Scotts Valley City Council
August 19, 2026

AGENDA
Meeting of the
Scotts Valley City Council
In-Person and Remote Access
Date: August 19, 2026
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 8-13-
2026 at City Hall, SV
Senior Center, SV Public
Works Building, and on the
Internet
at: www.scottsvalley.gov

ELECTED OFFICIALS CITY STAFF MEMBERS
Donna Lind, Mayor
Steve Clark, Vice Mayor
Krista Jett, Council Member
Derek Timm, 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: August 19, 2026
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: August 19, 2026

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 minutes of 08-05-2026

2. Second reading and adoption of Ordinance No. 204 Modifying Scotts Valley Municipal Code Title 2 Regarding Administration and Personnel

3. Investment Report for the Quarter Ended June 30, 2026

4. Monthly Treasurer's Report - May 2026

5. Annual Surplus Property Report – Fiscal Year 2025/26

PUBLIC HEARINGS

1. Approval of rental fee of the Community Room

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. Future Council Agenda Items

CONVENE TO CLOSED SESSION

CLOSED SESSION SUBJECT(S)

1. Conference with legal counsel regarding anticipated litigation Legal Authority: Government Code Section 54956.9(d)(4)
Number of Cases: 1
Staff Present: City Manager, City Attorney, Administrative Services Director

2. Public Employment
Legal Authority: Government Code Section 54957

City Council Meeting Agenda Page 4
Date: August 19, 2026
Position: City Manager
Staff Present: City Manager, City Attorney, Administrative Service Director

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) 440-5608 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; 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: August 19, 2026

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
Jayson Rutherford, Police Chief
Taylor Bateman, Community Development
Director
Stephanie Hill, Administrative Services Director
Rodolfo Onchi, Public Works Director
Daniel Esqueda, Intern
Madeline Taylor, Intern
Cathie Simonovich, City Clerk

ELECTED OFFICIALS
PRESENT:

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

COMMITTEE REPORTS

MINUTES
Meeting of the
Scotts Valley City Council
Date: August 5, 2026
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 7-31-2026 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 6:00 PM.

CM Timm attended an Economic Development Subcommittee meeting where they discussed the City's 60th birthday events.

CM Wimp attended a Local Agency Formation Commission (LAFCO) meeting where

City Council Meeting Minutes
Date: August 5, 2026

CITY MANAGER REPORT
they received an update on the Big Basin Water Company.

VM Clark attended a Regional Transportation Commission (RTC) meeting. He noted that the RTC is working on the response to the recent Santa Cruz County Civil Grand Jury report. He also attended the ribbon-cutting ceremony for the Panther Beach parking lot. The next RTC meeting is scheduled for August 6 where they will consider the Measure D sales tax revenue bonds.

VM Clark attended a meeting of the Area Agency on Aging Master Plan on Aging work group meeting.

VM Clark attended a Library Financing Authority meeting where they approved the FY 2026/27 budget.

Mayor Lind attended a special Santa Cruz Metropolitan Transit District (METRO) meeting and noted that METRO will not place a sales tax measure on the November 2026 ballet.

Mayor Lind thanked everyone who assisted with the planning and implementation of the City's 60th Birthday Bash, and she noted that although Assemblymember Pellerin was not able to attend the celebration, she awarded the City with a resolution honoring the City's 60th anniversary of incorporation. Mayor Lind passed the resolution to staff.

This week we’re celebrating 60 years as a City. Thank you to everyone who attended the City’s 60th Birthday party on Sunday at Skypark. In addition, events continue all week with a Shop, Snap, Win game to support local businesses all weekend. More info is on the City’s website, social media accounts, and on Flyers posted around the City.

Also congratulations to the Police Department for another successful National Night Out event last night.

We welcomed a new staff member in Wastewater in July – Adrian Vazquez joined the team as Chief Plant Operator, a crucial role to supervise our staff and support Capital Improvement Projects (CIP) at the plant.

We’re also looking forward to welcoming an Engineering Technician this month to help alleviate the workload in the Engineering Division of the Public Works Department.

With this new hire, the City will once again be fully staffed.

Our Recreation Division staff will be moving to the Community Center Annex next week. They will be available for drop-ins on Tuesdays and Thursdays and by appointment Mondays, Wednesdays, and Fridays. This move is necessary to make

City Council Meeting Minutes
Date: August 5, 2026

room for the full Public Works Engineering team to be located in one office, which is in the Skypark building. In addition, we’ll have a new classroom space available in the Community Center Annex for community members and groups to use through our regular reservation system.

Tomorrow, August 6, Recreation Division Manager Pfefferkorn will be hosting a public hearing to discuss a change to the hours at the Tennis and Pickleball Courts. The proposed change will close the courts every day at 8:00 PM and was recommended at the last Parks and Recreation Commission meeting. Community members who are interested in weighing in on this proposed rule change are encouraged to attend the meeting at the Senior Center at 6:00 PM on August 6.

Next Monday, August 10th, will be our next Enhanced Infrastructure Financing District Public Financing Authority Board meeting here in the Council Chamber at 5:00 PM.

The Board will hear a presentation on the Draft Infrastructure Financing Plan and consider adopting bylaws.

Next, a roadwork update: Significant progress has been made on the striping on Scotts Valley Dr and Mt Hermon, which is scheduled to be completed by August 12. In preparation for school starting tomorrow, the contractor prioritized and completed the most critical striping and pavement markings near the middle school.

Moving forward, work on Scotts Valley Drive will generally take place between 9:00 a.m. and 2:30 p.m., with some work occurring on Saturdays. Utility adjustments will continue over the next couple of weeks and will require temporary lane closures.

We ask the community to use caution while becoming familiar with the new lane configuration, drive carefully, and remain alert for bicyclists using the roadway.

Also, with the first day of school tomorrow, our Police Department will have extra staff at each of the three schools on Thursday and Friday. They are also preparing for the Cops N Rodders car show on Saturday August 15 in association with the Art, Wine, and Beer Festival.

Last, I would like to make a statement about the High School Senior Banners being taken down on July 1st to put up the City’s 60th celebration banners along the 4th of July parade route. I made the decision to switch out the banners in accordance with the City’s Streetlight Banner Policy, which was adopted by the City Council on March 15, 2023. The policy states that City event banners are given priority over requests from community groups, and it further states that “Banners may be hung for a period not to exceed 60 days.” At the time I directed staff to switch out a portion of the Senior banners for City banners, the Senior banners had already been displayed for over 70 days. This decision was not intended in any way to lessen the celebration for the High School Seniors, but rather to begin the transition to celebrate the City’s 60-year history, which was a theme of the 4th of July Parade. As I already shared in response to

City Council Meeting Minutes
Date: August 5, 2026

PUBLIC COMMENT TIME

ALTERATIONS TO CONSENT AGENDA

CONSENT AGENDA
Robert Aldana on July 6th, I apologize for any confusion or disappointment caused for those students and their families. Please share my apologies with those who are upset.

CM Timm, VM Clark, and Mayor Lind spoke about the high school senior banners.

Robert Aldana and Sherry Brownfield expressed their disappointment that some of the banners were removed to place the City's anniversary banners along the parade route, and they shared their concerns regarding the City’s decision to remove those banners.

Heidi Denger added that she hopes for this tradition to continue with clearer parameters.

Mikala Clements spoke about the business license tax, specifically that she would like it to be based on net receipts rather than gross receipts. She also expressed concern about Scotts Valley Drive project, noting that the lanes are narrow and the bike lane is wider, which she feels is dangerous; and she is concerned that the narrower center lane will not accommodate large delivery trucks. She also shared reservations about the City's communication on both of these topics.

Ron Clements raised concerns about the cars that are parked along the road near his business, Scotts Valley Market, as people may be living in those cars.

Amber Evanoff expressed concern about the communication from the City regarding the Scotts Valley Drive project (see attached letter).

VM Clark and CM Wimp attended the 60th birthday events. VM Clark attended the National Night Out, and the Stuff the Bus event at Kaiser. CM Wimp encouraged people to donate blood due to the current blood shortage. Mayor Lind attended the K&D Landscaping anniversary event, the ribbon-cutting for Earthrise Financial, and she noted that she is on the planning committee for the Art, Wine, & Beer Festival.

City Manager LaGoe announced the following clarification for Item 3, Purchase for Traffic Signal Equipment: The purpose of the video detection cameras is traffic detection and signal operation. They will replace the existing loop detector systems, provide more reliable vehicle and bicycle detection, and help improve overall traffic operations. The cameras will not record video or images and will not be remotely accessible. They will not be used for surveillance, license plate recognition, or traffic enforcement.

M/S: Timm/Wimp
To approve the Consent Agenda with the clarification noted above.

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

City Council Meeting Minutes
Date: August 5, 2026

PUBLIC HEARINGS

ALTERATIONS TO REGULAR AGENDA

REGULAR AGENDA

1. Approve City Council Special Closed Session meeting minutes of 06-17-2026 and Regular meeting minutes of 06-17-2026

2. Approve 2026 Local Agency Biennial Report

3. Approval of Purchase for Traffic Signal Equipment Procurement, Project No.

P26-003, in an amount not to exceed $221,786.60

1. Public Hearing to Confirm Report of Delinquent Wastewater Service Charges and Authorize Placement on the Santa Cruz County Secured Property Tax Roll
Administrative Services Director Hill presented this item and responded to questions from the Council.

Mayor Lind opened the public hearing at 6:54 PM. There were no comments from the public and Mayor Lind closed the public hearing at 6:56 PM.

M/S: Timm/Clark
To adopt Resolution No. 2100 confirming the report of delinquent wastewater service charges and directing the submission of the confirmed report to the Santa Cruz County Auditor-Controller for collection on the secured property tax roll.

Carried 5/0 (AYES: Lind, Clark, Jett, Timm, Wimp)
M/S: Timm/Clark
To approve the Regular Agenda with no alterations.

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

1. Consider Introduction of Ordinance Modifying Scotts Valley Municipal Code Title 2 Regarding Administration and Personnel
City Manager LaGoe introduced the City's Interns, and this item was presented by Interns Daniel Esqueda and Madeline Taylor. City Attorney Powell responded to questions from the Council and noted that the agreed upon edits will be incorporated into the ordinance which will be presented for second reading and final adoption on August 19, 2026.

City Council Meeting Minutes
Date: August 5, 2026

CLOSED SESSION SUBJECT(S)

RECONVENE TO OPEN SESSION

REPORT ON ACTION TAKEN DURING CLOSED SESSION

ADJOURNMENT
Scotts Valley residents, Danny Reber and Chris Hofmann, asked questions during public comment.

M/S: Timm/Clark
To receive for first reading Ordinance No. 204 amending Title 2 of the Scotts Valley Municipal Code by amending Chapters 2.04, 2.08, 2.12, 2.23, 2.28, 2.32,

2.40, 2.44, 2.48, 2.52, 2.56, 2.70, by repealing Chapter 2.68, Resource Management Policy, and adding Chapter 2.71 creating the position of City Engineer, with amendments to Sections 2.19.020, 2.28.090, 2.70.100 as indicated in the staff report, as well as modification to Section 2.56.010 adding reference to California Elections Code 1000, and waive the reading thereof.

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

2. Future Council Agenda Items
None.

The City Council convened to closed session at 7:28 PM to discuss the following item:

1. Conference with legal counsel regarding liability claim Legal Authority: Government Code Section 54956.95
Claimant: Brandon Polito
Staff Present: City Manager, City Attorney, Administrative Services Director The City Council reconvened to open session at 7:39 PM.

Mayor Lind announced that there was no report from the closed session meeting.

The meeting adjourned at 7:40 PM.

CONVENE TO CLOSED SESSION

City Council Meeting Minutes
Date: August 5, 2026

Approved:

Donna Lind, Mayor
Attest:__________________________
Cathie Simonovich, City Clerk

provided to residents needing to access to their homes prior to the road being fully cured.

The city did not provide a point-of-contact for project-related questions. I had to call multiple city numbers, sit on hold, and leave VMs to get general questions answered.

The city’s website stated the wrong number to reach VSS International.

Specifically, the website stated 913-373-1500, which is a non-working number. The number does not work as VSS International is in Sacramento with an area code of 916. The wrong ‘913’ number remained on the city’s website since the start of the project and was updated to the correct number on 8/4 only after I notified the city on 8/3.

Emails to [email protected] (email provided on the city’s website) do not appear to be answered.

A point-of-contact at VSS International was not provided.

The flyer and city’s website both stated the “adjustment of utilities” would take place the week of 7/27. The utilities were not adjusted that week and were, instead, adjusted the week of 8/3. The website was never updated to reflect this change. Additionally, using non-specific terms like “adjustment” didn’t provide residents with an accurate picture of the jackhammering required to adjust the utilities. Providing specifics and avoiding the use of softer-sounding terms would have been appreciated.

VSS International’s process for closing the road/signage needs improving and appears a bit casual. Road-closure signs were put up late and not clear the first night of the overnight work, causing drivers to use the closed road, which resulted in excessive yelling from the crew/excess noise that could have been avoided had there been an organized rollout to the closure.

It's impossible to obtain information about the project plan and the schedule regarding which portions of the road are to be updated and when. I attempted obtaining details from the city and VSS International to better understand which blocks of SV Drive the crew starts on/when we could anticipate the jackhammering at the intersection of SV Drive and Bean Creek Road. I did this so that I could make alternative plans to get a hotel in the area (I work from home). I was told “it depends on the traffic” which is vague and not the response I would expect from contacts overseeing such a costly project.

For reference, I previously lived in San Francisco during San Francisco’s massive 345M Van Ness improvement project, which spanned one of the busiest corridors in all of San Francisco. My point being, I’m familiar with living near a roadway project. The San Francisco project was on a significantly larger scale, yet was organized and residents were provided clear communication so that there were no surprises. I never had to contact that city and/or its contractor.

My hope is that my detailed feedback will help the city to look to ways to improve future projects and assess how the current project could have been better managed from both an internal and external standpoint. Thank you.

Best,
Amber
SV Drive resident

CONVENE TO CLOSED SESSION

CLOSED SESSION SUBJECT(S)

RECONVENE TO OPEN SESSION

REPORT ON ACTION TAKEN DURING CLOSED SESSION

ADJOURNMENT

MINUTES
Special Closed Session Meeting
of the
Scotts Valley City Council
Date: August 5, 2026
Time: 6:30 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 8-4-2026 at City Hall, Scotts Valley, CA Scotts Valley, CA 95066 SV Senior Center, SV 95066 OR 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 6:30 PM
The City Council Special Closed Session meeting was called to order at 7:41 PM.

The City Council convened to closed session at 7:42 PM to discuss the following item:

1. Public Employee Annual Performance Evaluation
Legal Authority: Government Code Section 54957(b)(1)
Position: City Manager
Staff Present: City Manager, City Attorney
The City Council reconvened to open session at 9:12 PM.

Mayor Lind announced that there was no report from the closed session meeting.

The meeting adjourned at 9:12 PM.

City Council Meeting Minutes Page 2
Date: August 5, 2026
Approved:

Donna Lind, Mayor
Attest:

Cathie Simonovich, City Clerk

AGENDA ITEM 2.

DATE: 8/19/2026
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 8/19/2026
TO: Honorable Mayor and City Council
FROM: Daniel Esqueda and Madeline Taylor, Interns
APPROVED: Mali LaGoe, City Manager
SUBJECT: Second reading and adoption of Ordinance No. 204 Modifying Scotts Valley Municipal Code Title 2 Regarding Administration and Personnel

SUMMARY OF ISSUE
The City periodically reviews the Scotts Valley Municipal Code to ensure its provisions remain accurate, enforceable, consistent with current law, and reflective of City operations and best practices. While the Municipal Code has been amended over time, portions of the Code contain outdated language, requirements that no longer align with state or federal law, or provisions that do not reflect current City practices.

The proposed amendments to Title 2 – Administration and Personnel update and clarify provisions governing City administration, City Council procedures, City offices and commissions, emergency preparedness, elections, purchasing, and other administrative functions. The revisions are intended to modernize the Code, eliminate obsolete or conflicting provisions, improve consistency, and ensure compliance with applicable state and federal requirements.

At its August 5, 2026, meeting, the City Council introduced Ordinance No. 204 and provided feedback on several provisions. Staff incorporated revisions responsive to Council’s feedback, as described below. The ordinance is now returning to the City Council for adoption.

Title Two – Administration and Personnel:

Title 2 contains provisions governing City Council functions, City offices and commissions, and other aspects of general City administration. The proposed amendments include the following:

1. Minor Language Updates Throughout: Updates gender-neutral terminology, replaces references to “City Administrator” with “City Manager,” and makes capitalization and other non-substantive language corrections.

2. Chapter 2.04 – City Manager: Removes the City Manager residency requirement to conform with state law and clarifies the City Manager’s administrative and financial authority relating to fees, charges, and penalties owed to the City.

3. Chapter 2.08 – Director of Finance: Clarifies and expands the duties of the Director of Finance and delegates appointment authority to the City Manager.

4. Chapter 2.12 – Health Officer: Clarifies the distinction between the City Health Officer and County Health Officer, designates the City Manager as the City Health Officer, and identifies the duties of the position.

5. Chapter 2.23 – Election of City Council Members: Removes historical findings relating to the election and appointment of the City’s first Councilmembers and updates provisions concerning when Councilmembers assume office to better align with state law.

6. Chapter 2.28 – Council Procedures: Updates references to City commissions, replaces “Mayor Pro Tempore” with “Vice Mayor,” removes outdated provisions regarding the order of business, revises public comment provisions to address First Amendment considerations, removes the Council contempt provision, and corrects requirements relating to publication of Council agendas.

7. Chapter 2.32 – Bonds for City Clerk and Treasurer: Updates bonding requirements applicable to certain City employees.

8. Chapter 2.40 – Property Left in the Police Department: Revises the chapter to better reflect Police Department procedures for unclaimed property, including storage, rights of finders, and disposition of property that is not reclaimed.

9. Chapter 2.44 – Public Employees’ Retirement System: Updates the Code to more accurately reflect CalPERS coverage.

10. Chapter 2.48 – Emergency Preparedness: Renames the chapter from “Civil Defense and Disaster” to “Emergency Preparedness,” eliminates the Disaster Council, and modernizes the chapter to address the City’s current emergency preparedness structure and practices.

11. Chapter 2.52 – Use of Criminal History: Revises the chapter for consistency with the California Fair Chance Act and Penal Code Section 11105, including provisions addressing persons subject to background investigations, investigation procedures, consideration of criminal history, and confidentiality requirements.

12. Chapter 2.56 – Elections: Clarifies that City municipal elections may occur on election dates authorized by the California Elections Code.

13. Chapter 2.68 – Resource Management Policy: Repeals the chapter requiring an annual resource availability report because the relevant information is addressed through other City planning documents, including the General Plan.

14. Chapter 2.70 – Purchasing: Clarifies procurement and contracting authority and streamlines the Municipal Code by moving certain procedural requirements into an administrative procurement policy, allowing greater flexibility while maintaining appropriate financial controls and compliance requirements.

15. Chapter 2.71 – City Engineer: Establishes the position of City Engineer and provides for appointment by the City Manager.

Based on feedback provided by the City Council during its August 5 consideration of Ordinance No. 204, staff incorporated the following revisions into the ordinance presented for adoption:

1. Section 2.19.020 – Members: Revised the section to reference Section 2.21.030, Residency Requirements, to provide consistency among residency requirements applicable to City commissions.

2. Section 2.28.090 – Voting: Added the phrase “or when required by law” to clarify that roll call votes are required for meetings conducted by teleconference and in other circumstances where roll call voting is required by applicable law.

3. Sections 2.56.010 – Holding of General Municipal Elections and 2.56.030 – City Clerk Requirements: Revised references to specify the California Elections Code.

These revisions reflect the City Council’s feedback from the August 5, 2026, City Council meeting and have been incorporated into Ordinance No. 204 presented for adoption.

FISCAL IMPACT
There is no fiscal impact associated with the adoption of the proposed ordinance.

STAFF RECOMMENDATION
Staff recommends that the City Council adopt Ordinance No. 204, Amending Title 2, Chapters

2.04, 2.08, 2.12, 2.14, 2.16, 2.18, 2.19, 2.20, 2.21, 2.23, 2.28, 2.32, 2.40, 2.44, 2.48, 2.52,

2.56, 2.70, repealing Chapter 2.68 and adding Chapter 2.71, establishing the position of City Engineer.

TABLE OF CONTENTS

1. Ordinance No 204 Modifying SV Municipal Code Title 2 8-19-2026

ORDINANCE NO. 204

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY AMENDING TITLE 2 OF THE SCOTTS VALLEY MUNICIPAL CODE BY AMENDING CHAPTERS 2.04, 2.08, 2.12, 2.23, 2.28, 2.32, 2.40, 2.44, 2.48, 2.52, 2.56, 2.70, BY REPEALING CHAPTER 2.68, RESOURCE MANAGEMENT POLICY AND ADDING CHAPTER 2.71 CREATING THE POSITION OF CITY ENGINEER
WHEREAS, it is important that the Municipal Code is reviewed periodically to ensure it remains accurate, enforceable, and consistent with current legal requirements; and WHEREAS, while there have been updates to Scotts Valley’s Municipal Code over time, many sections still reflect the original ordinances dating back to the City’s incorporation; and
WHEREAS, new federal and state laws are regularly passed that require modifications to existing municipal code provisions; and
WHEREAS, modifications are also necessary to ensure that the City is following the best practices in a variety of areas; and
WHEREAS, City staff researched best practices for administrative operations to revise sections of Title 2, Administration and Personnel; and
WHEREAS, the City Council desires to make various modifications to Title 2 of the Scotts Valley Municipal Code.

NOW, THEREFORE, The City Council of the City of Scotts Valley does hereby ordain as follows:

Section 1. The Table of Contents of Title 2, Administration and Personnel, of the Scotts Valley Municipal Code is hereby amended by removing Chapter 2.68, Resource Management Policy, and by adding 2.71, City Engineer, to read as follows:
“Title Two – Administration and Personnel:

2.04 - City Manager

2.08 - Director of Finance

2.12 - Health Officer

2.14 - Code Enforcement Officer

2.16 - City Planning Commission

2.18 - Redevelopment Commission

2.19 - Arts Commission

2.20 - Paks and Recreation Commission

2.21 - Commissions, Committees, and Boards

2.23 - Election of City Council Members

2.24 - Council Meetings and Salary

2.28 - Council Procedures

2.32 - Bonds for City Clerk and Treasurer

2.36 - Training of Law Enforcement Officers

2.40 - Unclaimed Property in the Police Department

2.42 - Electronic Signatures

2.44 - Public Employees’ Retirement System

2.48 - Emergency Preparedness

2.52 - Use of Criminal History Information

2.56 - Elections

2.60 - Scotts Valley Campaign Reform Act

2.64 - Prohibition of Gifts

2.68 - Reserved

2.70 - Purchasing

2.71 - City Engineer”
Section 2. The Table of Contents of Chapter 2.04, City Manager, of Title 2of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.04 - City Manager

2.04.010 - Office of City Manager Created

2.04.020 - Reserved

2.04.030 - Council Member eligibility.

2.04.040 - Bond

2.04.050 - Acting City Manager

2.04.060 - Compensation

2.04.070 - Powers and Duties

2.04.071 - Authorization to City Manager to Execute Certain Agreements and grant documents without prior Council approval

2.04.080 - Law enforcement

2.040.090 - Authority over employees

2.04.100 - Power of appointment and removal

2.04.110 - Administrative reorganization of officers

2.04.120 - Ordinances

2.04.130 - Attendance at Council meetings

2.04.140 - Financial reports

2.04.150 - Budget

2.04.160 - Purchasing agent

2.04.170 - Investigations and complaints

2.04.180 - Public buildings

2.04.190 - Hours of employment

2.04.200 - Additional duties

2.04.210 - Internal relations with Council

2.04.220 - Departmental cooperation

2.04.230 - Attendance at commission meetings

2.04.240 - Removal from office

2.04.250 - Limitation on removal

2.04.260 - Severance pay

2.04.270 - Employment agreement

2.04.280 - Office of City Clerk created

2.04.290 - Duties and authority of office

2.04.300 - Qualification and compensation of office

2.04.310 - Administrative Authority of City Manager

2.04.320 - Compromise of Disputed Charges”
Section 3. Section 2.04.010, Office of City Manager Created, of Chapter 2.04, City Manager, of Title 2, Administration and Personnel, of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.04.010 - Office of the City Manager created.

The office of the City Manager of the City of Scotts Valley is hereby created and established pursuant to California Government Code Section 34851(a). The City Manager shall be appointed by the City Council and their selection shall be made wholly on the basis of their administrative and executive ability and qualification. Subject to Section 2.04.240 hereof, they shall hold office for and during the pleasure of the City Council. All references to City Administrator in all City ordinances or resolutions shall hereafter be deemed to mean City Manager.”
Section 4. Section 2.04.060, Compensation, of Chapter 2.04 of Title 2 the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.04.060 - Compensation.

A. The City Manager shall receive such compensation and expense allowances as the City Council from time to time determines, and said compensation and expenses shall be a proper charge against funds of the City as the City Council designates.

B. In addition, the City Manager shall be paid for or reimbursed for all actual and necessary expenses incurred by them in the performance of their official duties, including those incurred when traveling on business pertaining to the City; reimbursement shall only be made, however, when an itemized claim, setting forth the sums expended for such business for which reimbursement is requested, has been presented to and approved by the City Council” Section 5. Section 2.04.070, Powers and Duties, of Chapter 2.04 of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.04.070 - Powers and duties.

A. The City Manager shall be the administrative head of the government of the City under the direction and control of the City Council. They shall be responsible for the efficient administration of all the affairs of the City which are under their control.

B. The City Manager or their designee shall serve as the Personnel Officer and is granted the authority to administer personnel policies, implement and enforce

approved Memorandum of Understandings, Personnel Rules and Regulations, and other employee-related administrative functions.”
Section 6. Section 2.04.090, Authority of Employees, of Chapter 2.04 of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.04.090 - Authority over employees.

It shall be the duty of the City Manager and they shall have the authority to control, order, and give direction to all department heads and to all subordinate employees of the City under their jurisdiction through the department heads. The City Manager shall periodically evaluate all department heads and employees under their direct supervision.”
Section 7. Section 2.04.110, Administrative Reorganization of Officers, of Chapter 2.04 of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.04.110 - Administrative reorganization of officers.

It shall be the duty and responsibility of the City Manager to conduct studies and effect such administrative reorganization of offices, positions or units under their direction as may be indicated in the interest if efficient, effective and economical conduct of the City’s business.”
Section 8. Section 2.04.120, Ordinances, of Chapter 2.04 of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.04.120 - Ordinances.

It shall be the duty of the City Manager to recommend to the City Council for adoption such measures and ordinances as they deem necessary.”
Section 9. Section 2.04.160, Purchasing Agent, of Chapter 2.04 of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.04.160 - Purchasing agent.

It shall be the duty of the City Manager to purchase or oversee the purchasing of all supplies for all the departments or divisions of the City. No expenditures shall be submitted or recommended to the City Council except on report and approval of the City Manager.”
Section 10. Section 2.04.180, Public Buildings, of Chapter 2.04 of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.04.180 Public buildings.

It shall be the duty of the City Manager to exercise general supervision over all public buildings, public parks and all other public property which are under the control and jurisdiction of the City Council.”
Section 11. Section 2.04.190, Hours of Employment, of Chapter 2.04 of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.04.190 - Hours of employment.

It shall be the duty of the City Manager to devote their entire work time to the duties of their office and in furthering the interests of the City.” Section 12. Section 2.04.200, Additional Duties, of Chapter 2.04 of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.04.200 - Additional duties.

It shall be the duty of the City Manager to perform such other duties and exercise such other powers as may be delegated to them from time to time by ordinance or resolution or other official action of the City Council.”
Section 13. Section 2.04.210, Internal Relations with Council, of Chapter 2.04 of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.04.210 - Internal relations with Council.

The City Council and its members shall deal with the administrative services of the City through the City Manager, except for the purpose of inquiry, and neither the City Council nor any member thereof shall give orders to any subordinates of the City Manager. The City Manager shall take their orders and instructions from a majority of the City Council only when sitting in a duly convened meeting of the City Council and no individual Council Member shall give any orders or instructions to the City Manager.” Section 14. Section 2.04.230, Attendance at Commission Meetings, of Chapter 2.04 of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.04.230 - Attendance at commission meetings.

The City Manager may attend any and all meetings of the planning commission, parks and recreation commission, and any other commissions, boards or committees created by the City Council, upon their own volition or upon direction of the City Council. At such meetings which the City Manager attends, they shall be heard by such commissions, boards or committees as to all matters upon which they wish to address the members thereof, and they shall inform said members as to the status of any matter being considered by the City Council, and they shall cooperate to the fullest extent with the members of all commissions, boards or committees appointed by the City Council.”

Section 15. Section 2.04.240, Removal from Office, of Chapter 2.04 of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.04.240 - Removal from office.

The removal of the City Manager shall be effected only by the affirmative vote of at least three members of the Council convened in a regular or special Council meeting.” Section 16. Section 2.04.250, Limitation on Removal, of Chapter 2.04 of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.04.250 - Limitation on removal.

Notwithstanding the provisions of Section 2.04.240, the City Manager shall not be removed from office, other than for misconduct in office, during or within a period of ninety days after any general municipal held election held in the City at which election a member of the City Council is elected or after a member of the City Council is appointed in lieu of election. The purpose of this provision is to allow any newly elected member of the City Council or a reorganized City Council to observe the actions and ability of the City Manager in the performance of the powers and duties of their office. After the expiration of said ninety-day period aforementioned, the provisions of Section 2.04.240 shall apply and be effective.”
Section 17. Section 2.04.310, Administrative Authority, of Chapter 2.04 of Title 2 of the Scotts Valley Municipal Code is hereby added to read as follows:
“2.04.310 - Administrative authority.

The City Manager shall have the authority to implement City programs, fees, charges, and regulations, and may make administrative determinations necessary to carry out the provisions of this Code and City policies.”
Section 18. Section 2.04.320, Powers and Duties, of Chapter 2.04 of Title 2 of the Scotts Valley Municipal Code is hereby added to read as follows:
“2.04.320 - Compromise of disputed charges.

The City Manager may waive, reduce, compromise, or settle disputed fees, penalties, charges, and claims owing to or against the City when the City Manager determines that such action is in the best interests of the City and the amount involved does not exceed $10,000 in consultation with the City Attorney.”
Section 19. Chapter 2.08, The Director of Finance of Title 2 of the Scotts Valley Municipal Code, is hereby amended to read as follows:
“Chapter 2.08 Director of Finance and City Treasurer

2.08.010 - Established

2.08.020 - Powers and duties

2.08.010 - Established.

There are hereby established functions of Director of Finance and City Treasurer for the City. The City Manager may assign such functions to one or more City officers or employees as authorized by City policy, resolution, or administrative direction.

2.08.020 - Powers and duties.

The Director of Finance and/or City Treasurer, as designated by the City Manager or City Council, shall:

A. Administer the financial affairs of the City;
B. Maintain oversight of the accounting system and financial records of the City; C. Prepare, coordinate, and submit financial statements, treasury reports, budget reports, and other fiscal reports as required by law or City policy; D. Administer or oversee payroll, accounts payable, accounts receivable, treasury, debt administration, cash management, investment activities, and related financial functions of the City, including the coordination and oversight of professional advisors, consultants, trustees, fiscal agents, and other service providers retained by the City;
E. Ensure compliance with applicable federal, state, and local laws, regulations, accounting standards, and financial reporting requirements; F. Coordinate independent audits and implementation of internal financial controls; G. Process and oversee authorized City expenditures, disbursements, warrants, and electronic payments;
H. Supervise finance department personnel and delegate duties as appropriate to authorized staff;
I. Perform such other duties as assigned by the City Manager or as directed by the City Council.”
Section 20. Chapter 2.12, Health Officer, of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.12 - Health Officer

2.12.010 - City Health Officer

2.12.020 - County Health Officer

2.12.030 - Duties

2.12.010 - City Health Officer.

The City Manager or their designee shall serve as the City Health Officer, carrying out all duties and responsibilities assigned to that position in this code.

2.12.020 County Health Officer.
“County Health Officer” shall refer to any representative acting on behalf of a Santa Cruz County department, agency, or special district in fulfilling duties related to health or safety concerns.

2.12.030 Duties.

In fulfilling their duties to enforce this code, the City Health Officer, or their designee has the authority to:

A. Make arrests of a person without a warrant whenever they have reasonable cause to believe that person has committed a misdemeanor in their presence which is a violation of any ordinance, stature, or law, the enforcement of which is under the administration of the City Health Officer, pursuant to California Penal Code Section 836.5. Upon making such an arrest, the City Health Officer, or their designee, shall release the person arrested pursuant to Penal Code Section 853.6, the provisions of which are hereby adopted by reference as part of this chapter.

B. Issue fines, fees, and abatement orders regardless of which authorized entity conducts the investigation or declares a public health nuisance.” Section 21. Section 2.14.010, Created, of Chapter 2.14 of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.14.010 - Created.

There is created within the City the position of Code Enforcement Officer. The City Manager shall designate and appoint an appropriate employee of the City as the Code Enforcement Officer.”
Section 22. Section 2.14.030, Powers and Duties, of Chapter 2.14 of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.14.020 - Powers and Duties.

The Code Enforcement Officer is authorized, and it shall be their duty, to enforce the provisions of all ordinances, resolutions, rules and regulations of the City. For purposes of this section, the Code Enforcement Officer is authorized to arrest persons for violations of the provisions of any such ordinances or resolutions, to the extent permissible by law, all pursuant to, in accordance with, and subject to the applicable

provisions of the California Penal Code, including, without limitation, the provisions of Sections 19 and 836.5, as well as the applicable provisions of any other state law, all as the same may presently exist or hereafter be amended from time to time.” Section 23. Section 2.16.30 Dismissal of Member, of Chapter 2.16 of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.16.030 - Dismissal of member.

Any member of the City Planning commission who misses two consecutive Planning Commission meetings without prior approval of the secretary or chairperson of the Planning Commission may be removed by Council as a member of said Planning Commission, and if so removed, a successor shall be appointed in accord with this chapter.”
Section 24. Section 2.18.030, Executive Director, of Chapter 2.18 of Title 2 of the Scotts Valley Municipal Code shall hereby be amended to read as follows:
“2.18.030 - Executive Director.

The City Council hereby appoints the City Manager to serve as executive director of the Redevelopment Agency.”
Section 25. Section 2.19.020 - Members, of Chapter 2.19 of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.19.020 - Members.

The Arts Commission shall be comprised of five members to be appointed by the City Council as provided in Section 2.21.010 of this title. All members of the Commission shall be subject to the limitations set out in Section 2.21.030 of this title. Members shall serve at the pleasure of the City Council and any member may be removed by the City Council at their sole discretion at any time.

The chairperson and vice-chairperson of the Commission shall be appointed annually by the Commission from amongst its voting members.”
Section 26. Section 2.20.020, Members, of Chapter 2.20 of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.20.020 - Members.

A. The Parks and Recreation Commission shall be comprised of five members to be appointed by the City Council as provided in Section 2.21.010 of this title.

Members shall serve at the pleasure of the City Council and any member may be removed by the City Council at any time.

B. In addition, the President of the Board of Trustees of the Scotts Valley Union School District may appoint one member of said Board of Trustees as an ex officio non-voting member of the Commission.

C. All members of the Parks and Recreation commission shall be subject to the limitations set out in Section 2.21.030 of this title.

D. A chairperson and vice-chairperson shall be appointed annually by the Commission from among its members entitled to vote.”
Section 27. Section 2.20.030, Duties, of Chapter 2.20 of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.20.030 - Duties.

The Commission shall perform the following specific duties:

A. Advise the City Council regarding policies for the acquisition, development, maintenance, and improvement of park facilities and make recommendations as appropriate
B. Recommend to the City Council, fee schedules, policies, rules and regulations for park sites and other recreation facilities
C. Recommend to the City Council a recreation and park program for the inhabitants of the City which emphasizes general education and recreational objective for children and adults of the City; promotes and stimulates public interest in parks and recreation programs; and which encourages to the fullest extent possible, the cooperation of the local school authorities and other public and/or private agencies or interests
D. Advise the City Council regarding the recreation division and parks division budgets and make recommendations as appropriate
E. Perform other duties relating to recreation and park matters as may be dictated from time to time by the City Council.”
Section 28. Section 2.21.030, Residency Requirements, of Chapter 2.21 of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.21.030 - Residency Requirements.

A. Except as expressly stated below, no person may be appointed to any commission, committee or board of the City unless that person unless that person resides within the adopted planning area of the City. If, after being appointed, a member of a commission, committee or board moves outside the adopted planning area of the City, that person’s seat shall automatically be deemed vacant.

B. No person may be appointed to the Planning Commission of the City unless that person resides within the City limits. If, after being appointed, a member of the

Planning Commission moves outside the City limits, that person’s seat shall automatically be deemed vacant.

C. Except as provided below, no person may be appointed to, nor maintain membership on, the design review board of the City unless that person resides within the City limits.
a. If any person already serving on the board moves out of the City, but into the City’s planning area, that person may continue to serve so long as they remain in the planning area; and
b. Council may appoint individuals residing in the City’s planning area if the individual is professionally employed in a field closely related to design review activities.”
Section 29. The Table of Contents of Chapter 2.23, the Election of City Council Members of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“Chapter 2.23 Election of City Council Members

2.23.010 - Purposes

2.23.020 - Reserved

2.23.040 - Severability

2.23.050 - Date of Assuming Office”
Section 30. Section 2.23.020, Findings, of Chapter 2.23 of Title 2 of the Scotts Valley Municipal Code is hereby repealed.

Section 31. Section 2.23.050 - Date of Assuming Office, of Chapter 2.23 of Title 2 of the Scotts Valley Municipal Code, is hereby amended to read as follows:
“2.23.050 - Date of Assuming Office.

Candidates for City Council elected at the general City Council election shall assume office and be seated at the first regular meeting in January of the next calendar year.

Council Members appointed to fill vacancies will be sworn in upon the availability of the City Clerk but no later than the second City council meeting after the appointment of such Council Member. Council Members that are elected to fill vacancies in special elections will be sworn in at the first regular meeting following confirmation of election results.”
Section 32. Chapter 2.28, Council Procedures, of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:

“Chapter 2.28 Council Procedures:

2.28.010 - Council name and applicability.

2.28.020 - Meeting defined

2.28.030 - Actions not to be invalidated

2.28.040 - Agenda

2.28.050 - Reserved

2.28.060 - Roll Call

2.28.070 - Quorum.

2.28.080 - Reading of minutes.

2.28.090 - Voting.

2.28.100 - Mayor as presiding officer.

2.28.110 - Powers and duties of presiding officer

2.28.110 - Additional powers

2.28.130 - Preparation of ordinances

2.28.140 - Prior review by administrative staff.

2.28.150 - Introduction for passage or approval.

2.28.160 - Presiding Officer may debate.

2.28.170 - Getting the floor.

2.28.180 - Interruptions.

2.28.190 - Privilege of closing debate.

2.28.200 - Motion to reconsider.

2.28.210 - Remarks of Council Member–Synopsis of debate.

2.28.220 - Rules of order.

2.28.230 - Failure to observe rules of order on debate.

2.28.240 - Addressing the Council.

2.28.250 - Manner of addressing Council.

2.28.260 - Particular rules.

2.28.270 - Public hearings general rules.

2.28.275 - Public hearings—Commencement time.

2.28.280 - Hearings on appeal from planning commission.

2.28.290 - Decorum and enforcement.

2.28.300 - By other persons.

2.28.310 - Reserved.

2.28.320 - Enforcement of decorum.

2.28.330 - Adjournment.

2.28.010 - Council name and applicability.

This ordinance shall be known as the “council procedure ordinance” of the City. It shall apply to all regular and special meetings of the City Council, and in addition, Sections

2.28.240 through 2.28.275 shall apply to all meetings of and public hearings before a Scotts Valley City Commission. Reference to “presiding officer”, “Council”, “Council Members”, and “City Clerk” in Sections 2.28.240 through 2.28.275 shall respectively mean, chairperson, the respective City Commission, Commissioner and Secretary of the respective city Commission when applied to City Commission meetings.

2.28.020 - Meeting defined.

The term “meeting” means the congregation of a majority of the members of the Council or City Commission at the same time and location, including teleconference in accordance with the requirements of Government code Section 54953, to hear, discuss, deliberate, or take action on any item that is within the subject matter jurisdiction of the City Council or City Commission.

Unless otherwise authorized by law to be held in private, all such meetings shall be open to the public.

A majority of the members of City Council or City Commission shall not, outside a meeting authorized by this chapter, use a series of communications of any kind, directly or through intermediaries, to discuss, deliberate, or take action on any item of business that is within the subject matter jurisdiction of the legislative body unless otherwise authorized under Government Code Section 54952.2.

No other gathering of the person who constitute the City Council or City Commission, or any portion thereof, shall be considered a meeting. Any action or decision required by law to be taken or made at a meeting shall be invalid and of no force and effect if the same is not taken or made at a meeting as herein defined.

The foregoing shall not prevent less than a quorum, otherwise gathered at the time and place of a duly noticed meeting, from adjourning from time to time in accordance with law until a quorum is present.

If at any time the legislature of the State or the final decision of an appellate court of said state should define a meeting of a City Council or a City Commission other than as above set forth, such legislative or final judicial definition shall thereafter supersede the definition hereinabove set forth.

2.28.040 - Agenda.

All reports, communications, ordinances, resolutions, contract documents, or other matters to be submitted to the Council at their regular meeting shall be delivered to the City Clerk not later than 5:00 pm on the preceding Wednesday. The City Clerk shall prepare an agenda of all such matters according to the order of business and shall furnish each member of the Council, the City Manager, the City Attorney and each department head with a copy of the same prior to the Council meeting. Such copy may be provided electronically. Except as otherwise provided in this chapter, no matter not included on the agenda may be presented to the Council without first obtaining the unanimous consent of all Council Members present at the meeting and making the findings required by law.

2.28.050 - Reserved.

2.28.060 - Roll call.

Before proceeding with the business of the Council, the City Clerk or their deputy shall call the roll of the members, and the names of those present either physically or virtually shall be entered in the minutes.

2.28.070 - Quorum.

A majority of members elected to the Council shall constitute a quorum at any regular or special meeting of the Council. The presence or absence of a quorum shall be determined by the presiding officer.

2.28.080 - Reading of minutes.

Unless a reading of the minutes of the Council meeting is requested in open meeting by a member of the Council, such minutes may be approved without reading if the Clerk has previously furnished each member with a copy thereof. Notwithstanding the above, reading of the minutes may always be waived by a duly carried motion to waive the reading thereof.

2.28.090 - Voting.

A vote by roll call shall not be required unless a Council Member specifically requests a roll call after a motion is made and before the presiding officer calls for the vote or when required by law. Unless a member of the Council audibly states they are not voting, their silence shall be, and shall be recorded as, an affirmative vote.

2.28.100 - Mayor as the presiding officer.

The presiding officer of the Council shall be the Mayor, or in their absence, the Vice Mayor. They shall take the chair precisely at the hour appointed for the meeting, and shall immediately call the Council to order. In the absence of the Mayor or Vice Mayor, the City Clerk shall call the Council to order, whereupon a temporary presiding officer shall be elected by the members of the Council present. Upon the arrival of the Mayor or Vice Mayor, the temporary presiding officer shall immediately relinquish the chair upon the conclusion of the particular business immediately before the Council at that time. Wherever in this chapter the term Mayor is used, it shall apply equally to the presiding officer as defined in this section.

2.28.110 - Powers and duties of presiding officer.

The presiding officer shall have a vote, but no veto power, and may move, second and debate from the chair. They shall preserve strict order and decorum at all regular and special meetings of the Council. They shall state, or call upon the Clerk to state, every question before the Council on all subjects. They shall decide all questions of order, subject however to an appeal to the Council or any Council Member, in which event a majority vote of the Council shall govern and conclusively determine such question of order. They shall have and exercise such other powers and duties as are contained elsewhere in this chapter, and as are authorized by law.

2.28.120 - Additional powers.

The presiding officer shall have power and authority in their discretion and without a vote of the Council, to:

A. Refer any matter, whether or not on the agenda, to a committee for a study and report. Such power may not be exercised while a motion is on the floor covering such matter, until the motion is disposed of. Once a matter has been referred to committee and a report rendered thereon, it may not thereafter be referred to committee a second time under this power but only by Council action; B. Set time limits on Council discussion on any matter; C. Set time limits on any communications from members of the public to the Council;
D. Declare the opening and closing of public hearings;

E. Rule any motion on a subject not on the agenda as being out of order, in which case the motion shall thereafter be void and the Clerk shall set the subject matter thereof down on the agenda of the next regular or special Council meeting; F. Table any motion on any matter until the next regular or special meeting, whenever the City Attorney advises that there is a serious question as to the validity or constitutionality of the particular proposed course of action which is the subject matter of said motion;
G. Require any witness testifying to facts at any public hearing to be sworn before proceeding further with any such testimony.

2.28.130 - Preparation of ordinances.

All ordinances shall be prepared by or under the direction of the City Attorney. No ordinance shall be prepared for presentation to the Council unless ordered by a majority vote of the Council, or requested by the Mayor or City Manager, or prepared by the City Attorney on their own initiative.

2.28.140 - Prior review by administrative staff.

Before presentation to the Council, all ordinances, written resolutions and contract documents shall have been approved as to form by the City Attorney or their own initiative.

2.28.150 - Introduction for passage or approval.

A. Ordinances, resolutions and other matters or subjects requiring action by the Council must be introduced and sponsored by a member of the Council, except that the Mayor, City Manager or City Attorney may present the same and any Council Member may assume the sponsorship thereof by moving that such ordinance resolution or matter or subject to be adopted; otherwise they shall not be considered.

B. Any ordinance may be introduced by the reading of the title only. All ordinances shall be read in full at least once prior to final passage and adoption, unless the reading thereof is dispensed with by the unanimous vote of the Council present at a regular meeting. Notwithstanding the above, all emergency ordinances shall be read in full prior to passage and adoption.

C. Resolutions may be presented in written or oral form. Where written, the resolution need only be read by title and number prior to action thereon, and only the motion adopting it need appear in the minutes. Where oral, the same shall be stated in full by the moving party, and if adopted, shall either:

1. Be transcribed in full in the minutes; or

2. Thereafter be reduced to written form separate from the minutes, executed by the presiding officer and attested by the City Clerk.

The presiding officer shall direct which final form a verbally presented resolution shall take.

2.28.160 - Presiding officer may debate.

The Mayor or such other member of the Council as may be acting as presiding officer may move, second and debate from the chair, subject only to such limitations of debate as are set by these rules imposed upon all members. They shall not be deprived of any of the rights and privileges of a Council Member by reason of their being Mayor acting as presiding officer.

2.28.170 - Getting the floor.

Every Council Member desiring to speak shall address the chair, and upon recognition by the presiding officer, shall confine themself to the question under debate, avoiding all personalities and indecorous language.

2.28.180 - Interruptions.

A member, once recognized, shall not be interrupted when speaking unless it be to call them to order, or as herein otherwise provided. If a member, while speaking, be called to order, they shall cease speaking until the question of order be determined, and, if in order, they shall be permitted to proceed.

2.28.190 - Privilege of closing debate.

The Council Member moving the adoption of an ordinance or resolution, or Council action, shall have the privilege of closing the debate.

2.28.200 - Motion to reconsider.

A motion to reconsider any action taken by the Council may be made only on the day such action was taken. It may be made either immediately during the same session, or at a recessed or adjourned session thereof. Such motion must be made by one of the prevailing side, and may be made at any time and shall have precedence over all other motions and shall be debatable. Nothing herein shall be construed to prevent any member of the Council from making or remaking the same or any other motion at a subsequent meeting of the Council.

2.28.210 - Remarks of Council Member—Synopsis of debate.

A Council Member may request, through the presiding officer, the privilege of having an abstract of their statement on any subject under consideration by the Council entered in the minutes.

If the Council consents thereto, such statement shall be entered in the minutes. The Clerk may be directed by the presiding officer, with consent of the Council, to enter in the minutes a synopsis of the discussion on any question coming regularly before the Council.

2.28.220 - Rules of order.

Except as otherwise provided in this chapter, proceedings of the Council shall be governed under "Roberts' Rules of Order" on all matters pertaining to parliamentary law.

2.28.230 - Failure to observe rules of order on debate.

No action of the Council shall be invalidated nor the legality thereof affected by the failure or omission to observe or follow the within rules of debate or "Roberts' Rules of Order".

2.28.240 - Addressing the Council.

General. Any person desiring to address the Council shall first secure the permission of the presiding officer so to dol provided, however, that under the following headings of business, unless the presiding officer rules otherwise, any interested person or member of the public shall have the right to address the Council upon obtaining recognition by the presiding officer:

A. Written communications. Interested parties or their authorized representatives may address the Council by written communication. If copies of said communications are furnished to each Council Member present, such written communications need not be read aloud at the meeting unless so ordered by a majority vote of the Council.

B. Oral communications. Members of the public or their authorized legal representative may address the Council by oral communications on any matter concerning the City’s business, or any matter over which the Council has control; provided, however, that preference shall be given to those persons who may have notified the City Clerk in advance of their desire to speak C. Public hearings. Interested persons, members of the public or their authorized representatives may address the Council by reading a protest, petition, or communication relating to matters the subject of public hearing under this category, and the order of presentation and the time thereof shall be under the direction and control of the presiding officer.

2.28.250 - Manner of addressing Council.

Each person addressing the Council shall stand and give their name and address in an audible tone of voice for the record, and shall speak into the microphone provided at all times that the electronic public address system is in operation. All remarks shall be addressed to the Council as a body and not to any member thereof. No person, other than the Council and person having the floor, shall be permitted to enter into any discussion, either directly or through a member of the Council, without the permission of the presiding officer. No person shall address sor question a Council Member, the City Attorney, the Director of Public Works, the City Manager or other official at the Council table without the prior consent of the presiding officer.

2.28.260 - Particular rules.

A. Written communications on a particular matter for Council discussion shall be read by the Council at the time of such discussion rather than under the agenda item of “written communications”
B. Written communications from the administrative staff shall not be read aloud unless requested by the writer or any Council Member.

C. Anonymous communications shall not be read.

D. The presiding officer shall not permit any communication, written or oral, to be made or read where it does not bear directly on an agenda item then under discussion E. After a motion is made by a Council Member, no person shall address the Council without first securing the permission of the Council to do so.

2.28.270 - Public hearings–General rules.

The following general rules shall be applicable to all public hearings by the Council (except hearings on appeal which are not de novo hearings), and to all public hearings by Scotts Valley City Commissions until such time as separate rules are adopted by ordinance for any City Commission public hearings:

A. No written communication received by the Council or City Commission after the close of a public hearing shall be read or considered in determining the issue in question; unless prior to the close of such hearing, the presiding officer has specifically directed that such written communication be received.

B. Referral to committee for report.

1. Subject to the limitations hereafter set forth, the presiding officer may, and on hearings de novo on appeal to the Council on zoning variances, adjustments and use permits the presiding officer shall, prior to close of the hearing, refer the

matter to a committee for report and recommendation. The hearing shall be continued to such date as the report is ordered filed, and at that future time the continued hearing shall be restricted solely to the point raised in the committee report, and thereafter shall be closed

2. No matter the subject of a public hearing shall be referred to committee nor a report therefrom considered by the Council or City Commission after a public hearing is closed, unless the same is reopened on rendition of the report for the limited purpose, however, of discussing the report.

3. Any matter referred to committee for report may be acted on without such report if the same is not rendered at the time required.

C. Whenever in the approval of a tentative subdivision map or building site, the granting of a zoning variance or adjustment, or any use or other planning permits, conditions are imposed or to be imposed, a reasonable opportunity shall be provided the applicant to discuss such proposed conditions and the effect thereof prior to the imposition of the same.
“Reasonable opportunity” for the purposes of this section shall mean as follows:

1. Where the matter is referred to committee prior to action thereon, the committee shall discuss any proposed conditions with a representative of applicant prior to rendition of the report. A copy of such report shall be filed with the City Clerk, or secretary of the City Commission at least three days prior to the date of the continued hearing; or

2. Where the public hearing is closed and action taken directly thereon by the Council or City Commission without committee report, after amotion to approve with conditions and before a second to said motion, a single representative of applicant may address the Council and briefly discuss the proposed conditions; or

3. Such other reasonable method in lieu thereof as may be ordered by the presiding officer

2.28.275 - Public hearings—Commencement time.

A. All public hearings before the City Council shall commence at 6:00 pm on the meeting date in question or as soon thereafter as the course of business permits, regardless of position on the agenda
B. Notwithstanding the provisions of subsection A. of this section, the presiding officer with the consent of the majority of the Council Members present may designate an

earlier or later time for commencement of a particular public hearing to be held at any succeeding meeting of the Council. All public hearings shall be duly noticed as required by law.

2.28.280 - Hearings on appeal from Planning Commission.

Hearings de novo on appeal shall be conducted in the same manner as required for the original hearing before the Planning Commission. On other than de novo hearings, speakers for appellant and the respondent shall be limited to fifteen minutes per side in total. These limitations may be modified, changed or suspended by resolution of the Council at any time. Members of the public shall have the right to speak to the matter in accordance with state law.

2.28.290 - Decorum and enforcement.

While the Council is in session, the members must preserve order and decorum, and a member shall neither, by conversation or otherwise, delay or interrupt proceedings or the pace of the Council nor disturb any member while speaking or refuse to obey the orders of the Council or its presiding officer, except as otherwise herein provided.

2.28.300 - By other persons.

Pursuant to California Government Code Section 54957.95, any person or group of persons who willfully disrupt, disturbs, impedes, or renders infeasible the orderly conduct of the meeting or engages in behavior that constitutes use of force or a true threat of force may be removed. Any such persons shall first receive a warning from the Presiding Officer or their designees, and failure to promptly cease disruptive behavior shall lead to removal.

2.28.310 - Reserved.

2.28.320 - Enforcement of decorum.

The Chief of Police of the City and their deputies, or such one of them as shall be present, shall be sergeant at arms of the Council meeting. They shall carry out all orders of the presiding officer for the purposed of maintaining order and decorum at the Council meetings. Upon instructions from the presiding officer, it shall be the duty of the sergeant at arms, or any of them present, to place any person violated the order or the decorum of the meeting under arrest. And cause that person to be prosecuted under the provisions of this ordinance, the complaint to be signed by the presiding officer.

2.28.330 - Adjournment.

Any meeting may either be terminated, or continued to another time, place and/or date by adjournment, regardless of whether or not all matters on the agenda, or under

discussion have been covered, acted on or concluded. Notwithstanding the above, no meeting shall be terminated before closing all public hearings noticed for that meeting, without first continuing said public hearings to another time, place and date. Subject to the above, a motion to adjourn shall always be in order and decided without debate.

Where a meeting is continued to a future date, if either the time or place, or both of them, is not stated in the order of adjournment, it shall be deemed to be at the hour and place specified for regular meetings of the Council.”
Section 33. Chapter 2.32, Bonds for City Clerk and Treasurer, of Title 2 of the Scotts Valley Municipal Code, is hereby amended to read as follows:
“Chapter 2.32 Bonds for City Clerk and Treasurer:

2.32.010 - Bond and fidelity coverage required

2.32.020 - Blanket bond coverage

2.32.010 - Bond and fidelity coverage required.

The City Clerk, City Treasurer, and such other officers and employees as determined by the City Manager or required by law shall be covered by faithful performance bonds, fidelity insurance, crime coverage, and other equivalent insurance protection as authorized by the City Council.

The amount and form of such coverage shall be established by resolution of the City Council or pursuant to the City’s insurance and risk management programs.

2.32.020 - Blanket bond coverage.

The City may maintain blanket fidelity or crime insurance coverage for officers, employees, and designated agents of the City in such amounts and under such terms as deemed appropriate by the City Council or the City’s insurance and risk management provider.”
Section 34. Chapter 2.40, Unclaimed Property in the Police Department, of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“Chapter 2.40 Unclaimed Property in the Police Department:

2.40.010 - Custody

2.40.020 - Safe-Keeping and Disposal

2.40.030 - Rights of Owner–Proof required

2.40.040 - Rights of Finder

2.40.050 - Money to be Deposited in General Fund

2.40.060 - Charges

2.40.070 - Proceeds to be Deposited in General Fund

2.40.080- Unsalable and unusable property

2.40.090 - Dangerous or perishable property

2.40.010 - Custody.

Any unclaimed property or money coming into the possession of the Police Department shall be held for the account of the owner thereof for at least ninety days after the receipt of the same, unless the owner thereof shall sooner claim the same. A receipt shall be issued to the person delivering such property or such money.

2.40.020 - Safe-Keeping and Disposal.

The property shall be stored in a safe place, and such money shall be deposited with the City Treasurer during the ninety-day period, unless sooner claimed by the legal owner or person lawfully entitled to possession, and shall then be deemed to be unclaimed property or unclaimed money if not claimed by the legal owner and be subject to disposal as provided in this chapter.

2.40.030 - Rights of Owner–Proof required.

During such ninety-day period, such property may be delivered or such money paid to the legal owner or person lawfully entitled to possession, upon proof of ownership satisfactory to the Chief of Police or their designee. If ownership cannot be determined to the satisfaction of the Chief of Police or their designee, they may refuse to deliver such property or money to anyone until ordered to do so by a court of competent jurisdiction. No property or money shall be returned to the owner until payment of all charges therefor, as in this chapter provided.

2.40.040 - Rights of Finder.

A. Any person who turns over to the police department any lost or unclaimed property or money may assert a written claim as a finder to such property or money, in the event the legal owner of said property or money has not been found or located within the time period prescribed in this chapter. If such finder fails to assert a written claim to the property or money as a finder at the time they deliver such property or money to the Police Department, they shall be deemed to have waived their rights as a finder.

B. In the event the legal owner of such unclaimed property shall not claim the same within a period of ninety days from the receipt thereof, the Chief of Police or their

designee may deliver such property or money to the finder, if they have indicated in writing that they wish to assert a claim to the property or money as the finder, and if they appear at the police station and demands the return of the property or money within ten days after the expiration of the ninety-day period hereinabove mentioned. Charges may be imposed as provided in this chapter.

2.40.050 - Money to be Deposited in General Fund.

A. All property so received by the Chief of Police or their designee and not delivered to the legal owner during the ninety-day period, or to the finder as hereinabove provided, shall be disposed of by public auction, or appropriated to the use of the City of Scotts Valley, whichever the City Manager determines to be in the best interests of the city B. Notwithstanding subsection A, in the event said property is deemed to be of no value by the City Manager it shall be disposed of in the manner they determine to be in the best interests of the city
C. In the event an auction is held, there shall be published in a newspaper of general circulation, published in the city, at least five days prior to such sale, a notice announcing the date, time and place of the sale. If there is no such newspaper, notices shall be posted in at least three public places within the City.

2.40.060 - Charges.

Prior to returning any property or money to the legal owner or person lawfully entitled to possession, or, if the legal owner or person lawfully entitled to possession cannot be located, to the finder, the Chief of Police or the Chief’s designee shall require payment of the actual, reasonable, and necessary costs incurred by the City in storing, safeguarding, preserving, transporting, or otherwise maintaining the property.

2.40.070 - Proceeds to be Deposited in General Fund.

After any auction authorized by this chapter is completed, the Chief of Police or their designee shall deliver the proceeds of the auction to the Ccity Treasurer for deposit in the general fund.

2.40.080 - Unsalable and unusable property.

Any property advertised and offered for sale but not sold and not suitable for appropriation to the use of the city shall be deemed to be of no value and shall be disposed of in such manner as the City Manager directs.

2.40.090 - Dangerous or perishable property.

Any property coming into the possession of the Chief of Police or their designee which is determined by the Chief of Police or their designee to be dangerous, unlawful to possess, perishable or hazardous to the public health may be disposed of immediately without notice, in such manner as they determined to be in the public interest.” Section 35. Chapter 2.44, Public Employees’ Retirement System, of Title 2 of the Scotts Valley Municipal Code, is hereby amended to read as follows:
“Chapter 2.44: Public Employees’ Retirement System

2.44.010 - Participation authorized

2.44.020 - Authorized representatives

2.44.010 - Participation authorized.

The City is authorized to participate in the California Public Employees’ Retirement System (“CalPERS”) pursuant to applicable provisions of the California Government Code.

The City may enter into and amend contracts with the Board of Administration of CalPERS for retirement and related benefits for eligible officers and employees of the City.

2.44.020 - Authorized representatives.

The City Manager, Mayor, or their designee is authorized to execute CalPERS contracts, amendments, certifications, and related documents on behalf of the City as authorized by the City Council.”
Section 36. Chapter 2.48 of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“Chapter 2.48: Emergency Preparedness

2.48.010 - Purposes

2.48.020 - Definitions

2.48.030 - Reserved

2.48.040 - Reserved

2.48.050 - Director of Emergency Services

2.48.060 - Powers of the Director

2.48.070 - Emergency Services Organization

2.48.080 - Divisions, Services, and Staff of the Organization

2.48.090 - Punishment of Violations

2.48.100 - Continuity of Government

2.48.010 - Purposes.

The declared purposes of this chapter are to provide for the preparation and carrying out of plans for the protection of persons and property within this city in the event of an emergency and to provide for the coordination of the emergency services of this city with all other public agencies and affected private persons, corporations and organizations. Any expenditures made in connection with such emergency response activities, including mutual aid activities, shall be deemed conclusively to be for the direct protection and benefit of the inhabitants and property of the City.

2.48.020 Definitions.

A. Emergency. As used in this chapter, the term “emergency” means actual or threatened enemy attack, sabotage, extraordinary fire, flood, storm, epidemic, pandemic, riot, earthquake, sabotage, enemy attack or other similar public calamity.

B. Emergency Services. As used in this chapter, the term “emergency services” is the preparation for, and the execution of, all emergency functions, other than functions for which military forces are primarily responsible, to prevent, minimize, and repair injury and damage resulting from an emergency. It shall not include, nor does any provision of this chapter apply to, any condition relating to a labor controversy.

2.48.030 - Reserved

2.48.040 - Reserved

2.48.050 - Director of Emergency Services.

The City Manager of the City of Scotts Valley shall serve as the Director of Emergency Services of the City of Scotts Valley.

The Emergency Services Director is empowered to:

A. Request the City Council to proclaim the existence or threatened existence of an emergency and the termination thereof if the City Council is in session, or to issue such a proclamation if the City Council is not in session, subject to confirmation by the City Council at the earliest practicable time; B. Request the Governor to proclaim a state of local emergency or a state of emergency when, in the opinion of the Emergency Services director, the resources of the area or region are inadequate to cope with the emergency.

C. Control and direct the effort of the emergency services organization of this City for the accomplishment of the purposes of this chapter; D. Direct coordination and cooperation between departments, services and staff of the emergency services organization of this city, and to resolve questions of authority and responsibility that may arise between them; E. Represent the emergency services organization of this City in al dealings with public or private agencies pertaining to emergency services.

2.48.060 - Powers of the Director.

In the event of the proclamation of an emergency as herein provided, or the proclamation of a state of emergency by the Governor or the director of the California Governor’s Office of Emergency, the Emergency Services Director is hereby empowered to:

A. Make and issue rules and regulations on matters reasonably related to the protection of life and property as affected by such emergency; provided, however, such rules and regulations must be confirmed at the earliest practicable time by the City Council.

B. Obtain vital supplies, equipment and such other properties found lacking and needed for the protection of the life and property of the people, and bind the City for the fair value thereof, and if required immediately, to commandeer the same for public use;
C. Require emergency services of any City officer or employee and, in the event of the proclamation of a state of emergency by the Governor in the region in which the City is located, to command the aid of as many citizens of this community as they think necessary in the execution of their duties; such persons shall be entitled to all privileges, benefits and immunities as are provided by state law for emergency service workers.

D. Requisition necessary personnel or material of any City Department or agency; E. Execute all of their ordinary powers are required by their official position within the City, all of the special powers conferred upon them by this chapter or by resolution adopted pursuant thereto, all powers conferred upon them, by any statute, agreement approved by the City Council, or by any other lawful authority, and in conformity with Section 38791 of the Government Code, to exercise complete authority over the City and to exercise all police power vested in the City by the constitution and general laws.

2.48.070 - Emergency Services Organization.

All officers and employees of this city, together with those volunteer forces enrolled to aid them during an emergency, and all groups, organizations and persons who may by agreement or operation of law, including persons pressed into service under the

provisions of subsection C of Section 2.48.060 of this chapter, be charged with duties incident to the protection of life and property in this City during such emergency, shall constitute the emergency services organization of the City.

2.48.080 - Divisions, services and staff of the organization.

The functions and duties of the emergency services organization shall be distributed among such divisions, services and special staff as the City Council shall prescribe by resolution. The Council shall, concurrently with the adoption of the ordinance codified in this chapter, adopt a resolution setting forth the form of organization, establishment and designation of divisions and services, the assignment of functions, duties and powers, and the designation of officers and employees.

2.48.090 - Punishment of Violations.

It is a misdemeanor, punishable by a fine not to exceed five hundred dollars, or by imprisonment for not to exceed six months, or both, for any person during an emergency to:

A. Willfully obstruct, hinder or delay any member of the emergency services organization in the enforcement of any lawful rule or regulation issued pursuant to this chapter, or in the performance of any duty imposed upon him by virtue of this chapter;
B. Do an act forbidden by any lawful rules or regulations issued pursuant to this chapter if such act is to imperil the lives or property of inhabitants of this city, or to prevent, hinder or delay the defense or protection thereof; C. To wear, carry, or display without authority any means of identification specified by the California Governor’s Office of Emergency Services or the Emergency Services Director.

2.48.100 Continuity of Government.

During an emergency, City Council may have vacancies where a Council Member is unable to serve due to incapacitation or other situations arising from the emergency event. In order to preserve the function of local government in such a circumstance, the City will reconstitute its City Council based on the provisions of California Government Code Section 8635 through 8644.”
Section 37. Chapter 2.52 of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.52 – Background Investigations and Criminal History Records

2.52.010 - Purpose and Findings

2.52.020 - Administrative Procedures

2.52.030 - Background Investigations

2.52.040 - Evaluation of Criminal History Information

2.52.050 - Compliance with Applicable Law

2.52.060 - Confidentiality

2.52.070 - Authorized Access to Criminal History Information

2.52.080 - Administrative Procedures

2.52.010 Purpose and Findings
A. The City Council finds that the City has a responsibility to protect public safety, safeguard public funds and property, preserve confidential information, maintain the integrity of municipal operations, and promote public confidence in City government.

B. The City Council further finds that individuals employed by, providing services to, volunteering for, conducting business with, or seeking authorization from the City may be entrusted with public resources, confidential information, City facilities, information technology systems, official records, direct interaction with members of the public, or participation in programs involving vulnerable populations.

C. The City Council finds that background investigations and criminal history record checks, when authorized by applicable law, are appropriate tools to assist the City in evaluating the suitability of individuals whose duties, activities, responsibilities, or privileges may affect the safety, security, or welfare of the public, City employees, or City operations.

D. The purpose of this chapter is to establish the City's authority to conduct background investigations, obtain criminal history information as authorized by law, evaluate individuals in a fair and consistent manner, and ensure compliance with applicable federal and state laws governing the use of criminal history information.

2.52.020 Applicability.

A. This chapter applies, as authorized by applicable law, to any individual seeking to obtain or maintain employment, appointment, volunteer status, internship, contract, consulting engagement, permit, license, authorization, certification, or any other relationship with the City for which a background investigation or criminal history records check is authorized, required, or determined by the City to be appropriate.

B. Individuals subject to this chapter may include, but are not limited to:

1. Applicants for employment;

2. Current employees;

3. Volunteers;

4. Interns;

5. Reserve personnel;

6. Consultants;

7. Independent contractors;

8. Employees of contractors assigned to perform services for or on behalf of the City;

9. Recreation instructors, coaches, camp counselors, and program leaders;

10.Applicants for permits, licenses, authorizations, or certifications when authorized or required by law or City policy;

11.Individuals providing services on behalf of the City; and

12.Any other person for whom a background investigation is authorized or required by federal, state, or local law or determined by the City to be appropriate for the protection of public safety, City resources, or the integrity of municipal operations.

C. Nothing in this chapter shall be construed to authorize the collection, use, or dissemination of criminal history information except as permitted by applicable law.

2.52.030 Background Investigations.

A. The City may require an individual subject to this chapter to successfully complete one or more background investigations or screening processes before appointment, employment, approval, issuance of a permit or license, authorization to perform services, or continued participation in a City program or activity.

B. Background investigations may include, as authorized by applicable law:

1. Fingerprint-based criminal history records checks;

2. State and federal criminal history records checks;

3. Employment history verification;

4. Education verification;

5. Professional license or certification verification;

6. Reference checks;

7. Driving history;

8. Credit history where authorized by law;

9. Verification of eligibility to work;

10.Verification of professional qualifications; and

11.Any other lawful inquiry reasonably related to determining an individual's suitability for the position, permit, license, authorization, contract, activity, or relationship with the City.

C. The scope and extent of any background investigation shall be reasonably related to the duties, responsibilities, privileges, or risks associated with the position, activity, or authorization.

2.52.040 Evaluation of Criminal History Information.

A. When authorized by applicable law, the City may consider criminal history information that is substantially related to the duties, responsibilities, privileges, or activities associated with the position or authorization.

B. Criminal conduct that may be considered includes, but is not limited to:

1. Fraud;

2. Theft;

3. Embezzlement;

4. Forgery;

5. Identity theft;

6. Bribery or corruption;

7. Misuse of public office or abuse of public trust;

8. Computer crimes or unauthorized access to information systems;

9. Misuse or unlawful disclosure of confidential information;

10.Violence, threats of violence, abuse, or sexual misconduct;

11.Controlled substance offenses or other offenses that bear a direct relationship to the duties or responsibilities of the position; and

12.Any other criminal conduct that may lawfully be considered and is substantially related to the position or activity.

C. In evaluating criminal history information, the City shall comply with applicable federal and state law and shall consider factors including:

1. The nature and gravity of the offense or conduct;

2. The time that has elapsed since the offense or completion of sentence;

3. The nature of the position, activity, permit, or authorization sought;

4. Evidence of rehabilitation;

5. Mitigating circumstances; and

6. Any other factors required by applicable law.

D. Nothing in this chapter shall require the disqualification of an individual based solely upon a criminal conviction unless otherwise required by law.

2.52.050 Compliance with Applicable Law.

A. The City shall conduct background investigations and evaluate criminal history information in accordance with all applicable federal, state, and local laws governing

employment practices, licensing, permitting, privacy rights, nondiscrimination, and the authorized use of criminal history information.

B. Where a specific statute establishes eligibility criteria, mandatory disqualifications, procedural requirements, or additional background investigation requirements for a particular position, permit, license, certification, volunteer activity, or other authorization, those requirements shall govern.

C. Individuals shall receive any notices, opportunities to respond, and procedural protections required by applicable law.

2.52.060 Confidentiality.

A. Criminal history information received from the California Department of Justice, the Federal Bureau of Investigation, or any other authorized source shall be maintained as confidential and used solely for the purpose for which it was obtained.

B. Criminal history information shall not be disclosed except as authorized or required by law.

C. Records obtained pursuant to this chapter shall be maintained in accordance with applicable law and the City's records retention requirements.

2.52.070 Authorized Access to Criminal History Information.

A. Pursuant to California Penal Code Section 11105 and other applicable law, the City Manager, Human Resources Manager, Chief of Police, City Clerk, City Attorney, and any employee or designee authorized by the City Manager to administer background investigations are authorized to request, receive, review, and utilize state summary criminal history information solely for authorized governmental purposes and in accordance with applicable law.

B. Access to criminal history information shall be limited to those individuals whose official duties require such access.

C. Nothing in this section shall be construed to expand or limit the authority granted under federal or state law.

2.52.080 Administrative Procedures.

A. The City Manager is authorized to adopt administrative rules, procedures, forms, and standards necessary to implement this chapter.

B. Administrative procedures may include, but are not limited to:

1. Categories of individuals subject to background investigations;

2. Levels and types of background investigations appropriate for various positions, permits, licenses, contracts, activities, or authorizations;

3. Standards and procedures for fingerprint-based criminal history records checks;

4. Criteria for evaluating criminal history information;

5. Confidentiality and records management requirements;

6. Procedures for obtaining required authorizations and releases;

7. Appeal or review procedures where required by law or City policy; and

8. Any other administrative requirements necessary to implement this chapter.” Section 38. Chapter 2.56, Elections, of Title 2 of the Scotts Valley Municipal Code is hereby amended to read as follows:
“2.56 - Elections

2.56.010 - Holding of General Municipal Elections.

2.56.020 - Reserved

2.56.030 - City Clerk Requirements

2.56.010 - Holding of General Municipal Elections
All general elections in the City shall hereafter be held in accordance with the dates specified under California state Elections code Section 1000.

2.56.020 - Reserved.

2.56.030 - City Clerk Requirements
Pursuant to Elections Code Section 320, the City Clerk shall serve as the City election official and fulfil all duties set by the California state Elections Code.” Section 39. Chapter 2.70, Purchasing of Title 2 of the Scotts Valley Municipal Code, is hereby amended to read as follows:
“Chapter 2.70: Purchasing

2.70.010 - Purposes

2.70.020 - Definitions

2.70.030 - Procurement authority and responsibilities

2.70.040 - Contract award

2.70.050 - Procurement methods

2.70.060 - Exceptions to competitive bidding

2.70.070 - Bidding for public works projects

2.70.071 - Reserved

2.70.072 - Reserved

2.70.073 - Reserved

2.70.074 - Reserved

2.70.080 - Requisition and purchase order requirements

2.70.090 - Available funds

2.70.100 - Surplus or unused supplied, materials and equipment

2.70.110 - Environmentally preferable purchasing

2.70.120 - Local vendor preference

2.70.010 - Purposes.

The purpose of this chapter is to establish the City's procurement and contracting framework for the acquisition of goods, services, and public works projects using public funds. This chapter establishes contract award authority, promotes fair and efficient procurement practices, provides for appropriate financial controls, and authorizes the City Manager to establish administrative procurement policies and procedures consistent with this chapter and applicable law.

The City's procurement activities shall seek to obtain the best value for the public while promoting competition, transparency, accountability, and operational efficiency.

2.70.020 - Definitions.

For the purposes of this chapter:
“Best value procurement” refers to the application of evaluative factors in addition to price for the purpose of awarding a purchase contract for goods, services and/or Professional services.
“Contract” means all types of City agreements, regardless of what they may be called, for the procurement of goods, services or public works construction. “Emergency” means any natural disaster, work stoppage or other action or activity that impairs public health, safety or both.
“Formal bidding” refers to the process by which sealed bids or proposals are solicited. “Informal bidding” refers to the processes by which price quotations are solicited.

“Local vendor” means any wholesaler, distributor, dealer, or merchant or seller of goods and/or services with their primary place of business located within the city limits of Scotts Valley.
“Materials, supplies and/or equipment,” also referred to as “goods,” means all materials, supplies and/or equipment of whatever kind purchased by the City except materials, supplies and/or equipment for public works projects and governed by law related to bidding for public works projects
"Professional services" means the services of attorneys; physicians; architects; engineers; consultants; auditors; specialized printers; other individuals or organizations possessing a high degree of professional, unique, specialized, technical skill and/or expertise; individuals contracting for special activities or negotiating for the acquisition of land; individuals contracting to provide services related to insurance bonds or any other services of a similar nature engaged for a particular project or series of projects; or other governmental agencies.
"Purchasing Cooperative" refers to the use of another public entity's procurement process similar to that required by the City in order to purchase goods and/or services that result in time and/or cost savings or otherwise provide the best overall value. The practice of using another public entity's competitive solicitation process is also referred to as "piggybacking."
"Responsive bidding" means a person or entity who has submitted a bid that conforms in all material respects to the requirements set forth in the bidding documents. "Responsible bidder" means a person or entity who possesses the demonstrated ability, fitness, quality, capacity, experience, trustworthiness and skill to deliver the required goods and/or services.
"Services" means all types of service except services provided by persons performing Professional services.
"Sole source" refers to a situation where a good or service can only be obtained from one source due to its proprietary or specialized nature, or a situation where product/service compatibility is an overriding consideration to price. "Surplus property" means materials, supplies, or equipment that are no longer used or have become obsolete, to be sold, exchanged or donated in accordance with established procedures.

2.70.030 - Procurement authority and responsibilities.

A. City Manager. The City Manager shall serve as the Purchasing Officer and shall have authority to:

1. Procure or contract for goods, services, Professional services and public works projects in accordance with this chapter, applicable provisions of the California Public Contract Code, and other applicable laws and regulations;

2. Establish and administer procurement policies, procedures, and forms necessary to implement this chapter;

3. Designate one or more City employees to perform purchasing functions on behalf of the Purchasing Officer;

4. Negotiate, execute, and administer contracts consistent with the authority established by this chapter;

5. Promote competition, obtain best value for public funds, and ensure compliance with applicable procurement requirements; and

6. Administer the transfer, sale, trade, disposal, or other disposition of surplus City property in accordance with this chapter and applicable administrative policy.

B. Responsibilities of City Departments. City departments shall comply with this chapter and applicable administrative procurement policies and procedures, identify procurement needs and available funding, and assist in procurement and contract administration activities as required by the Purchasing Officer.

2.70.040 - Contract award.

A. City Manager. The City Manager shall be the award authority for contracts with a contract value not exceeding one hundred thousand dollars ($100,000). The City Manager may approve and execute amendments, extensions, renewals, change orders, and other modifications to such contracts, provided the total contract value does not exceed the City Manager’s authority established in this subsection.

B. City Council. The City Council shall be the award authority for contracts with a total potential value exceeding one hundred thousand dollars ($100,000).

Following City Council approval of a contract and its authorized not-to-exceed amount, the City Manager may execute the contract and exercise any extensions, renewals, amendments, change orders, or other modifications authorized by the contract or approved by the City Council, provided such actions does not increase the contract value beyond the amount authorized by the City Council. Any action that would increase the contract value beyond the amount authorized by the City Council shall require City Council approval.

C. Determination of Contract Value. For purposes of this section, contract value shall mean the total potential financial obligation of the City under the contract at the time of award, including the base term and all authorized renewal, extension, and amendment options. Where a contract permits price adjustments based on a consumer price index or other escalation formula, the estimated value of such adjustments shall be included in determining contract value.

D. Delegation of Contract Award Authority. The authorities established in this section may be delegated as follows:

1. City Manager. For operational effectiveness, the City Manager may delegate contract award authority in writing to other City officials or employees for the procurement of goods, services, Professional services and public works projects. Any such delegation shall not exceed the City Manager’s authority established in subsection A.

2. City Council. The City Council may delegate its contract award authority to the City Manager if deemed necessary for operational effectiveness.

Such delegation shall not be extended to City officials other than the City Manager unless expressly authorized by majority vote of the City Council.

2.70.050 - Procurement methods.

The City may utilize procurement methods including, but not limited to, open market purchases, informal bidding, formal bidding, purchasing cooperatives, requests for proposals, requests for qualifications, best value procurement, and other methods authorized by law or this chapter.

Procurements with a total contract value not exceeding one hundred thousand dollars ($100,000) may be conducted using procurement methods established by administrative policy.

Except as otherwise authorized by this chapter, procurements with a total contract value exceeding one hundred thousand dollars ($100,000) shall be conducted using a formal solicitation process.

The City Manager shall establish administrative policies and procedures governing procurement activities, including solicitation requirements, evaluation methods, award procedures, contract administration requirements, and other purchasing practices necessary for the efficient operation of the City.

Contracts shall be awarded by the appropriate award authority in accordance with Section 2.70.040.

Nothing in this chapter shall preclude the use of best value procurement methods when authorized by law and determined to be in the best interest of the City.

2.70.060 - Exceptions to competitive bidding.

The following procurement methods or situations may be exempt from competitive bidding, subject to approval by the Purchasing Officer and compliance with applicable state or federal laws.

A. Purchasing Cooperatives. The City may procure goods and services through purchasing cooperatives, cooperative purchasing agreements, or other cooperative procurement programs. The use of purchasing cooperatives shall be administered in accordance with the City’s Administrative Procurement Policy.

B. Emergency Purchases. In the event of an emergency as defined in Section

2.70.020, the Purchasing Officer may purchase, or authorize the purchase, of goods and/or services in the open market without complying with the provisions of this chapter, unless competitive bidding is otherwise required by law and/or as a condition of grant reimbursement under emergency assistance programs.

C. Sole Source Purchases. Purchases that are only available from one source may be made without competitive bidding when approved by the Purchasing Officer and supported by documentation required by the Administrative Procurement Policy.

D. Piggyback Contracting. Subject to the appropriate approval authority, the City may enter into contracts for the purchase of goods and services through contracts previously awarded by another public agency. The use of piggyback contracts shall be administered in accordance with the City’s Administrative Procurement Policy.

E. Other Exceptions. Additional exceptions to competitive bidding may be established by administrative policy, provided such exceptions are authorized by applicable law.

2.70.070 - Bidding for public works projects.

By City Council Resolution Nos. 1137 and 1137.1, the City Council elected to be subject to the Uniform Public Construction Accounting Act (the “Act”) (California Public Contract Code Section 22000 et seq.), as may be amended from time to time.

Public works projects subject to the Act shall be solicited, bid, awarded, and administered in accordance with the Act and applicable provisions of the California Public Contract Code.

The City shall maintain a list of qualified contractors and perform all other duties required by the Act.

The City Manager or Purchasing Officer may establish administrative policies and procedures necessary to implement and administer the requirements of the Act.

To the extent any provision of this chapter conflicts with the Act, the provisions of the Act shall control.

2.70.080 - Requisition and purchase order requirements.

The City Manager or Purchasing Officer shall establish administrative policies and procedures governing requisitions, purchase orders, purchasing documentation, approvals, and related procurement processes.

2.70.090 - Available funds.

Except in the event of an emergency authorized by this chapter, no purchase or contract shall be authorized unless sufficient appropriated funds are available for the expenditure.

2.70.100 - Surplus property.

The Purchasing Officer shall have authority to determine the disposition of surplus, obsolete, or unusable supplies, materials, equipment, and other personal property in accordance with administrative policy. Such property may be sold, exchanged, traded, donated, recycled, or otherwise disposed of as authorized by administrative policy and applicable law.

2.70.110 - Environmentally preferable purchasing.

To the extent practical and consistent with applicable law, the City shall encourage the purchase of environmentally preferable products and services when such products and services meet the City's operational needs and are available at a reasonable cost.

2.70.120 - Local vendor preference.

To the extent permitted by law, the City may provide a preference for qualified local vendors in the award of contracts for goods and services.

The City Manager or Purchasing Officer shall establish administrative policies and procedures governing the application of the local vendor preference, including eligibility requirements, documentation standards, and implementation procedures.

The local vendor preference shall not exceed five percent (5%) of the lowest responsive and responsible bid or proposal.”

Section 40. Title 2 of the Scotts Valley Municipal Code is hereby amended by adding Chapter 2.71, City Engineer, to read as follows:
“2.71 City Engineer

2.71.010 - Established

2.71.010 Established
There is hereby established the Office of the City Engineer which shall be designated by the City Manager.”
Section 41. 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 update existing provisions of the Municipal Code to comply with state and federal law and update policies and procedures.

Section 42. 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 43. REPEALS CONFLICTING ORDINANCES. All other ordinances of the City of Scotts Valley or provisions of the Scotts Valley Municipal Code which are in conflict with this Ordinance are hereby repealed to the extent of such conflict. 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 44. EFFECTIVE DATE. This Ordinance shall be in full force and effect thirty (30) days from and after the date of its adoption.

Section 45. 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 5th day of August 2026, and passed and adopted on the 19th day of August 2026, at a duly held meeting of the City Council of the City of Scotts Valley by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: _____________________
Donna Lind, Mayor
ATTEST:
________________________
Cathie Simonovich, City Clerk
APPROVED AS TO FORM:

________________________
Kirsten Powell, City Attorney

AGENDA ITEM 3.

DATE: 8/19/2026
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 8/19/2026
TO: Honorable Mayor and City Council
FROM: Kendra Reed, Finance Manager
APPROVED: Mali LaGoe, City Manager
SUBJECT: Investment Report for the Quarter Ended June 30, 2026

SUMMARY OF ISSUE
Attached is the quarterly investment report for the City and the Supplemental Law Enforcement Services Fund (SLESF) for the period ended June 30, 2026. This item is provided for Council review in accordance with California Government Code requirements. No Council action is required.

The investment portfolio is in compliance with the City’s adopted Investment Policy and California Government Code Section 53646. Sufficient liquidity is maintained to meet the City’s anticipated expenditures for the next six months.

The City primarily invests operating funds in the Local Agency Investment Fund (LAIF), the California Asset Management Program (CAMP), and demand deposit accounts. CAMP is a California Joint Powers Authority (JPA) established in 1989. Investments in the CAMP Cash Reserve Portfolio and CAMP Term are permitted under California Government Code Section 53601(p). CAMP is governed by a Board of Trustees consisting of experienced local agency finance professionals.

The SLESF investment report reflects the status of funds received from the State of California and restricted for front-line law enforcement services as of June 30, 2026.

Additional information regarding the State’s Pooled Money Investment Account (PMIA) and LAIF is included for reference from the California State Treasurer’s Office.

FISCAL IMPACT
There is no fiscal impact of receiving and filing the report.

STAFF RECOMMENDATION
Receive and file an Investment Report for the Quarter Ended June 30, 2026.

TABLE OF CONTENTS

1. FY2526_Q4 Investment Report

TRUSTEE TYPE OF INVESTMENT ISSUER MATURITY DATE FACE VALUE COST MARKET VALUE VALUATION YIELD General Pooled Investments
State of California Local Agency Investment Fund (LAIF) State of California Demand - 1 day $ 22,947,694 $ 22,947,694 $ 22,921,818 * LAIF 3.920% Board of Trustees California Asset Management Program (CAMP) CAMP Demand - 1 day $ 550,989 $ 550,989 $ 550,989 CAMP 3.770% West Coast Community BankWest Coast Community Bank WCCB Demand - 1 day $ 255,173 $ 255,173 $ 255,173 WCCB 3.880% Weighted Average Rate for General Pooled Investments 3.916% Section 115 Trust
Charles Schwab Trust Bank Mutual Fund Schwab 2,347,582 2,347,582 $ 2,480,937 Schwab 4.210% Investments of Bond Proceeds
Bank of New York Mellon US Treasury Notes Bank of New York Mellon Demand - 1 day $ 412 $ 412 $ 412 Bank of New York 3.040% Bank of New York Mellon US Treasury Notes Bank of New York Mellon Demand - 1 day $ 361,110 $ 361,110 $ 361,110 Bank of New York 3.515% ** Bank of New York Mellon US Treasury Notes Bank of New York Mellon Demand - 1 day $ 1 $ 1 $ 1 Bank of New York 0.000% * Interest is paid at maturity. Market Value based on latest factor of 0.998872382 provided by LAIF on 06/30/2026, which has been applied to face value. ** Weighted average for all accounts.

City of Scotts Valley
Quarterly Investment Report
June 30, 2026
87%
2%
1%
9%
Portfolio Investment Allocation
Local Agency Investment Fund
CAMP
WCCB
Section 115 Trust Mutual Funds

FACE VALUE TRUSTEE/INVESTMENT TYPE YIELD
$ 239,883 $ 239,612 * California Local Agency Investment Fund (LAIF) 3.920% $ 239,883 $ 239,612
* Interest is paid at maturity. Market Value includes accrued interest.

Supplemental Law Enforcement Fund (SLESF)
Quarterly Investment Report
June 30, 2026

MARKET VALUE

MONTHLY PERFORMANCE
Pooled Money Investment Account
June 2026
6/30/2026 5/31/2026 12 Months

HIGH LOW
Average Life (days) 269 271 271 244
Certificates of Deposit & Bank Notes 10.82% 10.15% 10.82% 9.16% Commercial Paper 6.72% 6.52% 6.85% 5.38%
Treasuries 57.20% 58.59% 58.59% 51.39%
MARKET VALUE (%) of BOOK VALUE
Sep-2024 101.2007 Sep-2025 101.1558
Dec-2024 100.9316 Dec-2025 101.1164
Mar-2025 100.9501 Mar-2026 100.7756
Jun-2025 101.0035 Jun-2026 100.6914

97.5 98.0

98.5 99.0

99.5 100.0
100.5
101.0
101.5
102.0
102.5
103.0
103.5
9/24 12/24 3/25 6/25 9/25 12/25 3/26 6/26
Market Value (%) of Book Value

PMIA MARKET VALUATION
PMIA
Market Value
BV=100
Treasuries

57.20%
Agencies

21.76%
Certificates
of Deposit /
Bank Notes

10.82%
Time
Deposits

2.78%
Commercial
Paper

6.72%
Corporate
Bonds
Loans 0.60%

0.12%
PMIA Portfolio Composition
6/30/2026
$193.1 billion
Average Monthly Yield Comparison - 06/2021 through 06/2026

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
PMIA
S&P
Fed Funds
June Yields
6/20219/2021
12/2021
3/20226/20229/2022
12/2022
3/20236/20239/2023
12/2023
3/20246/20249/2024
12/2024
3/20256/20259/2025
12/2025
3/20266/2026
PMIA 3.816%
S&P GIP 3.810%
Fed Funds 3.610%
Percentages may not total 100%, due to rounding.

June 3.816
May 3.810
April 3.811
March 3.826
February 3.871
January 3.931
LAIF Apportionment Rate(2): 3.92
LAIF Earnings Ratio(2): 0.00010743238142967
LAIF Administrative Cost(1)*: 0.22
PMIA Average Life(1): 269
LAIF Fair Value Factor(1): 0.998872382
PMIA Daily(1): 3.83
PMIA Quarter to Date(1): 3.81
Treasuries

57.20%
Agencies

21.76%
Certificates of
Deposit/Bank Notes

10.82%
Time
Deposits

2.78%
Commercial
Paper

6.72%
Corporate
Bonds

0.60%
Loans

0.12%
Notes: The apportionment rate includes interest earned on the CalPERS Supplemental Pension Payment pursuant to Government Code 20825 (c)(1) .
*The percentage of administrative cost equals the total administrative cost divided by the quarterly interest earnings. The law provides that administrative costs are not to exceed 5% of quarterly EARNINGS of the fund. However, if the 13-week Daily Treasury Bill Rate on the last day of the fiscal year is below 1%, then administrative costs shall not exceed 8% of quarterly EARNINGS of the fund for the subsequent fiscal year.

Source:
(1) State of California, Office of the Treasurer
(2) State of California, Office of the Controller
PMIA Average Monthly
Effective Yields(1)
PMIA/LAIF Performance Report
as of 07/22/26
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 06/30/26
Chart does not include $749,000.00 in mortgages, which equates to 0.0004%. Percentages may not total 100% due to rounding.

Pooled Money Investment Account
Monthly Portfolio Composition (1)
06/30/26
$193.1 billion

AGENDA ITEM 4.

DATE: 8/19/2026
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 8/19/2026
TO: Honorable Mayor and City Council
FROM: Stephanie Hill, Administrative Services Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: Monthly Treasurer's Report - May 2026

SUMMARY OF ISSUE
Summary and Statutory Requirement
California Government Code Section 41004 requires the City Treasurer to submit a written report and accounting of all receipts, disbursements, and fund balances to the City Clerk and the legislative body. The attached Treasurer’s Report is prepared to fulfill this statutory requirement.

The attachment provides a summary of the City’s cash-based investment activity and financial position for May. This report reflects only cash receipts, disbursements, and fund balances for the period presented. It does not include internal accounting entries, accrual adjustments, depreciation, interfund reclassifications, or other year-end transactions that occur as part of the annual audit and close process.

The FY 2025-26 Annual Comprehensive Financial Report (ACFR) is currently in process. The City is continuing to complete its fiscal year-end close, including the recording of remaining transfers, accruals, reclassifications, and other year-end accounting entries necessary to finalize the City’s financial statements. Accordingly, the fund balances included in this report are unaudited and subject to change based on final year-end accounting and audit entries.

Final audited fiscal year-end results will be formally reported in the ACFR upon completion of the audit.

Because the FY 2025-26 year-end close is still in progress, the June Treasurer’s Report will not be included in this City Council agenda. The June report is anticipated to be available at the first City Council meeting in September, once the necessary year-end accounting entries have been substantially completed and the financial information provides a more meaningful representation of the fiscal year-end cash position.

Fourth Quarter Financial Interpretation, April Through June The information presented reflects financial activity through the fourth quarter and fiscal year end. This period captures the most complete view of the City’s annual cash-based financial activity.

The second major property tax distribution is typically received in April, completing the primary property tax revenue for the fiscal year. Final sales tax, transient occupancy tax, franchise fees, and grant-related revenues are also substantially realized during this period, however, these typically require significant year-end accrual entries in July as the actual payments do not come in during the same month.

Expenditure activity reflects:
• The full year of regular operations
• Completion of capital projects
• Contract closeouts
• Final staffing adjustments and payroll activity
Fourth-quarter results represent the City’s closest cash-based approximation of year-end performance, but remain subject to final accounting adjustments during the audit process.

How to Interpret the Treasurer’s Report
The Treasurer’s Report remains a cash-based and unaudited snapshot. It does not include final accrual entries, depreciation, or reclassifications that occur during the close and audit process. As a result, this report should be viewed as a preliminary year-end position.

Relationship to the Annual Audit and Financial Reporting Final official financial results for the fiscal year will be presented in the Annual Comprehensive Financial Report (ACFR) following completion of the independent external audit, typically in December. The audited ACFR serves as the City’s formal financial record for the fiscal year.

Transition to the New Fiscal Year
Fourth-quarter reporting also marks the transition into the new fiscal year. As year-end entries are finalized, beginning balances for the upcoming fiscal year may continue to change until the audit is complete.

FISCAL IMPACT
There is no fiscal impact in receiving and filing the report.

STAFF RECOMMENDATION
Review and accept the Treasurer’s Report for the month ended May 31, 2026.

TABLE OF CONTENTS

1. 2026.05_Monthly Treasurer's Report

Cash and Investments Balance by Fund
In accordance with California Government Code Section 53601, the City utilizes a pooled cash and investment approach. This means that all available cash from various City funds is consolidated into a single investment pool for the purpose of maximizing interest earnings and ensuring effective cash management.

The pooled funds are invested in compliance with the City's adopted Investment Policy, which is guided by the primary objectives of safety, liquidity, and yield. Investments are made only in instruments permitted under Government Code §53601, including but not limited to:
• U.S. Treasury and agency securities
• Bank certificates of deposit
• Bank demand deposits
• Local Agency Investment Fund (LAIF)
• California Asset Management Program (CAMP)
• Municipal bonds
• Money market accounts
Each fund participating in the pool retains its individual equity interest and receives its proportionate share of investment earnings based on its average cash balance.

This pooling strategy provides economies of scale, increases investment diversification, and ensures that public funds are managed responsibly in accordance with state law and best practices for public sector finance.

As of May 31, 2026, the City’s unaudited cash and investments totaled $26,071,572. • A negative fund balance may occur temporarily when expenditures are incurred before related revenues are received, or when internal transfers from other funds are pending.

These timing differences are expected to be resolved in future periods as revenues are collected or transfers are completed.

Fund Category Cash Summary
General Fund $ 5,527,119
General Capital Improvement Fund $ (1,886,006)
Special Revenue Fund - Development Impact Fees $ 5,230,540 Special Revenue Fund $ 14,222,376
Debt Service $ 769,878
Wastewater Enterprise Fund $ 2,207,665
$ 26,071,572
Investment Type Cash Summary
Bank of America $ (153,658)
LAIF $ 22,947,694
CAMP $ 549,288
WCCB $ 254,375
SCHWAB $ 2,473,873
$ 26,071,572

City’s Current Financial Position
In accordance with California government code section 53646 (b) (3), the City is financially positioned and able to meet its estimated expenditure requirements for the next six months.

The following Fund Balance schedule represents actual funding available for all funds at the end of the monthly period. This amount differs from the above Cash Summary schedule as assets and liabilities are components of the fund balance. As illustrated in the summary below, Total Cash is adjusted by the addition of Total Assets less the amount of Total Liabilities to arrive at the Ending Fund Balance – which represents the actual amount of funds available.

Working capital represents the difference between the Wastewater Fund’s current assets (such as cash, investments, and receivables) and its current liabilities (such as accounts payable and accrued expenses). It is a measure of the Fund’s short-term financial health and its ability to meet operating obligations as they come due.

Total Cash $ 26,071,572
Plus: Assets $ 5,897,566
Less: Liabilities $ (3,875,448)
Ending Fund Balance $ 28,093,690
Adjusting Cash to Ending Fund Balance

City of Scotts Valley
Changes in Total Fund Balance
For the month ended May 31, 2026
Equity
Fund Description
Beginning Fund
Balance
07/01/2025
Increase /
(Decrease) JulyApril
Current Period
Revenue
Current Period
Expenditure
Fund Balance as
of 05/31/2026
General Fund
1 General Fund 3,258,974 741,852 2,658,168 (1,248,671) 5,410,323 6 Equipment Replacement Reserve 960,604 17,496 8,056 - 986,156 Recreation Funds (4, 28, 123) (92,151) (378,559) 63,451 (82,781) (490,040) Subtotal General Funds 4,035,277 380,789 2,729,675 (1,331,452) 5,906,440 General Capital Improvement Fund
150 Major Capital Projects 841,873 (2,496,649) - (13,806) (1,668,582) 151 Capital Outlay Projects 6,589 (306,972) - - (300,383) Subtotal Capital Improvement Fund 848,462 (2,803,621) - (13,806) (1,968,965) Special Revenue Fund - Development Impact Fees
7 Drainage Construction Impact Fees 143,947 (4,671) 20,568 - 159,844 8 Traffic Impact Mitigation Fees 1,176,836 62,367 1,206,174 - 2,445,377 9 Park & Recreation Facilities Impact Fees 1,786,209 101,517 - - 1,887,726 21 General Facility Impact Fees 6,202 2,204 3,523 - 11,929 27 Police Facility Building Impact Fees 410,308 17,147 73,367 - 500,822 86 Library Impact Fees 213,991 10,852 - - 224,843
Subtotal Special Revenue Funds - Development Impact F 3,737,494 189,416 1,303,632 - 5,230,542 Special Revenue Fund
2 Recycling/Environment 198,335 (87,488) 248,942 (11,472) 348,317 3 Gas Tax 1,173,854 288,043 25,424 - 1,487,321
5 SMIP Fees 5,722 (2,614) 8,801 - 11,909
17 Home Grant Program 511,064 3,379 - (3,500) 510,943
19 Affordable Housing 4,546,602 (477,304) - (22,698) 4,046,600 24 Lennar Funds 621,150 - - - 621,150
31 STP Exchange Projects - - - - -
33 Tree Replacement 55,416 2,120 - - 57,536
35 Green Building Funding 624,993 51,402 1,169 (202) 677,362 36 Disability Compliance 25,919 3,330 108 (11) 29,346
50 Pinewood Estates Maint. Dist. 222 613 - (1,397) (562) 51 Mt. Hermon Traffic Mitigation 162,706 4,951 - - 167,657 77 Skypark Landscape Maint. Dist. (3,988) (1,821) - (2,364) (8,173) 78 Skypark Landscape Maint. Dist. Insurance 562,869 17,127 - - 579,996 88 Library Improvements (Measure S) 140 22,423 - - 22,563 89 Library - Cty MOE Excess Distribution 647,062 17,684 - - 664,746 115 Section 115 Set Aside - Pension 2,270,164 169,904 34,688 (883) 2,473,873 155 Measure D Sales Tax for Transportation 1,032,320 253,768 24,277 - 1,310,365 156 SB-1 (RMRA) 1,149,812 286,657 30,598 - 1,467,067
200 Quimby Act 204,508 6,223 - - 210,731
201 Measure Q - 101,106 90,263 - 191,369
306 Supplemental Law Enforcement Services 156,585 125,236 - (22,323) 259,498 313 Youth Focused Programs 51,173 (387) - - 50,786
317 Community And Economic Grants 472,689 14,383 - - 487,072 Subtotal Special Revenue Funds - Other 14,469,318 798,735 464,270 (64,850) 15,667,473 Debt Service
66 Debt Service 1,069,878 (300,000) - - 769,878
Subtotal Debt Service Funds 1,069,878 (300,000) - - 769,878 Wastewater Enterprise Fund
10 Wastewater Operations 2,324,179 2,218,705 277,725 (229,412) 4,591,197 11 Tertiary Operating (262,632) (175,798) - (49,287) (487,717) 12 Waterwater Treatment Facility Fee (DIF) 436,775 49,608 9,918 - 496,301 14 Wastewater Capital Replacement Fund 237,817 (2,213,225) - (136,046) (2,111,454) Subtotal Wastewater Enterprise Funds 2,736,139 (120,710) 287,643 (414,745) 2,488,327 Total All Funds 26,896,567 (1,855,391) 4,785,220 (1,824,853) 28,093,694

City of Scotts Valley
Monthly Wire Payments
MAY 2026
Date Vendor Description Amount
5/1/2026 Retirees Retiree Medical May $ 46,387.52
5/4/2026 CalPERS CalPERS Pension 04/17 PR $ 63,224.69
5/6/2026 CalPERS CalPERS Health $ 154,102.41
5/12/2026 Payroll Payroll 5/15/26 $ 301,401.30
5/15/2026 PARS Payroll Deductions $ 238.67
5/15/2026 SVPOA Payroll Deductions $ 237.50
5/15/2026 LEGAL Payroll Deductions $ 1,150.00
5/15/2026 COPE Payroll Deductions $ 10.00
5/15/2026 ICMA Payroll Deductions $ 13,452.02
5/15/2026 Health Equity (FSA) Payroll Deductions $ 1,312.51 5/15/2026 Fallen Officer Payroll Deductions $ 5.00
5/15/2026 Bank of America Bank Fees $ 1,292.35
5/15/2026 CalPERS CalPERS Pension 05/01 PR $ 65,860.65
5/26/2026 CalPERS CalPERS UAL $ 188,768.92
5/29/2026 Payroll Payroll 05/29/26 $ 293,190.91
5/29/2026 PARS Payroll Deductions $ 75.60
5/29/2026 ICMA Payroll Deductions $ 11,258.14
$ 1,141,968.19

Check Number Check Date Vendor Name Check Amount
135983 05/01/2026 A SIGN ASAP $ 137.19
135984 05/01/2026 ACC BUSINESS $ 606.78
135985 05/01/2026 ACE PORTABLE SERVICES $ 2,911.92
135986 05/01/2026 ALVAREZ IND INC CLEAN BLDG $ 4,800.00 135987 05/01/2026 BATTERIES + BULBS #314 $ 260.61
135988 05/01/2026 BAY TREE, LLC $ 4,604.58
135989 05/01/2026 BLUETRITON BRANDS INC $ 67.04
135990 05/01/2026 BRASS KEY LOCKSMITH $ 1,573.31
135991 05/01/2026 BRIAN MAILEY ELECTRIC INC. $ 1,092.04 135992 05/01/2026 BRYAN HICKS $ 1,210.51
135993 05/01/2026 CALIFORNIA BUILDING $ 202.00
135994 05/01/2026 CHUCK MAFFIA $ 598.23
135995 05/01/2026 COASTAL EVERGREEN CORP $ 500.00
135996 05/01/2026 COMCAST $ 1,154.84
135997 05/01/2026 COMMUNITY PRINTERS INC. $ 455.92
135998 05/01/2026 CSG CONSULTANTS, INC $ 15,301.75
135999 05/01/2026 DAVID HODGIN $ 873.01
136000 05/01/2026 FERGUSON ENTERPRISES, LLC #795 $ 250.65 136001 05/01/2026 FIRST ALARM $ 316.47
136002 05/01/2026 GRAINGER $ 5,378.25
136003 05/01/2026 HERC RENTALS $ 4,239.44
136004 05/01/2026 HOUSEKEYS, INC. $ 18,750.00
136005 05/01/2026 INTERSTATE SALES $ 65.76
136006 05/01/2026 INTERWEST CONSULTING GROUP $ 577.50
136007 05/01/2026 JAMES ZEHM $ 661.18
136008 05/01/2026 KENNEDY-JENKS CONSULTANTS $ 45,653.75 136009 05/01/2026 LLOYD'S TIRE SERVICE INC. $ 102.29
136010 05/01/2026 LLOYD'S TIRE SERVICE INC. $ 657.50
136011 05/01/2026 LLOYD'S TIRE SERVICE INC. $ 1,342.36
136012 05/01/2026 M-GROUP $ 5,386.50
136013 05/01/2026 MCCAMPBELL ANALYTICAL, INC. $ 304.00
136014 05/01/2026 MID VALLEY SUPPLY $ 2,517.10
136015 05/01/2026 MISSION UNIFORM SERVICE $ 1,040.35
136016 05/01/2026 MONTEREY BAY ANALYTICAL SVCS $ 3,976.40 136017 05/01/2026 MONTEREY REGIONAL $ 8,753.40
136018 05/01/2026 NORCAL RENTAL GROUP, LLC $ 4,664.45
136019 05/01/2026 O'REILLY AUTOMOTIVE,INC $ 656.60
136020 05/01/2026 OLIN CORPORATION AS SOLE $ 5,938.28
136021 05/01/2026 PACIFIC GAS & ELECTRIC CO $ 56,380.51 136022 05/01/2026 PETERSON POWER SYSTEMS, INC. $ 10,036.36 136023 05/01/2026 PHILLIP D NEUMAN $ 2,545.00
136024 05/01/2026 PRODESSE PROPERTY GROUP $ 5,378.40
136025 05/01/2026 ROD MARKELL $ 1,974.00

136026 05/01/2026 S.V. WATER DISTRICT $ 6,882.76
136027 05/01/2026 SAN LORENZO VALLEY WATER DISTR $ 311.83 136028 05/01/2026 SANTA CRUZ CO ENVIRONMENTAL $ 2,979.00 136029 05/01/2026 SCARBOROUGH LUMBER $ 3,654.60
136030 05/01/2026 SHAPE INC. $ 11,949.58
136031 05/01/2026 SOUTHLAND INDUSTRIES $ 565.00
136032 05/01/2026 SOUTHWEST VALVE & EQUIPMENT $ 18,612.03 136033 05/01/2026 STEVE SIMONOVICH $ 585.49
136034 05/01/2026 SWEDBERG ELECTRIC INC. $ 6,000.09
136035 05/01/2026 THE PIED PIPER INC. $ 152.00
136036 05/01/2026 TRITON CONSTRUCTION $ 300.00
136037 05/01/2026 WATSONVILLE DIESEL $ 200.00
136038 05/08/2026 ALVAREZ IND INC CLEAN BLDG $ 3,583.00 136039 05/08/2026 BRYAN HICKS $ 91.33
136040 05/08/2026 COASTAL EVERGREEN CORP $ 500.00
136041 05/08/2026 COMCAST $ 1,050.55
136042 05/08/2026 COUNTY OF SANTA CRUZ $ 1,628.93
136043 05/08/2026 CRYSTAL SPRINGS WATER CO $ 438.95
136044 05/08/2026 CYNTHIA S HART $ 745.50
136045 05/08/2026 DUKE'S ROOT CONTROL INC $ 10,248.88
136046 05/08/2026 DUNCAN AUTO TECH $ 2,730.34
136047 05/08/2026 FERGUSON ENTERPRISES, LLC #795 $ 3.76 136048 05/08/2026 GREENLINE LIQUID WASTE HAULER $ 3,060.00 136049 05/08/2026 HERC RENTALS $ 17.42
136050 05/08/2026 K & D LANDSCAPING, INC. $ 3,711.00
136051 05/08/2026 LLOYD'S TIRE SERVICE INC. $ 113.27
136052 05/08/2026 MAR-KEN INTERNATIONAL POLICE $ 300.00 136053 05/08/2026 MID VALLEY SUPPLY $ 577.52
136054 05/08/2026 MISSION UNIFORM SERVICE $ 139.63
136055 05/08/2026 MONTEREY BAY ANALYTICAL SVCS $ 2,237.00 136056 05/08/2026 MP EXPRESS, INC. $ 104.62
136057 05/08/2026 NORCAL RENTAL GROUP, LLC $ 69.97
136058 05/08/2026 NORTH BAY FORD-LINCOLN- $ 1,993.96
136059 05/08/2026 PACIFIC GAS & ELECTRIC CO $ 153.30
136060 05/08/2026 PHILLIP D NEUMAN $ 30,154.67
136061 05/08/2026 PRESS BANNER $ 607.20
136062 05/08/2026 PURETEC INDUSTRIAL WATER $ 64.44
136063 05/08/2026 RALEY'S $ 53.56
136064 05/08/2026 SANTA CRUZ FIRE EQUIPMENT $ 1,519.53
136065 05/08/2026 SCARBOROUGH LUMBER $ 678.54
136066 05/08/2026 SCOTTS VALLEY SPRINKLER $ 57.02
136067 05/08/2026 STANDARD INSURANCE COMPANY $ 1,023.10 136068 05/08/2026 STEPHANIE SANCHEZ $ 500.00
136069 05/08/2026 STRATEGIC GOVERNMENT RESOURCES $ 4,547.50

136070 05/08/2026 WIZIX TECHNOLOGY GROUP, INC $ 193.49
136071 05/18/2026 ACCENT CLEAN & SWEEP INC $ 5,478.00
136072 05/18/2026 AMAZON CAPITAL SERVICES $ 1,834.48
136073 05/18/2026 AT&T $ 8.91
136074 05/18/2026 AT&T $ 3,149.09
136075 05/18/2026 AUTO CARE LIFESAVER TOWING $ 5,300.00 136076 05/18/2026 AXON ENTERPRISE, INC $ 17.99
136077 05/18/2026 COMCAST $ 323.29
136078 05/18/2026 DEPT OF JUSTICE $ 64.00
136079 05/18/2026 DOCTORS ON DUTY $ 120.00
136080 05/18/2026 ENVIRONMENTAL INNOVATIONS $ 7,441.99
136081 05/18/2026 KOSMONT COMPANIES, INC $ 1,518.75
136082 05/18/2026 LOGAN & POWELL, LLP $ 973.50
136083 05/18/2026 MONTEREY REGIONAL $ 10,602.00
136084 05/18/2026 NATIONAL COMTEL NETWORK INC. $ 12.31
136085 05/18/2026 PHILLIP D NEUMAN $ 7,700.25
136086 05/18/2026 S.V. WATER DISTRICT - BULK $ 113.60
136087 05/18/2026 SCARBOROUGH LUMBER $ 7.67
136088 05/18/2026 SCOTTS VALLEY CAR WASH $ 290.83
136089 05/18/2026 SHELTON ROOFING $ 1,000.00
136090 05/18/2026 STERICYCLE INC $ 300.63
136091 05/18/2026 THOMSON REUTERS-WEST $ 416.30
136092 05/18/2026 U.S. POSTMASTER $ 370.00
136093 05/19/2026 AXON ENTERPRISE, INC $ 22,305.41
136094 05/19/2026 OFFICE OF THE ATTORNEY GENERAL $ 625.00 136095 05/19/2026 VISIT SANTA CRUZ COUNTY $ 30,505.91
136096 05/22/2026 A SIGN ASAP $ 245.29
136097 05/22/2026 ACC BUSINESS $ 1,838.87
136098 05/22/2026 ACE PORTABLE SERVICES $ 1,938.64
136099 05/22/2026 ACME PAINT COMPANY LLC $ 9,243.00
136100 05/22/2026 ADAMS ASHBY GROUP, INC $ 3,500.00
136101 05/22/2026 ALVAREZ IND INC CLEAN BLDG $ 451.00
136102 05/22/2026 ARIELLA LAVER $ 55.80
136103 05/22/2026 AT&T $ 56.24
136104 05/22/2026 AT&T MOBILITY $ 1,868.22
136105 05/22/2026 BATTERIES + BULBS #314 $ 16.41
136106 05/22/2026 BLUETRITON BRANDS INC $ 58.35
136107 05/22/2026 BRASS KEY LOCKSMITH $ 4,084.79
136108 05/22/2026 CAL-WEST LIGHTING & SIGNAL INC $ 3,476.02 136109 05/22/2026 CITY OF SANTA CRUZ $ 690.00
136110 05/22/2026 COMCAST $ 454.39
136111 05/22/2026 COMMUNITY PRINTERS INC. $ 1,189.94
136112 05/22/2026 DAWN BANKS $ 312.00
136113 05/22/2026 DEPT OF JUSTICE $ 32.00

136114 05/22/2026 DEPT OF TRANSPORTATION $ 6,101.06
136115 05/22/2026 ENTERPRISE FM TRUST $ 13,153.27
136116 05/22/2026 EWING IRRIGATION PRODUCTS $ 2,147.62
136117 05/22/2026 FEDERAL EXPRESS $ 87.83
136118 05/22/2026 GLADWELL GOVERNMENTAL SVCS INC $ 500.00 136119 05/22/2026 GOOD CITY COMPANY $ 2,150.00
136120 05/22/2026 GRAINGER $ 2,473.74
136121 05/22/2026 GREENLINE LIQUID WASTE HAULER $ 2,347.50 136122 05/22/2026 HACH COMPANY $ 3,886.89
136123 05/22/2026 INTERSTATE SALES $ 255.71
136124 05/22/2026 JWC ENVIRONMENTAL INC $ 72,442.11
136125 05/22/2026 KALANI STONE $ 632.30
136126 05/22/2026 KOSMONT COMPANIES, INC $ 5,224.51
136127 05/22/2026 LIEBERT CASSIDY WHITMORE $ 1,364.50
136128 05/22/2026 LOGAN & POWELL, LLP $ 28,117.11
136129 05/22/2026 MAR-KEN INTERNATIONAL POLICE $ 300.00 136130 05/22/2026 MARY LOUISE DEFALCO $ 45.00
136131 05/22/2026 MID VALLEY SUPPLY $ 530.78
136132 05/22/2026 MISSION UNIFORM SERVICE $ 410.50
136133 05/22/2026 MONTEREY BAY ANALYTICAL SVCS $ 1,684.00 136134 05/22/2026 NATIONAL COMTEL NETWORK INC. $ 13.07
136135 05/22/2026 NIGEL CUNLIFFE $ 168.20
136136 05/22/2026 O'REILLY AUTOMOTIVE,INC $ 57.04
136137 05/22/2026 OLIN CORPORATION AS SOLE $ 5,782.97
136138 05/22/2026 PACIFIC GAS & ELECTRIC CO $ 1,107.69
136139 05/22/2026 PEDRO CORTE $ 1,050.00
136140 05/22/2026 PHILLIP D NEUMAN $ 10,171.34
136141 05/22/2026 PHOENIX GROUP $ 307.08
136142 05/22/2026 SCARBOROUGH LUMBER $ 1,071.50
136143 05/22/2026 SCOTTS VALLEY CAR WASH $ 53.97
136144 05/22/2026 SCOTTS VALLEY SPRINKLER $ 98.76
136145 05/22/2026 SHARRON BARTH $ 72.00
136146 05/22/2026 SOUTHWEST VALVE & EQUIPMENT $ 8,625.00 136147 05/22/2026 STRATEGIC GOVERNMENT RESOURCES $ 5,100.00 136148 05/22/2026 SUMMIT UNIFORMS $ 2,928.20
136149 05/22/2026 SUPERIOR ALARM COMPANY $ 350.00
136150 05/22/2026 THE PIED PIPER INC. $ 152.00
136151 05/22/2026 TORO PETROLEUM CORP $ 8,552.11
136152 05/22/2026 U.S. BANK CORPORATE $ 21,310.16
136153 05/22/2026 WENDI KRAMERPUGH $ 857.76
136154 05/22/2026 WEX BANK $ 11,298.37
136155 05/22/2026 WVP of California PC $ 257.14
136156 05/22/2026 YOGA FOR ALL MOVEMENT $ 127.20
136157 05/29/2026 ARIELLA LAVER $ 82.80

136158 05/29/2026 ASSOCIATED SERVICES CO. $ 133.48
136159 05/29/2026 AT&T $ 1,795.47
136160 05/29/2026 BATTERIES + BULBS #314 $ 12.02
136161 05/29/2026 BAY TREE, LLC $ 4,604.58
136162 05/29/2026 BRIAN MAILEY ELECTRIC INC. $ 3,256.67 136163 05/29/2026 CALED $ 1,500.00
136164 05/29/2026 CHAD PRICE $ 1,540.00
136165 05/29/2026 CHAD PRICE $ 200.00
136166 05/29/2026 COMCAST $ 808.94
136167 05/29/2026 COMMUNITY TREE SERVICE, INC. $ 2,850.00 136168 05/29/2026 DARSHANA CROSKREY $ 65.41
136169 05/29/2026 DKF SOLUTIONS GROUP LLC $ 2,340.00
136170 05/29/2026 DOCUSIGN INC LOCKBOX $ 5,000.00
136171 05/29/2026 GRAINGER $ 297.44
136172 05/29/2026 HOSE SHOP $ 160.77
136173 05/29/2026 KATI KING $ 673.07
136174 05/29/2026 LEAF CAPITAL FUNDING LLC $ 887.19
136175 05/29/2026 MADISON LIQUIDATORS LLC $ 4,310.65
136176 05/29/2026 MONTEREY BAY ANALYTICAL SVCS $ 1,095.00 136177 05/29/2026 MP EXPRESS, INC. $ 150.05
136178 05/29/2026 NATURAL MOTIONS LLC $ 9,062.02
136179 05/29/2026 PERFECTMIND INC $ 3,000.00
136180 05/29/2026 PITNEY BOWES INC $ 123.87
136181 05/29/2026 PRODESSE PROPERTY GROUP $ 5,378.40
136182 05/29/2026 PURETEC INDUSTRIAL WATER $ 308.76
136183 05/29/2026 ROD MARKELL $ 1,974.00
136184 05/29/2026 S.V. WATER DISTRICT $ 6,597.16
136185 05/29/2026 SAN LORENZO VALLEY WATER DISTR $ 75.23 136186 05/29/2026 SANTA CRUZ MOTORCYCLE SERVICE $ 236.66 136187 05/29/2026 SCARBOROUGH LUMBER $ 597.15
136188 05/29/2026 SCOTTS VALLEY SPRINKLER $ 208.49
136189 05/29/2026 STRATEGIC CULTURE CORP $ 21,820.71
136190 05/29/2026 SUMMIT UNIFORMS $ 1,507.19
136191 05/29/2026 SYCAL ENGINEERING INC $ 1,260.35
136192 05/29/2026 VERDE DESIGN $ 13,805.98
136193 05/29/2026 WATSONVILLE DIESEL $ 400.00
136194 05/29/2026 WEX BANK $ 23,648.89
136195 05/29/2026 WVP of California PC $ 119.21
$ 824,231.06

AGENDA ITEM 5.

DATE: 8/19/2026
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 8/19/2026
TO: Honorable Mayor and City Council
FROM: Kendra Reed, Finance Manager
APPROVED: Mali LaGoe, City Manager
SUBJECT: Annual Surplus Property Report – Fiscal Year 2025/26

SUMMARY OF ISSUE
The City’s administrative procedures establish the process for identifying and disposing of surplus City property, including supplies, materials, and equipment that are no longer needed, have become obsolete, or are otherwise no longer usable. Under these procedures, the City Manager is authorized to declare City property as surplus and approve its disposition through sale, exchange, trade, donation, recycling, disposal, or other appropriate means.

As part of this process, an annual report is presented to the City Council each August summarizing surplus property activity authorized by the City Manager during the preceding fiscal year. It does not include items that were publicly declared surplus by Council. The report provides transparency regarding the City’s disposition of surplus property, including the responsible department, property description, disposition method, and proceeds received, where applicable.

During Fiscal Year 2025/26, the City disposed of the following surplus property:

Department Property
Description
Category Qty Disposition
Method
Date
Disposed
Net
Proceeds
Public
Works
2015 Ford
F-250
Vehicles &
Mobile
Equipment
1 Public/Online
Auction
02/19/2026 $2,000.00
Public
Works
2016 Ford
F-250
Vehicles &
Mobile
Equipment
1 Public/Online
Auction
02/19/2026 $7,501.00
Public
Works
2017 Ford
Explorer
Vehicles &
Mobile
Equipment
1 Public/Online
Auction
02/19/2026 $2,500.00
Police 2002 Vehicles & 1 Public/Online 11/07/2025 $101.00

The City received $12,612.00 in net proceeds from the disposition of surplus property during Fiscal Year 2025/26.

OUTSTANDING SURPLUS PROPERTY
As of June 30, 2026, the following surplus property had been identified but not yet disposed of:

Any property
remaining
pending
disposition will
be included in the City's surplus property records and reported in the subsequent annual report upon disposition.

Department Kawasaki
KZ10000
Mobile
Equipment
Auction
Police
Department
1995 Honda
ATV
Vehicles &
Mobile
Equipment
1 Public/Online
Auction
11/07/2025 $510.00
Department Property
Description
Category Estimated
Value
Status
Public
Works
Dump Truck Vehicles & Mobile
Equipment
$10,000.00 Pending
Auction

FISCAL IMPACT
The disposition of surplus property during Fiscal Year 2025/26 resulted in net proceeds of $12,612. Proceeds were deposited into the appropriate City fund in accordance with applicable accounting procedures.

STAFF RECOMMENDATION
Staff recommends that the City Council receive and file the Annual Surplus Property Report for Fiscal Year 2025/26.

TABLE OF CONTENTS
None

AGENDA ITEM 1.

DATE: 8/19/2026
City of Scotts Valley

CITY COUNCIL STAFF REPORT
DATE: 8/19/2026
TO: Honorable Mayor and City Council
FROM: Allison Pfefferkorn, Recreation Division Manager
APPROVED: Mali LaGoe, City Manager
SUBJECT: Approval of rental fee of the Community Room

SUMMARY OF ISSUE
The City intends to make the Community Meeting Room, located in the Community Center Office Building, available for public rentals. Establishing an hourly rental fee will allow individuals, community organizations, and other groups to reserve the room for small meetings, classes, workshops, and similar activities. Staff recommends establishing a rental rate of $22 per hour, with a minimum rental period of two hours. Pursuant to Scotts Valley Municipal Code 3.40.050, the City Council is required to hold a public hearing prior to establishing any new fees.

The Community Meeting Room is a small meeting space suitable for a variety of small group community uses. The room’s maximum capacity varies depending on the setup:
• 12 people with tables
• 20 people in a classroom-style setup
• 25 people in an assembly-style setup
Making the room available for public rental will provide an additional affordable meeting space for small groups.

The proposed hourly rate is intended to help offset costs associated with utilities, routine cleaning, and general wear and tear resulting from public use. Once established, the Community Meeting Room rental fee will be incorporated into the City’s Fees and Charges Schedule and included in future periodic reviews of City user fees and charges.

Rental availability would be subject to City programming, facility hours, and all rental policies and procedures.

Renters would be responsible for complying with room-capacity limits, leaving the room in its original condition, and following all City facility-use requirements. Additional fees may apply if the room requires excessive cleaning or if damage occurs during a rental.

FISCAL IMPACT
Revenue collected from Community Meeting Room rentals will help offset cleaning, maintenance, utilities, and other facility-related expenses associated with public use of the room. The applicable administrative fee will help offset costs associated with processing and administering rental reservations.

STAFF RECOMMENDATION
Staff recommends that the City Council hold a public hearing regarding the proposed new fee and then approve Resolution 1198.82 for a rental fee of $22 per hour, with a two-hour minimum, for public use of the Community Meeting Room located in the Community Center Office Building.

TABLE OF CONTENTS

1. Resolution 1198.82 User Fees and Charges 8.19.2026

RESOLUTION NO. 1198.82

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCOTTS VALLEY

APPROVING A NEW RECREATION USER FEE AND CHARGE FOR THE

COMMUNITY CENTER MEETING ROOM
FOR AUGUST 19, 2026
WHEREAS, Resolution No. 1198.10 establishing a schedule of fees and charges (“Fees and Charges Schedule”) for city services was adopted by the City Council of the City of Scotts Valley on June 6, 1990; and
WHEREAS, the City Council has amended the Fees and Charges Schedule for city service by resolution from time to time since its original adoption; and WHEREAS, the City desires to make the Community Meeting Room located in the Community Center Office Building available for public rental; and WHEREAS, pursuant to Section 3.40.040(a) of the Scotts Valley Municipal Code, rates of fees and charges to be charged and collected in order to recover the percentage of costs reasonably borne in providing services shall be set by resolution; and WHEREAS, the proposed rental fee is intended to help offset costs associated with utilities, routine cleaning, maintenance, and general wear and tear resulting from public use of the Community Meeting Room; and
WHEREAS, notice of time and place of public hearing, including a general explanation of the matter to be considered, has been provided in compliance with the provisions of that ordinance; and
WHEREAS, the City Council has held a public hearing concerning the adoption of the proposed changes to the Fees and Charges Schedule that is proposed to go into effect August 29, 2026.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED as follows:

1. Community Meeting Room Rental Fee. The following rental fees are hereby established for public use of the Community Meeting Room located in the Community Center Office Building:
a. Hourly rate: $22 per hour
b. Minimum rental period: 2-hours

c. Applicable Discount provisions apply:
i. a. Residents may receive a fifteen percent (15%) discount, where applicable. Proof of Scotts Valley residency is required. ii. b. Nonprofit organizations may receive a twenty-five percent (25%) discount, where applicable. Proof of nonprofit status in a form accepted by City staff is required.
iii. c. Multiple discounts may not be combined.
iv. d. Discounts do not apply to instructor-led or pay-to-participate programs.
d. Administrative Fee: $9 per reservation
i. For purposes of the Administrative Fee, the Community Meeting Room is classified as a classroom and is subject to the Class/Classroom administrative fee already established.

2. The Community Meeting Room rental fees established by this Resolution are hereby incorporated into the City’s Fees and Charges Schedule.

3. This Resolution shall take effect ten (10) days following its adoption, on August 29, 2026.

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 19th day of August, 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Approved: ____________________________
Donna Lind, Mayor
Attest: ___________________________
Cathie Simonovich, City Clerk