (the “Property”). A copy of the Lease is available for public inspection at Landlord's office at 323 Church Street, Santa Cruz, California. The Lease is for a term of thirty (30) years, plus two (2) optional ten-year (10) extensions, commencing as of the date the City of Santa Cruz issues the Certificate of Occupancy for the building located on the Property or the date of issuance of the Certificate of Completion, whichever occurs sooner.

B. The Lease provides that a short form memorandum of the Lease shall be executed and recorded in the Official Records of Santa Cruz County, California.

NOW, THEREFORE, the parties hereto certify as follows:

Landlord, pursuant to the Lease, hereby leases the Property to the Tenant upon the terms and conditions provided for therein. The Lease imposes certain obligations, requirements on the Tenant, and limitations on the use of the Property. This Memorandum is not a complete summary of the Lease and shall not be used to interpret the provisions of the Lease. [SIGNATURES ON FOLLOWING PAGE]

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IN WITNESS WHEREOF, the parties hereto have caused this Memorandum to be executed by their lawfully authorized representatives.

LANDLORD:

CITY OF SANTA CRUZ, a California municipal corporation and charter city By: ____________________________________
Matt Huffaker
City Manager
TENANT:

SANTA CRUZ MUSEUM OF NATURAL HISTORY, a California non-profit corporation By:

NAME:

TITLE:

By: _______________________________________
NAME:

TITLE:

APPROVED AS TO FORM:

By: ___________________
Stephanie Duck, Deputy City Attorney

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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.

Signature ______________________________ (Seal)

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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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.

Signature ______________________________ (Seal)

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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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.

Signature ______________________________ (Seal)
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.

15.105
City of Santa Cruz
March 24, 2025
Santa Cruz Museum of Natural History Lease
Agreement
Recommendation: Motion to approve and authorize the City Manager to execute, in a form approved by the City Attorney, the 1) Construction Coordination Agreement, and 2) Amended and Restated Lease Agreement between the City and the Santa Cruz Museum of Natural History with the following changes:
1) Amend the lease to reflect that the City bears responsibility for maintenance and repair of the building structure, envelope, and integral systems, including all infrastructure systems, structural components, and exterior elements that are integral to the structure, preservation, and function of the building. This includes exterior doors; structural elements of the windows; foundations, bearing and exterior walls; subfloors; roof and skylights; and HVAC; including routine servicing and repair of HVAC.
2) Amend the lease insurance provisions to reflect that the Tenant is to purchase the insurance policy for the Museum, per the specifications addressed in the lease agreement, from the City’s insurance broker with the City to reimburse the Museum annually for 50% of the insurance policy with a cap of $20,000 per year. The City will pay the deductible with the exception of the circumstance where the claim was a result of negligence by the Tenant.

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City Council

AGENDA REPORT
DATE: 03/05/2026
AGENDA OF: 03/24/2026
DEPARTMENT: Water
SUBJECT: Award of Contract to EKI Environment & Water, Inc. for Design Services for Water Supply Augmentation, Beltz Well 9 Upgrades for Aquifer Storage and Recovery Project (WT)
LOCATION: County
RECOMMENDATION: Motion to:
1) Authorize the City Manager to execute an agreement in a form to be approved by the City Attorney with EKI Environment & Water, Inc. of Daly City, CA in the amount of $468,000.00 to perform design services for the Beltz Well 9 Upgrades for Aquifer Storage and Recovery Project (Project); and
2) Authorize the Water Director, or designee, to execute amendments for the Project that are within the approved project budget.

BACKGROUND: The Water Department (Department) has been implementing the supply augmentation recommendations of the Water Supply Advisory Committee (WSAC) since early 2016 and more recently the ongoing evaluation, selection, and construction of supplemental water supplies as directed by the Securing Our Water Future Policy. The recommended strategy is developed around the goal of delivering long-term water supply security to the City of Santa Cruz (City) water customers.

ASR is a groundwater replenishment and storage approach where surface water resources are used to “bank” water in an aquifer during times when excess surface water is available for storage and extracted when needed to meet customer demand. Beltz Well 9 will be the third existing production well converted to an ASR well in the Mid-County Groundwater Basin (MGB).

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

February 9, 2016 – Developing an ASR work plan.

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

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

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

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

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

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

November 15, 2022 – Beltz 9 ASR Pilot Testing Hydrogeologist Work Plan May 23, 2023 – Hydrogeologist Services for ASR Pilot Testing for Beltz 9 June 25, 2024 – Beltz 9 ASR Pilot Testing Construction Contractor December 9, 2025 – Hydrogeologist Services for ASR Pilot Testing for Beltz 10 and 11 wells Based on favorable results obtained from previous studies, the Department moved forward with the design and construction of permanent ASR facilities at its Beltz Wells 8 and 12 sites. facilities. Beltz 12 is currently nearing commissioning and startup, and Beltz 8 is now progressing into construction. Similar to Beltz 8 and 12, the Department also recommends moving forward with the design and construction of Beltz 9 in order to advance its ASR program that looks at the potential conversion of the four existing Beltz groundwater wells to ASR wells and adding up to three new wells in the Mid-County Groundwater Basin.

In January 2026, the Water Department formally issued a Request for Proposals (RFP) for engineering design services for the conversion of Beltz Well 9 to a permanent ASR facility. Four firms submitted proposals in February 2026. Each submittal was evaluated and scored through a competitive criteria-based selection process that considered firm and team qualifications and expertise, the proposed technical approach and work plan, cost, and more. As a result of this process, EKI Environment & Water, Inc. was selected based on their experienced team, cost for their services, and their demonstrated ability to design and deliver similar projects that are currently operating successfully.

DISCUSSION: The objective of the Beltz Wells 9 Upgrades for Aquifer Storage and Recovery Project is to design, construct, and integrate permanent ASR facilities at the Beltz 9 site with consideration for operational flexibility and future expansion for additional ASR wells within the Beltz system. Design is expected to start in April 2026 and conclude in early 2027.

16.2 The proposed scope of work for EKI Environment & Water, Inc. consists of the following tasks:

Task 1: Kick-off and Initial Site Visit
Task 2: 10% Design Submittal
Task 3: 50% Design Submittal
Task 4: 100% Design Submittal
Task 5: Permitting Support for Construction
Task 6: Meetings and Cross-Project Coordination
Task 7: Project Management and Quality Assurance/Quality Control (QA/QC) CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: Staff has performed a preliminary environmental assessment of the activity proposed to be approved by Council (contracting for design services for the Beltz Well 9 upgrades) and has determined that it is not a “project” under Public Resources Code section 21065 because it does not have the potential to cause a direct or indirect physical change in the environment.

HEALTH IN ALL POLICIES (HiAP): The objectives of the Project align with the City’s HiAP framework, specifically the pillars of sustainability and public health. With respect to sustainability, ASR is an identified mitigation measure in the City’s Local Hazard Mitigation and Climate Adaptation Plan, and ASR functions will bolster water supplies during periods of drought and emergencies such as wildfire. This Project supports the public health pillar and the Water Department’s mission of diversifying its water supply portfolio to build climate resiliency and ensure the safety and reliability of the public drinking water supply.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: No

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: Funds are available in the Water Department’s FY 2026 Capital Investment Program budget, c702601 – Beltz 9 Upgrades for Aquifer Storage and Recovery. 49% of the project is funded by a Water Infrastructure Finance and Innovation Act (WIFIA) low-interest loan administrated by the U.S. Environmental Protection Agency.

Prepared By:

Isidro Rivera
Engineering Manager/Deputy
Water Director
Submitted By:

Heidi Luckenbach
Water Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. DRAFT PROFESSIONAL SERVICES AGREEMENT.PDF

2. RFP AWARD NOTICE.PDF

16.3 City of Santa Cruz Professional Services Agreement for DESIGN ENGINEERING FOR BELTZ WELL 9 UPGRADES

FOR AQUIFER STORAGE AND RECOVERY
March 2026 Page 1
Professional Services Agreement With

CONSULTANT
For
DESIGN ENGINEERING FOR BELTZ WELL 9 UPGRADES

FOR AQUIFER STORAGE AND RECOVERY
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) for professional services is made by and between the City of Santa Cruz (“City”) and EKI Environment & Water, Inc. (“Consultant”) (each is referred to individually as a “Party” and collectively, as the “Parties”) as of ________________, 2026 (the “Effective Date”).

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

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

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

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

If, in performing the services, it is necessary to conduct field operations, security and safety of the job site will be the Consultant's responsibility excluding, the security and safety of any facility of City within the job site which is not under the Consultant’s control or authority.

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

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

SECTION 3: RESPONSIBILITIES OF THE CITY
City shall make available to Consultant all data and information in the City’s possession necessary to carrying out and completing the services and shall actively assist Consultant in obtaining such information from other agencies and individuals as needed. Consultant is entitled to reasonably rely upon the accuracy and completeness of such data and information, and Consultant shall provide City prompt written notice of any known defects in such data and information.

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16.4 City of Santa Cruz Professional Services Agreement for DESIGN ENGINEERING FOR BELTZ WELL 9 UPGRADES

FOR AQUIFER STORAGE AND RECOVERY
March 2026 Page 2
The Director may authorize a City staff person to serve as their representative with respect to this Agreement.

Consultant’s work shall be reviewed at such intervals as may be mutually agreed upon between the Parties. The City will be the sole judge of acceptable work, provided that such approval will not be unreasonably withheld or delayed. If the work is not acceptable, City will inform Consultant of the changes or revisions necessary to secure acceptance.

SECTION 4: FEES AND PAYMENT
For services actually performed, the City will compensate Consultant at the rates set forth in the Fee Schedule detailed in Exhibit B and in accordance with the terms set forth therein. Payment for Consultant's services in carrying out the entire Scope of Work shall be made within the budget limit, or limits shown, upon Exhibit B. Markups shall not be charged for any approved sub-consultants or subcontractors.

Consultant agrees that the payments to Consultant specified in this Section 4 will constitute full and complete compensation for all obligations assumed by Consultant under this Agreement. Such payments shall be considered the full compensation for all personnel, materials, supplies, and equipment used by Consultant in the Scope of Work. Where conflicts regarding compensation may occur, the provisions of this section shall apply.

Variations from the budget for each task which are justified by statements indicating personnel time expended and submittal of a revised budget are only allowed with prior City approval; however, in no event shall the total fee charged for the Scope of Work set forth in Exhibit A exceed the budget of $468,000 without advance written City authorization in the form of an amendment or change order.

Invoices shall detail the time worked by each class of employee on each task and the expenses incurred for which billing is made. Invoices shall indicate the percentage completion of each work task as identified in the Scope of Work in Exhibit A and the overall percentage of completion of the total required services. Unless otherwise specified in the fee schedule, payments shall be made monthly by the City within 30 days based on itemized invoices from the Consultant which list the actual costs and expenses.

All invoices shall contain the following affidavit signed by Consultant (if individual) or by an authorized representative of Consultant (if Consultant is an entity):
“[I] or [As an authorized representative of Consultant, I] hereby certify that the charge of (Insert invoice amount) as summarized above and shown in detail on the attachments is in accordance with the terms of the Agreement by and between the City of Santa Cruz and (Insert Party Name) dated (Insert Agreement Date), and has not been previously paid." This Agreement is contingent upon the appropriation of sufficient funding by the City and federal government for the Scope of Work covered by this Agreement. If funding is reduced or deleted for the Scope of Work covered by this Agreement, the City has the option without penalty or liability to either terminate this Agreement or to offer an amendment to this Agreement indicating any reduced amount.

SECTION 5: TRAVEL REIMBURSEMENT POLICY
The City agrees to reimburse Consultant and Consultant’s employee(s) for only authorized travel expenses, as indicated by a mark below, and according to the City’s Travel Reimbursement Policy. It is expected that all travel expenses incurred by Consultant while conducting activities on behalf of the City will be at reasonable rates and that Consultant and Consultant’s employee(s) will exercise prudence in incurring these expenses.

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16.5 City of Santa Cruz Professional Services Agreement for DESIGN ENGINEERING FOR BELTZ WELL 9 UPGRADES

FOR AQUIFER STORAGE AND RECOVERY
March 2026 Page 3
☒ Meals: Meals are reimbursed at the current GSA Meals & Incidental per diem rate by county (www.gsa.gov/travel). The City does not reimburse for actual costs for meals. Reimbursement is based solely on per diem rates. Do not submit meal receipts.
• Travel before 8:00am qualifies for breakfast reimbursement. • Travel between 8:00am – 1:30pm qualifies for lunch reimbursement. • Travel between 1:30pm – 7:00pm (or later) qualifies for dinner reimbursement. • Days between hotel stays and days starting before 8am and ending after 7pm, qualify for the full GSA Meals & Incidental per diem rate.
☒ Ground Transportation: Ground transportation is reimbursable when it is for travel between the Consultant’s place of business, an airport, or Santa Cruz hotel, as applicable, to the City work location.

1. Reasonable fees for taxis, shuttles, buses, trains, light rail, ride hailing services (Uber, Lyft or other), and similar modes of transportation will be reimbursed. Receipts are required for reimbursement.

2. When using vehicles owned by Consultant or Consultant’s employer:
• Mileage will be reimbursed at the current IRS mileage rate. • Evidence of automobile liability insurance meeting the City’s requirements must be provided. • Maps showing starting point, City work location, and total miles are required for reimbursement.

3. Use of car rentals are reimbursable when:
• Travel is necessary from an airport to the City work location. • The rental reservation is made as far in advance as is practical and the lowest possible price is obtained. • Insurance coverage is included, and the car is returned with a full tank of gas. • The smallest vehicle necessary is rented.
• Parking expenses are included in the GSA Meals & Incidental per diem rate. The City will not pay additionally for parking expenses.
• Receipts are required for reimbursement.
☐ Airfare: Airfare is reimbursable when the Consultant’s place of business, or Consultant’s employee’s home, is more than 250 miles away from Santa Cruz.
• Airfare must be lowest available coach class fare. Flights may be non-stop. • Airfare must be booked as far in advance as is practical. • Fees for one piece of checked luggage (and any equipment necessary for the work being done) will be reimbursed.
• Extra charges for seat assignments, refundable tickets, travel insurance/protection, and similar fees are not reimbursable.
• If the City cancels the need for travel and the ticket cannot be changed or refunded, the ticket cost will be reimbursable.
• Receipts are required for reimbursement.
☒ Lodging: Lodging is reimbursable when the Consultant must work on site for two or more consecutive days and the Consultant’s place of business or personal residence, is more than 60 miles away from Santa Cruz. • Lodging is reimbursed up to the current GSA rate by county (www.gsa.gov/travel). • Costs for hotel rooms above this rate are the responsibility of the traveler. • Receipts are required for reimbursement.

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16.6 City of Santa Cruz Professional Services Agreement for DESIGN ENGINEERING FOR BELTZ WELL 9 UPGRADES

FOR AQUIFER STORAGE AND RECOVERY
March 2026 Page 4
General Rule

1. Travel expenses not listed or checked above will not be reimbursed.

2. Travel reimbursements are paid after the completion of travel. There are no travel advances.

3. Exceptions to any of the above requirements require advance written permission from the Director or City’s designated agent contracting with the Consultant.

4. Tips and gratuities will not be reimbursed.

5. Alcoholic beverage purchases will not be reimbursed.

6. Consultants will exercise prudence in incurring reimbursable expenses.

7. The City of Santa Cruz has the sole discretion to deny any reimbursement request the City has determined to be excessive or an inappropriate use of public funds.

SECTION 6: CHANGES IN WORK
City may negotiate changes to the Scope of Work. No changes to the Scope of Work shall be made without the prior written agreement between City and Consultant. Any change requiring compensation in excess of the sum specified in Exhibit B shall be approved in advance in writing by the City. Only City’s authorized representative(s) is authorized to approve changes to this Agreement on behalf of City.

SECTION 7: TERM AND SCHEDULE
The term of this Agreement shall commence on the effective date of this Agreement and terminate on upon completion of the Scope of Work.

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

The Work Schedule for completion of the work shall be as shown upon Exhibit 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.

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16.7 City of Santa Cruz Professional Services Agreement for DESIGN ENGINEERING FOR BELTZ WELL 9 UPGRADES

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March 2026 Page 5
The City may, at its option, allow Consultant to cure its failure to perform within 10 business days (or longer period authorized in writing by the City) from the date of the City’s termination notice. The termination shall be become effective if Consultant has not cured within the specified time period to the City’s satisfaction.

Consultant may terminate this Agreement for cause if the City fails to cure a material default in performance of its obligations under this Agreement within a period of 30 calendar days (or such longer period agreed to by the Consultant), from the date of the Consultant’s written termination notice specifying the default in performance.

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

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

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

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

In the event this Agreement involves the performance of design professional services by Consultant, Consultant’s officers, employees, agents, or subcontractors, Consultant’s costs to defend Indemnitees shall not exceed the Consultant’s proportionate percentage of fault per Civil Code §2782.8. This section shall survive the termination or expiration of this Agreement.

SECTION 11: EQUAL EMPLOYMENT OPPORTUNITY/NON-DISCRIMINATION POLICIES DRAFT

16.8 City of Santa Cruz Professional Services Agreement for DESIGN ENGINEERING FOR BELTZ WELL 9 UPGRADES

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

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

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

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

SECTION 14: MISCELLANEOUS PROVISIONS

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

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

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

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

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16.9 City of Santa Cruz Professional Services Agreement for DESIGN ENGINEERING FOR BELTZ WELL 9 UPGRADES

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In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

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

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

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

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

7. Conflicts of Interest. Consultant agrees to comply with conflict of interest lawsin performing the work and services under this Agreement. Consultant covenants (on behalf of Consultant and Consultant’s employees, agents, representatives, and subcontractors) that there is no direct or indirect interest, financial or otherwise, which would conflict in any manner or degree with the performance of services required under this Agreement. Consultant acknowledges and agrees to comply with applicable provisions of conflict of interest law and regulations, including the CA Political Reform Act, (Gov’t. Code §§1090, 87100), Levine Act (Gov’t. Code §84308), and the City’s conflict of interest code. Consultant will immediately advise City if Consultant learns of a conflicting financial interest of Consultant during the term of this Agreement.

8. City Property. The work, or any portion, of Consultant in performing this Agreement shall become the property of City. The Consultant may be permitted to retain copies of such work for information and reference in connection only with the provision of services for the City. All materials and work product, whether finished or unfinished, shall be delivered to City upon completion of contract services or termination of this Agreement for any reason.

Consultant acknowledges and agrees that the work product shall be considered a work made for hire within the meaning of the patent and copyright laws of the United States; and Consultant agrees that all copyrights which arise from creation of project-related documents and materials pursuant to this Agreement shall be vested in the City and Consultant waives and relinquishes all claims to copyright or other intellectual property rights in favor of City. Any work product related to this Agreement shall be confidential, not to be used by the Consultant on other projects or disclosed to any third party, except by agreement in writing by the City, or except as otherwise provided herein.

Consultant’s final deliverables shall comply with Section 508 (29 U.S.C. Section 794d) accessibility requirements, DRAFT

16.10 City of Santa Cruz Professional Services Agreement for DESIGN ENGINEERING FOR BELTZ WELL 9 UPGRADES

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as applicable. Notwithstanding any other provision of this Agreement to the contrary, Consultant shall retain the rights in any pre-existing standard drawing details, designs, specifications, databases, computer software, proprietary information, documents, templates, and any other property owned by Consultant on the date of this Agreement or developed outside of this Agreement.

9. Intellectual Property and Indemnity.
a. Consultant represents to City that, to the best of Consultant’s knowledge, any Intellectual Property (including but not limited to: patent, patent application, trade secret, copyright and any applications or right to apply for registration, computer software programs or applications, tangible or intangible proprietary information, or any other intellectual property right) in connection with any services and/or products related to this Agreement does not violate or infringe upon any Intellectual Property rights of any other person or entity. b. To the fullest extent permitted by law, Consultant agrees to indemnify, defend, and hold harmless City, its officials, officers, employees, and agents, from any and all claims, demands, actions, liabilities, damages, or expenses (including reasonable attorneys’ fees and costs) arising out of a claim of infringement, actual or alleged, direct or contributory, of any Intellectual Property rights in any way related to Consultant’s performance under this Agreement or to the City’s authorized intended or actual use of Consultant’s product or service under this Agreement. This provision shall survive termination or expiration of this Agreement. c. If any product or service becomes, or in the Consultant’s opinion is likely to become, the subject of a claim of infringement, the Consultant shall, at its sole expense: (i) provide the City the right to continue using the product or service; or (ii) replace or modify the product or service so that it becomes non-infringing; or (iii) if none of the foregoing alternatives are possible even after Consultant’s commercially reasonable efforts, in addition to other available legal remedies, City will have the right to return the product or service and receive a full or partial refund of an amount equal to the value of the returned product or service, less the unpaid portion of the purchase price and any other amounts, which may be due to the Consultant. City shall have the right to retrieve its data and proprietary information at no charge prior to any return of the product or termination of service.

10. Confidentiality.
a. Consultant shall not acquire any ownership interest in data and information (“City Data”) received by Consultant from City, which shall remain the property of the City. Certain information may be considered confidential (“Confidential Information”). Confidential Information shall mean all information or proprietary materials (in every form and media) not generally known to the public and which has been or is hereafter disclosed or made available directly or indirectly to Consultant through any means of communication, either verbally or in writing even if it has not been designated in writing as “Confidential” to Consultant in connection with this Agreement. Unless otherwise required by law, Consultant shall not, without City’s written permission, use or disclose City Data and/or Confidential Information other than in the performance of the obligations under this Agreement. As between Consultant and City, all City Confidential Information shall remain the property of the City. Consultant shall not acquire ownership interest in the City’s Confidential Information. b. Consultant shall be responsible for ensuring and maintaining the security and confidentiality of City Data and Confidential Information, protect against any anticipated threats or hazards to the security or integrity of City Data and Confidential Information, protect against unauthorized access to or use of City Data and Confidential Information that could result in substantial harm or inconvenience to City or any end users; and ensure the proper return and/or disposal of City Data and Confidential Information upon termination of this Agreement with notice to the City.

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c. Consultant shall take appropriate action to address any incident of unauthorized access to City Data and Confidential Information, including addressing and/or remedying the issue that resulted in such unauthorized access, notifying City as soon as possible of any incident of unauthorized access to City Data and Confidential Information, or any other breach in Consultant’s security that materially affects City or end users; and be responsible for ensuring compliance by its officers, employees, agents, and subcontractors with the confidentiality provisions hereof. Should confidential and/or legally protected City Data be divulged to unauthorized third parties, Consultant shall comply with all applicable federal and state laws and regulations, including but not limited to California Civil Code sections 1798.29 and 1798.82 at Consultant’s sole expense.

Consultant shall not charge City for any expenses associated with Consultant’s compliance with these obligations.

d. Consultant shall defend, indemnify and hold harmless City, its officials, officers, employees and agents against any claim, liability, loss, injury or damage (including attorneys’ fee and costs) arising out of, or in connection with, the unauthorized use, access, and/or disclosure of City Data and/or Confidential Information by Consultant and/or its agents, employees or subcontractors, excepting only loss, injury or damage caused by the sole negligence or willful misconduct of the City. This provision shall survive the termination or expiration of this Agreement.

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

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

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

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14. Licensure. Consultant agrees that Consultant, its subcontractors and/or agents (if any) has/have complied with all applicable federal, state, and local licensing requirements and agrees to provide proof of a current City of Santa Cruz Business Tax Certificate if:
• Consultant, its subcontractor(s) and agent(s) or its business is/are located in the City of Santa Cruz; • Will perform actual work in the City of Santa Cruz for 6 or more days annually; or • Will use company vehicles to deliver within the City of Santa Cruz for 6 or more days annually.

For additional information and licensing requirements, view the City’s Business Licenses and Permits webpage or call the Revenue and Taxation division at 831/420-5070.

15. Living Wage. Every contract for services to the City for $10,000 or more, is subject to City of Santa Cruz Living Wage Ordinance number 2000-25. If applicable, Consultant agrees to comply with the requirements of the Living Wage ordinance as provided in Santa Cruz Municipal Code Chapter 5.10.

16. Prevailing Wages for Public Work. To the extent that the work or services to be performed under this Agreement may be considered a “public work” (construction, alteration, demolition, or repair work) pursuant and subject to Labor Code section 1720 et seq., Consultant (and any subconsultant performing the work or services) shall conform to any and all prevailing wage requirements applicable to such work/and or services under this Agreement. Consultant (and any subconsultant) shall adhere to the prevailing wage determinations made by the Director of Industrial Relations (DIR) pursuant to California Labor Code Part 7, Chapter 1, Article 2, applicable to the work, if any. All workers employed in the execution of a public works contract (as such term is defined California Labor Code section 1720 et seq. and section 1782(d)(1)) must be paid not less than the specified prevailing wage rates for the type of work performed. (CA Labor Code sections 1720, 1774 and 1782.) To the extent applicable to the scope of work and services under this Agreement, Consultant agrees to be bound by the state prevailing wage requirements, including, but not limited to, the following:
a. If a worker is paid less than the applicable prevailing wage rate owed for a calendar day (or any portion thereof), Consultant shall pay the worker the difference between the prevailing wage rate and the amount actually paid for each calendar day (or portion thereof) for which the worker(s) was paid less than the prevailing wage rate, as specified in Labor Code section 1775; b. Consultant shall maintain and make available payroll and worker records in accordance with Labor Code sections 1776 and 1812;
c. If Consultant employs (and/or is legally required to employ) apprentices in performing the work and/or services under this Agreement, Consultant shall ensure compliance with Labor Code section 1777.5; d. Consultant is aware of the limitations imposed on overtime work by Labor Code sections 1810 et seq. and shall be responsible for any penalties levied in accordance with Labor Code section 1813 for failing to pay required overtime wages;
e. Consultant shall post a copy of the applicable wage rates at each jobsite at a location readily available to its workers.
f. Any failure of Consultant and/or its subconsultant to comply with the above requirements relating to a public work project shall constitute a breach of this Agreement that excuses the City’s performance of this Agreement at the City’s sole and absolute option and shall be at the sole risk of Consultant. Consultant on behalf of itself and any subconsultant, agree to indemnify, defend and hold harmless the City and its DRAFT

16.13 City of Santa Cruz Professional Services Agreement for DESIGN ENGINEERING FOR BELTZ WELL 9 UPGRADES

FOR AQUIFER STORAGE AND RECOVERY
March 2026 Page 11
officials, officers, employees, and agents from and against any and all claims, liabilities, losses, costs, expenses, attorney’s fees, damages, expenses, fines, financial consequences, interest, and penalties, of any kind or nature, arising from or relating to any failure (or alleged failure) of the Consultant and any subconsultant to pay prevailing wages or to otherwise comply with the requirements of prevailing wage law relating to a public work.
g. Consultant acknowledges that it and/or any subconsultant may not engage in the performance of any contract for public work unless currently registered with the DIR and qualified to perform public work pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].

17. Storm Water Requirements. To the extent applicable to the Scope of Work under this Agreement, Consultant, Consultant’s employees, subcontractors, and agents are required to abide by the applicable City of Santa Cruz Storm Water Best Management Practices (BMPs) for the duration of the work. The City’s mandatory Storm Water BMPs, which are listed according to the type of work, operations, or business, are located on the City website at: https://www.cityofsantacruz.com/government/city-departments/public-works/stormwater/bestmanagement-practices

18. Dispute Resolution. The Parties agree to attempt in good faith to resolve through negotiation any dispute, claim or controversy arising out of or relating to this Agreement. Either party may initiate negotiations by providing written notice in letter form to the other party, setting forth the subject of the dispute and the relief requested.

Promptly upon such notification, the Parties shall meet at a mutually agreeable time and place in order to exchange relevant information and perspective, and to attempt to resolve the dispute. In the event that no resolution is achieved, and if, but only if, the parties mutually agree, then prior to pursuing formal legal action, the parties shall make a good faith effort to resolve the dispute by non-binding mediation or negotiations between representatives with decision-making power, who, to the extent possible, shall not have had substantive involvement in the matters of the dispute. To the extent that the dispute involves or relates to a public works project, the Parties agree to attempt to resolve the dispute by complying with the claims process as set forth in Public Contract Code sections 9204(e), 20104-20104.6, but without waiving the requirements of the California Tort Claims Act, Gov’t Code section 800 et seq. unless otherwise agreed to by the Parties.

19. Force Majeure. Neither party hereto shall be considered in default in the performance of its obligation hereunder to the extent that the performance of any such obligation is prevented or delayed by an act of God, natural disaster, pandemic, acts of terrorism, war, a strike, lockout or other labor difficulty, or other peril, which is beyond the reasonable control of the affected party and without the negligence of the respective Parties. Each party hereto shall give notice promptly to the other of the nature and extent of any Force Majeure claimed to delay, hinder or prevent performance of the services under this Agreement. Each Party will, however, make all reasonable efforts to remove or eliminate such a cause of delay or default and will, upon the cessation of the cause, diligently pursue performance of its obligations in this Agreement. In the event either party is prevented or delayed in the performance of its respective obligation by reason of such Force Majeure, the only remedy is that there may be an equitable adjustment of the schedule based on City’s sole discretion.

20. Complete Agreement. This Agreement, along with any attachments, is the full and complete integration of the Parties’ agreement with respect to the matters addressed herein, and that this Agreement supersedes any previous written or oral agreements between the Parties with respect to the matters addressed herein. Unless otherwise stated, to the extent there is any conflict between this Agreement and any other agreement (written or oral), the terms of this Agreement shall control.

DRAFT

16.14 City of Santa Cruz Professional Services Agreement for DESIGN ENGINEERING FOR BELTZ WELL 9 UPGRADES

FOR AQUIFER STORAGE AND RECOVERY
March 2026 Page 12

21. Severability. The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the other provisions unenforceable, invalid or illegal.

22. Waiver. Waiver by any party of any portion of this Agreement shall not constitute a waiver of the same or any other portion hereof.

23. Governing Law. This Agreement shall be governed by and interpreted in accordance with California law.

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

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

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

To CITY:

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

EKI Environment & Water, Inc.

Tyler Colyer, P.E.
2001 Junipero Blvd., Suite 300
Daly City, CA 94014
[email protected]./(650) 292-9100
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. Third Parties. The services to be performed by Consultant are intended solely for the benefit of the City.

28. Debarment and Suspension.
a. The contract is a covered transaction for purposes of 2 CFR Part 180 and 2 CFR Part 3000. As such, the Contractor is required to verify that none of the Contractors, its principals (defined at 2 CFR § 180.995), or its affiliates (defined at 2 CFR § 180.905) are excluded (defined at 2 CFR § 180.940) or disqualified (defined at 2 CFR § 180.935).
b. The Contractor must comply with 2 CFR Part 180, Subpart C and 2 CFR Part 3000, Subpart C and must include a requirement to comply with these regulations in any subcontract. c. If it is later determined that the Contractor did not comply with 2 CFR Part 180, Subpart C and 2 CFR Part 3000, Subpart C, in addition to remedies available to the City, the Federal Government may pursue available remedies, including, but not limited to, suspension and/or debarment. d. The bidder or proposer agrees to comply with the requirements of 2 CFR Part 180, Subpart C and 2 CFR Part 3000, Subpart C while this offer is valid and throughout the period of any contract that may arise from DRAFT

16.15 City of Santa Cruz Professional Services Agreement for DESIGN ENGINEERING FOR BELTZ WELL 9 UPGRADES

FOR AQUIFER STORAGE AND RECOVERY
March 2026 Page 13
this offer. The bidder or proposer further agrees to include a provision requiring such compliance in its subcontracts.29. Byrd Anti-Lobbying Amendment and Certification. a. Contractors that apply or bid for an award exceeding $100,000 must file the required certification. The Contractor certifies to the City and every Subcontractor certifies to the Contractor that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining the Contract if it is covered by 31 U.S.C. 1352. The Contractor and every Subcontractor must also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the City. Necessary certification and disclosure forms shall be provided by City.

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

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

32. Supplementary Conditions. When Funding for the services is provided, in whole or in part, by an agency of the state and/or federal government, Consultant shall also fully and adequately comply with the provisions in Exhibit E attached hereto and incorporated herein by reference (“State and Federal”). With respect to any conflict between such Federal Requirements and the terms of this Agreement and/or the provisions of state law, the more stringent requirement shall control.
[SIGNATURES ON FOLLOWING PAGE]
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16.16 City of Santa Cruz Professional Services Agreement for DESIGN ENGINEERING FOR BELTZ WELL 9 UPGRADES

FOR AQUIFER STORAGE AND RECOVERY
March 2026 Page 14

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

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

By: _____________________________ Date: __________________ Office of the City Attorney

CITY OF SANTA CRUZ
By: ______________________________ Date: _________________ Matt Huffaker
City Manager
CONSULTANT:

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

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

Water Director
Technical Review By:

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

16.17 City of Santa Cruz Professional Services Agreement for DESIGN ENGINEERING FOR BELTZ WELL 9 UPGRADES

FOR AQUIFER STORAGE AND RECOVERY
March 2026 Page 15
EXHIBIT A: SCOPE OF WORK
DRAFT

16.18 City of Santa Cruz
Design Engineering for
Beltz Well 9 Upgrades for Aquifer Storage and Recovery
7 4. TECHNICAL APPROACH AND WORK PLAN
Project Understanding
As part of the broader Water Supply Augmentation Strategy, the City is pursuing aquifer storage and recovery (ASR) to improve water supply reliability in dry years and support groundwater sustainability.

Toward this end, the City is converting several existing groundwater productions wells for ASR use.

Based on ASR pilot testing conducted at Beltz Well 9 (Beltz 9) in 2023-2024, the well was recommended for use as a permanent ASR well (Pueblo, 2025). With Beltz 12 in construction and Beltz 8 currently undergoing public bid for conversion to ASR wells, Beltz 9 will be the third ASR well within the City’s water system.

The Beltz 9 facility is located at 730 30th Avenue, Santa Cruz, CA (Facility or Site) in a residential neighborhood within unincorporated Santa Cruz County. The existing Facility includes:

1. A 230 foot well that is constructed of 14-inch diameter casing and screened between 110 and 200 feet below ground surface;

2. A 60 HP submersible pump;

3. A concrete well pedestal, discharge piping, and valves that connect to the raw water pipeline that conveys flow to the Beltz Water Treatment Plant (BWTP), which is located at Beltz Well 8, approximately 0.5 miles from the Site;

4. Two 2-inch diameter, 90-foot-long injection tubes installed in the well plate with orifice end caps of

1.25-inch and 1.50-inch in diameter;

5. Electrical and supervisory control and data acquisition (SCADA) equipment;

6. A 2.5-inch diameter monitoring well screened across the same interval as the Beltz Well 9; and

7. Various other water appurtenances (pressure gauge/sensor, fire hydrant, etc.).

Except for portions of the perimeter with mature trees that the City would like to protect, the Site is mostly paved. The Site’s northern portion is a driveway that can be used for temporary staging; however, the adjacent landowner has an access easement for the driveway. The Site does not have a storm drain or sanitary sewer connection for pumping to waste.

The scope of this project includes the following major components:
 Preparation of plans, specifications, and bid documents per City guidelines for the conversion of the Beltz 9 into an ASR system by adding injection piping and valves, modifying the existing Facility piping, and performing SCADA upgrades and integration to incorporate the new Beltz 9 ASR operations in the City’s existing operational scheme. The target injection flow rate is approximately 500 gallons per minute (gpm).
 Development of a preliminary (10%) design of an equalization tank and sanitary sewer and/or storm drain connections for the Beltz 9 Facility. The connection(s) may be used for future well blowoff/backflushing. The preliminary design will be used to facilitate discussions with Santa Cruz County, which owns and operates the sanitary sewer and storm drain systems adjacent to the site.  Assessment of electrical upgrades that would be required if the City elects to upsize the submersible well pump and motor, as well as optional tasks to perform a full design of these Exhibit A

16.19 City of Santa Cruz
Design Engineering for
Beltz Well 9 Upgrades for Aquifer Storage and Recovery
8 necessary upgrades (including mechanical design for new pump and piping). The target extraction rate for this alternative would be 750 gpm with an intermittent backflush rate of 1,000 gpm.  Incorporation of Water Infrastructure Finance and Innovation Act (WIFIA) loan requirements into bid documents, including provisions related to American Iron and Steel (AIS), the Davis-Bacon and Related Acts (DBRA), and prohibitions described in Public Law 115-232.

The City has established the following additional Project objectives, which EKI has integrated into its Project approach and the proposed scope of work that follows further below:
 Minimize new infrastructure improvements by utilizing as much of the existing Facility infrastructure as possible to limit construction costs and condense construction schedule.  Ensure both the Beltz 9 and BWTP facilities remain fully operational throughout construction.  Design the Beltz 9 ASR Facility with consideration for other Beltz well sites. Coordinate with the City to incorporate requirements from related projects, ensuring the ASR design is compatible across all existing and planned facilities.
 Include design elements that minimize noise and other operational- and construction-related impacts on the surrounding neighbors.

Our Approach to the Project Objectives
Based on our team’s experience, understanding of the City’s needs, and preliminary review of the site, we have developed an approach tailored to address several key project issues. EKI’s approach centers on robust pre-design and a thorough vetting of pipeline and injection infrastructure alternatives, prioritizing cost-effectiveness and operational flexibility throughout every stage of the design process.

Integrating New Piping into Existing Infrastructure
When installing new piping and equipment at an existing facility, it is critical to locate all above- and below-ground utilities, establish separation criteria, and eliminate access constraints. This ensures City staff have adequate operational space and that all pipeline configurations meet regulatory requirements.

Because record drawings are often incomplete or lack precise alignments for buried utilities, EKI recommends partnering with a private utility locator to identify and mark utilities on-site and along 30th Avenue, where water, sewer, and storm drain connections would be installed. We propose that the utility locator also assesses the location of tree roots within the site to limit potential damage during construction. At key locations, utility potholing would be performed during the design phase to confirm the exact position of existing utilities; this data would then be incorporated into the project design documents.

Based on our initial understanding of site utilities, we anticipate reusing the existing pump discharge piping and valves, provided they are in good condition. New infrastructure would include an underground injection pipeline (4- to 6-inch diameter), designed to connect to the water main in 30th Avenue. (See assumed existing utilities and potential injection piping shown in the figure below on the next page).

16.20 City of Santa Cruz
Design Engineering for
Beltz Well 9 Upgrades for Aquifer Storage and Recovery
9 Assumed Location of Existing Utilities and Potential Location of Injection Pipeline The injection piping would transition above ground where valves and appurtenance would be located.

We recommend maintaining the southern portion of the Site free from above grade piping for unobstructed access to the well to support future servicing and cleaning.

Cost-Effective Design and Infrastructure
Given the City’s desire to utilize existing infrastructure, the design package can be streamlined and right-sized to focus on the injection infrastructure. We propose an anticipated bid design package that includes 20 sheets comprising general, civil, mechanical, electrical, and instrumentation drawings. (See complete list in Task 2 below.) Based on EKI’s ASR and well equipping experience, we anticipate the following injection infrastructure will be included for this project:
 Connection to City water main;
 Backflow prevention device with a Y-strainer to capture sediment;  Electrically actuated shutoff valve that would close when the well is in production mode or if water levels get too high in the well casing during injection;  Flow meter to accurately measure injection flow rate;  Pressure gauge and sample tap;
 Manual gate valves; and
 Electrical equipment and conduit to connect the instruments to the City’s existing SCADA and controls.

Depending on how pressures fluctuate in the distribution system, adding a pressure regulating or reducing valve, as planned for the Beltz 8 facility, may be prudent. However, EKI will discuss pressure control options with City early in the design process.

N

16.21 City of Santa Cruz
Design Engineering for
Beltz Well 9 Upgrades for Aquifer Storage and Recovery
10 Example of Wellhead Injection and Extraction Piping Designed by EKI Use of Existing Pilot-Phase Injection Piping
As described in the RFP, the City would like to use the two existing injection tubes as part of the permanent system. This would eliminate the need to remove the pump and pump column piping during construction, limit material costs, and reduce future maintenance requirements associated with a downwell flow control valve. However, based on the target injection rate of 500 gpm (i.e., 250 gpm per tube), the velocity in these tubes would be approximately 24 feet per second, which may cause scouring of the interior of the pipes and impact longevity of the injection system.

To address this concern, EKI recommends reviewing injection piping options as part of the preliminary design report. EKI proposes a cost-benefit and constructability evaluation of several options, including (1) using the existing injection tubes (or replace with thicker walled pipes) anticipating that would need to be periodically replaced,
1 (2) installing a third 2-inch injection tube to reduce velocity, (3) installing larger diameter injection tubes if space within the casing and well plate allows, and (4) installing a downwell flow control valve (Baski, 3R Valve, V-Smart Valve, or similar). EKI would work with the City to select the most cost-effective alternative that meets the City’s operational and maintenance needs.

Operational Coordination Between Wells
Integrating the Beltz 9 ASR system into the City’s existing operational framework is vital to Project success. The City must be able to coordinate the new system’s operations with existing ASR wells (i.e., Beltz 8 and 12) as well as future ASR facilities (i.e., Beltz 4 and 10 and other planned sites).

Currently, raw water produced at Beltz 9 is conveyed to the BWTP located at the Beltz 8 site, where it is treated to drinking water standards along with the raw water produced from Beltz 8 and 10.

Consequently, it is critical that the Beltz 9 operational controls effectively coordinate flow rates, 1 Due to the high flow rates in the 2-inch piping, EKI would recommend removing the orifice caps if the injection tubes are used for the permanent system.

16.22 City of Santa Cruz
Design Engineering for
Beltz Well 9 Upgrades for Aquifer Storage and Recovery
11 pressures, backflush cycles, and water levels across the well network. This integration is essential to maintaining appropriate filter loading rates and optimal treatment performance, particularly if the Beltz 9 pump is upgraded.

Additionally, backflush water or pump-to-waste water from Beltz 9 can currently be routed to the existing 75,000-gallon reclaim tank located at the BWTP. However, given the increased volume of water that would result from backflushing Beltz 9 as part of ASR operations, 2 a new equalization tank may be
needed at the Beltz 9 Facility to store backflush water, so that water can be discharged at a lower rate to the sanitary sewer, storm drain, or reclaim tank (for treatment at the BWTP). EKI would work with the City to determine an appropriate operational strategy and evaluate whether a new equalization tank at the Beltz 9 Facility would facilitate improved operations.

Scope of Work
EKI proposes the following tasks and services as part of this scope of work.

Task 1: Kick-Off and Initial Site Visit
The EKI Team will facilitate an in-person design kick-off meeting of up to 5 hours with the project team at City’s offices and conduct an initial site visit at Beltz 9. Prior to the kick-off meeting, the EKI Team will request and review available record drawings and documents related to the Beltz 9 Facility and other relevant well facilities. During the kickoff meeting, EKI will discuss the following with City Water Operators and Engineers:
 Equipment orientation and site operational constraints  Preferred equipment manufacturers and uniformity with existing facilities  Lessons learned and potential cost savings from the City’s existing ASR well projects Deliverables Assumptions
 Meeting agenda and
post-meeting minutes.
 Kick-off meeting will be up to 5 hours in duration, held in-person at the City’s office in Santa Cruz. Kick-off meeting will include visits to two well sites.  Meeting agenda will be sent to City one week prior to kick-off meeting.

Task 2: 10% Design Submittal
Subtasks 2.1 – Site Investigations
The EKI Team will provide the following utility and site investigations:
 Initial Site Utility Research: EKI will review existing utility maps and data available on CivilGrid3 for possible instances that may be located within the project site boundaries from utility providers prior to survey and potholing.
2Backflushing may be performed at 1,000 gallons per minute for at least 10 minutes, and potentially up to 30 minutes under the “triple-backflush” operation discussed in the Beltz 9 Pilot Test Report [Pueblo, 2025]. This would result in a backflush volume of 10,000 – 30,000 gallons. 3 CivilGrid provides directly downloadable .DWG or .SHP files for utility locations such as PG&E. Utilizing this service allows EKI to bypass the lengthy lead time required to request PG&E maps in a PDF format for data files that can be directly incorporated into the basemap and design drawings.

16.23 City of Santa Cruz
Design Engineering for
Beltz Well 9 Upgrades for Aquifer Storage and Recovery
12  Utility and Tree Root Locating: Prior to the site survey, the EKI Team will utilize electronic detection and ground penetrating radar to locate and mark existing underground utilities on the Beltz 9 site and in portions of 30th Avenue adjacent to the site.
 Site Topographic Survey: Following utility locating, the EKI Team will set control points and perform a site topographic survey of the site and portions of 30th Avenue adjacent to the site to collect surface topography, locate surface features, and marked underground utilities.  Utility Potholing: Following the 10% design, EKI will develop and review a draft pothole plan with the City prior to finalizing and conducting potholing activities. The EKI Team, will prepare a County encroachment permit, and perform potholing and associated traffic control at up to five locations.

EKI will incorporate the utility depth and updated location data into subsequent design documents.

Subtask 2.2 - Basis of Design Report
EKI will develop a draft Basis of Design Report (BODR) describing the technical approach for the project. The BODR will include documentation of project objectives, project requirements, design assumptions, design criteria, initial hydraulic calculations, decisions, and planning level cost estimates as they apply to both the “Base Scope Design” and the optional Pump Upgrade Design (see below).

The BODR will also include:
 A list of all equipment that may be subject to AIS requirements and waiver request letters.  A cost-benefit analysis of injection alternatives described in the Challenges and Solution section.  A review and summary of the existing reclaim tank and sanitary sewer limits at the BWTP and determination of whether it can accommodate the new ASR waste stream from Beltz 9, factoring in waste streams from other well sites.
 A review and summary of the pumping operations into the raw water pipeline from the Beltz 8 and Beltz 10 wells, and how the new Beltz 9 may affect these operations.  A review and summary of the benefits/drawbacks of and permitting requirements for utilizing the raw water pipe blowoff to discharge waste streams directly to a creek.  Development of backflush and pump-to-waste discharge alternatives using the existing raw water pipeline, BWTP reclaim tank and sanitary sewer connection, and/or existing storm drain blow off at Beltz 1 & 2 site.
 All other items listed under “Section 1.1 - 10% Basis of Design Report” of the SCWD Water Program Design Submittal Checklist.

Subtask 2.3 - 10% Design
EKI will develop a 10% design of the “Base Scope Design” which assumes use of the existing 60 HP well pump and motor. This design will include 10% level design drawings, a specifications table of contents, Class IV Construction Cost Estimate per the Association for the Advancement of Cost Engineering (AACE), a preliminary construction schedule, and relevant supporting documents. The anticipated list of contract drawings for the Project (without optional tasks) is presented in the following table along with the anticipated deliverables in which they will be included.

EKI will also develop a 10% design, cost analysis, and schedule for the “Pump Upgrade Design” which assumes an upgraded submersible pump, motor, column pipe, and associated electrical, piping, equipment, to achieve a nominal pumping rate of 750 gpm with intermittent backflush pumping at 1,000

16.24 City of Santa Cruz
Design Engineering for
Beltz Well 9 Upgrades for Aquifer Storage and Recovery
13 gpm. The design will include an electrical capacity analysis to determine feasibility of upgrading the submersible pump and motor.

Sheet
No. Description (Anticipated Deliverable) Sheet No. Description (Anticipated Deliverable) G-1 Title Sheet (50%, 100%, Final) GE-1 Electrical Symbols and Abbreviates (50%, 100%, Final) G-2 Abbreviations and Notes (50%, 100%, Final) GE-2 Electrical Installations Details (50%, 100%, Final) G-3 Symbols and Legends (50%, 100%, Final) E-1 Electrical Single Line Diagram (10%, 50%, 100%, Final) D-1 Demolition Plan and Sections (50%, 100%, Final) E-2 Electrical Site Plan (10%, 50%, 100%, Final) C-1 Existing Site Plan (50%, 100%, Final) E-3 Panelboard and Conduit Schedules (50%, 100%, Final) C-2 Proposed Civil Site and Yard Piping Plan (10%,
50%, 100%, Final) E-4 Control Schematics - Valve Actuator (50%, 100%, Final) C-3 Civil Details I (50%, 100%, Final) GI-1 Instrumentation Legend and Abbreviations (50%, 100%, Final)
M-1 Well Mechanical Plan (10%, 50%, 100%, Final) GI-2 Instrumentation Installation Details (50%, 100%, Final) M-2 Well Mechanical Sections (50%, 100%, Final) I-1 Well P&ID (10%, 50%, 100%, Final) M-3 Mechanical Details and Valve Schedule (50%,
100%, Final) I-2 Partial Network Architecture Diagram (50%, 100%, Final) The 10% Design drawings for both the Base Scope and Pump Upgrade designs will include a draft list of drawings, a flow diagram, a civil site plan, and a yard piping plan.

Subtask 2.4 - 10% Design for Sanitary Sewer and Storm Drain Systems EKI will develop a 10% design, cost analysis, and schedule for connections to the sanitary sewer and storm drain systems, including onsite equalization tank(s) as alternatives for discharge of backflushing from Beltz 9. EKI’s scope will include:
 Preparation of 10% level design figures displaying layouts of alternatives and connection locations.  Coordination directly with the County to obtain information about their existing facilities, including depths, and understand proposed upgrades of the County sanitary sewer and storm drain piping near the site.

Deliverables Assumptions
 Basis of Design Report
 10% Design Drawings
 Specification Table of
Contents
 Class IV Cost Estimate
(per AACE)
 Preliminary construction
schedule
 Subconsultant reports will be attached to the relevant design report.  Construction schedule will be in Microsoft Project format.  No geotechnical investigation will be needed for this project.  No boundary survey will be required.
 Existing electrical service is assumed to be adequate for Facility power requirements. Coordination with PG&E to update the service can be done under a separate scope of work.
 Existing electrical and SCADA equipment has available input/output connection points for new instruments. The EKI Team will review SCADA equipment at the Beltz 9 well facility and at the Beltz WTP during the design site visit.

16.25 City of Santa Cruz
Design Engineering for
Beltz Well 9 Upgrades for Aquifer Storage and Recovery
14 Deliverables Assumptions
 The City’s SCADA integration consultant will provide information on existing City system standards.
 One site visit is assumed by EKI during 10% design.
 Submittal design review meetings are included in Task 6.

Task 3: 50% Design Submittal
Subtask 3.1 - 50% Design for Base Scope
The EKI Team will develop a 50% design for the Base Scope, which includes (1) select drawings (see Task 2.3), (2) draft front end and technical specifications, (3) Class II Cost Estimate (per AACE), (4) anticipated construction schedule, and (5) any supporting documents. The updates will follow the requirements as laid out in Section 1.2 of the SCWD Water Program Design Submittal Checklist.

Additionally, EKI will provide a 50% design report which is anticipated to include (1) a plan for acquisition of all permits, (2) updated hydraulic calculations, (3) draft control narratives, (4) major equipment and instrumentation selections, (5) preliminary calculations, (6) a description of interfaces with the existing facilities and SCADA system, and (7) documentation of decisions made during the design process.

EKI will record, track, and respond to 10% design comments and incorporate the resolutions within the 50% design.

Optional Subtask 3.2 - 50% Design for Pump Upgrade Scope The EKI Team will develop a 50% design for the Pump Upgrade Scope, as described in Subtask 2.3.

This scope would be additive to Subtask 3.1. Additional design documents are anticipated to include:
(1) up to three additional civil/mechanical sheets and four electrical/instrumentation sheets, and (2) specifications such as a pump and motor specification, additional instrumentation specifications, and updates to the control strategy.

Deliverables Assumptions
 50% Design Drawings
 50% Design specifications
 50% Level Class II Cost Estimate
(per AACE)
 50% Design Report
 50% Design Valve Schedule
 Anticipated Construction Schedule
 10% Design Submittal Comment
Log
 City staff will provide all City specific specifications that pertain to Section 00 and 01 with EKI providing supplementary portions of this section and relevant technical specifications.
 Construction schedule will be in Microsoft Project format.  EKI will be available for one site visit during design.  Existing electrical equipment will be replaced.
 Submittal design review meetings are included in Task 6.  City will provide review comments within 5 weeks after submittal of 50% design submittal.

Task 4: 100% Design Submittal
Subtask 4.1 - 100% Design for Base Scope
The EKI Team will develop a 100% design for the Base Scope, which includes (1) a complete set of drawings (see Task 2.3), (2) front end and technical specifications, (3) Class I Cost Estimate (per AACE), and (4) any supporting documents. The updates will follow the requirements as laid out in section 1.2 of the SCWD Water Program Design Submittal Checklist.

16.26 City of Santa Cruz
Design Engineering for
Beltz Well 9 Upgrades for Aquifer Storage and Recovery
15 Additionally, EKI will provide a 100% design report which is anticipated to include (1) a construction sequencing plan and schedule, (2) all discipline calculations updated and complete, and (3) documentation of decisions made during the design process. EKI will record, track, and respond to 50% design comments and incorporate the resolutions within the 100% design.

After City review of the 100% design EKI will incorporate the final review comments and compile, sign, and seal the final set of plans and specifications for bid.

Optional Subtask 4.2 - 100% Design for Pump Upgrade Scope The EKI Team would develop a 100% design for the Pump Upgrade Scope, as described in Subtask

2.3. This scope would be additive to Subtask 4.1. 100% design documents and would include those described in Subtask 3.2.

Deliverables Assumptions
 100% Design Drawings
 100% Design specifications
 100% Level Class I Cost Estimate (per
AACE)
 100% Design Report
 100% Design Valve Schedule
 Anticipated Construction Schedule
 Final Bid Package including City’s desired
revisions from 100% Design Packet
 50% Design Submittal Comment Log
 Construction schedule will be in Microsoft Project format.  One site visit is assumed.
 Assume for Optional Subtask 4.2 that the existing electrical equipment will be replaced.
 Submittal design review meetings are included in Task 6.  City will provide review comments within 5 weeks after submission of 100% design submittal.

Task 5: Permitting Support for Construction
EKI will assist the City with project permitting as follows:
 EKI will develop a design that meets State Water Resources Control Board Division of Drinking Water (DDW) main separation requirements and all other State drinking water standards and complete waiver request forms if requirements cannot be met. EKI will communicate with DDW and the Regional Water Quality Control Board (RWQCB) through the City.  EKI will provide calculations for proposed construction land disturbance area needed for County stormwater fee.

Deliverables Assumptions
 Waiver request, if
required.
 Land disturbance area
calculations to County.
 CEQA permitting is complete with an available EIR and no changes to the EIR are anticipated requiring updates to CEQA documentation.
 Revisions to the City’s operations plan under the DDW permit will not be needed from EKI.

Task 6: Meeting and Cross Project Coordination
The following meetings are assumed:
 EKI’s PM will attend and lead virtual, weekly 30-minute design progress meetings with City’s PM for a total of 28 meetings based on the anticipated design schedule.

16.27 City of Santa Cruz
Design Engineering for
Beltz Well 9 Upgrades for Aquifer Storage and Recovery
16  EKI will attend and lead virtual 1-hour monthly design progress meetings with City Operations and consulting hydrogeologist invited as needed for a total of 12 meetings based on the anticipated design schedule. The agendas and related documents will be submitted to City 1 week before the meeting.
 EKI will attend virtual, monthly 30-minute meetings to coordinate schedules and potential impacts from activities of related City projects for a total of 12 meetings based on the anticipated design schedule.
 EKI will attend and lead one virtual Process Control Meeting per design submittal (assumed to be 2 hours each), for a total of 3 meetings occurring for the 10%, 50%, and 100% design submittals.

Deliverables Assumptions
 Meeting agendas and
minutes for all meetings
 Design deliverable review meetings will occur during one of the monthly design progress meetings.
 Weekly meetings will not be required during City review periods.  Meeting minutes to be sent within 2 business days following each meeting.  EKI's project manager will schedule, attend, and lead each meeting. EKI will work with City to schedule each meeting.

Task 7: Project Management and Quality Assurance/Quality Control (QA/QC)  EKI will perform general project management tasks, including as-needed communications and consulting services, budget tracking, invoicing, and schedule updates. Each monthly invoice will include a progress summary report describing the work performed during that month and the next steps for the Project.
 EKI will prepare a Project Quality Plan that includes, a description and schedule of quality activities, identification of quality reviewers and their roles and responsibilities, and a list of quality management records that will be maintained on file and provided to the City with each deliverable.

Deliverables Assumptions
 Invoices, monthly reports, and
monthly project schedule
updates
 Project Quality Plan
 Quality management records
with each deliverable
 Budget for QA/QC of design and deliverables is included in related tasks.
 Budget assumes PM support for a project duration of up to 12 months.
 EKI will utilize Water Program templates for invoices, monthly reports, etc.
 Project and construction schedules will be in Microsoft Project format.

16.28 City of Santa Cruz
Design Engineering for
Beltz Well 9 Upgrades for Aquifer Storage and Recovery
17 Matrix of personnel, tasks, and an estimated effort in hours for the Design Engineering services for the Beltz Well 9 Upgrades for ASR.

Tasks EKI Effort Hours Subconsultant: TJCAA Effort Hours G4 - Staff Eng/Geo G1 - C. Minerman G1 - S. Cronin Sup1 - T. Beaman Sup1 - T- Colyer Pri - J. Gain QA/QC J. Arama PM - M. Campagna PE - I. Huang CADD - B. Vue Admin Task 1 - Kick-Off and Initial Site
Visit
6 14 0 0 12 8 0 13 2 0 0
Task 2 - 10% Design Submittal 230 80 30 19 32 5 2 19 36 0 0 Task 3 - 50% Design Submittal 130 48 0 15 35 4 2 28 76 18 5 Task 4 - 100% Design Submittal 102 42 0 11 30 4 2 15 29 6 3 Task 5 - Permitting Support for
Construction
20 8 0 0 2 0 0 0 0 0 0
Task 6- Meetings and Cross Project
Coordination
36 70 0 0 70 18 0 10 10 0 0
Task 7- Project Management and
QA/QC
24 12 0 12 34 10 0 15 0 0 4
Optional Tasks: 32 18 0 6 12 0 4 22 40 6 3
TOTAL 548 274 30 57 215 49 6 100 153 24 12
TOTAL (w/Optional Tasks): 580 292 30 63 227 49 10 122 193 30 15 Note: Labor hours for Meridian (Survey) and Exaro (Potholing and Utility Locating) not included.

16.29 City of Santa Cruz Professional Services Agreement for DESIGN ENGINEERING FOR BELTZ WELL 9 UPGRADES

FOR AQUIFER STORAGE AND RECOVERY
March 2026 Page 16
EXHIBIT B: FEE SCHEDULE
DRAFT

16.30 EKI C60020.00 | 4 February 2026

COST PROPOSAL FOR
Design Engineering
for Beltz Well 9
Upgrades for Aquifer
Storage and Recovery
RFP NO. WT- 0273
environment
& water
Est. 1989 35 Years Making an Impact

16.31 Table 1 - Detailed Cost Proposal by Task
City of Santa Cruz Beltz Well 9 Upgrades for Aquifer Storage and Recovery G4 - Staff Eng/Geo G1- C.Minerman G1- S.Cronin Sup1 - T. Beaman Sup1 - T- Colyer Pri - J.Gain EKI Labor Subtotal TOTAL including 4% Comm. Charge (1) QA/QC Jacqueline PM - McKenzie Campagna PE-Isabel Huang CADD - Bee Vue Admin Other Direct Costs TOTAL TJCAA COSTS Exaro (Potholing Utility Locating) Meridian (Surveying) OTHER DIRECT COSTS (2) TOTAL EXPENSES 199 255 255 343 343 353 Hours ($) 307 266 238 191 142 1 ($) ($) ($) 0% ($) 15% ($) ($) ($) Task 1 - Kick-Off and Initial Site Visit
Initial Document and As-Built Review 4 2 6 $1,774 2 2 $1,008 $0 $1,008 $0 $2,782 5 Hour In Person Site-Visit (1), w/agenda and meeting minutes 6 10 10 8 34 $10,398 11 $ 312 $3,238 $0 $3,238 $110 $127 $13,763 Subtotal 6 14 0 0 12 8 40 $12,172 0 13 2 0 0 $ 312 $4,246 $0 $0 $0 $4,246 $110 $127 $16,545 $17,000 Task 2 - 10% Design Submittal
Subtask 2.1 - Site Investigations
Utility and Tree Root Locating 4 4 8 $1,889 $0 $4,740 $0 $4,740 $0 $6,629 Site Survey and Utility Research 12 2 14 $3,014 $0 $9,200 $0 $9,200 $0 $12,214 Potholing 8 2 10 $2,186 $0 $17,276 $0 $17,276 $0 $19,462 Site Visit 6 6 12 $3,382 6 6 $ 624 $3,648 $0 $3,648 $110 $127 $7,157 Subtask 2.2 - Basis of Design Report
Basis of Design Report and Construction Schedule 96 40 10 8 10 4 168 $41,018 2 13 30 $11,212 $0 $11,212 $0 $52,230 Subtask 2.3 - 10% Design (Inclusive of Base Scope and Pump Upgrade Scope) 10% Design Drawings 32 16 6 10 1 65 $16,941 $0 $0 $0 $0 $16,941 10% Design Specifications TOC 8 4 1 1 14 $3,430 $0 $0 $0 $0 $3,430 10% Opinion of Probable Construction Cost 16 6 1 2 25 $5,973 $0 $0 $0 $0 $5,973 Subtask 2.4 - 10% Design for Sanitary Sewer and Storm Drain Systems 10% Design Figures of SS and SD Design Connections 32 4 16 2 2 56 $13,354 $0 $0 $0 $0 $13,354 10% Opinion of Probable Construction Cost for Each Backflush Discharge Alternative 16 2 4 1 1 24 $5,616 $0 $0 $0 $0 $5,616 Subtotal 230 80 30 19 32 5 396 $96,801 2 19 36 0 0 $ 624 $14,860 $22,016 $9,200 $0 $46,076 $110 $127 $143,004 $143,000 Task 3 - 50% Design Submittal
Subtask 3.1 - 50% Design for Base Scope
Record, Track, and Respond to 10% Design Comments 4 2 1 1 8 $2,082 $0 $0 $0 $0 $2,082 Site Visit 6 6 12 $3,382 6 $ 312 $1,908 $0 $1,908 $110 $127 $5,417 50% Design Report and Construction Schedule 12 4 2 2 1 21 $5,338 4 8 $2,968 $0 $2,968 $0 $8,306 50% Base Scope Design Drawings 68 32 8 16 2 126 $31,855 1 10 35 18 2 $15,019 $0 $15,019 $0 $46,874 50% Base Scope Design Specifications 32 8 4 8 52 $13,025 1 6 29 3 $9,231 $0 $9,231 $0 $22,256 8 2 1 2 13 $3,256 2 4 $1,484 $0 $1,484 $0 $4,740
Subtotal 130 48 0 15 35 4 232 $58,939 2 28 76 18 5 $ 312 $30,610 $0 $0 $0 $30,610 $110 $127 $89,676 $90,000 Task 4 -100% Design Submittal
Subtask 4.1 - 100% Design for Base Scope
Record, Track, and Respond to 50% Design Comments 4 2 1 1 8 $2,082 $0 $0 $0 $0 $2,082 Site Visit 6 6 12 $3,382 6 $ 312 $1,908 $0 $1,908 $110 $127 $5,417 100% Design Report and Construction Schedule 12 4 2 2 1 21 $5,338 2 4 $1,484 $0 $1,484 $0 $6,822 100% Base Scope Design Drawings 44 24 4 12 2 86 $21,913 1 3 12 6 1 $5,249 $0 $5,249 $0 $27,162 100% Base Scope Design Specifications 16 4 2 4 26 $6,512 1 2 6 2 $2,551 $0 $2,551 $0 $9,063 6 2 1 1 10 $2,486 1 3 $980 $0 $980 $0 $3,466
Prepare Final Bid Package 14 6 2 4 26 $6,629 1 4 2 $1,600 $0 $1,600 $0 $8,229 0 Subtotal 102 42 0 11 30 4 189 $48,342 2 15 29 6 3 $ 312 $13,772 $0 $0 $0 $13,772 $110 $127 $62,241 $62,000 Task 5 - Permitting Support for Construction (Allowance) Permit support (County, DDW, RWQCB) 20 8 2 30 $6,974 $0 $0 $0 $0 $6,974 0 Subtotal 20 8 0 0 2 0 30 $6,974 0 0 0 0 0 $ - $0 $0 $0 $0 $0 $0 $0 $6,974 $7,000 Task 6 - Meetings and Cross Project Coordination
Weekly 30-minute Virtual Meetings with City (28) 28 28 56 $17,414 $0 $0 $0 $0 $17,414 Monthly 1-hour Virtual Design Progress Meetings (12) 24 18 18 12 72 $20,567 2 2 $1,008 $0 $1,008 $0 $21,575 Monthly 30-minute Virtual Coordination Meetings (12) 12 12 6 30 $9,666 $0 $0 $0 $0 $9,666 2-hour Process Control Virtual Meetings for Each Design Submittal (3) 12 12 12 36 $9,947 8 8 $4,032 $0 $4,032 $0 $13,979 0 Subtotal 36 70 0 0 70 18 194 $57,593 0 10 10 0 0 $ - $5,040 $0 $0 $0 $5,040 $0 $0 $62,633 $63,000 Task 7- Project Management and Quality Assurance/Quality Control (QA/QC) Monthly Invoicing, Report, and Schedule Updates 12 30 6 48 $16,087 15 4 $4,558 $0 $4,558 $0 $20,645 Quality Assurance/Quality Control (QA/QC) Plan 24 12 4 4 44 $12,143 $0 $0 $0 $0 $12,143 Subtotal 24 12 0 12 34 10 92 $28,230 0 15 0 0 4 $ - $4,558 $0 $0 $0 $4,558 $0 $0 $32,788 $33,000 TOTAL: 548 274 30 57 215 49 1,173 $309,052 6 100 153 26 12 $1,560 $73,086 $22,016 $9,200 $0 $104,302 $441 $507 $413,861 $415,000 Optional Tasks
Subtask 3.2 - 50% Design for Pump Upgrade Scope (Additive to Task 3.1) 20 10 4 8 42 $11,072 2 22 40 6 2 $17,416 $0 $17,416 $0 $28,488 Subtask 4.2 - 100% Design for Pump Upgrade Scope (Additive to Task 4.1) 12 8 2 4 26 $6,745 2 22 40 6 1 $17,274 $0 $17,274 $0 $24,019 Subtotal 32 18 0 6 12 0 68 $17,817 4 44 80 12 3 $ - $34,690 $0 $0 $0 $34,690 $0 $0 $52,507 $53,000 TOTAL w/ OPTIONAL TASKS: 580 292 30 63 227 49 1,241 $326,869 10 144 233 38 15 $1,560 $107,776 $22,016 $9,200 $0 $138,992 $441 $507 $466,368 $468,000 50% Base Scope Design Opinion of Probable Construction Cost 100% Base Scope Design Opinion of Probable Construction Cost Expenses
TASKS
Subtotals
EKI Labor
Rounded
Totals
Other Subconsultant
Labor MARKUP TOTAL SUBCONSULTANT COSTS
Subconsultant Labor:

TJCAA (Process Control Engineer)
Notes:
(1) A communications charge of 4% of labor costs
covers e-mail access, web conferencing, cellphone
calls, messaging and data access, file sharing, local
and long distance telephone calls and conferences,
facsimile transmittals, standard delivery U.S.
postage, and incidental in-house copying.
(2) "Other Direct Costs" includes direct expenses, as
listed below, incurred in connection with the work
and will be reimbursed at cost plus ten percent
(15%) for items such as:

Maps, photographs, reproductions, printing,
equipment rental, and special supplies related to
the work.

Rented vehicles, local public transportation and
taxis, travel and subsistence.

Special fees, insurance, permits, and licenses
applicable to the work.

Outside computer processing, computation, and
proprietary programs purchased for the work.

City of Santa Cruz
Design Engineering for
Beltz Well 9 Upgrades for Aquifer Storage and Recovery
1 16.32
City of Santa Cruz
Design Engineering for
Beltz Well 9 Upgrades for Aquifer Storage and Recovery
2 SCHEDULE OF CHARGES FOR
EKI ENVIRONMENT & WATER, INC. 1 January 2026
Personnel Classification Hourly
Rate
Personnel Classification Hourly
Rate
Officer and Chief Engineer-Scientist 366 Engineer-Scientist, Grade 4 199 Principal Engineer-Scientist 353 Engineer-Scientist, Grade 5 175 Supervising I, Engineer-Scientist 343 Engineer-Scientist, Grade 6 152 Supervising II, Engineer-Scientist 329 Project Assistant 143 Senior I, Engineer-Scientist 315 Technician 137
Senior II, Engineer-Scientist 304 Senior GIS / Database Analyst 180 Associate I, Engineer-Scientist 291 CADD Operator / GIS Analyst 157 Associate II, Engineer-Scientist 275 Senior Administrative Assistant 172 Engineer-Scientist, Grade 1 255 Administrative Assistant 136 Engineer-Scientist, Grade 2 241 Secretary 114
Engineer-Scientist, Grade 3 221
Direct Expenses
Reimbursement for direct expenses, as listed below, incurred in connection with the work will be at cost plus fifteen percent (15%) for items such as:
a. Maps, photographs, reproductions, printing, equipment rental, and special supplies related to the work.
b. Rented vehicles, local public transportation and taxis, travel, and subsistence. c. Special fees, insurance, permits, and licenses applicable to the work. d. Outside computer processing, computation, and proprietary programs purchased for the work.

A Communication charge for e-mail access, web conferencing, cellphone calls, messaging and data access, file sharing, local and long distance telephone calls and conferences, facsimile transmittals, standard delivery U.S. postage, and incidental in-house copying will be charged at a rate of 4% of labor charges. Large volume copying of project documents, e.g., bound reports for distribution or projectspecific reference files, will be charged as a project expense as described above.

Reimbursement for use of personal vehicles will be at the federally allowed rate plus fifteen percent (15%). Reimbursement for company-owned vehicles used in connection with the work will be at the federally allowed rate. There will be an additional charge of thirty dollars ($30.00) per day for company-owned vehicles used for field work.

CADD and other specialized software computer time will be charged at twenty dollars ($20.00) per hour. In-house material and equipment charges will be in accordance with the current rate schedule or special quotation. Excise taxes, if any, will be added as a direct expense.

Rate for professional staff for legal proceedings or as expert witnesses will be at a rate of one and onehalf times the Hourly Rates specified above. The foregoing Schedule of Charges is incorporated into the Agreement for the Services of EKI Environment & Water, Inc. and may be updated annually.

16.33 2001 Junipero Serra Blvd., Suite 300 | Daly City, CA 94014 (650) 292-9100 | Fax (650) 552-9012 | Ekiconsult.com
Cover Page Pictures Courtesy:

Google Maps
EKI Projects Pictures

16.34 City of Santa Cruz Professional Services Agreement for DESIGN ENGINEERING FOR BELTZ WELL 9 UPGRADES

FOR AQUIFER STORAGE AND RECOVERY
March 2026 Page 17
EXHIBIT C: WORK SCHEDULE

16.35 ID Task Name Duration Start Finish
1 Notice to Proceed 0 days Tue 3/17/26 Tue 3/17/26
2 Task 1 - Kick-Off and Initial Site Visit 20 days Tue 3/17/26 Mon 4/13/26 3 Initial Document and As-Built Review 20 days Tue 3/17/26 Mon 4/13/26 4 Kickoff Meeting and Site Visit 0 days Wed 3/25/26 Wed 3/25/26 5 Task 2 - 10% Design Submittal 117 days Wed 4/8/26 Fri 9/18/26 6 Subtask 2.1 - Site Investigations 117 days Wed 4/8/26 Fri 9/18/26 7 Utility Locating 0 days Wed 4/8/26 Wed 4/8/26
8 Site Survey 20 days Mon 4/13/26 Fri 5/8/26
9 Potholing 20 days Mon 8/24/26 Fri 9/18/26
10 Subtask 2.2 - Basis of Design Report 35 days Mon 4/27/26 Fri 6/12/26 11 Subtask 2.3 - 10% Design 25 days Mon 5/11/26 Fri 6/12/26 12 Subtask 2.4 - 10% Design for Sanitary Sewer and Storm Drain Systems 25 days Mon 5/11/26 Fri 6/12/26 13 City Review (2 months) 40 days Mon 6/15/26 Fri 8/7/26 14 Task 3 - 50% Design Submittal 65 days Mon 8/10/26 Fri 11/6/26 15 Subtask 3.1 - 50% Design for Base Scope 40 days Mon 8/10/26 Fri 10/2/26 16 Optional Subtask 3.2 - 50% Design for Pump Upgrade Scope 40 days Mon 8/10/26 Fri 10/2/26 17 City Review (5 weeks) 25 days Mon 10/5/26 Fri 11/6/26 18 Task 4 - 100% Design Submittal 86 days Mon 11/9/26 Tue 3/9/27 19 Subtask 4.1 - 100% Design for Base Scope 30 days Mon 11/9/26 Fri 12/18/26 20 Optional Subtask 3.2 - 100% Design for Pump Upgrade Scope 30 days Mon 11/9/26 Fri 12/18/26 21 City Review (5 weeks) 25 days Mon 12/21/26 Fri 1/22/27 22 Prepare Final Bid Package 10 days Mon 1/25/27 Fri 2/5/27 23 Council Approval of Bid Documents 20 days Mon 2/8/27 Fri 3/5/27 24 Target Council Meeting 0 days Tue 3/9/27 Tue 3/9/27
25 Task 5 - Permitting Support for Construction 90 days Mon 10/5/26 Fri 2/5/27 26 Permit Support 90 days Mon 10/5/26 Fri 2/5/27
27 Task 6 - Meetings and Cross Project Coordination 227 days Thu 3/26/26 Fri 2/5/27 28 Weekly Meetings 227 days Thu 3/26/26 Fri 2/5/27
29 Monthly Design Progress Meetings 227 days Thu 3/26/26 Fri 2/5/27 30 Monthly Coordination Meetings 227 days Thu 3/26/26 Fri 2/5/27 31 Process Control Meetings for Each Design Submittal 120 days Fri 8/7/26 Fri 1/22/27 32 10% Design Meeting 0 days Fri 8/7/26 Fri 8/7/26
33 50% Design Meeting 0 days Fri 11/6/26 Fri 11/6/26
34 100% Design Meeting 0 days Fri 1/22/27 Fri 1/22/27
35 Task 7 - Project Management and QA/QC 250 days Thu 3/26/26 Wed 3/10/27 36 Monthly Invoicing 250 days Thu 3/26/26 Wed 3/10/27
37 QA/QC Plan 10 days Thu 3/26/26 Wed 4/8/26
3/17
4/13
3/25 Kickoff Meeting and Site Visit
4/8 Utility Locating
5/8
9/18
6/12
6/12
6/12
8/7
10/2
10/2
11/6
12/18
12/18
1/22
2/5
3/5
3/9
2/5
2/5
2/5
2/5
10% Design Meeting 8/7
50% Design Meeting 11/6
100% Design Meeting 1/22
3/10
4/8

M A M J J A S O N D J F M
Half 2, 2026 Half 1, 2027
Task Milestone Summary
Project Schedule
Beltz Well 9 Aquifer Storage and Recovery Design
City of Santa Cruz
Date Printed: Wed 2/4/26
City of Santa Cruz
Design Engineering for
Beltz Well 9 Upgrades for Aquifer Storage and Recovery
18 16.36
City of Santa Cruz Professional Services Agreement for
DESIGN ENGINEERING FOR BELTZ WELL 9 UPGRADES

FOR AQUIFER STORAGE AND RECOVERY
March 2026 Page 18
EXHIBIT D: INSURANCE REQUIREMENTS
Consultant shall procure and maintain insurance against claims for injuries to persons or damages to property and otherwise which may arise from or in connection with the performance of the work under this Agreement and the results of that work by Consultant, its agents, representatives, employees, or subcontractors.

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

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

Coverage will be at least as broad as:
• COMMERCIAL GENERAL LIABILITY (CGL): $1,000,000 PER OCCURRENCE; $2,000,000 AGGREGATE Proof of coverage for $1 Million per occurrence and $2 Million in the aggregate including products and completed operations, property damage, bodily injury, personal and advertising injury will be provided on Insurance Services Office (ISO) Form CG 00 01 covering CGL. • PROFESSIONAL LIABILITY (ERRORS AND OMISSIONS): $2,000,000 PER OCCURRENCE OR CLAIM, $2,000,000 AGGREGATE.

Consultant will maintain insurance appropriate to Consultant’s profession; with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after date of completion of the services under this Agreement. If coverage is canceled or non-renewed and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date or start of work date, Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of the contract of work.
• AUTOMOBILE LIABILITY:

Proof of coverage for $1,000,000 provided on ISO Form Number CA 00 01 covering any auto (Code 1), or if Consultant has no owned autos, hired, (Code 8) and non-owned autos (Code 9), per accident for bodily injury and property damage.

16.37 City of Santa Cruz Professional Services Agreement for DESIGN ENGINEERING FOR BELTZ WELL 9 UPGRADES

FOR AQUIFER STORAGE AND RECOVERY
March 2026 Page 19
• WORKERS’ COMPENSATION AS REQUIRED BY THE STATE OF CALIFORNIA, WITH STATUTORY LIMITS, AND EMPLOYER’S LIABILITY INSURANCE: $1,000,000 per accident for bodily injury or disease.

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

C. OTHER INSURANCE PROVISIONS
The insurance policies are to comply with the following provisions:
• ADDITIONAL INSURED STATUS
The City, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of Consultant including materials, parts, or equipment furnished in connection with such work or operations, products and completed operations. General liability coverage will be provided in the form of an endorsement to Consultant’s insurance at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 (if a later edition is used).
• PRIMARY COVERAGE
For any claims related to this Agreement, Consultant’s and all subcontractor’s insurance coverage will be primary and non-contributory as respects the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents, or volunteers will be excess of Consultant’s and all subcontractor’s insurance and will not contribute with it.
• NOTICE OF CANCELLATION
Each insurance policy required above shall state that the coverage shall not be canceled, except with notice to the City.
• WAIVER OF SUBROGATION
Consultant hereby grants to the City a waiver of any right to subrogation, except as otherwise not applicable, which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss, including attorney’s fees under such insurance. Consultant agrees to obtain any endorsement that may be necessary to effectuate this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. • EXCESS LIABILITY/UMBRELLA INSURANCE POLICIES
Consultant may use excess liability/umbrella policies to meet the required liability limits on the condition that they provide all of the insurance coverages required herein, including, but not limited to, primary and non-contributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements. The excess liability/umbrella insurance policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying CGL insurance. No insurance policies maintained by the additional insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Consultant’s primary and excess liability policies are exhausted. • SELF-INSURED RETENTIONS (SIR)

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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.

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EXHIBIT - D
Supplementary Provisions

1. Debarment And Suspension per Federal Executive Order 12549, 51 Fr 6370, February 21, 1986 Consultant certifies that it will not knowingly enter into a contract with anyone who is ineligible under the 40 CFR Part 32 to participate in the Project. Suspension and debarment information can be accessed at http://www.sam.gov. Consultant represents and warrants that it has or will include a term or conditions requiring compliance with this provision in all of its subcontracts under this Agreement.

2. Debarment And Suspension per CA State Water Resources Control Board A. Contractor must not allow subcontracting with excluded parties. For any work related to this Agreement, Contractor must not contract with any individual or organization on the State Water Board’s List of Disqualified Businesses and Persons that is identified as debarred or suspended or otherwise excluded from or ineligible for participation in any work overseen, directed, funded, or administered by the State Water Board program. The State Water Board’s List of Disqualified Businesses and Persons is located at http://www.waterboards.ca.gov/water_issues/programs/enforcement/fwa/dbp.shtml.

B. The contract is a covered transaction for purposes of 2 CFR Part 180 and 2 CFR Part 3000. As such, the Contractor is required to verify that none of the Contractors, its principals (defined at 2 CFR § 180.995), or its affiliates (defined at 2 CFR § 180.905) are excluded (defined at 2 CFR § 180.940) or disqualified (defined at 2 CFR § 180.935).

C. The Contractor must comply with 2 CFR Part 180, Subpart C and 2 CFR Part 3000, Subpart C and must include a requirement to comply with these regulations in any subcontract.

D. If it is later determined that the Contractor did not comply with 2 CFR Part 180, Subpart C and 2 CFR Part 3000, Subpart C, in addition to remedies available to the City, the Federal Government may pursue available remedies, including, but not limited to, suspension and/or debarment.

E. The bidder or proposer agrees to comply with the requirements of 2 CFR Part 180, Subpart C and 2 CFR Part 3000, Subpart C while this offer is valid and throughout the period of any contract that may arise from this offer. The bidder or proposer further agrees to include a provision requiring such compliance in its subcontracts.

F. Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion – Lower Tier Covered Transactions

1. The Contractor certifies, by submission of this bid, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared negligible, or voluntarily excluded from participation in this transaction by any federal department or agency.

2. Where the Contractor is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to the bid.

3. The Contractor also certifies that it and its principals:
a. Have not within a three-year period preceding this bid been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state or local) transaction or contract under a public transaction; violation of federal or state anti-trust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; b. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal, state or local) with commission of any of the offenses enumerated in paragraph 1.07.E.3.a of this certification; and

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c. Have not within a three-year period preceding this bid had one or more public transactions (federal, state or local) terminated for cause or default. Where the Contractor is unable to certify to any of the above, such owner shall attach an explanation to the bid;
d. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the federal government, the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment;
e. The Contractor shall incorporate the foregoing requirements in all subcontracts.

3. Equal Employment Opportunity
A. The Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin, ancestry, religious creed, sexual orientation, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital status, denial of family care leave, or genetic information, gender, gender identity, gender expression, or military and veteran status . The Contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to the following: Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause.

B. The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive considerations for employment without regard to race, color, religion, sex, or national origin.

C. The Contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers’ representatives of the Contractor’s commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

D. The Contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.

E. Contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. F. In the event of the Contractor’s noncompliance with the nondiscrimination clauses of the contract or with any of the said rules, regulations, or orders, the contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further government contracts or Federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions as may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law.

G. Contractor will include the portion of the sentence immediately preceding Paragraph (1) and the provisions of Paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or Contractor. The Contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions, including sanctions for noncompliance provided; however,

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that in the event a Contractor becomes involved in, or is threatened with, litigation with a subcontractor or Contractor as a result of such direction by the administering agency the Contractor may request the United States to enter into such litigation to protect the interests of the United States.

H. Contractor, and its subcontractors must comply with the provisions of the Fair Employment and Housing Act and the applicable regulations promulgated thereunder. (Gov. Code, §12990, subds. (a)-(f) et seq.;Cal.

Code Regs., tit. 2, § 7285 et seq.) Such regulations are incorporated into this Agreement by reference and made a part hereof as if set forth in full.

I. Contractor, and its subcontractors must comply with all applicable federal civil rights regulations, including statutory and national policy requirements. (2 CFR § 200.300). This includes, to the greatest extent practicable and to the extent permitted by law, the requirement to respect and protect the freedom of persons and organizations to engage in political and religious speech. (Executive Order 13798).

4. Consultant Cap
Contracts and subcontracts with firms for services that are awarded using the procurement requirements in Subpart D of 2 CFR Part 200 are not affected by this limitation unless the terms of the contract provide the City with responsibility for the selection, direction and control of the individuals who will be providing services under the contract at an hourly or daily rate of compensation. See 2 CFR 1500.10.

The salary rate (excluding overhead) paid to individual consultants retained by Consultant as a subcontractor shall be limited to the maximum daily rate for a Level IV of the Executive Schedule, available at:
https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/, to be adjusted annually. This limit applies to consultation services of designated individuals with specialized skills who are paid at a daily or hourly rate.

This rate does not include transportation and subsistence costs for travel performed (the recipient will pay these in accordance with their normal travel reimbursement practices).

Information on how to calculate the maximum daily rate and the daily pay limitation is available at the Office Of Personnel Management’s Fact Sheet: How to Compute Rates of Pay and Sheet: Expert and Consultant Pay. Specifically, to determine the maximum daily rate, follow these steps:

1. Divide the Level IV salary by 2087 to determine the hourly rate. Rates must be rounded to the nearest cent, counting one-half cent and over as the next higher cent (e.g., round $18.845 to $18.85).

2. Multiply the hourly rate by 8 hours. The product is the maximum daily rate.

5. Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment Consultant is prohibited to procure or obtain; extend or renew a contract to procure or obtain; or enter into a contract (or extend or renew a contract) to procure or obtain equipment, services, or systems that use covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. As described in Public Law 115-232, section 889, covered telecommunications equipment is telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities). Consultant is also prohibited to purchase:

A. For the purpose of public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities).

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

C. Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country.

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Certain prohibited equipment, systems, or services, including equipment, systems, or services produced or provided by entities identified in section 889, are recorded in the System for Award Management exclusion list.

6. Lobbying Restrictions
This Agreement is subject to the anti-lobbying provision as stipulated in the Appendix II to Part 200—Contract Provisions for Non-Federal Entity Contracts Under Federal Awards.

A. By executing this Agreement, the Consultant certifies, to the best of its knowledge and belief, that:

1. No Federal appropriated funds have been or will be paid, by or on behalf of the recipient, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.

2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, or any employee of a Member of Congress in connection with this Federal grant or cooperative agreement, the Consultant shall complete and submit the linked Standard Form -- LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions.

3. The Consultant shall include the language of this certification in any subcontracts exceeding $100,000.

B. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each failure.

7. Whistleblower Protections
This Agreement is subject is to whistleblower protections, including the protections established at 41 U.S.C. 4712 providing that an employee of the recipient or a subrecipient may not be discharged, demoted, or otherwise discriminated against as a reprisal for disclosing to a covered person or body information that the employee reasonably believes is evidence of gross mismanagement of a Federal grant or subaward, a gross waste of Federal funds, an abuse of authority relating to a Federal grant or subaward, a substantial and specific danger to public health or safety, or a violation of law, rule, or regulation related to a Federal grant or subaward. These covered persons or bodies include:

1. A Member of Congress or a representative of a committee of Congress.

2. An Inspector General.

3. The Government Accountability Office.

4. A Federal employee responsible for contract or grant oversight or management at the relevant agency.

5. An authorized official of the Department of Justice or other law enforcement agency.

6. A court or grand jury.

7. A management official or other employee of the contractor, subcontractor, or grantee who has the responsibility to investigate, discover, or address misconduct.

Consistent with 41 U.S.C. 4712(d), the recipient and subrecipients shall inform their employees in writing, in the predominant language of the workforce or organization, of employee whistleblower rights and protections under 41 U.S.C. 4712. Additional information about whistleblower protections, including protections for such employees may be found at the EPA Office of Inspector General’s Whistleblower Protection page.

8. Access to Records

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In accordance with 2 CFR 200.337, EPA and the EPA Office of Inspector General (OIG) have the right to access any documents, papers, or other records, including electronic records, of the Consultant which are pertinent to this Agreement in order to make audits, examinations, excerpts, and transcripts. This right of access also includes timely and reasonable access to the recipient and subrecipient’s personnel for the purpose of interview and discussion related to such documents. This right of access shall continue as long as the records are retained.

9. Funding Agency Indemnification
To the extent permitted by law, the Consultant shall indemnify, defend, and hold harmless the State Water Resources Control Board and any trustee, and their officers, employees, and agents for the Bonds, if any (collectively, "Indemnified Persons"), against any loss or liability arising out of any claim or action brought against any Indemnified Persons from and against any and all losses, claims, damages, liabilities, or expenses, of every conceivable kind, character, and nature whatsoever arising out of, resulting from, or in any way connected with: (1) the Work on the Project; (2) the carrying out of any of the transactions contemplated by the Contract Documents; (3) any violation of any applicable law, rule or regulation, any environmental law (including, without limitation, the Federal Comprehensive Environmental Response, Compensation and Liability Act, the Resource Conservation and Recovery Act, the California Hazardous Substance Account Act, the Federal Water Pollution Control Act, the Clean Air Act, the Toxic Substances Control Act, the Occupational Safety and Health Act, the Safe Drinking Water Act, the California Hazardous Waste Control Law, and California Water Code Section 13304, and any successors to said laws), rule or regulation or the release of any toxic substance on or near the System; or (4) any untrue statement or alleged untrue statement of any material fact or omission or alleged omission to state a material fact necessary to make the statements required to be stated therein, in light of the circumstances under which they were made, not misleading with respect to any information provided by the Consultant for use in any disclosure document utilized in connection with any of the transactions contemplated by the Agreement, except those arising from the gross negligence or willful misconduct of the Indemnified Persons.

The Consultant shall also provide for the defense and indemnification of the Indemnified Parties in any contractual provision extending indemnity to the City, and shall cause the Indemnified Parties to be included within the scope of any provision for the indemnification and defense of the City in any contract or subcontract.

To the fullest extent permitted by law, the Consultant agrees to pay and discharge any judgment or award entered or made against Indemnified Persons with respect to any such claim or action, and any settlement, compromise or other voluntary resolution. The provisions of this section shall survive the term of the Agreement.

10. Prohibition Of Trafficking, Commercial Sex Acts, Forced Labor Consultant and its subConsultants and their employees warrants that it will not engage in severe forms of trafficking in persons, procure a commercial sex act during the term of this Agreement, or use forced labor in the performance of this Agreement.

11. Scientific Integrity Policy
Consultants and its subconsultants must comply with, EPA’s Scientific Integrity Policy, available at https://www.epa.gov/osa/policy-epa-scientificintegrity, when conducting, supervising, and communicating science and when using or applying the results of science. For purposes of this condition scientific activities include, but are not limited to, computer modelling, economic analysis, field sampling, laboratory experimentation, demonstrating new technology, statistical analysis, and writing a review article on a scientific issue.

16.44 16.45
Name City, ST

1.) Consor Walnut Creek, CA 5.0 7.5 9.5 9.5 27.0 19.1 7.0 84.6

2.) EKI Daly City, CA 5.0 7.5 9.5 9.0 27.0 21.0 7.0 86.0

3.) MKN San Jose, CA 5.0 6.3 10.0 5.0 15.0 30.0 5.0 76.3

4.) Shobe Auburn, CA
Monterey, CA 5.0 6.9 9.5 8.0 20.0 28.3 6.5 84.1
Criteria 6: Cost
Proposal (30 pts)
Criteria 7:

References (7.5
pts)
FINAL SCORE (out of 100
pts)
Award Notice
Request For Proposals for
Beltz Well 9 Aquifer Storage and Recovery Design
The City of Santa Cruz has concluded the evaluation of the responses to the Request For Proposals (“RFP”) for Beltz Well 9 Aquifer Storage and Recovery Design. The proposals were reviewed, evaluated and scored according to the criteria listed in the RFP. The Santa Cruz City Council will award the contract on March 24, 2026 to EKI Environment & Water, Inc. based on the following results:

Vendor
Criteria 1:

Adherence to RFP
Requirements (5
pts)
Criteria 2: Firm
Background
Information (7.5
pts)
Criteria 3: Firm
Qualifications,
Expertise, and
Experience (10
pts)
Criteria 4: Team
Qualifications,
Expertise, and
Experience (10
pts)
Criteria 5:

Technical
Approach and
Work Plan (30
pts)

16.46 ORDINANCE NO. 2026-05

AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING SANTA CRUZ MUNICIPAL CODE SECTION 5.82
WHEREAS, in 2019, California Senate Bill ("SB") 946 (Sidewalk Vendors) became law, decriminalizing commercial sidewalk vending and limiting local governments' ability to restrict sidewalk vending;
WHEREAS, on April 12, 2022, the City passed Ordinance No. 2022-03, which created the Santa Cruz Municipal Code Chapter 5.82, “Sidewalk Vending;” to promote public health, safety, and welfare, through a comprehensive City-wide dedicated sidewalk vending permitting and regulation scheme that was intended to both comply with state law and be effective at regulating sidewalk vending in public spaces;
WHEREAS, on February 12, 2023, the City amended the Ordinance via Ordinance No. 2023-04;
WHEREAS, on March 25, 2025, the City amended the Ordinance via Ordinance No. 2025- 06;
WHEREAS, on December 9, 2025, the City amended the Ordinance via Ordinance No. 2025-28;
WHEREAS, the intent of this ordinance is to update the current sidewalk vending permitting and regulation scheme to effectively regulate sidewalk vending in a way that both complies with state and federal law, while at the same time effectively addressing objective public health, safety, and welfare concerns.

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

Section 1. Santa Cruz Municipal Code Section 5.82.020 “DEFINITIONS” is hereby amended as follows:

5.82.020 DEFINITIONS
For the purpose of this chapter, the following words and phrases are defined as follows:
a) “City-demarcated vending and display zones” means those areas specifically set aside for sidewalk vending, operating vending display devices, operating other display devices, and/or conducting First Amendment activities. The city-demarcated vending and display zones on Pacific Avenue are marked on the sidewalk, and an up-to-date, accurate copy of the map of Pacific Avenue city-demarcated vending and display zones shall be posted on the city’s website. The city-demarcated vending and display zones on Pacific Avenue must permit a

17.1 ORDINANCE NO. 2026-05
2 reasonable amount of sidewalk vending on Pacific Avenue, but also must limit vending on Pacific Avenue solely based on objective health, safety, or welfare concerns. b) “Director” means the director of the planning and community development department or their designee.
c) “Farmers’ market” or “certified farmers’ market” means a location operated in accordance with Chapter 10.5 (commencing with Section 47000) of Division 17 of the Food and Agricultural Code and any regulations adopted pursuant to that chapter. d) “Food” means raw, cooked, or processed edible substance, ice, beverage, an ingredient used or intended for use or for sale in whole or in part for human consumption, chewing gum and/or any other items defined as food by the California Retail Food Code. e) “Food sidewalk vendor” means any type of sidewalk vendor offering products defined as food. f) “Mobile vendor” means any person in charge of or driving any motorized mobile vending vehicle requiring a state driver’s license to operate, either as an agent, employee, or otherwise under the direction of the owner.
g) “No vending or limited vending zone” means an area where sidewalk vending is prohibited or limited due to objective public health, safety, or welfare concerns. The city council may establish no vending or limited vending zones by resolution, as set forth in Section 5.82.080(c). h) “Roaming sidewalk vendor” means a sidewalk vendor who moves from place to place and stops only to complete a transaction.
i) “Sidewalk vending” means to sell, offer for sale, expose or display for sale, solicit offers to purchase, or to barter food, goods, or merchandise on any public sidewalk, pedestrian path, park, or other public property, with or without the assistance of a vending display device, or to require someone to pay a fee or to set, negotiate, or establish a fee before providing any such food, goods, or merchandise, even if characterized by the sidewalk vendor as a donation. j) “Sidewalk vending permit” means a permit or card issued by the city to a sidewalk vendor pursuant to Section 5.82.040.
k) “Sidewalk vendor” means a person who sells food or merchandise from a vending display device or from one’s person, upon a public sidewalk, pedestrian path, park, or other public property. This term is inclusive of both roaming and stationary sidewalk vendors. l) “Stationary sidewalk vendor” means a sidewalk vendor who vends from a fixed location. m) “Swap meet” means a location operated in accordance with Article 6 (commencing with Section 21660) of Chapter 9 of Division 8 of the Business and Professions Code and any regulations adopted pursuant to that article.

17.2 ORDINANCE NO. 2026-05
3 n) “Temporary special permit” is any permit issued by the city for the temporary use of, or encroachment on, the sidewalk or other public area, including, but not limited to, an encroachment permit pursuant to Chapter 15.34, a major public special event permit pursuant to Chapter 10.64, or any other type of city-issued temporary event permit, for purposes including, but not limited to, filming, parades, or outdoor concerts. o) “Vending display device” means a pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, nonmotorized conveyance (including trailers), freestanding table, chair, box, stand, or any container, structure, or other object used or capable of being used for holding, selling, advertising, or displaying tangible things, together with any associated seating facilities. “Vending display device” does not include any street furniture such as benches or planters, any other structure permanently installed by the city of Santa Cruz or with the consent of the city of Santa Cruz, or newsracks placed in conformity with the provisions of this code regulating newsracks.
p) “Enforcement official” means any person designated by the city manager to enforce this chapter and includes, but is not limited to: planning and community development department or parks and recreation department staff tasked with code enforcement or compliance, all Santa Cruz police department sworn personnel and community service officers, officials and contractors from the County of Santa Cruz operating as co-local enforcement authority pursuant to Government Code section 51036(1)(d), or its successor statute, any person designated to issue citations under Section 4.02.021, and/or any city-contracted code enforcement officer or specialist.

Section 2. Santa Cruz Municipal Code Section 5.82.030 “SIDEWALK VENDING CONDUCT” is hereby amended as follows:

5.82.030. SIDEWALK VENDING CONDUCT
a) Sidewalk vendors shall comply with this section in order to prevent unreasonable pedestrian and vehicular traffic; improper disposal of trash; provide coastal access; assure that pedestrians (including pedestrians with disabilities) have adequate and accessible thoroughfares; minimize trip and fall hazards; address visibility concerns; prevent glare for drivers; and address other public health, safety, and welfare concerns:
1) Vending display devices shall be at least eighteen inches in height. No person engaged in sidewalk vending may display or sell their wares on the ground, or on a cloth, tarp, or other similar material on the ground.
2) No food sidewalk vendor may be accompanied by or in the custody or possession of a dog or any other animal. Merchandise sidewalk vendors may have one leashed animal. 3) Except for the brief duration of time for a roaming sidewalk vendor to conduct sale, to maintain accessibility standards, sidewalk vendors shall not place or allow any obstruction to be placed on the sidewalk that would reduce the width of the sidewalk to a minimum of forty-eight inches, excluding the curb and excluding any sidewalk areas that are made

17.3 ORDINANCE NO. 2026-05
4 nonpassable due to any obstructions such as posts, parking meters, street trees, planters, or signs that are located on the sidewalk. Sidewalk vendors shall maintain their vending display devices at all times in a manner that provides sufficient access to the sidewalk and avoids impeding the flow of pedestrian traffic. At no time may a sidewalk vendor operate in such a fashion that would violate the Americans with Disabilities Act or state law on accessibility, or cause the sidewalk to narrow in a fashion that violates the accessible path of travel for persons with disabilities, including persons who use wheelchairs or other mobility devices. Sidewalk vendors may not drive a motorized vehicle onto any sidewalk to deliver or unload a vending display device, goods for sale, or other items used for vending.
4) Sidewalk vendors may not use easy-ups, tents, or similar shade structures unless their sidewalk vending permit specifically authorizes such use. Use of these types of structures may be requested in a sidewalk vending permit application. (See Section 5.82.050.) The size of a city-permitted shade structure or vending display device may vary depending on the location, but in no event may a sidewalk vendor’s total operational size (including any shade structure or vending display device) exceed the total operational size allowed in the city’s condition of use issued to the sidewalk vendor.
5) Sidewalk vendors shall not vend to occupants of motorized vehicles in operation. 6) Sidewalk vendors may not engage in vending in such a manner as to cause onlookers, customers, or others to obstruct the accessible path of travel for persons with disabilities, or the free flow or view of pedestrian or vehicular traffic. 7) To maintain the free movement of pedestrians and/or vehicles, sidewalk vendors may not use signs in connection with the sale, display, or offering for sale of items, except for those signs affixed to or painted on a vending display device. Signage used by sidewalk vendors must be small enough to allow visibility for vehicle traffic, especially at corners, and cannot block street addresses. Signage visible from streets cannot include animated, rotating, or flashing lights or lights that have more than three changes of a static message per minute. 8) Vendors may not use generators unless their sidewalk vending permit explicitly allows for generator use. Use of generators may be requested in a sidewalk vending permit application. (See Section 5.82.050.)
9) Sidewalk vendors must provide a trash receptacle for customers and employ good faith efforts to ensure proper disposal of customer trash. Prior to leaving any vending location, the sidewalk vendor shall pick up, remove, and dispose of all trash generated by the vending operations and/or the vendor’s customers within a fifty-foot radius of the vending location. Sidewalk vendors are responsible for disposing of the trash associated with their business and may not use city receptacles for this purpose. 10) Sidewalk vendors must properly dispose of fats, grease, and oil as required in Chapter

16.19. All other liquids, including but not limited to any beverages or any greywater from

17.4 ORDINANCE NO. 2026-05
5 handwashing or dishwashing, must be transported elsewhere for proper disposal and shall not be disposed of on the sidewalk, storm gutter, or unauthorized private property. 11) At all times while vending, food sidewalk vendors shall possess and display in plain view on the vending display device a valid permit from the county of Santa Cruz environmental health division.
12) At all times while vending, sidewalk vendors shall possess and display in plain view on their person or on their vending display device a valid sidewalk vending permit issued to the person vending pursuant to Section 5.82.040. A properly permitted sidewalk vendor must remain on site for all vending activities.
13) Sidewalk vendors shall be responsible for their own compliance with all applicable federal, state, and local laws, including without limitation state food preparation, handling, and labeling requirements; fire codes and regulations; noise standards; alcoholic beverages, tobacco products, cannabis, electronic cigarette, smoking devices and controlled substances regulations; sanitation and health standards set forth in Titles 6 and 16 including, but not limited to, the product regulations set forth in Chapter 6.48 (Environmentally Acceptable Food Packaging), Chapter 6.49 (City of Santa Cruz Bag Reduction Ordinance), and Chapter 16.19 (Storm Water and Urban Runoff Pollution Control); and the Americans with Disabilities Act of 1990 and other disability access standards (both state and federal).
14) Vending display devices shall not be chained, fastened, or affixed at any time to any building or structure, including, but not limited to, lampposts, parking meters, traffic signals, fire hydrants, benches, bus shelters, trash cans, street signs, trees, or other objects within the public right-of-way. No vending display device shall become a permanent fixture on the vending site or be considered an improvement to real property. 15) Vending display devices shall not be left or stored unattended on public property or within the public right-of-way.
16) Sidewalk vendors shall not vend or distribute: (A) live animals, wildlife, fish, fowl, or insects; (B) items prohibited from being sold or distributed by Chapter 6.48 (Environmentally Accepted Food Packaging) or Chapter 6.49 (City of Santa Cruz Bag Reduction Ordinance); or (C) items that are otherwise illegal to sell or distribute under other laws (such as unlawful narcotics, weapons, and counterfeit merchandise). Note that the unlawful possession or distribution of items is punishable according to the terms of applicable federal, state, or local law making such possession or distribution illegal. See Section 5.82.140(c).
17) Sidewalk vendors shall not use sidewalks or public property as storage for extra inventory, merchandise, or personal belongings, except for: (A) vending display devices, items placed on or in vending display devices, and associated seating; and (B) personal belongings wholly contained underneath or inside of a vending display device.

17.5 ORDINANCE NO. 2026-05
6 18) No person shall use any street furniture, including any bench, planter, utility cabinet, or other street furniture or structure permanently installed on public property, for the display, sale, or distribution of food, goods, or merchandise.
19) Sidewalk vendors shall not unreasonably interfere with access or use of city infrastructure, including city benches, bike racks, wheelchair access ramps, stairs, parking meters, trash receptacles, or recycling receptacles.
20) Sidewalk vendors shall not block access to or create unreasonable congestion at: (A) a corner of any street intersection; (B) any fire hydrant, fire call box, emergency exit, or other emergency facility; (C) any curb which is designated as white, yellow, green, blue, or red zone, or a bus zone; (D) any building entrance or stairway access point; (E) any driveway or driveway apron; (F) upon or within any roadway, median strip, or dividing section; or (G) at any parking pay station. Vending or operating in a way that violates the accessible path of travel for persons with disabilities is per se unreasonable. 21) Trailers are not permitted on the sidewalk pursuant to California Vehicle Code Section 22500(f). Violation of this rule is punishable in accordance with the terms of the California Vehicle Code.
22) Sidewalk vendors shall not operate or vend in a way that violates the terms or conditions of their sidewalk vending permit or parks vending permit (if applicable). 23) Sidewalk vendors and all associated materials shall not encroach onto private property for storage, display, waste disposal, employee use, or other use. b) The city manager or their designee may promulgate regulations governing sidewalk vending to effectuate the provisions of this chapter and to address objective health, safety and welfare concerns. A violation of such regulations shall constitute a separate violation of this chapter.

Section 3. Santa Cruz Municipal Code Section 5.82.050 “SIDEWALK VENDING PERMIT APPLICATION” is hereby amended as follows:

5.82.050. SIDEWALK VENDING PERMIT APPLICATION
a) No person may engage in sidewalk vending in the city without first obtaining: (1) a sidewalk vending permit issued pursuant to this section; (2) a business license issued pursuant to Chapter

5.04; and (3) if applicable, a parks vending permit, issued pursuant to Section 5.82.090. b) To apply for a sidewalk vending permit, the sidewalk vendor applicant must file an application with the planning and community development department, accompanied by an application fee in an amount established by resolution of the city council. The application shall be in a form prescribed by the director and shall contain the following:

17.6 ORDINANCE NO. 2026-05
7 1) The legal name and current address, telephone number, and email address of the applicant, who must be a natural person (i.e., an individual human being and not a corporation, firm, partnership, etc.);
2) If sidewalk vending as a representative of a firm, association, or partnership, the name and address thereof and the names and residences of partners or association members. If sidewalk vending as a representative of a corporation, the name and address thereof and the names and residences of officers and a local manager; 3) A description of the sidewalk vendor’s total operational size; 4) A description of the food or merchandise offered for sale; 5) A description of, along with the dimensions of, the vending display device that will be used;
6) The hours per day and the days per week during which the applicant sidewalk vendor proposes to operate;
7) A description of the area(s) where the applicant sidewalk vendor wishes to operate; 8) Whether the applicant intends to operate as a stationary sidewalk vendor or a roaming sidewalk vendor;
9) A sidewalk vendor applicant must provide a copy of a valid business license issued pursuant to Chapter 5.04 prior to issuance of a sidewalk vending permit. Each separate concurrently operating vending location requires its own business license and sidewalk vending permit;
10) A copy of a valid California seller’s permit pursuant to Revenue and Taxation Code Section 6067;
11) A copy of the applicant’s California driver’s license, California identification card, U.S.

Passport, individual taxpayer identification number, federal identification number, or other identification number or card;
12) Certification by the applicant, under penalty of perjury, that the information contained in the application is true to their knowledge and belief;
13) If a food sidewalk vendor, proof of all required approval(s) from the county of Santa Cruz environmental health division and copies of any applicable discharge permits; 14) An acknowledgement of having read and an agreement to abide by this chapter (Sidewalk Vending), Chapters 6.48 (Environmentally Acceptable Food Packaging), 6.49 (City of Santa Cruz Bag Reduction Ordinance), and 16.19 (Storm Water and Urban Runoff Pollution Control); and

17.7 ORDINANCE NO. 2026-05
8 15) The following release, indemnification, and acknowledgement requirements:
(A)An agreement by the applicant to waive and release the city and its officers, agents, employees, contractors, and volunteers from and against any and all claims, costs, liabilities, expenses, or judgments (including attorneys’ fees and court costs) related to or arising out of the applicant’s sidewalk vending activities. (B) An agreement by the applicant to, to the greatest extent allowed by law, defend, indemnify, and hold harmless the city, its officers, agents, employees, contractors, and volunteers from and against any and all claims related to or arising out of the applicant’s sidewalk vending activities.
(C) An acknowledgement and agreement that the applicant’s use of the sidewalk or other city facilities is at the applicant’s own risk, and it is not the city’s responsibility to ensure that the vending location is safe or conducive to the vending activities.

Section 4. Santa Cruz Municipal Code Section 5.82.050 “SIDEWALK VENDING PERMIT APPROVAL, CONDITIONS, DENIAL, OR REVOCATION” is hereby amended as follows:

5.82.050. SIDEWALK VENDING PERMIT APPROVAL, CONDITIONS, DENIAL, OR

REVOCATION
a) The director or their designee shall approve the issuance of the sidewalk vending permit unless they determine that:
1) Information contained in the application, or supplemental information requested from the applicant, is false in any material detail; or
2) The proposed operations contained in the application are contrary to the provisions of this chapter, or are contrary to any regulations promulgated pursuant to Section 5.82.030(b); or 3) The applicant has failed to provide a complete application, after having been notified of the requirement to produce additional information or documents; or 4) The applicant has failed to demonstrate an ability to conform to the operating standards set forth in this chapter or any standards set forth in regulations promulgated pursuant to Section 5.82.030(b); or
5) The applicant has failed to pay or otherwise resolve any previous administrative citations associated with a previous violation of this chapter; or 6) The location of the proposed vending operations has already been approved for another use (including potentially other vending operations) at the time the applicant proposes to vend at the subject location; or

17.8 ORDINANCE NO. 2026-05
9 7) The proposed vending operations are illegal, and/or the city’s approval of a sidewalk vending permit would be contrary to legal requirements applicable to the city. b) If the permit is denied, written notice of such denial and the reasons therefor shall be provided to the applicant.
c) The director or their designee may add reasonable sidewalk vending permit conditions, regulating the time, place, and manner of sidewalk vending. Such conditions must be (1) consistent with this chapter and any regulations promulgated pursuant to Section 5.82.030(b), and (2) directly related to objective public health, safety, or welfare concerns, or directly related to legal requirements applicable to the city. A violation of the sidewalk vending permit conditions is considered a violation of this chapter.
d) Use of a shade structure may be requested in a sidewalk vending permit application and parks vending permit application, and such request will be granted if: (1) there is adequate space for the shade structure at the proposed vending location (including any space needed for pedestrians (including disabled pedestrians), vehicles, and bicyclists); (2) use of the shade structure at the proposed location would not adversely impact or put at risk public health, safety, or welfare; and (3) use of the shade structure at the proposed location would not be contrary to legal requirements applicable to the city.
e) Use of a generator may be requested in a sidewalk vending permit application, and such request will be granted if the proposed generator use: (1) will not create unreasonable noise, trip and fall hazards, or other adverse risks or impacts to public health, safety, or welfare; (2) is not otherwise illegal or contrary to legal requirements applicable to the city; and (3) is approved by all appropriate regulating entities, such as the Monterey Bay Air Resources District (MBARD), if those appropriate regulating entities require generator use approval. f) The director or their designee may revoke any sidewalk vending permit issued to a sidewalk vendor who receives a fourth or subsequent violation of this chapter within a twenty-fourmonth period. A sidewalk vendor whose permit(s) is/are revoked may apply for a new sidewalk vending permit(s) once twenty four months have lapsed since one or more of the four violations were issued.
g) Any person whose application for a sidewalk vending permit is denied, revoked, or conditioned in a way that the applicant believes is not in accordance with applicable legal requirements may appeal such decision to the city manager by filing a written notice of appeal with the city manager or their designee within ten calendar days after receipt of the notice of denial, conditions, or revocation. The appeal hearing shall be conducted pursuant to the administrative enforcement hearing procedure contained in Title 4. If the appeal is successful, the hearing officer will order the city to return the fee paid for appeal.

Section 5. This ordinance shall take effect and be in full force thirty (30) days after final adoption.

17.9 ORDINANCE NO. 2026-05
10 PASSED FOR PUBLICATION this 10th day of March, 2026, by the following vote:

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

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
PASSED FOR FINAL ADOPTION this 24th 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. 2026-05 and that
it has been published or posted in
accordance with the Charter of the
City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator

17.10 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:

March 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 March, 2026, Santa Cruz, California
____________________________
Julia Wood
Deputy City Clerk Administrator

17.11 DECLARATION OF POSTING

STATE OF CALIFORNIA )
) SS.

COUNTY OF SANTA CRUZ )
On the 16th day of March, 2026, I posted conspicuously in three public places within the City of Santa Cruz, Ordinance No. 2026-05, 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—10.

I declare under penalty of perjury that the foregoing is true and correct. Executed this 16th day of March, 2026, in Santa Cruz, California.
_______________________________
Julia Wood
Deputy City Clerk Administrator

17.12 City Council

AGENDA REPORT
DATE: 03/04/2026
AGENDA OF: 03/24/2026
DEPARTMENT: Planning and Community Development
SUBJECT: 2nd Reading and Final Adoption of Ordinance Nos. 2026-06 and 2026-07 Amending the Zoning Map and to Municipal Code Chapter 24.10 – Land Use Districts, Chapter 24.12, Part 17 – Emergency Shelters, and Chapter

24.22 – Definitions to Create a New Overlay District and Implement Uses and Development Standards for Temporary and Affordable Housing (CD) LOCATION: Citywide
RECOMMENDATION: Motion to:
1) Adopt Ordinance 2026-06 amending Chapter 24.10, Chapter 24.12, Part 17, and Chapter

24.22 of the Santa Cruz Municipal Code (SCMC) related to a new overlay district and standards for temporary and affordable housing;
2) Adopt Ordinance 2026-07 amending the Local Coastal Program (LCP) Implementation Plan (IP), amending Section 24.10.1510 of the Municipal Code related to use permit requirements within the General Industrial zoning district;
3) Adopt a resolution directing staff to submit Ordinance No. 2026-07 to the California Coastal Commission; and
4) Adopt a resolution updating the Industrial Land Use Preservation Policy.

BACKGROUND: Ordinance Nos. 2026-06 and 2026-07 were introduced for publication at the March 10, 2026 Council meeting. At that meeting, City Council approved both ordinances for publication with a motion that included the following amendments to ordinance 2026-06 regarding the Coral Street Overlay District and standards for temporary housing uses:
 Live-work uses and secure behavioral health facilities are added to the list of allowable uses;
 The Use Determination section includes additional language to more specifically define uses of the “same general character” as other allowed uses;

18.1  A requirement for lease or sale agreements of 100 percent affordable housing units to acknowledge potential nuisances from nearby industrial uses;  A reduction in the maximum allowable height for buildings including temporary housing or 100 percent affordable housing to five stories and 60 feet; and  Addition of parking standard for temporary housing uses to one space per staff member at the shift with the greatest number of staff members.

DISCUSSION: Staff requests that Council adopt Ordinance Nos. 2026-06 and 2026-07. Upon adoption of the Resolution to Submit Ordinance 2026-07 to Coastal Commission, staff will submit Ordinance No. 2026-07 to the California Coastal Commission. Staff also requests adoption of the Resolution to Update City Council Industrial Land Use Preservation Policy.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed amendments are exempt from environmental review under Public Resources Code Section 21080.085 as a statutory exemption for a rezoning to implement the housing element and under California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3) as a project that can be seen with certainty to have no possibility for causing a significant effect on the environment.

HEALTH IN ALL POLICIES (HiAP): In 2019, the City adopted a Health in All Policies strategy to eliminate inequities in health and well-being and attain equity for all residents. The proposed amendments further the City’s Health in All Policies strategy, as they facilitate creation of affordable and temporary housing types, promoting more equitable access to housing and additional social support within the City to those who need it the most. The proposed amendments support development of temporary housing in an area of Santa Cruz with existing services for those experiencing or at risk of homelessness, 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. 2026-06 - AMENDMENTS TO THE ZONING MAP AND CREATE NEW OVERLAY DISTRICT (CD).DOCX

2. 2026-06 - EXHIBIT A - AMENDMENTS TO THE ZONING MAP AND CREATE NEW OVERLAY DISTRICT (CD).PDF

18.2 3. ORDINANCE 2026-06 (NON-LCP) TRACK CHANGES FROM 3-10-26 CITY COUNCIL MOTION.DOCX

4. 2026-07 - AMENDING LCP IP - GENERAL INDUSTRIAL ZONING DISTRICT (CD).DOCX

5. RESOLUTION TO SUBMIT ORDINANCE 2026-07 TO COASTAL COMMISSION.DOCX

6. RESOLUTION TO UPDATE CITY COUNCIL INDUSTRIAL LAND USE PRESERVATION POLICY.DOCX

7. PROOF OF PUBLICATION AND AFFIDAVIT OF POSTING 2026-06.PDF

8. PROOF OF PUBLICATION AND AFFIDAVIT OF POSTING 2026-07.PDF

9. UPLOADED POST-PACKET PRODUCTION - PUBLIC CORRESPONDENCE - # 18 - ZONING MAP OVERLAY ORDINANCE.PDF

18.3 ORDINANCE NO. 2026-06

AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING SANTA CRUZ MUNICIPAL CODE CHAPTER 24.10 – LAND USE DISTRICTS, AMENDING CHAPTER

24.12, PART 17 – EMERGENCY SHELTERS, AMENDING CHAPTER 24.22 –

DEFINITIONS, AND AMENDING THE ZONING MAP, RELATED TO ADDING A NEW

CORAL STREET OVERLAY DISTRICT, UPDATING USE AND DEVELOPMENT

STANDARDS FOR TEMPORARY HOUSING USES, AND ADDING RELATED DEFINITIONS. (CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA): EXEMPT PURSUANT TO PUBLIC RESOURCES CODE SECTION 21080.085 AS A REZONING

THAT IMPLEMENTS THE SCHEDULE OF ACTIONS WITHIN AN APPROVED HOUSING ELEMENT AND PURSUANT TO CEQA GUIDELINES SECTION 15061(b)(3) AS A

PROJECT THAT WITH CERTAINTY HAS NO POTENTIAL TO IMPACT THE ENVIRONMENT.)
WHEREAS, state law requires local jurisdictions to zone for temporary housing uses as principally permitted uses within a zone district that also allows residential use and with the developmental capacity to shelter the number of unsheltered individuals determined by the annual Point In Time count conducted prior to the current Housing Element cycle, as modified by specified criteria; and
WHEREAS, state law also requires local jurisdictions to limit review of proposed temporary housing facilities to specified objective use and development standards; WHEREAS, the City of Santa Cruz 2023-2031 Housing Element (Housing Element) was adopted in December 2023 by the Santa Cruz City Council and subsequently accepted by the state Department of Housing and Community Development; and
WHEREAS, Objective 3.3f of the Housing Element requires the City to adopt an ordinance to comply with state law requirements related to temporary housing zoning and related use and development standards; and
WHEREAS, the City Council accepted the final Coral Street Visioning Report at its May 9, 2023 public hearing; and
WHEREAS, the Coral Street Visioning Report calls for the City to make zoning changes to allow the uses and developments described in that Report; and WHEREAS, Objective 1.2e of the Housing Element requires the City to adopt a Coral Street Overlay that builds off existing services and resources to provide homeless services and related residential use standards for that specific, immediate area; and WHEREAS, at its December 18, 2025 meeting, the City Planning Commission reviewed the proposed amendments to Title 24 of the Santa Cruz Municipal Code and found that the public necessity, and the general community welfare, and good zoning practice shall be served and

18.4 ORDINANCE NO. 2026-06
2 furthered; and that the proposed amendments are in general conformance with the principles, policies, and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan as proposed to be amended; and WHEREAS, at its December 18, 2025 meeting, the City Planning Commission passed a motion that recommended the City Council approve the determination under the California Environmental Quality Act and approve the proposed amendments to Title 24 of the Santa Cruz Municipal Code; and
WHEREAS, due to a noticing error, this item was again noticed and brought before the City Planning Commission at its February 10, 2026 meting; and WHEREAS, at its February 10, 2026 meeting, the City Planning Commission reviewed the proposed amendments to Title 24 of the Santa Cruz Municipal Code and found that the public necessity, and the general community welfare, and good zoning practice shall be served and furthered; and that the proposed amendments are in general conformance with the principles, policies, and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan as proposed to be amended; and WHEREAS, at its February 10, 2026 meeting, the City Planning Commission passed a motion that recommended the City Council approve the determination under the California Environmental Quality Act and approve the proposed amendments to Title 24 of the Santa Cruz Municipal Code with an additional amendment to limit the maximum building height within the Coral Street Overlay District to five stories and 60 feet (4-0-3, Commissioners Kelley, Polhamus, and Thompson absent); and
WHEREAS, at its March 10, 2026 meeting, the City Council passed a motion that approved the CEQA determination and the amendments with the following additional amendments:
 Under 24.10.4420 Permitted Uses, add live-work uses to the list of allowable uses;  Under 24.10.4420(3), change “Residential behavioral health program facilities, including substance use disorder treatment facilities;” to “Residential behavioral health program facilities, including substance use disorder treatment facilities and secure behavioral health facilities;”
 Under 24.10.4430 Use Determination, change “Any other use or service establishment determined by the zoning administrator to be of the same general character as the foregoing uses, and which will not impair the present or potential use of adjacent properties, may be permitted.” To “Any other use or service establishment determined by the zoning administrator to be of the same general character, as defined by similar types of operations, service population, intensity, and nature of use, as the foregoing uses, and which will not impair the present or potential use of adjacent properties, may be permitted.”;

18.5 ORDINANCE NO. 2026-06
3  Under 24.10.4440 District Regulations, add subsection 4: “For 100% affordable housing projects, any lease or sales agreements shall state that the tenants/owners recognize that a variety of industrial uses exist in the area, and industrial uses often involve noise, smell, dust, or other impacts on the surrounding area.”;  Under 24.10.4440(2), change “For buildings in which the uses include at least one of the uses described in subsections 24.10.4420.1-5, the maximum height of buildings shall be eight stories and 85 feet.” To “For buildings in which the uses include at least one of the uses described in subsections 24.10.4420.1-5, the maximum height of buildings shall be five stories and 60 feet.”; and  Under 24.12.1620 Development Standards, add subsection 5: “Parking. The emergency shelter shall provide on-site parking at a rate of one space per staff member at the shift with the greatest number of staff members.” NOW THEREFORE BE IT ORDAINED by the City of Santa Cruz as follows:

Section 1. Section 24.10.010 of Chapter 24.10 of the Santa Cruz Municipal Code regarding General is hereby amended to read as follows:

24.10.010 GENERAL.

The districts hereby established, and into which the city of Santa Cruz is or may be divided, are designated as follows:

R-S Residential Suburban District
R-1 Single-Family Residence District
R-L Multiple Residence – Low-Density District
R-M Multiple Residence – Medium-Density District
R-H Multiple Residence – High-Density District
R-T Tourist Residential District
R-T(A) Subdistrict A – Medium-Density District
R-T(B) Subdistrict B – Motel Residential

R-T(B)/
PER
Motel Residential
Performance District
R-T(C) Subdistrict C – Beach Commercial

R-T(C)/
PER
Subdistrict C – Beach Commercial/
Performance Overlay District
R-T(D) Subdistrict D – Beach Residential
R-T(E) Subdistrict E – Beach Medium/High Residential

18.6 ORDINANCE NO. 2026-06
4 C-C Community Commercial District
C-T Thoroughfare Commercial District
C-N Neighborhood Commercial District
C-B Beach Commercial District
P-A Professional and Administrative Office District
SC-H Small Craft Harbor District
C-D/R Coastal Dependent/Related District
I-G General Industrial District
I-G/PER General Industrial District/Performance Overlay Zone I-G/PER 2 General Industrial District/Performance District PK Parks District
PF Public Facilities District
E-A Exclusive Agricultural District
OF-R Ocean Front (Recreational) District
F-P Floodplain District
H-O Historic Overlay District
CBD Central Business District
CBD(E) CBD Subdistrict E – Lower Pacific Avenue
SP-O Shoreline Protection Overlay District
CZ-O Coastal Zone Overlay District
MX-O Mixed Use Overlay District
FP-O Floodplain Overlay District
CON Neighborhood Conservation Overlay District
WCD West Cliff Drive Overlay District
MS-O Mission Street Urban Design Plan Overlay District
CS-O Coral Street Overlay District
Section 2. Part 44 of Chapter 24.10 of the Santa Cruz Municipal Code regarding Coral Street Overlay District is hereby added to read as follows:

Part 44: CORAL STREET OVERLAY DISTRICT

18.7 ORDINANCE NO. 2026-06
5 24.10.4400 PURPOSE.

The purpose of the Coral Street Overlay District is to allow for the uses and types of development described in the Coral Street Visioning Report and to provide for the capacity of temporary housing required under state law. The goal of this overlay is to create zoning conditions that will support the creation of new and expanded housing and services programs for people experiencing or atrisk of homelessness.

24.10.4410 APPLICABILITY.

The Coral Street Overlay District shall apply to the area designated on the official zoning map of the City and shall be combined with the underlying zone for such area. This district generally includes most of the properties with frontage on the north and south sides of Coral Street between River Street to the east and the rail corridor to the west.

24.10.4420 PERMITTED USES.

The principal permitted and use permit required uses of the underlying zone shall continue to apply. In addition, notwithstanding section 24.10.040, the following uses shall be principally permitted:

1. Temporary housing, including, but not limited to, emergency shelters, navigation centers, bridge housing, and respite or recuperative care, subject to the standards in Chapter 24.12, Part 17;

2. Multiple dwellings or condominiums where all dwellings, except for up to three manager’s units, are offered at an affordable rent or sale price to moderate or lower income households as recorded in a developer affordable housing agreement with the City;

3. Residential behavioral health program facilities, including substance use disorder treatment facilities and secure behavioral health facilities;

4. Supportive housing;

5. Wraparound services relating to temporary housing, including, but not limited to, mail services, job training, and behavioral health programs; and

6. Principal permitted commercial uses in the Community Commercial District as described in Section 24.10.710.

7. Live-work units consistent with Section 24.12.185(13).

24.10.4430 USE DETERMINATION.

Any other use or service establishment determined by the zoning administrator to be of the same general character, as defined by similar types of operations, service population, intensity, and

18.8 ORDINANCE NO. 2026-06
6 nature of use, as the foregoing uses, and which will not impair the present or potential use of adjacent properties, may be permitted.

24.10.4440 DISTRICT REGULATIONS.

1. Development standards shall be those of the underlying zone, except as modified by this section, notwithstanding section 24.10.040.

2. For buildings in which the uses include at least one of the uses described in subsections

24.10.4420.1-5, the maximum height of buildings shall be five stories and 60 feet.

3. The development site shall not include any natural and protected lands described under Public Resources Code Section 21067.5, as may be amended.

4. For 100% affordable housing projects, any lease or sales agreements shall state that the tenants/owners recognize that a variety of industrial uses exist in the area, and industrial uses often involve noise, smell, dust, or other impacts on the surrounding area.

Section 3. Part 17 of Chapter 24.12 of the Santa Cruz Municipal Code regarding Emergency Shelters is hereby renamed Temporary Housing and amended to read as follows:

Part 17: TEMPORARY HOUSING

24.12.1600 PURPOSE.

The purpose of these regulations is to provide a definition and development standards for temporary housing. The regulations contained herein are designed to make such uses compatible with surrounding uses.

24.12.1610 DEFINITION.

Temporary housing is a short-term housing intervention for persons experiencing homelessness that typically includes supportive services and acts as an interim bridge to permanent housing.

Temporary housing includes, but is not limited to, an emergency shelter, navigation center, bridge housing, and respite or recuperative care.

24.12.1620 DEVELOPMENT STANDARDS.

Temporary housing shall comply with the underlying development standards of the zoning district in which it is located or the development standards of an overlay zone, if applicable. In addition, the following standards shall be met:

1. Lighting. External lighting shall be provided for security purposes. Lighting shall be consistent with the objective design standards for multifamily development lighting standards described in Section 24.12.185.16.

18.9 ORDINANCE NO. 2026-06
7 2. Security. The temporary housing facility shall have on-site security and/or security cameras during all hours when the facility is in operation. Security cameras, if used, must, at minimum, face all entrances and exits of the building.

3. On-site Management. The provider shall have a written management plan including, as applicable, provisions for staff training, good neighbor policies, security, transportation, client supervision, food services, screening of residents to ensure compatibility with services provided at the facility, and for training, counseling, and treatment programs for residents.

4. Bed Space. The number of beds or persons permitted to be served by the facility will be limited by the standards set forth in this section and other applicable sections of the zoning and building codes.

5. Parking. The emergency shelter shall provide on-site parking at a rate of one space per staff member at the shift with the greatest number of staff members.

Section 4. Section 24.22.153.5 of Chapter 24.22 of the Santa Cruz Municipal Code regarding Bridge Housing is hereby added to read as follows:

24.22.153.5 BRIDGE HOUSING.

Also known as “Emergency bridge housing community.” Any new or existing facilities, including, but not limited to, housing in temporary structures, including, but not limited to, emergency sleeping cabins consistent with the requirements of subdivision (h) of Section 8698.3 of the California Government Code that are reserved for homeless persons and families, together with community support facilities, including, but not limited to, showers and bathrooms adequate to serve the anticipated number of residents all of which may be located on property leased or owned by a political subdivision. An emergency bridge housing community shall include supportive and self-sufficiency development services, have the ultimate goal of moving homeless persons to permanent housing as quickly as reasonably possible, and limit rents and service fees to an abilityto-pay formula reasonably consistent with the United States Department of Housing and Urban Development’s requirements for subsidized housing for low-income persons.

Section 5. Section 24.22.559.1 of Chapter 24.22 of the Santa Cruz Municipal Code regarding Navigation Center is hereby added to read as follows:

24.22.559.1 NAVIGATION CENTER.

A Housing First, low-barrier, service-enriched shelter focused on moving homeless individuals and families into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing.

Section 6. The Zoning Map is hereby amended to add the Coral Street Overlay District as shown in the attached Exhibit “A”.

18.10 ORDINANCE NO. 2026-06
8 Section 7. The City Council finds and determines that the adoption of this ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.085 as a rezoning that implements the schedule of actions within an approved housing element and pursuant to CEQA Guidelines Section 15061(b)(3) as a project that with certainty will not have a significant environmental impact.

Section 8. 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 9. This ordinance shall take effect and be in full force thirty (30) days after final adoption.

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

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

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

18.11 ORDINANCE NO. 2026-06
9 PASSED FOR FINAL ADOPTION this 24th 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. 2026-06 and that
it has been published or posted in
accordance with the Charter of the
City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator

18.12 Fern S t
Union Pacific Rail road
Coral S t
Limek
iln S t
Fern S t
Fern S t
1 Coral
S t
Harvey West Blvd
S tate Highway 1
S tate Highway 1
Coral S t
Fern S t
Riv
er S t
River S t
River S t
Co
River S t
t tonwood S t
Ri
ver S t
River S t
State Highway 1
S tate Highway 1
CC
IG
CC
CC
CT
FP
IG/PER
Coral Street Overlay District
¯
0 0.03 0.05 0.1 Miles
ORDINANCE NO. 2026-06 | EXHIBIT A

18.13 Track changes reflect edits made pursuant to 3-10-26 City Council motion ORDINANCE NO. 2026-06

AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING SANTA CRUZ MUNICIPAL CODE CHAPTER 24.10 – LAND USE DISTRICTS, AMENDING CHAPTER

24.12, PART 17 – EMERGENCY SHELTERS, AMENDING CHAPTER 24.22 –

DEFINITIONS, AND AMENDING THE ZONING MAP, RELATED TO ADDING A NEW

CORAL STREET OVERLAY DISTRICT, UPDATING USE AND DEVELOPMENT

STANARDS FOR TEMPORARY HOUSING USES, AND ADDING RELATED DEFINITIONS. (CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA): EXEMPT PURSUANT TO PUBLIC RESOURCES CODE SECTION 21080.085 AS A REZONING

THAT IMPLEMENTS THE SCHEDULE OF ACTIONS WITHIN AN APPROVED HOUSING ELEMENT AND PURSUANT TO CEQA GUIELINES SECTION 15061(b)(3) AS A

PROJECT THAT WITH CERTAINTY HAS NO POTENTIAL TO IMPACT THE ENVIRONMENT.)
WHEREAS, state law requires local jurisdictions to zone for temporary housing uses as principally permitted uses within a zone district that also allows residential use and with the developmental capacity to shelter the number of unsheltered individuals determined by the annual Point In Time count conducted prior to the current Housing Element cycle, as modified by specified criteria; and
WHEREAS, state law also requires local jurisdictions to limit review of proposed temporary housing facilities to specified objective use and development standards; WHEREAS, the City of Santa Cruz 2023-2031 Housing Element (Housing Element) was adopted in December 2023 by the Santa Cruz City Council and subsequently accepted by the state Department of Housing and Community Development; and
WHEREAS, Objective 3.3f of the Housing Element requires the City to adopt an ordinance to comply with state law requirements related to temporary housing zoning and related use and development standards; and
WHEREAS, the City Council accepted the final Coral Street Visioning Report at it’s May 9, 2023 public hearing; and
WHEREAS, the Coral Street Visioning Report calls for the City to make zoning changes to allow the uses and developments described in that Report; and WHEREAS, Objective 1.2e of the Housing Element requires the City to adopt a Coral Street Overlay that builds off existing services and resources to provide homeless services and related residential use standards for that specific, immediate area; and WHEREAS, at its December 18, 2025 meeting, the City Planning Commission reviewed the proposed amendments to Title 24 of the Santa Cruz Municipal Code and found that the public necessity, and the general community welfare, and good zoning practice shall be served and

18.14 Track changes reflect edits made pursuant to 3-10-26 City Council motion furthered; and that the proposed amendments are in general conformance with the principles, policies, and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan as proposed to be amended; and WHEREAS, at its December 18, 2025 meeting, the City Planning Commission passed a motion that recommended the City Council approve the determination under the California Environmental Quality Act and approve the proposed amendments to Title 24 of the Santa Cruz Municipal Code; and
WHEREAS, due to a noticing error, this item was again noticed and brought before the City Planning Commission at its February 10, 2026 meting; and WHEREAS, at its February 10, 2026 meeting, the City Planning Commission reviewed the proposed amendments to Title 24 of the Santa Cruz Municipal Code and found that the public necessity, and the general community welfare, and good zoning practice shall be served and furthered; and that the proposed amendments are in general conformance with the principles, policies, and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan as proposed to be amended; and WHEREAS, at its February 10, 2026 meeting, the City Planning Commission passed a motion that recommended the City Council approve the determination under the California Environmental Quality Act and approve the proposed amendments to Title 24 of the Santa Cruz Municipal Code with an additional amendment to limit the maximum building height within the Coral Street Overlay District to five stories and 60 feet (4-0-3, Commissioners Kelley, Polhamus, and Thompson absent); and
WHEREAS, at its March 10, 2026 meeting, the City Council passed a motion that approved the CEQA determination and approved the amendments with the following additional amendments:
 Under 24.10.4420 Permitted Uses, add live-work uses to the list of allowable uses;  Under 24.10.4420(3), change “Residential behavioral health program facilities, including substance use disorder treatment facilities;” to “Residential behavioral health program facilities, including substance use disorder treatment facilities and secure behavioral health facilities;”;
 Under 24.10.4430 Use Determination, change “Any other use or service establishment determined by the zoning administrator to be of the same general character as the foregoing uses, and which will not impair the present or potential use of adjacent properties, may be permitted.” To “Any other use or service establishment determined by the zoning administrator to be of the same general character, as defined by similar types of operations, service population, intensity, and nature of use, as the foregoing uses, and which will not impair the present or potential use of adjacent properties, may be permitted.”;  Under 24.10.4440 District Regulations, add subsection 4: “For 100% affordable housing projects, any lease or sales agreements shall state that the tenants/owners

18.15 Track changes reflect edits made pursuant to 3-10-26 City Council motion recognize that a variety of industrial uses exist in the area, and industrial uses often involve noise, smell, dust, or other impacts on the surrounding area.”;  Under 24.10.4440(2), change “For buildings in which the uses include at least one of the uses described in subsections 24.10.4420.1-5, the maximum height of buildings shall be eight stories and 85 feet.” To “For buildings in which the uses include at least one of the uses described in subsections 24.10.4420.1-5, the maximum height of buildings shall be five stories and 60 feet.”; and  Under 24.12.1620 Development Standards, add subsection 5: “Parking. The emergency shelter shall provide on-site parking at a rate of one space per staff member at the shift with the greatest number of staff members.” NOW THEREFORE BE IT ORDAINED by the City of Santa Cruz as follows:

Section 1. Section 24.10.010 of Chapter 24.10 of the Santa Cruz Municipal Code regarding General is hereby amended to read as follows:

24.10.010 GENERAL.

The districts hereby established, and into which the city of Santa Cruz is or may be divided, are designated as follows:

R-S Residential Suburban District
R-1 Single-Family Residence District
R-L Multiple Residence – Low-Density
District
R-M Multiple Residence – MediumDensity District
R-H Multiple Residence – High-Density
District
R-T Tourist Residential District
R-T(A) Subdistrict A – Medium-Density
District
R-T(B) Subdistrict B – Motel Residential

R-T(B)/
PER
Motel Residential Performance
District
R-T(C) Subdistrict C – Beach Commercial

R-T(C)/
PER
Subdistrict C – Beach
Commercial/Performance Overlay
District
R-T(D) Subdistrict D – Beach Residential

18.16 Track changes reflect edits made pursuant to 3-10-26 City Council motion R-T(E) Subdistrict E – Beach
Medium/High Residential
C-C Community Commercial District
C-T Thoroughfare Commercial District
C-N Neighborhood Commercial District
C-B Beach Commercial District
P-A Professional and Administrative
Office District
SC-H Small Craft Harbor District
C-D/R Coastal Dependent/Related District
I-G General Industrial District
I-G/PER General Industrial
District/Performance Overlay Zone

I-G/PER
2 General Industrial
District/Performance District
PK Parks District
PF Public Facilities District
E-A Exclusive Agricultural District
OF-R Ocean Front (Recreational) District
F-P Floodplain District
H-O Historic Overlay District
CBD Central Business District
CBD(E) CBD Subdistrict E – Lower Pacific
Avenue
SP-O Shoreline Protection Overlay
District
CZ-O Coastal Zone Overlay District
MX-O Mixed Use Overlay District
FP-O Floodplain Overlay District
CON Neighborhood Conservation
Overlay District
WCD West Cliff Drive Overlay District
MS-O Mission Street Urban Design Plan
Overlay District

18.17 Track changes reflect edits made pursuant to 3-10-26 City Council motion CS-O Coral Street Overlay District
Section 2. Part 44 of Chapter 24.10 of the Santa Cruz Municipal Code regarding Coral Street Overlay District is hereby added to read as follows:

Part 44: CORAL STREET OVERLAY DISTRICT

24.10.4400 PURPOSE.

The purpose of the Coral Street Overlay District is to allow for the uses and types of development described in the Coral Street Visioning Report and to provide for the capacity of temporary housing required under state law. The goal of this overlay is to create zoning conditions that will support the creation of new and expanded housing and services programs for people experiencing or atrisk of homelessness.

24.10.4410 APPLICABILITY.

The Coral Street Overlay District shall apply to the area designated on the official zoning map of the City and shall be combined with the underlying zone for such area. This district generally includes most of the properties with frontage on the north and south sides of Coral Street between River Street to the east and the rail corridor to the west.

24.10.4420 PERMITTED USES.

The principal permitted and use permit required uses of the underlying zone shall continue to apply. In addition, notwithstanding section 24.10.040, the following uses shall be principally permitted:

1. Temporary housing, including, but not limited to, emergency shelters, navigation centers, bridge housing, and respite or recuperative care, subject to the standards in Chapter 24.12, Part 17;

2. Multiple dwellings or condominiums where all dwellings, except for up to three manager’s units, are offered at an affordable rent or sale price to moderate or lower income households as recorded in a developer affordable housing agreement with the City;

3. Residential behavioral health program facilities, including substance use disorder treatment facilities and secure behavioral health facilities;

4. Supportive housing;

5. Wraparound services relating to temporary housing, including, but not limited to, mail services, job training, and behavioral health programs; and

6. Principal permitted commercial uses in the Community Commercial District as described in Section 24.10.710.

18.18 Track changes reflect edits made pursuant to 3-10-26 City Council motion

7. Live-work units consistent with Section 24.12.185(13).

24.10.4430 USE DETERMINATION.

Any other use or service establishment determined by the zoning administrator to be of the same general character, as defined by similar types of operations, service population, intensity, and nature of use, as the foregoing uses, and which will not impair the present or potential use of adjacent properties, may be permitted.

24.10.4440 DISTRICT REGULATIONS.

1. Development standards shall be those of the underlying zone, except as modified by this section, notwithstanding section 24.10.040.

2. For buildings in which the uses include at least one of the uses described in subsections

24.10.4420.1-5, the maximum height of buildings shall be five stories and 60 feeteight stories and 85 feet.

3. The development site shall not include any natural and protected lands described under Public Resources Code Section 21067.5, as may be amended.

4. For 100% affordable housing projects, any lease or sales agreements shall state that the tenants/owners recognize that a variety of industrial uses exist in the area, and industrial uses often involve noise, smell, dust, or other impacts on the surrounding area.

Section 3. Part 17 of Chapter 24.12 of the Santa Cruz Municipal Code regarding Emergency Shelters is hereby renamed Temporary Housing and amended to read as follows:

Part 17: TEMPORARY HOUSING

24.12.1600 PURPOSE.

The purpose of these regulations is to provide a definition and development standards for temporary housing. The regulations contained herein are designed to make such uses compatible with surrounding uses.

24.12.1610 DEFINITION.

Temporary housing is a short-term housing intervention for persons experiencing homelessness that typically includes supportive services and acts as an interim bridge to permanent housing.

Temporary housing includes, but is not limited to, an emergency shelter, navigation center, bridge housing, and respite or recuperative care.

24.12.1620 DEVELOPMENT STANDARDS.

18.19 Track changes reflect edits made pursuant to 3-10-26 City Council motion Temporary housing shall comply with the underlying development standards of the zoning district in which it is located or the development standards of an overlay zone, if applicable. In addition, the following standards shall be met:

1. Lighting. External lighting shall be provided for security purposes. Lighting shall be consistent with the objective design standards for multifamily development lighting standards described in Section 24.12.185.16.

2. Security. The temporary housing facility shall have on-site security and/or security cameras during all hours when the facility is in operation. Security cameras, if used, must, at minimum, face all entrances and exits of the building.

3. On-site Management. The provider shall have a written management plan including, as applicable, provisions for staff training, good neighbor policies, security, transportation, client supervision, food services, screening of residents to ensure compatibility with services provided at the facility, and for training, counseling, and treatment programs for residents..

4. Bed Space. The number of beds or persons permitted to be served by the facility will be limited by the standards set forth in this section and other applicable sections of the zoning and building codes.

5. Parking. The emergency shelter shall provide on-site parking at a rate of one space per staff member at the shift with the greatest number of staff members.

Section 4. Section 24.22.153.5 of Chapter 24.22 of the Santa Cruz Municipal Code regarding Bridge Housing is hereby added to read as follows:

24.22.153.5 BRIDGE HOUSING.

Also known as “Emergency bridge housing community.” Any new or existing facilities, including, but not limited to, housing in temporary structures, including, but not limited to, emergency sleeping cabins consistent with the requirements of subdivision (h) of Section 8698.3 of the California Government Code that are reserved for homeless persons and families, together with community support facilities, including, but not limited to, showers and bathrooms adequate to serve the anticipated number of residents all of which may be located on property leased or owned by a political subdivision. An emergency bridge housing community shall include supportive and self-sufficiency development services, have the ultimate goal of moving homeless persons to permanent housing as quickly as reasonably possible, and limit rents and service fees to an ability-to-pay formula reasonably consistent with the United States Department of Housing and Urban Development’s requirements for subsidized housing for low-income persons.

Section 5. Section 24.22.559.1 of Chapter 24.22 of the Santa Cruz Municipal Code regarding Navigation Center is hereby added to read as follows:

24.22.559.1 NAVIGATION CENTER.

18.20 Track changes reflect edits made pursuant to 3-10-26 City Council motion A Housing First, low-barrier, service-enriched shelter focused on moving homeless individuals and families into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing.

Section 6. The Zoning Map is hereby amended to add the Coral Street Overlay District as shown in the attached Exhibit “A”.

Section 7. The City Council finds and determines that the adoption of this ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.085 as a rezoning that implements the schedule of actions within an approved housing element and pursuant to CEQA Guidelines Section 15061(b)(3) as a project that with certainty will not have a significant environmental impact.

Section 8. 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 9. This ordinance shall take effect and be in full force thirty (30) days after final adoption.

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

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
PASSED FOR FINAL ADOPTION this 24h day of March 2026, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________

18.21 Track changes reflect edits made pursuant to 3-10-26 City Council motion 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. 2026-06 and that
it has been published or posted in
accordance with the Charter of the
City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator

18.22 ORDINANCE NO. 2026-07
AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING SECTION 24.10.1510 OF THE SANTA CRUZ MUNICIPAL CODE – USE PERMIT REQUIREMENT, RELATED TO

EMERGENCY SHELTERS WITHIN THE GENERAL INDUSTRIAL DISTRICT AND WITHIN THE CORAL STREET OVERLAY DISTRICT. (CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA): EXEMPT PURSUANT TO PUBLIC RESOURCES CODE SECTION 21080.085 AS A REZONING THAT IMPLEMENTS THE SCHEDULE OF

ACTIONS WITHIN AN APPROVED HOUSING ELEMENT AND PURSUANT TO CEQA GUIDELINES SECTION 15061(b)(3) AS A PROJECT THAT WITH CERTAINTY HAS NO POTENTIAL TO IMPACT THE ENVIRONMENT.)
WHEREAS, state law requires local jurisdictions to zone for temporary housing uses as principally permitted uses within a zone district that also allows residential use and with the developmental capacity to shelter the number of unsheltered individuals determined by the annual Point In Time count conducted prior to the current Housing Element cycle, as modified by specified criteria; and
WHEREAS, state law also requires local jurisdictions to limit review of proposed temporary housing facilities to specified objective use and development standards; WHEREAS, the City of Santa Cruz 2023-2031 Housing Element (Housing Element) was adopted in December 2023 by the Santa Cruz City Council and subsequently accepted by the state Department of Housing and Community Development; and
WHEREAS, Objective 3.3f of the Housing Element requires the City to adopt an ordinance to comply with state law requirements related to temporary housing zoning and related use and development standards; and
WHEREAS, the City Council accepted the final Coral Street Visioning Report at its May 9, 2023 public hearing; and
WHEREAS, the Coral Street Visioning Report calls for the City to make zoning changes to allow the uses and developments described in that Report; and WHEREAS, Objective 1.2e of the Housing Element requires the City to adopt a Coral Street Overlay that builds off existing services and resources to provide homeless services and related residential use standards for that specific, immediate area; and WHEREAS, at its December 18, 2025 meeting, the City Planning Commission reviewed the proposed amendments to Title 24 of the Santa Cruz Municipal Code and found that the public necessity, and the general community welfare, and good zoning practice shall be served and furthered; and that the proposed amendments are in general conformance with the principles, policies, and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan as proposed to be amended; and

18.23 ORDINANCE NO. 2026-07
2 WHEREAS, at its December 18, 2025 meeting, the Santa Cruz Planning Commission considered the modifications to the Santa Cruz Municipal Code as modifications to the Local Coastal Program and found that (1) the proposed amendment is deemed to be in the public interest; (2) the proposed General Plan and/or Local Coastal Program amendment is consistent and compatible with the rest of the General Plan and LCP and any implementation programs that may be affected; (3) the potential impacts of the proposed amendment have been assessed and have been determined not to be detrimental to the public health, safety, or welfare; and (4) the proposed amendment has been processed in accordance with the applicable provisions of the California Government Code and the California Environmental Quality Act (CEQA); and WHEREAS, at its December 18, 2025 meeting, the City Planning Commission passed a motion that recommended the City Council approve the determination under the California Environmental Quality Act and approve the proposed amendments to Title 24 of the Santa Cruz Municipal Code; and
WHEREAS, due to a noticing error, this item was again noticed and brought before the City Planning Commission at its February 10, 2026 meting; and WHEREAS, at its February 10, 2026 meeting, the City Planning Commission reviewed the proposed amendments to Title 24 of the Santa Cruz Municipal Code and found that the public necessity, and the general community welfare, and good zoning practice shall be served and furthered; and that the proposed amendments are in general conformance with the principles, policies, and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan as proposed to be amended; and WHEREAS, at its February 10, 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 February 10, 2026 meeting, the City Planning Commission passed a motion that recommended the City Council approve the determination under the California Environmental Quality Act and approve the proposed amendments to Title 24 of the Santa Cruz Municipal Code with an additional amendment to limit the maximum building height within the Coral Street Overlay District to five stories and 60 feet (4-0-3, Commissioners Kelley, Polhamus, and Thompson absent.

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

18.24 ORDINANCE NO. 2026-07
3 Section 1. Section 24.10.1510 of the Santa Cruz Municipal Code regarding Use Permit Requirement is hereby amended to read as follows:

24.10.1510 USE PERMIT REQUIREMENT.

1. The following uses require an administrative use permit and are subject to other applicable requirements of the municipal code (numerical references at the ends of these categories reflect the general use classifications listed in the city’s land use codes. Subcategories of uses within these use categories can be found in the land use codes, but they are not intended to be an exhaustive list of potential uses):
a. Agriculture (000);
b. Auto services and repairs, including trucks, heavy equipment and auto towing, subject to performance standards in Section 24.12.900 (350);
c. Boat repairs (340D);
d. Cannabis cultivation, subject to the commercial cannabis regulations, Part 14 of Chapter

24.12;
e. Cannabis distribution and warehousing, subject to the commercial cannabis regulations, Part 14 of Chapter 24.12;
f. Cannabis manufacturing, subject to the commercial cannabis regulations, Part 14 of Chapter 24.12;
g. Cannabis retail, subject to the commercial cannabis regulations, Part 14 of Chapter 24.12; h. Churches (500);
i. Communication and information services (550);
j. Community organizations, associations, clubs and meeting halls (570); k. Eating and drinking establishments, subject to live entertainment and alcohol regulations of Chapter 24.12 (280);
l. Educational facilities (public/private) (510);
m. Fabricated metal products (150);
n. Food and beverage stores (except liquor and convenience stores) (240); o. Forestry services (010);

18.25 ORDINANCE NO. 2026-07
4 p. Government and public agencies (530);
q. Leather tanning (110);
r. Off-site public/private parking facilities, five or more spaces (930); s. Other manufacturing and processing industries (except bulk petroleum, scrap and waste materials) (155);
t. Parks (700);
u. Stone, clay, glass products (140);
v. Temporary structures;
w. Transportation facilities (560);
x. Utilities and resources (540);
y. Wireless telecommunications facilities, subject to the regulations in Part 15 of Chapter

24.12;
z. Private property outdoor seating areas, subject to the requirements in Section 24.12.191.

2. The following uses require a special use permit and are subject to other applicable requirements of the municipal code. All industrial classifications from 125 to 145 shall comply with all performance standards listed in Part 2 of the Environmental Resource Management provisions (numerical references at the ends of these categories reflect the general use classifications listed in the city’s land use codes. Subcategories of uses within these use categories can be found in the land use codes, but they are not intended to be an exhaustive list of potential uses):
a. Building material/garden supply stores (220) with forty thousand square feet or more including indoor floor area and outdoor storage, display, or sales areas. For building materials/garden supply stores of which fifty percent or more of the square footage will occupy an existing building, this threshold will be seventy-five thousand square feet including indoor floor area and outdoor storage, display, or sales areas so long as vacant, available space in existing buildings in the IG Zone exceeds four hundred thousand square feet. When the vacant, available square footage is less than four hundred thousand square feet, the forty-thousand-square-foot threshold will apply; b. Chemicals and allied products, subject to performance standards (130); c. Group quarters (850);
d. Multiple dwellings or condominiums subject to R-M District regulations (830, 840);

18.26 ORDINANCE NO. 2026-07
5 e. Nightclubs/music halls, subject to live entertainment and alcohol regulations of Chapter

24.12 (630);
f. Paper and allied products subject to performance standards (125); g. Parks and recreation facilities, subject to alcohol regulations in Part 12 of Chapter 24.12 (720);
h. Primary metals and material subject to performance standards (145); i. Rubber, plastic, miscellaneous materials and products subject to performance standards (135);
j. Single-room occupancy (SRO) housing (860) under the following conditions:
(1) The site is located within one-quarter mile (one thousand three hundred twenty feet) of a grocery store.
(2) The lot size is less than six thousand square feet. (3) The SRO is part of a mixed use project, sharing the site and/or building with a use that is allowed under Section 24.10.1505, Principal Permitted Uses, is in conformance with Section 24.10.1540(2), and complies with the following requirements:
(a) The SRO development and the mixed use business are under one ownership. (b) The amount of building space occupied by the nonresidential use is either at a minimum equal to the SRO or residential use or the nonresidential use occupies the entire ground floor of the development.
(4) Ambient interior noise levels can be mitigated below forty-five decibels. (5) Air quality on and around the site, including odors resulting from adjacent land uses, is not considered a potential health hazard and/or objectionable to residential use; k. Smoking lounges as defined in Section 24.22.748.2 and subject to the siting criteria and performance standards in Chapter 5.54;
l. Emergency shelters located outside of the Coral Street Overlay District, subject to regulations in Part 17 of Chapter 24.12.

Section 2. The City Council finds and determines that the adoption of this ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.085 as a rezoning that implements the schedule of actions within an approved housing element and pursuant to CEQA Guidelines Section 15061(b)(3) as a project that with certainty will not have a significant environmental impact.

18.27 ORDINANCE NO. 2026-07
6 Section 3. If any section or portion of this ordinance is found to be invalid by a court of competent jurisdiction, such finding shall not affect the validity of the remainder of the ordinance, which shall continue in full force and effect.

Section 4. This ordinance shall take effect and be in full force thirty (30) days after final adoption outside of the Coastal Zone. Within the Coastal Zone, this ordinance shall take effect and be in full force after approval by the California Coastal Commission, but no earlier than thirty (30) days after final adoption.

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

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

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

18.28 ORDINANCE NO. 2026-07
7 PASSED FOR FINAL ADOPTION this 24th 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. 2026-07 and that
it has been published or posted in
accordance with the Charter of the
City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator

18.29 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, state law requires local jurisdictions to zone for temporary housing uses as principally permitted uses within a zone district that also allows residential use and with the developmental capacity to shelter the number of unsheltered individuals determined by the annual Point In Time count conducted prior to the current Housing Element cycle, as modified by specified criteria; and
WHEREAS, state law also requires local jurisdictions to limit review of proposed temporary housing facilities to specified objective use and development standards; WHEREAS, the City of Santa Cruz 2023-2031 Housing Element (Housing Element) was adopted in December 2023 by the Santa Cruz City Council and subsequently accepted by the state Department of Housing and Community Development; and WHEREAS, Objective 3.3f of the Housing Element requires the City to adopt an ordinance to comply with state law requirements related to temporary housing zoning and related use and development standards; and
WHEREAS, the City Council accepted the final Coral Street Visioning Report at it’s May 9, 2023 public hearing; and
WHEREAS, the Coral Street Visioning Report calls for the City to make zoning changes to allow the uses and developments described in that Report; and WHEREAS, Objective 1.2e of the Housing Element requires the City to adopt a Coral Street Overlay that builds off existing services and resources to provide homeless services and related residential use standards for that specific, immediate area; and WHEREAS, at its December 18, 2025 meeting, the City Planning Commission reviewed the proposed amendments to Title 24 of the Santa Cruz Municipal Code and found that the public necessity, and the general community welfare, and good zoning practice shall be served and furthered; and that the proposed amendments are in general conformance with the principles, policies, and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan as proposed to be amended; and WHEREAS, at its December 18, 2025 meeting, the Santa Cruz Planning Commission considered the modifications to the Santa Cruz Municipal Code as modifications to the Local Coastal Program and found that (1) the proposed amendment is deemed to be in the public interest; (2) the proposed General Plan and/or Local Coastal Program amendment is consistent and compatible with the rest of the General Plan and LCP and any implementation programs that may be affected; (3) the potential impacts of the proposed amendment have been assessed

18.30 RESOLUTION NO. NS-30,XXX
2 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 December 18, 2025 meeting, the City Planning Commission passed a motion that recommended the City Council approve the determination under the California Environmental Quality Act and approve the proposed amendments to Title 24 of the Santa Cruz Municipal Code; and
WHEREAS, due to a noticing error, this item was again noticed and brought before the City Planning Commission at its February 5, 2026 meting; and WHEREAS, at its February 5, 2026 meeting, the City Planning Commission reviewed the proposed amendments to Title 24 of the Santa Cruz Municipal Code and found that the public necessity, and the general community welfare, and good zoning practice shall be served and furthered; and that the proposed amendments are in general conformance with the principles, policies, and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan as proposed to be amended; and WHEREAS, at its February 5, 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 February 5, 2026 meeting, the City Planning Commission passed a motion that recommended the City Council approve the determination under the California Environmental Quality Act and approve the proposed amendments to Title 24 of the Santa Cruz Municipal Code with an additional amendment to limit the maximum building height within the Coral Street Overlay District to five stories and 60 feet (4-0-3, Commissioners Kelley, Polhamus, and Thompson absent; and
WHEREAS, on March 10, 2026, the City Council held a public hearing where the proposed amendments to the Municipal Code were introduced for publication; and WHEREAS, on March 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 requirements and Housing Element direction to support the

18.31 RESOLUTION NO. NS-30,XXX
3 development of temporary housing.

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 2026-07 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 March, 2026, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

18.32 RESOLUTION NO. NS-30,XXX
1 RESOLUTION NO. NS-30,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ ADOPTING AN

UPDATE TO THE INDUSTRIAL LAND PRESERVATION POLICY
WHEREAS, the City of Santa Cruz adopted the General Plan 2030 in 2012 to guide the city’s future physical, social, economic, cultural, and environmental character; and WHEREAS, the general plan includes a wide range of policies that speak to preservation of industrial lands, citing potential benefits for employment and the city’s tax base, including but not limited to the General Plan 2030 excerpts cited in the associated September 10, 2024 City Council staff report related to the creation of the Industrial Land Use Preservation Policy; and WHEREAS, the Industrial Land Use Preservation Policy is intended to clarify and support the General Plan 2030, clearly articulating existing policy while also providing objective standards to support the important city principles associated with preserving and increasing employment opportunities associated with industrial land protection; and WHEREAS, the preservation of industrial land for employment uses promotes a cycle of personal, social, cultural, environmental, and fiscal health, and the conversion of industrial land to non-employment uses can result in a permanent loss of employment capacity, incompatibility of uses, quality of life impacts for residents, limitations on industrial business viability, and the “domino effect” of additional conversions occurring, all as further articulated in the associated September 10, 2024 City Council staff report; and
WHEREAS, the Industrial Land Use Preservation Policy was adopted by City Council on September 10, 2024; and
WHEREAS, the General Plan 2030 Industrial land use designation discourages residential development with only limited flexibility, such as for temporary housing and 100 percent affordable housing on specified sites and for live-work uses; and WHEREAS, the Coral Street Overlay District includes a limited number of sites with an Industrial land use designation, and that overlay allows a limited, specified set of additional residential uses, including 100 percent affordable housing; permanent supportive housing; temporary housing such as emergency shelters, navigation centers, bridge housing, and recuperative care/medical respite; and residential behavioral health facilities; and WHEREAS, the proposed policy is fully consistent with the provisions in the General Plan 2030, which has a certified Environmental Impact Report (EIR), in that the policy would not result in any additional development or land use changes that were not already anticipated in the General Plan 2030 and its EIR, and therefore, the General Plan 2030 EIR provides the California Environmental Quality Act (CEQA) clearance for the proposed policy; and WHEREAS, the City Council on March 24, 2026 considered the update to the Industrial

18.33 RESOLUTION NO. NS-30,XXX
2 Land Use Preservation Policy at a regular City Council hearing.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Cruz hereby acknowledges that the environmental impacts of the Industrial Land Use Preservation Policy were contemplated by the General Plan 2030 EIR and hereby adopts the update to the Industrial Land Preservation Policy, as noted in Exhibit “A,” attached hereto and made a part hereof.

PASSED AND ADOPTED this 24th day of March 2026, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

18.34 APPENDIX A: UPDATE TO CITY COUNCIL INDUSTRIAL LAND USE PRESERVATION POLICY
City Council Industrial Land Use
Preservation Policy
Adopted September 10, 2024
Updated March 24, 2026
In support of various General Plan 2030 principles, some of which are listed at the bottom of this policy, the following criteria shall be adhered to in development proposals. This policy is intended to be indicative of existing general plan requirements, while also providing some objective standards related to floor area ratios to further clarify the existing requirements.

For properties with an industrial land use designation and/or within the IG, IG/PER or IG/PER-2 zone districts, pursuant to the General Plan 2030 industrial land use designation text, various General Plan 2030 goals and policies, and General Plan 2030 Housing Element Policy 1.2e, plans submitted must demonstrate compliance with the following standards:
 Live/work units are the only type of residential use that is allowed.  If less than 95% of the allowable floor area ratio is provided as square footage for commercial/industrial uses allowed by the zoning code, then up to four live/work units may be permitted in total as part of a project which, for purposes of this standard, includes four live/work units total across all properties included in a project or across all properties subdivided into multiple properties after this standard has been established. For example, if one property is subdivided into three properties, only up to four live/work units can be provided across the three properties in total, assuming less than 95% of the allowable floor area ratio is provided in commercial/industrial uses.
 If 95% or more of the allowable floor area ratio is provided as square footage for commercial/industrial uses allowed by the zoning code, then the additional allowable square footage may be provided as live/work units, including more than four live/work units. For purposes of this standard, if a property is subdivided into multiple properties after this standard has been established, then an individual property that meets 95% or more of the allowable floor area ratio as commercial/industrial square footage may use the remaining 5% of allowable floor area ratio as live/work units for that particular property. However, the other properties that were subdivided must also meet the 95% floor area ratio threshold with commercial/industrial uses before live/work units are provided, unless the proposal adheres to the bullet above that speaks to commercial/industrial square footage that is less than 95%, including the limitation of a maximum of four live/work units across all properties within the subdivision.

18.35 RESOLUTION NO. NS-30,XXX

EXHIBIT A
 Live/work units shall comply with the R-M District Standards and the standards in Section 24.12.185.13.c of the Zoning Ordinance.
 The construction of the live/work component must proceed concurrently with or after the commercial/industrial component.
 A limited, specified set of additional residential uses are allowed in the Coral Street Overlay district, including 100 percent affordable housing; permanent supportive housing; temporary housing such as emergency shelters, navigation centers, bridge housing, and recuperative care/medical respite; and residential behavioral health facilities.

In very limited instances, planned development permits have allowed for use variations that authorize residential uses in industrial areas under the previous general plan. As of the drafting of this policy, staff is not aware of such use variation allowances under the current general plan that has been in effect since 2012, which speaks to the rarity of such occurrences. (However, a use variation was allowed in 2013 that allowed for a hotel use on an industrial property. That property was on the periphery of industrial area, and it maintained the land in an employment use that did not present the same fiscal concerns as a residential conversion. The hotel was also estimated to have a substantial number of business-oriented guests (estimated at 40%), which would serve the industrial and educational uses in the immediate area. Even industrial conversions of this nature, with an expansion of allowable employment uses, need to be very carefully considered.) While deviations from this policy may be exercised through planned development permits, the principles contained herein can guide the use of planned development permits that seek to allow for residential uses in industrial lands. Such approach should be extremely rare and only when the utmost care is taken to ensure that the challenges and concerns associated with residential uses on industrial lands do not materialize. (See the September 10, 2024 City Council staff report for more information on some of those challenges.) Sites on the periphery of industrial lands that are separated from other industrial uses and that transition between commercial/industrial and residential areas could potentially be considered for such residential uses through a planned development permit, but only in very limited circumstances, when a broader set of general plan policy objectives would support such uses, and when greater public benefit is provided as part of the planned development permit. The planned development permit process is completely discretionary and does not provide any guarantee that residential uses of any kind will be allowed, since the only allowable residential uses on industrial lands are “limited” live-work, consistent with the general plan land use designation.

This policy is supported by many components of the General Plan 2030 text, including but not limited to the following:

Guiding Principles:
 Prosperity for all. We will ensure a sustainable economy for the community, actively encouraging the development of employment opportunities for residents of

18.36 RESOLUTION NO. NS-30,XXX

EXHIBIT A
all levels and ages, and actively protecting from elimination our current and potential sources of sustainable employment.
 A dependable municipal tax base. We will encourage diverse technology, visitor serving, industrial, home business and commercial business enterprises, and strategic redevelopment.

Goals, Policies, & Objectives:
 LU3.2 Maintain lands currently designated for industrial and office in land use designations that promote job creation and retention.
 LU3.2.1 Pursue the expansion of employment-intensive uses that have long-term economic viability.
 LU3.2.2 Develop land use and economic plans for the Westside Industrial and Harvey West areas.
 LU3.2.3 Encourage light industrial uses and creative industry to locate in the Harvey West Area.
 LU3.2.4 Allow incubator uses in employment-intensive areas such as the Westside Industrial Area. Cf.
 LU3.2.5 In considering new types of uses for the Westside Industrial Area, give priority to those that deliver long-term job creation and retention.  LU3.2.6 Amend the Zoning Ordinance to increase the number of stories allowed in the Westside Industrial Area within the existing height limitations.  LU3.2.7 Amend the Zoning Ordinance to provide for employment generation in the city’s industrial areas, and to restrict uses that are incompatible with industrial uses.
 LU3.2.8 Direct large regional retail uses to, and locate remote parking in, a portion of Harvey West.
 Housing Element Objective 1.2e Support a balance of jobs and housing land uses by only considering residential use in industrial land if it is ancillary to industrial land’s full employment capacity being achieved in an economically viable manner and if it does not negatively impact existing or future industrial uses in the area, except in the vicinity of Coral Street on properties where homeless services or affordable housing are identified in the properties’ respective General Plan Land Use Designations as an allowable use. Adopt a Coral Street Overlay that builds off existing services and resources to provide homeless services and related residential use standards for that specific, immediate area.

18.37 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:

March 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 March, 2026, Santa Cruz, California
____________________________
Julia Wood
Deputy City Clerk Administrator

18.38 DECLARATION OF POSTING

STATE OF CALIFORNIA )
) SS.

COUNTY OF SANTA CRUZ )
On the 16th day of March, 2026, I posted conspicuously in three public places within the City of Santa Cruz, Ordinance No. 2026-06, 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—9.

I declare under penalty of perjury that the foregoing is true and correct. Executed this 16th day of March, 2026, in Santa Cruz, California.
_______________________________
Julia Wood
Deputy City Clerk Administrator

18.39 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:

March 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 March, 2026, Santa Cruz, California
____________________________
Julia Wood
Deputy City Clerk Administrator

18.40 DECLARATION OF POSTING

STATE OF CALIFORNIA )
) SS.

COUNTY OF SANTA CRUZ )
On the 16th day of March, 2026, I posted conspicuously in three public places within the City of Santa Cruz, Ordinance No. 2026-07, 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—7.

I declare under penalty of perjury that the foregoing is true and correct. Executed this 16th day of March, 2026, in Santa Cruz, California.
_______________________________
Julia Wood
Deputy City Clerk Administrator

18.41 Brittany Inclan
From: A Webb <[email protected]>
Sent: Friday, March 20, 2026 4:30 PM
To: Clara Stanger
Cc: City Council
Subject: 3.24.26 Agenda Item #18 Zoning Map for Overlay & PC Feb 10th agenda? Hi Clara or whomever in charge of this,
Is there an actual map that shows where these Zoning areas are, highlighting the Overlay Boundaries? I couldn't find any posted with the Agenda documents, only the Ordinance that states changes that were made to the Zoning map.

The Resolution re: LCP amendments states there was a Planning Commission meeting on Feb 10, 2026, whereby changes were discussed...I only see posted on the City's website a meeting for Feb 5, 2026.

Where is the Feb 10th agenda?
Thank you,
Anita Webb

18.42 Brittany Inclan
From: Clara Stanger
Sent: Monday, March 23, 2026 8:46 AM
To: A Webb
Cc: City Council
Subject: Re: 3.24.26 Agenda Item #18 Zoning Map for Overlay & PC Feb 10th agenda? Attachments: EXHIBIT “A” CORAL STREET OVERLAY DISTRICT MAP.pdf Hi Anita,
Thanks for bringing these questions to my attention. There is a map that shows the zoning overlay. It was included in the agenda items for the first reading on March 10th, and I have reattached it here for your convenience. I believe the map is also being added to the attachments for the agenda item at tomorrow's meeting.

The Planning Commission meeting was on February 5th, not the 10th. That was a typo, and it will be fixed in the finalized resolution.

Sincerely,
Clara Stanger
Senior Planner
City of Santa Cruz | Community Development Department
809 Center Street Rm. 101, Santa Cruz, CA 95060
Direct: 831-420-5247
Email: [email protected]
santacruzca.gov

From: A Webb <[email protected]>
Sent: Friday, March 20, 2026 4:30 PM
To: Clara Stanger <[email protected]>
Cc: City Council <[email protected]>
Subject: 3.24.26 Agenda Item #18 Zoning Map for Overlay & PC Feb 10th agenda?

****CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.****
Hi Clara or whomever in charge of this,
Is there an actual map that shows where these Zoning areas are, highlighting the Overlay Boundaries? I couldn't find any posted with the Agenda documents, only the Ordinance that states changes that were made to the Zoning map.

18.43 The Resolution re: LCP amendments states there was a Planning Commission meeting on Feb 10, 2026, whereby changes were discussed...I only see posted on the City's website a meeting for Feb 5, 2026.

Where is the Feb 10th agenda?
Thank you,
Anita Webb

18.44 Fern S t
Union
Pacific Rail
road
Coral St
Limek
iln
S t
Fern S t
Fern St
1 Coral
S t
Harvey West Blvd
S tate Highway 1
S tate Highway 1
Coral St
Fern S t
Riv
er S t
Rive
r S t
River St
River S t
Cot tonwood S t
Ri
ver S t
River S t
State Highway 1
S tate Highway 1
CC
IG
CC
CC
CT
FP
IG/PER
Coral Street Overlay District
¯
0 0.03 0.05 0.1 Miles

18.45 Brittany Inclan
From: A Webb <[email protected]>
Sent: Monday, March 23, 2026 11:49 AM
To: Clara Stanger
Cc: City Council
Subject: Re: 3.24.26 Agenda Item #18 Zoning Map for Overlay & PC Feb 10th agenda? Thank you for the reply and map - helpful for clarification.

I see the Resolution posted is now corrected to Feb 5th PC meeting, however both of the ORDINANCES (below) signed on March 10th still have the Feb 10th PC date "Typo" so I assume some type of additional amendment to correct that original signing is to come, prior to the 2nd signing? 2026-06 - AMENDMENTS TO THE ZONING MAP AND CREATE NEW OVERLAY DISTRICT (CD).DOCX 2026-07 - AMENDING LCP IP - GENERAL INDUSTRIAL ZONING DISTRICT (CD).DOCX On Mon, Mar 23, 2026 at 8:46 AM Clara Stanger <[email protected]> wrote:

Hi Anita,
Thanks for bringing these questions to my attention. There is a map that shows the zoning overlay. It was included in the agenda items for the first reading on March 10th, and I have reattached it here for your convenience. I believe the map is also being added to the attachments for the agenda item at tomorrow's meeting.

The Planning Commission meeting was on February 5th, not the 10th. That was a typo, and it will be fixed in the finalized resolution.

Sincerely,
Clara Stanger
Senior Planner
City of Santa Cruz | Community Development Department
809 Center Street Rm. 101, Santa Cruz, CA 95060
Direct: 831-420-5247
Email: [email protected]
santacruzca.gov

From: A Webb <[email protected]>
Sent: Friday, March 20, 2026 4:30 PM
To: Clara Stanger <[email protected]>
Cc: City Council <[email protected]>
Subject: 3.24.26 Agenda Item #18 Zoning Map for Overlay & PC Feb 10th agenda?

18.46 ****CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.****
Hi Clara or whomever in charge of this,
Is there an actual map that shows where these Zoning areas are, highlighting the Overlay Boundaries? I couldn't find any posted with the Agenda documents, only the Ordinance that states changes that were made to the Zoning map.

The Resolution re: LCP amendments states there was a Planning Commission meeting on Feb 10, 2026, whereby changes were discussed...I only see posted on the City's website a meeting for Feb 5, 2026.

Where is the Feb 10th agenda?
Thank you,
Anita Webb

18.47 Brittany Inclan
From: Mary Beth Campbell <[email protected]>
Sent: Monday, March 23, 2026 11:11 AM
To: City Council
Cc: Fred Keeley; Bonnie Bush
Subject: PUBLIC COMMENT: City Council Meeting [March 24, 2025] - Agenda Item #19 Hello Mayor Keeley and Councilmembers,
I own property at 230 Fern Street and, in addition to running my business there, I rent space to other small businesses; together, we all contribute jobs and tax revenue to the City of Santa Cruz. To say it is a challenge conducting business in this area is a vast understatement.

One of my tenants and I have reached out to a few of you individually and to all of you collectively more than once, but we have not heard back from anyone. I hope you will hear my concerns and be willing to engage in a dialogue about the Coral Street Overlay.

I understand the need for housing and homeless services, I honestly do, but I do not understand why this often seems to come at the expense of hardworking small business owners and nearby residents.

The proximity to Coral Street and the Housing Matters complex impacts Fern Street and many surrounding businesses almost daily. My employees, tenants, and I have repeatedly called the police for help regarding people squatting in our parking lot, setting up shanties in the street, defecating and doing drugs in front of our businesses and generally creating unease and a lack of safety for my tenants and employees. The city's response is inconsistent; we only receive help after calling multiple times and practically begging someone to come to our aid.

Other times we attempt to handle the situation ourselves, which is risky and dangerous, but often necessary because we lack the time to wait for patrols as we must conduct business.

I am not against the City choosing to create housing and offer resources for those experiencing homelessness, but I am against the lack of support the City provides to those of us on the front lines who must deal with the impact of those choices.

One only has to look at the state of Coral Street and the surrounding area over the last decade or more to see how this overlay might reverberate throughout Harvey West and have an even greater negative impact on Fern, Coral and Encinal Streets. Without a clear, delineated plan to address the historical issues in this area over the years, expanding the services and their footprint right now feels short-sighted. As a Harvey West business and property owner, I implore the City to support the Harvey West residents and business community as passionately as it supports those who are unhoused.

My small business in Harvey West, like many others, contributes to the city’s economy and offers good jobs to residents. Owning a small business is hard work, and it becomes even more challenging when navigating what feels like the city's lack of compassion for our needs and its disregard for the Harvey West area as a whole.

18.48 I earnestly ask the City to work toward creating a balance of care, concern and support among those in need and those who are doing their level best to make ends meet and provide jobs. I am not asking that we be a priority over others, I am asking that the impact and potential hardships this overlay will cause be considered in equal measure to the problems it intends to address. Since this overlay appears likely to be approved, I ask that you consider the impact on the area and embed supportive language within the ordinance that demonstrates and acknowledges an understanding for the needs of those who live and work in the area.

To that end, amending this item to include language that codifies support for Harvey West residents and businesses would go a long way in demonstrating good faith and good will; adding clear direction and tangible action to be taken in support of business owners and residents would validate that those who live and work in Harvey West also matter and that the City has care and concern for ALL its inhabitants.

If possible, I would very much like to discuss my concerns and perhaps talk about solutions and/or ways to ameliorate current and future issues that will arise should this overly be approved.

Unfortunately, I travel for work so I will be unable to attend the meeting, but I am very interested in speaking with anyone else who will listen, about these concerns.

Thank you for your time, I would appreciate any insight or thoughts on this matter and do look forward to hearing back from you.

Regards,
Mary Beth Campbell
Boom Boom!
......................................................

Mary Beth Campbell
the boomerang project
you get back what you give
800.688.7578
www.boomerangproject.com
Follow and like us!
Insta: @boomerangproject
Twitter: @boomerangprjct
Facebook: @Link Crew & WEB by the Boomerang Project

18.49 ORDINANCE NO. 2026-08

AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING SANTA CRUZ MUNICIPAL CODE CHAPTER 24.16 – AFFORDABLE HOUSING PROVISIONS, INCLUDING: SECTION 24.16.035 – INCENTIVES FOR COMPLIANCE WITH INCLUSIONARY HOUSING REQUIREMENTS, SECTION 24.16.300 – UNITS ELIGIBLE FOR FEE WAIVERS, AND SECTION 24.16.310 – PROCEDURE FOR WAIVER OF FEES WHEREAS, the City Council unanimously adopted the City of Santa Cruz 2023-2031 Housing Element (“Housing Element”) on December 12, 2023; and WHEREAS, the Housing Element includes Objective 2.2b, which states: Update the City’s ordinance related to fee waivers for affordable units to provide more clarity and to streamline the approval process; and
WHEREAS, these ordinance amendments aim to support affordable housing development and achieve the City’s Regional Housing Needs Allocation targets by removing financial barriers at critical stages of project development, while maintaining timely collection of development review fees in accordance with established agreements; and WHEREAS, these ordinance amendments align with recent State legislation deferring development impact fees for specified projects in order to aid the production of affordable housing in California; and
WHEREAS, these ordinance amendments seek to balance the City’s affordable housing objectives with long-term financial sustainability goals; and WHEREAS, these ordinance amendments seek to clarify the process for granting fee deferrals by establishing a consistent, transparent procedure for applicants; and WHEREAS, at its February 5, 2026 meeting, the City Planning Commission reviewed the these amendments and found that the public necessity, the general community welfare, and good zoning practice will be served and furthered; and that the proposed amendments are in general conformance with the principles, policies, and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan as proposed to be amended; and WHEREAS, at its February 5, 2026 meeting, the City Planning Commission passed a motion that recommended the City Council approve the determination that the ordinance amendments are not a “project” under Public Resources Code section 21065 and California Environmental Quality Act Guidelines section 15378(b)(2), (4), and 15061(b)(3) and approve the ordinance amendments to Title 24 of the Santa Cruz Municipal Code (4-0-3, Commissioners Kelley, Polhamus, and Thompson absent).

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

19.1 ORDINANCE NO. 2026-08
2 Section 1. Section 24.16.035 of the Santa Cruz Municipal Code regarding Incentives for Compliance with Inclusionary Housing Requirements is amended to read as follows:

24.16.035 INCENTIVES FOR COMPLIANCE WITH INCLUSIONARY HOUSING REQUIREMENTS.

The following incentives may be available for the provision of inclusionary units:

1. Fee deferrals may be granted pursuant to Part 4 of this chapter.

2. A residential development may satisfy its inclusionary housing requirements through any of the alternative compliance methods available in Section 24.16.030 in lieu of providing inclusionary units on site.

3. The interior amenities and square footage of the inclusionary units may be reduced below those required for the market rate units, as provided in Section 24.16.025(4).

4. Residential developments in which all dwelling units are offered for rent, inclusionary units are provided within the development, no subdivision map has been recorded, and no density bonus under Part 3 of this chapter has been requested are eligible for a twentyseven and one-half percent “city rental housing bonus.” Section 2. Chapter 24.16 Part 4 of the Santa Cruz Municipal Code regarding Fee Waivers for Affordable Units is renamed to Fee Deferrals for Affordable Units and amended to read as follows:

Part 4: FEE DEFERRALS FOR AFFORDABLE UNITS
Section 3. Section 24.16.300 of the Santa Cruz Municipal Code regarding Units Eligible for Fee Waivers is renamed to Units Eligible for Fee Deferrals and amended to read as follows:

24.16.300 UNITS ELIGIBLE FOR FEE DEFERRALS.
a. The City may grant the deferral of specified development review fees if the deferrals will assist in providing residential units affordable to low or very-low income households as part of a 100 percent affordable housing project. For purposes of this section, a 100 percent affordable housing projects has all units, other than up to three manager’s units, deed restricted to provide affordable rents to low or very-low income households.

Fees eligible for deferral are outlined in the City Council Development Review Fee Deferral Policy for 100 Percent Affordable Housing Developments.

Section 4. Section 24.16.310 of the Santa Cruz Municipal Code regarding Procedure for Waiver of Fees is renamed to Procedure for Deferral of Fees and amended to read as follows:

19.2 ORDINANCE NO. 2026-08
3 24.16.310 PROCEDURE FOR DEFERRAL OF FEES.

A fee deferral supplemental application shall be submitted at the time a planning application for a 100 percent affordable housing project is submitted to the City. The fee deferral supplemental application may be submitted with the building plan check application if no planning permit fees are applicable or requested for deferral.

Section 5. This ordinance shall take effect and be in full force thirty (30) days after final adoption.

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

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

NOES: None.

ABSENT: None.

DISQUALIFIED: None.

APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator

19.3 ORDINANCE NO. 2026-08
4 PASSED FOR FINAL ADOPTION this 24th 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. 2026-08 and that
it has been published or posted in
accordance with the Charter of the
City of Santa Cruz.
________________________________
Bonnie Bush, City Clerk Administrator

19.4 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:

March 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 March, 2026, Santa Cruz, California
____________________________
Julia Wood
Deputy City Clerk Administrator

19.5 DECLARATION OF POSTING

STATE OF CALIFORNIA )
) SS.

COUNTY OF SANTA CRUZ )
On the 16th day of March, 2026, I posted conspicuously in three public places within the City of Santa Cruz, Ordinance No. 2026-08, 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—4.

I declare under penalty of perjury that the foregoing is true and correct. Executed this 16th day of March, 2026, in Santa Cruz, California.
_______________________________
Julia Wood
Deputy City Clerk Administrator

19.6 City Council

AGENDA REPORT
DATE: 03/04/2026
AGENDA OF: 03/24/2026
DEPARTMENT: Economic Development
SUBJECT: TEFRA Hearing and Resolution Regarding Conduit Financing for the Calypso Project (ED)
LOCATION: District 4
RECOMMENDATION: Conduct the public hearing under the requirements of Tax and Equity Fiscal Responsibility Act (“TEFRA”) and the Internal Revenue Code of 1986, as amended (the “Code”), and adopt a resolution approving the issuance of tax-exempt multifamily housing revenue bonds in an amount not to exceed $42,000,000 (the “Bonds”), by the California Municipal Finance Authority (“CMFA”) for the benefit of Calypso Affordable LP (the “Borrower”), to provide for the financing of the multi-family rental affordable housing project.

BACKGROUND: On January 25, 2022, the Borrower requested that the CMFA serve as the municipal issuer of the Bonds in an aggregate principal amount not to exceed $42,000,000 (the “Bonds”) of tax-exempt revenue bonds. The proceeds of the Bonds will be used to finance or refinance the acquisition, construction, improvement and equipping of a multifamily rental affordable housing project (the “Project”) located at 130 Center Street, Santa Cruz, California.

In order for the Bonds to qualify as tax-exempt bonds, the City of Santa Cruz must conduct a public hearing (the “TEFRA Hearing”) providing members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community.

Following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project.

CALIFORNIA MUNICIPAL FINANCE AUTHORITY:

The CMFA was created on January 1, 2004, pursuant to a joint exercise of powers agreement to promote economic, cultural and community development, through the financing of economic development and charitable activities throughout California. To date, over 350 municipalities, including the City, have become members of CMFA.

The CMFA was formed to assist local governments, non-profit organizations and businesses with the issuance of taxable and tax-exempt bonds aimed at improving the standard of living in

20.1 California. The CMFA’s representatives and its Board of Directors have considerable experience in bond financing.

DISCUSSION: In the judgment of the Borrower, the most cost-effective and desirable way to finance the Project requires the issuance of tax-exempt Bonds in an amount not to exceed $42,000,000 (the “Bonds”). Issuance of the Bonds requires the host city to conduct a public hearing under the Tax and Equity Fiscal Responsibility Act (“TEFRA”). The hearing is to consider the proposed issuance of the Bonds by the CMFA, a joint exercise of powers authority and public entity of the State of California, in an amount not to exceed $42,000,000, (the “Bonds”), to finance the Project. Following the public hearing, City Council would have to adopt a resolution approving the issuance of the Bonds by the CMFA to finance the Project In order to support the production of affordable housing, staff recommend that the City conduct the TEFRA Hearing and adopt the resolution in favor of the issuance of the Bonds by the CMFA.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The Project has already been approved and qualified for a Categorical Exemption under CEQA guidelines Section 15332, Class 32 for an infill development project.

HEALTH IN ALL POLICIES (HiAP): HiAP is a collaborative approach to improving the health of all people by incorporating health considerations into decision-making across sectors and policy areas. HiAP rests on three pillars: equity, public health, and sustainability. HiAP serves to ensure that all decision-makers remain informed about the health, equity, and sustainability impacts of various policy options during the policy development process. The project supports the pillar of equity by providing 100% affordable rental units on an infill site in a developed urban area improved with sidewalks and street trees and offering direct access to public transportation, commercial goods and services, and recreational areas, including ample opportunities for recreation and respite provided by virtue of the site’s proximity to parks and the Pacific Ocean. The development of residences on the existing low-performing, underutilized site encourages a sustainable and healthy lifestyle by promoting alternative forms of transportation.

Through the incorporation of additional bicycle parking and site landscaping, the redevelopment encourages a sustainable and healthy lifestyle by promoting alternative modes of transportation in a resource-rich environment encouraging outdoor recreation. As such, the project fortifies the three pillars of the HiAP and demonstrates efficient and judicious use of the subject property.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: No

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City or the State of California but are to be paid for solely from funds provided by the Borrower.

20.2 Prepared By:

Jessica de Wit
Housing and Community
Development Manager
Submitted By:

Bonnie Lipscomb
Deputy City Manager
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. RESOLUTION.DOCX

20.3 RESOLUTION NO. NS-30,XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CRUZ APPROVING

THE ISSUANCE OF THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY EXEMPT

FACILITY BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $42,000,000 FOR THE PURPOSE OF FINANCING OR REFINANCING THE

ACQUISITION, CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF CALYPSO

APARTMENTS AND CERTAIN OTHER MATTERS RELATING THERETO
WHEREAS, Calypso Affordable LP (the “Borrower”) is a partnership, with the General Partners Calypso Swenson, LLC and PacH San Jose Holdings, LLC, and one or both of those entities are associated with Green Valley Corp. dba Swenson (the “Developer”). Borrower has requested that the California Municipal Finance Authority (the “Authority”) adopt a plan of financing providing for the issuance of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Internal Revenue Code of 1986 (the “Code”) in one or more series issued from time to time,, including bonds issued to refund such exempt facility bonds in one or more series from time to time, and at no time to exceed $42,000,000 in aggregate principal amount (the “Bonds”), to finance or refinance the acquisition, construction, improvement and equipping of a multifamily rental affordable housing project located at 130 Center Street, Santa Cruz, California (the “Project”); and
WHEREAS, pursuant to Section 147(f) of the Code, the issuance of the Bonds by the Authority must be approved by the City of Santa Cruz (the “City”) because the Project is located within the territorial limits of the City; and
WHEREAS, the City Council of the City (the “City Council”) is the elected legislative body of the City and is one of the “applicable elected representatives” required to approve the issuance of the Bonds under Section 147(f) of the Code; and WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”), among certain local agencies, including the City; and
WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Santa Cruz as follows:

Section 1. The foregoing resolutions are true and correct.

Section 2. The City Council hereby approves the issuance of the Bonds by the Authority.

It is the purpose and intent of the City Council that this resolution constitute approval of the

20.4 RESOLUTION NO. NS-30,XXX
issuance of the Bonds by the Authority, for the purposes of: (a) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(f); and (b) Section 4 of the Agreement.

Section 3. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Bonds.

Section 4. The adoption of this Resolution shall not obligate the City or any department thereof to: (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein.

Section 5. The City Manager, or his designee, is hereby authorized and directed to do any and all things and to execute and deliver any and all documents as deemed necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby.

Section 6. This resolution shall take effect immediately upon its adoption.

PASSED AND ADOPTED this 24th day of February, 2026, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED
APPROVED:

Fred Keeley, Mayor
ATTEST: ___________ ___
Bonnie Bush, City Clerk Adminstrator

20.5 Brittany Inclan
From: A Webb <[email protected]>
Sent: Monday, March 23, 2026 10:47 AM
To: City Council
Subject: 3.24.26 Agenda Item #20 - $42 million tax exempt Bond Mayor and City Councilmembers,
This 6-story mixed use project that is 233 Single Room Occupany (SRO) units, with only 23 units (10%) designated for Very Low Income (50% of AMI), and 8 as Moderate Income (80%-120%), is borrowing $42,000,000 Mutli-family project tax exempt bonds. Aren't these bonds for residential projects with at least 20% of total units (47 units) designated at 50% of AMI, or 40% of units (93 units) at 60% of AMI? Or 100% Affordable Housing projects?
https://www.calpfa.org/private-activity-programs/affordable-multifamily-housing-bonds/ Perhaps the City decision makers can have discussion about this qualification before signing off on it - it would help with clarification for the public too. I suspect that other financing deals will be pursued at some point down the road, and/or some other modification or amendment to the Development Agreement and conditions after the fact - seems to go with this developer's business model.

Thank you.

20.6 City Council

AGENDA REPORT
DATE: 03/05/2026
AGENDA OF: 03/24/2026
DEPARTMENT: Water
SUBJECT: Introduce for Publication an Ordinance Amending Section 16.15.050 of the Santa Cruz Municipal Code Pertaining to Cross-Connection Control and Backflow Protection (WT)
LOCATION: Citywide
RECOMMENDATION: Motion to introduce for publication an ordinance amending 16.15.050 of the Santa Cruz Municipal Code pertaining to cross-connection control and backflow protection to replace reference to Title 17 of the California Code of Regulations with reference to the California Health and Safety Code.

BACKGROUND: The City of Santa Cruz Water Department (Department) operates a public water system and is responsible for complying with state and federal regulations that ensure a safe, reliable water supply for the City’s customers inside and outside of the City Limits. On December 19, 2023, the State Water Resources Control Board’s Division of Drinking Water (DDW) adopted the Cross-Connection Control Policy Handbook (CCCPH) that established a consistent and more rigid set of enforceable standards and principles regarding cross-connection control for all of California’s public water systems and which replaced prior regulations under Title 17 of the California Code of Regulations. The new CCCPH is now effective as of July 1, 2024. Backflow prevention and cross-connection control prevention policies protect the City’s water supply at the customer’s service connection line by preventing potentially hazardous contaminants from property side plumbing from reaching the City’s water distribution system.

The City has administered the backflow program since 1980 and oversees the required annual testing of over 3,500 backflow devices on different types of water services (domestic, irrigation and fire). Customers are required to install a backflow prevention device when the Department’s evaluation of their service indicates a risk to the public water supply due to property-side activities or plumbing configurations, and they are responsible for having any devices installed under these provisions periodically inspected and tested by a person approved by the Department to perform such inspections and tests. Devices shall be tested at least once per year, or at the minimum time interval specified by the CCCPH, whichever is more frequent. The customer is notified by the Department when inspections and tests are required, and records of such inspections and tests are reported to the Department when completed. For the most part, the City’s current backflow policy and administration of the backflow program meets the more rigid set of enforceable standards and practices in the new CCCPH; exceptions include new

21.1 requirements to 1) install a testable backflow device on all residential fire services by July 1, 2034 and 2) for the City to perform a system-wide hazard assessment of every water customer’s property (over 24,000 service connections).

As required by the CCCPH, the City submitted a Cross-Connection Control Plan to the DDW on July 15, 2025, and has been actively working with DDW on addressing comments to obtain final approval of the City’s plan.

DISCUSSION: To align with the new requirements the City shall now amend the Municipal Code, Title 16 which establishes water, sewer, and other public services for the city, to reference the CCCPH instead of Title 17 of the California Code of Regulations. Municipal Code

16.15.050(a) must be revised to remove this language:
“Incorporation of California Title 17. The regulations of the Department of Public Health, Title 17 of the California Code of Regulations, Section 7583 through 7605, as amended from time to time, are hereby adopted,”
And be replaced with the following language:
“The City adopts and implements a cross-connection control and backflow protection program pursuant to California Health and Safety Code section 116407 and 116555.5, which complies with the State Water Resources Control Board’s Cross-Connection Control Policy Handbook (CCCPH),”
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed Council action is not a “project” under CEQA.  The proposed change to the Santa Cruz Municipal Code to specifically reference the CCCPH does not have the potential to directly or indirectly cause a physical change in the environment.

HEALTH IN ALL POLICIES (HiAP): The City’s HiAP decision framework is not applicable to this action as it is mandated by the DDW.

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 fiscal impact resulting from this action.

Prepared By:

Katy Fitzgerald
Management Analyst
Submitted By:

Heidi Luckenbach
Water Director
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. MUNICIPAL CODE SECTION 16.15.050 REDLINED.DOCX

2. FINAL ORDINANCE AMENDING 16.15.050.DOCX

21.2 Santa Cruz Municipal Code Page 1/1
The Santa Cruz Municipal Code is current through Ordinance 2025-29 and legislation passed December 9, 2025.

16.15.050 CROSS-CONNECTION CONTROL AND BACKFLOW PROTECTION. (a) Incorporation of California Title 17. The regulations of the Department of Public Health, Title 17 of the California Code of Regulations, Section 7583 through 7605, as amended from time to time, are hereby adopted, The City adopts and implements a cross-connection control and backflow protection program pursuant to California Health and Safety Code section 116407 and 116555.5, which complies with the State Water Resources Control Board’s Cross-Connection Control Policy Handbook (CCCPH),incorporated by reference and made a part hereof, insofar as the same are applicable to the protection of the city water system. (b) Where Protection is Required. In accordance with department policies and procedures, an approved backflow protection device shall be installed and maintained at every service connection where the department determines there is an actual or potential risk to the public water supply of contamination, pollution, or deterioration in water quality. The level of protection required and the type of device required shall be determined by the department in relation to the degree of the actual or potential hazard. The director’s decisions on such determinations shall be considered final.
(c) Ownership and Responsibility. Any backflow protection devices installed pursuant to the requirements of this section are the sole property and responsibility of the account holder. It shall be the responsibility of the account holder to furnish, inspect, install, and test the device, and to maintain the device in proper working condition at all times. The city shall not be liable for any injury to people or damage to property which may result directly or indirectly from the installation, malfunction, testing or repair of any backflow device. (d) Enforcement. Water service may be discontinued immediately and without notice to the customer if the department determines that the city water supply is being contaminated or is in immediate danger of contamination.

The director’s decisions on such determinations shall be considered final. (e) Policies and Procedures. The department shall maintain written policies and procedures, approved by the director, which specify:
(1) Circumstances and conditions under which the installation of a backflow prevention device shall be required;
(2) Guidelines for the determination of the degree of hazard and level of protection required; (3) Requirements for inspection, testing and maintenance of backflow devices; and (4) Notices and other enforcement actions that will be taken by the city regarding these requirements. (Ord. 2016-06 § 7 (part), 2016).

21.3 ORDINANCE NO. 2026-XX

AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING MUNICIPAL CODE SECTION 16.15.050 – CROSS-CONNECTION CONTROL AND BACKFLOW PROTECTION BE IT ORDAINED by the City Council of the City of Santa Cruz as follows:

WHEREAS, the City of Santa Cruz Water Department maintains a cross-connection control program in accordance with State requirements to ensure the protection of the public water system from hazards that may be posed via property-side plumbing, and WHEREAS, the California Cross-Connection Control Policy Handbook that was adopted by the California State Water Resources Control Board on December 19, 2023 became effective on July 1, 2024 and replaced Title 17 of the California Code of Regulations, and WHEREAS, the City’s Municipal Code needs to be updated to change the regulatory references,
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 16.15.050 of the Santa Cruz Municipal Code is hereby amended to read as follows:
(a) The City adopts and implements a cross-connection control and backflow protection program pursuant to California Health and Safety Code section 116407 and 116555.5, which complies with the State Water Resources Control Board’s Cross-Connection Control Policy Handbook (CCCPH), incorporated by reference and made a part hereof, insofar as the same are applicable to the protection of the city water system.

Section 3. This ordinance shall take effect and be in force thirty (30) days after final adoption.

PASSED FOR PUBLICATION this 24th day of March, 2026, by the following vote:

AYES:

NOES:

ABSENT:

DISQUALIFIED:

21.4 ORDINANCE NO. 2026-XX
2 APPROVED: ______________________________
Fred Keeley, Mayor
ATTEST: _________________________________
Bonnie Bush, City Clerk Administrator
PASSED FOR FINAL ADOPTION this 14th day of April, 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

21.5 Amending Section 16.15.050 of the
Santa Cruz Municipal Code
Cross-Connection
Control and Backflow
Protection

21.6 21.7

21.8 21.9

21.10 RECOMMENDATION: Introduce for
Publication an Ordinance Amending
Section 16.15.050 of the Santa Cruz
Municipal Code Pertaining to CrossConnection Control and Backflow Protection to replace reference to Title 17
of the California Code of Regulations with
reference to the California Health and
Safety Code.

21.11 City Council

AGENDA REPORT
DATE: 03/05/2026
AGENDA OF: 03/24/2026
DEPARTMENT: Public Works
SUBJECT: Lighthouse Point Hazard and Engineering Analysis (c402305) - Award Professional Services Contract (PW)
LOCATION: District 3
RECOMMENDATION: Motion to award a contract to Environmental Science and Associates (San Francisco, CA) for the Lighthouse Point Hazard and Engineering Analysis in the amount of $387,032. The City Manager is hereby authorized and directed to execute an agreement in a form to be approved by the City Attorney. The Director of Public Works is authorized to execute contract amendments within the approved project budget.

BACKGROUND: Recent bluff failures and continued sea cave erosion at the mouth of the cave at Lighthouse Point have heightened concerns about the long-term safety and stability of historic and recreational resources in the area. In addition to ongoing coastal erosion, waves overtopping of the bluffs have become increasingly frequent near Lighthouse Field State Beach, leading to the indefinite closure of a portion of the coastal path to protect public safety.

To better understand existing conditions and hazards in this iconic stretch of coastline and identify recommendations to address those hazards, the City launched a hazard and engineering analysis for the Lighthouse Point area as a priority project. The proposed 2026 study supports the City’s West Cliff 50-year Vision (2024) by shifting from reactive disaster response toward longterm coastal resilience and, while not one of the five priority projects identified in the Council adopted 5-year Roadmap for West Cliff (Roadmap 2024), the study was mentioned in the Roadmap as an existing effort for the West Cliff corridor.

While the challenges presented by the sea cave erosion are increasingly urgent, coastal erosion is a long-standing issue. This study will build on a substantial body of existing work. Following the 1983 El Niño storms, the City commissioned Rogers Johnson and Associates to prepare a Coastal Erosion Study for the Lighthouse Point area. The 2026 Geologic Hazard Analysis will use that study as a foundation and incorporate additional data and analyses, including topographic sea cave surveys conducted in 2000, 2016, and 2026; condition assessments from the West Cliff Adaptation and Management Plan (2021); coastal modeling by University of California Santa Cruz; the Save the Waves Climate and Vulnerability Assessment (2025); and the Living Shorelines, Nature-Based Solutions, and Sand Management Feasibility Study (2025).

22.1 In January 2026, a survey was completed and confirmed the two sea caves at Lighthouse Point do not pose an immediate risk as the closest cave is approximately 40 feet from the Lighthouse.

The endpoint of this study is a report to identify and describe the following:
 The City’s goals and objectives for the project
 Existing conditions of the project area, including limited mapping of the sea caves  A projection of future erosion hazards and risks
 Potential remedial actions
 Preliminary potential impacts of remedial actions on including, but not limited to, recreational use of the area, surfing resources, bluff stability, and ecology.  Technical and project considerations to help City evaluate recommended strategies and decide on next steps for the project.

DISCUSSION: To advance this work efficiently, staff recommends awarding a professional service agreement with Environmental Science and Associates (ESA) to complete the study at Lighthouse Point. ESA has recently worked on several key coastal studies for the City and is uniquely positioned and equipped to evaluate the Lighthouse Point area. ESA’s recent coastal studies for the City include:
1) Design of the San Lorenzo River mouth Culvert and Flood Control Structure, 2) Analysis of Sea Level Rise and its potential impacts on future flooding along the San Lorenzo River,
3) Living Shorelines, Nature-Based Solutions, and Sand Management Feasibility Study Project, and
4) Conceptual design of a Main Beach Living Shoreline Project.

ESA will team with several local, respected consultants including Pacific Crest Engineering and Integral Consulting to round out their multi-disciplinary team.

The proposed scope of work with ESA will involve the following tasks:

Task 1 - Project Initiation: Gather, organize and summarize existing background information Task 2 - Field Data Collection: Topographic survey and other assessments Task 3 - Conditions Assessment: Interpret data gathered in Task 2, and integrate with existing models and prior analysis to establish baseline conditions Task 4 - Alternatives Assessment: Develop and assess potential alternatives that would address ongoing erosion and the City’s goals and objectives for the area Task 5 - Report: The final report will be comprised of the following sections: a description of the project setting, including an assessment of baseline conditions; a discussion of the project goals and objectives; an evaluation of project alternatives; and an analysis of the advantages, disadvantages, feasibility considerations, and recommended future studies for each alternative.

22.2 As acknowledged in Appendix A of the West Cliff 50-Year Vision, in order to produce implementable outcomes, recommendations and actions should fit within the Jurisdictional, Regulatory, Environmental and Financial bounds. Potential next steps will need to be aligned with existing local and state policy, comply with various environmental standards, and recognize potential financial limitations of the City budget.

Community engagement will dovetail with planned community meetings for the ongoing Shoreline Adaptation Management Planning process already underway (tentatively scheduled for late summer 2026)
The Study is estimated to take 12 months to complete and is estimated to cost $378,940.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The Lighthouse Point Hazard and Engineering Analysis is a study therefore not a “project” under CEQA because it does not have the potential to cause a physical change in the environment directly or indirectly. (Pub. Resources Code, § 21065.) Any action taken in a future phase of work if a project or suite of projects is identified for further action and implementation as a result of this study would follow regulations required by CEQA.

HEALTH IN ALL POLICIES (HiAP): This project promotes the following Health in All Policies (HiAP) Conditions:

Health and Wellness, Healthy Environments by integrating public health, environmental protection, and community well-being into coastal hazard planning and decision-making. The study prioritizes assessment of erosion hazards that pose risks to public safety, critical infrastructure, and widely used recreational resources, including access to Steamer Lane and surrounding public amenities. By evaluating existing conditions, future climate-driven hazards such as sea level rise, and a range of potential management alternatives, the proposal supports proactive risk reduction and long-term community resilience.

The project’s emphasis on protecting coastal ecosystems, preserving recreational and cultural resources, reflects HiAP goals of promoting physical and mental health, environmental stewardship, and equitable access to public spaces. Additionally, the consideration of future studies, feasibility, and adaptive management supports informed, transparent decision-making that balances infrastructure protection, environmental health, and quality of life for residents and visitors.

FISCAL IMPACT:

1. The recommendation in this report impacts the General Fund: No

2. This recommendation requires a budget adjustment: No

3. The recommendation creates an on-going expenditure commitment: No FISCAL IMPACT DESCRIPTION: Funds are available in Capital Improvement Project(c402305) West Cliff Resiliency and Accessibility. There is no impact to the General Fund.

22.3 Prepared By:

Kevin Crossley
Assistant Director/City
Engineer
Submitted By:

Nathan Nguyen, P.E.

Director of Public Works
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. PROFESSIONAL SERVICES AGREEMENT.PDF

22.4 City of Santa Cruz Professional Services Agreement for Lighthouse Point Hazard Study March 12, 2026 (Form Rev.01/24 ) Page 1
Professional Services Agreement With

ENVIRONMENTAL SCIENCE ASSOCIATES
For Lighthouse Point Hazard Study
THIS AGREEMENT for professional services is made by and between the City of Santa Cruz (“City”) and Environmental Science Associates, a California corporation (“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 work performed by Consultant, or under Consultant’s direction, shall be rendered in accordance with the generally accepted practices, and to the standards of, Consultant's profession. Consultant represents and agrees that Consultant: (i) is fully experienced and properly qualified to perform the work and services provided for herein, (ii) has the financial capability required for the performance of the work and services, and (iii) is properly equipped and organized to perform the work and services in a competent, timely, and e/professional manner, in accordance with the requirements of this Agreement, using the degree of care and skill ordinarily exercised by professionals providing the same or similar services under the same or similar circumstances.

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

If, in performing the work, it is necessary to conduct field operations, security and safety of the job site will be the Consultant's responsibility excluding, the security and safety of any facility of City within the job site which is not under the Consultant's control.

Consultant shall meet with Nathan Nguen Director of the Public Works Department, hereinafter called "Director", or other designated and authorized City personnel, or third parties as necessary, on all matters connected with carrying out of Consultant’s services described in Exhibit A. Such meetings shall be held at the request of either Party. Review and City approval of completed work shall be obtained monthly, or at other intervals as may be mutually agreed upon during the course of this Agreement. Review, approval, or acceptance of Consultant’s work by City or others shall not relieve Consultant from responsibility for errors and omissions in Consultant’s work.

SECTION 3: RESPONSIBILITIES OF THE CITY
City shall make available to Consultant all necessary data and information in the City's possession and shall actively assist Consultant in obtaining such information from other agencies and individuals as needed. Consultant is entitled to reasonably rely upon the accuracy and completeness of such data and information, and Consultant shall provide City prompt written notice of any known defects in such data and information.

The Director may authorize a staff person to serve as his or her representative. The work in progress shall be reviewed at such intervals as may be mutually agreed upon between the Parties. The City will be the sole judge of acceptable work, provided that such approval will not be unreasonably withheld or delayed. If the work is not acceptable, City will inform Consultant of the changes or revisions necessary to secure approval.

22.5 City of Santa Cruz Professional Services Agreement for Lighthouse Point Hazard Study March 12, 2026 (Form Rev.01/24 ) Page 2
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. Services performed by approved subcontractors or subconsultants shall be invoiced at the actual fees paid by Consultant, plus an additional ten percent (10%) of the cost of these services to compensate Consultant, for the procuring and management of the subconsultant, and for the other financial and administrative costs 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 apply.

Variations from the budget for each task which are justified by statements indicating personnel time expended and submittal of a revised budget are only allowed with prior City approval; however, in no event shall the total fee charged for the Scope of Work set forth in Exhibit A exceed the budget of $387,032 without advance written City authorization in the form of an amendment or change order.

Invoices shall detail the time worked by each class of employee on each task and the expenses incurred for which billing is made. Invoices shall indicate the percentage completion of each work task as identified in the Scope of Work in Exhibit A and the overall percentage of completion of the total required services. Unless otherwise specified in the fee schedule, payments shall be made monthly by the City within 30 days based on itemized invoices from the Consultant which list the actual costs and expenses.

All invoices shall contain the following affidavit signed by Consultant (if individual) or by an authorized representative of Consultant (if Consultant is an entity):
"I hereby certify [or as an authorized representative of Consultant] that the charge of (Insert invoice amount) as summarized above and shown in detail on the attachments is in accordance with the terms of Agreement dated (Insert Agreement Date), and has not been previously paid." This Agreement is contingent upon the appropriation of sufficient funding by the City for the services covered by this Agreement. If funding is reduced or deleted by the City for the services covered by this Agreement, the City has the option without penalty or liability to either terminate this Agreement or to offer an amendment to this Agreement indicating the reduced amount.

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 The total fees and costs of Consultant’s services shall not exceed the amount described in the Fee Schedule.]
SECTION 6: CHANGES IN WORK
City may negotiate changes in the Scope of Work. No changes in the Scope of Work shall be made without the written approval of City and Consultant. Any change requiring compensation in excess of the sum specified in Exhibit B shall

22.6 City of Santa Cruz Professional Services Agreement for Lighthouse Point Hazard Study March 12, 2026 (Form Rev.01/24 ) Page 3
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 begin on the effective date of this Agreement and terminating on upon completion of the Scope of Work.

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

The Work Schedule for completion of the work shall be as shown upon Exhibit C. In the event that major changes are ordered, the schedule for completion as stated in Exhibit C may be adjusted by City so as to allow Consultant a reasonable period of time within which to complete any additional work which may be required as a result of the ordered changes.

Neither party will be held responsible for delay or default caused by declared emergencies, natural disasters, or any Force Majeure event which is beyond the party's reasonable control. Consultant will, however, make all reasonable efforts to remove or eliminate such a cause of delay or default and will, upon the cessation of the cause, diligently pursue performance of its obligations in this Agreement.

The City reserves the right to obtain the item(s) and/or services covered by this Agreement from another source during any on-going suspension of service due to the circumstances outlined above.

Consultant acknowledges that it is necessary for Consultant to complete its work on or before the completion date set forth in Exhibit C in order to allow the City to achieve its objectives for entering into this Agreement. The Parties therefore agree that time is of the essence in the performance of this Agreement.

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 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 30 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 reasonable satisfaction of, the City up to and including the effective date of termination. All finished or unfinished work or documents procured or produced under the Agreement will become property of the City upon the termination date. In the event of Consultant’s failure to perform pursuant to the Agreement, and following

22.7 City of Santa Cruz Professional Services Agreement for Lighthouse Point Hazard Study March 12, 2026 (Form Rev.01/24 ) Page 4
expiration of any applicable cure periods set forth above 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 except for payment for services actually performed by Consultant and approved by City prior to such effective date. 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 reasonable 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 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.

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 http://www.cityofsantacruz.com/home/showdocument?id=59192.

SECTION 12: LEGAL ACTION/ATTORNEYS’ FEES
If any action at law or in equity is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees no greater than Consultant’s fee for professional services in addition to any other relief. The laws of the State of California, with jurisdiction in the Santa Cruz County Superior Court, shall

22.8 City of Santa Cruz Professional Services Agreement for Lighthouse Point Hazard Study March 12, 2026 (Form Rev.01/24 ) Page 5
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’srequest 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.

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

22.9 City of Santa Cruz Professional Services Agreement for Lighthouse Point Hazard Study March 12, 2026 (Form Rev.01/24 ) Page 6
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, Sections 1090 and 87100 of the Government Code, and the City’s conflict of interest code. Consultant will immediately advise City if Consultant learns of a conflicting financial interest of Consultant during the term of this Agreement.

8. City Property. The work, or any portion, of Consultant in performing this Agreement shall become the property of City. The Consultant may be permitted to retain copies of such work for information and reference in connection only with the provision of services for the City. If all fees for services performed to date are paid in full, 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. Unless otherwise provided herein, Consultant agrees that all copyrights which arise from creation of project-specific 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 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 this Section 8 or any other provisions of this Agreement, if Consultant prepares any deliverable under the Agreement using its (or any of its affiliates’) pre-existing intellectual property (“Consultant Pre-Existing IP”) or incorporates any Consultant Pre- Existing IP into any deliverable, City shall own the tangible deliverable, however, Consultant shall retain all rights, title and interests, including all intellectual property rights, to Consultant Pre-Existing IP; provided further however, that Consultant hereby grants to City a non-exclusive, royalty-free license to use such Consultant Pre-Existing IP for use by the City of any such deliverable in accordance with the terms of this Agreement.

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

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) caused by 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.

22.10 City of Santa Cruz Professional Services Agreement for Lighthouse Point Hazard Study March 12, 2026 (Form Rev.01/24 ) Page 7
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,

22.11 City of Santa Cruz Professional Services Agreement for Lighthouse Point Hazard Study March 12, 2026 (Form Rev.01/24 ) Page 8
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 with the applicable legal professional standard of care and shall comply 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.)

22.12 City of Santa Cruz Professional Services Agreement for Lighthouse Point Hazard Study March 12, 2026 (Form Rev.01/24 ) 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.cityofsantacruz.com/government/city-departments/public-works/stormwater/bestmanagement-practices

18. Dispute Resolution. The Parties agree to attempt in good faith to resolve through negotiation any dispute, claim or controversy arising out of or relating to this Agreement. Either party may initiate negotiations by providing written notice in letter form to the other party, setting forth the subject of the dispute and the relief requested.

Promptly upon such notification, the Parties shall meet at a mutually agreeable time and place in order to exchange relevant information and perspective, and to attempt to resolve the dispute. In the event that no resolution is achieved, and if, but only if, the parties mutually agree, then prior to pursuing formal legal action, the parties shall make a good faith effort to resolve the dispute by non-binding mediation or negotiations between representatives with decision-making power, who, to the extent possible, shall not have had substantive

22.13 City of Santa Cruz Professional Services Agreement for Lighthouse Point Hazard Study March 12, 2026 (Form Rev.01/24 ) Page 10
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:

City of Santa Cruz Public Works
Kevin Crossley
809 Center St. Rm 201
[email protected]
831 420 5164
To CONSULTANT:

Environmental Science Associates
Consultant Contact Name
575 Market Street, Suite 3700
San Francisco, CA 94105
Email/Phone

22.14 City of Santa Cruz Professional Services Agreement for Lighthouse Point Hazard Study March 12, 2026 (Form Rev.01/24 ) Page 11
Changes to the above information shall be given to the other party in writing 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]

22.15 City of Santa Cruz Professional Services Agreement for Lighthouse Point Hazard Study March 12, 2026 (Form Rev.01/24 ) Page 12
Approved As To Form:

By: _____________________________ Date: __________________ Office of the City Attorney

CITY OF SANTA CRUZ
By: _____________________________ Date: __________________ Matt Huffaker
City Manager

ENVIRONMENTAL SCIENCE ASSOCIATES
By: _____________________________ Date: __________________ Printed: ___________________________ Title: __________________ By: _____________________________ Date: __________________ Printed: ___________________________ Title: __________________ Technical Review By
By: ______________________________ Date: _________________ City Engineer

22.16 City of Santa Cruz Professional Services Agreement for Lighthouse Point Hazard Study March 12, 2026 (Form Rev.01/24 ) Page 13
EXHIBIT A: SCOPE OF WORK
See Attached

22.17 March 12, 2026 City of Santa Cruz 1
environmental science associates
Proposal
Lighthouse Point Hazard Study
Project Understanding
Recent erosion events at Lighthouse Point, located
on the west side of the City of Santa Cruz (City),
California, have raised concerns on the longevity of
blufftop development as well as potential impacts
to surfing resources at the Steamer Lane surf spot.

ESA will support the City to assess the hazards,
study the condition of existing caves and rock
formations surrounding Lighthouse Point, and
recommend options to protect, restore, and/or
relocate infrastructure along Lighthouse Point, in
compliance with the City’s Local Coastal Program
(LCP) as part of the City’s balanced approach to
coastal management.

There is particular interest in investigating the
potential for continued erosion to cause the existing
sea caves on either side of the point to connect and
ultimately create an arch, which local groups have
alleged could negatively impact the surfing
conditions at Steamer Lane. Erosion could also
impact the blufftop structures and infrastructure,
including the Lighthouse and museum and other
public amenities.

A study completed by Rogers Johnson & Associates
in 1984 assessed the geological and biological
conditions at the Lighthouse Point area, and
identified critically eroding areas and discussed
various options for dealing with the critical areas.

The 1984 study also discussed the potential impact
of the proposed actions on biological resources in
the sea cave located on the southwest side of the
point.

Project Approach
As requested, ESA will assist the City by conducting
a study of Lighthouse Point that updates and
contemporizes the 1984 study and also considers
the potential effects of proposed actions (as well as
”No Action”) on surfing conditions at Steamer Lane.

The updated study will inform the City’s next steps
and decisions related to further study, design, and
implementation of possible feasible actions.

The endpoint of this updated study is a report that
identifies and describes the following:
• The City’s goals and objectives for the project.
• Existing conditions of the project area,
including limited mapping of the sea caves
• A coarse projection of future erosion hazards
and failure pathways
• Potential remedial actions
• Preliminary potential impacts of remedial
actions on surfing resources
• Technical and project considerations to help
City decide on next steps for the project.

The study will develop concepts and initial
feasibility considerations for comparison of
alternatives. Following evaluation and
PREPARED FOR:

CITY OF SANTA CRUZ
MARCH 12, 2026
ESA CONTACT: LOUIS WHITE, PE, (650) 867-1907, [email protected]

22.18 Lighthouse Point Hazard Study
2 esassoc.com
considerations of alternatives, we anticipate the
following studies and/or analyses would likely be
needed as future tasks to advance the project:
• Preliminary design and development of realistic
opinion of probable construction costs.
• Detailed bathymetric mapping of the nearshore
project area.
• Detailed numerical modeling analysis of waves
and currents for additional assessment of
surfing conditions and other impacts
assessments,
• Geological and geotechnical study to refine the
anticipated bluff retreat and predictions of cave
collapse and to provide detailed geotechnical
recommendations to designs.
• Biological and cultural resources assessments,
and other studies to be determined.

Project Team
ESA has identified the following potential team of
experts to perform the proposed scope of work:

Team Member Role
ESA Coastal engineering;
Prime Contractor
Integral Surfing resources,
geomorphology, and
hydraulic modeling
Pacific Crest Engineering
(PCE)
Geological and
geotechnical engineering
For purposes of this proposal, we assume that ESA
would function as the prime consultant and would
subcontract services to the others listed in the table
above.

Scope of Services
ESA will perform a planning and coastal engineering
assessment for the Lighthouse Point Hazard Study.

ESA and team will characterize the existing
conditions, define project objectives, develop a
range of concept-level alternatives to address
erosion hazards, and will assess the potential
effects of the actions on surfing resources. Our
scope of services is described in more detail in the
following tasks.

Task 1 Project Initiation
ESA will initiate the project by completing the
following:
• Gather and review of readily available
background material, including prior studies of
the site and topic, current and ongoing relevant
studies, geological and geotechnical logs and
information.
• Project kickoff meeting with consultant team
and city staff, which would be virtual meeting
unless coordinated with the site
reconnaissance, in which case a meeting would
be held at a City conference room and followed
by site visit and reconnaissance (see Task 2).
• Establishing project goals and objectives. ESA
will work with the City to identify and refine its
project goals and objectives, which will frame
the work and guide direction of alternatives
development.

Task 1 Deliverables
• Meeting minutes from project kickoff
• Rough draft of project goal and objectives
Task 1 Assumptions
• Up to three (3) ESA staff plus representatives
from subconsultants would participate in the
kickoff meeting.
• ESA will provide calendar invitation with Zoom
link for kickoff meeting, or if in-person is
selected then City would locate a suitable
conference room to hold kickoff meeting,
assumed to be up to two (2) hours in duration.

Task 2 Field Data Workup
Under Task 2, the ESA team will conduct site
reconnaissance to gather information about the
project area and vicinity and assess topographic
survey data of Lighthouse Point collected previously
by PCE. This task includes the following:
• Site reconnaissance comprising one day in the
field at the project site to make observations,

22.19 Lighthouse Point Hazard Study
March 12, 2026 City of Santa Cruz 3
environmental science associates
notes, discuss the opportunities and
constraints with team members.
• Processing and assessment of topographic
survey of the Lighthouse Point study area using
data previously collected by PCE.

This task would result in development of a digital
terrain model (DTM) of the study area that is
suitable for developing and assessing site
conditions, hazards, and various alternative
treatments of the site. This data collection effort
does not include collection of new bathymetric data
of the nearshore. Using readily available public
data, we will attempt to stitch bathymetric data into
the DTM of uplands elevations within reasonable
effort.

Note that PCE performs drone-based surveys for
geomorphic interpretation but is not a licensed land
surveyor. ESA recommends that more detailed
bathymetric/topographic survey be accomplished
by a professional land surveyor as a future task.

Task 2 Deliverables
• Topographic map of study area in digital format
Task 3 Conditions Assessment
Under Task 3, the ESA team will assess the existing
conditions of the study area. This will comprise the
following:
• Bluff and sea cave assessment
− Review and interpretation of topographic
and bathymetric data processed under
Task 2 to assess thickness of terrace
deposit, location of Purisima (i.e., bedrock)
and other geological aspects.
− Estimate projected retreat lines for the top
of the bluff and sea caves under a no action
scenario.
− Research, review and interpretation of
available and relevant boring data, if
available.
− Observe the condition of the seawall on
north side of Lighthouse Point.
− Estimate of slope stability from the top of
the Purisima layer up to the ground surface
on top of the bluff.
− Consideration of how sea level rise would
affect the bluff retreat estimates.
• Metocean conditions and sea level rise
projections
− Gather tides and water level data from
publicly available sources, including new
Santa Cruz tide gauge.
− Waves and runup estimates using available
data and standard engineering methods
used on other projects completed for
and/or in coordination with City of Santa
Cruz.
− Summary of State of California sea level
rise projections and implications on future
wave runup elevations and bluff retreat.
− Review and interpret available modeling of
the project site by others (e.g., UC Santa
Cruz researches analyzing the wave
mechanics at Lighthouse Point), and
coordinate with them to potentially
provide data and output from the
modeling.
• Surfing conditions baseline
− Work with partner Surfline to obtain data
on surfing data attributes at the project site
from their cameras, which may include
number of surfers at a given time, numbers
and proportion of ridden waves, wave
statistics (e.g., peel angle, wave height,
wave period, etc.), general location of
surfing at a given time.
− Review and interpret data gathered and
obtained to develop a narrative and
graphical description of the baseline
surfing conditions that will serve as basis
for comparison of alternatives.
− Document user experience from
information provided by interested parties
with first-hand experience surfing at the
project site.

22.20 Lighthouse Point Hazard Study
4 esassoc.com
The conditions assessment will be summarized and
provided as initial sections of the project report. The focus of the existing conditions assessment portion
of the report will be to:
• Describe apparent hazards at the site, in
particular that affect public and surfing.
• Present and summarize existing coastal
hydrology / metocean conditions that are
important to the site, including the surfing
resources.
• Present understanding and metrics of the
baseline surfing condition at the project site
after consideration of available data, firsthand
knowledge of the waves and hydraulics, and
from input provided by interested parties.
• Develop recommendations for additional
studies that are prioritized with what should be
accomplished first.

Task 3 Deliverables
• Baseline Conditions Assessment, sections of
draft report
Task 3 Assumptions
• City to provide data, including boring logs,
geotechnical reports, user information
including number of users, etc., as available.
• The ESA team will use judgment in assessment
of surfing baseline conditions. We recognize the
subjective nature of surfing conditions and the
limited ability of available data to provide
detailed information that yields precise metrics
on surfing conditions.
• City will review the draft materials and provide
one set of written and collated comments. ESA
will respond to and address comments in
subsequent report deliverables.

Task 4 Alternatives Assessment
Under Task 4, the ESA team will develop and assess
potential alternatives that would address ongoing
erosion and the City’s goal and objectives for the
site. The ESA team will use its understanding of site
opportunities and constraints to identify potential
remedial actions, taking into consideration
obstacles and challenges to certain approaches.

The ESA team will build on prior work by Rogers
Johnson & Associates (1984) that considered a
range of interventions to stabilize and maintain the
bluff and sea caves.

Alternatives Development and
Evaluation
The ESA team will identify up to three or four
potential alternatives, including the no action
alternative, for which we will conduct a qualitative
triple-bottom-line assessment of the alternatives
that considers approximate construction cost,
potential environmental impacts and policy
alignment, and potential social impacts and
benefits. The alternatives evaluation will include an
assessment of the potential effects on surfing. We
will develop concepts to initial feasibility level only for comparison of alternatives. Each alternative will
include a brief written narrative and conceptual
graphics (e.g., simple plan view and typical section).

The ESA team will assess the effects of each
alternative on surfing resources using two
approaches:
• An initial assessment using primarily qualitative
approaches, including consideration of relative
reflectivity of alternative, likely change of bluff
and sea cave geometries and influence on wave
reflection and currents, and judgment based on
first-hand experience. As part of the initial
assessment, the ESA team will use standard
coastal engineering methods and resources
(e.g., Shore Protection Manual) to assess wave
reflection, diffraction, and wave-wave
interactions.
• A numerical modeling approach to assess
relative differences for selected coastal events.
(We present a description of the modeling
approach below).

Based on the assessment of surfing impacts from
the standard and numerical methods, we will
interpret the likely effects of the changes in waves
and currents to estimate how the surfing baseline
data from Surfline may change under different
scenarios.

22.21 Lighthouse Point Hazard Study
March 12, 2026 City of Santa Cruz 5
environmental science associates
Numerical Modeling of Waves and
Currents
The ESA team will use a numerical modeling
framework to simulate waves and currents at the
project site and to assess how they would change
under different management scenarios (e.g., no
action or other interventions). The goal of the
modeling would be to assess whether changes in
the geomorphology at the Lighthouse Point could
potentially affect surf quality along the entire set of breaks at Steamer Lane. For example, in the event
of a sea cave collapse, we would assess whether a
current flowing through the cave into the breaking
waves affects the wave take-off zones, wave quality,
and entrance to the surf site.

The modeling will use an existing SWAN model to
provide offshore wave boundary conditions and
couple it with an existing high-resolution XBeach 2D
phase-resolving simulations configured around
Lighthouse Point using selected storms or swell
events (e.g., January 2023 storm). The collapse of
the caves will be represented as a “hole” in the
topography through which a current will flow once
the model is running. The model is capable of
simulating wave-current interactions, through
which an initial surf quality assessment and
comparison with alternatives can be conducted.

We will evaluate with- and without-sea cave
collapse scenarios for representative swell
conditions (NW, W, S), and extract surf quality
metrics including peel angle, breaking location, and
ride length. The modeling can simulate the
potential for new currents through collapsed caves,
shifts in take-off zones, and changes to wave quality
across Steamer Lane, Middle Peak, and Indicators.

This approach provides both quantitative outputs
and visual simulations that can directly inform
stakeholders and decision-makers.

Coordination and Final Input
Prior to finalizing the alternatives analysis, the ESA
team will review the results with City staff in a
virtual meeting. Based on discussions with the City
we will incorporate the feedback into the final
alternatives assessment to be included in the
project report.

Task 4 Deliverables
• Slide deck presentation of alternatives
assessment, including alternatives
development and evaluation, including the
results of the qualitative triple-bottom-line
assessment, which will include an assessment
of the potential effects on surfing resources.
• Modeling memo summarizing the numerical
modeling setup, input and output files, and
application to the project.
• Graphical and descriptive information of
currents and waves, and how they change
under different swell events and under different
management scenarios.

Task 4 Assumptions
• Up to three (3) ESA staff and subconsultant(s)
will attend a virtual meeting to review the
alternatives assessment.
• City will provide verbal and written comments
on the analysis presented. We will respond to
and address comments in subsequent report
deliverables.
• Alternatives will not provide sufficient detail for
developing realistic opinion of probable
construction costs for the project, which would
require additional engineering and analyses
beyond the scope of the study.
• The numerical modeling would feed into Tasks
3 and 4, informing the conditions assessment
and the alternatives assessment.
• Up to two different wave events would be
simulated for the selected alternatives under
consideration. Additional wave events can be
simulated as add-on scope.

Task 5 Reporting
Under Task 5, the ESA team will prepare a final
report comprising the following sections:

22.22 Lighthouse Point Hazard Study
6 esassoc.com
• Project Setting, including baseline conditions
assessment
• Project goals and objectives
• Alternatives development and evaluation,
including a summary of a triple-bottom-line
assessment of each alternative as relates to
approximate construction cost, potential
environmental impacts, and potential social
impacts and benefits, including surfing
• The advantages, disadvantages, feasibility
considerations and future studies for each
alternative
• Recommended next steps
The final report will identify technical and project
considerations to help City decide on next steps for
the project.

Task 5 Deliverables
• Draft and final report in reproducible,
electronic format (e.g., PDF)
Task 5 Assumptions
• City will review the draft report and provide one
set of written comments. The ESA team will
respond to and address comments and submit
a final report within four (4) weeks of receipt of
comments.

Task 6 Project Coordination
This task includes project management throughout
the course of the project, including managing the
subconsultant team and tracking the schedule and
budget, and up to three community engagement
meetings.

We recommend having regular check-in meetings
with the City project manager to discuss the
progress of the work, milestones, schedules and
budget, and other issues. In development of this
scope and budget, we have assumed up to ten (10)
monthly meetings. ESA can update the number and
cadence of check-in meetings after discussion with
the City.

We understand that community engagement will be
led by the City in partnership with Farallon
Strategies. ESA will support the community
engagement process by completing the following:
• Attending planning sessions with the
community engagement team
• Contributing technical content to the
engagement process
• Attending community engagement meetings,
which will occur approximately at the following
touch points:
− Meeting 1: Goal and objectives, baseline
conditions, opportunities and constraints,
alternatives development and evaluation
criteria, preferred alternative to consider
further
− Meeting 2: Post assessment of preferred
approach
− Meeting 3 (if desired): Presentation to City
Council
Task 6 Deliverables
• Monthly invoices and progress reports
• Schedule updates
• Slide decks and technical content for
community engagement meetings
Task 6 Assumptions
• Up to two (2) ESA staff will attend up to ten (10)
one-hour long virtual check-in meetings held
monthly.
• Up to three (3) ESA staff will attend the
community engagement meetings, as well as
selected team members as needed.
• ESA will attend up to one 1-hour meeting ahead
of each community engagement meeting.

22.23 Lighthouse Point Hazard Study
March 12, 2026 City of Santa Cruz 7
environmental science associates
Budget
The attached Table 1 provides ESA’s estimated
budget for each of the tasks described above. As it is
difficult to estimate the level of effort required for
this scope, we recommend compensation on a time
and materials basis, not to exceed the total
estimated budget of $387,032 without prior
authorization. Please note that actual distribution
of charges will differ from the estimate provided in
Table 1.

ESA will invoice monthly for actual time and
materials according to our standard rate schedule
in effect at the time the work is performed. We have
attached a provisional rate schedule for work that
we anticipate will be performed in 2026 (Exhibit B).

Schedule
We anticipate that the work described can be
completed in approximately ten (10) months. ESA
will develop a detailed project schedule and
workplan during the project initiation phase or as
requested by the City. Please note that significant
delays in the project schedule could affect our
ability to perform the work within the budget
presented herein.

22.24 Integral Pacific Crest
Engineering
Task # Task Name/Description Total ($) Amount Total ($) Amount 1 Project Initiation 52 $ 14,078 $ 2,300 $ 1,150 $ 3,450 $ - $ 17,528 2 Field Data Workup 114 $ 26,691 $ 2,300 $ - $ 2,300 $ 1,230 $ 30,221 3 Conditions Assessment 138 $ 34,501 $ 11,500 $ 36,800 $ 48,300 $ 22,770 $ 105,571 4 Alternatives Assessment 248 $ 60,844 $ 77,050 $ 11,500 $ 88,550 $ - $ 149,394 5 Reporting 120 $ 28,457 $ 6,900 $ - $ 6,900 $ - $ 35,357 6 Project Coordination 138 $ 37,461 $ 9,200 $ 2,300 $ 11,500 $ - $ 48,961 Total Hours 810
Total ($) Amount $ 202,032 $ 109,250 $ 51,750 $ 161,000 $ 24,000 $ 387,032 ESA Labor Amount $202,032
ESA Non-Labor Expenses
Reimbursable Expenses (see Attachment A) $24,000
Subtotal ESA Non-Labor Expenses $24,000
Subconsultant Costs $161,000
PROJECT TOTAL $387,032
ESA Total
Hours
Total ESA Labor
Cost
Total
Subconsultant
($ Amount)

ESA LABOR COST SUBCONSULTANT & EXPENSES
TOTAL

PROJECT
COST
Project Name Here
Table 1. Estimated Budget by Task and Team Member
Total Expense
($) Amount

PROJECT COST ESTIMATE SUMMARY TABLE
Confidential 22.25
Attachment A
Cost Proposal: ESA Non-Labor Expenses Summary
$ 400
$ 220
$ 250
$ 200
$ 19,800
Subtotal Reimbursable Expenses $ 20,870
15% Fee on Reimbursable Expenses $ 3,130
Total Reimbursable Expenses $ 24,000
Total Equipment Usage Costs $ -
TOTAL NON-LABOR EXPENSES $ 24,000
Reimbursable Expenses
Project Supplies
Other Travel Related
Mileage
Airfare
Surfline Camera Data
Confidential 22.26
City of Santa Cruz Professional Services Agreement for Lighthouse Point Hazard Study March 12, 2026 (Form Rev.01/24 ) Page 14
EXHIBIT B: FEE SCHEDULE
See Attached

22.27 1

EXHIBIT B
Environmental Science Associates &
Subsidiaries: 2026 Schedule of Fees
I. Personnel Category Rates
Charges will be made at the Category hourly rates set forth below for time spent on project management, consultation or meetings related to the project, field work, report preparation and review, travel time, etc. Time spent on projects in litigation, in depositions and providing expert testimony will be charged at the Category rate times 1.5.

LABOR CATEGORY BILLING
STEP I

BILLING

STEP II

BILLING

STEP III

BILLING

STEP IV

BILLING
STEP V

BILLING

STEP VI
Senior Principal
Consultant
$261 $288 $317 $347 $379 $409
Principal Consultant $222 $253 $282 $311 $341 $370
Managing Consultant $205 $228 $253 $277 $301 $324
Senior Consultant $171 $189 $212 $234 $257 $279
Associate Consultant $154 $170 $184 $198 $213 $228
Consultant $116 $130 $144 $160 $173 $188
Project Technician $86 $109 $131 $150 $170 $194
(a) The range of rates shown for each staff category reflects ESA staff qualifications, expertise and experience levels. These rate ranges allow our project managers to assemble the best project teams to meet the unique project requirements and client expectations for each opportunity. (b) From time to time, ESA retains outside professional and technical labor on a temporary basis to meet peak workload demands. Such contract labor may be charged at regular Employee Category rates.
(c) ESA reserves the right to revise the Personnel Category Rates periodically to reflect changes in its operating costs.

II. ESA Expenses
A. Travel Expenses

1. Transportation
a. Company vehicle – fixed rate + fee for mileage in excess of 100 miles. b. Common carrier or car rental – actual expense multiplied by 1.15 c. If company vehicle is to be used in off-road conditions, a daily $15 use fee will be added to the standard daily vehicle rate.

2. Lodging, meals and related travel expenses – direct expenses multiplied by 1.15

22.28 ESA 2026 Schedule of Fees
2 B. Technology and Data Management Fee
Starting January 2023, ESA implemented a 3% Technology and Data Management fee on all applicable contracts, excluding charges related to equipment rentals, reimbursable expenses, and subcontractor fees.

This fee plays a pivotal role in mitigating an array of technology and data management expenditures incurred by ESA to ensure the delivery of the comprehensive and high-quality services our clients expect. These expenses include, but are not limited to:
• Long-Term Data Retention and Security Administration: Covering the expenses associated with administering the protection of client data and assets throughout and beyond the contractual period. • Development and Maintenance of Internal ESA Software Tools: Accounting for the ongoing investments required to create and maintain tools integral to our client engagements. • Data Privacy and Security Maintenance: Encompassing the costs involved in maintaining data privacy and security, including regular security audits to uphold the highest standards. • Advanced Technology-Related Costs: Addressing the escalating expenses associated with subscriptions for cutting-edge technical software, licenses, and cloud data services.

This fee structure enables ESA to uphold its commitment to providing clients with top-tier services while managing the ever-evolving demands of technology and data management in the work that we do.

C. Cloud-based Services

ITEM RATE/HOUR RATE/DAY RATE/WEEK RATE/MONTH
Cloud-based Services
Nearmap High Resolution Images $55/image
ArcGIS Online Hosting (Web Maps/Apps) $225
Website Hosting $200
Custom Application & Services Hosting* $300*
Modeling (GeoHECRAS, TUFLOW, Delft3D) + Drone
Processing
$7 $160 $950 $3,900
Aviation Environmental Design Tool (AEDT) Processing $13 $190 $1,120 $4,600 *includes support for database, SSL, IT support – costs vary by project. Contact software development services for firm pricing.

D. Printing/Reproduction Rates
If a weekly or monthly rate is not provided, equipment usage is billed at a daily rate.

ITEM RATE/PAGE SAMPLE PRICING
Black & White – 8.5 x 11 $0.15
Black & White – 11 x 17 $0.30
Color – 8.5 x 11 $0.50
Color – 11 x 17 $0.80
B&W – Plotter (Toner – ECO Quality) $0.50/sf 24x36 B/W CAD drawing would cost $3 per sheet
B&W – Plotter (Toner – Presentation
Quality)
$1.25/sf 24x36 B/W CAD drawing would
cost $7.50 per sheet
Color – Plotter (Inkjet – ECO Quality) $2.50/sf 24x36 Color Drawing would cost $15 per sheet
Color – Plotter (Inkjet – Presentation
Quality)
$5.00/sf 24x36 Color Drawing would cost
$30 per sheet
CD $10.00
Digital Photography $20.00 (up to 50 images)
All Other Items
(including bindings and covers)
At cost plus 10%

22.29 ESA 2024 Schedule of Fees
3 E. Equipment Rates

ITEM RATE/DAY RATE/WEEK RATE/MONTH
Project Specific Equipment:

Vehicles – Standard size (no off-road usage) $ 115a $ 550a Vehicles – 4x4 /Truck (light duty) 175a
Vehicles – 4x4 /Truck (heavy duty) 200a
Vehicles – ATV 175
Noise Meter 115
Hydroacoustic Noise Monitoring Equipment 175
Satellite Phone 15 70 250
Electrofisher 350 1,750
Field Traps 50
Digital Hypsometer (Nikon) 25
Backpack Sprayer 30
360-Degree 4k Camera 35 175
High Resolution Time-Lapse Camera 20 100 350
Beach Seine 60
Block Net 30
PIT Tagging Kit 25
Underwater Light Meter 500
Otter Trawl 115
Wildlife Acoustics Bat Detector 125 400
Wildlife Trail Camera 30 100
Fiber Optic Endoscope 150 750
Spotting Scope 50 200
Sand Transport Station 460
Wind Monitoring Station 1540
Personal Protective Equipment (PPE) 25
Photo and Video Production Equipment:

Mirrorless Camera + Lens + SD Card 220 550 2000
Tripod + Camera Case 50 175 500
Lighting Equipment 20 75 250
Shotgun Microphone Kit 15 50 180
2 Person Microphone Kit 10 25 85
Topographic/Bathymetric Survey Equipment:

Total Station 300
UAV/Drone 300 1,500
RTK-GPS 300
RTK-GPS Smartnet Subscription 80
Hypack Survey Software 150
Laser/Auto Level 50
Single-Beam Echoshounder 175 600
Sidescan Sonar 200
Sound Velocity Profiler 75
1m GNSS Data Collection System 90 425 1,700
Sub-meter GNSS Data Collection System 120
Sub-foot Data Collection System 245
Garmin GPS or equivalent 45
Hydrologic Data Collection, Water Current, Level and Wave Measurement Equipment:

ISCO 2150 Area Velocity Flow Logger $ 50 $ 300 $ 800
SonTek IQ-Plus Area Velocity Flow Logger 100 500 1,500
Logging Rain Gage 10 50 200
Hand-Held Current Meter 50
Surface Velocity Radar 50
Wave Pressure Sensor 115 460
Wave Buoy 175 700
Sonic Wave Sensor 35 175 500
Logging Water Level - Pressure Transducer 125
Logging Barometric Pressure Logger 60
Well Probe / Water Level Meter 25
Bottom-Mounted Tripod / Mooring 30 150 400

22.30 ESA 2026 Schedule of Fees
4 ITEM RATE/DAY RATE/WEEK RATE/MONTH
Stormwater Crest Sampler 20
ADCP Riverboard 700
Radar Wave Sensor with Logger Box 150 300 1000
Water Quality Equipment:

Logging Turbidimeter/Water Level Recorder $ $ $ 400
Logging Conductivity/Water Level Recorder 250
Remote Monitoring Logger Box 75 250
Recording Conductivity Meter w/Datalogger 20 60 200
Hand-Held Turbidimeter 50 200
Hand-Held Salinity Meter or pH meter 35
Logging Salinity Gauge 150
Logging DO/Temp Probe 150
Logging Water Quality Sonde 1 Sensor 50 200 700
Logging Water Quality Sonde 2 Sensor 65 250 800
Logging Water Quality Sonde 3 Sensor 75 300 900
Logging Water Quality Sonde 4 Sensor 90 350 1,000
Telemetry System Hardware 125
Water Quality Multi-Probe Depth Profiler 200
Niskin Water Sampler 50
ISCO 6712 Portable Sampler w/ISCO 2105 Module 60 350 900 Sedimentation / Geotechnical Equipment:

Peat Corer $ 85
60lb Helly-Smith Bedload Sampler 200
Mini-Ponar Grab Sampler 50
DH-76 Suspended Sediment Sampler 100
D-96 Suspended Sediment Sampler 200
Bridge Crane 150
RSET 50
AMS Soil Sampling Kit 50
Hand-Held Helley-Smith Bedload Sampler 30
Guelph Permeameter 60
Sludge Sampler 60
Shear Strength Vane 60
Handheld DH-48 Suspended Sediment Sampler 30
Boats:

Small Watercraft $ 100 $ 400
15’-17’ Boat 375 1,500
18’-21’ Boat 450 2,000
22’-25’ Boat 550 2,250
Houseboat Floating Laboratory 4,500
a Actual project charges will include the daily rate plus $0.75 per beyond 100 miles III. Subcontracts
Subcontract services will be invoiced at cost multiplied by 1.15.

IV. Other
The fees above do not include sales tax. Any applicable or potential sales tax will be charged when appropriate.

V. Payment Terms
Unless otherwise agreed in writing, ESA will submit invoices on a monthly basis. Any unpaid balances shall draw interest at one and one half percent (1.5%) per month or the highest rate allowed by law, whichever is lower, commencing thirty (30) days after date of invoice. All invoices not contested in writing within fifteen (15) business days of receipt are deemed accepted by Client as true and accurate and Client thereafter waives any objection to Clients invoices, which are payable in full.

22.31 City of Santa Cruz Professional Services Agreement for Lighthouse Point Hazard Study March 12, 2026 (Form Rev.01/24 ) Page 15
EXHIBIT C: WORK SCHEDULE
Described in Proposal

22.32 City of Santa Cruz Professional Services Agreement for Lighthouse Point Hazard Study March 12, 2026 (Form Rev.01/24 ) Page 16
EXHIBIT D: INSURANCE REQUIREMENTS
Consultant shall procure and maintain insurance against claims for injuries to persons or damages to property and otherwise which may arise from or in connection with the performance of the work under this Agreement and the results of that work by Consultant, its agents, representatives, employees, or subcontractors.

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

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

Coverage will be at least as broad as:
• COMMERCIAL GENERAL LIABILITY (CGL): $1,000,000 PER OCCURRENCE; $2,000,000 AGGREGATE Proof of coverage for $1 Million per occurrence and $2 Million in the aggregate including products and completed operations, property damage, bodily injury, personal and advertising injury will be provided on Insurance Services Office (ISO) Form CG 00 01 covering CGL. • PROFESSIONAL LIABILITY (ERRORS AND OMISSIONS): $2,000,000 PER OCCURRENCE OR CLAIM, $2,000,000 AGGREGATE.

Consultant will maintain insurance appropriate to Consultant’s profession; with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after date of completion of the services under this Agreement. If coverage is canceled or non-renewed and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date or start of work date, Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of the contract of work.
• AUTOMOBILE LIABILITY:

Proof of coverage for $1,000,000 provided on ISO Form Number CA 00 01 covering any auto (Code 1), or if Consultant has no owned autos, hired, (Code 8) and non-owned autos (Code 9), per accident for bodily injury and property damage.
• 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.

22.33 City of Santa Cruz Professional Services Agreement for Lighthouse Point Hazard Study March 12, 2026 (Form Rev.01/24 ) Page 17
The Worker’s Compensation policy must be endorsed with a waiver of subrogation in favor of the City for all work performed by the Consultant and its employees. (Not required if Consultant provides written verification it has no employees) - If Consultant has no employees, Consultant shall complete and sign a Workers’ Compensation Exemption Declaration and Release of Liability.

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 [ADD OPTIONAL: ,CPL, and automobile insurance (if transporting hazardous materials)] policy(ies) with respect to liability arising out of work or operations performed by or on behalf of Consultant including materials, parts, or equipment furnished in connection with such work or operations, products and completed operations. General liability coverage will be provided in the form of an endorsement to Consultant’s insurance at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 (if a later edition is used). o PRIMARY COVERAGE
For any claims related to this Agreement, Consultant’s and all subcontractor’s insurance coverage will be primary and non-contributory as respects the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents, or volunteers will be excess of Consultant’s and all subcontractor’s insurance and will not contribute with it.
• NOTICE OF CANCELLATION
Each insurance policy required above shall state that the coverage shall not be canceled, except with notice to the City.
• WAIVER OF SUBROGATION
Consultant hereby grants to the City a waiver of any right to subrogation, except as otherwise not applicable, which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss, including attorney’s fees under such insurance. Consultant agrees to obtain any endorsement that may be necessary to effectuate this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. • EXCESS LIABILITY/UMBRELLA INSURANCE POLICIES
Consultant may use excess liability/umbrella policies to meet the required liability limits on the condition that they provide all of the insurance coverages required herein, including, but not limited to, primary and non-contributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements. The excess liability/umbrella insurance policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying CGL insurance. No insurance policies maintained by the additional insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Consultant’s primary and excess liability policies are exhausted. • 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.

22.34 City of Santa Cruz Professional Services Agreement for Lighthouse Point Hazard Study March 12, 2026 (Form Rev.01/24 ) Page 18
• SELF-INSURED RETENTIONS (SIR)
Self-insured retentions must be declared to and approved by the City. City may require Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related expenses.

The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.
• ACCEPTABILITY OF INSURERS
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A: VII, unless otherwise acceptable to the City.
• CLAIMS MADE POLICIES
If any of the required policies provide coverage on a claims-made basis:

1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained, and evidence of insurance must be provided, for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work. • VERIFICATION OF COVERAGE
Consultant will furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy (and CPL, automobile and any Excess Liability/Umbrella policies, as applicable) listing all policy endorsements to be approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning will not waive the Consultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

C. 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).

D. 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.

22.35 Lighthouse Point Study
Update
Santa Cruz City Council
March 24, 2026

22.36 Erosion and Caves are Well Documented

22.37 Resurveyed January 2026
• The two sea caves are
separated by approximately 20
feet of bedrock.
• The sea caves are about 40
feet away from the lighthouse.
• Sea caves do not
pose immediate risk to
Lighthouse, paths or other
infrastructure.

22.38 22.39
Lighthouse Point Hazard Study
• Purpose: Evaluate coastal hazards and
safety risks.
• Focus on bluff failure, erosion, and sea
cave dynamics.
• Support near-term risk reduction and
long-term planning.
• Build on prior coastal studies and data.

Looking out of the West Cave - Courtesy of Kim Stoner

22.40 Scope of Work
Compile and review existing studies and data.

Conduct field data collection and surveys.

Assess current conditions and hazard risks.

Alternatives Assessment: Model erosion, wave dynamics, and evaluate potential impacts to infrastructure and surf resources.

Final Report: Final recommendations, additional studies and next steps.

22.41 Outcomes
• Develop and assess
potential mitigation alternatives.
• Identify advantages,
constraints, and feasibility.
• Support community
engagement and planning efforts.
• Provide technical basis for
coastal resilience actions.
• Inform City decision-making
and future projects.

22.42 Recommendation
Motion to award a contract to Environmental Science and Associates (San Francisco, CA) for the Lighthouse Point Hazard and Engineering Analysis in the amount of $387,032.

22.43 City Council

AGENDA REPORT
DATE: 03/19/2026
AGENDA OF: 03/24/2026
DEPARTMENT: Community Development
SUBJECT: Discussion of Potential Approaches to City Council Direction on Objective Design Standards, Expanding the Concept of the Downtown Density Bonus, and Regulations for the Removal of Heritage Trees (CD) LOCATION: Citywide
RECOMMENDATION: Motion to direct staff to:
1) Proceed with the proposed direction for the Design Guidelines & Priorities Handout; 2) Further develop the handout through engagement with design professionals and the community; 3) Return to Council in Fall 2026 for Council’s priority setting, coupled with incentives for complying with the Council’s priorities;
4) Not further explore the feasibility of expanding the Downtown Density Bonus concept to other areas of the City;
5) Explore an alternative to expanding the Downtown Density Bonus concept through incentives associated with the Design Guidelines & Priorities Handout that achieve similar City Council goals related to the Downtown Density Bonus expansion concept; and 6) Prepare draft updates to heritage tree regulations for housing development projects and direct staff to return to Council with a proposed ordinance in Fall 2026.

BACKGROUND:

Objective Design Standards and Design Standards Toolkit Council Direction Objective design standards for multifamily housing seek to set clear expectations for how new housing should look, feel, and function. Per state law, only objective standards can be used to review multifamily housing development applications.

In 2019, Senate Bill 330 (Skinner) established the Housing Crisis Act of 2019, and in 2021, Senate Bill 8 (Skinner) further strengthened and extended the sunset date of SB 330 from January 1, 2025 to January 1, 2030. The 2025 budget trailer bill, AB 130, further extended various provisions of the Housing Crisis Act in perpetuity. These laws were passed to address

23.1 California’s housing crisis by increasing residential development, protecting existing housing inventory, and expediting the permitting process. The Housing Accountability Act prohibits cities and counties from denying a housing development project or reducing its density based on a subjective design standard. Per State law, a housing development project can only be reviewed using “objective, quantifiable, written development standards, conditions and policies,” and can only be denied if certain findings described in Government Code §65589.5(j) are met. “Objective standards” involve no personal or subjective judgment by a public official, are uniformly verifiable by reference to an external and uniform benchmark or criterion available and are knowable by both the development applicant and the public official (Government Code §66300(a)(7).) These changes in law are noted in the Housing Development and Recent State Law Changes attachment.

After an extensive series of community engagement efforts in 2021 and 2022, the City of Santa Cruz (City) adopted Objective Design Standards for Multifamily Housing on November 15, 2022. The standards cover topics like the design of ground floors, walking paths, parking, landscaping, open space, the shapes of roofs and facades, building materials, and lighting for all new multifamily housing development outside the Downtown. The standards adopted in 2022 also included changes to the municipal code sections on transportation studies, traffic control devices, and sidewalk, bicycle, and transit facilities.

The City’s 2023-2031 Housing Element Objective 1.2b directs the City to maintain and review the standards on a regular schedule after adoption and consider updating them as needed. Staff brought forward updates to the Objective Standards in May 2025 and those were approved by the City Council. Concurrently, in May 2025, staff received further direction from the City Council during the approval of the Downtown Plan Expansion to develop an “objective design standards toolkit” that helps make the standards more accessible to developers and members of the public and that can be updated in response to evolving community perspectives.

Expanding the Downtown Density Bonus Citywide
As part of the Downtown Plan Expansion approved by City Council on May 13, 2025, the City adopted the Downtown Density Bonus. This density bonus, applicable specifically to the South of Laurel Area, was designed to compete with the State Density Bonus by offering incentives to developers such as an unlimited Floor Area Ratio (FAR, which is a measure of the built square footage divided by the square footage of the site) in exchange for complying with certain design standards, such as keeping buildings below the height of 85 feet. Development choosing this route would also be subject to an Architecture Review Committee (ARC) to help promote highquality project designs.

On May 13, 2025, following the approval of the Downtown Plan Expansion, the City Council directed staff to develop a proposal to evaluate the expansion of the Downtown Density Bonus citywide, including leveraging the ARC, outside of the Downtown Plan Expansion area.

In response to City Council direction, staff undertook an initial exploration of the feasibility and attractiveness of an expanded density bonus through research and analysis, conversations with the Housing Subcommittee, and engagement with the development community. This assessment is included below in the Discussion section.

Objective Design Standards for Heritage Tree Removals

23.2 Heritage tree removal requirements are currently governed by the City’s heritage tree ordinance and related implementing resolutions. When a development proposal requests a heritage tree removal permit, the City’s current regulations allow approval under specific circumstances, including if the tree is in poor health, if it is damaging property, or if a site plan cannot be redesigned to accommodate the tree. This third circumstance regarding redesign is a subjective standard. In the past, this has provided an avenue for the City and applicant to negotiate alternative project designs that sometimes resulted in retention of existing heritage trees.

However, state law has since limited the City’s review authority to the application of objective standards on housing development projects of two or more units and prohibits the City from denying a permit based on subjective standards or applying new objective standards that would either decrease the residential density from that allowed under the General Plan or otherwise make a project infeasible.

On August 12, 2025, upon hearing an appeal of a heritage tree removal permit associated with a development application at 2020 North Pacific Avenue, the City Council directed staff to consider City Council and community feedback from that item and related items and review options for proposed revisions to the heritage tree removal requirements that promote the City’s environmental values while taking into account state laws that now affect the City’s review of multi-family development proposals. The direction further requested an analysis of creating objective standards for heritage tree removals and clarification of the processes related to heritage tree removals.

DISCUSSION: In response to the aforementioned City Council direction and State law changes, staff propose the following recommendations:

1. Develop a Design Guidelines & Priorities Handout to be readily available to the development community and the public that includes design guidelines and sets forth City Council priorities for multifamily housing.
a. Further engage with design professionals and community members to continue developing the handout (Summer 2026).
b. Set City Council priorities for design guidelines and consider incentives to encourage adoption of design guidelines and priorities (Fall 2026).

2. Do not pursue further exploration of expanding the Downtown Density Bonus concept to other parts of the City based on initial developer feedback and staff analysis.

3. Explore an alternative to expanding the Downtown Density Bonus concept through incentives associated with the Design Guidelines & Priorities Handout that achieve similar City Council goals.

4. Prepare objective design standards and incentives that regulate heritage tree removal, conduct community outreach, present the draft to the Planning Commission for a recommendation, and return to the City Council for a decision (Fall 2026).

Following City Council direction in May 2025, staff conducted numerous discussions with the Housing Subcommittee on the topics addressed in this agenda report. The approaches of developing voluntary design guidelines, potential incentives and requirements of an expanded Downtown Density Bonus, and requirements for the removal of heritage trees were crafted in coordination with Subcommittee members.

In February 2026, staff conducted a developer roundtable event that was attended by nine development community members from Swenson Development and Construction, William Kempf Architecture, Montalvo Homes & Estates, Eadie Consultants, Workbench, Novin

23.3 Development Corp, and Eden Housing. This event was organized following consultation with the Housing Subcommittee. During the roundtable, staff facilitated a discussion about the Design Guidelines & Priorities Handout approach, the expansion of the Downtown Density Bonus concept to other areas of the City, and regulations for the removal of heritage trees. Feedback on these items has been included in this agenda report.

Design Guidelines and Priorities Handout
In response to City Council direction, staff recommend conducting additional outreach and developing a Design Guidelines & Priorities Handout detailed further below and attached here in draft form.

Under the State of California’s Density Bonus Law (DBL) (Government Code §§65915 - 65918), developers may exceed density limits set forth by a local government’s General Plan in exchange for providing units at below-market-rate. Providing a higher number of below-marketrate units at steeper levels of affordability grants greater density. The State DBL also provides three provisions that require local governments to grant qualifying projects: 1) incentives that provide cost reductions, 2) waivers of development standards that inhibit the development of a project at the density allowed, and 3) reductions in parking requirements.

In 2023, Senate Bill 713 (Padilla) amended Government Code § 65915 to further strengthen the State’s DBL to clarify that it preempts any locally adopted development standards, even if those standards were enacted by voter initiative or referendum.

In response to the use of State DBL to preempt local standards, several jurisdictions in California have adopted voluntary “design guidelines” to supplement their objective design or development standards. Voluntary design guidelines are non-binding principles and recommendations that cities can adopt to communicate the design values of their communities and guide the design of development projects. These guidelines aim to convey community aspirations for what the built environment of a city might look and feel like. Such guidelines are discretionary recommendations developed by architects, landscape architects, urban designers, and city planners. They are not codified, and their use in projects is entirely voluntary.

Fremont, Oakland, Palo Alto, and San Jose, as well as Alameda and Santa Cruz Counties, have voluntary design guidelines in place in addition to objective design standards to better convey design intent and guide development. The County of Santa Cruz states the purpose of its design guidelines as “crafted to ensure that development projects are attractive, functional, contextsensitive, and in alignment with community goals and objectives.” Design guidelines are accessible, public-facing documents that exist outside of the Municipal Code.

Over the last several months, the Current Planning Team at the City has been implementing a similar strategy. Staff have been using an architectural examples handout to aid in conversations with the development community about building design and architectural style. The handout includes photos of encouraged and discouraged architectural examples and is intended to promote architectural variety and inspire creativity in development proposals, in response to some community members’ concern that many new developments in the City look similar. It has facilitated productive dialogue between staff and the development community and, in the limited cases that it has been used, staff have received positive feedback from developers by providing clear guidance.

23.4 Considering City Council direction to create an objective design standards toolkit, the reality that the State DBL allows for the waiver of objective design standards (either through waivers or incentives/concessions), the precedent set by other jurisdictions to utilize voluntary design guidelines, and the recent use of the City’s architectural examples handout, staff propose the development of a comprehensive Design Guidelines & Priorities Handout. This handout would be readily available to the development and design community, as well as to members of the public. It can serve as a reference at the very earliest stages of project development, when it is easier for recommendations to be implemented. Staff propose that the handout be a living document that can be updated periodically with industry professional and community input and latest best practices. The proposed Design Guidelines & Priorities Handout attached in this agenda report builds on the City’s existing architectural examples handout recently in use by the Current Planning Division.

The Objective Design Standards for Multifamily Housing adopted by the City on November 15, 2022, were informed by an extensive series of community engagement efforts in 2021 and 2022.

Key themes from the Summer 2021 Defining Community Character survey included support for taller buildings, support for decreased restaurant parking, desire for active ground floors and spaces, preference for architectural freedom and variety, and support for making housing more feasible. The proposed Design Guidelines & Priorities Handout showcases development projects that are high-quality examples of multifamily projects at higher densities and that represent diverse architectural styles. As such, it includes the following four elements:
 Design guidelines based on available best practices, industry professional expertise, and community input (not yet developed).
 Key City Council priorities for new multifamily development (not yet developed).  Encouraged architectural examples from the City of Santa Cruz, analogous coastal cities in California, and other cities to inspire architectural creativity and diversity in new development (in initial draft form).
 Discouraged architectural examples to communicate design typologies that have received poorer reception in Santa Cruz (in initial draft form).

In developing the handout, staff consulted other jurisdictions with design guidelines in place to better understand the implementation process and how readily such guidelines are being adopted by the development community. Jurisdictions expressed that some development applicants are reluctant to comply with design guidelines or even any standards that cannot be enforced. In response to potential reluctance to adopt design guidelines, staff recommend encouraging compliance through incentives such as expedited plan review and/or ministerial approval (meaning that if objective standards are met, then the project is approved with no discretion allowed) for development applications that comply with a minimum number of design guidelines and/or priorities. Such incentives are coupled with the proposed alternative approach to exploring the Downtown Density Bonus discussed in the corresponding section of this report.

Following discussions with the City’s Housing Subcommittee, staff conducted a developer roundtable event in February 2026 to gauge interest among the development community in following voluntary design guidelines. Developers expressed that it is paramount that design guidelines are available for review early in the design process. They also noted that receiving incentives for following design guidelines would further encourage their adoption.

Following input from neighboring jurisdictions and the development community, staff recommend that the City Council direct staff to explore incentives for housing development

23.5 projects that adhere to the City’s design guidelines and priorities, in order to strengthen the effectiveness and influence of those guidelines and priorities on development in Santa Cruz.

If the Design Guidelines & Priorities Handout approach is supported by the City Council, staff recommend conducting additional outreach to engage design professionals (architects, landscape architects, and urban designers) and community members to solicit input on updates they would recommend and priorities they would like added to or subtracted from the draft handout.

Additionally, staff propose returning to the City Council in Fall 2026 with an updated Design Guidelines & Priorities Handout for review and design priority setting.

The concept of the City Council priority setting could provide a powerful way for the City Council’s priorities to be incorporated into future development proposals. The ability to shape a project decreases as time progresses and as more design details are developed, so the most effective time to influence a project is in the early stages of design. Staff recommend that the City Council consider the feedback from design professionals and community members and then identify a limited number of priorities that the City Council would like to see incorporated into projects. This would give developers a sense of what is most important to the City Council before they even begin their conceptual designs, and it increases the likelihood that those design features will be incorporated into the projects. Of course, because developers have significant flexibility in how they design their projects with little to no discretion for the City Council to alter those designs, particularly with nearly every large project in Santa Cruz using the State DBL and its accompanying waivers and concessions/incentives, having known City Council priorities does not guarantee that they will be incorporated. Thus, should the City Council pursue this approach, staff would ultimately work with design professionals and community members to recommend options that the City Council can consider that would balance economic realities with community desires.

Exploring the Expansion of the Downtown Density Bonus Concept Following the adoption of the Downtown Expansion Plan and Downtown Density Bonus in May 2025, the City Council directed staff to explore the feasibility of expanding the Downtown Density Bonus to other parts of the city. As described in the background section of this report, the Downtown Density Bonus was designed specifically to compete with the State DBL in the South of Laurel Area by offering unlimited FAR for housing development projects that adhere to development regulations, such as a maximum height of 85 feet.

Following City Council direction, staff undertook a preliminary exploration of expanding the Downtown Density Bonus. A key part of this exploration included discussions with the Housing Subcommittee on the intent of an expanded density bonus and the multifamily development priorities in the areas outside of the downtown. In response to feedback received through these discussions, Subcommittee members were most interested in whether an expanded density bonus to other areas of the City would be able to regulate building heights and rear property line setbacks in exchange for other incentives.

In order for such a density bonus to be successful, it must outcompete the State DBL, which currently allows for up to 100 percent increase in additional density without regulations imposed on building height or rear property line setbacks, and it allows for a very broad range of deviation from other development standards in exchange for below-market-rate units.

Considering these requirements, limited levers can be used to compete with the State DBL. Staff developed theoretical incentives for complying with an expanded density bonus, as follows:

23.6  A modified inclusionary housing requirement (for example, 20% of total units in a development project provided at 110% Area Median Income (AMI), as opposed to the City’s current inclusionary housing requirement of 20% of base units (not including State DBL units) provided at 80% AMI).
 The option to provide affordable housing required by the inclusionary housing ordinance off-site, within a specified geographic area.

In assessing feasibility, staff posed the potential incentives and required development regulations at the developer roundtable. The development community expressed concerns that a modified inclusionary affordable housing requirement, even at a higher AMI of 110 percent or similar, would not provide sufficient incentive for developers to choose a City density bonus over the State DBL, given the additional constraints on development (height limits and rear property line setbacks). Developers noted that lot sizes along the corridors are constrained in width and depth, further restricting development opportunities when combined with development regulations associated with the contemplated City Density Bonus. Overall, developers emphasized that limited height and required rear properly line setbacks, are too high a cost in exchange for a modified inclusionary housing requirement, given current economic conditions and the attractiveness of the State DBL. Developers also noted that upper floor stepbacks are undesirable, as they both reduce square footage and increase construction costs, and they expressed concerns about mid-block breaks in buildings and about required changes in height.

Developers also expressed concerns about losing the ability to use incentives and concessions/waivers to deviate from other development standards. Relatedly, they expressed concern about requirements for providing ground-floor commercial space, noting that they can use State DBL to reduce that space and the associated costs of providing it.

In follow-up conversations with the development community about which incentives would work, some developers noted that expedited planning review or ministerial approvals for housing development projects that choose the new City density bonus could provide incentives. In particular, the faster review timelines and reduced costs for compliance with the California Environmental Quality Act (CEQA), both in time savings but also in preparation of fewer technical reports, were an attractive incentive combination for ministerial reviews. Should the City Council want to authorize ministerial approvals for housing development projects that meet certain building heights and rear property line setbacks, then a new density bonus approach could be feasible. This is discussed further later in this Discussion section as a recommended alternative.

Other suggested incentives included limiting or entirely removing the ground floor commercial use requirement, delaying the start of affordability requirements for 10 years, and reducing the inclusionary affordable housing requirement.

While the option to meet the inclusionary affordable housing requirement by providing off-site affordable housing may be an attractive incentive, staff do not recommend this approach for two reasons. First, principles of good planning practice encourage integrating a variety of units at a range of affordability levels within the same development and in the same neighborhood. This offers residents in low-income units the same access to on-site amenities as well as public amenities, such as parks and schools. This equal access is shown to improve educational, health, and income outcomes for low-income youth. With an allowance for off-site affordable housing, the affordable housing developments could potentially be located in less desirable neighborhoods, which is counter to good planning principles and the City’s affordable housing goals. Even if located nearby, it still creates a level of segregation between market-rate and

23.7 affordable homes. While this is acceptable in some instances as a means to increase the City’s much needed affordable housing supply, incentivizing off-site rather than on-site affordable housing in much of the City could create more economic segregation than desired.

Second, the City has a need for housing units affordable at moderate-income levels per the Regional Housing Needs Allocation (RHNA) targets. (See the separate agenda report on this same Council hearing related to the annual housing element update for the current production rate as compared to the targets.) Off-site affordable housing would likely be in 100 percent affordable housing projects that take advantage of tax credits and grants, and those projects almost exclusively cater to low-income households (at 80 percent area median income or less).

That would mean that production of moderate-income units would slow even further. Currently, aside from a portion of the accessory dwelling units that are built, one of the only means by which the City is seeing the production of moderate-income units is through market-rate projects that pursue a State DBL bonus of over 50 percent, up to the current maximum of the 100 percent State DBL bonus, which would provide 15 percent of the base project as moderate-income units.

The success of the Downtown Density Bonus stems from the specific economic conditions in the downtown area and the allowance of unlimited FAR for buildings limited to 85 feet in height.

Additionally, current construction typologies incentivize buildings to stay at or below 85 feet in height, as exceeding this height limit typically requires costly steel or steel-reinforced concrete construction instead of the more economical timber construction over a concrete podium. This prevalent construction pattern combined with unlimited allowable FAR and the economics in the downtown and South of Laurel Area provides the Downtown Density Bonus with a competitive advantage over the State DBL as evidenced by recently-proposed projects in those neighborhoods.

Staff have significant concern about the competitiveness of an expanded City density bonus given the difference in economic conditions between the downtown areas and other parts of the City. When staff worked with a consultant, Keyser Marston Associates, and analyzed the viability of changes to the inclusionary ordinance in 2018, pro forma analyses of inclusionary affordable housing requirements came back as being viable at 13-14 percent in the downtown.

Following subsequent direction from the City Council, the inclusionary housing requirement was set at 20 percent of the base number of units in a proposed development. Shortly thereafter, State DBL was updated to increase the maximum density bonus from 35 percent to 50 percent.

Because the inclusionary and State DBL affordability requirements apply only to the base project, this results in a 13.3 percent affordable housing rate within an overall project when using a 50 percent State DBL bonus. This rate is comparable to what the City’s consultant found in 2018 as the maximum inclusionary requirement that would retain project feasibility.

Additionally, the 2018 Keiser Marston study revealed that the inclusionary affordable housing requirement for areas outside of the downtown should be set at a maximum of 10 percent to retain project viability. The previous maximum density bonus of 50 percent under State DBL and the resulting lowest overall affordability percentage of 13.3 under the prior State SBL (as explained above) is an important contributor to the fact that no new large projects have started construction outside of the downtown since the inclusionary requirement increased to 20 percent, aside from 100 percent affordable projects, the Delaware Addition UCSC student and faculty housing project, and the soon-to-start-construction teacher housing project on Swift Street, all of which have very different financing mechanisms than typical market-rate housing. With the recent advent of the new maximum 100 percent bonus under State DBL, which includes affordable housing at the higher, moderate-income level and the resulting changes to

23.8 development pro formas, the City may be poised to see its first major, market-rate development outside of downtown now that a building permit has been submitted for the 530 Ocean Street project.

Increased construction costs, labor costs, and higher interest rates mean that the margins on housing developments are more constrained today than in 2018. Is it likely that today, inclusionary housing feasibility studies may come back at rates lower than 13-14 percent for the downtown and lower than 10 percent for areas outside of the downtown when considering the City’s current low-income requirements. This is evidenced by the lack of market-rate housing developments moving toward construction despite many entitlements over the last few years in Santa Cruz. However, the State’s 100 percent density bonus could mitigate some of those increased costs, as may be seen with the upcoming 530 Ocean Street project, by significantly increasing the number of market-rate units in exchange for additional moderate-income (not lowor very-low-income) units. This singular project moving forward towards development shows the power of the new, 100-percent State DBL bonus in promoting development outside of the downtown, as most entitlements that have failed to be built were entitled under the prior maximum 50 percent bonus. It also helps illuminate the high bar that the City must exceed in order to outcompete the State DBL.

Given the significant benefits and flexibility afforded by the State DBL, outcompeting the State DBL would likely require a combination of both relatively lenient development standards (e.g., building heights up to 70 feet, limited setback requirements, and little to no upper-floor stepback requirements) and strong incentives (e.g., ministerial review and/or significantly-reduced affordability requirements). Based on these conclusions from this preliminary exploration, staff does not recommend further studying an expanded Downtown Density Bonus, as the combination of what is likely necessary for the program to succeed would likely not be in line with City Council and community priorities at this time.

Expansion of the Downtown Density Bonus to other areas of the City would likely require an Environmental Impact Report (EIR) under CEQA. A project of this scale would likely be a twoyear process, with the EIR portion alone estimated to take about one year and cost at least $500,000, likely more. Consultant assistance on urban design and pro forma analyses would likely exceed $50,000.

In the coming years, staff anticipates progressing a package of General Plan amendments that better align the City’s General Plan with current state law, and at that time, an EIR will be prepared to analyze additional development capacities anticipated in the City – largely if not exclusively under the existing density allowances but likely taking into account increased densities associated with density bonuses. That effort would also look at other large, citywide changes, such as the changes to the Traffic Impact Fee that the City Council has directed staff to update. That EIR could provide the CEQA clearance for an expanded City density bonus, such as the one contemplated, and at that time, various factors could have changed that make such a bonus more feasible and competitive with State DBL. For example, interest rates could change, which would alter pro forma analyses, or the City could have different housing production priorities if, for example, the City has met its very-low and low-income RHNA targets, is close to meeting its moderate-income targets, but needs many more market-rate units.

At this time, staff believe that studying a seemingly infeasible expansion further would be both a costly endeavor in terms of City monetary and staffing resources, and it would have significant opportunity costs. Many Housing Element Objectives have been planned for 2026 and beyond,

23.9 and pursuing this exploration at this time would redirect staff time and City resources from these Council-adopted goals. However, the alternative discussed below offers what staff believe to be a more cost effective and less time consuming approach to potentially address the City Council’s desired outcomes.

After careful consideration, staff recommend that the City Council move to direct staff to cease exploration of a Downtown Density Bonus expansion. If the City Council moves instead to direct staff to further explore the Downtown Density Bonus expansion, staff would proceed with engaging urban design and land use consultants to analyze the feasibility of the proposed incentives and development regulations. Staff would then return to the City Council in approximately one year with additional analysis to help inform City Council consideration of whether to pursue a Downtown Density expansion Bonus further.

Alternative to Expanding the Downtown Density Bonus Concept Rather than attempting to compete with the State DBL, which developers have indicated is very enticing, this alternative to expanding the Downtown Density Bonus concept would incentivize use of the State DBL in a manner that could achieve the City Council’s development priorities.

A 2024 research paper from the UC Berkeley Terner Center for Housing Innovation and the UCLA Lewis Center for Regional Policy Studies titled Modeling Inclusionary Zoning’s Impact on Housing Production in Los Angeles: Tradeoffs and Policy Implications revealed that in the City of Los Angeles, increasing the inclusionary housing requirement entailed tradeoffs between below-market-rate and market-rate housing production. As the inclusionary housing requirement rose, there were diminishing returns to below-market-rate production and accelerating losses to overall housing production. In February 2025, the City of Los Angeles overhauled its Transit Oriented Communities program, with an inclusionary housing requirement of 11 percent, and replaced it with the Citywide Housing Incentive Program (CHIP). CHIP uses the State DBL as a base condition and provides further incentives to projects under specific conditions. This shift away from inclusionary affordable housing requirements in Los Angeles signals changing economics around the feasibility of these requirements and their benefits to both below-marketrate and market-rate housing production.

Importantly, CHIP provides ministerial approval for projects that meet a certain number of specified priorities. Ministerial actions are not subject to CEQA under Public Resources Code §21080(B)(1).

Following the success of CHIP, staff believe there is an opportunity to develop a similar process that might be feasible in the context of Santa Cruz. As such, staff recommend exploring allowing ministerial approvals for housing development projects that utilize the State DBL while complying with a specific number of City Council approved design priorities, which would be made available in the Design Guidelines & Priorities Handout. Based on analysis and developer feedback, staff recommend that these required design priorities balance competitiveness with the State DBL and desired community goals in order to be an attractive and viable approach to implement the State DBL.

This alternative approach would not trigger an EIR under CEQA, as projects would simply be following State DBL, albeit while meeting specified City Council priorities, with no change to the development capacity already allowed under State DBL. This would save the City significant time, money, and effort.

23.10 Even as most housing projects can be found exempt from CEQA through the infill housing exemption in CEQA Guidelines Section 15332 or the new infill housing exemption approved last year in Assembly Bill 130, those processes require both time and money from developers. The ministerial process for development projects choosing that path would not be subject to CEQA, which is a very attractive incentive for developers.

Objective Design Standards to Regulate the Removal of Heritage Trees The City’s environmental values connect strongly with heritage trees and the urban forest. These trees provide shading that helps make walking more comfortable and mitigate the urban heat island effect; they reduce stormwater runoff’ they provide habitat for birds, bats, and other animals; and they connect humans to the natural world. Santa Cruz's culture of environmental stewardship is reflected in the current heritage tree ordinance, which prioritizes the retention of heritage trees and seeks to allow removal only when there is a strong argument that a development site plan cannot be arranged in a way to allow retention of a heritage tree.

However, state law has changed how local jurisdictions can approach review of development applications that create two or more housing units, and the City can no longer apply subjective standards, including anything that would involve potential differences of opinions, negotiations, or vague direction to redesign a site. The existing heritage tree ordinance framework is subjective and can no longer provide protection of heritage trees for these types of development projects. To continue to promote preservation of heritage trees, the City needs to develop an ordinance that both reflects the community’s values and aligns with state law. Given that the subjective portion of the current ordinance is unenforceable, new objective standards would create stronger tree protections.

Under state law, the City can apply objective standards, which means standards that are clearly defined and measurable and that can be uniformly applied without personal interpretation. What may seem like objective standards related to heritage trees can become subjective very easily.

For example, a current standard to retain trees can become subjective if a developer believes doing so would reduce the ability to build at the allowable density, compromise their ability to meet requirements for utilities or sidewalks, or make a project financially infeasible. This then turns into a subjective conversation based on different opinions between the developer and the City in determining, on a project-by-project basis, whether or how such standards should be applied. This subjectivity is not allowed under state law.

Staff drafted new proposed heritage tree removal standards as part of the proposal to allow ministerial approval for 100 percent affordable housing development that went before Planning Commission on December 18, 2025. These proposed standards could be a starting point for further development of tree removal standards. Those draft objective standards would not require the site plan to be designed around existing heritage trees; rather, they would require objective determination of when a tree must be removed, based on distance to development, construction impacts, and application of arborist industry standards to protect a tree given those impacts. If the tree must be removed, the proposal includes objective standards for tree replacement. The proposed tree replacement ratio supported by the Planning Commission would be double that required by the existing Heritage Tree Ordinance implementing resolution and equivalent to what is already required within the Coastal Zone. If replacement planting is not possible, then the heritage tree replacement in-lieu fee would be charged at the rate of each 24-inch box replacement tree that cannot be planted. The proposal also includes new objective standards for tree evaluation and protection that align with arborist

23.11 industry standards and are at least as stringent as the requirements under the heritage tree ordinance Local Coastal Program requirements.

Given that a key relevant current heritage tree removal standard is unenforceable under state law, the standards considered by the Planning Commission would provide significant, additional tree protections. Additionally, those draft standards require development to consider impacts to trees on adjacent properties within ten feet of the site of the proposed project, strengthening protections by requiring development to consider potential impacts on off-site trees as well and requiring protections for those trees. The City in no way can require a tree to be removed if it is on a property adjacent to proposed development based on many property rights and legal precedents, and the previously-proposed standards expand those protections by requiring protective measures on a nearby development site.

The draft standards provide a basis to build from as the City considers the development of new standards. Objective standards could include things like replanting requirements and in-lieu fees for removal of heritage trees, specified protection actions for trees proposed to be retained by the developer, and defined ways to productively re-use lumber from removed trees so they can continue their contributions to the community. Another opportunity lies in creating incentives for developers to retain heritage trees. These incentives could look like awarding density bonus units to development projects that retain trees, waiving development standards such as setbacks to allow more flexible site planning to preserve a tree, or other development standard modifications.

While incentives would not guarantee the retention of any trees, they offer the potential for tree preservation that is consistent with state law and is better than what the City has now, which is an unenforceable regulation with limited incentives for tree preservation (for example, doublecounting preserved trees towards required open space). Successful incentives crafted upon careful analysis would need to be more appealing to a developer than the status quo and benefit both the developer and the City.

Standards and incentives could also potentially focus on certain trees, such as larger sized heritage trees or native species, to promote the retention of those specimens within the urban forest. Finally, updated regulations would also need to include a clearly defined process for review of heritage tree removals associated with developments of two of more units that clarifies both the applicant’s role in submitting information and the City’s role in evaluating the proposal.

At the February 11, 2026 developer roundtable, staff asked the attendees if any communities they have worked with have user-friendly tree ordinances, whether the attendees prioritize certain tree species or sizes, and how they assess the value in retaining versus removing a tree. One participant pointed to the City of Walnut Creek ordinance, stating that their tree permit process was easy to follow. Otherwise, developers did not state a preference for certain tree species or sizes. One developer indicated that their preservation of trees on another site added cost and time, but it made for a more unique final product compared to others he had built. However, because of the constrained housing market, the developer indicated that the presence of a mature tree on site does not result in a rental price premium, and other developers agreed. Participants also emphasized that due to lot depth constraints on most sites along the main transportation corridors where larger multifamily and mixed-use projects are typically proposed, it generally is not feasible to consider tree retention because the entire site is needed to devote to the development. These responses underscore the need for a clear and simplified heritage tree permit

23.12 process and that heritage trees are less likely to be retained without a strong incentive for a developer to do so given physical site constraints and the existing housing market.

Staff propose completing additional analysis on these potential opportunities, engaging with the community, and returning in the second half of the year with an ordinance to update the heritage tree regulations. Information from the outreach and analyses can also inform potential updates to the tree removal regulations that were previously considered in conjunction with the ordinance encouraging 100 percent affordable housing through a ministerial process, as that ordinance will be presented to the City Council later this year as well.

Community Engagement
The Objective Design Standards for Multifamily Housing, adopted by the City on November 15, 2022, were informed by an extensive series of community engagement events in 2021 and 2022.

The project team, including City staff and consultants, conducted community outreach in four primary phases designed to bring in new voices and provide the context for community members to participate in meaningful ways. The process began in the spring of 2021 with an outreach event focused on introducing the project and explaining some of the history of land use regulation and the inequities that have resulted from past zoning practices. Following this event in the Summer of 2021, the largest phase, a Community Survey on Design garnered over 600 responses, including over 40 responses in Spanish language and provided a solid foundation for the project team to understand the values and priorities of the community.

Following the survey, the project team drafted design standards, and worked with focus groups to refine and adjust the standards to be sure that a broad range of perspectives were represented.

Six focus groups including students, East Side residents, Latinx/Chicanx residents, low-income households, young adults aged 25-35, and renters provided the specificity and nuance needed to refine the draft standards before releasing them for public review in the Fall of 2021. The final round of public review and comment on the draft standards allowed for some additional clarifications, edits, and adjustments to the draft design standards. Key themes from the Summer 2021 Defining Community Character survey are summarized as follows. Comprehensive survey results are attached in this agenda report.
 Support for taller buildings
 Support for decreased restaurant parking
 Desire for active ground floors and spaces
 Preference for architectural freedom and variety
 Support for making housing more feasible
The proposed Design Guidelines and Priorities Handout incorporates feedback from these engagement touchpoints.

Next Steps
Should council adopt staff recommendations, the following next steps will be carried out across the three initiatives:
 Design Guidelines & Priorities Handout: Staff will make the handout available to the public on the City’s website. Staff will engage with industry professionals (including architects, landscape architects, and urban designers) and community members to solicit feedback on the handout and identify additional priorities for consideration. In Fall 2026, staff will return to the City Council with proposed updates to the Design Guidelines & Priorities Handout. These updates will include feedback received from industry

23.13 professionals and the community, will outline recommended revisions, will propose incentives for compliance with guidelines and priorities, and will include a prioritysetting exercise to engage Councilmembers in confirming key design priorities.  Downtown Density Bonus Expansion: Staff will not proceed with further exploration of an expansion of the Downtown Density Bonus to other areas of the City. This topic can be reconsidered in the future, after an updated EIR is completed in conjunction with upcoming General Plan changes, at which time development conditions, such as interest rates, may be different.
 Alternative to Expanding the Downtown Density Bonus Concept: Staff will explore incentivizing use of the State DBL in a manner that achieves City Council’s development priorities through use of the Design Guidelines & Priorities Handout.  Regulations for the Removal of Heritage Trees: Staff will complete additional analysis, engage with community members, and draft a proposed ordinance for updated heritage tree standards related to housing development projects of two or more units.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The actions requested in this report provide direction to staff and do not represent formal action on policies or municipal code changes. Thus, the proposed direction is not a “project” under CEQA pursuant to Public Resources Code Section 21065 and CEQA Guidelines Sections 15378.

This CEQA determination is for the items at hand and does not cover any future work recommended by these items. Future implementation steps that follow this report may require such environmental analysis at the time they are considered by decision making bodies.

HEALTH IN ALL POLICIES (HiAP): In 2019, the City adopted a HiAP strategy to eliminate inequities in health and well-being and attain equity for all residents. The proposed initiatives support the City’s commitment by embedding community well-being and environmental sustainability into land use and development decisions.

First, promoting the adoption of design guidelines and City Council priorities that encourage greater variety in the architectural style and design of multifamily housing developments advances HiAP goals by fostering inclusive, vibrant, and high-quality neighborhoods that support mental well-being and social cohesion. Thoughtful design guidelines can enhance neighborhood livability, improve safety, and promote equitable access to attractive and functional housing for residents of diverse backgrounds and income levels.

Second, strengthening protections for heritage trees through preservation incentives and clear removal regulations directly promotes the City’s HiAP goals. Protecting the City’s urban tree canopy improves air quality, reduces urban heat island effects, enhances access to nature, and supports climate resilience. These benefits are especially important for front line communities in the City who are disproportionately impacted by environmental health burdens and climate change.

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 proposed approaches to develop a Design Guidelines & Priorities Handout, to cease exploration of a Downtown Density Bonus expansion, and to put

23.14 in place incentives for the protection of and regulations for the removal of heritage trees on housing development projects are not anticipated to have any significant fiscal impact.

Assistance on the design guidelines work will be provided by an urban design consultant.

However, that consultant is already on contract with the City, and the costs are already encumbered in that contract.

If the City Council directs staff to further explore expanding the Downtown Density Bonus concept, staff would use the services of a land use and urban design consultant to prepare an EIR as well as a consultant to review pro forma analyses. These efforts would have a significant fiscal impact to the City’s General Fund. The EIR would likely cost at least $500,000, and consultant assistance on urban design and pro forma analyses would likely exceed $50,000.

If the City Council chooses to direct staff to pursue the recommended alternative path to incorporate incentives into the State DBL process, there would be no additional EIR or consultant costs beyond those already budgeted and encumbered.

Prepared By:

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

Lee Butler, LEED AP, AICP
Community Development
Department
Approved By:

Matt Huffaker
City Manager
ATTACHMENTS:

1. DRAFT DESIGN GUIDELINES & PRIORITIES HANDOUT.PDF

2. DEFINING COMMUNITY CHARACTER SURVEY RESULTS_JULY 2021.PDF

3. HOUSING DEVELOPMENT AND RECENT STATE LAW CHANGES.PDF

23.15 Design Guidelines &
Priorities Handout

23.16 Contents

1. Background and Purpose

2. City Council Priorities

3. Design Guidelines

4. Current Context in Santa Cruz

5. Community Engagement Highlights

6. Architectural Examples
Encouraged Examples
I. Examples from Santa Cruz
II. Examples from Analogous Coastal Cities
III. Examples from other Cities
Discouraged Examples
I. Contemporary Styles
II. Traditional Styles – Do’s and Don'ts
City of Santa Cruz 2
3 4
5 6
7 8
9 10
18 24
48 49
55 23.17
In recent years, the City of Santa Cruz has
experienced increased development and
entitlement of multi-family and mixed-use
buildings, consistent with the City’s prohousing designation by the State Department of Housing and Community
Development. While there are objective
standards in place for the design of
multi-family and mixed-use development,
there are no requirements that pertain to
architectural style aside from those
related to the Beach and South of Laurel
Area. As part of the process of developing
the objective standards, community
surveys and public meetings were held to
determine if the community preferred
variation in architectural style or
uniformity. Public input strongly favored
architectural diversity, and the standards
were developed accordingly.

Several multi-family and mixed-use
buildings have been constructed and
entitled over the last few years; however,
the city has seen little variation in
architectural style. The most prevalent
development typology, often referred to
as “contemporary urban mid-rise” or
“mid-rise podium housing”, features a
focus on density, rectilinear massing, flat
roof structures, stepped upper floors with
an active ground floor, modern façade
articulation and mixed materials. Strong
examples of this typology create active
street edges using large storefront
windows and multiple entry points to
encourage pedestrian activity, articulate
massing with upper floor step backs,
notches, material and color variation, and
utilize neighborhood context as design
cues to complement existing urban fabric.

Weak examples of this typology create
looming upper floors and out-of-scale,
monolithic pedestrian experiences at the
ground floor, boxy massing with busy and
repetitive formal and material
articulations, and monotony with
repetitive facade proportions, applied
panels, and window treatments.

Furthermore, many of these projects
share similar proportions and materials,
leading to a formulaic look across the
built environment of Downtown Santa
Cruz. The over-prevalence of this typology
in recent years has led to negative public
sentiment associated with such
development. This handout brings these
concerns to light to guide development
away from this over-abundant typology
and towards more varied architectural
styles, to better align with community
values.

This handout aims to communicate the
City’s priorities pertaining to the design
and character of multi-family and mixeduse developments through the introduction of Council Priorities and
exemplary guidelines, which will
supplement the City’s existing SCMC §

24.12.185: Objective Standards for
Multifamily Development. Design
Standards are objective requirements that
are quantifiable and verifiable that
development projects must comply with.

These design guidelines and priorities are
best practices serving as holistic
guidance to communicate the City’s
intent for the look and feel of multifamily
and mixed-use development.

Background and Purpose
City of Santa Cruz 3

23.18 Working with the City of Santa Cruz City
Council and the Housing Subcommittee,
the City puts forward these Council
Priorities, listed in order of importance.

Developers are encouraged to take these
priorities into consideration when
designing and proposing multifamily
residential and mixed-use developments
in the City of Santa Cruz. Development
review applications are required to
include a written narrative detailing how
each Council priority has been
addressed in the proposed project.

City Council Priorities
Site Design (to be developed)
• Priority 1
• Priority 2
Building Design (to be developed)
• Priority 1
• Priority 2
Public Interface (to be developed)
• Priority 1
• Priority 2
City of Santa Cruz 4

23.19 1. Incorporate Community Values
Extensive community engagement
during the development of the City’s
Objective Design Standards brought to
light the following priorities:
• Variety and uniqueness in building design.
• Unique design identity and context specific
design thesis.
• Special features that distinguish a building
from any other.
• Environmental sustainability (orientation of
building/solar exposure, green walls/roofs,
sustainable building materials, reduced
water and energy use, etc.)
• Social sustainability (natural light and
ventilation, use of natural materials,
communal spaces, access to nature,
connections between tenants and
community, etc.)

2. Create a Sense of Place
Santa Cruz is a unique city with a
historic downtown. New development
should echo and complement the
existing identity of the city.
• New development should be uniquely
“Santa Cruz”.
• New building design should not aim to
imitate existing styles but respond
thoughtfully and additively.
• New development should actively engage
the public realm, foster community and
deliver public uses that are appropriate
and aligned with shared community
values.

Design Guidelines (to be developed)

3. Complement the Context
There is not one prevalent, singular
architectural style that defines Santa
Cruz (ex. Santa Barbara’s Spanish
colonial style); therefore, development
applications are encouraged to consider
neighborhood context in the following
ways:
• Description in area plan, if applicable.
• Natural resources in close proximity
(redwoods, eucalyptus groves, riparian
areas, ocean views, beaches, rivers &
creeks, open meadows, etc.)
• Topography
• Public viewsheds
• Industrial or historic buildings in close
proximity. Gaining inspiration from existing
context may help achieve preservation of
place.
• Adjacent building uses and surrounding
amenities.

City of Santa Cruz 5

23.20 Santa Cruz is home to a variety of architectural styles:
6 23.21
Top development features for new
buildings to include, even if they
increase housing costs:

1. Architectural details (250)

2. Ground floors shops and
restaurants (232)

3. More parking spaces (211)

4. Community gathering spaces (184)

5. High quality building materials (183)
Community Engagement Highlights
Good tradeoffs for less expensive
housing:

1. Increased building height limits
(332)

2. Exclusively residential buildings in
commercial areas (327)

3. Simpler building shapes (252)

4. Less expensive materials (250)

5. Fewer parking spaces (240)
Preferences for look and feel of
buildings along the corridors:

1. More eclectic (67%)

2. Don’t care/haven’t notices (12%)

3. More uniform (11%)

4. Something else (10%)
Regulation of design features for
multifamily buildings (MXMD &
MXHD):

1. Create Options (46%)

2. Leave Open (43%)

3. City Dictates (10%)
Regulation of design features for
multifamily buildings (RL & RM):

1. Create Options (46%)

2. Leave Open (44%)

3. City Dictates (5%)
City of Santa Cruz 7

23.22 Architectural
Examples
Design Guidelines & Priorities for Multifamily Housing
8 23.23
Encouraged Examples
The following images are of building designs that reflect architecture that varies from the more contemporary urban midrise typology that has become prevalent in recent years. These images are intended to foster creativity and do not reflect an exhaustive or prescriptive list.

Part I: Examples from Santa Cruz
Part II: Examples from Analogous Coastal Cities
Part III: Examples from other Cities
City of Santa Cruz 9

23.24 Encouraged Examples: Part I
Examples from Santa Cruz
The following examples showcase built or entitled projects in the City of Santa Cruz that engage with the local context and add vibrancy and character to the built environment of the City.

Warm colors
offset industrial
forms and
material palette.

City of Santa Cruz 10 Tannery Artists Loft, Santa Cruz

23.25 Tannery Artists Loft, Santa Cruz
Active roof line
and step backs
break down the
scale of massing.

Wood siding
responds to
surrounding
context of
redwood forest.

Kresge College, University of California Santa Cruz City of Santa Cruz 11

23.26 Heller Graduate Student Housing, University of California Santa Cruz Heller Graduate Student Housing, University of California Santa Cruz Transparency of
key massing
elements offset
overall scale of
the building.

Framed entryway
enlivens the indooroutdoor interface.

City of Santa Cruz 12

23.27 River Row, Santa Cruz
River Row, Santa Cruz
Sawtooth roof
elements add visual
interest to the
roofline and overall
project massing.

Upper floor setbacks,
massing articulation and
pedestrian walkways
provide visual interest
and add an openness to
the built environment.

City of Santa Cruz 13

23.28 Anton Pacific, Santa Cruz
525 Ceder Street, Santa Cruz
The pedestrian
paseo and active
ground floor add
vibrancy to this
development.

Active ground
floors and
generous massing
insets engage the
public realm.

City of Santa Cruz 14

23.29 Delaware Avenue Project, University of California Santa Cruz Delaware Avenue Project – UCSC
Massing step
backs and pitched
roof forms create
lively ground floor
experiences.

Sawtooth roof
form adds visual
interest and
variation in overall
massing.

City of Santa Cruz 15

23.30 Downtown Library, Santa Cruz
Upper floor step
backs provide
visual interest and
create openness.

Transparent
façade activates
the ground level
and creates
vibrancy.

Downtown Library, Santa Cruz
City of Santa Cruz 16

23.31 Encouraged Examples: Part II
Examples from Analogous
Coastal Cities
This section features selected multifamily housing projects from coastal California cities, offering inspiration through a range of design approaches, site strategies, and housing types suited to coastal contexts.

Cal Poly Student Housing, San Luis Obispo – Valerio Dewalt Train Varying window
proportions, materials
and colors provide
visual interest and
dynamic overall form.

City of Santa Cruz 17

23.32 The Arroyo, Santa Monica – Koning Eizenberg Architects The Arroyo, Santa Monica – Koning Eizenberg Architects
Pedestrian paseos
and outdoor
walkways give this
development an
airy feel.

Colorful window
details add
character to an
otherwise
minimalistic
façade.

City of Santa Cruz 18

23.33 Montana Ave, Santa Monica – Bica Architects
Montana Ave, Santa Monica – Bica Architects
Traditional
architectural
elements add
warm details to
this development.

Exterior stairways and
breezeways breakup
rectilinear massing.

City of Santa Cruz 19

23.34 Mixed Use, Santa Monica – Folonis Architects
20th Street, Santa Monica – KFA Architects
Stepped massing that
creates usable space
and transparent
entryways create
visual interest and
break up the overall
building form.

Horizontal and vertical
elements that deviate
from story levels
create playful
proportionality.

City of Santa Cruz 20

23.35 Tenaya Towers, Santa Barbara – SOM
Cal Poly Student Housing, San Luis Obispo – Steinberg Hart Horizontal and
vertical “fins” that
break from story
levels create an
impression of a
shorter building.

Translucency, color
and exterior walkways
create a dynamic
building façade.

City of Santa Cruz 21

23.36 Riverwalk, San Diego – Gensler
El Cerrito Multifamily Housing, San Diego – LPA Design Studios Upper-level
setback and
material variations
create the
impression of
multiple buildings
rather than one
monolithic form.

Double height lower
stories and inset
volumes create an
inviting and open
ground plane.

City of Santa Cruz 22

23.37 Encouraged Examples: Part III
Examples from other Cities
This section includes a selection of multifamily residential developments from across the world to illustrate innovative design concepts, site strategies, and architectural features that may be appropriate for consideration in future projects in Santa Cruz. These case studies were chosen to demonstrate a range of approaches to density, massing, materials and open space integration with particular attention to how each project deviates from the prevalent mid-rise urban constriction typology.

Anthem on 12th, Seattle – Mithun
Bay Window
façade punch outs
and color accents
create visual
interest.

City of Santa Cruz 23

23.38 Buildings as Art
Key Characteristics:
• Iconic
• High quality materials
• Unique design and massing
Timber House, Brooklyn – Mesh Architectures
Uplit balconies,
asymmetrical
massing and
window details
lend this building
an iconic feel.

City of Santa Cruz 24

23.39 St. Claire 3100, Toronto – Lorcan O'Herlihy Architects Stacked and offset
glass massing
gives this building
transparency,
lightness and
visual interest.

City of Santa Cruz 25

23.40 Timber House, Brooklyn – Mesh Architectures
Uplit balconies,
asymmetrical
massing and
window details
lend this building
an iconic feel.

City of Santa Cruz 26

23.41 Paseo Mallorca 15, Palma de Mollorca – OHLAB
The louvered
screen, irregular
window openings
and playful
roofline create
visual interest.

City of Santa Cruz 27

23.42 High Quality Materials
Key Characteristics:
• Genuine masonry, timber, and
metal building components
• Metal windows rather than vinyl
• Durable and lasting materials
• Energy efficiency
• Minimal ornamentation
222 Taylor St, San Francisco – DBA
Contrasting high
quality materials
create a striking
and varied façade
using repeating
components.

City of Santa Cruz 28

23.43 Radak 8, Jerusalem – Della Pergola Architects
The light-colored
stone façade lends
a lightness and
asymmetry to an
otherwise
rectilinear building.

City of Santa Cruz 29

23.44 400 Grove, San Francisco – Fougeron Architecture
Laguna Row, Carlsbad – Brett Farrow
Wood paneling and
window details
enliven repetitive
massing elements.

Vertically striated
façade elements,
undulating planes
and breezeways
give this building
lightness and
visual interest.

City of Santa Cruz 30

23.45 Industrial Materials
Key Characteristics:
• Contemporary, minimalist
design
• Industrial-influenced façade and
materials
• Asymmetrical massing
• Vertical emphasis
Orange Crush, Philadelphia – ISA
Colorful walls pop
against industrial
façade paneling.

City of Santa Cruz 31

23.46 Orange Crush, Philadelphia – ISA
Granville 1500, Los Angeles – Lorcan O’Herlihy Architects Subtle façade
color variation and
offset window
placement give
this frontage a
playful feel.

Irregular massing
carve-outs create
visual interest in a
monochromatic
façade.

City of Santa Cruz 32

23.47 Amani and Nia, San Francisco – David Baker Architects Habitat Mueller Row Homes, Austin – Michael Hsu
Minimal yet bold
shifts in façade
plane and
materiality add
visual interest.

Strategic variation
in color and
façade material
add variety to
similar massing
elements.

City of Santa Cruz 33

23.48 Playful Designs
Key Characteristics:
• Modern, stepped massing
• Bold, playful color palette
• Repetitive geometric rhythm
• Strong corner presence
• Balconies or windows as a key
feature
• Contrast of materials
• Active street level design
10 Montieth St, Brooklyn – ODA Architecture
Colorful window
details give
repetitive façade
elements a lively
feel.

City of Santa Cruz 34

23.49 One Santa Fe, Los Angeles – MMA
10 Montieth Street, Brooklyn – ODA Architecture
Strategic and
irregular application
of color provides
variation and visual
interest with
minimal elements.

Colorful window
details and bold
massing with
strategic
carveouts create a
playful façade.

City of Santa Cruz 35

23.50 UCLA Housing, Los Angeles – Lorcan O’Herlihy Architects UCLA Housing, Los Angeles – Lorcan O’Herlihy Architects Massing step
backs add visual
interest to overall
building form and
create outdoor
living spaces.

Variations in window
proportion and
depth add character
to an otherwise
minimalistic façade.

City of Santa Cruz 36

23.51 Maceo May Apartments, San Francisco – Mithun
Contrasting color
and minimal façade
elements create
visual interest.

City of Santa Cruz 37

23.52 Xucyun Housing, Berkeley – Kevin Daly Architects
Color and
threedimensional
window details
enliven this
façade.

City of Santa Cruz 38

23.53 Formosa 1140, Los Angeles – Lorcan O’Herlihy
Bold colors paired
with façade screen
elements create
visual interest.

Exterior
walkways create
a connection
between the
public and
private realm.

City of Santa Cruz 39

23.54 Traditional & Historic
Styles
Key Characteristics:
• Historic compatibility
• Minimal ornamentation
• Recessed windows
• Birck or stone exterior
• Tripartite structure
• Arched windows
• Strong corner features
• Neutral color palette
Loft 550, Lawrence – Winn Development
Corner detailing,
arched windows,
and brick façade
lend an
institutional feel.

City of Santa Cruz 40

23.55 No. 79 Fitzjohn’s Ave, London – Pegasus Life
1007 Atlantic Ave, Brooklyn – Issac and Stern Architects Brick façade,
regular window
rhythm and
tripartite structure
give this building a
time-honored
presence.

Façade masonry,
articulated
massing and
recessed windows
give this
development a
classic feel.

City of Santa Cruz 41

23.56 The Davisville, Toronto – Rockport Group
Brick façade and
stepped massing
combine traditional
materials with
contemporary
typologies.

City of Santa Cruz 42

23.57 Calypso Apartments, Entitled project in Santa Cruz – Swenson Builders King-Lincoln-Bronzeville - Kelley Companies
Strong corner
details and an
active ground floor
anchor this
development,
engaging the
public realm.

Thoughtful details,
integrated architectural
style elements, active
facades and ground floor
achieve a successful
contemporary
adaptation of a historic
typology.

City of Santa Cruz 43

23.58 Natural & Biophilic
Elements
Key Characteristics:
• Natural materials
• Minimal ornamentation
• Generous landscaping
• Biophilic design
XII Apartments, Paris – Mars Architects
High quality
natural materials
and structural
details lend an
approachability to
this façade.

City of Santa Cruz 44

23.59 Edificio Cova07, Mexico City – DFArquitectos
Paris XII Apartments, Paris – Mars Architects
High quality
natural materials
and structural
details lend an
approachability to
this façade.

Integrated
plantings add
vibrancy and
greenery to this
façade.

City of Santa Cruz 45

23.60 Pasona, Tokyo – Kono Designs
Green walls add
visual interest and
lightness to an
otherwise rectilinear
building.

City of Santa Cruz 46

23.61 Discouraged Examples
This section aims to identify and communicate elements of prevalent housing development typologies that have not
performed well in the Santa Cruz community, to better inform future development applications in the city.

Part I: Contemporary Styles
Part II: Traditional Styles – Do’s and Don'ts
City of Santa Cruz 47

23.62 Discouraged Examples: Part I
Contemporary Urban Mid-rise
Weak examples of this typology create looming upper floors and out-of-scale, monolithic pedestrian experiences at the ground floor, boxy massing with busy and repetitive formal and material articulations, and monotony with repetitive facade proportions, applied panels, and window treatments.

Façade elements
appear applied
rather than as
integrated
elements of the
building.

City of Santa Cruz 48

23.63 Frequent variation in
façade plane, color
and materiality give
the building a "busy"
feel. Repetitive
window and balcony
elements appear
monotonous.

Frequent variation
in façade plane
and color give the
building a "busy"
feel.

City of Santa Cruz 49

23.64 The application of
façade panels of
varying color
contributes to a
“busy” feel. Windows
with little to no inset
appear applied to the
façade rather than an
integrated part of it.

Windows with little to no
inset appear applied to the
façade rather than an
integrated part of it.

Repetitive window details,
rectilinear massing and
“naked” roofline contributes
to a monotonous and
monolithic feels, despite
color accents.

City of Santa Cruz 50

23.65 Rectilinear building
massing and façade
elements contribute
to a building that
appears “heavy” and
“boxy”, despite a
transparent and
active ground floor.

Vertically striated
bands of color and
material lend the
building a monolithic
appearance.

City of Santa Cruz 51

23.66 The application of
façade panels of varying
color and poorly
detailed corner
conditions contribute to
a “tacked-on” and
“busy” feel. Additionally,
composite and uPVC
panels may become
worn and degraded over
a short period of time.

Rectilinear building
massing and façade
elements contribute
to a building that
appears “heavy” and
“boxy”. Window
details with little to no
inset appear applied
rather than as
integrated features of
the façade.

City of Santa Cruz 52

23.67 Window details with
little to no inset and
rectilinear massing
give this building a
“blank” and sterile
appearance.

Façade applications,
cutouts and
numerous changes in
material contribute to
a “busy” feel.

City of Santa Cruz 53

23.68 Discouraged Examples: Part II
Traditional Styles – Do’s and Don’t
This section focusses on development in a traditional architectural style, examining how this approach functions successfully in practice and where it falls short. It aims to illustrate the specific architectural elements involved and how they are applied, utilizing examples from within the City of Santa Cruz and outside it to showcase both strengths and limitations.

Value engineered examples of this style include foam trim with applied stucco in place of recessed windows, vinyl windows, snap on mullions and large, unarticulated expanses of wall.

What we don’t want:

Overly value engineered
buildings sacrifice material
quality and the design details
needed to convincingly
achieve a specific
architectural style.

City of Santa Cruz 54

23.69 What we don’t want:

Window details with little to
no inset, balcony details that
appear “tacked-on” and large
areas of unarticulated stucco
façade give this building a
dated appearance.

What we do want:

Traditional architectural
details that are integrated
into contemporary building
forms and massing.

City of Santa Cruz 55

23.70 Calypso Apartments – Entitled project in Santa Cruz Courtyard by Marriot – Built project in Santa Cruz
What we don’t want:

Minimal details, “applied”
architectural style elements,
inactive facades and ground floor.

What we do want:

Thoughtful details,
integrated architectural
style elements, active
facades and ground floor.

City of Santa Cruz 56

23.71 Defining
Community
Character Survey
Results
JULY 12, 2021
1 23.72
The following visualizations depict the responses
of our Defining Community Character survey.

Please see the accompanying memo for more
context and a discussion of key findings.
2 23.73
33%
67%
Survey Results (n=679)*
BIPOC White
Demographics of Respondents
37%
63%
City of Santa Cruz, 2018 ACS
BIPOC White
3 23.74
Demographics of Non-White
Respondents
2%
10% 5%
33% 37%
13%
Survey Results (n=224)*
American Indian/Alaska Native Asian
Black Latino
Multiple Other
26%
5%
56%
13%
City of Santa Cruz, 2018 ACS
Asian Black Latino Other
4 23.75
Survey Results: Areas Where
Respondents Live (n=704)*
33%
22%
16%
15%
7%
7%
Eastside Westside Downtown Outside of Santa Cruz Upper Eastside Upper Westside 5 23.76
Age Distribution of Respondents
1%
17%
39%
17%
26%
Survey Results (n=659)*
Under 20 20 to 34 35 to 54 55 to 64 65 or older
25%
33%
20%
11%
12%
City of Santa Cruz, 2018 ACS
Under 20 20 to 34 35 to 54 55 to 64 65 or older
6 23.77
Survey Results: Household Income of
Respondents (n=549)*
9%
6%
9%
8%
8%
13%
11%
14%
9%
14%
2%
3%
5%
5%
9%
14%
15%
19%
14%
14%
Less than $10,000
$10,000 to $14,999
$15,000 to 24,999
$25,000 to $34,999
$35,000 to $49,999
$50,000 to $74,999
$75,000 to $99,999
$100,000 to $149,999
$150,000 to $199,999
$200,000 or more
Survey Results
City of Santa Cruz, 2018 ACS
7 23.78
Household Size of Respondents
15%
37%
22%
26%
Survey Results (n=549)*
1 2 3 4 or more
32%
34%
15%
19%
City of Santa Cruz, 2018 ACS
1 2 3 4 or more
8 23.79
Most important for a new building on these
streets to include, even if they increase
housing costs (choose 2)
146
232
211
250
184
183
145
None of these: the City shouldn’t ask for anything that makes housing more expensive
Ground floor shops or restaurants
More parking spaces
Architectural details (e.g., varied roof forms, bay windows) Community gathering spaces
High quality building materials (e.g., stone, wood, brick) Something else
9 23.80
20%
20%
10% 10%
10%
30%
American Indian/Alaska Native
12%
17%
12%
26%
17%
2%
14%
Asian/Pacific Islander
6%
31%
6%
12%
13%
13%
19%
Black/African American
11%
7%
24%
11%
19%
23%
5%
Latino/ Hispanic
11%
19%
14%
21%
16%
11%
8%
Other
11%
19%
15%
19%
13%
12%
11%
White/Caucasian
10 23.81
10%
20%
14%
14%
18%
11%
13%
Downtown
12%
19%
12%
18%
14%
12%
13%
Westside
4%
18%
17%
22%
13%
20%
6%
Upper Eastside
19%
19%
5%
23%
10%
15%
9%
Upper Westside
13%
18%
16%
12%
18%
12%
11%
Outside of Santa Cruz
9%
15%
20%
22%
11%
14%
9%
Eastside
11 23.82
11%
45%
11%
11%
0%
22%
0%
Under 20
24%
15%
16%
11%
15%
12%
7%
20 to 34
11%
21%
14%
19%
14%
12%
9%
35 to 54
8%
14%
19%
20%
16%
13%
10%
55 to 64
7%
16%
17%
20%
12%
15%
13%
65 or older
12 23.83
13%
20%
22% 16%
15%
14%
English Language Responses
5%
3%
37%
3%
19%
33%
Spanish Language Responses
13 23.84
Good trade-offs for less expensive
housing (select all that apply)
66 332
252
250
240
327
102
None of these: I’m not concerned about housing
affordability
Increased building height limits
Simpler building shapes (e.g., flat roofs, minimal variation in the building face)
Less expensive materials (e.g., stucco)
Fewer parking spaces
Exclusively residential buildings in commercial areas
Something else
14 23.85
3%
26%
15%
15%
17%
19%
5%
Outside of Santa Cruz
3%
21%
19%
15%
16%
20%
6%
Downtown
5%
18%
14%
16%
15%
25%
7%
Eastside
4%
22%
15%
16%
16%
20%
7%
Westside
7%
19%
21%
20%
11%
17%
5%
Upper Eastside
3%
22%
16%
18%
17%
19%
5%
Upper Westside
15 23.86
0%
19%
25%
19%
12%
19%
6%
Under 20
2%
24%
22%
16%
13%
19%
4%
20 to 34
4%
23%
17%
13%
20%
19%
4%
35 to 54
4%
15%
14%
20% 13%
25%
9%
55 to 64
5%
20%
11%
19%
13%
23%
9%
65 or older
16 23.87
4%
22%
17%
17%
17%
23%
English Language
Responses
19%
45%
14%
3%
5%
14%
Spanish Language
Responses
17 23.88
Would you support decreasing the
parking requirement for restaurants?
45%
17%
15%
13%
10%
Yes
No
Only for small restaurants (e.g., Charlie Hong Kong Restaurant) Only if the site is accessible by bus or bike
Something else
18 23.89
Do the buildings create a consistent edge along the
sidewalk, or are they broken up with spaces in between
for landscaping or stoops? What do you prefer?
25%
29%
31%
4%
11%
Variety of the edge, moving in and out (landscaping is on the private property adjacent to the sidewalk) The edge doesn’t matter to me as long as the sidewalk is wide enough A consistent, solid edge along the entire block (with landscaping and street trees included in the public right of way, rather than on private property)
Don’t care/haven’t noticed
Something else
19 23.90
On major commercial streets like Ocean, Soquel,
and Water, do you prefer buildings that have a
uniform look along the street, or an eclectic mix?
11%
67%
12%
10%
More uniform More eclectic Don’t care/haven’t noticed Something else 20 23.91
Community feedback for previous projects indicated that Santa Cruz residents prefer that buildings be located at or close to the sidewalk edge. However, a larger front setback might be better for certain uses and features. What uses (if any) should be allowed to have a larger setback? Choose all that apply. 1%
28%
8%
20%
23%
20%
None of the above Outdoor dining Vehicle parking Publicly-accessible open space Landscaping Bicycle parking 21 23.92
The City wants to set a high quality of design for new
development without stifling designers’ creativity or budget.

How strictly should the City regulate the following features of future multi-family buildings? (MXMD and MXHD sites)
0 50
100
150
200
250
300
350
400
Building materials Building colors Breaks in blank
walls*
Roof shape* Building
decorations*
Landscaping Building entry
Create some options for architects to choose from Leave open for architects to decide City dictates a tight standard 22 23.93
On streets like Ocean or Soquel, how much
retail space (shops, restaurants) would you like
to see on the ground floor?
15%
26%
34%
25%
I don’t care
Some buildings should have shops or restaurants
I want some sort of activity on the ground floor (e.g., gym for residents, leasing office), but doesn’t need to be a shop or restaurant Most buildings should have shops or restaurants
23 23.94
For the larger buildings allowed on Water, Ocean, and Soquel, four (4) stories is the minimum height necessary for the City’s zoning code and General Plan to be consistent as required by State Law (according to test fits conducted by an urban design professional). For apartment buildings with a mix of market-rate and affordable units, what is the maximum height that you support on major commercial streets? Choose one.
27%
17%
22%
21%
13%
4 stories 5 stories 6 stories No maximum height Something else 24 23.95
For the larger buildings allowed on Water, Ocean, and Soquel, four (4) stories is the minimum height necessary for the City’s zoning code and General Plan to be consistent as required by State Law (according to test fits conducted by an urban design professional). For apartment buildings with a mix of market-rate and affordable units, what is the maximum height that you support on major commercial streets? Choose one.
26%
17%
22%
21%
14%
English Language Responses
4 stories 5 stories 6 stories
No maximum height Something else
41%
17%
10%
27%
5%
Spanish Language Responses
4 stories 5 stories 6 stories
No maximum height Something else
25 23.96
For the larger buildings allowed on Water, Ocean, and Soquel, four (4) stories is the minimum height necessary for the City’s zoning code and General Plan to be consistent as required by State Law (according to test fits conducted by an urban design professional). For apartment buildings with a mix of market-rate and affordable units, what is the maximum height that you support on major commercial streets? Choose one.
26 16%
16%
25%
33%
10%
Upper Westside
40%
23%
17%
14%
6%
Upper Eastside
36%
17%
17%
14%
16%
Eastside
18%
16%
27%
23%
16%
Westside
23%
19%
22%
24%
12%
Downtown
21%
19%
23%
29%
8%
Outside of Santa Cruz

23.97 Affordable housing developers get to choose regulatory incentives to help them build affordable units,* but the City may be able to encourage certain incentives. What types of incentives should the City try to encourage for these 100% affordable housing developments? (Choose 2) 208
98 90
75 367
95 58
233
61 80
Reduced parking requirements
Reduced off-street loading requirements
Reduced setbacks
Reduced open space requirements
Streamlined approval process
Increase in lot coverage
Reduction in required landscaping area
Increased height beyond three (3) additional stories
Reduced building amenities (e.g., storage space, laundry, bike parking)
Other
27 23.98
Technical studies have shown that the economics of these sites makes them harder to develop with multi-family apartments. Instead, these types of sites often develop as single-family homes, for-sale condos, or townhomes. When considering what design standards to use for these smaller residential sites in single-family neighborhoods, which is more important to you? 51%
36%
13%
Policies that could make rental apartments more feasible on these sites and create a greater number of housing units Standards that will mitigate the bulk and massing of the buildings but could constrain the amount of possible new residences.

Something else/it depends
28 23.99
Technical studies have shown that the economics of these sites makes them harder to develop with multi-family apartments. Instead, these types of sites often develop as single-family homes, for-sale condos, or townhomes. When considering what design standards to use for these smaller residential sites in single-family neighborhoods, which is more important to you? 29 62%
28%
10%
Downtown
43%
44%
13%
Eastside
53%
34%
13%
Westside
36%
53%
11%
Upper Eastside
28% 57%
15%
Upper Westside
62%
28%
10%
Outside of Santa Cruz

23.100
The City wants to set a high quality of design for new
development without stifling designers’ creativity or budget.

How strictly should the City regulate the following features of future multi-family buildings? (RL/RM sites)
0 50
100
150
200
250
300
350
400
Building
materials
Building colors Breaks in blank
walls*
Roof shape* Building
decorations*
Landscaping Building entry
Create some options for architects to choose from
Leave open for architects to decide
City dictates a tight standard
31 23.101
The upper stories of buildings are typically what we hear the most feedback about from neighbors concerned with shadows, privacy, or the bulkiness of a building. Which strategy below do you prefer to promote a good neighbor policy? We know it’s a hard choice, but the City will need to make tough decisions on these tradeoffs and you can only choose one.
111
97 120
128
182
43 94
Upper-story rear setbacks that would reduce massing impacts in backyards*
Don’t care.

Limiting the extent of blank walls to make buildings more aesthetically and architecturally interesting.

Limiting the location of balconies that could look into existing homes.

Upper-story side setbacks that would reduce massing impacts on adjacent properties and street*
Upper-story front setbacks that would reduce massing impacts from the street*
Something else/it depends
32 23.102
Did you attend or watch the video from
the Designing a Santa Cruz for All webinar?
16%
84%
Yes No
33 23.103
Have you participated in the City’s previous
planning and/or housing projects, such as the
Corridors Plan or Voices on Housing?
30%
70%
Yes No
34 23.104
Memorandum
DATE July 12, 2021
TO
Sarah Neuse
831-420-5092
[email protected]
cc: Matt VanHua
FROM
Meredith Rupp, Senior Planner
Alyssa Chung, Assistant Planner
RE: Defining Community Character Survey Results
Together with the City Planning and Community Development Department Urban Planning Partners conducted an online survey as part of the Defining Community Character engagement phase of the Multi-Family Objective Standards Project. The purpose of this memorandum is to present key findings from the survey data and present implications for our remaining work. A series of data visualizations accompany this cover memorandum to provide further context and analysis.

This memorandum starts with applicable background information on the survey methodology before highlighting and discussing the key findings.

BACKGROUND
Urban Planning Partners developed an online survey, found in Appendix A, to collect information on community priorities, concerns, and preferences related to the design of mixed-use and multifamily buildings. The survey was conducted in English and Spanish and distributed through a variety of methods, including social media, emails, communications with partner organizations, a press release, flyering, and in-person canvassing with a paper survey in the Beach Flats community.

The English-language survey was open from May 15 to June 1. The Spanish-language survey was open from May 20 to June 1.

The online survey garnered approximately 779 English responses and 40 Spanish responses once the data were cleaned.
1 1 We received a total of 2,195 online responses (1,916 in English, 279 in Spanish) and an additional 42 people responded with hard copies. However, as we began analyzing the data, it became clear that some entries were fraudulent. See Appendix B for how that data was cleaned.

23.105
Sarah Neuse
July 12, 2021