Scotts Valley City Council
December 3, 2025

AGENDA
Meeting of the
Scotts Valley City Council
In-Person and Remote Access
Date: December 3, 2025
Time: 6:00 PM

CONTACT

INFORMATION

MEETING LOCATION POSTING
City of Scotts Valley
1 Civic Center Drive
Scotts Valley, CA 95066
(831) 440-5600
City Council Chambers
1 Civic Center Drive
Scotts Valley, CA 95066
OR
Zoom Video Conference
https://us02web.zoom.us/j/83295730901
Agenda posted on 11-26-
2025 at City Hall, SV
Senior Center, SV Public
Works Building, and on the
Internet
at: www.scottsvalley.gov

ELECTED OFFICIALS CITY STAFF MEMBERS
Derek Timm, Mayor
Donna Lind, Vice Mayor
Steve Clark, Council Member
Krista Jett, Council Member
Greg Wimp, Council Member
Mali LaGoe, City Manager
Kirsten Powell, City Attorney
Cathie Simonovich, City Clerk

MEETING NOTICE AND AGENDA PACKET MATERIALS
Notice regarding City Council Meetings:

The City Council meets regularly on the 1st and 3rd Wednesday of each month at 6:00 PM in the City Hall Council Chambers located at 1 Civic Center Drive, Scotts Valley, CA 95066, and via Zoom Webinar remote access.

Agenda and Agenda Packet Materials:

The City Council agenda and the complete agenda packet are available for review by 5:00 PM the Friday before the Wednesday meeting on the Internet at the City’s website:
www.scottsvalley.gov and in the lobby of City Hall at 1 Civic Center Drive, Scotts Valley, CA.

Pursuant to Government Code §54957.5, materials related to an agenda item, submitted after distribution of the agenda packet, are available for public inspection in the lobby of City Hall during normal business hours, Monday-Friday, 8am-12 pm and 1-5 pm. In accordance with AB 1344, such documents will be posted on the City’s website at www.scottsvalley.gov.

Public Participation:

The meeting will be available on Zoom and livestreamed to the City of Scotts Valley’s YouTube channel: https://www.youtube.com/@cityofscottsvalley
For those wishing to participate via Zoom you can join the following ways:

Zoom Webinar meeting link: https://us02web.zoom.us/j/83295730901 Or dial one of these numbers: (669) 900-9128 or (669) 444-9171 Webinar ID: 832 9573 0901

City Council Meeting Agenda Page 2
Date: December 3, 2025
Whether attendance is in-person or remote, you will be given opportunities to provide public comment at the appropriate times throughout the meeting. The time limit is up to 3 minutes for an individual, or 5 minutes for someone who is representing a group of three or more, at the discretion of the Mayor. Please note that this is not a question-and-answer time, but simply a time to provide comments to the Council. At the appropriate times during the meeting for public comment, on items not on the agenda, and on specific agenda items, the Mayor will announce that public comment will be accepted.

How to comment via in-person attendance:

Please proceed to the public comment podium when the Mayor opens the item for public comment.

How to comment via Zoom Webinar:

Use the webinar attendee option to “raise hand” when the Mayor opens the item for public comment. The Clerk will unmute you when it is your turn. If you have joined via Zoom phone call, dial *9 or your phone to “raise your hand”, and the Clerk will unmute you when it is your turn.

CALL TO ORDER 6:00 PM
PLEDGE OF ALLEGIANCE and MOMENT OF SILENCE

ROLL CALL

COMMITTEE REPORTS
Council members are appointed to committees which are either City committees or committees dealing with other jurisdictions. This portion of the agenda allows the committee member to present oral or written reports to the Council regarding their committee assignments. It also allows the Council to make comments and give the committee member direction, as required.

CITY MANAGER REPORT

PUBLIC COMMENT TIME
This is the opportunity for individuals attending in person to make oral comments to the Council on any items within the purview of the Council, which are NOT part of the Agenda. No action on the item may be taken, but the Council may request the matter be placed on a future agenda. Written public comment may be emailed to the City Clerk by 5:00 PM on the day of the meeting at [email protected].

ALTERATIONS TO CONSENT AGENDA
Council can remove or add items to the Consent Agenda.

City Council Meeting Agenda Page 3
Date: December 3, 2025

CONSENT AGENDA
The Consent Agenda is comprised of items which are intended to be non-controversial and are approved without discussion. Persons wishing to speak on any item may request the item be moved to the Regular Agenda by raising their hand to be recognized by the Mayor. An item will only be moved from the Consent Agenda to the Regular Agenda if a City Council Member requests it to be moved and a majority of the Council agrees.

1. Approve City Council Special Meeting minutes of 11-19-2025 and Regular Meeting minutes of 11-19-2025

2. Approve check register dated 11-15-2025 through 11-26-2025

3. Approve Resolution No. 1955.32 Affirming the City Salary Schedules are Monthly Amounts

4. Approve Resolution No. 2076.1 Continuing the Declared Emergency for the Glenwood Drive Slide Pursuant to Public Contract Code §1102 and Authorizing the City Manager to Cause the Repair of the Slide Pursuant to Public Contract Code §§22035 and 22050.

5. Approve contract amendment with Ross Recreation Equipment, Inc. to add 10% contingency and amend scope of work to include unanticipated drainage work

PUBLIC HEARINGS

1. Public hearing to consider the Planning Commission’s recommendation to amend Scotts Valley Municipal Code Title 16 (Subdivisions) and Title 17 (Zoning) to clarify requirements for accessory dwelling units, junior accessory dwelling units, urban lot splits, SB 9 residential development, and ministerial design review

ALTERATIONS TO REGULAR AGENDA
Council can remove or add items to the Regular Agenda.

REGULAR AGENDA
Persons wishing to speak on any item may do so by raising their hand to be recognized by the Mayor.

1. Approve a Resolution of Intention to form an Enhanced Infrastructure Financing District (EIFD)

2. Future Council Agenda Items

City Council Meeting Agenda Page 4
Date: December 3, 2025

CONVENE TO CLOSED SESSION

CLOSED SESSION SUBJECT(S)

1. Conference with legal counsel regarding real property negotiations Legal Authority: Government Code Section 54956.8
Location: 2 lots between 201 and 241 Kings Village Road, Scotts Valley; APNs 022-601-05 and 022-601-13
Staff Present: City Manager, City Attorney

RECONVENE TO OPEN SESSION

REPORT ON ACTION TAKEN DURING CLOSED SESSION

ADJOURNMENT

ADA NOTICE
The City of Scotts Valley does not discriminate against persons with disabilities. The City Council Chambers is an accessible facility. If you wish to attend a City Council meeting and require assistance such as sign language, a translator, or other special assistance or devices in order to attend and participate at the meeting, please call the City Clerk's office at (831) 440-5600 five to seven days in advance of the meeting to make arrangements for assistance. If you require the agenda of a City Council meeting be available in an alternative format consistent with a specific disability, please call the City Clerk’s Office. The California State Relay Service (TTY/VCO/HCO to Voice: English 1-800-735-2929, Spanish 1-800-855-3000; or, Voice to TTY/VCO/HCO: English 1-800-735-2922, Spanish 1-800-855-3000), provides Telecommunications Devices for the Deaf and Disabled and will provide a link between the TDD caller and users of telephone equipment.

City Council Meeting Agenda Page 5
Date: December 3, 2025

PROCEDURAL INFORMATION FOR THE PUBLIC

THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
APPROVAL OF A RESOLUTION:

1. Move the Resolution number for approval.

2. Second the motion.

3. Vote by body, a roll call vote is not required.

THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
INTRODUCTION/ADOPTION OF AN ORDINANCE:

1. Move the Ordinance number for introduction (or adoption).

2. Move the Ordinance be introduced by title only and waive the reading of the text.

3. Read the Ordinance title.

4. Second the motion.

5. Vote by body, a roll call vote is not required.

THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
PUBLIC COMMENT/PUBLIC HEARINGS:

Unless otherwise determined by the presiding officer of the meeting:

1. Three minutes allowed per individual to speak.

2. Five minutes allowed per individual representing a group of three or more. ❖❖❖❖❖❖❖❖
The City of Scotts Valley does not discriminate against persons with disabilities. The City Council Chambers is an accessible facility. If you wish to attend a City Council meeting and require assistance such as sign language, a translator, or other special assistance or devices in order to attend and participate at the meeting, please call the City Clerk's office at (831) 440-5608 five to seven days in advance of the meeting to make arrangements for assistance. If you require the agenda of a City Council meeting be available in an alternative format consistent with a specific disability, please call the City Clerk’s Office. The California State Relay Service (TTY/VCO/HCO to Voice: English 1-800-735-2929, Spanish 1-800-855-3000; Voice to TTY/VCO/HCO: English 1- 800-735-2922, Spanish 1-800-855-3000; or, from or to Speech-to-Speech, English & Spanish 1- 800-854-7787), provides Telecommunications Devices for the Deaf and Disabled and will provide a link between the TDD caller and users of telephone equipment.

PLEDGE OF ALLEGIANCE and MOMENT OF SILENCE

ROLL CALL
CITY STAFF MEMBERS PRESENT:

Mali LaGoe, City Manager
Kirsten Powell, City Attorney
Dat Nguyen, Senior Civil Engineer
Cathie Simonovich, City Clerk

ELECTED OFFICIALS
PRESENT:

Derek Timm, Mayor
Donna Lind, Vice Mayor
Steve Clark, Council Member
Krista Jett, Council Member
Greg Wimp, Council Member

ALTERATIONS TO REGULAR AGENDA

REGULAR AGENDA

MINUTES
Special Meeting of the
Scotts Valley City Council
Date: November 19, 2025
Time: 5:45 PM

CONTACT

INFORMATION

MEETING LOCATION POSTING
City of Scotts Valley City Council Chambers The agenda was posted 1 Civic Center Drive 1 Civic Center Drive on 11-18-2025 at City Scotts Valley, CA Scotts Valley, CA 95066 Hall, SV Senior Center, 95066 OR SV Public Works Building,
(831) 440-5600 Zoom Video Conference and on the Internet https://us02web.zoom.us/j/83295730901 at www.scottsvalley.gov.

CALL TO ORDER 5:45 PM
The City Council meeting was called to order at 5:46 PM.

M/S: Lind/Clark
To approve the Regular Agenda with no alterations.

Carried 5/0 (AYES: Timm, Lind, Clark, Jett, Wimp)

ADJOURNMENT
City Council Meeting Minutes Page 2
Date: November 19, 2025

1. Resolution Declaring an Emergency for the Glenwood Drive Slide Pursuant to Public Contract Code §1102 and Authorizing the City Manager to Cause the Repair of the Slide Pursuant to Public Contract Code §§22035 and 22050.

City Manager LaGoe presented this item and responded to questions from the Council.

Senior Civil Engineer Dat Nguyen was also in attendance to answer questions.

M/S: Lind/Clark
To adopt Resolution No. 2076, a resolution of the City Council of the City of Scotts Valley declaring an emergency for the Glenwood Drive slide pursuant to the Public Contract Code §1102 and authorizing the City Manager to cause the repair of the slide pursuant to Public Contract Code §§22035 and 22050.

Carried 5/0 (AYES: Timm, Lind, Clark, Jett, Wimp)
The meeting adjourned at 6:02 PM.

Attest:

Cathie Simonovich, City Clerk
Approved:

Derek Timm, Mayor

PLEDGE OF ALLEGIANCE and MOMENT OF SILENCE

ROLL CALL
CITY STAFF MEMBERS PRESENT:

Mali LaGoe, City Manager
Kirsten Powell, City Attorney
Jayson Rutherford, Interim Police Chief
Taylor Bateman, Community Development
Director
Cathie Simonovich, City Clerk

ELECTED OFFICIALS
PRESENT:

Derek Timm, Mayor
Donna Lind, Vice Mayor
Steve Clark, Council Member
Krista Jett, Council Member
Greg Wimp, Council Member

SPECIAL SET MATTER

COMMITTEE REPORTS

MINUTES
Meeting of the
Scotts Valley City Council
Date: November 19, 2025
Time: 6:00 PM

CONTACT

INFORMATION

MEETING LOCATION POSTING
City of Scotts Valley City Council Chambers The agenda was posted 1 Civic Center Drive 1 Civic Center Drive on 11-14-2025 at City Scotts Valley, CA Scotts Valley, CA 95066 Hall, SV Senior Center, 95066 OR SV Public Works Building,
(831) 440-5600 Zoom Video Conference and on the Internet https://us02web.zoom.us/j/83295730901 at www.scottsvalley.gov.

CALL TO ORDER 6:00 PM
The City Council meeting was called to order at 6:03 PM.

1. Mayor's Proclamation for Consultant Steve Toler
Mayor Timm presented a proclamation to Steve Toler to recognize and thank him for his many years of service to the City of Scotts Valley and to wish him a happy retirement.

City Council Meeting Minutes
Date: November 19, 2025

CM Clark attended a Focus on the Future Conference with the Regional Transportation Commission (RTC) staff and the Commission Chair November 9 through November 11.

This event focused on self-help counties, defined as counties that fund transportation projects through a transportation-specific sales tax measure. At the conference, attendees learned about the funding landscape for the state of California and noted that it is likely that there will be a state tax measure on the ballot for transportation projects.

CM Clark attended the Economic Development Committee meeting today where they continued discussions with the Chamber to collaborate on upcoming economic opportunities such as Superbowl LX and the 2026 FIFA World Cup and to engage with Visit Santa Cruz on these events.

CM Clark announced that the tree lighting ceremony, sponsored by the Exchange Club of Scotts Valley, will be December 6 from 5:00 PM to 7:00 PM. There will be a toy drive hosted by the Scotts Valley Police Officers Association and much more.

CM Jett attended a Pathways to Possibilities (P2P) Core Leadership Meeting with United Way staff. P2P is part of the Youth Action Network which is run by the United Way. At this meeting they discussed the goals and plans that the high school group has for the upcoming months, including a sit-down meeting with Senator John Laird, a listening session with the United Way staff, and a community listening session.

CM Jett attended a Pathways to Possibilities meeting with the high school students where they discussed and planned the upcoming events.CM Jett introduced herself and offered assistance where needed.

VM Lind represented Scotts Valley at the event put on by The Pitch in Initiative at the Rio Theater on November 9. Santa Cruz Mayor Fred Keeley had invited all elected officials to attend this event regarding protecting the oceans and the effects of plastics on the environment.

VM Lind attended a Santa Cruz Metropolitan Transit District (METRO) meeting where they reviewed the budget and discussed a potential sales tax measure for either 2026 or 2028.

VM Lind is participating in the planning for the tree lighting ceremony, and she noted that they are looking for sponsors. Alternatively, people can also offer support by participating in the food drive and the toy drive to support Valley Churches United.

CM Wimp noted that the tree lighting is a great local event that supports Valley Churches United, and he reiterated that they are seeking sponsors.

CM Wimp met with the Santa Cruz County Business Council Director.

CM Wimp recognized and congratulated the City of Scotts Valley and staff for hosting another cohort of Leadership Santa Cruz, and he thanked Mayor Timm for providing his insight to the group.

City Council Meeting Minutes
Date: November 19, 2025

CITY MANAGER REPORT
Mayor Timm attended his final meeting as president of the Association of Monterey Bay Area Governments (AMBAG) and reported that the federal government has cancelled the Electric Vehicle (EV) grant. The agenda included an update on the draft 2050 Metropolitan Transportation Plan/Sustainable Communities Strategy, where the draft Environmental Impact Report was approved. They also completed the final 2025 Monterey Bay Area Coordinated Public Transit-Human Services Transportation Plan.

Mayor Timm attended the Economic Development subcommittee meeting today. He thanked CM Clark and staff for their hard work and noted that Jordan Taylor does a great job of working on the economic development projects under the direction of City Manager LaGoe.

Enhanced Infrastructure Financing District (EIFD): At their last board meeting, the Scotts Valley Fire Protection District voted to move forward with partnering with the City on the next step to form an Enhanced Infrastructure Financing District. This item could be agendized as early as the next City Council meeting to review future steps.

Al Shugart Park Dog Park Design: At a special meeting of the Parks and Recreation Commission on November 10, the Commission reviewed the updated dog park design for Al Shugart Park. The Commissioners heard public input and offered several suggestions to staff, who will bring back a revision at their next meeting on December

16. Central Coast Community Energy (3CE): City Manager LaGoe attended a 3CE operations board meeting last week.

Municipal Clerks Conference: City Clerk Simonovich attended the CalCities annual Municipal Clerks Conference and Training last week.

Monterey Bay Area Self Insurance Authority (MBASIA): Several city staff attended the biannual MBASIA Risk summit where we focused on how to reduce liability costs, workers' comp injuries and best practices for safety and risk management.

Monterey Bay Area Self Insurance Authority (MBASIA) Board Meeting: City Manager LaGoe attended the MBASIA board meeting the day following the risk summit, where we reviewed MBASIA's financial position and performance. She noted that overall the pool is doing well at containing claims and costs in this very volatile claims climate.

Employee Appreciation Lunch: The annual appreciation lunch for employees was on November 18 and service awards were presented and all City staff were thanked and appreciated.

City Council Meeting Minutes
Date: November 19, 2025

PUBLIC COMMENT TIME

ALTERATIONS TO CONSENT AGENDA

CONSENT AGENDA
California Public Employers Labor Relations Association (CalPELRA) Conference: ASD Hill and HR Manager Armstrong are attending the CalPELRA conference in Monterey this week.

Sgt. Damon Gutzwiller Memorial Sign: Interim Chief Rutherford will be attending the Sgt. Gutzwiller memorial sign unveiling at Highlands Park on November 22.

Planning Commission Meeting: The Planning Commission will meet November 20 and hold a public hearing regarding ADU regulations as well as an informational study session on the Town Center Specific Plan and draft Environmental Impact Report (EIR).

Holiday Shop Local Campaign: The City's Holiday Shop Local Campaign will kick off next week to encourage support of our local businesses throughout the Holiday Shopping Season. Information on how to participate can be found on the City's social channels and around town to participate.

Officer Fred Yoon: The City’s newest police officer, Fred Yoon, will be sworn in on December 8.

Police Officers Association (POA) Toy Drive: The POA will hold a toy drive on Black Friday in front of Target from 3:00 PM to 7:00 PM, with all toys and donations benefiting Valley Churches United.

City Offices Closed for Thanksgiving Holiday: The City offices will be closed for the Thanksgiving holiday on Thursday, November 27 and Friday, November 28.

Reminder:
• Follow the City on social media
• Sign up for the City's newsletter
Wendy Crockett spoke about her experience attending the Parks and Recreation Commission meeting on November 10 and expressed her concerns about accessibility.

M/S: Clark/Lind
To approve the Consent Agenda with no alterations.

Carried 5/0 (AYES: Timm, Lind, Clark, Jett, Wimp)

City Council Meeting Minutes
Date: November 19, 2025

ALTERATIONS TO REGULAR AGENDA

REGULAR AGENDA

1. Approve City Council minutes of 11-05-2025

2. Approve check register dated 11-01-2025 through 11-14-2025

3. Adopt Resolution No. 2073 delegating authority to the City Manager for the management and approval of Administrative Policies

4. Investment Report for the Quarter Ended September 30, 2025

5. Adopt Resolution No. 2074 approving (1) Full-Time Equivalent (FTE) Police Lieutenant position
M/S: Lind/Clark
To approve the Regular Agenda with no alterations.

Carried 5/0 (AYES: Timm, Lind, Clark, Jett, Wimp)

1. Consideration of a Master Governance and Service Agreement related to the Regional Interoperable Next-Generation Radio System (RING) Interim Chief Rutherford and City Manager LaGoe presented this item and responded to questions from Council.

M/S: Lind/Clark
To adopt Resolution No. 2075, a resolution of the City Council of the City of Scotts Valley approving a master governance and service agreement for the Regional Interoperable Next-Generation (RING) radio system, contingent on the participation by the cities of Santa Cruz, Capitola, Watsonville, and the University of California Santa Cruz.

Carried 5/0 (AYES: Timm, Lind, Clark, Jett, Wimp)
M/S: Clark/Jett
To designate the City Manager, or her designee, as Scotts Valley's voting member of the RING Executive Committee.

Carried 5/0 (AYES: Timm, Lind, Clark, Jett, Wimp)

2. Future Council Agenda Items
None.

The meeting adjourned at 7:00 PM.

ADJOURNMENT

City Council Meeting Minutes
Date: November 19, 2025

Attest:

Cathie Simonovich, City Clerk
Approved:

Derek Timm, Mayor

apadatecr2 City of Scotts Valley llambert 11/26/2025 10:22 Page 1 A/P Check Register Checks from 11/15/2025 to 11/26/2025
Check Check Vendor Name Net Check Check CheckNumber Date Amount Status Type Cash Account: 999-10100-000-000-000000
135055 11/21/25 ACC BUSINESS 606.78 O Regular
135056 11/21/25 AGILE OCCUPATIONAL MEDICINE 1,307.00 O Regular135057 11/21/25 ALVAREZ IND INC CLEAN BLDG 451.00 O Regular135058 11/21/25 AT&T 87.39 O Regular135059 11/21/25 AT&T 59.40 O Regular135060 11/21/25 AT&T MOBILITY 1,697.88 O Regular135061 11/21/25 AZTEC TECHNOLOGY CORPORATION 5,967.11 O Regular135062 11/21/25 BEAUJO GERA 174.79 O Regular135063 11/21/25 BENJAMIN STANDEN 971.50 O Regular135064 11/21/25 BKF ENGINEERS 3,804.00 O Regular135065 11/21/25 BRINKS AWARDS & SIGNS 49.39 O Regular 135066 11/21/25 CHAD PRICE 2,095.00 O Regular135067 11/21/25 CHLOE GRAHAM 162.00 O Regular135068 11/21/25 COMCAST 453.94 O Payment Manager135069 11/21/25 DEPT OF JUSTICE 66.00 O Regular135070 11/21/25 DEREK WELSH 387.00 O Regular135071 11/21/25 DUDEK 225.00 O Regular135072 11/21/25 DUNCAN AUTO TECH 450.31 O Payment Manager135073 11/21/25 ENTENMANN-ROVIN CO 302.39 O Regular135074 11/21/25 ENVIRONMENTAL INNOVATIONS 10,157.94 O Regular135075 11/21/25 GOLDFARB LIPMAN ATTORNEYS 750.50 O Regular135076 11/21/25 GRAINGER 1,160.29 O Regular135077 11/21/25 INTERWEST CONSULTING GROUP 11,555.25 O Regular135078 11/21/25 JON COVELLO 1,111.77 O Regular135079 11/21/25 JOSHUA WOZYNSKI 325.05 O Regular135080 11/21/25 K & D LANDSCAPING, INC. 3,711.00 O Regular135081 11/21/25 KEVIN ELLIOTT 205.57 O Regular135082 11/21/25 KEVIN KING 484.44 O Regular135083 11/21/25 KIMLEY-HORN & ASSOCIATES INC 3,347.90 O Regular135084 11/21/25 L & M FIRE PROTECTION 1,900.00 O Regular135085 11/21/25 MICHAEL BANKE 127.19 O Regular135086 11/21/25 MICRONICS ENGINEERED FILTRATIO 3,660.47 O Regular135087 11/21/25 MISSION UNIFORM SERVICE 1,036.89 O Payment Manager135088 11/21/25 MONTEREY BAY ANALYTICAL SVCS 1,298.20 O Regular135089 11/21/25 MONTEREY REGIONAL 10,225.20 O Payment Manager135090 11/21/25 NELSON ALFARO 40.88 O Regular135091 11/21/25 NORTH BAY FORD-LINCOLN- 412.50 O Regular135092 11/21/25 OLIN CORPORATION AS SOLE 5,756.30 O Regular135093 11/21/25 PATRICK AHRENS 746.15 O Regular135094 11/21/25 PHOENIX GROUP 324.50 O Regular135095 11/21/25 PRESS BANNER 255.55 O Regular135096 11/21/25 PURETEC INDUSTRIAL WATER 59.66 O Regular135097 11/21/25 REGIONAL GOVERNMENT SERVICES 645.60 O Regular135098 11/21/25 RONALD T BAULD 2,980.93 O Regular

apadatecr2 City of Scotts Valley llambert 11/26/2025 10:22 Page 2 A/P Check Register Checks from 11/15/2025 to 11/26/2025
Check Check Vendor Name Net Check Check CheckNumber Date Amount Status Type135099 11/21/25 SANTA CRUZ CO ENVIRONMENTAL 993.00 O Regular135100 11/21/25 SANTA CRUZ LIVE SCAN, INC. 30.00 O Regular135101 11/21/25 SCARBOROUGH LUMBER 31.84 O Regular135102 11/21/25 SCOTTS VALLEY SPRINKLER 174.40 O Regular135103 11/21/25 SJON TOL 72.00 O Regular135104 11/21/25 STATE WATER RESOURCES CONTROL 10,920.00 O Regular135105 11/21/25 STERICYCLE INC 268.58 O Regular135106 11/21/25 SUN RIDGE SYSTEMS INC 6,400.00 O Regular135107 11/21/25 SYCAL ENGINEERING INC 1,422.14 O Regular135108 11/21/25 TRITON CONSTRUCTION 400.00 O Regular135109 11/21/25 URETSKY SECURITY 2,825.50 O Regular135110 11/21/25 WBA CONSULTING 14,000.00 O Regular135111 11/21/25 YORK FRAMING 190.42 O Regular135112 11/21/25 Z&M ENTERPRISE, LLC. 7,951.09 O Regular135113 11/26/25 A TOOL SHED, INC. 195.70 O Regular135114 11/26/25 ACC BUSINESS 1,232.09 O Regular135115 11/26/25 ACE PORTABLE SERVICES 1,837.67 O Payment Manager135116 11/26/25 ADVANCED FLOW MEASUREMENT 2,500.00 O Regular135117 11/26/25 AFLAC-FLEX ONE 688.11 O Regular135118 11/26/25 AT&T 8.85 O Regular135119 11/26/25 AT&T 3,221.85 O Regular135120 11/26/25 BAY TREE, LLC 4,604.58 O Regular135121 11/26/25 BLUETRITON BRANDS INC 60.97 O Regular135122 11/26/25 BRASS KEY LOCKSMITH 53.70 O Regular135123 11/26/25 CAL-WEST LIGHTING & SIGNAL INC 910.00 O Regular135124 11/26/25 CATHIE SIMONOVICH 440.06 O Regular135125 11/26/25 CENTRAL HOME SUPPLY 109.74 O Regular135126 11/26/25 CITY OF SANTA CRUZ 520.00 O Regular135127 11/26/25 COAST COUNTIES TRUCK & EQUIPMT 242,711.68 O Regular135128 11/26/25 COMCAST 1,046.89 O Payment Manager135129 11/26/25 COUNTY OF SANTA CRUZ 44.00 O Regular135130 11/26/25 CRYSTAL SPRINGS WATER CO 426.80 O Regular135131 11/26/25 CYNTHIA S HART 1,222.06 O Regular135132 11/26/25 DAWN BANKS 280.80 O Regular135133 11/26/25 DOCTORS ON DUTY 60.00 O Regular135134 11/26/25 ENTERPRISE FM TRUST 27,336.75 O Regular135135 11/26/25 ERNIES AUTO CENTER 32.82 O Regular 135136 11/26/25 FERGUSON ENTERPRISES, LLC #795 148.88 O Regular135137 11/26/25 FOREVER FIREWOOD, INC. 600.00 O Regular135138 11/26/25 GOOD CITY COMPANY 22,790.00 O Regular135139 11/26/25 HERC RENTALS 3,065.11 O Payment Manager135140 11/26/25 KOSMONT COMPANIES, INC 592.50 O Regular135141 11/26/25 LOGAN & POWELL, LLP 17,798.27 O Regular135142 11/26/25 MARY LOUISE DEFALCO 64.20 O Regular135143 11/26/25 MBASIA 12,409.55 O Regular

apadatecr2 City of Scotts Valley llambert 11/26/2025 10:22 Page 3 A/P Check Register Checks from 11/15/2025 to 11/26/2025
Check Check Vendor Name Net Check Check CheckNumber Date Amount Status Type135144 11/26/25 MONTEREY BAY ANALYTICAL SVCS 5,104.55 O Regular135145 11/26/25 MUTUAL OF OMAHA 1,296.85 O Regular135146 11/26/25 NBS GOVERNMENT FINANCE GROUP 2,995.55 O Regular135147 11/26/25 NICHOLAS STOEBERL 300.00 O Regular135148 11/26/25 OREILLY AUTOMOTIVE,INC 52.64 O Payment Manager 135149 11/26/25 OLIN CORPORATION AS SOLE 5,908.94 O Regular135150 11/26/25 PARS 68.75 O Regular135151 11/26/25 PHILLIP D NEUMAN 1,711.16 O Regular135152 11/26/25 PRESS BANNER 161.95 O Regular135153 11/26/25 PRINICPAL LIFE INSURANCE CO 7,770.55 O Regular135154 11/26/25 PRODESSE PROPERTY GROUP 5,378.40 O Regular135155 11/26/25 ROD MARKELL 1,974.00 O Regular135156 11/26/25 S.V. WATER DISTRICT 7,548.15 O Regular135157 11/26/25 SAN LORENZO VALLEY WATER DISTR 203.60 O Regular135158 11/26/25 SCARBOROUGH LUMBER 784.33 O Regular135159 11/26/25 SCOTTS VALLEY SPRINKLER 432.41 O Regular135160 11/26/25 SECOND HARVEST FOOD BANK 10,000.00 O Regular135161 11/26/25 SHARRON BARTH 162.00 O Regular135162 11/26/25 STANDARD INSURANCE COMPANY 944.40 O Regular135163 11/26/25 SYCAL ENGINEERING INC 502.50 O Regular135164 11/26/25 TALLEN CALIFORNIA, LLC 3,993.50 O Regular135165 11/26/25 THOMSON REUTERS-WEST 416.30 O Payment Manager135166 11/26/25 TORO PETROLEUM CORP 7,284.63 O Regular135167 11/26/25 U.S. BANK CORPORATE 18,153.86 O Regular135168 11/26/25 URBAN FIELD STUDIO OAKLAND 1,365.00 O Regular135169 11/26/25 WAGE WORKS 125.00 O Regular135170 11/26/25 WENDY OMEARA 100.00 O Regular 135171 11/26/25 WHITLOW CONCRETE INC. 34,300.00 O Regular135172 11/26/25 WIZIX TECHNOLOGY GROUP, INC 987.75 O Payment Manager135173 11/26/25 YESHE JACKSON FINE ART 800.00 O Regular135174 11/26/25 YOGA FOR ALL MOVEMENT 151.80 O Regular

apadatecr2 City of Scotts Valley llambert 11/26/2025 10:22 Page 4 A/P Check Register Checks from 11/15/2025 to 11/26/2025
110 Checks total: 575,696.08
0 ACH total:0 EFTPS total:0 Wire transfer total:
10 Payment Manager total: 19,572.70
120 GRAND TOTALS 595,268.78

AGENDA ITEM 3.

DATE: 12/3/2025
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 12/3/2025
TO: Honorable Mayor and City Council
FROM: Stephanie Hill, Administrative Services Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Approve Resolution No. 1955.32 Affirming the City Salary Schedules are Monthly Amounts

SUMMARY OF ISSUE
The City of Scotts Valley has historically maintained and published salary schedules showing monthly salary rates for all classifications. When processing payroll and reporting compensation to CalPERS, the City has consistently converted these monthly amounts to hourly equivalents using the industry-standard formula: Hourly Rate = (Monthly Salary × 12) ÷ 2,080 hours
While this has long been the City’s established practice, recent CalPERS compliance reviews statewide have highlighted the importance of ensuring that published pay schedules explicitly state when salary rates are presented as monthly amounts and clearly identify the conversion methodology.

To strengthen transparency, consistency, and CalPERS compliance, staff recommends updating the Citywide Salary Schedule to include a footnote that states rates shown represent the monthly salary rate unless expressly stated otherwise. This footnote does not modify or change any employee’s compensation. Instead, it formalizes and clarifies the City’s longstanding methodology and ensures that the pay schedule fully meets the documentation expectations of CalPERS auditors.

The resolution accompanying this agenda item also clarifies that this conversion methodology reflects long-standing City practice and is intended to apply to all prior periods in which the City used monthly salary rates. The attached Exhibit A reflects the clarifying footnote language for the active salary schedule.

FISCAL IMPACT
There is no fiscal impact in affirming the salary schedules are monthly.

STAFF RECOMMENDATION
Approve Res. 1955.32 to add clarifying language to Citywide Salary Schedules affirming the monthly rates and applicability.

TABLE OF CONTENTS

1. Resolution 1955.32 Salary Schedule and Classification Monthly Clarification

2. Exhibit A Salary Schedule for FY2425_2627_Monthly Footnote

RESOLUTION NO. 1955.32

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCOTTS

VALLEY AFFIRMING THE SALARY SCHEDULE AND

CLASSIFICATIONS ARE MONTHLY
WHEREAS, the California Public Employees’ Retirement System (“CalPERS”) requires public agencies to maintain publicly available and duly adopted salary schedules that comply with Government Code section 20636 and California Code of Regulations section 570.5; and
WHEREAS, CalPERS regulations require that an agency’s salary schedule clearly identify the pay rate for each position, and that such pay rates be published and accessible; and
WHEREAS, the City of Scotts Valley publishes its salary schedules based on monthly salary rates, which are converted to hourly rates for payroll, compliance, and CalPERS reporting purposes; and
WHEREAS, to ensure clear compliance with Government Code section 20636 and CCR section 570.5, the City desires to formally document the methodology used to calculate hourly rates from the established monthly salary amounts; and WHEREAS, the City has consistently established and applied monthly salary rates for all classifications and has historically converted those monthly rates to hourly equivalents using the standard calculation (Monthly Salary × 12 ÷ 2,080 hours); and WHEREAS, the City further desires to update its salary schedule documentation to expressly include this conversion methodology and reaffirm that the amounts listed are monthly salary amounts as the officially adopted rates of pay, unless expressly stated otherwise.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED by the City Council of the Cityof Scotts Valley as follows:

1. The City Council hereby approves and adopts the updated Citywide Salary Schedule clarifying language, which continues to present pay rates in monthly amounts.

2. The City Council affirms that the monthly salary amounts listed on the salary schedules represent the official rate of pay for each position, and that hourly rates are calculated using the formula: Hourly Rate = (Monthly Salary x 12) ÷ 2,080 hours.

3. The City Council directs staff to update any current and past schedules to include

such clarifying language and shall be recognized as applicable to prior fiscal years in which monthly salary rates were adopted and used for payroll and reporting purposes.

The above and foregoing resolution was duly and regularly adopted by the City Council of the City of Scotts Valley at a meeting held on the 3rd day of December 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Approved:

Derek Timm,
Mayor
Attest:

Cathie Simonovich,
City Clerk

Classification Bargaining Unit Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 ACCOUNTANT I SEIU 5,053 5,306 5,571 5,850 6,143 6,450 6,772 ACCOUNTANT II Mid-Mgmt 6,281 6,595 6,925 7,271 7,635 8,017 8,418 ACCOUNTING ASSISTANT SEIU 4,168 4,376 4,595 4,825 5,066 5,319 5,585 ADMINISTRATIVE ANALYST I SEIU 6,141 6,448 6,770 7,108 7,463 7,836 8,228 ADMINISTRATIVE ANALYST II SEIU 6,980 7,329 7,695 8,080 8,484 8,908 9,353 ADMINISTRATIVE ASSISTANT I SEIU 4,168 4,376 4,595 4,825 5,066 5,319 5,585 ADMINISTRATIVE ASSISTANT II SEIU 4,458 4,681 4,915 5,161 5,419 5,690 5,974 ADMINISTRATIVE ASSISTANT III SEIU 4,847 5,089 5,343 5,610 5,890 6,185 6,494 ADMINISTRATIVE SECRETARY /ANALYST SEIU 5,036 5,288 5,552 5,830 6,122 6,428 6,749 ADMINISTRATIVE SECRETARY/ANALYST Mgmt & Conf 5,134 5,391 5,661 5,944 6,241 6,553 6,881 ADMINISTRATIVE SERVICES DIRECTOR Mgmt & Conf 12,814 13,455 14,128 14,834 15,576 16,355 17,173 ASSISTANT CIVIL ENGINEER SEIU 6,611 6,942 7,289 7,653 8,036 8,438 8,860 ASSISTANT PLANNER SEIU 6,180 6,489 6,813 7,154 7,512 7,888 8,282 ASSISTANT TO THE CITY MANAGER Mgmt & Conf 8,693 9,128 9,584 10,063 10,566 11,094 11,649 ASSOCIATE CIVIL ENGINEER Mid-Mgmt 8,930 9,377 9,846 10,338 10,855 11,398 11,968 ASSOCIATE PLANNER SEIU 7,199 7,559 7,937 8,334 8,751 9,189 9,648 BUILDING INSPECTOR SEIU 5,750 6,038 6,340 6,657 6,990 7,339 7,706 BUILDING OFFICIAL Mid-Mgmt 10,119 10,625 11,156 11,714 12,300 12,915 13,561 BUILDING PERMIT TECHNICIAN SEIU 4,501 4,726 4,962 5,210 5,470 5,744 6,031 CITY CLERK Mgmt & Conf 8,693 9,128 9,584 10,063 10,566 11,094 11,649 CITY ENGINEER Mid-Mgmt 10,319 10,835 11,377 11,946 12,543 13,170 13,829 CITY MANAGER Contract 17,320 18,186 19,095 20,050 21,053 22,106 23,211 CIVIL ENGINEER Mid-Mgmt 8,347 8,764 9,202 9,662 10,145 10,652 11,185 CODE ENFORCEMENT OFFICER SEIU 5,299 5,564 5,842 6,134 6,441 6,763 7,101 COMMUNITY DEVELOPMENT DIRECTOR Mgmt & Conf 12,814 13,455 14,128 14,834 15,576 16,355 17,173 DEPUTY CITY CLERK Mgmt & Conf 6,030 6,331 6,648 6,980 7,329 7,695 8,080 EMERGENCY DISPATCH CLERK I PBU 5,001 5,251 5,514 5,790 6,079 6,383 6,702 EMERGENCY DISPATCH CLERK II PBU 5,542 5,819 6,110 6,416 6,737 7,074 7,428 EMERGENCY DISPATCH CLERK III PBU 5,651 5,934 6,231 6,543 6,870 7,214 7,575 ENGINEERING ASSOCIATE SEIU 5,705 5,990 6,290 6,604 6,934 7,281 7,645 ENGINEERING TECHNICIAN SEIU 4,967 5,215 5,476 5,750 6,037 6,339 6,656 FINANCE MANAGER Mgmt & Conf 9,287 9,751 10,239 10,751 11,289 11,853 12,446 HUMAN RESOURCES MANAGER Mgmt & Conf 9,287 9,751 10,239 10,751 11,289 11,853 12,446 LABORER SEIU 3,507 3,682 3,866 4,059 4,262 4,475 4,699
MAINTENANCE DIVISION MANAGER Mid-Mgmt 8,695 9,130 9,586 10,065 10,568 11,096 11,651 MAINTENANCE SUPERVISOR SEIU 5,416 5,687 5,971 6,270 6,584 6,913 7,259 CITY OF SCOTTS VALLEY SALARY SCHEDULE: 07/01/2024 - 12/31/2024 Exhibit A
All rates represent the Monthly rate, unless expressly stated otherwise. The standard methodology converts monthly salary to an hourly rate using the following formula Hourly Rate = (Monthly Salary x 12) ÷ 2,080 hours. Rates become effective the first full pay period following the effective date.

Classification Bargaining Unit Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 CITY OF SCOTTS VALLEY SALARY SCHEDULE: 07/01/2024 - 12/31/2024 MAINTENANCE WORKER I SEIU 3,723 3,909 4,104 4,309 4,524 4,750 4,987 MAINTENANCE WORKER II SEIU 4,188 4,397 4,617 4,848 5,090 5,345 5,612 MAINTENANCE WORKER III SEIU 4,699 4,934 5,181 5,440 5,712 5,998 6,298 POLICE CAPTAIN Mgmt & Conf 12,443 13,065 13,718 14,404 15,124 15,880 16,674 POLICE CHIEF Mgmt & Conf 15,261 16,024 16,825 17,666 18,549 19,476 20,450 POLICE LIEUTENANT PSA 10,962 11,510 12,086 12,690 13,324 13,990 14,690 POLICE OFFICER PBU 7,352 7,720 8,106 8,511 8,937 9,384 9,853 POLICE OFFICER TRAINEE PBU 7,352 7,720 8,106 8,511 8,937 9,384 9,853 POLICE SERGEANT PSA 8,982 9,431 9,903 10,398 10,918 11,464 12,037 PRINCIPAL PLANNER Mid-Mgmt 8,684 9,118 9,574 10,053 10,556 11,084 11,638 PROJECT MANAGER Mid-Mgmt 7,894 8,289 8,703 9,138 9,595 10,075 10,579 PUBLIC WORKS DIRECTOR Mgmt & Conf 12,814 13,455 14,128 14,834 15,576 16,355 17,173 PUBLIC WORKS DIRECTOR/CITY ENG Mgmt & Conf 13,455 14,128 14,834 15,576 16,355 17,173 18,032 PUBLIC WORKS INSPECTOR SEIU 5,361 5,629 5,910 6,206 6,516 6,842 7,184 RECREATION COORDINATOR SEIU 5,210 5,470 5,744 6,031 6,333 6,650 6,982 RECREATION DIVISION MANAGER Mid-Mgmt 8,526 8,952 9,400 9,870 10,364 10,882 11,426 RECREATION LEADER SEIU 3,302 3,467 3,640 3,822 4,013 4,214 4,425 SENIOR ACCOUNTANT Mid-Mgmt 8,278 8,692 9,127 9,583 10,062 10,565 11,093 SENIOR ADMIN ANALYST Mid-Mgmt 8,726 9,162 9,620 10,101 10,606 11,136 11,693 SENIOR BUILDING INSPECTOR SEIU 6,403 6,723 7,059 7,412 7,783 8,172 8,581 SENIOR BUILDING PERMIT TECHNICIAN SEIU 4,925 5,171 5,430 5,701 5,986 6,285 6,599 SENIOR CIVIL ENGINEER Mid-Mgmt 10,852 11,395 11,965 12,563 13,191 13,851 14,544 SENIOR MANAGEMENT ANALYST Mid-Mgmt 6,980 7,329 7,695 8,080 8,484 8,908 9,353 SENIOR PLANNER Mid-Mgmt 8,693 9,128 9,584 10,063 10,566 11,094 11,649 SENIOR PUBLIC WORKS INSPECTOR SEIU 6,061 6,364 6,682 7,016 7,367 7,735 8,122 SENIOR RECREATION LEADER SEIU 3,776 3,965 4,163 4,371 4,590 4,820 5,061 SENIOR WASTEWATER LAB ANALYST SEIU 5,363 5,631 5,913 6,209 6,519 6,845 7,187 SENIOR WASTEWATER PLANT OPERATOR SEIU 6,536 6,863 7,206 7,566 7,944 8,341 8,758 SERVICES SUPERVISOR PSA 6,667 7,000 7,350 7,717 8,103 8,508 8,933 WASTEWATER DIVISION MANAGER Mid-Mgmt 10,853 11,396 11,966 12,564 13,192 13,852 14,545 WASTEWATER LAB/ ENVIRO COMPLIANCE MGR Mid-Mgmt 7,632 8,014 8,415 8,836 9,278 9,742 10,229 WASTEWATER PLANT OPERATOR I SEIU 5,179 5,438 5,710 5,996 6,296 6,611 6,942 WASTEWATER PLANT OPERATOR II SEIU 5,690 5,975 6,274 6,588 6,917 7,263 7,626 WASTEWATER PLANT OPERATOR IN TRAINING SEIU 4,519 4,745 4,982 5,231 5,493 5,768 6,056 All rates represent the Monthly rate, unless expressly stated otherwise. The standard methodology converts monthly salary to an hourly rate using the following formula Hourly Rate = (Monthly Salary x 12) ÷ 2,080 hours. Rates become effective the first full pay period following the effective date.

Classification Bargaining Unit Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 ACCOUNTANT I SEIU 5,053 5,306 5,571 5,850 6,143 6,450 6,772 ACCOUNTANT II Mid-Mgmt 6,281 6,595 6,925 7,271 7,635 8,017 8,418 ACCOUNTING ASSISTANT SEIU 4,168 4,376 4,595 4,825 5,066 5,319 5,585 ADMINISTRATIVE ANALYST I SEIU 6,141 6,448 6,770 7,108 7,463 7,836 8,228 ADMINISTRATIVE ANALYST II SEIU 6,980 7,329 7,695 8,080 8,484 8,908 9,353 ADMINISTRATIVE ASSISTANT I SEIU 4,168 4,376 4,595 4,825 5,066 5,319 5,585 ADMINISTRATIVE ASSISTANT II SEIU 4,458 4,681 4,915 5,161 5,419 5,690 5,974 ADMINISTRATIVE ASSISTANT III SEIU 4,847 5,089 5,343 5,610 5,890 6,185 6,494 ADMINISTRATIVE SECRETARY /ANALYST SEIU 5,036 5,288 5,552 5,830 6,122 6,428 6,749 ADMINISTRATIVE SECRETARY/ANALYST Mgmt & Conf 5,134 5,391 5,661 5,944 6,241 6,553 6,881 ADMINISTRATIVE SERVICES DIRECTOR Mgmt & Conf 12,814 13,455 14,128 14,834 15,576 16,355 17,173 ASSISTANT CIVIL ENGINEER SEIU 6,611 6,942 7,289 7,653 8,036 8,438 8,860 ASSISTANT PLANNER SEIU 6,180 6,489 6,813 7,154 7,512 7,888 8,282 ASSISTANT TO THE CITY MANAGER Mgmt & Conf 8,693 9,128 9,584 10,063 10,566 11,094 11,649 ASSOCIATE CIVIL ENGINEER Mid-Mgmt 8,930 9,377 9,846 10,338 10,855 11,398 11,968 ASSOCIATE PLANNER SEIU 7,199 7,559 7,937 8,334 8,751 9,189 9,648 BUILDING INSPECTOR SEIU 5,750 6,038 6,340 6,657 6,990 7,339 7,706 BUILDING OFFICIAL Mid-Mgmt 10,119 10,625 11,156 11,714 12,300 12,915 13,561 BUILDING PERMIT TECHNICIAN SEIU 4,501 4,726 4,962 5,210 5,470 5,744 6,031 CITY CLERK Mgmt & Conf 8,693 9,128 9,584 10,063 10,566 11,094 11,649 CITY ENGINEER Mid-Mgmt 10,319 10,835 11,377 11,946 12,543 13,170 13,829 CITY MANAGER Contract 17,320 18,186 19,095 20,050 21,053 22,106 23,211 CIVIL ENGINEER Mid-Mgmt 8,347 8,764 9,202 9,662 10,145 10,652 11,185 CODE ENFORCEMENT OFFICER SEIU 5,299 5,564 5,842 6,134 6,441 6,763 7,101 COMMUNITY DEVELOPMENT DIRECTOR Mgmt & Conf 12,814 13,455 14,128 14,834 15,576 16,355 17,173 DEPUTY CITY CLERK Mgmt & Conf 6,030 6,331 6,648 6,980 7,329 7,695 8,080 EMERGENCY DISPATCH CLERK I PBU 5,101 5,356 5,624 5,905 6,200 6,510 6,836 EMERGENCY DISPATCH CLERK II PBU 5,653 5,936 6,233 6,545 6,872 7,216 7,577 EMERGENCY DISPATCH CLERK III PBU 5,766 6,054 6,357 6,675 7,009 7,359 7,727 ENGINEERING ASSOCIATE SEIU 5,705 5,990 6,290 6,604 6,934 7,281 7,645 ENGINEERING TECHNICIAN SEIU 4,967 5,215 5,476 5,750 6,037 6,339 6,656 FINANCE MANAGER Mgmt & Conf 9,287 9,751 10,239 10,751 11,289 11,853 12,446 HUMAN RESOURCES MANAGER Mgmt & Conf 9,287 9,751 10,239 10,751 11,289 11,853 12,446 LABORER SEIU 3,507 3,682 3,866 4,059 4,262 4,475 4,699
MAINTENANCE DIVISION MANAGER Mid-Mgmt 8,695 9,130 9,586 10,065 10,568 11,096 11,651 MAINTENANCE SUPERVISOR SEIU 5,416 5,687 5,971 6,270 6,584 6,913 7,259 CITY OF SCOTTS VALLEY SALARY SCHEDULE: 01/01/2025 - 06/30/25 (Police Update) All rates represent the Monthly rate, unless expressly stated otherwise. The standard methodology converts monthly salary to an hourly rate using the following formula Hourly Rate = (Monthly Salary x 12) ÷ 2,080 hours. Rates become effective the first full pay period following the effective date.

Classification Bargaining Unit Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 CITY OF SCOTTS VALLEY SALARY SCHEDULE: 01/01/2025 - 06/30/25 (Police Update) MAINTENANCE WORKER I SEIU 3,723 3,909 4,104 4,309 4,524 4,750 4,987 MAINTENANCE WORKER II SEIU 4,188 4,397 4,617 4,848 5,090 5,345 5,612 MAINTENANCE WORKER III SEIU 4,699 4,934 5,181 5,440 5,712 5,998 6,298 POLICE CAPTAIN Mgmt & Conf 12,443 13,065 13,718 14,404 15,124 15,880 16,674 POLICE CHIEF Mgmt & Conf 15,261 16,024 16,825 17,666 18,549 19,476 20,450 POLICE LIEUTENANT PSA 11,181 11,740 12,327 12,943 13,590 14,270 14,984 POLICE OFFICER PBU 7,499 7,874 8,268 8,681 9,115 9,571 10,050 POLICE OFFICER TRAINEE PBU 7,499 7,874 8,268 8,681 9,115 9,571 10,050 POLICE SERGEANT PSA 9,162 9,620 10,101 10,606 11,136 11,693 12,278 PRINCIPAL PLANNER Mid-Mgmt 8,684 9,118 9,574 10,053 10,556 11,084 11,638 PROJECT MANAGER Mid-Mgmt 7,894 8,289 8,703 9,138 9,595 10,075 10,579 PUBLIC WORKS DIRECTOR Mgmt & Conf 12,814 13,455 14,128 14,834 15,576 16,355 17,173 PUBLIC WORKS DIRECTOR/CITY ENG Mgmt & Conf 13,455 14,128 14,834 15,576 16,355 17,173 18,032 PUBLIC WORKS INSPECTOR SEIU 5,361 5,629 5,910 6,206 6,516 6,842 7,184 RECREATION COORDINATOR SEIU 5,210 5,470 5,744 6,031 6,333 6,650 6,982 RECREATION DIVISION MANAGER Mid-Mgmt 8,526 8,952 9,400 9,870 10,364 10,882 11,426 RECREATION LEADER SEIU 3,302 3,467 3,640 3,822 4,013 4,214 4,425 SENIOR ACCOUNTANT Mid-Mgmt 8,278 8,692 9,127 9,583 10,062 10,565 11,093 SENIOR ADMIN ANALYST Mid-Mgmt 8,726 9,162 9,620 10,101 10,606 11,136 11,693 SENIOR BUILDING INSPECTOR SEIU 6,403 6,723 7,059 7,412 7,783 8,172 8,581 SENIOR BUILDING PERMIT TECHNICIAN SEIU 4,925 5,171 5,430 5,701 5,986 6,285 6,599 SENIOR CIVIL ENGINEER Mid-Mgmt 10,852 11,395 11,965 12,563 13,191 13,851 14,544 SENIOR MANAGEMENT ANALYST Mid-Mgmt 6,980 7,329 7,695 8,080 8,484 8,908 9,353 SENIOR PLANNER Mid-Mgmt 8,693 9,128 9,584 10,063 10,566 11,094 11,649 SENIOR PUBLIC WORKS INSPECTOR SEIU 6,061 6,364 6,682 7,016 7,367 7,735 8,122 SENIOR RECREATION LEADER SEIU 3,776 3,965 4,163 4,371 4,590 4,820 5,061 SENIOR WASTEWATER LAB ANALYST SEIU 5,363 5,631 5,913 6,209 6,519 6,845 7,187 SENIOR WASTEWATER PLANT OPERATOR SEIU 6,536 6,863 7,206 7,566 7,944 8,341 8,758 SERVICES SUPERVISOR PSA 6,799 7,139 7,496 7,871 8,265 8,678 9,112 WASTEWATER DIVISION MANAGER Mid-Mgmt 10,853 11,396 11,966 12,564 13,192 13,852 14,545 WASTEWATER LAB/ ENVIRO COMPLIANCE MGR Mid-Mgmt 7,632 8,014 8,415 8,836 9,278 9,742 10,229 WASTEWATER PLANT OPERATOR I SEIU 5,179 5,438 5,710 5,996 6,296 6,611 6,942 WASTEWATER PLANT OPERATOR II SEIU 5,690 5,975 6,274 6,588 6,917 7,263 7,626 WASTEWATER PLANT OPERATOR IN TRAINING SEIU 4,519 4,745 4,982 5,231 5,493 5,768 6,056 All rates represent the Monthly rate, unless expressly stated otherwise. The standard methodology converts monthly salary to an hourly rate using the following formula Hourly Rate = (Monthly Salary x 12) ÷ 2,080 hours. Rates become effective the first full pay period following the effective date.

Classification Bargaining Unit Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 ACCOUNTANT I SEIU 5,309 5,574 5,853 6,146 6,453 6,776 7,115 ACCOUNTANT II Mid-Mgmt 6,503 6,828 7,169 7,527 7,903 8,298 8,713 ACCOUNTING ASSISTANT SEIU 4,293 4,508 4,733 4,970 5,218 5,479 5,753 ADMINISTRATIVE ANALYST I SEIU 6,324 6,640 6,972 7,321 7,687 8,071 8,475 ADMINISTRATIVE ANALYST II SEIU 7,190 7,549 7,926 8,322 8,738 9,175 9,634 ADMINISTRATIVE ASSISTANT I SEIU 4,293 4,508 4,733 4,970 5,218 5,479 5,753 ADMINISTRATIVE ASSISTANT II SEIU 4,683 4,917 5,163 5,421 5,692 5,977 6,276 ADMINISTRATIVE ASSISTANT III SEIU 5,141 5,398 5,668 5,951 6,249 6,561 6,889 ADMINISTRATIVE SECRETARY /ANALYST SEIU 5,290 5,554 5,832 6,124 6,430 6,752 7,090 ADMINISTRATIVE SECRETARY/ANALYST Mgmt & Conf 5,501 5,776 6,065 6,368 6,686 7,020 7,371 ADMINISTRATIVE SERVICES DIRECTOR Mgmt & Conf 13,464 14,137 14,844 15,586 16,365 17,183 18,042 ASSISTANT CIVIL ENGINEER SEIU 7,150 7,508 7,883 8,277 8,691 9,126 9,582 ASSISTANT PLANNER SEIU 6,492 6,817 7,158 7,516 7,892 8,287 8,701 ASSISTANT TO THE CITY MANAGER Mgmt & Conf 8,953 9,401 9,871 10,365 10,883 11,427 11,998 ASSOCIATE CIVIL ENGINEER Mid-Mgmt 9,243 9,705 10,190 10,700 11,235 11,797 12,387 ASSOCIATE PLANNER SEIU 7,452 7,825 8,216 8,627 9,058 9,511 9,987 BUILDING INSPECTOR SEIU 6,338 6,655 6,988 7,337 7,704 8,089 8,493 BUILDING OFFICIAL Mid-Mgmt 10,683 11,217 11,778 12,367 12,985 13,634 14,316 BUILDING PERMIT TECHNICIAN SEIU 4,820 5,061 5,314 5,580 5,859 6,152 6,460 CHIEF WASTEWATER PLANT OPERATOR Mid-Mgmt 8,498 8,923 9,369 9,837 10,329 10,845 11,387 CITY CLERK Mgmt & Conf 8,953 9,401 9,871 10,365 10,883 11,427 11,998 CITY ENGINEER Mid-Mgmt 11,214 11,775 12,364 12,982 13,631 14,313 15,029 CITY MANAGER Mgmt & Conf 17,840 18,732 19,669 20,652 21,685 22,769 23,907 CIVIL ENGINEER Mid-Mgmt 9,070 9,524 10,000 10,500 11,025 11,576 12,155 CODE ENFORCEMENT OFFICER SEIU 5,839 6,131 6,438 6,760 7,098 7,453 7,826 COMMUNITY DEVELOPMENT DIRECTOR Mgmt & Conf 13,464 14,137 14,844 15,586 16,365 17,183 18,042 DEPUTY CITY CLERK Mgmt & Conf 6,211 6,522 6,848 7,190 7,549 7,926 8,322 EMERGENCY DISPATCH CLERK I PBU 5,306 5,571 5,850 6,143 6,450 6,772 7,111 EMERGENCY DISPATCH CLERK II PBU 5,883 6,177 6,486 6,810 7,150 7,507 7,882 EMERGENCY DISPATCH CLERK III PBU 5,997 6,297 6,612 6,943 7,290 7,655 8,038 ENGINEERING ASSOCIATE SEIU 5,994 6,294 6,609 6,939 7,286 7,650 8,032 ENGINEERING TECHNICIAN SEIU 5,321 5,587 5,866 6,159 6,467 6,790 7,130 FINANCE MANAGER Mgmt & Conf 9,949 10,446 10,968 11,516 12,092 12,697 13,332 HUMAN RESOURCES MANAGER Mgmt & Conf 9,949 10,446 10,968 11,516 12,092 12,697 13,332 LABORER SEIU 3,685 3,869 4,062 4,265 4,478 4,702 4,937
MAINTENANCE DIVISION MANAGER Mid-Mgmt 9,358 9,826 10,317 10,833 11,375 11,944 12,541 MAINTENANCE SUPERVISOR SEIU 5,858 6,151 6,459 6,782 7,121 7,477 7,851 CITY OF SCOTTS VALLEY SALARY SCHEDULE: 07/01/2025 - 06/30/2026 All rates represent the Monthly rate, unless expressly stated otherwise. The standard methodology converts monthly salary to an hourly rate using the following formula Hourly Rate = (Monthly Salary x 12) ÷ 2,080 hours. Rates become effective the first full pay period following the effective date.

Classification Bargaining Unit Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 CITY OF SCOTTS VALLEY SALARY SCHEDULE: 07/01/2025 - 06/30/2026 MAINTENANCE WORKER I SEIU 3,987 4,186 4,395 4,615 4,846 5,088 5,342 MAINTENANCE WORKER II SEIU 4,486 4,710 4,946 5,193 5,453 5,726 6,012 MAINTENANCE WORKER III SEIU 4,938 5,185 5,444 5,716 6,002 6,302 6,617 POLICE CAPTAIN Mgmt & Conf 12,815 13,456 14,129 14,835 15,577 16,356 17,174 POLICE CHIEF Mgmt & Conf 15,719 16,505 17,330 18,196 19,106 20,061 21,064 POLICE LIEUTENANT PSA 11,862 12,455 13,078 13,732 14,419 15,140 15,897 POLICE OFFICER PBU 7,955 8,353 8,771 9,210 9,670 10,154 10,662 POLICE OFFICER TRAINEE PBU 7,955 8,353 8,771 9,210 9,670 10,154 10,662 POLICE SERGEANT PSA 9,720 10,206 10,716 11,252 11,815 12,406 13,026 PRINCIPAL PLANNER Mid-Mgmt 9,348 9,815 10,306 10,821 11,362 11,930 12,527 PROJECT MANAGER Mid-Mgmt 8,498 8,923 9,369 9,837 10,329 10,845 11,387 PUBLIC WORKS DIRECTOR Mgmt & Conf 13,464 14,137 14,844 15,586 16,365 17,183 18,042 PUBLIC WORKS DIRECTOR/CITY ENG Mgmt & Conf 14,137 14,844 15,586 16,365 17,183 18,042 18,944 PUBLIC WORKS INSPECTOR SEIU 5,687 5,971 6,270 6,584 6,913 7,259 7,622 RECREATION COORDINATOR SEIU 5,419 5,690 5,975 6,274 6,588 6,917 7,263 RECREATION DIVISION MANAGER Mid-Mgmt 9,001 9,451 9,924 10,420 10,941 11,488 12,062 RECREATION LEADER SEIU 3,673 3,857 4,050 4,252 4,465 4,688 4,922 SENIOR ACCOUNTANT Mid-Mgmt 8,567 8,995 9,445 9,917 10,413 10,934 11,481 SENIOR ADMIN ANALYST Mid-Mgmt 9,030 9,482 9,956 10,454 10,977 11,526 12,102 SENIOR BUILDING INSPECTOR SEIU 7,057 7,410 7,781 8,170 8,578 9,007 9,457 SENIOR BUILDING PERMIT TECHNICIAN SEIU 5,274 5,538 5,815 6,106 6,411 6,732 7,069 SENIOR CIVIL ENGINEER Mid-Mgmt 11,232 11,794 12,384 13,003 13,653 14,336 15,053 SENIOR MANAGEMENT ANALYST Mid-Mgmt 7,224 7,585 7,964 8,362 8,780 9,219 9,680 SENIOR PLANNER Mid-Mgmt 8,997 9,447 9,919 10,415 10,936 11,483 12,057 SENIOR PUBLIC WORKS INSPECTOR SEIU 6,368 6,686 7,020 7,371 7,740 8,127 8,533 SENIOR RECREATION LEADER SEIU 4,162 4,370 4,589 4,818 5,059 5,312 5,578 SENIOR WASTEWATER LAB ANALYST SEIU 5,634 5,916 6,212 6,523 6,849 7,191 7,551 SENIOR WASTEWATER PLANT OPERATOR SEIU 6,798 7,138 7,495 7,870 8,264 8,677 9,111 SERVICES SUPERVISOR PSA 7,074 7,428 7,799 8,189 8,598 9,028 9,479 WASTEWATER DIVISION MANAGER Mid-Mgmt 11,233 11,795 12,385 13,004 13,654 14,337 15,054 WASTEWATER LAB/ ENVIRO COMPLIANCE MGR Mid-Mgmt 8,137 8,544 8,971 9,420 9,891 10,386 10,905 WASTEWATER PLANT OPERATOR I SEIU 5,389 5,658 5,941 6,238 6,550 6,878 7,222 WASTEWATER PLANT OPERATOR II SEIU 5,919 6,215 6,526 6,852 7,195 7,555 7,933 WASTEWATER PLANT OPERATOR IN TRAINING SEIU 4,701 4,936 5,183 5,442 5,714 6,000 6,300 All rates represent the Monthly rate, unless expressly stated otherwise. The standard methodology converts monthly salary to an hourly rate using the following formula Hourly Rate = (Monthly Salary x 12) ÷ 2,080 hours. Rates become effective the first full pay period following the effective date.

Classification Bargaining Unit Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 ACCOUNTANT I SEIU 5,578 5,857 6,150 6,457 6,780 7,119 7,475 ACCOUNTANT II Mid-Mgmt 6,730 7,066 7,419 7,790 8,180 8,589 9,018 ACCOUNTING ASSISTANT SEIU 4,422 4,643 4,875 5,119 5,375 5,644 5,926 ADMINISTRATIVE ANALYST I SEIU 6,513 6,839 7,181 7,540 7,917 8,313 8,729 ADMINISTRATIVE ANALYST II SEIU 7,404 7,774 8,163 8,571 9,000 9,450 9,923 ADMINISTRATIVE ASSISTANT I SEIU 4,422 4,643 4,875 5,119 5,375 5,644 5,926 ADMINISTRATIVE ASSISTANT II SEIU 4,871 5,115 5,371 5,640 5,922 6,218 6,529 ADMINISTRATIVE ASSISTANT III SEIU 5,400 5,670 5,954 6,252 6,565 6,893 7,238 ADMINISTRATIVE SECRETARY /ANALYST SEIU 5,558 5,836 6,128 6,434 6,756 7,094 7,449 ADMINISTRATIVE SECRETARY/ANALYST Mgmt & Conf 5,666 5,949 6,246 6,558 6,886 7,230 7,592 ADMINISTRATIVE SERVICES DIRECTOR Mgmt & Conf 13,867 14,560 15,288 16,052 16,855 17,698 18,583 ASSISTANT CIVIL ENGINEER SEIU 7,733 8,120 8,526 8,952 9,400 9,870 10,363 ASSISTANT PLANNER SEIU 6,754 7,092 7,447 7,819 8,210 8,621 9,052 ASSISTANT TO THE CITY MANAGER Mgmt & Conf 9,223 9,684 10,168 10,676 11,210 11,770 12,358 ASSOCIATE CIVIL ENGINEER Mid-Mgmt 9,568 10,046 10,548 11,075 11,629 12,210 12,821 ASSOCIATE PLANNER SEIU 7,714 8,100 8,505 8,930 9,377 9,846 10,338 BUILDING INSPECTOR SEIU 6,723 7,059 7,412 7,783 8,172 8,581 9,010 BUILDING OFFICIAL Mid-Mgmt 11,057 11,610 12,190 12,799 13,439 14,111 14,817 BUILDING PERMIT TECHNICIAN SEIU 5,163 5,421 5,692 5,977 6,276 6,590 6,920 CHIEF WASTEWATER PLANT OPERATOR Mid-Mgmt 8,794 9,234 9,696 10,181 10,690 11,225 11,786 CITY CLERK Mgmt & Conf 9,223 9,684 10,168 10,676 11,210 11,770 12,358 CITY ENGINEER Mid-Mgmt 12,188 12,797 13,437 14,109 14,814 15,555 16,333 CITY MANAGER Mgmt & Conf 18,373 19,292 20,257 21,270 22,334 23,451 24,624 CIVIL ENGINEER Mid-Mgmt 9,857 10,350 10,867 11,410 11,981 12,580 13,209 CODE ENFORCEMENT OFFICER SEIU 6,195 6,505 6,830 7,172 7,531 7,908 8,303 COMMUNITY DEVELOPMENT DIRECTOR Mgmt & Conf 13,867 14,560 15,288 16,052 16,855 17,698 18,583 DEPUTY CITY CLERK Mgmt & Conf 6,396 6,716 7,052 7,405 7,775 8,164 8,572 EMERGENCY DISPATCH CLERK I PBU 5,574 5,853 6,146 6,453 6,776 7,115 7,471 EMERGENCY DISPATCH CLERK II PBU 6,179 6,488 6,812 7,153 7,511 7,887 8,281 EMERGENCY DISPATCH CLERK III PBU 6,302 6,617 6,948 7,295 7,660 8,043 8,445 ENGINEERING ASSOCIATE SEIU 6,296 6,611 6,942 7,289 7,653 8,036 8,438 ENGINEERING TECHNICIAN SEIU 5,645 5,927 6,223 6,534 6,861 7,204 7,564 FINANCE MANAGER Mgmt & Conf 10,657 11,190 11,749 12,336 12,953 13,601 14,281 HUMAN RESOURCES MANAGER Mgmt & Conf 10,657 11,190 11,749 12,336 12,953 13,601 14,281 LABORER SEIU 3,871 4,065 4,268 4,481 4,705 4,940 5,187
MAINTENANCE DIVISION MANAGER Mid-Mgmt 9,686 10,170 10,678 11,212 11,773 12,362 12,980 MAINTENANCE SUPERVISOR SEIU 6,336 6,653 6,986 7,335 7,702 8,087 8,491 CITY OF SCOTTS VALLEY SALARY SCHEDULE: 07/01/2026 - 12/31/2026 All rates represent the Monthly rate, unless expressly stated otherwise. The standard methodology converts monthly salary to an hourly rate using the following formula Hourly Rate = (Monthly Salary x 12) ÷ 2,080 hours. Rates become effective the first full pay period following the effective date.

Classification Bargaining Unit Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 CITY OF SCOTTS VALLEY SALARY SCHEDULE: 07/01/2026 - 12/31/2026 MAINTENANCE WORKER I SEIU 4,229 4,440 4,662 4,895 5,140 5,397 5,667 MAINTENANCE WORKER II SEIU 4,713 4,949 5,196 5,456 5,729 6,015 6,316 MAINTENANCE WORKER III SEIU 5,189 5,448 5,720 6,006 6,306 6,621 6,952 POLICE CAPTAIN Mgmt & Conf 13,200 13,860 14,553 15,281 16,045 16,847 17,689 POLICE CHIEF Mgmt & Conf 16,190 17,000 17,850 18,742 19,679 20,663 21,696 POLICE LIEUTENANT PSA 12,585 13,214 13,875 14,569 15,297 16,062 16,865 POLICE OFFICER PBU 8,440 8,862 9,305 9,770 10,259 10,772 11,311 POLICE OFFICER TRAINEE PBU 8,440 8,862 9,305 9,770 10,259 10,772 11,311 POLICE SERGEANT PSA 10,312 10,828 11,369 11,937 12,534 13,161 13,819 PRINCIPAL PLANNER Mid-Mgmt 9,675 10,159 10,667 11,200 11,760 12,348 12,965 PROJECT MANAGER Mid-Mgmt 8,794 9,234 9,696 10,181 10,690 11,225 11,786 PUBLIC WORKS DIRECTOR Mgmt & Conf 13,867 14,560 15,288 16,052 16,855 17,698 18,583 PUBLIC WORKS DIRECTOR/CITY ENG Mgmt & Conf 14,560 15,288 16,052 16,855 17,698 18,583 19,512 PUBLIC WORKS INSPECTOR SEIU 6,033 6,335 6,652 6,985 7,334 7,701 8,086 RECREATION COORDINATOR SEIU 5,638 5,920 6,216 6,527 6,853 7,196 7,556 RECREATION DIVISION MANAGER Mid-Mgmt 9,316 9,782 10,271 10,785 11,324 11,890 12,484 RECREATION LEADER SEIU 4,086 4,290 4,505 4,730 4,966 5,214 5,475 SENIOR ACCOUNTANT Mid-Mgmt 8,867 9,310 9,776 10,265 10,778 11,317 11,883 SENIOR ADMIN ANALYST Mid-Mgmt 9,348 9,815 10,306 10,821 11,362 11,930 12,526 SENIOR BUILDING INSPECTOR SEIU 7,487 7,861 8,254 8,667 9,100 9,555 10,033 SENIOR BUILDING PERMIT TECHNICIAN SEIU 5,650 5,933 6,230 6,541 6,868 7,211 7,572 SENIOR CIVIL ENGINEER Mid-Mgmt 11,626 12,207 12,817 13,458 14,131 14,838 15,580 SENIOR MANAGEMENT ANALYST Mid-Mgmt 7,476 7,850 8,243 8,655 9,088 9,542 10,019 SENIOR PLANNER Mid-Mgmt 9,312 9,778 10,267 10,780 11,319 11,885 12,479 SENIOR PUBLIC WORKS INSPECTOR SEIU 6,690 7,024 7,375 7,744 8,131 8,538 8,965 SENIOR RECREATION LEADER SEIU 4,587 4,816 5,057 5,310 5,576 5,855 6,148 SENIOR WASTEWATER LAB ANALYST SEIU 5,919 6,215 6,526 6,852 7,195 7,555 7,933 SENIOR WASTEWATER PLANT OPERATOR SEIU 7,073 7,427 7,798 8,188 8,597 9,027 9,478 SERVICES SUPERVISOR PSA 7,431 7,803 8,193 8,603 9,033 9,485 9,959 WASTEWATER DIVISION MANAGER Mid-Mgmt 11,627 12,208 12,818 13,459 14,132 14,839 15,581 WASTEWATER LAB/ ENVIRO COMPLIANCE MGR Mid-Mgmt 8,675 9,109 9,564 10,042 10,544 11,071 11,625 WASTEWATER PLANT OPERATOR I SEIU 5,607 5,887 6,181 6,490 6,814 7,155 7,513 WASTEWATER PLANT OPERATOR II SEIU 6,159 6,467 6,790 7,130 7,486 7,860 8,253 WASTEWATER PLANT OPERATOR IN TRAINING SEIU 4,890 5,135 5,392 5,662 5,945 6,242 6,554 All rates represent the Monthly rate, unless expressly stated otherwise. The standard methodology converts monthly salary to an hourly rate using the following formula Hourly Rate = (Monthly Salary x 12) ÷ 2,080 hours. Rates become effective the first full pay period following the effective date.

Classification Bargaining Unit Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 ACCOUNTANT I SEIU 5,578 5,857 6,150 6,457 6,780 7,119 7,475 ACCOUNTANT II Mid-Mgmt 6,730 7,066 7,419 7,790 8,180 8,589 9,018 ACCOUNTING ASSISTANT SEIU 4,422 4,643 4,875 5,119 5,375 5,644 5,926 ADMINISTRATIVE ANALYST I SEIU 6,513 6,839 7,181 7,540 7,917 8,313 8,729 ADMINISTRATIVE ANALYST II SEIU 7,404 7,774 8,163 8,571 9,000 9,450 9,923 ADMINISTRATIVE ASSISTANT I SEIU 4,422 4,643 4,875 5,119 5,375 5,644 5,926 ADMINISTRATIVE ASSISTANT II SEIU 4,871 5,115 5,371 5,640 5,922 6,218 6,529 ADMINISTRATIVE ASSISTANT III SEIU 5,400 5,670 5,954 6,252 6,565 6,893 7,238 ADMINISTRATIVE SECRETARY /ANALYST SEIU 5,558 5,836 6,128 6,434 6,756 7,094 7,449 ADMINISTRATIVE SECRETARY/ANALYST Mgmt & Conf 5,666 5,949 6,246 6,558 6,886 7,230 7,592 ADMINISTRATIVE SERVICES DIRECTOR Mgmt & Conf 13,867 14,560 15,288 16,052 16,855 17,698 18,583 ASSISTANT CIVIL ENGINEER SEIU 7,733 8,120 8,526 8,952 9,400 9,870 10,363 ASSISTANT PLANNER SEIU 6,754 7,092 7,447 7,819 8,210 8,621 9,052 ASSISTANT TO THE CITY MANAGER Mgmt & Conf 9,223 9,684 10,168 10,676 11,210 11,770 12,358 ASSOCIATE CIVIL ENGINEER Mid-Mgmt 9,568 10,046 10,548 11,075 11,629 12,210 12,821 ASSOCIATE PLANNER SEIU 7,714 8,100 8,505 8,930 9,377 9,846 10,338 BUILDING INSPECTOR SEIU 6,723 7,059 7,412 7,783 8,172 8,581 9,010 BUILDING OFFICIAL Mid-Mgmt 11,057 11,610 12,190 12,799 13,439 14,111 14,817 BUILDING PERMIT TECHNICIAN SEIU 5,163 5,421 5,692 5,977 6,276 6,590 6,920 CHIEF WASTEWATER PLANT OPERATOR Mid-Mgmt 8,794 9,234 9,696 10,181 10,690 11,225 11,786 CITY CLERK Mgmt & Conf 9,223 9,684 10,168 10,676 11,210 11,770 12,358 CITY ENGINEER Mid-Mgmt 12,188 12,797 13,437 14,109 14,814 15,555 16,333 CITY MANAGER Mgmt & Conf 18,373 19,292 20,257 21,270 22,334 23,451 24,624 CIVIL ENGINEER Mid-Mgmt 9,857 10,350 10,867 11,410 11,981 12,580 13,209 CODE ENFORCEMENT OFFICER SEIU 6,195 6,505 6,830 7,172 7,531 7,908 8,303 COMMUNITY DEVELOPMENT DIRECTOR Mgmt & Conf 13,867 14,560 15,288 16,052 16,855 17,698 18,583 DEPUTY CITY CLERK Mgmt & Conf 6,396 6,716 7,052 7,405 7,775 8,164 8,572 EMERGENCY DISPATCH CLERK I PBU 5,686 5,970 6,269 6,582 6,911 7,257 7,620 EMERGENCY DISPATCH CLERK II PBU 6,304 6,619 6,950 7,297 7,662 8,045 8,447 EMERGENCY DISPATCH CLERK III PBU 6,429 6,750 7,087 7,441 7,813 8,204 8,614 ENGINEERING ASSOCIATE SEIU 6,296 6,611 6,942 7,289 7,653 8,036 8,438 ENGINEERING TECHNICIAN SEIU 5,645 5,927 6,223 6,534 6,861 7,204 7,564 FINANCE MANAGER Mgmt & Conf 10,657 11,190 11,749 12,336 12,953 13,601 14,281 HUMAN RESOURCES MANAGER Mgmt & Conf 10,657 11,190 11,749 12,336 12,953 13,601 14,281 LABORER SEIU 3,871 4,065 4,268 4,481 4,705 4,940 5,187
MAINTENANCE DIVISION MANAGER Mid-Mgmt 9,686 10,170 10,678 11,212 11,773 12,362 12,980 MAINTENANCE SUPERVISOR SEIU 6,336 6,653 6,986 7,335 7,702 8,087 8,491 CITY OF SCOTTS VALLEY SALARY SCHEDULE: 01/01/2027 - 06/30/2027 (Police Update) All rates represent the Monthly rate, unless expressly stated otherwise. The standard methodology converts monthly salary to an hourly rate using the following formula Hourly Rate = (Monthly Salary x 12) ÷ 2,080 hours. Rates become effective the first full pay period following the effective date.

Classification Bargaining Unit Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 CITY OF SCOTTS VALLEY SALARY SCHEDULE: 01/01/2027 - 06/30/2027 (Police Update) MAINTENANCE WORKER I SEIU 4,229 4,440 4,662 4,895 5,140 5,397 5,667 MAINTENANCE WORKER II SEIU 4,713 4,949 5,196 5,456 5,729 6,015 6,316 MAINTENANCE WORKER III SEIU 5,189 5,448 5,720 6,006 6,306 6,621 6,952 POLICE CAPTAIN Mgmt & Conf 13,200 13,860 14,553 15,281 16,045 16,847 17,689 POLICE CHIEF Mgmt & Conf 16,190 17,000 17,850 18,742 19,679 20,663 21,696 POLICE LIEUTENANT PSA 12,836 13,478 14,152 14,860 15,603 16,383 17,202 POLICE OFFICER PBU 8,610 9,040 9,492 9,967 10,465 10,988 11,537 POLICE OFFICER TRAINEE PBU 8,610 9,040 9,492 9,967 10,465 10,988 11,537 POLICE SERGEANT PSA 10,518 11,044 11,596 12,176 12,785 13,424 14,095 PRINCIPAL PLANNER Mid-Mgmt 9,675 10,159 10,667 11,200 11,760 12,348 12,965 PROJECT MANAGER Mid-Mgmt 8,794 9,234 9,696 10,181 10,690 11,225 11,786 PUBLIC WORKS DIRECTOR Mgmt & Conf 13,867 14,560 15,288 16,052 16,855 17,698 18,583 PUBLIC WORKS DIRECTOR/CITY ENG Mgmt & Conf 14,560 15,288 16,052 16,855 17,698 18,583 19,512 PUBLIC WORKS INSPECTOR SEIU 6,033 6,335 6,652 6,985 7,334 7,701 8,086 RECREATION COORDINATOR SEIU 5,638 5,920 6,216 6,527 6,853 7,196 7,556 RECREATION DIVISION MANAGER Mid-Mgmt 9,316 9,782 10,271 10,785 11,324 11,890 12,484 RECREATION LEADER SEIU 4,086 4,290 4,505 4,730 4,966 5,214 5,475 SENIOR ACCOUNTANT Mid-Mgmt 8,867 9,310 9,776 10,265 10,778 11,317 11,883 SENIOR ADMIN ANALYST Mid-Mgmt 9,348 9,815 10,306 10,821 11,362 11,930 12,526 SENIOR BUILDING INSPECTOR SEIU 7,487 7,861 8,254 8,667 9,100 9,555 10,033 SENIOR BUILDING PERMIT TECHNICIAN SEIU 5,650 5,933 6,230 6,541 6,868 7,211 7,572 SENIOR CIVIL ENGINEER Mid-Mgmt 11,626 12,207 12,817 13,458 14,131 14,838 15,580 SENIOR MANAGEMENT ANALYST Mid-Mgmt 7,476 7,850 8,243 8,655 9,088 9,542 10,019 SENIOR PLANNER Mid-Mgmt 9,312 9,778 10,267 10,780 11,319 11,885 12,479 SENIOR PUBLIC WORKS INSPECTOR SEIU 6,690 7,024 7,375 7,744 8,131 8,538 8,965 SENIOR RECREATION LEADER SEIU 4,587 4,816 5,057 5,310 5,576 5,855 6,148 SENIOR WASTEWATER LAB ANALYST SEIU 5,919 6,215 6,526 6,852 7,195 7,555 7,933 SENIOR WASTEWATER PLANT OPERATOR SEIU 7,073 7,427 7,798 8,188 8,597 9,027 9,478 SERVICES SUPERVISOR PSA 7,579 7,958 8,356 8,774 9,213 9,674 10,158 WASTEWATER DIVISION MANAGER Mid-Mgmt 11,627 12,208 12,818 13,459 14,132 14,839 15,581 WASTEWATER LAB/ ENVIRO COMPLIANCE MGR Mid-Mgmt 8,675 9,109 9,564 10,042 10,544 11,071 11,625 WASTEWATER PLANT OPERATOR I SEIU 5,607 5,887 6,181 6,490 6,814 7,155 7,513 WASTEWATER PLANT OPERATOR II SEIU 6,159 6,467 6,790 7,130 7,486 7,860 8,253 WASTEWATER PLANT OPERATOR IN TRAINING SEIU 4,890 5,135 5,392 5,662 5,945 6,242 6,554 All rates represent the Monthly rate, unless expressly stated otherwise. The standard methodology converts monthly salary to an hourly rate using the following formula Hourly Rate = (Monthly Salary x 12) ÷ 2,080 hours. Rates become effective the first full pay period following the effective date.

AGENDA ITEM 4.

DATE: 12/3/2025
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 12/3/2025
TO: Honorable Mayor and City Council
FROM: Dat Nguyen, Senior Civil Engineer
APPROVED: Mali LaGoe, City Manager
SUBJECT: Approve Resolution No. 2076.1 Continuing the Declared Emergency for the Glenwood Drive Slide Pursuant to Public Contract Code §1102 and Authorizing the City Manager to Cause the Repair of the Slide Pursuant to Public Contract Code §§22035 and 22050.

SUMMARY OF ISSUE
Beginning on Wednesday, November 12, 2025, the City of Scotts Valley experienced a significant storm event associated with an atmospheric river system that produced nearly three inches of rainfall within a 24-hour period. The intensity and duration of this event exceeded the capacity of local drainage systems, leading to rapid debris accumulation and blockage of roadside drainage inlets, which prevented proper stormwater conveyance.

As drainage infrastructure became compromised, large volumes of uncontrolled stormwater flowed along the east road edge of Upper Glenwood Drive, approximately 365 feet south of Summerhill Road. These flows combined with surface sheet runoff, contributing to excessive soil saturation. The prolonged saturation resulted in a mudslide affecting approximately thirty (30) linear feet of the roadway edge.

The slide caused soil to break loose and move roughly seventeen (17) feet downslope, undermining the roadway and creating hazardous conditions for the traveling public. The bike lane was undermined by approximately two (2) feet, resulting in its closure and forcing bicyclists to share a particularly winding section of Glenwood Drive with vehicle traffic.

Although the roadway currently remains open, additional rainfall is expected through the upcoming weekend, and despite temporary erosion-control measures, there remains a significant risk of lane closure.

Following the storm event, staff conducted a more detailed visual inspection and discovered that Scotts Valley Water District’s eight-inch (8") asbestos-cement (AC) water main with pushjoints had become exposed as a result of the slide. The water main was located approximately two (2) feet from the pavement edge with only three (3) feet of remaining cover. Scotts Valley Water District immediately isolated the affected segment to prevent a potential catastrophic failure. According to Operations Manager Nate Gillespie, if this segment remained active, “any additional main breaks in the Canham Road vicinity would sever water service entirely to the Sandhill neighborhood and the entire Northridge neighborhood off Glenwood Drive.”

These conditions pose a significant and immediate threat to public health, safety, and property.

Rapid emergency action is required to stabilize the site, assess geotechnical hazards, and implement both temporary and permanent repairs. The severity of the weather event, the resulting slope failure, and the risks to critical infrastructure exceed the City’s normal operational capabilities and necessitate the mobilization of additional resources, personnel, and contracting authority to respond effectively.

TECHNICAL FINDINGS & NEED FOR EMERGENCY ACTION
On November 17, 2025, geotechnical engineer, Pacific Crest Engineering, performed an initial field assessment of the washout area. The engineer confirmed that the slide extends approximately forty (40) feet along the downhill (eastern) edge of Glenwood Drive and has created a near-vertical drop from the roadway surface to the drainage channel below. The roadway sits roughly fifteen to twenty (15–20) feet above the channel, and the embankment is significantly over-steepened, unstable, and subject to continued movement.

Fresh cracking was observed within the northbound travel lane, including a major crack approximately fifty (50) feet in length, indicating ongoing subsurface instability beneath the roadway. Temporary protective measures—plastic sheeting, sandbags, and straw wattles— were placed to slow surficial erosion; however, the geotechnical engineer concluded that these measures are insufficient to prevent additional failure under continued rainfall.

Pacific Crest further identified a critical threat to the eight-inch (8") asbestos-cement water main located within the eastern bike lane. The engineer determined that the pipe is at risk of being undermined by additional soil loss. This assessment aligns with the Water District’s determination that any further movement or a main break in the vicinity would result in complete water service loss to several neighborhoods, including Sandhill and Northridge.

Based on these observations, the geotechnical engineer recommended immediate emergency actions, including:
• Installation of temporary shoring, such as sheet piles, to buttress the roadway section and protect the water main from further rain events;
• Authorization to proceed with a geotechnical soils investigation to guide emergency stabilization and repair design; and
• Immediate engagement of a civil/structural engineer and surveyor to design the repair, anticipated to require a concrete/shotcrete-faced MSE wall or soldier-pile retaining wall, depending on site geometry.

The geotechnical engineer concluded that the current condition constitutes an emergency, as the slope is unstable and the roadway and water main remain vulnerable to further failure. Any delay in stabilization and repair would significantly increase the risk of roadway collapse, utility failure, and closure of this critical transportation corridor.Typically, improvements to public facilities require the City to engage in the bidding process to select the contract to perform the improvements. Such process takes at least 6 weeks and requires the preparation for plans prior to advertising the project. Due to the risks associated with the slide, repair work must be performed immediately.

On November 19th, the City Council authorized the City Manager to take all actions necessary to secure contracts and mobilize resources to complete emergency repairs without formal competitive bidding pursuant to Public Contract Code §§22035 and 22050. Since then, Public Works staff have consulted with Anderson Pacific regarding the feasibility of sheet piles and concluded that installing temporary gabion basket or similar wall is a preferred solution due to constructability challenges in the area, including overhead utility lines, that would make using a crane difficult to implement quickly. In addition, a sheet pile wall would require a full geotechnical report, which will take time to develop. Staff also consulted with the California Department of Fish and Wildlife who support implementing an immediate temporary solution to address the safety concern.

Pursuant to Public Contract Code §22050(b)(3), "if a person with authority delegated by the City Council to take steps necessary to address an emergency takes any action to address the emergency, that person must report to the City Council the reasons justifying why the emergency will not permit delay resulting from the competitive bidding process and the action is necessary to respond to the emergency. Since the City Council authorized the City Manager to take actions necessary to address the emergency without following the competitive bidding process, the City Manager and the Public Works Department worked with Pacific Crest Engineering to determine the appropriate temporary measures to address the immediate risks.

The City Manager and the Public Works Department have also worked closely with Pacific Crest, Anderson Pacific and California Fish and Wildlife to determine the most appropriate measures to stabilize the road and the hillside. Staff anticipates entering into a contract with Anderson Pacific in the next week for the construction of the wall with work to proceed as soon as possible. As detailed above and in the report from Pacific Crest, immediate action must be taken to stabilize the road and the hillside while a permanent solution is designed.

As required by Public Contracting Code §22050(c)(2), the City Council must determine at every regularly scheduled meeting, by a fourth-fifths vote, if there is a need to continue the emergency. The initial response effort has prevented further damage to the road, however, the potential for additional sliding remains and future rain events could worsen conditions if we do not proceed with immediate stabilization. Staff is currently coordinating with a contractor to confirm the constructability and the construction duration of installing the wall as the preferred emergency solution. Such work will be performed on a time and materials basis. Until such time as the wall is installed, the immediate threat to the road and the hillside remain.

FISCAL IMPACT
The cost of the slide stabilization and temporary repair is anticipated to exceed $300,000. The City may request disaster assistance from CalOES to assist with the cost of repairs if the actual cost exceeds the City's resources.

STAFF RECOMMENDATION
Staff recommends City Council approve Resolution No. 2076.1, continuing the declared emergency pursuant to Public Contract Code Section §1102 resulting from the slide on Glenwood Road and authorizing the City Manager to take all actions necessary to secure contracts and mobilize resources to complete emergency repairs without formal competitive bidding pursuant to Public Contract Code §§22035 and 22050.

TABLE OF CONTENTS

1. Pacific Crest Engineering Report

2. Resolution No. 2076.1 Emergency Repair Glenwood Drive

3. Resolution No. 2076 Emergency Repair Glenwood DriveKP

G E O T E C H N I C A L | E N V I R O N M E N T A L | C H E M IC A L | M A T E R I A L T E S T I N G | S P E C I A L I N S P E C T I O N S 444 AIRPORT BLVD., SUITE 106 | WATSONVILLE, CA 95076 | PHONE 831-722-9446 | WWW.4PACIFIC-CREST.COM

FIELD REPORT
Date: 11/17/25 Project No: TBD
Project: Glenwood Drive Washout Location: Scotts Valley, CA Client: City of Scotts Valley Contractor: Anderson Pacific Weather: Drizzly/low to mid 50’s Time on Site: 9:15am –10:00 am

Present: Contractor / Representative of the City of Scotts Valley As requested, I arrived onsite for a meeting regarding the roadway washout on Glenwood Drive located between its intersection of Summerhill Drive and its intersection of Canham Road. Multiple employees from the City of Scotts Valley Public Works Department, the contractor (Anderson Pacific), as well as the City of Scotts Valley Water Department were in attendance.

Initial Observations
The washout is on the downhill (eastern) side of Glenwood Drive and is approximately 40’ in length. The washout left the edge of the road in a near vertical condition, with the roadway surface being approximately 15-20’ above the toe of the drainage channel below. A water main that services the surrounding neighborhood is located within the eastern bike lane and to my understanding is at risk of being undermined. At the time of the meeting the slide surface was covered with plastic, sandbags and straw waddles to prevent further surficial erosion of the slope face.

Fresh cracks were observed in within the asphalt on in the northbound lane of Glenwood Drive, with one crack extending approximately 50’ in length. In my opinion the current over steepened embankment is unstable and in need of emergency repair.

Discussion
Based on the discussions with the team and review of the geometry of the site, the most appropriate repair schemes for the site include a concrete/shotcrete faced MSE wall or soldier pile retaining wall. It is our understanding that the city’s preference would be to design something that could also be permitted for the long-term repair. The geometry of the site is one of the primary design considerations for the choice of wall type.

Additionally, buttressing the water main with temporary shoring such as sheet piles was discussed at the meeting. Given the critical nature of the water main we agree that installation of temporary shoring is recommend.

Immediate Action Items

1. Contract a civil/structural/surveyor to immediately survey the site and define the necessary scope of the soils report.

Glenwood Drive Washout Page 2
November 17, 2025

2. Install temporary shoring (sheet piles or similar) per the contractor’s design to buttress existing roadway and water main.

3. Provide authorization for Pacific Crest to proceed with soils investigation.

This letter is our current and complete understanding of the project at this time. We appreciate the opportunity to be of service and should be notified of any changes to the project as outlined above. Should you have any questions, we can be reached at (831) 722- 9446.

Signed:

Chris Johnson, PE
Principal Civil Engineer
CE 82630, Exp 9/30/2026

RESOLUTION NO. 2076.1

RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SCOTTS VALLEY CONTINUING THE DECLARED EMERGENCY FOR THE GLENWOOD DRIVE SLIDE PURSUANT TO PUBLIC CONTRACT CODE §1102 AND

AUTHORIZING THE CITY MANAGER TO CAUSE THE REPAIR OF THE SLIDE PURSUANT TO PUBLIC CONTRACT CODE §§22035 AND 22050
WHEREAS, beginning on Wednesday, November 12, 2025, the City of Scotts Valley experienced a significant storm associated with an atmospheric river, producing nearly three inches of rainfall in 24 hours; and
WHEREAS, the intensity of the storm exceeded local drainage capacity, causing debris accumulation and blockage of roadside inlets, which impeded stormwater flow; and WHEREAS, uncontrolled stormwater along the east edge of Upper Glenwood Drive combined with sheet runoff, saturating soil and causing a mudslide affecting approximately 30 linear feet of the roadway, undermining the pavement, and creating hazardous conditions; and
WHEREAS, the bike lane was undermined by approximately two feet, requiring closure and forcing bicyclists to share the roadway with vehicles; and WHEREAS, Scotts Valley Water District’s eight-inch asbestos-cement water main with push-joints became exposed, with only three feet of cover remaining, creating a risk of catastrophic failure that could disrupt water service to nearby neighborhoods; and WHEREAS, these conditions pose an immediate threat to public health, safety, and property, necessitating rapid emergency action to stabilize the site, assess hazards, and implement temporary and permanent repairs; and
WHEREAS, temporary repair solutions have been evaluated in consultation with a geotechnical engineer, qualified contractor and the California Department of Fish and Wildlife; and
WHEREAS, emergency repairs are anticipated to commence in the coming days to stabilize the roadway and prevent further damage; and
WHEREAS, the severity of the event and resulting slope failure exceed the City’s normal operational capabilities, requiring mobilization of additional resources and contracting authority; and
WHEREAS, Public Contract Code §22050 permits the City, by a four-fifths vote, to repair or replace a public facility in an emergency without formal bidding, and §1102 defines an “emergency” as a sudden occurrence requiring immediate action to prevent loss of life, property, or essential services; and

WHEREAS, on November 19, 2025, pursuant to Resolution No. 2076, the City Council found such an emergency existed and authorized the City Manager to take all actions necessary to secure contracts and mobilize resources to complete the emergency repairs without formal competitive bidding; and
WHEREAS, since that time, the City Manager and the Public Works Director has worked with various consultants, contractors and public agencies to determine the most appropriate repairs to address the emergency situation; and WHEREAS, pursuant to Public Contract Code §22050, when the City Manager takes any action related to the emergency, she must report back to the City Council and the City Council must determine at every regular meeting whether the emergency conditions still exist that will not permit delay for competitive bidding and that immediate action is necessary to protect public health, safety, and property; and WHEREAS, a geotechnical engineer has determined that the slide has created an oversteepened and unstable embankment, exposed a critical water main, and produced roadway cracking indicating ongoing movement, and has recommended immediate emergency shoring, geotechnical investigation and repair to prevent further failure and protect public infrastructure and such work is currently underway but until the work is completed, the emergency condition still exists.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED that the City Council of the City of Scotts Valley hereby:

1. Continues the emergency pursuant to Public Contract Code §1102 and authorizes the immediate repair and stabilization of the affected portion of Upper Glenwood Drive.

2. Pursuant to Public Contract Code §§22035 and 22050, authorizes the City Manager to take all actions necessary to secure contracts and mobilize resources to complete emergency repairs without formal competitive bidding.

The above and foregoing resolution was duly and regularly adopted by the City Council of the City of Scotts Valley at a regular meeting held on the 3rd day of December 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Approved:_____________________________
Derek Timm, Mayor

Attest: ___________________________
Cathie Simonovich, City Clerk

RESOLUTION NO. 2076

RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SCOTTS VALLEY DECLARING AN EMERGENCY FOR THE GLENWOOD DRIVE SLIDE PURSUANT TO PUBLIC CONTRACT CODE §1102 AND

AUTHORIZING THE CITY MANAGER TO CAUSE THE REPAIR OF THE SLIDE PURSUANT TO PUBLIC CONTRACT CODE §§22035 AND 22050
WHEREAS, beginning on Wednesday, November 12, 2025, the City of Scotts Valley experienced a significant storm associated with an atmospheric river, producing nearly three inches of rainfall in 24 hours; and
WHEREAS, the intensity of the storm exceeded local drainage capacity, causing debris accumulation and blockage of roadside inlets, which impeded stormwater flow; and WHEREAS, uncontrolled stormwater along the east edge of Upper Glenwood Drive combined with sheet runoff, saturating soil and causing a mudslide affecting approximately 30 linear feet of the roadway, undermining the pavement, and creating hazardous conditions; and
WHEREAS, the bike lane was undermined by approximately two feet, requiring closure and forcing bicyclists to share the roadway with vehicles; and WHEREAS, Scotts Valley Water District’s eight-inch asbestos-cement water main with push-joints became exposed, with only three feet of cover remaining, creating a risk of catastrophic failure that could disrupt water service to nearby neighborhoods; and WHEREAS, these conditions pose an immediate threat to public health, safety, and property, necessitating rapid emergency action to stabilize the site, assess hazards, and implement temporary and permanent repairs; and
WHEREAS, the severity of the event and resulting slope failure exceed the City’s normal operational capabilities, requiring mobilization of additional resources and contracting authority; and
WHEREAS, Public Contract Code §22050 permits the City, by a four-fifths vote, to repair or replace a public facility in an emergency without formal bidding, and §1102 defines an “emergency” as a sudden occurrence requiring immediate action to prevent loss of life, property, or essential services; and
WHEREAS, the City Council finds that the emergency will not permit delay for competitive bidding and that immediate action is necessary to protect public health, safety, and property; and
WHEREAS, a geotechnical engineer has determined that the slide has created an oversteepened and unstable embankment, exposed a critical water main, and produced Docusign Envelope ID: 36883DEA-6248-4DDD-9973-041F934738A8

roadway cracking indicating ongoing movement, and has recommended immediate emergency shoring, geotechnical investigation and repair to prevent further failure and protect public infrastructure.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED that the City Council of the City of Scotts Valley hereby:

1. Declares an emergency pursuant to Public Contract Code §1102 and authorizes the immediate repair and stabilization of the affected portion of Upper Glenwood Drive.

2. Pursuant to Public Contract Code §§22035 and 22050, authorizes the City Manager to take all actions necessary to secure contracts and mobilize resources to complete emergency repairs without formal competitive bidding.

The above and foregoing resolution was duly and regularly adopted by the City Council of the City of Scotts Valley at a special meeting held on the 19th day of November 2025 by the following vote:

AYES: TIMM, LIND, CLARK, JETT, WIMP
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
Approved:_____________________________
Derek Timm, Mayor
Attest: ___________________________
Cathie Simonovich, City Clerk
Docusign Envelope ID: 36883DEA-6248-4DDD-9973-041F934738A8

AGENDA ITEM 5.

DATE: 12/3/2025
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 12/3/2025
TO: Honorable Mayor and City Council
FROM: Allison Pfefferkorn, Recreation Division Manager
APPROVED: Mali LaGoe, City Manager
SUBJECT: Approve contract amendment with Ross Recreation Equipment, Inc. to add 10% contingency and amend scope of work to include unanticipated drainage work

SUMMARY OF ISSUE
In 2023, the City was awarded a Congressional Community Project Grant sponsored by thenCongressional Representative Anna Eshoo, in the amount of $750,000 to replace the 6–12- year-old playground in Skypark. The grant is administered by the federal Housing and Urban Development (HUD) Department. As part of the project requirements, the City engaged PlaceWorks to conduct the required environmental review at a cost of $11,770, resulting in $738,230 in remaining grant funds available for construction.

On September 17, 2025, the City Council approved a contract with Ross Recreation, Inc in the amount of $668,599.32 for the Skypark Playground Replacement Project. The project includes demolition of the existing playground structure, procurement and installation of new play equipment, and accessibility improvements.

Construction began November 3, 2025 with the demolition of the existing playground. During this process, it was discovered that no drainage system previously existed. To protect the new playground, staff designed a solution that includes perforated pipes which will collect and convey stormwater to an existing drainage inlet nearby.

Due to the unanticipated lack of drainage under the existing playground area, it is necessary to include the additional work needed to install drainage. The original construction contract did not include a contingency. By including a contingency now, those funds can be used to cover the cost of the additional work.

Once the drainage has been installed, the playground construction will resume and is estimated to be completed within 2 weeks, weather permitting.

FISCAL IMPACT
The 10% contingency results in an additional $66,859.93 added to the contract. This amount is reflected in the contract amendment attached to this report to bring the total contract price to

$735,459.25, an amount which is still within the overall budget amount. The drainage work will cost $35,125 which would be covered with the added 10% contingency of the contract.

STAFF RECOMMENDATION
It is recommended that the City Council authorize the City Manager to enter into an amendment to the agreement with Ross Recreation for the Skypark Playground Replacement Project, increasing the total not to exceed cost of the contract to $735,459.25 and adding the necessary drainage work to the scope of work.

TABLE OF CONTENTS

1. Ross Recreation, Inc. Amendment to Public Works Contract

2. Exhibit A-1-Additional Scope of Work

AMENDMENT TO PUBLIC WORKS CONTRACT
This Amendment to Public Works Contract (the “Amendment”) is entered into by and between the City of Scotts Valley, a municipal corporation, hereinafter referred to as “CITY” and Ross Recreation Equipment, Inc, hereinafter referred to as “CONTRACTOR”.

RECITALS
WHEREAS, on September 17, 2025, the CITY and CONTRACTOR entered into that certain Agreement for the construction of the Skypark 6-12 year old Playground Replacement; and
WHEREAS, the parties desire to amend the Agreement to authorize additional drainage work that was not previously contemplated and include a 10% contingency in compensation, a portion of which shall be used for the additional drainage work.

NOW, THEREFORE, in consideration of the recitals and the mutual promises contained herein, City and Consultant agree as follows:

AGREEMENT

1. Section 1, Scope of Work, is hereby amended to add Exhibit A-1 which adds additional drainage work as outlined in the Revised Quote, a copy of which is attached hereto as Exhibit A.

2. Section 3, Compensation, is hereby amended by amending Exhibit C to reference Exhibit A and Exhibit A-1.

3. Except as specifically provided in this Amendment, all terms of the Agreement shall remain unchanged, in full force and effect. In the event of a conflict between the terms of the Agreement and the Amendment, the terms of the Amendment shall control.

IN WITNESS WHEREOF, this Amendment is executed by the CITY and by the CONSULTANT on the 3
rd day of December, 2025, at Scotts Valley, California.

CONSULTANT:

Ross Recreation Equipment,
INC
CITY:

CITY OF SCOTTS VALLEY
Heather Hailey, Contract
Administrator APPROVED AS TO
FORM:

Mali LaGoe, City Manager
ATTEST:

Kirsten M. Powell, City Attorney Cathie Simonovich, City Clerk

EXHIBIT A








 






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AGENDA ITEM 1.

DATE: 12/3/2025
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 12/3/2025
TO: Honorable Mayor and City Council
FROM: Taylor Bateman, Community Development Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Public hearing to consider the Planning Commission’s recommendation to amend Scotts Valley Municipal Code Title 16 (Subdivisions) and Title 17 (Zoning) to clarify requirements for accessory dwelling units, junior accessory dwelling units, urban lot splits, SB 9 residential development, and ministerial design review

SUMMARY OF ISSUE
The California Department of Housing and Community Development (HCD) reviewed the City’s recently adopted accessory dwelling unit (ADU) ordinance and found that amendments are needed to fully comply with state ADU law. The proposed Zoning Code amendments address HCD’s findings and include additional changes to comply with newly adopted state ADU laws. The proposed Municipal Code amendments also modify the maximum height standard for SB 9 development to comply with state law and clarify public notice and hearing requirements for ministerial design review applications.

Planning Commission Review:

At a noticed public hearing on November 20, 2025 the Planning Commission recommended that the City Council adopt the proposed amendments. A discussion of the proposed amendments is provided in the attached Planning Commission staff report (Attachment 2).

On November 20, 2025, the City received a letter from the California Housing Defense Fund (“CalHDF”) commenting on the proposed ADU ordinance amendments (Attachment 3). Two of the CalHDF comments, described below, refer to “statewide exemption ADUs”, which are a specific class of ADU subject to limited development and design standards as specified in state ADU law.

Comment 1: Allowed Location of Statewide Exemption ADUs • HDF Comment: The City may not prohibit statewide exemption ADUs in locations where vehicle access to the site is provided solely from Highway 17. • City Staff Response: Staff does not recommend this revision. The location prohibition is necessary to protect the public health and safety and is authorized by Government Code Section 66314(a) which states that a local ADU ordinance shall “designate areas within the jurisdiction of the local agency where accessory dwelling units may be

permitted. The designation of areas may be based on the adequacy of water and sewer services and the impact of accessory dwelling units on traffic flow and public safety.” Comment 2: Required Parking for Statewide Exemption ADUs • HDF Comment: The City may not require on-site parking for statewide exemption ADUs.
• City Staff Response: Based on guidance from the California Department of Housing and Community Development (HCD), staff recommends revising the ADU ordinance to clarify that statewide exemption ADUs are exempt from on-site parking requirements.

This revision is included in the attached draft ordinance (Zoning Code Section

17.57.030.N.3)
Comment 3: Discretionary Process to Deviate from Design Standards • HDF Comment: The City may not provide for a discretionary process to allow an applicant to deviate from objective ADU design standards. • City Staff Response: Staff does not recommend this revision. Based on feedback from HCD, cities may use a discretionary process to allow an ADU that deviates from objective design standards.

California Enviornmental Quality Act (CEQA):

The proposed ADU Ordinance amendments are exempt from CEQA pursuant to Public Resources Code section 21080.17 and CEQA Guidelines section 15282(h), which exempts adoption of ordinances implementing state law regarding accessory dwelling units. The proposed amendments to the SB 9 Ordinance are exempt from CEQA pursuant to Government Code sections 65852.21(k) and 66411.7(n) which provides that a local ordinance to implement SB 9 shall not be considered a project under CEQA. In addition, the proposed amendments are exempt from CEQA, pursuant to CEQA Guidelines Section 15061(b)(3), which provides that a project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment.

Public Notice & Comment:

On November 21, 2025, public hearing notices were posted at City Hall, the Scotts Valley Public Works Building, and the Scotts Valley Senior Center and published on the Scotts Valley website and newspaper consistent with State law. As of this date, no comments have been received.

FISCAL IMPACT
There is no fiscal impact associated with the recommended action.

STAFF RECOMMENDATION
The Planning Commission recommends the City Council adopt Ordinance No. 16.143 with amendments to Municipal Code Title 16 (Subdivisions) and Title 17 (Zoning) to clarify

requirements for accessory dwelling units, junior accessory dwelling units, urban lot splits, SB 9 residential development, and ministerial design review.

TABLE OF CONTENTS

1. Ordinance No. 16.143

2. Planning Commission staff report - 11.20.2025

3. CalHDF letter - 11.20.2025

ORDINANCE NO. 16.143

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SCOTTS VALLEY AMENDING SCOTTS VALLEY MUNICIPAL CODE TITLE 16 (SUBDIVISIONS) AND TITLE 17 (ZONING) TO CLARIFY REQUIREMENTS FOR

ACCESSORY DWELLING UNTS, JUNIOR ACCESSORY DWELLING UNITS, URBAN LOT SPLITS, SB 9 RESIDENTIAL DEVELOPMENT, AND MINISTERIAL DESIGN REVIEW
WHEREAS, Government Code Sections 66314 and 66333 authorize a local agency to adopt an ordinance regulating accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs);
WHEREAS, on December 4, 2024 the City Council adopted Ordinance No. 16.142 establishing regulations for ADUs and JADUs in Scotts Valley (“ADU Ordinance”); WHEREAS, on January 27, 2025 the City submitted the ADU Ordinance to the California Department of Housing and Community Development (HCD) as required by Government Code Section 66326;
WHEREAS, on April 7, 2025 the City received a letter from HCD that identifies changes to the ADU Ordinance needed to comply with state ADU law; WHEREAS, the City desires to amend the ADU Ordinance to comply with state ADU law in a manner consistent with the findings in the April 7, 2025 HCD letter; WHEREAS, in 2025 the California Legislature approved and on October 10, 2025 the Governor signed into law AB 1154 and SB 543 which amend state ADU and JADU law; WHEREAS, the City desires to amend the ADU Ordinance to remain consistent with state ADU law as amended by AB 1154 and SB 543;
WHEREAS, Government Code Sections 66452, 65852.21 and 66411.7 (“SB 9”) requires local agencies to allow, in single-family zoning districts, two primary dwellings on one lot and an urban lot split with two dwelling units allowed on each newly created lot for projects that meet specified requirements;
WHEREAS, on May 15, 2024 the City Council adopted Ordinance No. 16.141 establishing regulations for SB 9 development and urban lot splits in Scotts Valley (“SB 9 Ordinance”);
WHEREAS, SB 450 (Chapter 286, Statutes of 2024), amended the Government Code to prohibit local jurisdictions from imposing standards on SB 9 development that do not apply uniformly to development in the underlying zone unless these standards are more permissive than the generally applicable standards;
WHEREAS, on June 18, 2025 the City Council adopted Ordinance No 16.142.1

amending the City’s SB 9 Ordinance to comply with SB 450; WHEREAS, the City desires to adopt additional amendments to the SB 9 Ordinance to clarify the maximum height requirement for SB 9 development; WHEREAS, the Planning Commission held a duly noticed public hearing on November 20, 2025 at which time it considered all evidence presented, both written and oral, and at the end of the hearing voted to recommend that the City Council adopt this Ordinance; and
WHEREAS, the City Council held a duly noticed public hearing on this Ordinance on December 3, 2025, at which time it considered all evidence presented, both written and oral.

WHEREAS, pursuant to Government Code sections 65852.21(k) and 66411.7(n), a local ordinance to implement SB 9 shall not be considered a project under the California Environmental Quality Act (“CEQA”); and
WHEREAS, pursuant to Public Resources Code section 21080.17 and CEQA Guidelines section 15282(h), a local ordinance to implement state ADU law shall not be considered a project under the California Environmental Quality Act (“CEQA”); and NOW, THEREFORE, the City Council of the City of Scotts Valley does hereby ordain as follows:

Section 1. Subsection F, Setbacks, in Section 16.78.040, General requirements, of Chapter 16.78, Urban Lot Splits, of Title 16, Subdivisions, of the Scotts Valley Municipal Code is hereby amended to read as follows:
”F. Setbacks. An SB 9 residential development on a parcel created by an urban lot split shall comply with the following setback requirements:

1. Minimum Yards:
a. Front: As required in the applicable zoning district. b. Side: Four feet, except that no yard is required for a new side lot line shared between two parcels created through the urban lot split. c. Rear: Four feet.

2. As provided in Section 17.55.050, an SB 9 residential development that complies with the minimum yard requirement for a single-family dwelling in the applicable zoning district is eligible for greater unit size than is allowed for SB9 residential development that does not comply with the zoning district minimum yard requirement.

3. Notwithstanding Paragraph 1 above, no setback is required for an existing structure or a structure reconstructed in the same location and to the same dimensions as an existing structure.”

Section 2. The definition of junior accessory dwelling unit (JADU) in Section

17.04.130, Definition of “J” terms, of Chapter 17.04, Definitions, of Title 17, Zoning, of the Scotts Valley Municipal Code is hereby amended to read as follows:
“17.04.130 - Definition of "J" terms.
"Junior accessory dwelling unit (JADU)" means a converted accessory dwelling unit that is no more than five hundred square feet of interior livable space in size and contained entirely within a single-family residence. A junior accessory dwelling unit may include separate sanitation facilities, or may share sanitation facilities with the existing structure.”
Section 3. Section 17.50.035, Ministerial design review, of Chapter 17.50, Administrative Procedures, Required Permits and Appeals, of Title 17, Zoning, of the Scotts Valley Municipal Code is hereby amended to read as follows:
“17.50.035 Ministerial design review.

A. Purpose. Ministerial design review is a by-right approval process to determine project compliance objective standards.

B. Review Authority. The community development director shall review and act on design review applications or may refer the application to the planning commission for review and final decision.

C. Application Submittal and Review. A ministerial design review application shall be made using a form provided by the planning department, together with all required information, materials, and application fees.

D. Public Notice and Hearing.

1. No public notice or hearing is required for ministerial design review applications acted on by the community development director.

2. The following public notice and hearing requirements apply to ministerial design review applications acted on by the planning commission. a. The planning commission shall consider a ministerial design review application at a hearing with notice given in the same manner as required for discretionary design review applications.
b. After receiving public comment and considering the proposed project, the planning commission must either approve the application, deny the application, or continue the hearing to a future date.
c. The hearing may be continued only if additional information is needed to determine project conformance with objective standards. A hearing may be continued one time after which the planning commission must render a decision.

E. Decision. The planning commission shall approve a ministerial design review application if the project complies with all applicable objective standards in the general plan, any applicable specific plan, and the municipal code.

F. Appeals.

1. Ministerial design review decisions may be appealed as provided in Section

17.50.060 of this chapter.

2. The subject of appeal is limited to the determination of project conformance with applicable objective standards.”
Section 4. Subsection A, Building Height, in Section 17.55.050, Development standards, of Chapter 17.55, SB 9 Development, of Title 17, Zoning, of the Scotts Valley Municipal Code is hereby amended to read as follows:
“A. Building Height. The maximum building height for SB 9 residential development is the same as for single-family dwellings in the applicable zoning district and combining district.
”

Section 5. Subsection C, Yards, in Section 17.55.050, Development standards, of Chapter 17.55, SB 9 Development, of Title 17, Zoning, of the Scotts Valley Municipal Code is hereby amended to read as follows:
“C. Yards.

1. Minimum yards for an SB 9 residential development are as follows:
a. Front: As required in the applicable zoning district b. Side: Four feet, except that no yard is required for a new side lot line shared between two parcels created through an urban lot split. c. Rear: Four feet.

2. As provided in A and B above, an SB 9 residential development that complies with the minimum yard requirement for a single-family dwelling in the applicable zoning district is eligible for greater unit size than is allowed for SB9 residential development that does not comply with the zoning district minimum yard requirement.”
Section 6. Chapter 17.57, Accessory Dwelling Units, of Title 17, Zoning, of the Scotts Valley Municipal Code is hereby amended to read as follows:
“Chapter 17.57 ACCESSORY DWELLING UNITS

17.57.010 Purpose.

This chapter establishes standards for accessory dwelling units (ADUs) consistent with Government Code Sections 66310—66342. These standards are intended to increase the supply of affordable housing options in Scotts Valley while maintaining the character and quality of life of residential neighborhoods.

A. This chapter applies only to a proposed ADU as defined in Chapter 17.04 (Definitions). Standards for junior accessory dwelling units (JADUs) are found in Chapter 17.58 (Junior Accessory Dwelling Units).

B. It is the city's intent for this chapter to be consistent with state law as it is amended from time to time. In cases of conflict between this chapter and state law, state law governs.

17.57.020 Permitting process.

A. Building Permit.

1. Creating an ADU requires city approval and issuance of a building permit.

2. The city shall ministerially approve a building permit for an ADU if the application complies with this chapter and all other applicable standards. No public hearing or discretionary review is required.

B. Time Period for City Action.

1. The city shall determine whether an application to create an ADU is complete and provide written notice of this determination to the applicant not later than 15 business days after receiving the application.

2. If the city determines an application is incomplete, the city shall provide the applicant with a list of incomplete items and a description of how the application can be made complete. The list and description shall be provided with the written notice required by Paragraph (1) above.

3. After receiving a notice that the application was incomplete, an applicant may submit to the city additional application materials to cure and address the items that are deemed to be incomplete by the city.

4. In the review of additional application materials submitted pursuant to Paragraph (3) above, the city shall not require the application to include an item that was not included in the list required by paragraph (2) above.

5. If an applicant submits additional application materials pursuant to Paragraph (4) above, the city shall determine whether the additional materials remedied all incomplete items listed in the determination issued pursuant to Subsection (2) above. The city shall provide written notice of this determination to the applicant not later than 15 business days after receiving the additional materials.

6. If the city does not make a timely determination as required by this subsection, the application shall be deemed to be complete.

7. If an ADU is proposed on a lot with an existing single-family or multifamily dwelling, the city shall approve or deny the application within sixty days from the date the city receives a completed application. If the applicant requests a delay in writing, the sixty-day time period shall be tolled for the period of the delay.

8. If an ADU is proposed as part of an application to create a new single-family or multifamily dwelling, the city may delay approving or denying the ADU application until the city approves or denies the permit application for the new dwelling. The city shall approve or deny the ADU application without a public hearing or discretionary review within sixty days of action on the new dwelling.

9. If the city does not approve or deny the completed application within the required sixty-day time period, the application shall be deemed approved.

C. Comments for Denied Application.

1. If the city denies an application for an ADU, the city shall provide written comments to the applicant that list the items that are defective or deficient and describe how the application can be remedied by the applicant.

2. Written comments required by Paragraph (1) above shall be provided to the applicant not later than 15 business days after the city denies the application..

3. If the city determines an application is incomplete or denies the application, the applicant may appeal the decision to the Planning Commission and may

appeal the Planning Commission decision to the City Council. The city shall make a final decision on the appeal not later than 60 business days after receiving the applicant’s written appeal.

17.57.030 General requirements.

The requirements in this section apply to all ADUs subject to this chapter.

A. Where Allowed. An ADU is permitted:

1. In any zoning district where single-family or multifamily dwellings are a permitted use; and

2. On a lot with an existing or proposed single-family or multifamily dwelling.

B. Maximum Number per Lot.

1. Lots with Single-Family Dwellings. No more than one ADU is permitted on a lot with a single-family dwelling, except as allowed by Section 17.57.040 (Statewide Exemption ADUs).

2. Lots with Multifamily Dwellings. The number of ADUs on a lot with multifamily dwellings shall not exceed:
a. Up to twenty-five percent of existing multifamily dwellings within portions of existing multifamily dwelling structures that are not used as livable space as provided in Section 17.57.040.C (Non-Livable Multifamily Space); and
b. Up to eight detached ADUs on a lot with a existing multifamily dwelling and up to two detached ADUs on a lot with a proposed multifamily dwelling as provided in Section 17.57.040.D (Detached ADUs on Multifamily Lots).

C. Separate Sale from Primary Dwelling. An ADU shall not be sold or conveyed separately from the primary dwelling except as provided in Government Code Section 66340—66342.

D. Rental. A rented ADU shall not be leased for any period less than thirty days.

E. Guaranteed Allowance. Limits on floor area, lot coverage, open space, and front setbacks ("Specified Standards"), as outlined in Section 17.57.050 below, must permit an attached or detached ADU with at least an eight hundred square feet of interior livable space with four-foot side and rear yards ("Baseline ADU") if the proposed ADU complies with all other development standards. The community development director shall grant an exception to a Specified Standard if:

1. The Specified Standard would physically preclude the creation of a Baseline ADU otherwise allowed by this section;

2. The exception is the minimum necessary to allow for a Baseline ADU; and

3. There is no alternative to achieve a Baseline ADU without the exception.

F. Converting and Replacing Existing Structures.

1. A converted ADU may be established regardless of whether the structure in which it is located conforms to the current zoning requirement for setbacks.

2. If an existing structure is demolished and replaced with an ADU, the ADU may be constructed in the same location and to the same dimensions (i.e., footprint and height) as the demolished structure.

G. Nonconformities. The city shall not require, as a condition for approval of an ADU, the correction of nonconforming zoning conditions on the property.

H. Placement within Easement. An ADU shall not be located in an easement that prohibits habitable structures therein.

I. Foundation. An ADU shall be constructed on a permanent foundation. A manufactured home, as defined in California Health and Safety Code Section 18007, is allowed as an ADU if it is placed on a permanent foundation.

J. Vehicles/Trailers Prohibited. An ADU shall not be within a vehicle or trailer of any kind, with or without wheels.

K. Exterior Entrance. An ADU must have an exterior entrance separate from that of the primary dwelling.

L. Fire District Requirements. An ADU must comply with:

1. The California Fire Code with modifications and amendments as adopted by the Scotts Valley Fire Protection District ("Fire District"); and

2. The Santa Cruz County Fire Prevention Officers Association Fire Prevention Standards as adopted by the Fire District.

M. Fire Sprinklers.

1. Fire sprinklers are not required in an ADU where fire sprinklers were not required for the primary dwelling at the time of construction, except as provided by Paragraph 2 below.

2. If fire sprinklers were not required for the primary dwelling at the time of construction, but the primary dwelling is altered in a manner that later required fire sprinklers, an ADU created after the alteration must be provided with fire sprinklers.

3. The construction of an ADU does not trigger a requirement for fire sprinklers to be installed in an existing single-family or multifamily dwelling on the lot.

N. Parking.

1. A minimum of one off-street parking space is required for an ADU, except as provided in paragraph 3 below. The off-street parking space may be uncovered, compact, and/or tandem.

2. Driveways and parking spaces in a required setback shall comply with Zoning Code Section 17.44.030.J.2.

3. No off-street parking is required for an ADU where one or more of the following circumstances exist:
a. The ADU is approved pursuant to Section 17.57.040 (Statewide Exception Exemption ADUs).
b. The ADU is located within one-half mile walking distance of public transit. As defined in Government Code Section 66313(l), public transit means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public.
c. The ADU is located within an architecturally and historically significant historic district.
d. The ADU is part of a proposed or existing primary dwelling or an existing accessory structure.
e. When on-street parking permits are required but not offered to the occupant of an ADU.
f. When there is a car share vehicle located within one block of the ADU.
g. When a permit application for an ADU is submitted with a permit application to create a new single-family dwelling or a new multifamily dwelling on the same lot, provided that the ADU or the parcel satisfies any other criteria listed in this subdivision.

4. To qualify for an exception listed in paragraph 3 above, the applicant must provide supporting evidence, such as a map illustrating the location of the ADU and its proximity to a public transit stop or car share vehicle, or proof of local parking permit requirements.

5. No replacement parking is required when an ADU is created through the conversion or demolition of a garage, carport, covered parking structure, or uncovered parking space.

O. Utilities.

1. All ADUs shall be served by municipal water service, except as provided in paragraph 3 below.

2. Except as provided in paragraph 3 below, an ADU shall be served by municipal sewer services when located within two hundred feet from the point at which a connection can be made to the municipal system. For an ADU more than two hundred feet from a municipal sewer service connection, the ADU may use a septic system only if approved by the designated regulatory authority.

3. A converted ADU is not required to install a new or separate utility connections directly between the ADU and the utility unless the ADU was constructed with a new single-family dwelling.

4. The designated regulatory authority may require, as part of the application for a permit to create an ADU connected to an onsite septic system, a percolation test completed within the last five years, or, if the percolation test has been recertified, within the last ten years.

5. An ADU shall not be considered a new residential use for purposes of calculating city connection fees or capacity charges for utilities, including water and sewer service, unless the ADU was constructed with a new single-family dwelling.

P. Impact Fees. City development impact fees shall not be imposed upon the development of an ADU less than seven hundred fifty square feet of interior livable space. Any impact fees for an ADU of seven hundred fifty square feet or more of interior livable space shall be charged proportionately in relation to the square footage of the primary dwelling unit.

Q. Highway 17 Access Hazards. An ADU is not permitted where vehicle access to the site is provided solely from Highway 17 at the following locations as identified in the Highway 17 Access Management Plan (California Department of Transportation, 2016):

1. Driveway at PM 6.712 (Map ID #24).

2. Crescent Drive (Map ID #25).

3. Driveway at PM 6.485 (Map ID #26).

17.57.040 Statewide exemption ADUs.

Statewide Exemption ADUs described in this section require compliance only with the standards in Section 17.57.030 (General Requirements). Standards in Section

17.57.050 (Development Standards) and Section 17.57.060 (Objective Design Standards) do not apply to a Statewide Exemption ADU. Statewide exemption ADUs may be combined on a single parcel as allowed by the site and lot conditions.

A. Converted ADUs. One converted ADU per lot with a proposed or existing single-family dwelling subject to the following:

1. The converted ADU shall be within the space of a single-family dwelling or an accessory structure on a lot with a single-family dwelling.

2. A converted accessory structure may be expanded by up to one hundred fifty square feet to accommodate an entrance into the ADU.

3. The converted ADU shall have exterior access from the single-family dwelling.

4. The side and rear setbacks must be sufficient for fire and safety. If a converted ADU complies with applicable building code and Fire District requirements, side and rear setbacks shall be deemed sufficient for fire and safety.

B. Detached ADUs. One detached new construction ADU on a lot with a proposed or existing single-family dwelling.. The ADU must comply with the following:

1. Maximum floor area: Eight hundred square feet of livable space.

2. Maximum height:
a. Sixteen feet for a detached ADU on a lot with an existing or proposed single family dwelling unit.
b. Eighteen feet for a detached ADU on a lot with an existing or proposed single family or multifamily dwelling unit that is within onehalf of one mile walking distance of a major transit stop or a highquality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code. An additional two feet in height is allowed to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit.

3. Minimum rear and side setbacks: Four feet.

C. Non-Livable Multifamily Space.

1. Multiple ADUs within the portions of existing multifamily dwelling structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, subject to the following:
a. At least one ADU is allowed within an existing multifamily dwelling up to maximum of twenty-five percent of the existing multifamily dwelling units.
b. Each ADU shall comply with building code standards for dwellings.

2. The ADU must be located within a structure containing existing multifamily units. The ADU may not be located in a detached garage, carport, or other accessory structure on the lot that contains no existing multifamily units.

3. As used in this section, livable space means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.

D. Detached ADUs on Multifamily Lots. Detached ADUs located on a lot with an existing multifamily dwelling, subject to the following:

1. Maximum number:
a. On a lot with an existing multifamily dwelling, eight detached ADUs or the number of existing units on the lot, whichever is less. b. On a lot with a proposed multifamily dwelling, two detached ADUs.

2. Maximum height: Sixteen feet if the existing multifamily dwelling is one story and eighteen feet if the existing multifamily dwelling is two or more stories.

3. Minimum rear and side setbacks: Four feet.

17.57.050 Development standards.

The standards in this section apply to all ADUs not approved pursuant to Section

17.57.040 (Statewide Exemption ADUs).

A. Floor Area.

1. Minimum. The floor area of an ADU shall be no less than two hundred twenty square feet.

2. Maximum.
a. Single-Family Lots. On lots with a single-family dwelling, the interior livable space of an ADU shall not exceed the maximums shown in Table 1.

Table 1: Maximum Interior Livable Space on Single-Family Lots ADU Type and Placement on
Lot
Zoning District
R-VH, R-H, R-M R-1, R-R, R-MT
Detached and Attached [1]
Complies with district yards 1,100 sq. ft. 1,200 sq. ft.

Does not comply with district
yards
850 sq. ft. for studio/1 bdrm
1,000 sq. ft. for 2+ bdrm
Converted No maximum
Notes:
[1] The floor area of an attached ADU shall not exceed the maximums shown in this table or fifty percent of the existing primary dwelling floor area, whichever is less. b. Multifamily Lots. On lots with multifamily dwellings the floor area of an ADU shall not exceed:
(1) Eight hundred fifty sq. ft for a studio or one-bedroom ADU; and
(2) One thousand sq. ft. for an ADU with two more bedrooms.

B. Lot Coverage. An ADU shall conform to the maximum lot coverage standards of the zoning district in which it is located unless the lot coverage standard would preclude an eight hundred-square foot ADU, in which case the Community Development Director shall grant an exception to the standard as provided in Section 17.57.050.E (Guaranteed Allowance).

C. Property Line Setbacks.

1. An ADU shall be setback from property lines as required by Table 2.

Table 2: Minimum Property Line Setbacks
Property Line ADU Type
Attached Detached Converted

Front Same as primary
dwelling[1] None required Side 4 ft. 4 ft.

Rear 4 ft. 4 ft.

Notes:
[1] If the front setback standard precludes an eight hundredsquare foot ADU, the Community Development Director shall grant an exception to the standard as provided in Section

17.57.050.E (Guaranteed Allowance).

2. As provided in Subsections A (Floor Area) and E (Height) of this section, an ADU that complies with the minimum yard requirement for a singlefamily dwelling in the applicable zoning district is eligible for greater building height and unit size than is allowed for an ADU that does not comply with the zoning district minimum yard requirement.

3. See also Section 17.57.030.F (Converting and Replacing Existing Structures) for setback exceptions that apply to an ADU created by converting or replacing an existing structure.

D. Building Separation. An ADU exceeding sixteen feet in height shall comply with the minimum building separation standard in Section 17.46.070.K.

E. Height. The height of an ADU shall not exceed the maximum shown in Table 3.

Table 3: Maximum ADU Height
ADU Type and
Placement on Lot
Zoning District
R-VH, R-H, R-M R-1-10 R-1-20, R-1-40, R-R, RMT
Detached ADU
Complies with
district yards 18 ft. [1] 25 ft. 35 ft.

Does not comply
with district yards 16 ft. [1]
Attached ADU Same as required for primary dwelling
Notes:
[1] Where a maximum height of 18 feet is allowed, an additional 2 feet in height is also permitted to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit.

Where height is limited to 16 feet, a maximum of 18 feet is allowed for an ADU either 1) within onehalf mile of major transit stop or high-quality transit corridor as defined in Public Resources Code Section 21155; or 2) on lot with a multistory multifamily dwelling.

F. Hillside Residential Combining District. An ADU within the HR Hillside Residential Combining District shall comply with all objective standards in Chapter 17.40.

17.57.060 Objective design standards.

A. Applicability and Deviations.

1. The standards in this section apply to all ADUs not approved pursuant to Section 17.57.040 (Statewide Exception ADUs).

2. Deviations from standards in this section are allowed with planning commission design review approval at a noticed public hearing. To approve the deviation, the planning commission must make the findings in Section 17.50.030.E (Required Findings).

B. Driveways.

1. Vehicle access to parking spaces serving an ADU must be provided using a driveway curb cut shared with the primary dwelling.

2. The community development director may approve an exception to this requirement if the existing site layout or other physical constraints physically precludes shared use of a single driveway curb cut.

C. Massing. A building wall that faces and is within fifty feet of a street or an adjacent residential use shall not run in a continuous plane of more than twenty-five feet without one or more of the following treatments:

1. A change in wall plane with a minimum of four feet in depth for the facade.

2. A front porch or other covered entry feature with a minimum depth of three feet and width of six feet providing access to the dwelling's primary entrance.

3. An upper story stepback of at least six feet in depth for at least eighty percent of the street facing building wall.

4. A protruding window (such as a bay window) of at least two feet in depth.

D. Articulation. A building wall that faces and is within fifty feet of a street or an adjacent residential use shall not run in a continuous plane of more than fifteen feet without one of the following treatments included on the facade at every building story:

1. Window.

2. Entry door.

3. Two or more visibly contrasting primary materials and/or colors.

4. Wall mounted trellises for climbing plants
E. Roof Forms. Rooflines twenty-five feet or longer that face a street or an adjacent residential use shall be articulated with recessed or projecting gabled roof elements, roof dormers, changes in roof heights, changes in direction or pitch of roof slopes, and other similar methods.

F. Open Space.

1. An ADU shall have a minimum of one hundred square feet of private ADU open space or four hundred square feet of open space shared with the primary dwelling.

2. Required private open space shall comply with the following standards:

a. The open space shall be directly accessible from the ADU width and a minimum floor area of fifty square feet.
b. Patios shall have a minimum dimension of eight feet in depth and width and a minimum floor area of sixty-four square feet.
c. Open space may be covered but not fully enclosed. If covered, the minimum floor to ceiling height is eight and one-half feet. d. Ground level private open space shall be screened or buffered from open space utilized solely by the primary dwelling by landscaping, fencing, walls, trellises, or other screening elements.

3. If the open space standard in this subsection precludes an eight hundredsquare foot ADU, the community development director shall grant an exception to the standard as provided in Section 17.57.050.E (Guaranteed Allowance).

G. Exterior Materials. The primary wall finish material shall be wood, wood shingle, stone, brick, stucco, fiber cement or other cementitious material, or stone. T1-11 siding and all grooved or patterned wood panel or composite wood panel siding are prohibited.

H. Windows. Windows that face a street or an adjacent residential use shall comply with one of the following:

1. All windows shall feature built up profile trim/framing. Trim/framing must project at least two inches from the building wall with material that visually contrasts from the building wall.

2. Window glass shall be inset a minimum of two inches from the exterior wall or frame surface to add relief to the wall surface.

I. Neighbor Privacy.

1. If a building wall faces an adjacent residential use and does not comply with the minimum interior side or rear yard requirements of the applicable zoning district or combining district, windows on the wall must be:
a. 5-foot minimum sill height above the finished floor; b. Clerestory; or
c. Opaque/frosted glass.

2. Second-story exterior decks and balconies may not face an interior side or rear yard that abuts an adjacent residential use.

3. No portion of a rooftop deck may be closer than twenty-five feet from an interior side or rear yard that abuts an adjacent residential use.

J. Entrance Orientation. The primary entrance to a detached or attached ADU shall face either:

1. The front or interior of the parcel; or

2. A side or rear property line that abuts an alley or a public street.

K. Garage Conversions. When a garage is converted into an ADU, the garage door shall be removed and replaced with materials matching the remainder of the structure.”
Section 7. Chapter 17.58, Junior Accessory Dwelling Units, of Title 17, Zoning, of the Scotts Valley Municipal Code is hereby amended to read as follows:
“Chapter 17.58 JUNIOR ACCESSORY DWELLING UNITS

17.58.010 Purpose.

A. This chapter establishes standards for junior accessory dwelling units (JADUs) consistent with Government Code Sections 66333—66339. These standards are intended to increase the supply of affordable housing options in Scotts Valley while maintaining the character and quality of life of residential neighborhoods.

B. This chapter applies only to a proposed JADU as defined in Chapter 17.04 (Definitions). Standards for accessory dwelling units (ADUs) are found in Chapter

17.57 (Accessory Dwelling Units).

C. It is the city's intent for this chapter to be consistent with state law as it is amended from time to time. In cases of conflict between this chapter and state law, state law governs.

17.58.020 Permitting process.

Creating a JADU requires city approval and issuance of a building permit. The city shall review and act on a permit application for a JADU in the same manner as required for an accessory dwelling unit. See Section 17.57.020 (Permitting Process).

17.58.030 JADU standards.

The standards in this section apply to all JADUs.

A. Where Allowed.

1. A JADU is permitted on a residential lot zoned for single-family dwellings with a single-family dwelling built, or proposed to be built, on the lot.

2. A JADU is allowed on a lot that also contains a detached accessory dwelling unit as provided in Section 17.57.040 (State Exemption ADUs.) The JADU must be located within the single-family dwelling on the lot.

B. Maximum Number. A maximum of one JADU is permitted per lot.

C. Owner Occupancy.

1. If the JADU has shared sanitation facilities with the existing structure, the property owner shall reside in either the single-family dwelling on the lot or the JADU.

2. Owner-occupancy is not required if the JADU has separate sanitation facilities, or if the property is owned by a governmental agency, land trust, or housing organization.

D. Location Within Single-Family Dwelling. The JADU shall be contained entirely within the walls of an existing or proposed single family dwelling. For purposes of this section, enclosed uses within the dwelling, such as attached garages, are considered a part of the single-family dwelling.

E. Entrance. The JADU shall include an exterior entrance separate from the main entrance to the single-family dwelling.

F. Bathroom.

1. A JADU must either:
a. Contain its own full bathroom with a sink, toilet and shower and/or bath facilities; or
b. Share use of a full bathroom located within the primary dwelling.

2. A JADU that shares a bathroom with the primary dwelling must have an interior entry into the main living area of the primary residence.

G. Kitchen.

1. A JADU must contain, at a minimum, an efficiency kitchen with:
a. A kitchen sink, refrigeration, and cooking appliances; and b. At least three linear feet of food preparation counter space and three linear feet of cabinet space.

2. Cooking appliances may consist of either a permanent cook top and/or built-in oven, or a plug-in microwave oven, hot plate, and similar appliances intended for use on top of a countertop.

H. Parking. Off-street parking is not required for a JADU.

I. Fire Safety. For purposes of any fire or life protection ordinance or regulation, a JADU shall not be considered a separate or new dwelling unit.

J. Fire Sprinklers.

1. Fire sprinklers are not required in a JADU where fire sprinklers were not required for the primary dwelling at the time of construction, except as provided by Paragraph (2) below.

2. If fire sprinklers were not required for the primary dwelling at the time of construction, but the primary dwelling is altered in a manner that later required fire sprinklers, a JADU created after the alteration must be provided with fire sprinklers.

3. The construction of a JADU does not trigger a requirement for fire sprinklers to be installed in an existing single-family dwelling on the lot.

K. Utilities. For purposes of providing service for water, sewer, or power, including a connection fee, a JADU shall not be considered a separate or new dwelling unit unless the JADU was constructed with a new single-family dwelling.

L. A rented JADU shall not be leased for any period less than thirty days.

M. Impact Fees. City development impact fees shall not be imposed upon the development of a JADU.

17.58.040 Deed restriction.

A. Prior to occupancy of a JADU, the property owner shall file with the county recorder a declaration of restrictions containing a reference to the deed under which the property was acquired by the current owner. The deed restriction shall state that:

1. The JADU shall not be sold separately from the single-family residence; and

2. The JADU shall not exceed five hundred square feet of total floor area and shall comply with all standards in Section 17.58.030 (JADU Standards).

B. The above declarations are binding upon any successor in ownership of the property. Lack of compliance shall be cause for code enforcement.

C. The deed restriction shall lapse upon removal of the JADU established under this chapter.”
Section 8. GENERAL PLAN CONSISTENCY. The Municipal Code amendments are consistent with the General Plan. The Municipal Code amendments are adopted for the specific purpose of complying with state housing law and to maintain consistency with the General Plan Housing Element.

Section 9. CEQA COMPLIANCE. The proposed amendments are exempt pursuant to the CEQA Guidelines Section 15061(b)(3), which provides that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The proposed amendments are adopted to comply with state housing laws, bringing the Zoning Code into compliance with state requirements that already apply to proposed development. In addition, the proposed ADU Ordinance amendments are exempt from CEQA pursuant to Public Resources Code section 21080.17 and CEQA Guidelines section 15282(h), which exempts adoption of ordinances implementing state law regarding accessory dwelling units, and the proposed SB 9 Ordinance amendments are exempt from CEQA pursuant to Government Code sections 65852.21(k) and 66411.7(n), which exempts adoption of ordinances implementing SB 9.

Section 10. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase or portion of this Ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be

declared invalid or unconstitutional.

Section 11. To the extent the provisions of the Scotts Valley Municipal Code as amended by this Ordinance are substantially the same as the provisions of that Code as they read immediately prior to the adoption of this Ordinance, then those provisions shall be construed as continuations of the earlier provisions and not as new enactments.

Section 12. EFFECTIVE DATE. This ordinance shall be in full force and effect thirty (30) days from and after the date of its adoption.

Section 13. PUBLICATION. The City Clerk shall certify as to the adoption of this Ordinance and shall cause a summary thereof to be published within fifteen (15) days of adoption and shall post a certified copy of this Ordinance, including the vote for and against same, in the Office of the City Clerk, in accordance with Government Code Section 36933.

This Ordinance was introduced on the 3rd day of December, 2025, and passed and adopted on the 17th day of December, 2025, at a duly held meeting of the City Council of the City of Scotts Valley by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ______________________________
Derek Timm, Mayor
ATTEST:
_________________________________
Cathie Simonovich, City Clerk

APPROVED AS TO FORM:
_________________________________
Kirsten Powell, City Attorney

Public Hearing: Agenda Item No. 1
11/20/2025 PC Mtg.

City of Scotts Valley

PLANNING COMMISSION

STAFF REPORT
Date: November 20, 2025
Applications: AZO 25-002
Location: City-wide
General Plan / Zoning: All designations/zones
Environmental Exempt from the California Environmental Quality Act (CEQA) per Status: CEQA Guidelines Sections 15282(h) (ADU ordinances) and 15061(b)(3) (commonsense exemption) and Government Code Sections 65852.21(k) and 66411.7(n) (SB 9 ordinances)
Request: Consideration of an amendment to Scotts Valley Municipal Code Title 16 (Subdivisions) and Title 17 (Zoning) to clarify requirements for accessory dwelling units, junior accessory dwelling units, urban lot splits, SB 9 residential development, and ministerial design review
Staff Planner: Ben Noble, Consultant

STAFF RECOMMENDATION
It is recommended the Planning Commission conduct a public hearing, receive public comment, and adopt the resolution recommending the City Council adopt an ordinance amending the Scotts Valley Municipal Code Title 16 (Subdivisions) and Title 17 (Zoning) to clarify requirements for accessory dwelling units, junior accessory dwelling units, urban lot splits, SB 9 residential development, and ministerial design review.

BACKGROUND
ADU Ordinance
An accessory dwelling unit (ADU) is a dwelling unit that is secondary to the main dwelling on a lot. An ADU must have complete independent living facilities for one or more persons with

permanent provisions for living, sleeping, eating, cooking, and sanitation (bathroom). A junior accessory dwelling unit (JADU) is a type of ADU with unique requirements under state law. A JADU is no more than 500 square feet in size and created out of existing space within a single-family residence.

State law prescribes detailed requirements for local ordinances regulating ADUs and JADUs.

In 2024 Scotts Valley adopted a new ADU Ordinance (Zoning Code Chapters 17.57 and

17.58) with regulations for ADUs and JADUs to comply with state law.

HCD Review
State ADU law requires cities to submit a local ADU Ordinance to the California Department of Housing and Community Development (HCD) after adoption. HCD reviews the ADU Ordinance and makes findings of compliance with state law. If HCD finds the regulations noncompliant with state law, a city must then either amend the regulations or make findings in a resolution explaining the reasons the city believes that the ordinance complies with state ADU law despite HCD’s findings.

As required by state law, the City submitted the adopted ADU Ordinance to HCD in January of 2025. In April of 2025 the City received a letter from HCD that identifies changes to the ADU Ordinance needed to comply with state ADU law (Attachment 2). Needed changes relate to permitting timelines, the number of allowed ADUs, maximum allowed height, JADU provisions, and other topics. City staff considered the HCD letter and concluded that the best course of action is to make changes to the ADU Ordinance in a manner consistent with the findings in the HCD letter.

New State ADU Law
In 2025, the state enacted AB 1154 and SB 543 which amend state ADU and JADU law.

These laws revise the process and timeframe for cities to review and act on ADUs and JADUs, modify owner occupancy requirements for JADUs, and clarify ADU provisions which also apply to JADUs. Staff recommends adopting revisions to the ADU Ordinance to comply with AB 1154 and SB 543 at this time so that the City’s ADU and JADU regulations will comply with these laws when they go into effect in January 2026.

SB 9 Ordinance
State law (“SB 9”) requires local agencies to allow, in single-family zoning districts, two primary dwellings on one lot and an urban lot split with two dwelling units allowed on each newly created lot for projects that meet specified requirements. In May of 2024 the City adopted a local SB 9 Ordinance establishing regulations for SB 9 development and urban lot splits in Scotts Valley. In June of 2025 the City adopted subsequent amendments to the SB 9 Ordinance to comply with new state law (SB 450) which prohibits standards for SB 9 development that do not apply uniformly to development in the underlying zone (unless more permissive than generally applicable standards).

When reviewing proposed SB 9 project applications, staff identified a maximum height standard in the City’s SB 9 Ordinance which does not also apply to single-family homes.

Retaining this height standard in the SB 9 Ordinance was an oversight when the SB 9

Ordinance was amended in June of 2025 to comply with SB 450. Staff recommends removing this standard from the SB 9 Ordinance to bring the City’s SB 9 regulations into compliance with state law
Ministerial Design Review
In 2024 the City established a new ministerial design review process to allow for by-right approval of housing projects on Housing Element opportunity sites (Zoning Code Section

17.50.035). City staff recommends adopting a clean-up amendment to this section to clarify public notice and hearing requirements for ministerial design review applications.

PROPOSED SUBDIVISION ORDINANCE AND ZONING CODE AMENDMENTS Attachment 1 contains a draft Planning Commission resolution recommending the City Council adopt amendments to the Subdivision Ordinance and Zoning Code. Exhibit A to Attachment 1 contains draft Ordinance with the proposed amendments. As discussed below, the proposed amendments address the following topics:
• Accessory Dwelling Units
• SB 9 Development
• Ministerial Design Review
Accessory Dwelling Units
Proposed amendments to Chapter 17.57 (Accessory Dwelling Units) and Chapter 17.58 (Junior Accessory Dwelling Units) address recent changes to state ADU law and comments from HCD’s review of the City’s ADU Ordinance. Noteworthy amendments are described below.

Amendments to comply with new State law
• Clarifies the City’s process and timeframe for reviewing and acting on ADU and JADU applications (17.57.020 and 17.58.020).
• Requires the property owner to reside on site if a JADU shares a bathroom with the primary dwelling (17.58.030.C).
• Clarifies that fire sprinkler requirements for ADUs also apply to JADUs. (17.58.030.J) • Adds that a JADU constructed with a new single-family dwelling is considered a new dwelling unit for purposes of determining connection fees to provide water, sewer, or power service (17.58.030.K).
• Adds that a rented JADU may not be leased for less than thirty days (17.58.030.L). • Adds that the City cannot collect development impact fees for JADUs (17.58.030.M).

Amendments to address HCD comments
• Limits the number of ADUs on a lot with a proposed multifamily dwelling to two detached ADUs (17.57.030.B.2)
• Removes definition of a car share vehicle (17.57.030.N.3).

• Clarifies that statewide exemption ADUs may be combined on a single parcel as allowed by the site and lot conditions.
• Adds circumstances when an 18-foot height for a detached ADU is allowed (17.57.040.B.2).
• Regulates ADU floor area and height based on zoning district rather than lot size (17.57.050.A & E).

SB 9 Ordinance
Zoning Code Section 17.55.050 currently limits the maximum height of an SB 9 unit to 16 feet or 25 feet, depending on placement on lot. This standard conflicts with state law (SB 450) as it is more restrictive than the maximum height allowed for a single-family dwelling. The proposed amendments replace this standard with the following new language: “The maximum building height for SB 9 residential development is the same as for single-family dwellings in the applicable zoning district and combining district.” Ministerial Design Review
The proposed amendments include the following changes to Zoning Code Section 17.50.035 (Ministerial Design Review):
• Adds that no public notice or hearing is required for ministerial design review applications acted on by the community development director. • Clarifies that public notice and hearing requirements apply only to ministerial design review applications acted on by the planning commission and that notice shall be given in the same manner as discretionary design review applications.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
The proposed ADU Ordinance amendments are exempt from CEQA pursuant to Public Resources Code section 21080.17 and CEQA Guidelines section 15282(h), which exempts adoption of ordinances implementing state law regarding accessory dwelling units. The proposed amendments to the SB 9 Ordinance are exempt from CEQA pursuant to Government Code sections 65852.21(k) and 66411.7(n) which provides that a local ordinance to implement SB 9 shall not be considered a project under CEQA.

In addition, the proposed amendments are exempt from CEQA, pursuant to CEQA Guidelines Section 15061(b)(3), which provides that a project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

PUBLIC NOTICE & COMMENT
On October 31, 2025, public hearing notices were posted at City Hall, the Scotts Valley Branch Library, and the Scotts Valley Senior Center, consistent with State law. As of the date of this staff report no comments have been received on the proposed Municipal Code Amendments.

ATTACHMENTS

1. Resolution No. ___ recommending the City Council adopt amendments to Scotts Valley Municipal Code Title 16 (Subdivisions) and Title 17 (Zoning) to clarify requirements for accessory dwelling units, junior accessory dwelling units, urban lot splits, SB 9 residential development, and ministerial design review.

Exhibit 1: Draft Ordinance

2. HCD comment letter on ADU Ordinance, April 7, 2025

RESOLUTION NO. _____

RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SCOTTS VALLEY RECOMMENDING THE CITY COUNCIL APPROVE ORDINANCE NO. XX AMENDING SCOTTS VALLEY MUNICIPAL CODE TITLE 16 (SUBDIVISIONS) AND TITLE 17 (ZONING) TO CLARIFY REQUIREMENTS FOR ACCESSORY DWELLING UNITS, JUNIOR ACCESSORY DWELLING UNITS, URBAN LOT SPLITS, SB 9

RESIDENTIAL DEVELOPMENT, AND MINISTERIAL DESIGN REVIEW

WHEREAS, Government Code Sections 66314 and 66333 authorize a local agency to adopt an ordinance regulating accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs);
WHEREAS, on December 4, 2024 the City Council adopted Ordinance No. 16.142 establishing regulations for ADUs and JADUs in Scotts Valley (“ADU Ordinance”); WHEREAS, on January 27, 2025 the City submitted the ADU Ordinance to the California Department of Housing and Community Development (HCD) as required by Government Code Section 66326;
WHEREAS, on April 7, 2025 the City received a letter from HCD that identifies changes to the ADU Ordinance needed to comply with state ADU law; WHEREAS, the City desires to amend the ADU Ordinance to comply with state ADU law in a manner consistent with the findings in the April 7, 2025 HCD letter; WHEREAS, in 2025 the California Legislature approved and on October 10, 2025 the Governor signed into law AB 1154 and SB 543 which amend state ADU and JADU law; WHEREAS, the City desires to amend the ADU Ordinance to remain consistent with state ADU law as amended by AB 1154 and SB 543;
WHEREAS, Government Code Sections 66452, 65852.21 and 66411.7 (“SB 9”) requires local agencies to allow, in single-family zoning districts, two primary dwellings on one lot and an urban lot split with two dwelling units allowed on each newly created lot for projects that meet specified requirements;
WHEREAS, on May 15, 2024 the City Council adopted Ordinance No. 16.141 establishing regulations for SB 9 development and urban lot splits in Scotts Valley (“SB 9 Ordinance”);
WHEREAS, SB 450 (Chapter 286, Statutes of 2024), amended the Government Code to prohibit local jurisdictions from imposing standards on SB 9 development that do not apply uniformly to development in the underlying zone unless these standards are more permissive than the generally applicable standards;
WHEREAS, on June 18, 2025 the City Council adopted Ordinance No 16.142.1 amending the City’s SB 9 Ordinance to comply with SB 450; WHEREAS, the City desires to adopt additional amendments to the SB 9 Ordinance to clarify the maximum height requirement for SB 9 development;

WHEREAS, the Planning Commission held a duly noticed public hearing on November 20, 2025 to consider a draft ordinance amending Scotts Valley Municipal Code Title 16 (Subdivisions) and Title 17 (Zoning) to clarify requirements for accessory dwelling units, junior accessory dwelling units, urban lot splits, SB 9 residential development, and ministerial design review;
WHEREAS, pursuant to Government Code sections 65852.21(k) and 66411.7(n), a local ordinance to implement SB 9 shall not be considered a project under the California Environmental Quality Act (“CEQA”); and
WHEREAS, pursuant to Public Resources Code section 21080.17 and CEQA Guidelines section 15282(h), a local ordinance to implement state ADU law shall not be considered a project under the California Environmental Quality Act (“CEQA”); and NOW, THEREFORE, BE IT RESOLVED by Planning Commission as follows:

SECTION 1: The Planning Commission of the City of Scotts Valley hereby recommends approval of the Subdivision Ordinance and Zoning Code amendments pursuant to the following:

A. The proposed amendments are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15282(h) and 15061(b)(3) and Government Code Sections 65852.21(k) and 66411.7(n). The proposed ADU Ordinance amendments are exempt from CEQA pursuant to Public Resources Code section 21080.17 and CEQA Guidelines section 15282(h), which exempts adoption of ordinances implementing state law regarding accessory dwelling units. The proposed SB 9 Ordinance amendments are exempt from CEQA pursuant to Government Code sections 65852.21(k) and 66411.7(n) which provides that a local ordinance to implement SB 9 shall not be considered a project under CEQA. In addition, the proposed amendments are exempt from CEQA, pursuant to CEQA Guidelines Section 15061(b)(3), which provides that a project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment.

B. The Zoning Code Amendments are Consistent with the General Plan. The proposed amendments are adopted for the specific purpose of maintaining compliance with the Housing Element and state housing law.

SECTION 2: The Planning Commission of the City of Scotts Valley hereby recommends approval of the environmental determinations.

SECTION 3: The Planning Commission of the City of Scotts Valley hereby recommends the City Council adopt Ordinance No XX set forth in Exhibit A attached hereto and incorporated herein.

THE ABOVE AND FOREGOING RESOLUTION was duly and regularly adopted and passed by the Planning Commission of the City of Scotts Valley at a regular meeting held on the 20th day of November, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________________
Lori Gentile, Chair
___________________________________________
Taylor Bateman, Community Development Director

ORDINANCE NO. XX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SCOTTS VALLEY AMENDING SCOTTS VALLEY MUNICIPAL CODE TITLE 16 (SUBDIVISIONS) AND TITLE 17 (ZONING) TO CLARIFY REQUIREMENTS FOR

ACCESSORY DWELLING UNTS, JUNIOR ACCESSORY DWELLING UNITS, URBAN LOT SPLITS, SB 9 RESIDENTIAL DEVELOPMENT, AND MINISTERIAL DESIGN REVIEW
WHEREAS, Government Code Sections 66314 and 66333 authorize a local agency to adopt an ordinance regulating accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs);
WHEREAS, on December 4, 2024 the City Council adopted Ordinance No. 16.142 establishing regulations for ADUs and JADUs in Scotts Valley (“ADU Ordinance”); WHEREAS, on January 27, 2025 the City submitted the ADU Ordinance to the California Department of Housing and Community Development (HCD) as required by Government Code Section 66326;
WHEREAS, on April 7, 2025 the City received a letter from HCD that identifies changes to the ADU Ordinance needed to comply with state ADU law; WHEREAS, the City desires to amend the ADU Ordinance to comply with state ADU law in a manner consistent with the findings in the April 7, 2025 HCD letter; WHEREAS, in 2025 the California Legislature approved and on October 10, 2025 the Governor signed into law AB 1154 and SB 543 which amend state ADU and JADU law; WHEREAS, the City desires to amend the ADU Ordinance to remain consistent with state ADU law as amended by AB 1154 and SB 543;
WHEREAS, Government Code Sections 66452, 65852.21 and 66411.7 (“SB 9”) requires local agencies to allow, in single-family zoning districts, two primary dwellings on one lot and an urban lot split with two dwelling units allowed on each newly created lot for projects that meet specified requirements;
WHEREAS, on May 15, 2024 the City Council adopted Ordinance No. 16.141 establishing regulations for SB 9 development and urban lot splits in Scotts Valley (“SB 9 Ordinance”);
WHEREAS, SB 450 (Chapter 286, Statutes of 2024), amended the Government Code to prohibit local jurisdictions from imposing standards on SB 9 development that do not apply uniformly to development in the underlying zone unless these standards are more permissive than the generally applicable standards;
WHEREAS, on June 18, 2025 the City Council adopted Ordinance No 16.142.1

amending the City’s SB 9 Ordinance to comply with SB 450; WHEREAS, the City desires to adopt additional amendments to the SB 9 Ordinance to clarify the maximum height requirement for SB 9 development; WHEREAS, the Planning Commission held a duly noticed public hearing on November 20, 2025 at which time it considered all evidence presented, both written and oral, and at the end of the hearing voted to recommend that the City Council adopt this Ordinance; and
WHEREAS, the City Council held a duly noticed public hearing on this Ordinance on December 3, 2025, at which time it considered all evidence presented, both written and oral.

WHEREAS, pursuant to Government Code sections 65852.21(k) and 66411.7(n), a local ordinance to implement SB 9 shall not be considered a project under the California Environmental Quality Act (“CEQA”); and
WHEREAS, pursuant to Public Resources Code section 21080.17 and CEQA Guidelines section 15282(h), a local ordinance to implement state ADU law shall not be considered a project under the California Environmental Quality Act (“CEQA”); and NOW, THEREFORE, the City Council of the City of Scotts Valley does hereby ordain as follows:

Section 1. Subsection F, Setbacks, in Section 16.78.040, General requirements, of Chapter 16.78, Urban Lot Splits, of Title 16, Subdivisions, of the Scotts Valley Municipal Code is hereby amended to read as follows:
”F. Setbacks. An SB 9 residential development on a parcel created by an urban lot split shall comply with the following setback requirements:

1. Minimum Yards:
a. Front: As required in the applicable zoning district. b. Side: Four feet, except that no yard is required for a new side lot line shared between two parcels created through the urban lot split. c. Rear: Four feet.

2. As provided in Section 17.55.050, an SB 9 residential development that complies with the minimum yard requirement for a single-family dwelling in the applicable zoning district is eligible for greater building height and unit size than is allowed for SB9 residential development that does not comply with the zoning district minimum yard requirement.

3. Notwithstanding Paragraph 1 above, no setback is required for an existing structure or a structure reconstructed in the same location and to the same dimensions as an existing structure.”

Section 2. The definition of junior accessory dwelling unit (JADU) in Section

17.04.130, Definition of “J” terms, of Chapter 17.04, Definitions, of Title 17, Zoning, of the Scotts Valley Municipal Code is hereby amended to read as follows:
“17.04.130 - Definition of "J" terms.
"Junior accessory dwelling unit (JADU)" means a converted accessory dwelling unit that is no more than five hundred square feet of interior livable space in size and contained entirely within a single-family residence. A junior accessory dwelling unit may include separate sanitation facilities, or may share sanitation facilities with the existing structure.”
Section 3. Section 17.50.035, Ministerial design review, of Chapter 17.50, Administrative Procedures, Required Permits and Appeals, of Title 17, Zoning, of the Scotts Valley Municipal Code is hereby amended to read as follows:
“17.50.035 Ministerial design review.

A. Purpose. Ministerial design review is a by-right approval process to determine project compliance objective standards.

B. Review Authority. The community development director shall review and act on design review applications or may may refer the application to the planning commission for review and final decision.

C. Application Submittal and Review. A ministerial design review application shall be made using a form provided by the planning department, together with all required information, materials, and application fees.

D. Public Notice and Hearing.

1. No public notice or hearing is required for ministerial design review applications acted on by the community development director.

2. The following public notice and hearing requirements apply to ministerial design review applications acted on by the planning commission. 1a. The planning commission shall consider a ministerial design review application at a hearing with notice given in the same manner as required for discretionary design review applicationsas described in Section

17.50.090 of this chapter.
b2. After receiving public comment and considering the proposed project, the planning commission must either approve the application, deny the application, or continue the hearing to a future date.
c3. The hearing may be continued only if additional information is needed to determine project conformance with objective standards. A hearing may be continued one time after which the planning commission must render a decision.

E. Decision. The planning commission shall approve a ministerial design review application if the project complies with all applicable objective standards in the general plan, any applicable specific plan, and the municipal code.

F. Appeals.

1. Ministerial design review decisions may be appealed as provided in Section

17.50.060 of this chapter.

2. The subject of appeal is limited to the determination of project conformance with applicable objective standards.”
Section 4. Subsection A, Building Height, in Section 17.55.050, Development standards, of Chapter 17.55, SB 9 Development, of Title 17, Zoning, of the Scotts Valley Municipal Code is hereby amended to read as follows:
“A. Building Height. The maximum building height for SB 9 residential development is the same as for single-family dwellings in the applicable zoning district and combining district.

1. For an SB 9 residential development that complies with the minimum yard requirements of the applicable zoning district and combining district, the maximum building height is twenty-five feet.

2. For an SB 9 residential development that does not comply with the minimum yard requirements of the applicable zoning district and combining district, the maximum building height is sixteen feet.”

Section 5. Subsection C, Yards, in Section 17.55.050, Development standards, of Chapter 17.55, SB 9 Development, of Title 17, Zoning, of the Scotts Valley Municipal Code is hereby amended to read as follows:
“C. Yards.

1. Minimum yards for an SB 9 residential development are as follows:
a. Front: As required in the applicable zoning district b. Side: Four feet, except that no yard is required for a new side lot line shared between two parcels created through an urban lot split. c. Rear: Four feet.

2. As provided in A and B above, an SB 9 residential development that complies with the minimum yard requirement for a single-family dwelling in the applicable zoning district is eligible for greater building height and unit size than is allowed for SB9 residential development that does not comply with the zoning district minimum yard requirement.”
Section 6. Chapter 17.57, Accessory Dwelling Units, of Title 17, Zoning, of the Scotts Valley Municipal Code is hereby amended to read as follows:
“Chapter 17.57 ACCESSORY DWELLING UNITS

17.57.010 Purpose.

This chapter establishes standards for accessory dwelling units (ADUs) consistent with Government Code Sections 66310—66342. These standards are intended to increase the supply of affordable housing options in Scotts Valley while maintaining the character and quality of life of residential neighborhoods.

A. This chapter applies only to a proposed ADU as defined in Chapter 17.04 (Definitions). Standards for junior accessory dwelling units (JADUs) are found in Chapter 17.58 (Junior Accessory Dwelling Units).

B. It is the city's intent for this chapter to be consistent with state law as it is amended from time to time. In cases of conflict between this chapter and state law, state law governs.

17.57.020 Permitting process.

A. Building Permit.

1. Creating an ADU requires city approval and issuance of a building permit.

2. The city shall ministerially approve a building permit for an ADU if the application complies with this chapter and all other applicable standards. No public hearing or discretionary review is required.

B. Time Period for City Action.

1. The city shall determine whether an application to create an ADU is complete and provide written notice of this determination to the applicant not later than 15 business days after receiving the application.

2. If the city determines an application is incomplete, the city shall provide the applicant with a list of incomplete items and a description of how the application can be made complete. The list and description shall be provided with the written notice required by Paragraph (1) above.

3. After receiving a notice that the application was incomplete, an applicant may submit to the city additional application materials to cure and address the items that are deemed to be incomplete by the city.

4. In the review of additional application materials submitted pursuant to Paragraph (3) above, the city shall not require the application to include an item that was not included in the list required by paragraph (2) above.

5. If an applicant submits additional application materials pursuant to Paragraph (4) above, the city shall determine whether the additional materials remedied all incomplete items listed in the determination issued pursuant to Subsection (2) above. The city shall provide written notice of this determination to the applicant not later than 15 business days after receiving the additional materials.

6. If the city does not make a timely determination as required by this subsection, the application shall be deemed to be complete.

71. If an ADU is proposed on a lot with an existing single-family or multifamily dwelling, the city shall approve or deny the application within sixty days from the date the city receives a completed application. If the applicant requests a delay in writing, the sixty-day time period shall be tolled for the period of the delay.

82. If an ADU is proposed as part of an application to create a new single-family or multifamily dwelling, the city may delay acting onapproving or denying the ADU application until the city approves or denies acts on the permit application for the new dwelling. The city shall approve or deny the ADU application without a public hearing or discretionary review within sixty days of action on the new dwelling.

93. If the city does not approve or deny the completed application within the required sixty-day time period, the application shall be deemed approved.

C. Comments for Denied Application.

1. If the city denies an application for an ADU, the city shall provide written comments to the applicant that list the items that are defective or deficient and describe how the application can be remedied by the applicant.

2. Written comments required by Paragraph (1) above shall be provided to the applicant not later than 15 business days after the city denies the application.within the time period described in Subsection B (Time Period for City Action) of this section.

3. If the city determines an application is incomplete or denies the application, the applicant may appeal the decision to the Planning Commission and may appeal the Planning Commission decision to the City Council. The city shall make a final decision on the appeal not later than 60 business days after receiving the applicant’s written appeal.”

17.57.030 General requirements.

The requirements in this section apply to all ADUs subject to this chapter.

A. Where Allowed. An ADU is permitted:

1. In any zoning district where single-family or multifamily dwellings are a permitted use; and

2. On a lot with an existing or proposed single-family or multifamily dwelling.

B. Maximum Number per Lot.

1. Lots with Single-Family Dwellings. No more than one ADU is permitted on a lot with a single-family dwelling, except as allowed by state lawSection

17.57.040 (Statewide Exemption ADUs).

2. Lots with Multifamily Dwellings. The number of ADUs on a lot with multifamily dwellings shall not exceed:
a. Up to twenty-five percent of existing multifamily dwellings within portions of existing multifamily dwelling structures that are not used as livable space as provided in Section 17.57.0460.C (Non-Livable Multifamily Space); and
b. Up to eight detached ADUs on a lot with a existing multifamily dwelling and up to two detached ADUs on a lot with a proposed multifamily dwelling as provided in Section 17.57.0460.D (Detached ADUs on Multifamily Lots).

C. Separate Sale from Primary Dwelling. An ADU shall not be sold or conveyed separately from the primary dwelling except as provided in Government Code Section 66340—66342.

D. Rental. A rented ADU shall not be leased for any period less than thirty days.

E. Guaranteed Allowance. Limits on floor area, lot coverage, open space, and front setbacks ("Specified Standards"), as outlined in Section 17.57.050 below, must permit an attached or detached ADU with at least an eight hundred square -feeoot of interior livable space detached or attached ADU that is sixteen feet high with four-foot side and rear yards ("Baseline ADU") if the proposed ADU complies with all other development standards. The community development director shall grant an exception to a Specified Standard if:

1. The Specified Standard would physically preclude the creation of a Baseline ADU otherwise allowed by this section;

2. The exception is the minimum necessary to allow for a Baseline ADU; and

3. There is no feasible alternative to achieve a Baseline ADU without the exception.

F. Converting and Replacing Existing Structures.

1. A converted ADU may be established regardless of whether the structure in which it is located conforms to the current zoning requirement for setbacks.

2. If an existing structure is demolished and replaced with an ADU, the ADU may be constructed in the same location and to the same dimensions (i.e., footprint and height) as the demolished structure.

G. Nonconformities. The city shall not require, as a condition for approval of an ADU, the correction of nonconforming zoning conditions on the property.

H. Placement within Easement. An ADU shall not be located in an easement that prohibits habitable structures therein.

I. Foundation. An ADU shall be constructed on a permanent foundation. A manufactured home, as defined in California Health and Safety Code Section 18007, is allowed as an ADU if it is placed on a permanent foundation.

J. Vehicles/Trailers Prohibited. An ADU shall not be within a vehicle or trailer of any kind, with or without wheels.

K. Exterior Entrance. An ADU must have an exterior entrance separate from that of the primary dwelling.

L. Fire District Requirements. An ADU must comply with:

1. The California Fire Code with modifications and amendments as adopted by the Scotts Valley Fire Protection District ("Fire District"); and

2. The Santa Cruz County Fire Prevention Officers Association Fire Prevention Standards as adopted by the Fire District.

M. Fire Sprinklers.

1. Fire sprinklers are not required in an ADU where fire sprinklers were not required for the primary dwelling at the time of construction, except as provided by Paragraph 2 below.

2. If fire sprinklers were not required for the primary dwelling at the time of construction, but the primary dwelling is altered in a manner that later required fire sprinklers, an ADU created after the alteration must be provided with fire sprinklers.

3. The construction of an ADU does not trigger a requirement for fire sprinklers to be installed in an existing single-family or multifamily dwelling on the lot.

N. Parking.

1. A minimum of one off-street parking space is required for an ADU, except as provided in paragraph 32 below. The off-street parking space may be uncovered, compact, and/or tandem.

2. Driveways and parking spaces in a required setback shall comply with Zoning Code Section 17.44.030.J.2.

3. No off-street parking is required for an ADU where one or more of the following circumstances exist:
a. The ADU is located within one-half mile walking distance of public transit. As defined in Government Code Section 66313(l), public transit means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public.
b. The ADU is located within an architecturally and historically significant historic district.
c. The ADU is part of a proposed or existing primary dwelling or an existing accessory structure.
d. When on-street parking permits are required but not offered to the occupant of an ADU.
e. When there is a car share vehicle located within one block of the ADU. As used in this section, a car share vehicle means a motor vehicle that is operated as part of a regional fleet by a public or private car sharing company or organization that meet all the following criteria:
(1) Provides hourly or daily service;
(2) Vehicle reservations are processed and paid for using an on-line system;
(3) Vehicles can be accessed where they are parked without having to go to a different physical location to execute a contract and/or pick up keys; and
(4) Fleet has more than five cars in Scotts Valley and more than twenty cars in Santa Cruz County.
f. When a permit application for an ADU is submitted with a permit application to create a new single-family dwelling or a new multifamily dwelling on the same lot, provided that the ADU or the parcel satisfies any other criteria listed in this subdivision.

4. To qualify for an exception listed in paragraph 3 above, the applicant must provide supporting evidence, such as a map illustrating the location of the ADU and its proximity to a public transit stop or car share vehicle, or proof of local parking permit requirements.

5. No replacement parking is required when an ADU is created through the conversion or demolition of a garage, carport, covered parking structure, or uncovered parking space.

O. Utilities.

1. All ADUs shall be served by municipal water service, except as provided in paragraph 3 below.

2. Except as provided in paragraph 3 below, an ADU shall be served by municipal sewer services when located within two hundred feet from the point at which a connection can be made to the municipal system. For an ADU more than two hundred feet from a municipal sewer service connection, the ADU may use a septic system only if approved by the designated regulatory authority.

3. A converted ADU is not required to install a new or separate utility connections directly between the ADU and the utility unless the ADU was constructed with a new single-family dwelling.

4. The designated regulatory authority may require, as part of the application for a permit to create an ADU connected to an onsite septic system, a percolation test completed within the last five years, or, if the percolation test has been recertified, within the last ten years.

5. An ADU shall not be considered a new residential use for purposes of calculating city connection fees or capacity charges for utilities, including water and sewer service, unless the ADU was constructed with a new single-family dwelling.

P. Impact Fees. City development impact fees shall not be imposed upon the development of an ADU less than seven hundred fifty square feet of interior livable space. Any impact fees for an ADU of seven hundred fifty square feet or more of interior livable space shall be charged proportionately in relation to the square footage of the primary dwelling unit.

Q. Hillside Residential Combining District. An ADU within the HR Hillside Residential Combining District shall comply with all objective standards in Chapter 17.40.

QR. Highway 17 Access Hazards. An ADU is not permitted where vehicle access to the site is provided solely from Highway 17 at the following locations as identified in the Highway 17 Access Management Plan (California Department of Transportation, 2016):

1. Driveway at PM 6.712 (Map ID #24).

2. Crescent Drive (Map ID #25).

3. Driveway at PM 6.485 (Map ID #26).

17.57.040 Statewide exemption ADUs.

Statewide Exemption ADUs described in this section require compliance only with the standards in Section 17.57.030 (General Requirements). Standards in Section

17.57.050 (Development Standards) and Section 17.57.060 (Objective Design Standards) do not apply to a Statewide Exemption ADU. Statewide exemption ADUs may be combined on a single parcel as allowed by the site and lot conditions.

A. Converted ADUs. One converted ADU per lot with a proposed or existing single-family dwelling subject to the following:

1. The converted ADU shall be within the space of a single-family dwelling or an accessory structure on a lot with a single-family dwelling.

2. A converted accessory structure may be expanded by up to one hundred fifty square feet to accommodate an entrance into the ADU.

3. The converted ADU shall have exterior access from the single-family dwelling.

4. The side and rear setbacks must be sufficient for fire and safety. If a converted ADU complies with applicable building code and Fire District requirements, side and rear setbacks shall be deemed sufficient for fire and safety.

B. Detached ADUs. One detached new construction ADU on a lot with a proposed or existing single-family dwelling. The ADU is allowed on a lot that also contains a junior accessory dwelling unit that conforms with Chapter 17.58 (Junior Accessory Dwelling Units). The ADU must comply with the following:

1. Maximum floor area: Eight hundred square feet of livable space.

2. Maximum height:
a. Sixteen feet for a detached ADU on a lot with an existing or proposed single family dwelling unit.
b. Eighteen feet for a detached ADU on a lot with an existing or proposed single family or multifamily dwelling unit that is within onehalf of one mile walking distance of a major transit stop or a highquality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code. An additional two feet in height is allowed to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit.

3. Minimum rear and side setbacks: Four feet.

C. Non-Livable Multifamily Space.

1. Multiple ADUs within the portions of existing multifamily dwelling structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, subject to the following:

a. At least one ADU is allowed within an existing multifamily dwelling up to maximum of twenty-five percent of the existing multifamily dwelling units.
b. Each ADU shall comply with building code standards for dwellings.

2. The ADU must be located within a structure containing existing multifamily units. The ADU may not be located in a detached garage, carport, or other accessory structure on the lot that contains no existing multifamily units.

3. As used in this section, livable space means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.

D. Detached ADUs on Multifamily Lots. Detached ADUs located on a lot with an existing multifamily dwelling, subject to the following:

1. Maximum number:
a. On a lot with an existing multifamily dwelling, eight detached ADUs or the number of existing units on the lot, whichever is less. b. On a lot with a proposed multifamily dwelling, two detached ADUs.

2. Maximum height: Sixteen feet if the existing multifamily dwelling is one story and eighteen feet if the existing multifamily dwelling is two or more stories.

3. Minimum rear and side setbacks: Four feet.

17.57.050 Development standards.

The standards in this section apply to all ADUs not approved pursuant to Section

17.57.040 (Statewide Exception Exemption ADUs).

A. Floor Area.

1. Minimum. The floor area of an ADU shall be no less than two hundred twenty square feet.

2. Maximum.
a. Single-Family Lots. On lots with a single-family dwelling, the floor areainterior livable space of an ADU shall not exceed the maximums shown in Table 1.

Table 1: Maximum Floor AreaInterior Livable Space on Single-Family Lots ADU Type and Placement on
Lot
Lot SizeZoning District
R-VH, R-H, R-M Less
than 10,000 sq. ft.

R-1, R-R, R-MT 10,000 sq.
ft. and more
Detached and Attached [1]
Complies with district yards 1,100 sq. ft. 1,200 sq. ft.

Does not comply with district
yards
850 sq. ft. for studio/1 bdrm
1,000 sq. ft. for 2+ bdrm
Converted No maximum

Notes:
[1] The floor area of an attached ADU shall not exceed the maximums shown in this table or fifty percent of the existing primary dwelling floor area, whichever is less. b. Multifamily Lots. On lots with multifamily dwellings the floor area of an ADU shall not exceed:
(1) Eight hundred fifty sq. ft for a studio or one-bedroom ADU; and
(2) One thousand sq. ft. for an ADU with two more bedrooms.

B. Lot Coverage. An ADU shall conform to the maximum lot coverage standards of the zoning district in which it is located unless the lot coverage standard would preclude an eight hundred-square foot ADU, in which case the Community Development Director shall grant an exception to the standard as provided in Section 17.57.050.E (Guaranteed Allowance).

C. Property Line Setbacks.

1. An ADU shall be setback from property lines as required by Table 2.

Table 2: Minimum Property Line Setbacks
Property Line ADU Type
Attached Detached Converted
Front Same as primary
dwelling[1] None required Side 4 ft. 4 ft.

Rear 4 ft. 4 ft.

Notes:
[1] If the front setback standard precludes an eight hundredsquare foot ADU, the Community Development Director shall grant an exception to the standard as provided in Section

17.57.050.E (Guaranteed Allowance).

2. As provided in Subsections A (Floor Area) and E (Height) of this section, an ADU that complies with the minimum yard requirement for a singlefamily dwelling in the applicable zoning district is eligible for greater building height and unit size than is allowed for an ADU that does not comply with the zoning district minimum yard requirement.

3. See also Section 17.57.030.F (Converting and Replacing Existing Structures) for setback exceptions that apply to an ADU created by converting or replacing an existing structure.

D. Building Separation. An ADU exceeding sixteen feet in height shall comply with the minimum building separation standard in Section 17.46.070.K.

E. Height. The height of an ADU shall not exceed the maximum shown in Table 3.

Table 3: Maximum ADU Height

ADU Type and
Placement on Lot
Lot Size Zoning District
Less than 10,000
sq. ft. R-VH, R-H,
R-M
R-1-1010,000—
19,999 sq. ft.

R-1-20, R-1-40, R-R, RMT20,000 sq. ft. and
more
Detached ADU
Complies with
district yards 18 ft. [1] 25 ft. 35 ft.

Does not comply
with district yards 16 ft. [11]
Attached ADU Same as required for primary dwelling
Notes:
[1] Where a maximum height of 18 feet is allowed, an additional 2 feet in height is also permitted to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit.

Where height is limited to 16 feet, a maximum of 18 feet is allowed for an ADU either 1) within onehalf mile of major transit stop or high-quality transit corridor as defined in Public Resources Code Section 21155; or 2) on lot with a multistory multifamily dwelling.

F. Hillside Residential Combining District. An ADU within the HR Hillside Residential Combining District shall comply with all objective standards in Chapter 17.40.

17.57.060 Objective design standards.

A. Applicability and Deviations.

1. The standards in this section apply to all ADUs not approved pursuant to Section 17.57.040 (Statewide Exception ADUs).

2. Deviations from standards in this section are allowed with planning commission design review approval at a noticed public hearing. To approve the deviation, the planning commission must make the findings in Section 17.50.030.E (Required Findings).

B. Driveways.

1. Vehicle access to parking spaces serving an ADU must be provided using a driveway curb cut shared with the primary dwelling.

2. The community development director may approve an exception to this requirement if the existing site layout or other physical constraints physically precludes shared use of a single driveway curb cut.

C. Massing. A building wall that faces and is within fifty feet of a street or an adjacent residential use shall not run in a continuous plane of more than twenty-five feet without one or more of the following treatments:

1. A change in wall plane with a minimum of four feet in depth for the facade.

2. A front porch or other covered entry feature with a minimum depth of three feet and width of six feet providing access to the dwelling's primary entrance.

3. An upper story stepback of at least six feet in depth for at least eighty percent of the street facing building wall.

4. A protruding window (such as a bay window) of at least two feet in depth.

D. Articulation. A building wall that faces and is within fifty feet of a street or an adjacent residential use shall not run in a continuous plane of more than fifteen feet without one of the following treatments included on the facade at every building story:

1. Window.

2. Entry door.

3. Two or more visibly contrasting primary materials and/or colors.

4. Wall mounted trellises for climbing plants
E. Roof Forms. Rooflines twenty-five feet or longer that face a street or an adjacent residential use shall be articulated with recessed or projecting gabled roof elements, roof dormers, changes in roof heights, changes in direction or pitch of roof slopes, and other similar methods.

F. Open Space.

1. An ADU shall have a minimum of one hundred square feet of private ADU open space or four hundred square feet of open space shared with the primary dwelling.

2. Required private open space shall comply with the following standards:
a. The open space shall be directly accessible from the ADU width and a minimum floor area of fifty square feet.
b. Patios shall have a minimum dimension of eight feet in depth and width and a minimum floor area of sixty-four square feet.
c. Open space may be covered but not fully enclosed. If covered, the minimum floor to ceiling height is eight and one-half feet. d. Ground level private open space shall be screened or buffered from open space utilized solely by the primary dwelling by landscaping, fencing, walls, trellises, or other screening elements.

3. If the open space standard in this subsection precludes an eight hundredsquare foot ADU, the community development director shall grant an exception to the standard as provided in Section 17.57.050.E (Guaranteed Allowance).

G. Exterior Materials. The primary wall finish material shall be wood, wood shingle, stone, brick, stucco, fiber cement or other cementitious material, or stone. T1-11 siding and all grooved or patterned wood panel or composite wood panel siding are prohibited.

H. Windows. Windows that face a street or an adjacent residential use shall comply with one of the following:

1. All windows shall feature built up profile trim/framing. Trim/framing must project at least two inches from the building wall with material that visually contrasts from the building wall.

2. Window glass shall be inset a minimum of two inches from the exterior wall or frame surface to add relief to the wall surface.

I. Neighbor Privacy.

1. If a building wall faces an adjacent residential use and does not comply with the minimum interior side or rear yard requirements of the applicable zoning district or combining district, windows on the wall must be:
a. 5-foot minimum sill height above the finished floor; b. Clerestory; or
c. Opaque/frosted glass.

2. Second-story exterior decks and balconies may not face an interior side or rear yard that abuts an adjacent residential use.

3. No portion of a rooftop deck may be closer than twenty-five feet from an interior side or rear yard that abuts an adjacent residential use.

J. Entrance Orientation. The primary entrance to a detached or attached ADU shall face either:

1. The front or interior of the parcel; or

2. A side or rear property line that abuts an alley or a public street.

K. Garage Conversions. When a garage is converted into an ADU, the garage door shall be removed and replaced with materials matching the remainder of the structure.”
Section 7. Chapter 17.58, Junior Accessory Dwelling Units, of Title 17, Zoning, of the Scotts Valley Municipal Code is hereby amended to read as follows:
“Chapter 17.58 JUNIOR ACCESSORY DWELLING UNITS

17.58.010 Purpose.

A. This chapter establishes standards for junior accessory dwelling units (JADUs) consistent with Government Code Sections 66333—66339. These standards are intended to increase the supply of affordable housing options in Scotts Valley while maintaining the character and quality of life of residential neighborhoods.

B. This chapter applies only to a proposed JADU as defined in Chapter 17.04 (Definitions). Standards for accessory dwelling units (ADUs) are found in Chapter

17.57 (Accessory Dwelling Units).

C. It is the city's intent for this chapter to be consistent with state law as it is amended from time to time. In cases of conflict between this chapter and state law, state law governs.

17.58.020 Permitting process.

Creating a JADU requires city approval and issuance of a building permit. The city shall review and act on a permit application for a JADU in the same manner as required for an accessory dwelling unit. See Section 17.57.020 (Permitting Process).

17.58.030 JADU standards.

The standards in this section apply to all JADUs.

A. Where Allowed.

1. A JADU is permitted on a residential lot zoned for single-family dwellings with a single-family dwelling built, or proposed to be built, on the lot.

2. A JADU is allowed on a lot that also contains a detached accessory dwelling unit as provided in Section 17.57.040 (State Exemption ADUs.) The JADU must be located within the single-family dwelling on the lot.

B. Maximum Number. A maximum of one JADU is permitted per lot.

C. Owner Occupancy.

1. If the JADU has shared sanitation facilities with the existing structure, the property owner shall reside in either the single-family dwelling on the lot or the JADU.

2. Owner-occupancy is not required if the JADU has separate sanitation facilities, or if the property is owned by a governmental agency, land trust, or housing organization.

DC. Location Within Single-Family Dwelling. The JADU shall be contained entirely within the walls of an existing or proposed single family dwelling. For purposes of this section, enclosed uses within the dwelling, such as attached garages, are considered a part of the single-family dwelling.

ED. Entrance. The JADU shall include an exterior entrance separate from the main entrance to the single-family dwelling.

FE. Bathroom.

1. A JADU must either:
a. Contain its own full bathroom with a sink, toilet and shower and/or bath facilities; or
b. Share use of a full bathroom located within the primary dwelling.

2. A JADU that shares a bathroom with the primary dwelling must have an interior entry into the main living area of the primary residence.

GF. Kitchen.

1. A JADU must contain, at a minimum, an efficiency kitchen with:
a. A kitchen sink, refrigeration, and cooking appliances; and

b. At least three linear feet of food preparation counter space and three linear feet of cabinet space.

2. Cooking appliances may consist of either a permanent cook top and/or built-in oven, or a plug-in microwave oven, hot plate, and similar appliances intended for use on top of a countertop.

HG. Parking. Off-street parking is not required for a JADU.

IH. Fire Safety. For purposes of any fire or life protection ordinance or regulation, a JADU shall not be considered a separate or new dwelling unit.

JM. Fire Sprinklers.

1. Fire sprinklers are not required in a JADU where fire sprinklers were not required for the primary dwelling at the time of construction, except as provided by Paragraph (2) below.

2. If fire sprinklers were not required for the primary dwelling at the time of construction, but the primary dwelling is altered in a manner that later required fire sprinklers, a JADU created after the alteration must be provided with fire sprinklers.

3. The construction of a JADU does not trigger a requirement for fire sprinklers to be installed in an existing single-family dwelling on the lot.

KJI. Utilities. For purposes of providing service for water, sewer, or power, including a connection fee, a JADU shall not be considered a separate or new dwelling unit unless the JADU was constructed with a new single-family dwelling.

LK. A rented JADU shall not be leased for any period less than thirty days.

ML. Impact Fees. City development impact fees shall not be imposed upon the development of a JADU.

17.58.040 Deed restriction.

A. Prior to occupancy of a JADU, the property owner shall file with the county recorder a declaration of restrictions containing a reference to the deed under which the property was acquired by the current owner. The deed restriction shall state that:

1. The JADU shall not be sold separately from the single-family residence; and

2. The JADU shall not exceed five hundred square feet of total floor area and shall comply with all standards in Section 17.58.030 (JADU Standards).

B. The above declarations are binding upon any successor in ownership of the property. Lack of compliance shall be cause for code enforcement.

C. The deed restriction shall lapse upon removal of the JADU established under this chapter.”
Section 8. GENERAL PLAN CONSISTENCY. The Municipal Code amendments are consistent with the General Plan. The Municipal Code amendments are adopted for the

specific purpose of complying with state housing law and to maintain consistency with the General Plan Housing Element.

Section 9. CEQA COMPLIANCE. The proposed amendments are exempt pursuant to the CEQA Guidelines Section 15061(b)(3), which provides that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The proposed amendments are adopted to comply with state housing laws, bringing the Zoning Code into compliance with state requirements that already apply to proposed development. In addition, the proposed ADU Ordinance amendments are exempt from CEQA pursuant to Public Resources Code section 21080.17 and CEQA Guidelines section 15282(h), which exempts adoption of ordinances implementing state law regarding accessory dwelling units, and the proposed SB 9 Ordinance amendments are exempt from CEQA pursuant to Government Code sections 65852.21(k) and 66411.7(n), which exempts adoption of ordinances implementing SB 9.

Section 10. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase or portion of this Ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

Section 11. To the extent the provisions of the Scotts Valley Municipal Code as amended by this Ordinance are substantially the same as the provisions of that Code as they read immediately prior to the adoption of this Ordinance, then those provisions shall be construed as continuations of the earlier provisions and not as new enactments.

Section 12. EFFECTIVE DATE. This ordinance shall be in full force and effect thirty (30) days from and after the date of its adoption.

Section 13. PUBLICATION. The City Clerk shall certify as to the adoption of this Ordinance and shall cause a summary thereof to be published within fifteen (15) days of adoption and shall post a certified copy of this Ordinance, including the vote for and against same, in the Office of the City Clerk, in accordance with Government Code Section 36933.

This Ordinance was introduced on the 3rd day of December, 2025, and passed and adopted on the 17th day of December, 2025, at a duly held meeting of the City Council of the City of Scotts Valley by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ______________________________
Derek Timm, Mayor
ATTEST:
_________________________________
Cathie Simonovich, City Clerk
APPROVED AS TO FORM:
_________________________________
Kirsten Powell, City Attorney

STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
651 Bannon Street
Sacramento, CA 95811
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
April 7, 2025
Taylor Bateman, Community Development Director
Planning Department
City of Scotts Valley
1 Civic Center Drive
Scotts Valley, CA 95066
Dear Taylor Bateman:

RE: Review of Scotts Valley’s Accessory Dwelling Unit (ADU) Ordinance under State ADU Law (Gov. Code, §§ 66310 - 66342)
Thank you for submitting the City of Scotts Valley (City) ADU Ordinance No. 16.142 (Ordinance), adopted December 4, 2024, to the California Department of Housing and Community Development (HCD). The Ordinance was received on January 17, 2025.

HCD has reviewed the Ordinance and submits these written findings pursuant to Government Code section 66326, subdivision (a). HCD finds that the Ordinance fails to comply with State ADU Laws in the manner noted below. Pursuant to Government Code section 66326, subdivision (b)(1), the City has up to 30 days to respond to these findings. Accordingly, the City must provide a written response to these findings no later than May 7, 2025.

The Ordinance addresses many statutory requirements; however, HCD finds that the Ordinance does not comply with State ADU Law as follows:

1. Assembly Bill (AB) 2533 (Chapter 834, § 1, Statutes of 2024) - As of January 1, 2025, there are changes to Government Code section 66332. Subdivisions (a) and (b) were changed and subdivisions (d) – (f) were added. Changes include permitting previously unpermitted ADUs, adding the same protections for JADUs, and setting additional requirements for local agencies. The City should review these new requirements and adjust the Ordinance as applicable to comply with State ADU Law.

2. Section 17.57.020, subdivision B.2 – Permitting Timelines – The Ordinance states, “If an ADU is proposed as part of an application to create a new single-family or multifamily dwelling, the City may delay acting on the ADU application until the City acts on the permit application for the new dwelling. The City shall approve or deny the ADU application without a public hearing or discretionary review within 60 days of action on the new dwelling.” This appears to mirror the language in Government Code section 65852.2, subdivision (a)(3) (which has now been repealed), prior to

Taylor Bateman, Community Development Director

AB 2221 (2022) taking effect. However, Government Code section 66317, subdivision (a), states, “The permitting agency shall either approve or deny the application to create or serve an accessory dwelling unit or a junior accessory dwelling unit within 60 days from the date the permitting agency receives a completed application if there is an existing single-family or multifamily dwelling on the lot. If the permit application to create or serve an accessory dwelling unit or a junior accessory dwelling unit is submitted with a permit application to create a new single-family or multifamily dwelling on the lot, the permitting agency may delay approving or denying the permit application for the accessory dwelling unit or the junior accessory dwelling unit until the permitting agency approves or denies the permit application to create the new single-family or multifamily dwelling, but the application to create or serve the accessory dwelling unit or junior accessory dwelling unit shall be considered without discretionary review or hearing.” As of January 1, 2023, this provision was amended to clarify that a local agency must “approve or deny” an application within the 60-day timeframe, rather than simply “act” on it. Therefore, the City should amend this section to reflect the requirement to “approve or deny” an application in accordance with State ADU Law.

3. Section 17.57.030, subdivision B.1. – Unit Combinations – The Ordinance states, “No more than one ADU is permitted on a lot with a single-family dwelling, except as allowed by state law.” However, Government Code section 66323, subdivision (a), states "Notwithstanding Sections 66314 to 66322, inclusive, a local agency shall ministerially approve an application for a building permit within a residential or mixed-use zone to create any of the following: (1) One accessory dwelling unit and one junior accessory dwelling unit per lot with a proposed or existing single-family dwelling if all of the following apply: (A) The accessory dwelling unit or junior accessory dwelling unit is within the proposed space of a single-family dwelling or existing space of a single-family dwelling or accessory structure." Paragraph (2) permits "[o]ne detached, new construction, accessory dwelling unit that does not exceed four-foot side and rear yard setbacks." The use of the term "any" followed by a list of permitted ADU types indicate that any of these ADU types can be combined on a lot zoned for single-family dwellings.

This permits a homeowner, who meets the specified requirements, to create one converted ADU; one detached, new construction ADU; and one JADU. Thus, if the local agency approves an ADU that is created from existing space, and the owner subsequently applies for a detached ADU (or vice versa) that meets the size and setback requirements of the subdivision, the local agency cannot deny the application, nor deny a permit for a JADU under this section. Therefore, the City must amend the Ordinance to provide for all ADU combinations described in Government Code section 66323.

4. Section 17.57.030, subdivision B.2. – ADUs Multifamily Lots – The Ordinance states that “[t]he number of ADUs on a lot with multifamily dwellings shall not exceed:”

Taylor Bateman, Community Development Director

a. Up to 25 percent of existing multifamily dwellings within portions of existing multifamily dwelling structures that are not used as livable space as provided in

17.57.060.C (Non-Livable Multifamily Space); and
b. Up to eight detached ADUs as provided in Section 17.57.060.D (Detached ADUs on Multifamily Lots)
However, no part of 17.57.060 addresses ADUs on multifamily lots. The City should amend this section to remove or correct this reference.

5. Section 17.57.030, subdivision N.3. – Public Transit - The Ordinance states, “As defined in Government Code Section 66313(l), public transit means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public.” However, the definition of “public transit” is found in Government Code section 66313, subdivision (m).

Therefore, the City must amend this section to correct this citation.

6. Sections 17.57.030, subdivision E.3., and 17.57.050, subdivisions A.2.a., and E. – Objective Standards – The Ordinance states “Limits on floor area, lot coverage, open space, and front setbacks… must permit at least an 800-squarefoot detached or attached ADU… if the proposed ADU complies with all other development standards. The Community Development Director shall grant an exception to a Specified Standard if…:3. There is no feasible alternative to achieve a Baseline ADU without the exception.”
Additionally, the Ordinance includes Tables 1 and 3, which address maximum floor area and maximum height, respectively, based on the size of the lot for the proposed ADU. However, Government Code section 66314, subdivision (b)(1) states, “The ordinance shall do all of the following… Impose objective standards on accessory dwelling units that include, but are not limited to, parking, height, setback, landscape, architectural review, maximum size of a unit, and standards that prevent adverse impacts on any real property that is listed in the California Register of Historical Resources. These standards shall not include requirements on minimum lot size.” The use of the term “feasible” in the Ordinance is subjective, and as such, is in violation of State ADU Law; minimum lot size is also precluded from applicable objective standards. Therefore, the City must amend this section to remove the subjective criteria, and minimum lot size requirements.

7. Section 17.57.030, subdivision N.3.e. – Parking – The Ordinance states, “As used in this section, a car share vehicle means a motor vehicle that is operated as part of a regional fleet by a public or private car sharing company or organization that meet all the following criteria:
(1) Provides hourly or daily service;

Taylor Bateman, Community Development Director

(2) Vehicle reservations are processed and paid for using an on-line system; (3) Vehicles can be accessed where they are parked without having to go to a different physical location to execute a contract and/or pick up keys; and (4) Fleet has more than five cars in Scotts Valley and more than 20 cars in Santa Cruz County.”
However, Government Code section 66322, subdivision (a)(5), states, “A local agency shall not impose any parking standards for an accessory dwelling unit… When there is a car share vehicle located within one block of the accessory dwelling unit.” The additional criteria used in the Ordinance to define the term “car share vehicle” is outside the maximum standards which may be applied to parking exemptions under Government Code section 66322, subdivision (a). Therefore, the City must amend this section to remove the additional criteria.

8. Section 17.57.030, subdivision Q. – Additional Standards – The Ordinance states, “The requirements in this section apply to all ADUs subject to this chapter… Hillside Residential Combining District. An ADU within the HR Hillside Residential Combining District shall comply with all objective standards in Chapter 17.40.” However, Government Code section 66323, subdivision (b), states, “A local agency shall not impose any objective development or design standard that is not authorized by this section upon any accessory dwelling unit that meets the requirements of any of paragraphs (1) to (4), inclusive, of subdivision (a).” Imposing objective criteria from another section of the City’s zoning code would be a violation of State ADU Law. Therefore, the City must amend this section to remove this requirement.

9. Sections 17.57.040, subdivision B.2., and 17.57.050, subdivision E. – Height – The Ordinance provides a maximum height for detached “Statewide Exemption ADUs” on a lot with an existing or proposed single family dwelling of 16 feet, and for all others, “The height of an ADU shall not exceed the maximum shown in Table 3.” Table 3 addresses height but does not capture the full extent of the minimum height allowances within State ADU Law. Government Code section 66321, subdivision (b)(4)(B) states “a local agency shall not establish by ordinance any of the following:
(4) Any height limitation that does not allow at least the following, as applicable:
(A) A height of 16 feet for a detached accessory dwelling unit on a lot with an existing or proposed single family or multifamily dwelling unit. (B) A height of 18 feet for a detached accessory dwelling unit on a lot with an existing or proposed single family or multifamily dwelling unit that is within one-half of one mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code. A local agency shall also allow an

Taylor Bateman, Community Development Director

additional two feet in height to accommodate a roof pitch on the accessory dwelling unit that is aligned with the roof pitch of the primary dwelling unit.
(C) A height of 18 feet for a detached accessory dwelling unit on a lot with an existing or proposed multifamily, multistory dwelling. (D) A height of 25 feet or the height limitation in the local zoning ordinance that applies to the primary dwelling, whichever is lower, for an accessory dwelling unit that is attached to a primary dwelling. This subparagraph shall not require a local agency to allow an accessory dwelling unit to exceed two stories.”
Additionally, Government Code section 66323, subdivision (a)(2) states “…a local agency shall ministerially approve an application for a building permit within a residential or mixed-use zone to create…
(2) One detached, new construction, accessory dwelling unit that does not exceed four-foot side and rear yard setbacks for a lot with a proposed or existing single-family dwelling…. A local agency may impose the following conditions on the accessory dwelling unit…:
(B) A height limitation as provided in subparagraph (A), (B), or (C) of paragraph (4) of subdivision (b) of Section 66321, as applicable.” Restricting units under the “Statewide Exemption ADUs” to 16 feet does not comply with State ADU Law, as it restricts the height allowances permitted under Government Code section 66321, subdivision (b)(4). Finally, Table 3 in the Ordinance does not include a provision which allows for an additional two feet of height to match roof pitch. Therefore, the City must amend these sections to provide for the minimum height allowances in State ADU Law.

10.Section 17.58.030 – JADU Standards – The Ordinance includes the majority of State ADU Law’s JADU provisions, beginning with Government Code section 66333. However, the Ordinance does not include an owner occupancy requirement pursuant to Government Code section 66333, subdivision (b), which states, “The ordinance may require a permit to be obtained for the creation of a junior accessory dwelling unit, and shall… Require owner-occupancy in the single family residence in which the junior accessory dwelling unit will be permitted. The owner may reside in either the remaining portion of the structure or the newly created junior accessory dwelling unit. Owner-occupancy shall not be required if the owner is another governmental agency, land trust, or housing organization.” Allowing an owner who is not a governmental agency, land trust, or housing organization to construct a JADU without occupying either the JADU or the remainder of the single-family dwelling does not comply with State ADU Law.

Therefore, the City must amend this section to include the owner-occupancy restriction.

Taylor Bateman, Community Development Director

The City has two options in response to this letter.1 The City can either amend the Ordinance to comply with State ADU Law2 or adopt the Ordinance without changes and include findings in its resolution adopting the Ordinance that explain the reasons the City believes that the Ordinance complies with State ADU Law despite HCD’s findings.3 If the City fails to take either course of action and bring the Ordinance into compliance with State ADU Law, HCD must notify the City and may notify the California Office of the Attorney General that the City is in violation of State ADU Law.4
HCD appreciates the City’s efforts in the preparation and adoption of the Ordinance and welcomes the opportunity to assist the City in fully complying with State ADU Law. Please feel free to contact Tyler Galli at [email protected] if you have any questions.

Sincerely,
Jamie Candelaria
Senior Housing Accountability Manager
Housing Policy Development Division
Enclosure
1 Gov. Code, § 66326, subd. (c)(1).
2 Gov. Code, § 66326, subd. (b)(2)(A).
3 Gov. Code, § 66326, subd. (b)(2)(B).
4 Gov. Code, § 66326, subd. (c)(1).

State ADU/JADU Law Statutory Conversion Table
New Government Code Sections Previous Government Code Sections Article 1. General Provisions
66310 65852.150 (a)
66311 65852.150 (b)
66312 65852.150 (c)
66313 General Definition Section
65852.2 (j)
65852.22 (j)
Article 2. Accessory Dwelling Unit Approvals
66314 65852.2(a)(1)(A), (D)(i)-(xii), (a)(4)-(5)
66315 65852.2 (a)(8)
66316 65852.2 (a)(6)
66317 65852.2 (a)(3), (a)(7)
66318 65852.2 (a)(9), 65852.2 (a)(2)
66319 65852.2 (a)(10)
66320 65852.2 (b)
66321 65852.2 (c)
66322 65852.2 (d)
66323 65852.2 (e)
66324 65852.2 (f)
66325 65852.2 (g)
66326 65852.2 (h)
66327 65852.2 (i)
66328 65852.2 (k)
66329 65852.2 (l)
66330 65852.2 (m)
66331 65852.2 (n)
66332 65852.23.

Article 3. Junior Accessory Dwelling Units
66333 65852.22 (a)
66334 65852.22 (b)
66335 65852.22 (c)
66336 65852.22 (d)
66337 65852.22 (e)
66338 65852.22 (f)-(g)
66339 65852.22 (h)
Article 4. Accessory Dwelling Unit Sales
66340 65852.26 (b)
66341 65852.26 (a)
66342 65852.2 (a)(10)

Nov 20, 2025
City of Scotts Valley
1 Civic Center Drive
Scotts Valley, CA 95066
By Email: [email protected]
CC: [email protected]; [email protected]; [email protected] Re: Proposed Changes to the City’s ADU Ordinance
Dear Scotts Valley Planning Commission,
The California Housing Defense Fund (“CalHDF”) submits this letter regarding the proposed amendments to the City’s accessory dwelling unit (“ADU”) ordinance, which are calendared as Public Hearing agenda item 1 for the November 20, 2025 Planning Commission hearing.

CalHDF appreciates that the City is amending its ADU ordinance to keep pace with change in state law. However, the proposed ordinance’s requirements conflict with state law in several areas, as discussed below.

Background
The law gives local governments authority to enact zoning ordinances that implement a variety of development standards on ADUs. (Gov. Code, § 66314.) The standards in these local ordinances are limited by state law so as not to overly restrict ADU development. (See id.) Separately from local ADU ordinances, Government Code section 66323 establishes a narrower set of ADU types that local governments have a ministerial duty to approve. “Notwithstanding Sections 66314 to 66322 ... a local agency shall ministerially approve” these types of ADUs. (Id. at subd. (a).) This means that ADUs that satisfy the minimal requirements of section 66323 must be approved regardless of any contrary provisions of the local ADU ordinance. (Ibid.) Local governments may not impose their own standards on such ADUs. (Gov. Code, § 66323, subd. (b) [“A local agency shall not impose any objective development or design standard that is not authorized by this section upon any accessory dwelling unit that meets the requirements of any of paragraphs (1) to (4), inclusive, of subdivision (a).”].) 2201 Broadway, PH1, Oakland, CA 94612
[email protected]

In addition, ADUs that qualify for the protections of Government Code section 66323, like other ADUs, must be processed by local governments within 60 days of a complete permit application submittal. (Gov. Code, § 66317, subd. (a).) State law also prohibits creating regulations on ADU development not explicitly allowed by state law. Government Code Section 66315 states, “No additional standards, other than those provided in Section 66314, shall be used or imposed, including an owner-occupant requirement, except that a local agency may require that the property may be used for rentals of terms 30 days or longer.”
Impermissible Geographic Restriction
Code section 17.57.030(Q) prohibits all ADUs, including section 66323 ADUs, in certain portions of the City.

However, under no circumstances may the City prohibit ADUs developed pursuant to Government Code section 66323. Government Code section 66323, subdivision (a) imposes a duty on the City to permit ADUs in all residential and mixed-use zoning districts.

Government Code section 66323, subdivision (b) forbids the City from applying local standards. This means that the City must allow section 66323 ADUs in all residential and mixed-use districts.

The City must amend its ADU code to allow section 66323 ADUs on all parcels within residential and mixed-use zoning districts, as is required by Government Code section 66323.

Impermissible Parking Requirements
Code section 17.57.030(N)(1) imposes parking requirements on all ADUs, less certain specified exceptions.

However, as discussed supra, the City cannot impose local development standards on ADUs that conform to the requirements of Government Code section 66323, subdivision (a), as section 66323, subdivision (b) specifically exempts such ADUs from all local requirements.

This means that the City cannot impose parking requirements on section 66323 ADUs.

From page 20 of the January 2025 HCD ADU Handbook (emphasis added):

A local agency may not impose development or design standards, including both local standards and standards found in State ADU Law, on 66323 Units that are not specifically listed in Government Code section 66323. (Gov. Code, § 66323, subds. (a), (b).) This includes, but is not limited to, parking, height, setbacks, or other zoning provisions (e.g., lot size, open space, floor area ratio, etc.). 2 of 3

The City must amend its ADU ordinance to exempt section 66323 ADUs from parking requirements, as is required by state law.

Impermissible Discretionary Process
Code section 17.57.060(A)(2) requires Planning Commission review of certain ADUs. However, Government Code sections 66316 and 66317 explicitly prohibit any discretionary processes and all public hearings for ADUs.

The City may not conduct discretionary, public review of any ADUs. If the City wishes to allow creative designs that do not comport with the standards in its ADU ordinance, then it must establish objective criteria and approve such ADUs via a ministerial process without public hearing, as is required by state law.
⧫⧫⧫
CalHDF appreciates that the City is updating its zoning code to keep pace with changes in state law. However, CalHDF urges the City to make sure its zoning code actually complies with state law.

CalHDF is a 501(c)(3) non-profit corporation whose mission includes advocating for increased access to housing for Californians at all income levels, including low-income households. You may learn more about CalHDF at www.calhdf.org.

Sincerely,
Dylan Casey
CalHDF Executive Director
James M. Lloyd
CalHDF Director of Planning and Investigations
3 of 3

AGENDA ITEM 1.

DATE: 12/3/2025
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 12/3/2025
TO: Honorable Mayor and City Council
FROM: Mali LaGoe, City Manager
APPROVED: Mali LaGoe, City Manager
SUBJECT: Approve a Resolution of Intention to form an Enhanced Infrastructure Financing District (EIFD)

SUMMARY OF ISSUE
As a result of the elimination of redevelopment agencies in California, the City of Scotts Valley (“City”) lost a tax increment financing (TIF) tool to invest in public facilities supporting the development of communities. In 2014, SB 628 created a new tax increment financing tool called the Enhanced Infrastructure Financing District (EIFD). The original legislation has been amended to modify the EIFD formation procedural requirements and requirements to issue bonds to finance infrastructure.

EIFDs aid cities in funding public facilities and other public investments to foster future development and increase property values. By capturing tax increment revenue generated within the district as new development occurs and property values increase over time, like a redevelopment project area, a portion of tax increment revenue is redirected from the taxing entity to the EIFD. Importantly, the establishment of EIFDs does not increase property taxes or any other taxes for landowners within or outside the EIFD boundaries.

The following chart illustrates how tax TIF captures that new revenue from new development into the EIFD (note these dollars are for illustrative purposes only):

The City has been evaluating the use of an EIFD to facilitate economic development across

various significant development opportunity sites throughout the City via investment into critical infrastructure. To date, staff and consultant Kosmont Companies have prepared detailed analysis and conducted meetings with County of Santa Cruz and Scotts Valley Fire Protection District representatives. Feedback has been positive thus far, although there are no guarantees of partnership between entities in the EIFD thus far.

ANALYSIS
Adoption of the City Council’s Resolution of Intention (Attachment 1) provides for the following:

1. Preliminary boundaries of the EIFD. The proposed EIFD boundaries are noted in color in Exhibit A of the Resolution of Intention. Though the exact boundaries of the EIFD are subject to further review and refinement as the formation process continues, the current boundary is focused on various significant development opportunity sites throughout the City (e.g., Town Center, Housing Element opportunity sites). The land included in these boundaries totals approximately 236 acres, or approximately 8% of the City’s total acreage (approximately 4% of the total existing assessed value within the City).

2. The public facilities and development proposed to be financed by the EIFD. The activities listed under the Resolution of Intention include all eligible activities under the EIFD legislation and are listed in Exhibit B to the Resolution of Intention (more specific projects will be delineated in the required Infrastructure Financing Plan prior to district formation). Discussions so far at the staff level between the City, County, and Fire District have identified the following examples of potential projects to be funded:
• Town Center blended-use supportive infrastructure (e.g., new traffic signals) • Water and sewer improvements (e.g., sewer line along Mount Hermon Road) • Mount Hermon and Granite Creek roadway interchanges with Hwy 17 • Fire facilities
• Affordable housing gap financing
• Community facilities (e.g., senior center / community center / emergency shelter) • Wildfire prevention (e.g., fire breaks, prescribed burning, structure hardening, vegetation control).

3. Use of Incremental Tax Revenue. The Resolution of Intention anticipates that a portion (not all) of the City’s future property tax increment revenue generated within the EIFD will be allocated to the EIFD. The exact amounts will be determined in future resolutions adopted by the City Council. It is additionally possible that the County or Fire District or both entities will additionally participate in the EIFD, in which case, a portion of the each entity’s property tax increment revenue will also be allocated to the EIFD.

4. Establishes a Public Financing Authority to serve as the governing board of the EIFD. The Public Finance Authority (PFA) shall be initially comprised of three (3) members of the City Council and two (2) members of the public appointed by the City Council. In a scenario where the City partners with another taxing entity such as the County or Fire District, the suggested PFA composition based on the EIFD statute and other EIFDs across the State would be five (5) members, including two (2) members of the City Council, one (1) member of the County Board of Supervisors or Fire District

Board, one (1) member of the public appointed by the City Council, and one (1) member of the public appointed by the County Board of Supervisors or Fire District Board. If both the County and Fire District partner with the City, the City may choose to expand the PFA to include additional members, so long as the majority of PFA members are elected officials from one of the participating entities, and so long as there are at least two members of the public.

5. Sets a time and place for the first public hearing on the EIFD to be conducted by the Public Financing Authority. The first public hearing is tentatively scheduled for June X, 2026 at 6:00pm (date TBD), or as soon thereafter as the matter may be heard, in the City Hall Council Chambers, 1 Civic Center Drive, Scotts Valley, CA 95066.

Approval of the Resolution of Intention and appointments to the PFA begin a series of activities that will take place over the next several months, primarily by the PFA Board. The following schedule outlines the various key tasks and milestones in the formation process. As the following proposed schedule indicates, the final City Council approvals are expected to follow later in calendar year 2026.

Task Target Date Notes
Initial meeting of Public
Financing Authority (PFA)
March 2026 PFA will review the EIFD, potentially adopt
bylaws, direct the preparation of
the draft Infrastructure Financing Plan (IFP)
PFA meets to review draft IFP May 2026
City Council / other
participating agency legislative
bodies consider
resolution approving the IFP an
d allocation of property tax
increment
May/June 2026
PFA holds Public Hearing #1 June 2026 Additional comments taken; PFA takes action to modify or reject IFP, or
otherwise proceed to Public Hearing #2
PFA holds Public Hearing #2 a
nd Protest Proceeding
August 2026 If majority protest exists – PFA takes action to terminate EIFD. If no
majority protest, PFA can propose adoption
of the IFP and formation of the EIFD
Staff files EIFD with State Boar
d of Equalization (BOE)
August 2026
The IFP referenced in the timeline above becomes the roadmap for the work to be accomplished by the EIFD. The IFP will analyze the tax increment anticipated to be generated by the properties in the EIFD boundary, consider the cost of various infrastructure options to be considered for investment, evaluate the bonding capacity created by the tax increment generated, estimated general fund fiscal impacts, and provide a plan for how the EIFD will capture tax increment to fund infrastructure investments. The IFP contents are currently under development and will be provided in draft format to the public, PFA, and City Council in accordance with the schedule above.

Public information is an important part of the EIFD formation process. A web page will be

developed that will serve as a resource to interested stakeholders. Landowners and residents within the EIFD boundaries will also receive mailed notifications of public meetings and hearings throughout the formation process, and public hearings will additionally be advertised via local newspaper. In the event of a majority protest by property owners or residents within the boundaries, the formation proceedings would be discontinued.

CEQA REVIEW
The City Council’s adoption of the Resolution of Intention and establishment of the PFA are exempt from the California Environmental Quality Act (CEQA) as they are actions solely related to the creation of a government funding mechanism and the administrative or organizational activities of the City. Therefore, these actions do not constitute a “project” pursuant to CEQA Guidelines Sections 15378(b)(4) and 15378(b)(5). Neither of these actions could result in a physical change in the environment because the City has not committed itself to any specific project(s) that could be funded by the EIFD. As a separate and independent ground, these actions are exempt from the requirements of CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that they will have a significant effect on the environment. However, future actions (such as the approval of infrastructure improvements using funding from the EIFD) will be subject to environmental review in accordance with CEQA.

FISCAL IMPACT
There is no immediate fiscal impact for establishing the Scotts Valley EIFD or PFA. If ultimately established, the EIFD would create the opportunity to use tax increment financing to fund targeted infrastructure investments in the City. Further information regarding fiscal impact will be analyzed as part of the development of the IFP, which will be presented to the PFA and City Council as noted in the timeline above.

STAFF RECOMMENDATION
Staff recommends that the City Council:

1. Adopt Resolution No. 2080 declaring its intention to establish the Scotts Valley Enhanced Infrastructure Financing District (EIFD) and establishing the Scotts Valley EIFD Public Financing Authority (PFA); and

2. Appoint two members of the City Council to the Public Financing Authority Board, and appoint one member of the City Council as alternate Board member.

TABLE OF CONTENTS

1. Resolution No. 2080 EIFD Resolution of Intent Draft

2. EXHIBIT A Draft Scotts Valley EIFD Boundaries

3. EXHIBIT B EIFD List of Authorized Public Facilities

RESOLUTION NO. 2080

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCOTTS

VALLEY DECLARING ITS INTENTION TO ESTABLISH THE SCOTTS

VALLEY ENHANCED INFRASTRUCTURE FINANCING DISTRICT TO

FINANCE THE CONSTRUCTION, REPAIR, ACQUISITION, AND/OR

MAINTENANCE OF CAPITAL IMPROVEMENTS AND FACILITIES,

INCLUDING THE ACQUISITION AND/OR REMEDIATION OF LAND
FOR SUCH IMPROVEMENTS AND FACILITIES; ESTABLISHING A
PUBLIC FINANCING AUTHORITY; AND AUTHORIZING CERTAIN

OTHER ACTIONS RELATED THERETO
WHEREAS, SB 628, effective as of January 1, 2015, allows a city or county to create a separate government entity known as an “Enhanced Infrastructure Financing District” (EIFD) within a defined area to finance certain infrastructure projects with community-wide benefits; and WHEREAS, pursuant to Chapter 2.99 of Part 1 of Division 2 of Title 5 of the California Government Code (commencing with Section 53398.50) (the "EIFD Law"), the City Council of the City of Scotts Valley ("Council") is authorized to initiate the process to establish an EIFD; and, WHEREAS, EIFDs are financed through tax increment generated from the growth in property taxes collected from within a designated district boundary. There are no new taxes or impacts to the property owner within an established EIFD; and, WHEREAS, EIFD tax increment may be used to pay for a variety of public facilities and other projects authorized by the EIFD Law within the established EIFD boundaries or outside of the established EIFD boundaries if there is a tangible connection to the work of the EIFD, including but not limited to infrastructure such as roads, utilities, streetscapes, parks and public recreation, or other community facilities. Affordable housing, including affordable senior housing, is also an eligible activity; and,
WHEREAS, the City retained Kosmont Companies as a consultant to prepare an evaluation of EIFD implementation feasibility; and,
WHEREAS, the prerequisites set forth in Government Code Section 53398.54 have been complied with prior to the City initiating the creation of or participating in the governance of the EIFD, and the City will provide the required certification to the California Department of Finance (“DOF”) in accordance with the EIFD Law; and,
WHEREAS, the proposed boundaries of the Scotts Valley EIFD are identified on Exhibit A entitled "Proposed Scotts Valley EIFD Boundary", a copy which is on file in the office of the City Clerk; and,
WHEREAS, the EIFD will be governed by a Public Financing Authority ("PFA") board which will be responsible for implementing the Infrastructure Financing Plan for the EIFD ("IFP"), and the PFA is required to be established by the City Council at the same time that the Council adopts its intention to form the proposed EIFD; and,

WHEREAS, this action is exempt from the California Environmental Quality Act (“CEQA”) as an action solely related to financing and is not in-and-of itself a “project” (pursuant to CEQA Guidelines Section 15378) since it does not result in a physical change in the environment because the City has not committed itself to fund any specific projects through the EIFD. However, future actions (such as the funding and/or approval of infrastructure improvements using funding from the EIFD) will be subject to environmental review in accordance with CEQA.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY HEREBY RESOLVES AS FOLLOWS:

Section 1. The City Council of the City of Scotts Valley proposes and intends to cause the establishment of an EIFD under the provisions of the EIFD Law.

Section 2. The name proposed for the EIFD shall be the “Scotts Valley Enhanced Infrastructure Financing District.”
Section 3. The proposed boundaries of the EIFD are as shown on Exhibit A attached hereto, which are preliminarily approved and on file in the office of the City Clerk and incorporated herein by reference.

Section 4. The types of public facilities and development proposed to be financed or assisted by the EIFD pursuant to the EIFD Law are those listed on Exhibit B, attached hereto and incorporated herein by reference.

Section 5. The City Council hereby finds that the EIFD is necessary for the area within the boundaries of the EIFD and the City. The City Council's stated goals for the EIFD are to create a means by which to assist in the provision of public facilities or other specified projects of communitywide significance that provide significant benefits to, promote economic development of, and enhance quality of life within, the boundaries of the EIFD or the surrounding community.

Section 6. The City Council hereby declares that, pursuant to the EIFD Law and if approved by resolution pursuant to Government Code Section 53398.68, incremental property tax revenue from the City of Scotts Valley and some or all other affected taxing entities within the EIFD may be used to finance the activities described in Section 4 and listed on Exhibit B. The incremental property tax financing will be described in an IFP to be prepared for approval by the PFA, the City Council, and the legislative bodies of all participating taxing entities under EIFD Law.

Section 7. The City or County of Santa Cruz may allocate tax revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code) to the EIFD pursuant to Government Code Section 53398.75.5, if applicable. The City Council does not intend to contribute sales and use taxes or transactions and use taxes to the EIFD.

Section 8. The City Council hereby establishes the “Public Financing Authority of the Scotts

Valley Enhanced Infrastructure Financing District” to serve as the governing board of the EIFD:

A. The PFA membership shall be comprised initially of three members of the City Council appointed by the City Council and two public members selected by the City Council. Members shall serve at the pleasure of the City Council, as the case may be, and shall serve until their successor assumes office.

B. The City Council further declares that, pursuant to Government Code Section 53398.51.1, should one or more additional taxing entities agree to participate as a taxing entity, then the PFA membership shall be modified in accordance with Government Code Section 53398.51.1. For example, if the County of Santa Cruz agrees to participate as a taxing entity, and the participating taxing entities consist of the City and the County, then the PFA membership shall be modified to be two members of the City Council, one member of the County Board of Supervisors (“Board of Supervisors”), one member of the public appointed by the City Council, and one member of the public appointed by the Board of Supervisors. If an additional taxing entity such as the Scotts Valley Fire Protection District agrees to participate as a taxing entity, and the participating taxing entities consist of the City, County, and Fire District, then the PFA membership may be modified, as an example, to be one member of the City Council, one member of the County Board of Supervisors, one member of the Fire District Board, and at least two members of the public to be determined at a future date based on agreement between participating taxing entities.

C. Members shall serve at the pleasure of their respective appointing legislative bodies and shall serve until their successor assumes office.

D. The legislative body of each participating taxing entity may appoint one of its members to be an alternate member of the PFA board who may serve and vote in place of a member who is absent or disqualifies themselves from participating in a meeting of the PFA.

E. The members are subject to compliance with the EIFD Law and all applicable ethics laws, including Article 2.4 (commencing with Section 53234) of Chapter 2 of the Government Code.

F. The City Council, and the governing bodies of any other participating entities shall comply with Government Code Section 54974.

Section 8. The City Council hereby sets the time and place for a public hearing of the PFA regarding the proposed EIFD and IFP, to be held on June X, 2026 at 6:00pm (Date TBD), or as soon thereafter as the matter may be heard, at City Hall Council Chambers, 1 Civic Center Drive, Scotts Valley, CA 95066.

Section 9. Pursuant to Government Code Section 53398.60, the City Clerk is hereby directed to mail a copy of this Resolution to the PFA and each owner of land (as defined in the EIFD Law), or alternatively with respect to the owners of land may mail a

single-page notice of intention identified in Government Code Section 53398.60(b), within the EIFD and to each affected taxing entity (as defined in the EIFD Law). In addition, the City Clerk is hereby directed to cause notice of the public hearing to be published not less than once a week for four successive weeks in a newspaper of general circulation published in the City. The notice shall state that the EIFD will be used to finance public works, briefly describe the facilities, briefly describe the proposed financial arrangements, including the proposed commitment of incremental tax revenue, describe the boundaries of the proposed EIFD and state the day, hour, and place, when and where any persons having any objections to the proposed IFP, or the regularity of any of the prior proceedings, may appear before the PFA and object to the adoption of the proposed IFP.

Section 10. The Successor Agency to the Redevelopment Agency of the City of Scotts Valley (Successor Agency) has received a finding of completion, as specified in California Health and Safety Code Section 34179.7.

Section 11. In accordance with Government Code Section 53398.54, the City certifies to the DOF and to the PFA that no former Redevelopment Agency of the City of Scotts Valley (Former RDA) assets that are the subject of litigation involving the State of California, where the City or the Successor Agency are a named plaintiff, have been or will be used to benefit any efforts of the EIFD unless the litigation and all possible appeals have been resolved in a court of law. The City Clerk is authorized and directed on behalf of the City to provide or make this certification to the DOF within 10 days after the City Council’s action to participate in the EIFD pursuant to Government Code Section 53398.68 or the City Council’s action to form the EIFD pursuant to Government Code Section 53398.69, by delivery of a copy of the appropriate Resolution or signing a separate certification, if and as required by the DOF.

Section 12. The State Controller has completed its review as specified in California Health and Safety Code Section 34167.5 of asset transfers between the Former RDA, the City or any other public agency. The Successor Agency and the City have complied with all of the State Controller's findings and orders stemming from such review.

Section 13. This Resolution in no way obligates the PFA to establish any EIFD.

Section 14. lf any section, subsection, phrase or clause of this Resolution is for any reason found to be invalid, such section, subsection, phrase or clause shall be severed from, and shall not affect the validity of, all remaining portions of this Resolution that can be given effect without the severed portion.

Section 15. This Resolution shall take effect immediately upon its adoption.

Section 16. The City Manager, or designee, are hereby authorized and directed to take all actions necessary or advisable to give effect to the transactions contemplated by this Resolution.

Section 17. The City Clerk of the City of Scotts Valley shall certify as to the adoption of this Resolution.

The above and foregoing resolution was duly and regularly adopted by the City Council of the City of Scotts Valley at a meeting held on the 3rd day of December 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Approved: _____________________
Derek Timm, Mayor
Attest:

Cathie Simonovich, City Clerk

EXHIBIT A
Draft Scotts Valley Enhanced Infrastructure Financing District (EIFD) Boundaries Proposed EIFD parcels are highlighted in color above and total approx. 236 acres.

Scotts Valley City boundaries are noted for reference only

EXHIBIT B

CITY OF SCOTTS VALLEY

ENHANCED INFRASTRUCTURE FINANCING DISTRICT (EIFD)

LIST OF AUTHORIZED PUBLIC FACILITIES
The Scotts Valley EIFD may finance the purchase, construction, expansion, improvement, seismic retrofit, or rehabilitation of any real tangible property with an estimated useful life of 15 years or longer which are public capital facilities or other projects of community-wide significance that provide significant benefits to the EIFD or the surrounding community. The EIFD may also finance the ongoing or capitalized costs to maintain public capital facilities financed in whole or in part by the EIFD. Facilities funded may be located outside the boundaries of the EIFD, as long as they have a tangible connection to the work of the EIFD as detailed in the infrastructure financing plan. The EIFD may also finance the planning and design work that is directly related to the purchase, construction, expansion, or rehabilitation of property. The EIFD may finance costs described in Government Code Sections 53398.52 [list of eligible improvements] and 53398.56 [replacement housing and relocation obligations if required by actions of EIFD]. Projects financed by the EIFD may include, but not be limited to, all of the following:
• Transit facilities, including City contributions toward regional transportation infrastructure improvements, and First/Last Mile (FLM) improvements;
• Affordable housing as authorized under the EIFD Law;
• Highways, interchanges, and ramps;
• Bridges;
• Arterial streets;
• Parking facilities;
• Parks, recreational facilities, and open space;
• Sewage treatment and water reclamation plants and interceptor pipes; • Facilities for the collection and treatment of water for urban uses; • Facilities for the transfer and disposal of solid waste, including transfer stations and vehicles;
• Storm water conveyance and collection facilities;
• Flood control levees and dams, retention basins, and drainage channels; • Child care facilities;
• Libraries;
• Broadband and telecommunications infrastructure;
• Sidewalks and streetscape improvements;
• Bicycle lanes and paths;
• Public art;
• Corporation yards;
• Police facilities;
• Brownfield restoration and other environmental mitigation; • Projects that implement a sustainable communities strategy and transit priority projects; • Acquisition, construction, or repair of industrial structures for private use; • Acquisition, construction, or repair of commercial structures by the small business occupant of such structures, if such acquisition, construction, or repair is for purposes of fostering economic recovery from the COVID-19 pandemic and of ensuring the long-term economic sustainability of small businesses;

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

Other Expenses
In addition to the direct costs of the above facilities, other incidental expenses as authorized by the EIFD Law, including, but not limited to, the cost of environmental evaluation and environmental remediation; engineering and surveying; construction staking; utility relocation and demolition costs incidental to the construction of the facilities; costs of project/construction management; costs (including the costs of legal services) associated with the creation of the EIFD; costs of issuance of bonds or other debt of the EIFD or of any other public agency for authorized facilities and payment of debt service thereon; financing costs of improvements incurred by developers until reimbursement from the EIFD; costs incurred by the County or the EIFD in connection with the division of taxes pursuant to Government Code Section 53398.75; or costs otherwise incurred in order to carry out the authorized purposes of the EIFD; reimbursements to other areas for facilities serving the EIFD; and any other expenses incidental to the formation and implementation of the EIFD and to the construction, completion, inspection and acquisition of the authorized facilities.