 June the 23rd, 2022, and before we begin, I'd like to ask our clerk to make an announcement. Thank you Mayor Story. In accordance with California Senate Bill 361, this meeting is not physically open to the public. Council and staff are meeting via Zoom and there are several ways for the public to watch and participate. Information on how to join the meeting using Zoom or a landline or mobile phone, along with how to submit public comment during the meeting tonight, is available on our website cityofpapasola.org and on the published meeting agenda. The public can also live stream the meeting on our website and on YouTube. And as always, the meeting is Cablecast Live on Charter Communications Cable TV Channel 8. Then it's being recorded to be rebroadcast on the following Wednesday at 8am and on Saturday following the first rebroadcast at 1pm on Charter Channel 71 and Comcast Channel 25. Our technician this evening is Walter and he's also joined by I believe Eric, so thank you both for being here. Thank you Mayor Story. Thank you Chloe, and I also want to extend my thanks to Walter and Eric for being our technicians this evening. And next let's go to a roll call. We're trans. I'm here. Council Member Brooks. Here. Council Member Brown. President. Vice Mayor Keiser. Here. Mayor Story. Here. Thank you. Next I'd like to ask Council Member Brooks if she'd lead us in the Pledge of Allegiance. I pledge allegiance to the flag of the United States of America and to the Republic for which stands one nation under God indivisible with liberty and justice for all. Thank you. Do we have any additions of deletions to the agenda? Staff has no changes this evening. We'll now move on to item three which is presentations and this evening. We have a presentation to recognize July 2022 as parks and recreation make life better month. You know, it's my pleasure to make this proclamation and this is a fitting time since the summer activity is upon us and our junior guards are busy on the beach. And our parks and particularly J Street Park is filled with players, softball players and basketball players and as well as Monterey Park. And so to make this proclamation, I want to recognize that that the parks and recreational department or for the city of Capitola creates experiences for youth sports and enrichment activities of teen centers and programs. Which help vitalize our community. And the our city of Capitola recreation department is dedicated to promoting physical emotional and mental health and wellness for all those programs designed around fitness, creativity, play and activity. Our parks are an important and integral part of our community by enriching our connections with one another. And with nature. The parks and recreational department foster social cohesiveness in our community. The department offers an after school rec club for students who attend Main Street so Carol elementary and new bride. And those are from the first grade through middle school able to enroll in that program. And the parks and rec strengthens our community identity by providing facilities that is our J Street Park community center. They support recreational activities which make our lives better in many ways. I want to acknowledge that the recreational department has 51 instructors and staff who offer nearly 100 different classes and other programming, including the cap Capitola junior guards, all the classes and events and rentals and sports equipment. California parks and recs has released a statewide public awareness campaign called parts make life better. Registering trademark and informed citizens of the many benefits of utilizing parts facilities and programs, and therefore I Sam story as the mayor of the city of Capitola here. I would like to now be the plane. July 2022 as parts and recreational make life better month and encourage all citizens of the city of Capitola to join me in this service. Thank you is. Nikki, did you want to see a few words. Hi, yes, thank you for your story. My honor to do that. Yes, thank you very much. Good evening. Council. So, thank you very much for the proclamation as a park and recreation professional. I'm excited to share with you at the activities that residents can expect. We have on July 1. We're going to have a community kickball. So anybody is welcome. Bring family all ages to jade street park at 5pm. And we will organize just a fun recreational kickball game. We also are offering on July 6 a family swim or junior guard families or any other families that are interested in coming and swimming around the wharf. We're going to have that activity. And I believe that the team total parents club is also going to help organize a few activities on the beach before that as well. On July 15, we will have a food truck event in Monterey park. Those operate from 430 to 730. So please come out and enjoy that if you are available. And then there are lots of residents that might be interested in classes, but they're not quite ready to commit to series. And so for the week, the third week of July, which is July 17 to the 23rd. We're also offering try it classes. So these are one time classes that if you're interested in just trying it out, maybe you've seen it in the catalog. And you want to learn a little bit more about it without the full commitment. This is that opportunity. So please check out our website in our catalog for any try it classes. And finally, we are in part of the county wide partnership with other arts and recreation agencies to help host the family fun day event. And this July, it is happening on Saturday, July 30 at Ramsey's Park in Watsonville. I said this is the county wide collective. So you'll find all parts of recreation agencies at this event. Everybody is welcome. Please go out find your park. Find any in any of our other county or other cities in our county also have lots of events that are available for community members. Thank you. Maybe it sounds like a lot of fun activities plan for this summer. I particularly like the community kickball idea I don't think I played kickball since I was in grade school, maybe I can get the council members to form a team, if that doesn't violate the brown that in some way. The try it classes that that's a wonderful idea to get people out who maybe aren't ready to commit but just want to check things out and see how it feels. So thank you for all that I just wanted to check the other council members have any comments. Yeah, council member Bertrand. Well, I remember my favorite sport in high and grammar school was dodgeball. So we had a lot of fun doing that. Of course I always got hit a lot. But I don't know why they always threw the ball at me but anyway, maybe softball and dodgeball next year. Okay, any other comments or questions from council members. Seeing none, I'm going to now move on to item four, which is about any additional materials for this evening's meeting. Yes, Mayor story one additional material was received regarding item eight, see the potential second home tax. Okay. All right, thank you for that. Next is oral communications. This is an opportunity for members of the public to address the council on items that are not on tonight's agenda, or items that are on tonight's consent agenda. If you would like to make a public comment, you can raise your hand and zoom or dial star nine, the moderator will give you up to three minutes to speak. You can also send an email to public comments at ci.capitola.ca.us and I see one hand up Larry, maybe we could. Can you, can you hear me Mr. stop. Yes. Can you hear me. Yes, we can. Yes, very well, go ahead. Okay. I live on Diamond Street. And I've been taking exception to the parking situation. We've had lots of parking spaces here. So, oh my goodness, the screen changed. I'll keep talking anyway. Initially in January, the parking enforcement came through and issued tickets saying they couldn't park the way. 25 30 years or so which is nose in which works well in the areas that were designed for it. I thought that this at the time was maybe a, like a fraternity prank pulled on the parking cadets who by the way were pretty good they were polite and firm and so forth. We're told to go out and issue silly tickets, but no, it's turned and then I thought maybe they're trying to raise money, but no, that's not it. Finally, it took a long time after talking to Chief Daly and talking to John that there's a problem over on Ruby Court. Ruby Court had problems with nose in parking. And they really did have a problem because it's narrower. Ruby Court is 32 feet wide and the part that's the street and then the cul-de-sac area is only 71 feet. Also, they have problems with people coming over, employees coming over from businesses on 41st Avenue encouraged by their employers to park there instead of in the parking lot and the business in order to leave more room for the customers. So Ruby Court is jammed and anybody who comes in the Ruby Court, who live in their park there, they have to try to negotiate the cul-de-sac at the end. There's just no way around it. And if there's some of these big vehicles parked up in there with the rear end sticking out, it's hard. I can see why they would do that. Okay, no nose in parking for Ruby Court, no problem with that. However, when I talked to Chief Daly, he thought that if they had those restricted nose in parking for Ruby Court, then they would also have to respect it for Diamond Street. Diamond Street is a completely different street. It's not a cul-de-sac. It comes on through, it winds on out. And these cut out areas are so big that down in the southern end, you can park two or three dump trucks in there and it knows in and it still would not affect anything on the street. So what I'd like to point out is that what happens in Ruby Court stays in Ruby Court. It shouldn't be affecting Diamond Street. So what I have done, I was told by both Jock, you suggested that I get a group going and talk to the HOA. Sarah Ryan suggested I talk to the HOA. I tried three times as well as trying to communicate with them, just like we're communicating how. And also Chief Daly thought I should form some kind of a thing. Well, I'm not a real sociable person. I think I'm going around and trying to organize people just seem like a bad idea. But I did it. So far, I've got a petition going. 30 signatures to gain back our parking spaces on Diamond Street. And there's a couple of gentlemen down at the other end of the street who are also circulating the positions, the petition. So we're going to get this done. We're going to have this happening. Now, what I would ask of you is to simply. Yeah, let's just start. I just, I'm going to give you one more minute. Okay, to sum up. Did you three minutes are up so. Okay, I can do this in one minute. What I'm asking is just reconsideration of this restriction on Diamond Street because, because it's half because there's a problem Ruby Court Ruby Court is not our problem. They have my sympathy. And so I tend to mail you a package. Everybody on the council. Chief Daly. Sarah Ryan, the engineer that has satellite photos of all of these things concerned with the measurements of the streets. The couple of pages of commentary, and then copies of all of the petition signers. And I hope they'll get there in a few days and I please hope that you consider it. Thank you. Oh, my God. Thank you, Mr. Stotz. And particularly for bringing that issue to our attention and for your advocacy. I can show you when we receive your package of materials that each of council members will review it and seriously consider it. So thank you for that. Are there any other attendees that would like to speak on public comment. Yes, hello. Thank you for hearing my comment. I just wanted to note that I'm really missing the decorations along Capitola median. I'm just wondering when that's going to be taken up by the council terms of bringing them back. I think during this time of pandemic and the last couple of years, those decorations for all the different events. All year long, brought joy to people as they were driving by. And I think it would be a nice thing for them to come back. Thank you for listening to me. All right, thank you, miss Locke for making that request, bringing that to our attention. And I can show you we will look into that with staff and have a response for you. Are there any other comments. Okay. See none. I'm going to now move on to other staff and city council comments. Let's start with staff comments. Staff has no comments for this evening. Okay. Council members have comments. Seeing none. I would just like to report back on the first twilight concert, which happened on June 15. And it was a well attended event and but what I just wanted to report out about and one thing I noticed and which is actually very wonderful work. The numbers of people who rode their bicycles and their electric bicycles down to the concert and the Esplanade. And there were bicycles, you know, just parked everywhere. They were all around the showers. And as well around the large palm tree, they were parked all around that. I think I raised that point because I think it is going to be, I think something that we should keep our eye on. And that we should think about providing bike parking infrastructure. And the Esplanade and so to accommodate all those bicycles and which would encourage more people to ride their bicycles down there. I know that there are plans for the parklets for some bike parking, but I'm not sure if those would be sufficient, but I just wanted to bring that to, you know, I think staff and councils to keep their attention. Just to watch that as that kind of, I anticipate will grow and evolve as the bicycles and particularly electric bicycles become more popular. So that's, that's my comment for the evening. Next we'll come to the consent items. There are some items that will be handled in one vote, unless the council member wishes to pull an item for clarification or further discussion. Is there a request to pull a consent agenda item. Yes, council member. Um, may I make a comment about one of the items, but not pull it. Yeah, if it's, if it's very, I think quick, why don't you go ahead and make a comment and we won't separately agenda. Thank you very much. So I was reading the BIA report. And I just want to comment on the fact that the BIA is working with the city probably streets department. And, you know, for beautification cleanup and stuff like that. So I commend the BIA. Thank you for that. Cooperation with the city. Thank you. Okay. Are there any other requests to pull a consent agenda item? If not, I'll entertain a motion on the consent calendar. I'll move approval of consent. Second. We have a motion by council member Brown and a second by council member with Tran. Maybe we have a roll call vote please. Council member for Tran. I approve. Council member Brooke. Council member Brown. Yeah. Vice mayor Kaiser. I see your story. Hi. Thank you. Consent calendar passes unanimously, which will bring us to the general public hearings for this evening. Um, um, council member, return. Did you still have your hand up there? Sorry. I was scrolling on the agenda and I made a comment that I should not have made. I'm sorry. I recognize that, but I was just going to let it go by. Okay, what am I talking about? It's not even discussed yet. You can maybe mention it again later. Yes, Jamie. Before we move on to item 8A, I noticed that the BIA representatives are not on the call at this time. So I just want to toss out that you may want to reorder item 8A and take it later in the evening and maybe start with 8B. Council's discretion, though. On that, are we expecting representatives from the BIA to be in attendance? Did they let you know that they were going to be here? My understanding is we do, but I find us directors on the call and he can chime in. Okay, is there... No, yeah. Go ahead, Jim. Our senior accountant, Mark Sullivan, has been in communication with them through the whole process. I'm guessing that they just forgot it was a six-block start time, but traditionally they're here and available for questions. Let's see, is there... Going back, is there maybe a motion by the council to defer this item until later in the agenda? Yeah, I'd like to make a motion to defer the item later in the agenda so that we can ensure that the BIA representatives are present and able to make comment. I agree. Okay, we have a motion and second to move this item. Since some, maybe move it just before the current item D. Let's see if we'll revisit it at that time. Next we will move on to item B, which is the Coastal Commission recommendations, recommended modifications to capital as outdoor dining ordinance. The recommended action is to adopt the resolution accepting the California Coastal Commission's modifications to repeal and replace capital and municipal code section 17.96.170 outdoor dining in public right away and amend municipal code section 17.44.150B3 and 17.120.030. We have a staff report, please. Yes, let me jump in. I have to recuse myself to my employment at Paradise Beach Group. I'll be back. Okay, good evening, Mayor Story and council. Tonight I have a presentation on the certification of our outdoor dining ordinance. So prior to any zoning code or LCP section of code taking effect, the Coastal Commission is required to certify our ordinances. And tonight that is the focus of the motion. I'm just gonna quickly go over the history back in the spring of 2020, the city council adopted an emergency temporary outdoor use permits due to the pandemic. In one year later in April, the city council directed staff to develop a permanent outdoor dining program. So since that time we've been working towards our permanent outdoor dining program. Planning commission review and recommendation had happened in October and November of 2021. Their recommendation was to slow down and maybe do the prototype first and then move forward with the ordinance. In December of 2021, we gave two options to the city council. City council directed us to move forward with the ordinance and at the same time move forward with our prototype design, which we've been working through. In January of 2020, I submitted our LCP amendment to the Coastal Commission and we worked closely with their staff for months and in June, a couple of weeks back, the Coastal Commission provided a conditional certification. So they put conditions on our ordinance that they would like to see incorporated into the ordinance. Just a quick overview of the program components. We have maximum number of parking spaces. As Mayor Story just mentioned, we also have two required bicycle parking spaces, sound requirements, signs, materials, activation requirements, stormwater, utilities, maintenance, we have specific locations for sidewalk dining and street dining. And then we also have an administrative policy which really outlines the city's oversight of these spaces as it is the city property being leased to the businesses. And I'm happy to go back and answer any questions about this later, but I didn't wanna go through every aspect of the ordinance at this point because it's probably the fourth time or more that you've seen these presentations. So today we're really focused on the Coastal Commission modifications. Their staff asked for two modifications. The first which aligns with the city council I'd asked for originally. The city council, we wanted to do the first leases for three years and then check in and review how the program's going, make sure we don't need to amend it. When it got, we didn't put anything specific in our ordinance about that. It was in our policy document. When it got to the Coastal Commission, they asked that we put this in our ordinance and then require that review to happen on a five-year basis thereafter. So we'll be coming to the city council after three years of the program being in place and we'll be doing a review of the entire program. So every restaurant that gets issued one of these permits will give you an update on who's been in compliance, if there's any issues. The Coastal Commission's very interested to make sure that there's no impacts to our coastal resources and access. So we'll be reviewing that as well. And then once we give the city council the update they'll have the option to either recertify, amend or revoke the CDP or they can revoke the entire program at that point if it's been problematic. And then, so that really aligns with I think where the city council had directed us originally. And second, they asked, we went through a back and forth. At first they, you'll recall that we had a 50% dedication of the lease revenue that would go towards coastal access. When we first submitted our LCP update they asked us to switch that to 100%. So all of the fees that are collected for parking they wanted to have go towards coastal access. In your staff report as an attachment I provided a summary of all the, our city goes above and beyond when it comes to coastal access and recreation. And they, when they saw our list of everything we're doing our great recreation program or lifeguards or future wharf update they said, you know what, you're right. You guys are doing a great job. We're not gonna have oversight in an area that we don't need to. And so they actually redlined that 50% dedication out. So I think that was a big win for the city. So what happens after tonight? So tonight if you adopt the two modifications that are suggested by the coastal commission on Monday I'll launch the lottery for the spaces. We had put in our administrative policy that the lot, the lottery would be available for 45 days. And I just, we've been working internally on a document, a letter that will go out to all of the restaurants in the city and that will go out on Monday. And it provides an overview of the lottery system. It has an attachment of frequently asked questions. There's a lot of details in this next step that we wanna make sure the restaurants are really clear about timing and all the details of what it means to lease, what types of permits are required. So we're really, we're gonna get out ahead of it. I'll get that out to all of you as well. So you have a copy. So we'll launch the lottery next Monday. The coastal commission concurrence meeting. So after this meeting, if we agree with if the city council says to move forward with their changes, the concurrence, there's one more meeting at coastal commission where they make it final. It becomes our certified LCP. That'll happen on July 15th. Following that, there's a meeting for the Planning Commission on July 21st when they'll review the prototype street dining deck designs. And hoping we get an approval that night so that the businesses can make a decision on whether or not they wanna use the prototype designs. We did have a meeting with the businesses recently and got feedback and our, the designer is incorporating some of the feedback from the businesses that we got. So next, the lottery will occur on August 16th. That's 45 days later. The Art & Wine Festival, that's the last big festival for the season is September 10th and 11th. So our outdoor dining, we were directed by the city council to expire the temporary outdoor dining 60 days after coastal commission certifications. That would occur on September 15th. It's two months after the coastal commission concurrence meeting. And then we would go ahead and start issuing CDPs. So for the outdoor dining. And what I've also put in this document that's gonna go out to the city is we've been working through how do we make sure that the businesses that don't wanna move forward with a permanent, in the permanent program, we'll have them remove all of that, their outdoor dining by September 15th. Anyone that's like paid their deposit, they've got their space in the lottery and they also have plans into the city. At that point on September 15th, we're gonna work with those restaurants to allow them to keep their temporary in place as long as they're working towards their permanent until such time that they get their building permit and then they can take out the temporary and start to do their construction. So that's all in the guidance document. So our recommended action tonight is to adopt a resolution accepting the California Coastal Commission modifications to repeal and replace capital and unicode section 17.96170 after a dining in the public right away and amend unicode section 17.44150B3 and 17120.030. And that concludes my presentation. I'm happy to answer any questions. Council Member Brown. Thank you. I noticed in the ordinance on P-51, there was discussion about the dining deck materials being high quality and durable and I think that's great guidance. I had some residents reach out with some concerns about some of the guidelines that they thought were gonna be in place regarding the furniture that perhaps it would only be one kind of umbrella or one kind of chair that the outdoor dining decks would be able to have. And there was concern that one, it would be cost prohibitive for some of the business owners but then also that it kind of prevents the opportunity for there to be character for each of the restaurants taking part of this. And so I didn't see anything about it in the ordinance and I know this comes back to planning commission. So I'm just wondering if that's something that the planning commission is gonna continue to provide guidance on or if that's something that hasn't really been finalized yet. So within the prototype design, it has not been finalized. So that is one of the suggestions within the prototype design that certain type of like outdoor chair. I'm not necessarily one specific design but there's many options but utilizing a high quality furniture. But they, so the planning commission will be looking at that in July for the prototype design and considering it. In terms of the custom designs, the planning commission will look at the whole design. So they'll look at when that, when somebody comes in with their custom design, they'll look at the furniture, they'll look at the umbrellas, they'll look at the whole package to ensure that it meets that requirement. So the requirement is loose enough that there's definitely design freedom there in order for them to bring forward what they'd like. And I can bring that up at the planning commission meeting that that was mentioned during this meeting. And I agree with you that options, more options are better. So in terms of, I'll bring that up. If I'm understanding correctly, then it sounds like someone can use the prototype design and the prototype design would include specific furniture that you would need to use if you just want this administrative permit. That's just done. You're gonna use this design, it's approved. If they wanted to use the prototype deck but a different kind of furniture that is included in the prototype design, then it would be considered kind of a custom. And then that just needs to be approved separately. It doesn't mean you can't have that kind of furnishings, it just means you have to have that approved separately. Am I understanding that correctly? That's correct. Okay, cool. Thank you. Council member Bertrand. Yeah, thank you very much, Mayor. Yeah, I'll just chime in on the furniture comment. So I had a comment or two on them, but we've already purchased the furniture that they didn't want to repurchase furniture. So with the clarification of Commissioner Brown, excuse me, Councilperson Brown, then that should be attended at that time. So Ms. Hurley, you mentioned that you've met with the merchants and a couple of comments I've had is about the cost. Has that been nailed down? And what was your general response? You said they gave suggestions, which means they're probably thinking about it and they're not against it. So I'm just trying to get an idea what they think generally, if you want to characterize that. Yeah, we got quite a few comments actually about the furniture and the umbrellas and the other comment that, I have a list of comments, and I'm sorry they weren't in my presentation this evening, but one comment in particular was just trying to maximize the space. There were some new design ideas rather than have planters all along the edge with railings, why not put places where people can sit and look out and have almost like a higher bar area that to just get more spaces in these parking spaces. So I will bring forward the whole list of comments from that design meeting to the Planning Commission when they're reviewing the prototype design, but that will be decided at that meeting and that they're one of the biggest, the comment we heard the most was about the furniture and the estimated cost I believe for two spaces to build it out with estimated cost is about $25,000. It's expensive, but it's a long-term investment. I have those numbers and I'd be happy to share those with the council and send them out. Any other questions from council members? Seeing none, Katie, I had a question about the bicycle parking. Bicycles are on my mind. Are those spaces per parkway, are those going to be reserved and limited for customers and the establishment? Are they open to the public to be open? You know, there's no, I think they're open to the public. It's really supposed to offset the public parking space. So it will not be just, from my understanding, we didn't put anything in the ordinance that says it's just for those businesses. It's really to help mitigate the impact of removing public parking from our streets. Yeah, I just, I mean, when reading the section on the bicycle, it was to me kind of unclear one way or the other within the ordinance. It does say that the street dining deck that eliminates an on-street parking space must include a bicycle parking rack integrated into the street dining deck design. Or it says within the private property of the eating and drinking establishment. It kind of makes it sounds it could be proprietary instead of just open to the public. Would it be better to, if our expectation that it is going to be available to the public, just maybe mention that in the ordinance? You know, at this point, we can't really make any modifications to the ordinance, but if we need to, we could put something within our policy and bring it back to the council. Okay, yeah. Yeah, I think that that would be good to just clarify that as I anticipate those kinds of issues may come up down there. I think starting out maybe good to just be clear with everyone. So let's see, Jamie, you had your hand up. Yes. I was just going to note that each one of these parklets is going to get a revocable encroachment permit. And the revocable encroachment permit is going to include a lot of sort of standard language about they're doing this in the public right of way. This is what they can do. This is what they can't do. So I think we can easily capture that there, that bike parking on your side is public and you can't restrict people's use to it. So hopefully that can clear that up. And because I do agree, if it's not clear, it can lead to confusion, which can lead to conflict. Yeah, thank you. Thank you for that. That sounds like a good solution. Seeing no other questions on the staff report, I'll go to the public, see if any members of the public wish to address this item. If you do, raise your hand in the Zoom application of balestar9. The moderator will give you three minutes to speak or you may send an email to public comments at ci.capitola.ca.us. Okay, well, let's move on. Let me know if anything should come in there. So with that, I'll bring it back to the council for further deliberation and action. And let's see council member Brown. Yeah, I'd like to make a motion to adopt the resolution accepting California Coastal Commission modifications to repeal and replaced capital and municipal code section as listed on the screen in the public right of way and amend the municipal codes also as listed here on the screen. Second. Okay, there's a motion by council member Brown, seconded by council member Rick Tran. Before I call for a roll call vote, I just wanted to, I think extend my congratulations to staff for negotiating this with the Coastal Commission and really doing that successfully. I think the outcome is very reasonable on the part of the Coastal Commission. And so thank you for that good work and bringing the Coastal Commission around to our thinking. With that, council member Brooks. Yeah, I just wanted to add a quick comment. Great jobs to staff, but in addition, Katie, I was just in Los Gatos and they are laying the foundation for many of these parklets or spots. And I just think it would be a good time if any of the council members wanted to make a quick trip, not on the weekend in traffic, but to kind of see these things go up and what they look like, cause it's pretty phenomenal. So kudos to staff. Thank you for all the hard work. Yeah, thank you. So with that, I'm going to call for a roll call vote on the motion. Council member Bertrand. I approve. Council member Brooks. Aye. Council member Brown. Aye. Vice Mayor Keiger. She is to be accused. Oh, I'm so sorry. Thank you. And Mayor Story. Aye. The motion passes unanimously by those council members that are able to vote on it. So thank you, everyone. I think we all look forward to moving ahead with our permanent parklet program. Now let's go on to the item 8C, which is the potential second home tax follow-up. The recommended action is to provide direction to staff, either one, continue preparing the materials necessary to place the second home tax on the November 2022 ballot or two, do not proceed with placing that second home tax on the November 2022 ballot. We have a staff report please. Sure. Can you second hear my screen? How does that look, Mr. Moderator? Great. Okay, so we're back in front of you to talk a little bit about this potential second home tax. Council will recall that on May 23rd, we received polling results showing community sentiments about a second home tax. While the results from the polling show to plurality over 50% support for a second home tax, that support tended to wane as additional information was presented to potential voters. In addition, we've learned that a second home tax that was placed on the ballot by the city council would require two thirds to pass. So as we discussed last time, two thirds support is a very challenging bar to meet for any measure. And given the polling results, it would require a very strong campaign to have any chance of passage. So at our meeting then on June 9th, we held a follow-up where we got some direction from the council and in addition, we provided some additional input about some different types of questions that council members had. And in conclusion of the meeting, council did three things. Provided direction to proceed with drafting an ordinance and incorporated some specific details of what would go into the ordinance. Councils also included in the motion that members as allowed by the Brown Act would assess community support, potentially looking into an outreach plan and analyzing also whether or not there may be a community campaign for such a tax measure. And then also council asked for this to come back this evening here two weeks later. As a summary for the direction received at the meeting, the threshold for the tax was to be, people who occupied their homes less than 90 days a year would be subject to it. The tax amount was set a bit lower at the $4,000 level. And then we went through a bit of an enforcement protocol and exemptions which the council identified that would be included in the draft ordinance the city attorney's working on. The uses we haven't yet determined. So we will touch on that in a second here. So if we were to decide to move forward, staff would need direction on the proposed uses. As I mentioned two weeks ago, my suggestion would be that we look for uses that are either identified in the polling or there's a lot of community interest in, things that would really engender sort of support for the item and maybe split that between some general fund uses. The options should we decide to move forward would be we could get direction on uses this evening. Council could call a special meeting in mid June to discuss further. Council could consider forming a subcommittee to recommend uses for a second on tax. Or lastly, you could provide that direction at the July 23rd, 28th meeting. If we decide not to move forward this evening, then we would just need the direction to discontinue working on this potential tax measure at this time. So with that, this is the recommendation as identified by the mayor at the outset and I'm available to answer any questions. Seeing no questions from council members. I will take this matter out to the public and see if any attendees would like to speak on this agenda item. If so raise your hand in the Zoom application or you can start on the moderator we'll give you three minutes to speak. You may also send an email to public comments at ci.capitola.ca.us. Yeah, let me know if anything should come in Larry. So it looks like council member Bertrand you had your hand up. I'll bring it back to council for further deliberation and action. Yeah, I like to move forward but some of the things we did talk about was reaching out to some of the stakeholders and we did get a message from a group of realtors. That's one stakeholder, there's other stakeholders too. So that was some of the things we talked about last time and I'm not sure we've done a great effort in that regard. At least my participation hasn't been that great. So I'm not sure what others did but I think it should be a consistent, coherent effort from the city. And I think some of the discussion we had last time was that if this was to be successful sort of like our other general revenue measures in the past, we identified real needs for the city things that would resonate with the people who live here address real needs. The survey that was done does address that to some extent but I don't know if it is broad enough to really meet all the things that maybe would be very useful to make this measure successful. So I just like to put out those two things. I think we should do more effort to reach out to our stakeholders, do that in an organized way and do more effort maybe a subcommittee, which is a good idea. Just have some suggestions about that last time which didn't seem to go over but I think that is still a good idea to try to come up with some really good suggestions for the purpose of this. Thank you. All right, thank you. Before I continue with council deliberation I do see there's a hand up in the Zoom application. I'm gonna go back to the public and see if the hand up is on this second home tax item. Yes. Hi, John Deere, can you hear us? Okay, I've unmuted and I wanted to say that I talked with, it's only one resident over at the Capitol Library and that resident told me she hadn't heard anything about a second home tax. And she was wondering what would the money be spent on? She wanted to see the list of what it was and she also said, gosh, I've lived in Capitola quite a while and the city used to be able to balance its budget. So is it that the expenses are greater or the revenues are less? She wanted to understand that. So that's my comment. All right, thank you, John Deere. The other members of the public that would like to speak on this item. Okay, I'm gonna now come back to the council then and recognize Vice Mayor Tizer. Thank you. So I, after our last meeting, did meet with a few of our community members, also members of our financial committee and sort of spitballed some ideas along with staff members too. And I think while I wanna support the ballot measure, I think that how under the gun we are, it's going to be something that would take a little bit more initiative from either community members, possibly some more campaigning, definitely some more outreach to the public. I'd like the public kind of as John Deere was saying that she's hearing from people that people aren't aware of what it's for, what it's going to contribute to. So I think that trying to squeeze it into the November ballot might be a little bit unattainable for us right now, but I think that moving forward, and it's something that we should still address and have staff and in our community moving forward towards getting it on the next presidential election ballot. Council Member Brooks. Thank you, Mayor Storey. So yeah, I think that the obstacles are real and in looking at a potential, this potential ballot measure going on the November, this November ballot. I know that several other cities are currently looking at that and that our legal can use some of those outcomes in the next year and from these cities to help us gauge whether this is feasible for our city and that we're set up in regards to any potential litigation. Those are, that was one thing I mentioned before about what would Council A be able to afford this and what would that look like? What does the appeals process look like for us? So a lot of obstacles that are in our way, but not to say that it's not attainable, wouldn't, I think there's still opportunity here. So tonight I'm not ready to move this forward to the November ballot. I'd like to see some community engagement on this in the next year for the 24 presidential ballot, if in fact that the other measures do well. I think I heard San Francisco's doing it. We'll see what the outcome in Santa Cruz, how that goes and so forth. And so we can revisit this in a year or so to see whether this is something that would work for our city. And those are my comments. Thank you, Council Member Brown. Thank you, Mayor Storie. I think my thoughts on this echo a lot of what my fellow Council Members have already said. I think this is something that as a city we would benefit from moving forward with. I do have concerns with moving forward with it on the November ballot, especially seeing the kind of voter turnout we saw in the primaries this year. I agree with some of the previous comments that perhaps in a presidential election year we'd have a higher voter turnout, which would also benefit us in terms of our kind of ballot measures. Additionally, I think if we're gonna be putting this on the ballot in November of 2024, we would probably wanna start doing outreach, any additional polling and considerations of what an ordinance might look like in summer of 23, because to the point of summer, the other comments that were made, I think we just started talking about this in May and we would have had to have an ordinance ready essentially now. And so that only gave us 30 days to really pull this all together. And I know that we did the polling, of course, and that was beneficial to have that information. But I'm concerned that we're not gonna get to the two thirds threshold to get this passed in November. And so I agree with others that now this year is not the time for this ballot measure, but I look forward to being a part of supporting it should we choose to put it on the ballot in November of 24th. Council member Bertrand. Yeah, I think everyone's mentioned a lot of things that would not go well for a successful campaign. So my question of staff is, can we move forward with a suggested developed, excuse me, a suggested ordinance, not for November, but something that we could use when we're talking about this to the community. And I think Yvette mentioned that there's other cities and communities that are considering this and Sam, our attorney could take those things into account so that we do avoid litigation or possible efforts to slow it down. So that's my suggestion. And so not for this November, but for later and we basically develop something that we could actually have that would address what we're trying to accomplish. Lisa, in terms of the people. I'm happy to be council member Bertrand. I'm sorry if there's an echo here. I do know of a couple of cities like council member Brooks mentioned are looking to put a measure on the ballot and Santa Cruz residents put a measure on the ballot. I've been in close contact with Jamie about this. We'll keep talking and certainly my office is watching these measures that are going on the ballot. And so in the next few months, and I can work with Jamie about pushing that information out to the council. Yes, Sam, I think your guidance would be very helpful in this. Thank you very much. Another thing if I may, Mayor. So Sam, your law office will be dealing with the legal issues, but if there's anything that comes about that we would like to know in terms of our discussion about, some of the resonance with the community, some of the issues that were more, our issues are going to be different, but I'm just sort of trying to get an idea what their experience is also. Because it is a tax and it does have to meet a real need. Thank you. All right, thank you. It seems the sentiment of the council is to select a second option, which is do not proceed with placing a second home tax on the November 2022 ballot. Is there someone who wants to make a motion to that effect? I'd like to make a motion to not proceed with this ballot measure on this November ballot. Is there a motion? Is there a second to that motion? No, second. Okay, there's a motion by council member Brooks and seconded by council member Bertrand, not to place the second home tax on the November 2022 ballot. Is there any final words by council members before I call for a roll call vote? Seeing none, can we have a roll call vote please? Council member Bertrand. I agree. Council member Brooks. Aye. Council member Brown. Aye. Vice mayor Keiser. Aye. Mayor Story. Aye. The motion passes unanimously. Now I wanted to check in and see if there are representatives so the BIA are in attendance. Devin's here. Yes, Mayor. Devin Salter who put the budget together for the BIA is attending the meeting. Great, great. Okay, so we're gonna now go back to item A and I just want to announce that I have a conflict since I am subject to the assessment by the BIA therefore I'm on both sides of this arrangement. So I am going to recuse and step away from this meeting and turn it over to vice mayor Keiser. Thank you, mayor. Okay, so we are moving back up to item A which is consider a resolution for the Levy of Capitola Village and work business improvement area assessments for fiscal year 2022 to 2023. The recommended action here is to conduct the notice public hearing and adopt the proposed resolution levying the fiscal year 2022 to 2023. Capitola Village and work business improvement area assessments and accepting the CVW BIA annual plan and budget. Jim, is this your presentation? Yes, ma'am. Thank you. Okay, thank you. Let me share my screen and I'll go through a couple of slides here. Does that look okay, moderator? Thank you. So just by way of background the BIA was formed by the in 2005, June of 2005 when the city council adopted ordinance 889 and it's a business-based, self-imposed assessment district with assessments paid by businesses within the district for improvements and activities that support revitalize and attract tourists to those businesses. The assessment amounts are determined by business classification and number of full-time equivalent employees. So as was the case last fiscal year due to the pandemic, the proposed assessments for this year have been reduced 25%, which was the same as what they were last year for everyone except the hotels and lodging establishments and those remain reduced 50% as they were last year. Businesses can make in-loop payments in the form of gift certificates for use by the BIA in normal years, but we didn't have any, there were no in-loop payments last year and again, with the reduced assessments, there's no in-loop payments this year. So as far as the assessment process, we set the, on June 9th, we presented a staff report and made the annual report available to the public and sent a hearing for tonight. The hearing was noticed in Santa Cruz Sentinel and mailed to all the affected business owners in the California state law as well as our new new code to require the city council to conduct a public hearing annually prior to approving the assessments and those assessments are submitted with an annual plan and budget for council consideration, which is included in the agenda packet. And just as a reminder, there is no fiscal impact to the city. All services provided by the city are reimbursed by the BIA, both the public works department as well as for work done by the finance department. As a reminder, the BIA budget does include restricted transient occupancy tax or TOT revenue, which was in result of Measure J, which was approved by voters in 2018. And Measure J dedicated a portion of TOT revenues for local business groups. And in February of 2019, the city council directed that the TOT revenues restricted for local business groups be split evenly between the BIA and the Chamber of Commerce. And the kind of, we didn't do a REZA or an ordinance, but the request or kind of verbal requirement was that 25% of their TOT revenues be allocated towards village improvements and or enhancements. That the TOT portion of the budget, the revenue as well as what those expenditures are gonna be if you broken out separately from the regular budget and that they provide an annual report on how the restricted TOT revenues have been used. So for fiscal year 22, 23, the BIA budget has 32,000. I think I've actually pumped that up a little. I'll have to coordinate with them on that. And out of the 32,000, they have program 3,000 for direct reprinting, 4,000 for miscellaneous advertising, 5,000 for website management, 14,000 for village enhancements, and 6,000 for holidays and events. The 20,000 when I went back and looked at council comments back in February of 19, it was really for the village, the 25% was really village enhancements and holiday events. So you can see they have 20,000 of the 32 programs for that. As far as what assessments look like, these again are the same as last year. So these on the top, well, actually everything, except the bottom line represents about 75% of what the assessments were prior to the pandemic. Again, same as last year. Hotels and motels and the ends on the bottom, that's half of what they were paying pre-pandemic. And that concludes my presentation. So the recommended action, as the vice mayor stated earlier, is to public hearing and adopt the proposed resolution levying the fiscal year 2223, capital of village and work, business improvement area assessments and accepting the BIA annual plan and budget. And with that, I'm happy to answer any questions. And as again, Devin Salter, who prepared the budget for the BIA is also in the meeting. Awesome. Thank you, Jim. Do we have any questions from council members? Okay. I don't see any. And Devin, if you have any thing you want to add now, is it a good time for that? I think. Yes. First, can you guys hear me? Yes. Thank you. Okay. First of all, I apologize for not being on earlier. I just assumed that the council meeting started seven and not earlier. So that's okay. I apologize for that. And then Karen's usually on these and she asked me at the last minute if I would go ahead and be it and be present. No, I don't really have anything to add. Just thank you. I just want to thank the city of Capitola for working with us and all the help that Jim has given me over the past couple of years as treasurer to just understand more of the reports and how the income and expense thing works within the city is having any questions of me in reference to a budget. I'd be more than happy to answer those at this time. Great. Council member Bertrand? Yeah, I'm ready for my comments now. Okay. Thank you very much, vice mayor. So Devon and I had jumped in earlier because my scrolling was off. So I read about the many things that you've done. I'd like to say that my daughter, when she was of that age, she loved Easter egg hunt. And every time we go by, sometimes we see it if we go by the right time and kids just love it. So, but my comment is about the public works and village enhancement. And I'll just read this. You may not have it in front of you. Basically, BIA contributes annually to the city of Capitola Public Works Department and our contributions are used to help maintain the village and the wharf, sidewalk cleaning banners and new parking signage are part of this year's village enhancement. So I know we did the surfboard sign for the parking. I think that's an example. And I'm really glad you're working with public works on this. And I was just wondering if you wanna expand on that and maybe some of the things that you may be planning in the future. Sure, Jacques. So, in regards to the village enhancements, let me backtrack and talk about events. Most of the events that actually happen in the village other than the sip and strolls are put on by the chamber. We give a portion of our money, a small portion to the chamber to help with those events, i.e. the Easter Egg Hunt, Surfing Santa, some of the holiday things that go on. So, and then as far as village enhancement, I know that we've agreed and we've talked with the city about adding some sidewalk cleaning. Because, I mean, honestly, once a month or once every other month just isn't enough to make it look nice or presentable to people that visit our area. So we will be adding sidewalk cleaning in July and August and September on top of what the city is paying for as well. The banners are up. You know, we've really spent some money on our website which we think is gonna help the visitor experience a lot. Added parking directories and that type of thing to the website. Also in the process of working with the city and hopefully putting QR codes on signs in certain areas so that people visiting the area can access that and helping where to go whether it be to a public restroom or what have you. So I know, I don't know if that answers your question but I'll expand it, you know, item 10, nine. And I didn't, yeah, I was wondering about the Easter egg hunt. The chamber does do that, but it's nice to know that you helped contribute to that. So thanks for clearing that up. Absolutely. Hey, do we have any other council comments? I see Councilman Brooks. Thank you, Vice Mayor. I'm sorry, is this questions or comments? We have moved on to comments. Okay, awesome, thanks. So I would just like to share a few comments then. I think that the BIA has been doing a tremendous job. I really love the new Sir Ford sign. I really love all of the work that they've been doing and the commitment to the village and the neighboring streets. I also would like to encourage the BIA to continue working with our police department and the Youth Action Network in their next steps to engage our youth when school starts. I know that there were some issues with lots of students coming down into the village and leaving their bikes and causing a little mayhem, if you will. And so I know that many of the businesses have been involved in troubleshooting and being creative in ideas and I just want them to encourage to do so because we have a big gap with summer here and it more than likely will pick up when school starts in August. And so again, thank you for everything that you're doing and yeah, great work. Thank you. Thank you and Councilwoman Brown. Thank you. I just want to take a quick moment to commend Devin and all the other members of the BIA for the work that they've been doing in the time that I've been the Council's representative to the BIA, I've seen how hard they've worked on things such as their website and getting people into the village, their social media activity has gone up quite a bit. So, and their sip and stroll and their cookie walk, that Easter egg hunt, you know, during the pandemic they were really able to pivot and continue that Easter egg hunt in a way that allowed for the continuation of those kind of family friendly events in the holidays in the village. So again, just good work to all of you. I really enjoy attending your meetings and being the Council's representative to the BIA. So again, I really appreciate it. And with that, if it's an appropriate time I would like to make a motion to accept the CVW BIA annual and function. I'll second that. Great, so we have a motion by Councilwoman Brown and a second by Council person Bertrand. I do just want to say that I think having the BIA and having them as part of our community and being able to work amongst our small town, whether it's PD, other businesses, whatnot, I think it's really important. And I'm glad that we can continue on. And let's take that to a roll call, please. Council Member Bertrand. I agree. Council Member Brooks. I. Council Member Brown. I. Vice Mayor Kreiser. I. Vice Mayor Dory is with you. Yes. So for those that can vote, it is unanimous. So item 8A, we will, don't have to say it. Okay. Okay, good. All right, that passes unanimously and Mayor Starr is back. I'm back. Thank you. All right, let's move on to the next time, which is D. And this is coming back to revisit our 2022-23 budget. And it's to consider the next year's budget on the Capital Improvement Program for the City of Coca-Cola. The recommended action is to approve the proposed resolution adapting the fiscal year 2022-23 city budget and top-down treatment program. Can we have a staff report, please? Yes, Mayor Starr. Thank you. I'm gonna give me one moment to share my screen again. Is that okay, Larry? Thank you. So I'm just to kind of go over the process that we went to our proposed budget was distributed to April 29th. The Finance Advisory Committee held meetings on May 3rd as well as May 17th. We also did, well, it was outside of the budget, but we did went through the second home tax earlier this month. And then City Council held meetings on May 4th and May 19th. Those were special meetings for just budget hearings. And then at the last May 19th meeting, Council provided direction for this evening for potential budget adoption. And so just to kind of go over the recap of the general fund, our operating budget is imbalanced by design and that goes back to the Council goals that I'll cover just below there. However, we are maintaining a target balance of right around 1.4 million. And in addition, we have a $385,000 set aside in the resiliency account. The reason our budget is out of balance is we are utilizing 3.7 million of available general fund resources for capital improvement projects and City Council goals. Those, I'll go over, it's been a while since we talked about these, 1.5 million for the Work Rehabilitation Project, 150,000 for the Community Center Maintenance, Universal Design Park, 275,000, which was increased from our last meeting. Funding study for City Hall options, 50,000, beginning to set funding aside for the Stockton Bridge reinforcement of 350K left and Cliff Drive study, 50,000, Noble Gulch Engineering feasibility analysis, 50,000, Fire Risk Reduction, 50,000. I believe those bottom four are part of our LHNP. Continuing on, City Hall Maintenance, 100,000. We've programmed 20,000 to add two more EV charging stations. We have 100,000 program for bike and pedestrian safety projects, 50,000 for some additional Cherry Park bridge maintenance. We're going to do a deposit of an additional 500,000 in our CalPERS retirement trust. And then we have some miscellaneous projects that are really staff driven, but we have 50,000 kind of set aside, there's about six or seven of those. And then again, the $385,000 in resiliency account. As far as capital improvement program, just kind of putting up the new ones for fiscal year 2223. I actually just talked about those on the previous slide, but City Park design and Stockton bridge, you can see our general fund dollars, the capital award is general fund and measure F dollars. And that number is wrong, I apologize for that. That should be 400,000 of general fund and 1.1 million of measure F, apologize for that. The city hall maintenance community center are coming out of the facility fund and then pavement management $587,000 between our RTC measure D money and state SB1 funding. So at our May 19th, special hearing, special meeting city council direction was to increase funding for the universal design park by an additional 125,000, which brings us to the total of 275, to allocate 112,000 of restricted TOT revenue or funds for early childhood and youth programs. And that's 61,000 of our FY 2223 projected revenue into early childhood and youth program community grants. And then utilizing 51,000 of existing ECYP funding in the recreation division and Mickey has a plan for that listed up there, the youth program scholarships of 39,000, the swim lesson equity program for 10,000 and the job skills program for 2,000. Some additional budget revisions since our last hearing, we received our final Q3 for the fiscal year, which was first quarter of this calendar year, January through March sales tax revenues and they're exceeding our, continue to exceed our estimates to keep adjusting up and it keeps surpassing them. So we have increased our beginning fund, our sales tax revenue for the current fiscal year by 100,000, which gives us basically an additional 100,000 to start next year with. We also due to that moved up our projection for next fiscal year by 65,5 on taking our, and that's just the Bradley Burns 1%, that takes us up to an even 6.4 million. I think the most we've ever been before is about just under five, nine. So that's a pretty big jump there since pre-pandemic. On the expenditures, we made 160, almost 162,000 amendments and that was increasing the universal design project by 125. I got the actual invoice amount from the Housing and Homeless Action Partnership so that we moved an additional $1,525 out of general fund dollars and moved it to our Housing Special Revenue Fund. So total funding now for the shelter cost is 31525 and then we have another about 9,000 that goes towards out of the general fund. I also got received the final amounts for our JPA insurance premium. So I've decreased workers count by 8,000 but increased liability by 46,5. All of this combined increased our projected ending fund balance next year by a level over $3,500. So a lot of movement to not really change much in the overall big picture. Just as a reminder, during our meeting, we'll be evaluating our actual sales tax revenues over the next two quarters and see if this performance continues and if we need to make any additional amendments, we'll also be looking at performance of other key revenue sources but TOT and Canada's tax being two of the top. TOT is doing really well so we'll see if that one goes and Canada's tax seems to be coming in where we originally projected. It's kind of gotten up to where we thought it would be a couple of years ago so making sure that one's kind of holding there. There is the potential to consider lease terms for the community center, hopefully by mid-year. We should have an update on our federal war funding request and then our projected fund balance of 1.4. We can talk about that of $1.4 million fund balance plus the 3D5 and resiliency account if we choose. And if any of this steps, such as the community center or we get word on our funding requests for the work come in earlier, we don't have to wait to mid-year but that's kind of just keeping our list here of things that we're tracking right now. So summary, general fund is structurally balanced in the future. Again, it's out of balance this year but that's intentional as we have some additional resources we're using. It is structurally balanced up until the sunset of measure F in December of 2027, which causes it to go out of balance and our reserves remain at target levels. We're a little under this year. I think I talked about this at the last hearing that we're gonna take kind of a two-year approach to getting them back up to the target. Sales tax and TOT continue strong performance. So again, we're gonna keep monitoring those and make sure that that continues and if those start to drop off we'll be back in front of council for sure or if they continue to blow up like they are we'll be back as well. Extendatures, just all of our service levels have returned to pre-pandemic levels. A lot of the seasonal staff that we had kind of reduced during the pandemics, it's all returned. So we should be seeing the same levels of service that residents are accustomed to, not that I don't think it dropped off that much during the pandemic. Continued funding for community grant program is fully funded and it includes a combination of general fund and CDBG, CB grant funding and then one and three-quarter bank positions remain frozen from the onset. I don't think there's any claims on those right now. So recommended action is to approve the resolution adopting the fiscal year 2022-2023 operating budget and capital improvement program. And that completes my presentation and I'm happy to answer any questions. I'm not seeing any hands up from council members. So I'm gonna go out to the public and see if any members of the public would like to speak to the council about our 2022-23 budget. Okay, I guess I should tell everybody if you wanna send an email, send it to public comments at ci.capacola.ca.us. Larry, if something comes in before we conclude this item, just let me know. But with that, I'll bring it back to council and determine the will of the council. Hopefully we'll have a budget next year. I'll move approval of staff recommendation. Thank you, council member Brown. Is there a second? And second, I believe by Vice Mayor Keiser, thank you. Okay, okay. With that, let's just go to roll call vote. I know we've been working on this many sessions over the past few months. And so it is now come to the final action. So can we have a roll call vote, please? Council member Bertrand. I agree. Council member Brooks. Council member Brown. Aye. Vice Mayor Keiser. Aye. Mayor Story. Aye. Thank you. We have a budget for next year. And with the budget, usually there comes a consideration of the fee schedule. So which is the next item on our agenda. The recommended action is to conduct the notice public hearing on the proposed city fee schedule for fiscal year 2022-23 and adopt the proposed resolution amending the current fee schedule. And we have a staff report, please. Yes, thank you, Mayor Story. I'll share my screen one last time. Is that look okay Larry? Thank you. So just by bad way of background, the annual review of the fee schedule as the mayor mentioned is part of the budget process. Back in November of 2015, the city council adopted the current fee schedule. And at that time, the consultant recommended an annual review and a consumer price or CPI increase. Most fees have been increased each year by the San Francisco Bay Area annual CPI. And that CPI rate for this year which is we use the calendar year. So January through December of 2021 is 3.21%. And that's the increase that staff is recommending just to give a little context of what they've looked like over the last few years. You can see in fiscal year 1819 and 1920, they were kind of in the same range over 3%. It was the same in 2021. However, that was kind of a weird time because we were looking at calendar year 19 and 20 activity and there was a lot of recovery going on. So it was kind of a weird timing on that. So at that time, we decided not to do an increase. Last year, which was more representative of what was really happening during the pandemic was 1.72 and that was what we did last year. So as I mentioned, there was a cost of service fee study back in 2015. Best management practices is to do that every five years. I think I've been kind of beating this drum for a couple of years now that we began this and we began a fee study in January of 2020. We put the brakes on it in March of 2020. Oh, I'm sorry. Yeah, we started it in 2020, thinking it would be ready for fiscal year 2021. But when the pandemic hit, we put the brakes on it. We kicked around starting it up last year, but kind of wanted to give another year of recovery before we started adjusting fees. So now at this point, we're gonna be kicking that off. Actually, next week, started doing a little bit of preliminary work and then the idea is to present results to city council later this year or early 2023 and then any adjustments. And some could go up, some could go down, but some of the adjustments would go into effect July of next year. And staff has not recommended any fee amendments at this time, just simply the CPI adjustment. But I do wanna point out that with the approval of the permanent outdoor dining, we will be back in July. Once we get all of those fees kind of nailed down, we didn't want to rush through and have fees not correctly stated in the fee schedule. So we'll be bringing them back in July with the outdoor dining fees. So our recommended action has been your stated is to conduct the notice public hearing and adopt the resolution adopting the fee schedule for fiscal year 2223 and adopting the animal service fees as set by Santa Cruz County. And with that, I'm happy to answer any questions. Here, I'll go to the left. Yeah, Jim, just one clarifying question. We're increasing it. It's the base of what, by one point, whatever that first screen was. What's the actual, what are we getting from to end to? That's how I'm still looking. All of the fees that are within the schedule would have a CPI increase of 3.21%. OK, and last year was the 1.7. Got it. Correct, I kind of strung that all together, sorry. I see. OK, and then this increase by 3.21% goes into effect of July 2023? No, July of this year. OK, and what did you say goes into effect of July 2023? The plan is after the report. Yeah, the plan is to do the fee study kind of into this fall and early next month and be queued up for next July. OK, I'm tracking. I got you. Thanks. Questions from council members? I'm going to go after the public. I see that there are no attendees in the Zoom application. I'll just check, Larry, are there any emails from members of the public on this item? OK, with that, I'm going to bring it back for a motion. Council Member Brooks. Yeah, I'd like to make a motion to approve the proposed resolution adopting the wrong one. Everybody, hold on. There it is. As a motion to conduct the notice, public hearing on the proposed city fee schedule for fiscal year 2022-23 and adopt the proposed resolution amending the current fee schedule. I can second that. The second by Vice Mayor Keiser. Can we have a roll call, please? Council Member Bertrand. I agree. Council Member Brooks. Aye. Council Member Brown. Aye. Vice Mayor Keiser. Aye. Say your story. Aye. Thank you. That brings us to item 8F. And that item is to approve the proposed resolution authorizing the fiscal year 2022-23 angle salary adjustment consistent with existing employee labor agreements. And as part of the introduction to that item, it is my job to, as mayor, to make the final following announcement to before the city council this evening as part of agenda item 8F. It's a recommendation to approve the updated salary schedule for 2022-23 for employees, including at-will management employees. At-will management employees consist of department head and city manager. Effective July 10th, 2022, the cost of living increase for the at-will employees will be 2.75%. In addition, city health contributions for at-will management employees will increase by $25 per month, effective July 10th, 2022. And can we go on with the rest of the staff before on this item? Seeing no questions, I'll just ask, yes. Larry, are there any emails from members of the public? If members of the public would like to send an email, you can send it to public comment at ci.capital.ca.us. I'll bring it back for council action. Is there a motion? Yes, I can make a motion to approve the resolution authorizing the fiscal year 2022-23, annual salary adjustment consistent with existing employee labor agreements. A second. I think there was a motion by Vice Mayor Keiser, seconded by council member Brown. Can we have a roll call, please? Council member Bertrand. Hi, Bruce. Council member Brooks. Hi. Council member Brown. Hi. Vice Mayor Keiser. Hi. Mayor Story. Hi. And that motion passes unanimously, and which brings us to item nine, which is adjournment for the evening. Thank you, everyone, for your attention and your work this evening with the city's business. I will adjourn this meeting to our next schedule meeting, which will not be until July the 28th, 2022, at 7 PM. We are on our summer break, so there won't be an early July meeting. Everybody have a great summer break. Until then, be sure to come back safe and sound on July the 28th. And we will see you then. And as I always am, be kind to yourself and be kind to others. And good night, Capacola. Good night. Thank you.