 Good evening everyone and welcome to this evening's Capitola City Council meeting. I'm going to turn it over to our city clerk to read some information about remote access for tonight's meeting Welcome to the Capitola City Council meeting in accordance with the current Santa Cruz County Health Order and the governor's executive order and 2920 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 over zoom or with your phone is available on our website cityofcapitola.org On the slides now shown and on the published meeting agenda. Thank you for attending the meeting mayor Peterson I'll turn back to you. Thank you Thank you Can we have a roll call for you? Yes Councilmember Bertrand Here councilmember Batur here councilmember story Here vice mayor Brooks Here and mayor Peterson Here thank you We're gonna move now to the pledge of allegiance and if you wouldn't mind I will ask for councilmember Batur to lead us in tonight's pledge Thank you, mayor United States of America and To the Republic for which it stands one nation under God Indivisible with liberty and justice for all Thank you councilmember Batur We're gonna move on now to item two presentation And we're gonna be providing a retirement proclamation for senior mechanic him excuse me Jim Turcott We have Jim on camera. Yeah, if you could wave Jim They're perfect. All right, so I'm gonna go ahead and read the proclamation We are honoring senior mechanic James Turcott upon his retirement for 40 years of city of service to the city Whereas on June 9th 1980 as a 19 year old James Turcott was hired as part of a summer youth employment program where Jim exhibited excellent work habits and Whereas upon his graduation from high school Jim accepted a full-time position in the public works department as a maintenance worker On November 17th 1980 and whereas Jim worked as a maintenance worker one and two for five years And on July 1st 1985 was promoted to the position of maintenance supervisor Jim typically went above and beyond to take care of all of the demands last minute requests and emergencies that came along Jim held this position for 10 years before moving to the position of mechanic in October of 2005 and finally senior mechanic in March of 2015 And whereas Jim was named the maintenance division employee of the year in 1989 and again in 1995 for mastering everything there is to master in the public works department and Whereas Jim is an excellent athlete who excelled in golf and basketball and helped a public works team win many games against all comers And whereas Jim has kept his sense of humor through his many years Ensuring that work with the ensuring work with a smile even while comprehending the underbelly of the city's street sweeper leads to longevity And whereas during his many years of service Jim has represented the city of capitol with the highest degree of professionalism Always keeping the city's best interest in mind He has maintained exemplary high work standards Learning leading and teaching others the importance of a completed job. Well done finishing work within budget and cleaning up in preparation for the next task And whereas Jim leaves the city as the longest tenured full-time employee to date His 40 plus years of service will likely not be equaled or broken And whereas Jim Turcott has decided to move on to the next phase of his life Take off the wristwatch to forget the exact time except the tea time And whereas his co-workers in the department of public works wish Jim's family nothing but the best in retirement life Now therefore I Kristen Peterson mayor of the city of capitol On behalf of the entire city council Do recognize and commend Jim Turcott for his 40 years of excellent and dedicated service to the people of capitol And wish him well in his retirement Jim congratulations You have given more to this more years of service to the city than I have been alive on this earth You are absolutely an incredible example of exemplary public and community service We definitely want to hear from you, but before I turn the floor over to you for a couple words I would like to turn it over to jessberg who I believe has some comments as well Thank you. Mayor Peterson city council members too. I'm sorry. Can't be with each night Excuse me. I took a pandemic to keep me away. I want to thank you for your years of service Managed to work with you for almost half your career. You've been an exemplary employee I just want to wish you and show a happiness and health In retirement so now I'd like to turn it over to my cohort and Former public works director or former assistant public works director ed morrison ed Good evening. Um, this is a The proclamation um The mayor just read out for you, Jim um Good evening. Thank you. Mayor Peterson. Um, great job on the proclamation The one thing you left out of this proclamation One of his personal abilities that I'm most jealous of Is this guy condemned I mean Michael jackson's has gotten nothing on Um, seriously though In baseball terms the city hit a grand slam a walk off grand slam with a higher gym That's stated in the proclamation Give as well. I can respect the biologist co-workers present and retired Me I love the guy He is humble Is the day is long and has always been soft-spoken He preferred to let his work speak For him and it is all we've spoken volumes Um public works, uh wanted to present him something with and uh, they talked about it a little bit He's talked about a little bit and we thought we'd get him a T We tried to get james T to the bank and we couldn't pry it out of his hands. So In lieu of that, uh, they're Some public works They're presenting him with this Gold key, um More often than not, it's a gold key to the city, but In jim's case, this is a gold key to the thing that he's probably most infamous here The underbelly of the street sweeper. So this is the key to the street sweeper from all public works It's my honor to congratulate you on your retirement I'd like to wish you good luck Good luck to you and your family and keep it on the fairway There you go bud I personally like to think City tech folks are doing me the opportunity to be an employee Didn't know what I was going to do right at high school and didn't have any clue that They work ahead and a couple other people that prior um gave me the opportunity to work here and All I could do was just try to succeed as much as I could and The people really helped me out here and I appreciate everybody I've met over the years and looked with and they're all great people and I just hope that You all just do well off after all this pandemic stuff in time Get things back to normal and kept told back to a beautiful state So thank you very much Thank you so much and jim again congratulations and thank you for all of your service if we could all either Virtually or three reactions can't round of applause Thank you again Hold on jim Thank you All right, we are going to move on to item three election business and we will begin With a quick recognition If I could turn it let's see can I turn over to our moderator and see if we're ready to Yes, okay We're going we're going to begin uh with election business with a recognition of outgoing councilmember bachorf Uh, I will begin uh by saying ed I I believe that there was um A a gift presented to you in these virtual times. I I think it was handed off to you With six feet apart from you and whoever handed it off to you a little bit different than if we were in person But if you want to hold that up Wonderful and that is a photo by brian garrison of wet feet photography He had the winning submission in a city photo contest You know, I I want to turn it over to to the council for some comments in a minute here, but but I I'm going to um Take the liberty to start when I first ran for council in 2016 I came to um Nearly every council meeting that year to prepare for what it would mean to be on council and you were the mayor At the time and I learned so much just from watching you run a meeting Um, and the way that you were congenial and kind to all people even when there was disagreement over policy or practice and I learned so much from that When I was first elected, uh, you and I uh, went to lunch at zelda so you could talk to me about the seat I was about to take at ambag and during that conversation. I remember that you spoke um You spoke proof to me and you spoke very freely and I sat there like a deer in the headlights And I didn't know what to say because I was a brand new council member But I will always cherish that from the very beginning that you were Uh thoughtful and kind and honest and that throughout these last four years on council with you You have continued to be thoughtful and kind and honest Um, and that though we have have had policy disagreements at time I never was concerned That we would essentially no longer be able to discuss other policy issues or that we weren't going to be able to come together on other important matters Um, I I feel very honored to have to have had four years on council with you You will be very missed And I hope you know that I will be knocking on your door in two years Uh to make sure that you're you're considering running again. If not then been in the future And that will be that will be my rallying cry for you from here on until until eternity So I I just want to personally thank you ed from the bottom of my heart From the bottom of my heart. Thank you. You have been a wonderful a wonderful role model For for what it means to be a council member and good times and in bad Um with that I'm going to turn it over to other council members To see if there's other members of the council that would like to uh to comment And let's turn to council member story Thank you, mayor peterson Yes, I wouldn't want to miss this opportunity. Um Ed is just unfortunate that we can't all be in changes there with you to watch and Speak to you personally About our experiences with you And you and I ever since you were first elected in 2012 and you and I have had a Very interesting political history in this community And through it all though, I've always admired and respect How hard and how delicate like you were for the city of capitol Not only being on the council But you have represented capitol On all the local commissions and committees Kristen mentioned And that Your own left coat you are on metro. You're on the regional transportation commission The chamber of commerce before that and in the public safety foundation You have And are an integral On part of this community and I would have to say that the one that I was probably Most impressed by Was when you committed yourself to the Uh select committee for south bay arrivals Um at the appointment at sam far and you traveled over the hill To represent our community On the issue of the overfly I thought that demonstrated some Real commitment And um You know, I would have to say that um You and I probably didn't agree on everything But I always appreciated and respected your Point of view And the issues that you presented you were always thoughtful You were always civil And you were always, you know, profound Um, and if if I didn't necessarily agree, I always saw One thing that came from you in that you you were committed And that you love this community And that you love the city of capitol Um, and you know when it comes down to it That's what really matters So, um So I want to thank at both as a council member And as a resident of the city of capitol I want to thank you for all your years of service Um, and your diligent efforts on behalf of the city of capitol I won't say goodbye because I know you're going to be in the community and you're going to be back So I'll just close and say see you around ed and enjoy your time off Also now Thank you Thank you, sam It's the vice mayor brook has a comment as well I'm from member botor Um, I I know you have some words to share as well. So I won't take us too much of your time Um, I have truly truly That Gosh, I feel like I'm gonna get choked up here I just think back to our time at mr. Tooth when you sat down with me and all you've ever done since the moment we've met is support me and believe in me And that is just a true representation of who you are um in believing in In capitol and those who are represented so ed from the bottom of my heart Thank you so much for all that you've done for our city for me And as sam story just said I'll see you very soon Thank you All right, I'm just going to check to see oh council member baton. Do you have a comment as well? You're still on mute council member baton so Appreciate it the last time ed spoke and he talked about his history behind why he Supported some of the city projects downtown and so my comment basically is More so than any other city council person That I've known and I sat in many meetings You really worked on projects that help downtown um, you know drainage The new one that's coming up helping to Share costs on new sidewalks. I mean, etc. You've had a focus on downtown. I think that's exemplary And you also had a good sense of the business issues You're someone also that walked around downtown and you knew those things instantly. So I think that's great I totally agree with that um I've always agreed with you actually And the main reason why I've always agreed with you is because you sat in analyzed problems And you had your own bent on what the answer should be and what the policy should be So whether it came to what I wanted It didn't matter what I agreed with you on is your effort to come to a solution That was the best recapitalist. So I salute you for that And hey, I'll see you on the streets Thank you jack Thank you, councilmember burshman Don't we're gonna come to you councilmember botch work. I promise before we do that I would like to open it to a public comment for any members of the public that would like to recognize councilmember botch work And I will turn it over to our moderator Uh to let us know if there's any members of the public that have comments Yes, I believe the the first comment. I believe is uh one of the panelists uh, the the capital of pao a I believe is ready to go Good evening, uh council staff Today is an amount of change Ed I mean Everyone's talked about you're not for the city But also I think one of the biggest things was you're not an appreciation for all the employees here Which was very well felt by not just everyone at the police department, but Uh Everyone in the city When we heard about this, uh, you know, we tried to figure out how we could thank you During this pandemic on a little part, uh, but we came up with that small little gesture to show our appreciation I'll stand over to the president a drill and myself we um went to our pao a body We wanted to recognize their eight years their dedication to their community and dedication to the minimum free public association and our record division It didn't go unnoticed. I appreciate it. We uh, want to present you Do it closely want to present you with a plaque Commemorating your tireless effort with us. Hopefully we can walk this over tonight. They're pao a badge in your service of commitment So we wanted to make sure that was uh acknowledged from our mouth. Thank you Scott and pay drive some words for you guys later, but for right now. Thank you very much You I think you really know how much that means to me. Thank you We have a couple more public comments mayor peterson First up is supervisor friend Thank you, mayor peterson and uh council member botto or for as everybody in the community calls you council member botto off I just wanted to make sure that we You didn't get away with about some acknowledgement from uh your friend and also a county supervisor You know ed constantly Would say that he isn't a politician That he doesn't want to be an out front guy, but a many respects. I feel like this is what makes you One of the best that we have in our county because You ask for nothing you do everything you work harder than most people that I know You're committed to always what's right Uh, you you speak softly and and not often but when you do people listen You're always there for advice to bounce ideas off of and you never come with an agenda I mean just think about if we could model that at a state and national level And I've really I've really uh, we basically came in at the same time And in fact at gales and you'll remember that conversation we had when I was first running and you said you were considering doing the same and And we said let's go for it And here we are eight eight years later, and I think you have you have quite a track record and quite a lot to be proud of I've really it's been an honor serving with you. Thank you for your commitment And it says a lot that that uh I mean it doesn't surprise me to hear the poa say what they say about your care of the employees because you really are in it for the Right reasons. I mean some people get into these check these gigs because they have their own Ideas of grandeur and you just simply wanted to make the community you live better Uh, and you did So ed uh, you'll be missed. I'm with christin. I'm all for you doing it and again in two years I know you're not but uh, we can all wish for the best Thanks for your eight years of service and thanks for your eight years of continued friendship Thank you zack now we have tj welch Well, I can't really add much more than what We've heard from some of the folks tonight already if I wanted to thank ed for one his appointment to the planning commission for me and You know ed never Try to push me one way or the other. In fact, I was happy. I'm happy to say that he actually Let me say on the planning commission even though he may not have agreed with what I had to say so Ed thank you for uh, eight years of being the planning commissioner. That was uh, something I enjoyed doing But I also want to say as a resident and a friend that uh Ed and I and I've heard it from others tonight both the colleagues or other fellow council members From the employees and and now from either from uh, one of the supervisors that Ed has done a lot for the community one. He's a huge supporter of the employees and And that can be difficult, but we just saw it recently in one of the last City council meetings where he pushed one of the norms for the city to Do away with free parking because it just didn't make sense to give away free parking away Gave the the city employees had to take a cut so that speaks volumes about ed and where he stands When he originally got on I know It one of his big commitments was financial responsibility, which Watching over these eight years. I watch him Keep that as that is something that's been the forefront of what he's done his decision. So I think that's great as well and I'm glad to call you my friend. I think he's done a great job of the city I I hope that some of other council members will keep some of those same missions in front of having that Moral compass and that fiscal responsibility compass in front of them and uh, you know, I I'm really impressed that you actually got the p o a because you don't work I think that speaks volumes of value And uh, when you have differing members on the uh, city council Respect you I think that says a lot because I think you've done that one thing that occurred from Other council members and I do show respect for others even when Maybe we're you were on opposite sides of the uh, into decision-making process. So Hey, congratulations on your retirement from the now the new city council And uh, we'll see you around town Thank you tj Now we'll ask our moderators to have any additional public comments Uh, mayor peterson, I do not see any other public comment on this item All right. Well with that, I will turn it over to you councilmember botch work If you have any comments that you would like to make this evening Well, uh, mayor peterson, you you know me well enough to know I have some comments, uh, but I you know it I'm I was all prepared to give my my speech and the kind words that people say Kind of put you in a place where you have to stop and reflect a little bit So I'm I'm caught in a little reflection right now, but I'm going to try to get through this I really appreciate the kind words from everybody that spoke And uh I'm going to try to get through this letter because you all have business to do tonight I would first like to thank the city manager and the city clerk for allowing me to participate in the last city council meeting From the capitol of city council chambers Although we have adapted to COVID-19 and its restrictions There is nothing that can replace holding a meeting in a public building with the public present And the interaction and dynamics it takes place during that forum I promised the city manager that although I have never been short on words or opinions And that traditionally city council members are not on a clock I would limit my farewell thoughts to one minute for every year of service So with eight years of service here at capitol, uh, please bear with me for the next eight minutes But before you start the clock, I have one disclaimer statement to read It must be clearly stated that although one may come up with a plethora of ideas while serving in this role None of them ever come to fruition unless you are successful At convincing at least two other members of the city council that your idea has merit So I take credit for some accomplishments Because it was only the only because two other individuals felt the same way that I did Conversely When I get to my failures or shortcomings that may have occurred for two reasons One because I was totally off base and wrong Or two even worse I didn't work hard enough to convince at least two other people That another direction may have been delivered a better outcome So with those disclaimers you can start the clock So many things have gone through my head over the last few months And the ability to recap everything in my tenure would be impossible And quite frankly boring I have chosen to narrow it down to four main topics Accomplishments failures the future and gratitude I've been fortunate to work with a variety of council members At my very first meeting the agenda packet was 850 pages long. I thought it was a joke I read it all we were voting on whether to charge 10 cents or 25 cents for a paper bag In an attempt to persuade people to start using reusable bags Badoeuf Harland and Norton voted yes and it prevailed My final decision was made when I asked my mom If she forgot a reusable bag in the car would she walk back to the car to save a dime? She said no, but she would walk back to save a quarter Sales tax measures I campaigned heavily for measure o That only passed by 67 votes That generates a million dollars a year for perpetuity for the city of capitol Same with measure f which generates a million dollars a year for 10 years To help rebuild our wharf flume and jetty the jetty which as we sit here right now is being rebuilt to t tax After two tries and I won't recap the first because it was ugly I built an alliance with the local business community that resulted in capitol erasing its to t tax by 2% That tax supports local business Children and generates at least $150,000 every year With guidance and assistance from steve jessberg and starting with a small project in front of beach house rentals We developed a shared bitty business city sidewalk funding program That allowed us to widen or replace hundreds of feet of sidewalk in the village from margaritaville to zeldas along stockton avenue And down capitol avenue to the trestle I've called the next section shortcomings because I really don't believe during my eight years that on the city council We did anything that negatively affected the forward path of the city There were some items that I didn't agree with sometimes vehemently But I am choosing to take the high road tonight and not bring those up Sometimes however, I was never able to accomplish mainly because they never made their way to the city council number one on my list is the village hotel When I campaigned for this position eight years ago I firmly stood on a position that the village hotel would not only replace the historic landmark And provide us the city with a solid stream of revenue But there would be a shot in the arm the village needed to revitalize shops restaurants and other lodging facilities I still feel the same way Narrow-minded thinking by a small group of people for many years has prevented any builder from even presenting a plan to the council If as a community all we do is try to stop policies and developments that represent some kind of change We can guarantee that we will be successful in doing nothing While it may seem romantic that we keep everything the way it is It is unrealistic to believe that we will be able to meet the future needs of our community by doing so Now more than ever with the long lasting effects of the pandemic The village needs something to draw the overnight visitor who will sleep shop and dine here Beach visitors in surfer's park, although mostly in our neighborhoods Leave their trash and drive home without even buying a t-shirt or a cheeseburger Hopefully someday the hotel will be built to restore the grandeur this charming coastal village town deserves Number two, I have joined yet another group of unsuccessful council members who have tried desperately to open the wristband park to the public I know I have voted on numerous occasions to provide additional funds for that project But it is still closed and for that I am sad The future Obviously the first and foremost task of the new city council will be to deal with the adverse effects of the pandemic Hopefully for all of us the vaccine will lead into us in a positive direction I have been fortunate to serve on the rtc and the metro board of directors for six years It seems that the larger the commission and the more the public comment The less time there is for commissioners to actually have debates on the topic After listening to all the public comment discussing all the options and evaluating all the studies I believe running a train whether it be freight or commuter from watsonville to santa cruz Is a boondoggle period A world-class trail is what should be constructed on that property I believe the mall is the greatest and maybe the last opportunity to provide long-term stability both financially and structurally for this city It will provide necessary housing in the right direction in the right location With careful guidance from the city council, this project could benefit all of 41st avenue Enhance the village and add desirable features for all the residents of capitol I am thankful for my time on the city council The citizens of this town allowed me to make decisions for eight years My goal was always to do what was best for the all 10,000 residents I will walk away from this job and rely on the current elected officials to make decisions moving forward I do not believe my role or that of other elected officials. It's to continually be active Involving the path of the city Change is good. It is necessary and without it. We will not be able to thrive Finally gratitude to my colleagues Jacques You and I councilmember botchers. You've been has been muted. Can we unmute councilmember botchers? Oh Did you tap that was me? I did it on my own. Sorry Gratitude we don't want to forget gratitude Uh, jock You and I we've had it. We've had a tenuous relationship over the years And I'm glad for all the times whenever we thought we were going in bad directions We would stop go to mr. Toots meet and try to work things out jock you have the kindest heart of anybody I've ever worked with on the council And you always brought that to the meeting and you voted from your heart and I appreciated that Sam you were here when I started and you're here when I left I remember when I first started they were accusing you of back room deals for for rent control and You've always been a solid pillar of wisdom and I leave this council knowing that you will carry this council with that wisdom forward Yvette You're a hard charger You know, I when you when you and christin got on the council I called you guys the bookends jamie said I couldn't say that but I said the two of them are going to keep us in check They're going to make sure that the three of us work in the right direction And and now with me leaving I think it's going to be changed to the three musketeers And I have confidence that you along with christin and margo will do a great job But for you, I love your energy you commented on that And I'm and I'm proud of what's going to happen to you in about the next hour. So thank you And christin You hit the nail on the head, you know, we started uh, I you know, you and I actually first met when we were making phone Calls on the library and uh, I remember you you were hardworking and and I'm so proud of the work you did as a mayor You set a good example of what a compassionate mayor should be like and how to run a meeting and and I thank you for everything you did To all the city employees Thank you for being so warm and welcoming From my first day in the council. I always felt like I belonged I have a special appreciation for all of public works employees Who work all hours of the day and night keeping our streets open our drains open And making every effort to keep the water in the ocean They pick up the trash and still find time to hang christmas lights If you've ever seen something broken and the miraculously miraculously it's repaired chances are public works has something to do with it I cannot say enough about our police department We are living in a difficult time of real appreciation and need to remember to acknowledge the people who put their lives at risk every day We were all once kids. We all played together We all grew up and we all chose careers We are the same people Police officers are just the ones stuck with the responsibility of enforcing the laws that we may or not agree with For that I am sorry and I will pray for unity for all of us I've been fortunate to work with four city clerks Three finance directors three community development directors three police chiefs two legal firms But only one public work director and one city manager All of you have brought great skills and talents to the city and improved on the work of the person before you Steve and jamie. I have no one to compare you to I do know steve that you've always been here and as crazy as my ideas have been you always found time to listen to me Advise me and in some cases actually find a way to do what I ask and for that I am extremely grateful It's no secret that I believe our city manager is a great asset to the city of capitol I have challenged him for eight years and sometimes put him in a situation No city manager would ever want to be in He always maintained and even keel and led the city through many difficult times including rent control The broken pipe and flood and now the pandemic He always found a way to stay the course Several people have been personal supporters of mine Well, at least most of the time And even though I can't mention them all I can't leave without acknowledging a few Glenn and karna. Thank you for your friendship support and the best campaign sign ever on your roof Ted Burke we have fought like cats and dogs But in the end the city local business and the kids all won TJ welch and his wife Connie The man who brought me to this town He was the best planning commissioner a resident in this city could ever have I am happy and fortunate to have them as my best friends And to my girlfriend of 10 years Jennifer Cosgrove I met her at paradise beach grill and with the help of a chicken quesadilla the rest is history We've shared a glorious time in this beachside town. She has stood by me through thick and thin She endured meeting after meeting public comment letters to the editor and the newspaper Tonight it all comes to an end We can go back to sunsets walks on the beach and a glass of wine on thursday nights Cheers capitola and thank you mayor Peterson for allowing me to share these final thoughts Thank you councilmember botcher a round of applause You've truly been an asset to our city and and as others have said this is this is not goodbye This is see you around Hopefully uh quite often Fantastic. All right. Well Councilmember botcher if you're you're going to be a part of this This next item And that is consider a resolution Inferming and approving the candidates of returns and results of the general municipal election Well for the last time I would like to approve staff recommendation We have a motion and a second if I could turn to staff briefly just for clarification Do I need to go to public comment for these items before we get to general government or no? You could see if there's any public comment on this prior to the vote I'll turn it over to the moderator then Mayor Peterson, I do not see anyone asking to comment on this item Great. Thank you. All right. Uh, is there any additional council comments before we uh move on with the vote All right with that. We have a motion and a second. Can we have a roll call vote, please? Yes councilmember vertrand I approve Councilmember brah torp All right. Thank you councilmember story Vice mayor brooks and mayor peterson I Thank you that motion carries unanimously and with that I will turn it to our clerk as we have as excuse me as we have um Oh, excuse me My apologies. There will be a brief pause right now After our vote for staff to reorganize and the city clerk is going to let us know when we're ready to resume With item 3c Thank you everyone Thank you Thank you. All right. Hope to see you around Thanks for your patience everyone. We're just taking a moment for staff to reorganize some things within the council chamber And as soon as the city clerk lets us know we'll be right back in just a moment Thank you for your patience. Can everybody hear me? Yes, we can hear you. Okay. Thank you mayor Excuse me. I was just moving some things around We are ready to continue. Um, the next item is 3c go go ahead, please. Thank you All right. Yes, we are on to item 3c Oath of office ceremony for newly elected and re-elected council members And I'm going to turn it over to the city clerk who will be administering the oath of office For in the order. I say on the agenda will be myself Followed by our new council member margo keiser Yes, thank you Our current mayor and soon to be new council member Kristen peterson. We're doing this in order of votes received. So we will go with you first If you want to raise your right hand and repeat after me, I'll read the oath slowly and then you can repeat as we go, okay Wonderful. So I state your name I Kristen peterson do solemnly swear or affirm Do solemnly swear or affirm that I will support and defend That I will support and defend the constitution of the united states The constitution of the united states and the constitution of the state of california And the constitution of the state of california against all enemies Against all enemies foreign and domestic Foreign and domestic that I will bear truth true faith and allegiance That I will bear true faith and allegiance to the constitution of the united states To the constitution of the united states and the constitution of the state of california and the Constitution of the State of California that I take this obligation freely that I take this obligation freely without any mental reservation or purpose of evasion without any mental reservation or purpose of evasion and that I will well and faithfully discharge the duties upon which I am about to enter Thank you and congratulations. Thank you. Is Margo ready? Ready. Wonderful. So we'll do the same thing. You can raise your right hand. Great. I state your name. I, Margo Kaiser. Do solemnly swear or affirm. Do solemnly swear or affirm. That I will support and defend. That I will support and defend the Constitution of the United States and the Constitution of the State of California and the Constitution of the State of California against all enemies against all enemies foreign and domestic foreign and domestic that I will bear true faith and allegiance that I will bear true faith and allegiance to the Constitution of the United States to the Constitution of the United States and the Constitution of the State of California and the Constitution of the State of California that I take this obligation freely that I take this obligation freely without any mental reservation or purpose of evasion without any mental reservation or purpose of evasion without any mental reservation or purpose of evasion and that I will well and faithfully and I will well and faithfully discharge the duties upon which I am about to enter discharge the duties at which I am about to enter Thank you. Congratulations. Thank you. Congratulations, Council Member Kaiser. Would you like to say a few words before we move on to the next item? Sure. Just quickly, I wanted to say thank you for all my supporters and putting your trust in me people that endorsed me helped me hang door hangers, posters, signs, things like that it truly from the bottom of my heart has meant a lot on this new venture and I can't wait to work more closely with the community and really get behind Capitola and our comeback from COVID. Let's do it. Thank you so much, Council Member Kaiser. We're going to move on now to Item 3D, Council Reorganization for 2021. This is the point where council members nominate and elect a new mayor and vice mayor for the coming year. Before we move into hearing motions on this item if I may take a couple moments to speak to my reelection in my year as mayor. I felt very blessed four years ago to have been elected to Capitola City Council and at the time I lived on Depot Hill and I would stand at the top of the hill and look out over the village and it was this overwhelming feeling of community and gratitude and I couldn't imagine having the opportunity to be a part of the Capitola City Council. I was lucky enough as I mentioned previously to spend the whole year that I was running in 2016 learning from Council Member Botwork and his time as mayor and in my years on the council I have got to witness and learn from and be a recipient of the knowledge and experience of all of the mayors that have come since then. Mike Termini and Stephanie Harlan and Jacques Bertrand. Sam, I wasn't around when you were mayor but the time's coming. So I want to thank everyone that I have served on council within these last four years because I have learned so much not only about what it means to be a council member but about being a good community member, about being a good person, a good friend, a good leader and I could not have asked for more in that regard and I want to thank everyone who has supported me in my original election in 2016 and my reelection in 2020 especially this year because it was a difficult year for people to campaign or support candidates and so I am so very grateful for every single person who has supported me. No one accomplishes anything alone and I am certainly no exception to that. I also want to take this moment to thank my family. Everything I have ever been or ever will be is because of my parents and my family, my extended family to my partner Nick and all the support that he has provided to me. I simply could not have survived the last four years and especially not this year without that kind of loving support. Speaking specifically to my year as mayor this year it was so different than I expected it would be. It was a year of challenges and difficulties and I certainly learned a lot about crisis management and I am grateful for the support of our city manager, of our vice mayor, vice mayor Brooks for all of the support and assistance that she has provided me of all the frantic phone calls. She both vice mayor Brooks and city manager Goldstein when things looked like they were just piling up this year but at the same time I could not be more grateful to have had the opportunity to be the mayor of this fantastic city and I just want to express thanks to my fellow council members for entrusting me with this responsibility this year and to all of our residents. And to all of our residents. It's really been an honor to be your mayor this year and I'm excited to continue to serve on your council in the next four years. Mayor Peterson, before you go, not go very far. Before we move further with item 3D I'd just like to say a couple of words about you. I believe there's a little package you have in front of you before you open it. I just wanted to say tonight I have the honor of recognizing Kristen Peterson for all of her hard work as mayor for the city of Chapitola and what I would describe as one of our city's most challenging years. Kristen's dedication to our community and its members is clear. She's a champion of women and for equity. She has dedicated endless hours to keeping Chapitola healthy and vibrant and even takes the time to call her neighbors to simply check in. Kristen has continued the practice of past mayors to ensure that all voices in our community are heard and valued and always speaks the middle ground when conflict arises. And a small community like Chapitola connectivity and transparency is essential. And this past year you could count on Kristen to forge a path forward as our city faced a worldwide pandemic fires and huge budget deficits. Kristen has been and will continue to be a leader I aspire to and I'm humbled to sit next to her on the dais and on Zoom. Thank you Kristen for all that you do and will continue to do for our beautiful town of Chapitola. Do you want to open the gift? Yes, I have a box that was delivered to me today. It says Kristen Peterson Mayor City of Chapitola 2020. Congratulations Kristen on your newly your reelection and thank you again for all that you've done. Thank you. I'm so I'm so grateful. Thank you so much. I'll make this quick because I know we need to move on but I think it's just a funny story. As I was getting ready today I was looking at a candle holder I have in my house and this might come as a surprise to many of you. But years ago I competed in the Miss Santa Cruz County 2005 pageant and got the Miss Congeniality Award and so I think it's funny that when I looked at that and saw Miss Congeniality 2005 and then I look at this and see Mayor of Chapitola 2020 and I think wow what a difference 15 years makes. So again thank you very much for the opportunity to have this year of service. Madam Mayor. Yes, oh I'm sorry. Maybe before we move on I wanted to just recognize your year of service as mayor. So invariably it seems like every mayor confronted with a particular challenge of difficulty during the course of their 10 years. But in all my years I don't believe I've seen a mayor that has been confronted with such a challenge that has been so dramatic that it's been so shifting and has been so persistent. And I just want to tell you how much, I mean I have appreciated how well you have handled the COVID pandemic and the changes that it has brought and how you have guide and led us through a whole new way of being. And you've done that with great confidence and I think great calm and composure. You've almost made this seem normal. So I want to thank you for that and to recognize what you have gone through. And on top of that you ran a reelection campaign and were reelected so congratulations. And I look forward to continuing to serve with you. But thank you for your year of mayorship. And always remember, once a mayor, always a mayor. Thank you. Thank you, Council Member Story. I appreciate that. Council Member Bertrand, you have your hand up also. Yeah, I'd like to say that I think anyone listening to our City Council meetings and seeing you run the meetings would say, hey, just like Sam said, everything's normal. So you transformed what was rather chaotic around everyone in this town and you made it feel that this city had it under control. And I think that took a lot of warmth, a lot of character. And I've seen you grow over this year. This year has been hard for you in many ways, a new job, comfort of a new, excuse me, partner. I mean just many things that many people was fine. I'm going to only focus on that, but you had to focus on so many things, no matter who, no matter who zoomed in our meeting, they thought Capitola was going steady on. And you're the one that did that. Thank you. Thank you, Council Member Bertrand. That's really kind. I really appreciate that. We are on, we are still on item 3D. And so this is a time for city council members to nominate and elect a new mayor and vice mayor. I think we're going to start, we're going to do this in two. So we're going to start with the nomination of a new mayor and then I will turn it over to the new mayor and we will move on to the nomination of a new vice mayor. If I may, Mayor Peterson, I would, it's my honor to nominate Vice Mayor Brooks as mayor for the next year. I'll second that. We have a motion and a second. I think it's a very smart motion and a second. Do we have any public comments on this item before we vote? Mayor Peterson, we have one comment. Supervisor Brandt. Thank you, Mayor Peterson. Thank you, Larry. I'm very excited that the council has chosen to nominate Vice Mayor Brooks. This entire county's been making history this year and the city capitol is no different. I'm not mistaken. It'll be the first Latina mayor in Capital City history and what an amazing thing to have happen tonight. Vice Mayor Brooks, you as council member Bautork had noted are just a breath of fresh air, remarkable energy for the city capitol and for those of you who don't interact with me that much, a fierce advocate to the county on behalf of the city capitol. Vice Mayor Brooks does not take no for an answer. In fact, she doesn't really ask. She tells you how things are going to be. That's exactly the kind of representative that the city capitol deserves. She's going to be an outstanding mayor. I fully support this motion and appreciate the opportunity to address it tonight. And also welcome the new council member Margo. Looking forward to working with you too. Thank you, Supervisor Friend. Do we have any additional public comment? I'll turn it to our moderator to let us know. Mayor Peterson, I do not see any additional public comment. Great. With that, we will bring it back to council. We have a motion and a second. There's no additional council comments. We have a roll call, please. Council Member Bertrand. I agree. Council Member Kaiser. Council Member Peterson. I. Council Member Story. I. And Mayor Brooks. Hi. Thank you so much. All right, I'll turn it over to you, Mayor Brooks. Congratulations. Thank you very much, everybody. As before we take it to the second piece, I'd just like to say just a few words. I just want to first thank my colleagues for making this happen tonight. It is my true honor to serve as your mayor for the next year. I wanted to share with you a quick story, and I know there's been a lot of them tonight, but I just wanted to share a quick story about my path into office. It actually begins when I was in fifth grade. I lived on a very busy neighborhood street in San Jose. Right across the street from my childhood home was a head start and a walkway to my elementary school. And every day I would walk across the street and Austin would think to my young self, gosh, this is a really dangerous road to cross and people need to slow down. And at that time I knew nothing about the city nor how it functions. And when I brought this up to my teacher, she encouraged me to write a letter to my city council about my concerns. But for some reason, my letter received traction and not too long afterwards, the city put up a slow children crossing sign. I could not believe it. I could not believe that something was actually being done and that my 10-year-old voice mattered. I could not believe there were others who cared just as much as I did about my neighborhood. And now as I think back to that experience, I realize that my success could not have been achieved alone. It took the encouragement of my family, my parents, Carol and Oscar who are here tonight, the teacher, the city officials, plus a little determination of my own for that sign to go up. It took all of us together to be able to do good. It was a true testament to democracy. And that is why I sit here before you tonight to simply continue to do good for you and others in the community. Capitola is an amazing community, one that I believe people can only dream of. And it is my honor to be part of it. I intend to help our city find balance and security as we move through the pandemic and begin to rebuild. It is so important to me that we focus on supporting all people in our community and focus on equity in all aspects of our city planning. So thank you again to everyone. I see all of my family and friends on the Zoom panel members list there. I see my beautiful, smart daughter Sedona and my supporting husband Larry. Thank you for being here tonight. And congratulations to our newest council member. I look forward to working with all of you. So with that, I'll go ahead. And for my family who's watching, you may go now. You guys don't have to stick around. But for entertaining a motion for vice mayor. I would like to make a motion for council member story to serve as vice mayor if he will accept that nomination. I'll accept that and I'll second that. Great. We have a first and second. Can we have a roll call please? Council member Bertrand. I agree. Council member Kaiser. Aye. Council member Peterson. Aye. Vice mayor story. Vice mayor story. Oh, I'm, you know, Chloe kind of cut out. So. Oh, I'm so sorry. Yeah, I just wanted to say I accept the nomination and both. Yes. Thank you. And mayor Brooks. I congratulations vice mayor Sam story. Now we'll move on to items four for additional materials. City clerk. Do we have any additional materials at the time? Yes, we had several. There were additional materials for items eight C and eight D as well as nine C and nine D. Great. Thank you. Okay. Now we're going to move on to item five additions and deletions to agenda. The manager. Are there any changes to tonight's agenda? That was no changes. Okay. Thank you. Next item we have is item six for public comments. Do we have any public comment for items not on tonight's agenda? Mayor Brooks, I do not see any attendees with their hands raised and I do not see any emails. Seeing none. We'll move on to item seven city council and staff comments. This is a time where city council members and staff may have questions about what matters of a general nature or identify issues for staff response or future council considerations. You have a video have two minutes to speak at this time. Do we have any city council comments? Okay. I'm just checking for any hands. I see none. Any staff comments? Mayor Brooks, I do have one announcement I would like to make. First, there is an update on the pandemic situation or a county that's in your agenda packet on consent. I'm not going to pull that off, but I would like to thank everybody that I know this has been a very long and difficult haul for all of us. More than nine months into this situation and I think it's been getting old. But I just wanted to stress that at no other point in the pandemic have we had as high prevalence of this horrible disease as we have in our community now. This is really the opportunity for everybody to double down on their best behavior. The hospitals are filling up and now is not the time to break anyone's attention. In addition I also just wanted to briefly announce that the county of Santa Cruz today submitted their plan on good news. Their plan to the state of California for the vaccination program. In that plan they talk about he's going to be the first people to get it and they do expect the very first deliveries and the small people in the broad community but this will be for folks who care for people who are suffering from COVID. initial delivery coming up next week. So very exciting time and I really just encourage everybody to redouble their efforts and understand that hopefully there is light at the end of this time. Thank you Jamie. Okay moving forward we're on to item eight consent calendar. All items listed on the consent calendar will be enacted by one motion and the form listed below. There will be no separate discussion on these items prior to the time the city's council vote on the action unless members of the city council request specific items to be discussed for separate review. Item pulled forward, pulled separate will be considered following the government, our general government. Are there any council members who would like to pull an item on the consent? Okay I don't see any. So any members of the public who'd like to comment on any of the consent items? Mayor Brooks I do not see any attendees asking to comment on this. Okay so then I'll go ahead and ask for a roll call though. I'm sorry has there been a motion? Yeah I'll move the consent calendar. Thank you. Second. Thank you. Now maybe we have a roll call. Yes council member Bertrand. I agree. Councilmember Kaiser. Councilmember Peterson. I apologize. I. Vice Mayor Story. I. And Mayor Brooks. I. Thank you that passes. Now we're gonna move on to item 9B fiscal year 2021 budget update. Can I have a report from staff? So before our finance director gives the report I just want to interject a little bit, give a little bit of context here. The first thing I will notice is that overall the news is good, which I think is really a testament to the hard work with this council and the entire city has done over the last nine, 10 months. You may recall that we had a grand jury report recently that was talking about how cities need to manage risk differently and personally I had a slightly different take on that analysis and what I have always taken away from all my experience working with cities is the number one thing for a city to do to respond to threats and risks is number one is to be adaptable and to take action and decisive action when necessary and make decisions. And I want to commend the city because we did that at the front end of this pandemic. We were faced with very difficult financial decisions. We made those difficult decisions that has put us in a far stronger place than many other cities around the state. So with that I want to turn it over to Jim, who is going to lead us through this presentation this evening on the mid-year budget update. Jim? Thank you, Jim. If I may, Jim, before you start, I just had a question about as a point of order, did we skip over either 9A, which is the review initial, council appointment? Vice Mayor's story, absolutely. I'm keeping you on your toes tonight, you know, as a vice mayor to keep me in line. Well, I think it's at your discretion, whether you want to proceed with 9B or and come back to 9A, but... Let's go ahead and do that since Jim is online here. Thank you so much, Vice Mayor's story. Thank you, River. Let me take one moment to share my screen. Can everyone see that line? Okay, thank you. As City Manager Goldstein just mentioned, this is our first quarter update. So to just go over a couple of the highlights from the first quarter, our sales tax is performing very similar to last year. So this year, we're slightly below $2 million of sales tax revenue. Last year, we were slightly over. So this is much better than we anticipated nine months ago and where we could be right now. This puts us at 16% above our adopted budget. And if you recall, we had reduced our budget this year by 21% from the prior year. From transit occupancy tax continues to outpace projections year to date, we received a little over 635,000 compared to about 718,000 or 18,000 last year. That represents 80% of our amended budget, which is just a little below 800,000. And if you recall, our adopted budget had reduced this revenue by 71% from the prior year. We saw better than anticipated numbers coming in early. So we had amended that in September to equal 50%. And we're still outpacing those projections. Parking revenue is also being better than anticipated. We've received a little over $316,000 this year versus just slightly under 438,000 in the prior year. That represents 74% of our adopted budget, which as a reminder, was reduced by 50% from the prior year. On the expenditure side, our expenditures are down a little over $725,000 from the prior year in our tracking on budget. As far as a review, so my qualifying statement before we start running to this is on the taxes, our revenues, we would be comparing for a quarter 25%. All other items that we talk about, we went ahead and ran numbers through October just because they're available and wanted to have the most current data. So again, taxes look at 25%. Everything else we should be bouncing around 33%. So you can see taxes are right on schedule slightly below last year, but doing much better than anticipating. I think that says 3% like screens will keep your hand. Licenses and permits are flat. They're only at 16%, but just last week, we sent out our business license renewals, and we started receiving payments this week and those signals will continue through the middle of January. So that number will look better the next time we talk about this revenue source. Intergovernmental revenue is way up from last year, and that's primarily due to the $125,000 of care spending that we got. And we receive all of that. Charges for services are down. We anticipated this. So although they are down, they're about where we expected them to be. Plans and forfeitures, basically the same thing down slightly from the prior year or down a little bit from the prior year that the tracking on budget with what we anticipated and uses of money and property also down that's really interest earnings driving that. So we have the same cash balances or similar cash balances this time of year that we had last year. It's just the interest rates of 10 dollars. And then other revenues are tracking right along with about where we had anticipated they would be. So as of right now, total revenues, 26% of the budget that's being brought down a little bit artificially low by the taxes. Again, those revenues will catch up property tax was due today. So we'll see those payments going to be the city towards the end of this month early January. And then we're only down a little over a half percent for where we were this time last year. So staff is going to be recommending some proposed revenue budget amendments. Those will total a little over $1.4 million and $700,000 of increased sales tax. $333,000 of TOT that's the non restricted portion that stays within the general fund. Increasing parking meter and pay station revenue by a little over $214,000. The TOT revenue that's restricted for early childhood and youth programs increase $8,700. And the TOT restricted for local business increased by $9,900. And we were also awarded a grant SB2 grant. So we'd like to amend the budget to be able to recognize that revenue $160,000. There'll be an equal amount on the expenditure side so that we can execute that grant. We do have a couple of decreases proposed. Totally 180,000 that's recreation class fees. 175,000 when we first adopted the budget or preparing the budget and spring. We weren't really sure what we were going to be able to do with class fees. And we have so many different things going on in discussions with the recreation supervisor. The expenses for this revenue source are really tied to the revenue. So we kind of let that one just stay pat to see how it would perform. It's not able to do as many classes that we hope to do so within a request to reduce that revenue by 175. And similar on the sports fees. We just can't have the not able to do those things. So another reduction of 5000. So the net proposed increase to the revenue budget is $1,246,246,246,457. As far as comparing this year to last year on performance, I have some selective revenue sources on the left column there. The next column over is our budget, how much we reduce the Bradley Burns measure on measure up or each reduce just a little bit under 21%. To see again, originally it was 75. It's amended to a little bit over 50%. Parking was 50% reduced. And then the other two other three categories next. Or that next column over actual first quarter, that's our performance. So Bradley Burns, believe it or not, is actually a little bit higher right now by 1%. But measure on measure up are lagging a little bit 10% and just under 12% respectively. And look, I want to let me go across from the top now. On the recommended new budget, what we're talking about, not minus 10% is lending the budget to be basically 90% of the prior year. So we are going to take this to just over that 10% reduction. And on the measure on measure up, that we can just under 17% on those for TOT and then I have the dollar amounts on the right hand side. The TOT right now are actual performances down just under 10.5%. So the new recommended new budget would be a reduction or 75% of last year, reducing it by 25% from the prior year, which is better and increase over there on the right hand column center, 32,000 parking, we have reduced originally by 50%. Actual performance is just under 19. So we are recommending to take that to a reduction of 25. The recommendation classes in sports, again, we didn't do a whole lot of that just to see how that would play out. We're down almost 90% there. So we're suggesting to reduce that by 68.8. See if we can do some different things in the first quarter and then we can revisit this one at our next budget review. Excuse me, state grant revenue, that's just putting in that SB2 grant, we didn't have anything budgeted, we didn't get the grant till after the budget was adopted. And then our other general revenues, it's down 54%, a lot of that timing stuff, it's a lot smaller dollars. So we're just going to kind of keep track of that as we would in a normal year and then come back at the next budget review, which would be the same as our mid year in a normal year and see what recommendations we need to do at any at that point. So in total, our current budget on these revenue sources was reduced by just under 22% actual performance a little bit over 12. So we'd like to take that 21.8% down to 13.7 and increase revenues by the 1.2 million as I stated before. I'm going to do a quick expenditure review. So again, these, that percent of budget in that third column or middle column there, we're comparing against 33% of the year personnel, well, it's down from the prior year. If you recall, we make our PERS UAL payment a lot of some payment at the beginning of the year, it enables us to save about $50,000 over the course of the year rather than same monthly. So that number will snooze out as we get deeper into the year. But that that was a $210,000 increase this year. And that's what's making that number look a little bit high with that lump sum payment contract services down. That's one of our biggest areas that we've had 486,000 and tracking pretty much on budget training and memberships are also down and tracking a little bit better than budget. At this point, supplies also down tracking on budget and internal service and 25% we do those transfers into the internal service one quarterly. So that's why that one should say 25% so that's right on target. So total expenses are 38.2% of our budget. Again, that's bumped up a little bit from the CalPERS UAL. And percentage wise down, we are down 12.2% from the prior year. And I'm going to turn it over to the city manager and he's going to go through some proposed expenditure budget amendment. Thank you, Jim. Okay, looks like some of my highlights stayed on this screen. It's all right. So there's a number of new expenditures that we are proposing at this mid year budget point. One key one is the lifeguard contract with the city of Santa Cruz. We have been in discussions with the city of Santa Cruz. And we expect to bring a contract for services for lifeguards to city council in January. And so we would recommend making a budget amendment now so that we have the resources necessary to pay for that. In addition, you may recall that we cut out our contribution to the regional homeless action partnership. This is a partnership between all of the cities in the county that's been going on for more than two decades, involves everybody, all the cities contributing a proportional share based on population for the winter shelter, each winter, as well as for the biennial census, and some other miscellaneous costs we do regionally in our homeless prevention efforts. The 20,000 does not represent capitalists full contributions in the half. But it is 50% of our typical contribution. And I am recommending it at this point, because these regional collaboration, this regional collaboration has been going on for so long. It's important and obviously, to the extent that capital is not contributing, it certainly weakens that collaboration in the future. We are also suggesting a $500 per council member training budget. You will call this was cut entirely last spring. In particular, there are a number of virtual conferences that I know that could be valuable, particularly for our new council members to participate, new council member to participate in, as we all start to learn the ropes of new positions. So we are recommending a $500 per council member training budget for the remainder of the fiscal year. We have $20,000 that we're suggesting to the janitorial services to augment public works. You will call we did this at the last quarterly update. It's proven to be very effective in freeing up our crews to do more kind of a heady lifting work. And the janitorial service contract has freed them up from needing to take care of the public restrooms as frequently. We're also suggesting $5,000 to begin some fire suppression planning for the Eucalyptus Grove on Park Avenue at the city owns. This is something that came to our public works director's attention during the lease of the fires this summer. That probably we can do more in terms of long term planning developing some sort of strategy about how we manage that open space. Then in addition, we are proposing $450,000 that goes into our ISFs. I'm sure council is well aware that this doesn't actually involve spending the money. This is transferring the funds into these internal service funds. These internal service funds are intended to smooth out multi year acquisitions. And so in a sense, when we wouldn't put funding into those accounts this year, in a way a bit of deficit spending in the sense that we are still incurring costs to pay for equipment, vehicles, things like that each year. By not funding it, we were really just pushing those costs into a future year. So we are recommending that $150,000 transfer. We are suggesting $2,500. The city of Santa Cruz has a lifeguard tower that they've made available to the city of Capitola. We're actually still negotiating with them on price. We're hoping that if we do end up getting it, it would be less than $2,500. But at this point, our towers are quite old. And we believe that the city of Santa Cruz's extra tower is actually in better shape than anything we currently have. And then lastly, we're proposing $160,000 amendment related to the SB2 grant. The SB2 grant you'll recall is funding from the state to help with housing production. We are you will call in the grant that we have identified tasks associated with developing design guidelines. What do we call them? The design guidelines that not subjective objective design guidelines that will allow us to review and potentially hold up multi residential and residential housing to objective standards. In addition, we're developing some some plans for prototypical ADUs to help streamline the path for new ADUs. So that's this is simply amending the budget to recognize that revenue as well as also making available some revenue for city staff to work directly on the grant. Next slide, Jim. In addition, as you'll notice later on the agenda, as we have new MOU agreements with our employee groups, we are proposing to increase personnel costs for $112,000 to the remainder of this fiscal year. That is associated with two things. One is ending the furlough and implementing cost of living adjustments for employees, as well as also filling one of our vacancies in the police department and offering a promotional opportunity for a new sergeant. The ongoing cost for all of these changes would actually total out to, I believe it's, help me out here, Jim. The ongoing cost is, I guess, close to $600,000 for these things. So I think it's a good to think about those in terms of the $600,000 expenditure. We are not going to incur that much cost this fiscal year because there's only six months left until this fiscal year. We are also decreasing some of the revenue, sorry, the expenditures that we have in our budget in the recreation department. These were expenditures that are associated with our, the contract employees to teach our classes because the classes aren't taking place this year. We won't be extending those funds. So, overall, the net increased expenditures comes out for this fiscal year of $767,000. With those changes, we anticipate that we will be increasing our general fund balance by just under $500,000 this year, which would leave a fund balance at the end of this fiscal year of $1.5 million. With that, I'll turn it back to Jim. Thank you. So just to go over a couple of final things on the funds here for our other funds, internal service funds. This is showing, as Amy mentioned, this is transferring money from the general fund over to the ISS. So this is just the other side of that transaction, recognizing those funds moving over. In the general plan update and maintenance fund, and these are special revenue funds where we can only make expenditures for allowable items within those specific funds, is to increase expenditures by $25,000 for planning and housing consultants to work on the LTP Coastal Commission certification. And also in the Supplemental Law Enforcement Services Fund, increased expenditures by $50,000. We've been slowly replacing, or we had a plan to slowly replace radios in the police department. When we took a look at this fund, we realized that we hadn't been spending all of our money in past years. So we wanted to pull, we built up about $75,000 fund balance, plus we get about $100,000 a year. So we want to utilize about $50,000 of that fund balance and just replace all radios in at one time. Village parking. Each year the BIA, if you know, requests to suspend parking meter and safe station operation from the day after Thanksgiving through Christmas. Council has authorized this in prior years. This year, at the number of their 12th meeting, we did not approve suspending the parking meter and safe stations for this holiday this evening. But council requested staff to return the evening for further discussion when we have a better idea of what budget members look like. If we decide to council decides to suspend parking meter and safe station operation through Christmas, estimated revenue loss is between $5,000 and $10,000. And I understand that we could have that approved operational by the end of the next Monday at the 13th. All of these items, the village parking as well as all of the budget review and staff's recommendation. We had a special back meeting with past Tuesday and all of these topics were discussed. And the finance advisory committee made three recommendations. The first was to accept staff's recommended budget amendments and adopt the proposed resolution. The second was to set aside somewhere between $400,000 to $600,000 as a COVID contingency to ensure the ongoing operations and delivery services throughout the pandemic. And the third was to implement pre-parking in the village through December 22. Just as a reminder, as far as our schedule, staff plans on returning to council in January to go through the city council goal setting. Our next budget date is going to be March 11. I just found out today that we will receive our second quarter, which is October through December sales tax data on February 22. That's normally when we would do the mid-year budget update. But I think it's worth waiting one more meeting to get that data and do that budget review March 11. And then just as a reminder, March 1, we will begin our budget process for fiscal year 2021-22. So recommended action this evening is to receive the fiscal year 2021 first quarter budget update and adopt proposed resolution amending fiscal year 2021 budget. Consider fact recommendations and provide direction to staff on those recommendations and then any additional direction to staff regarding any other budget changes. That concludes my presentation and I'm happy to answer any questions. Thank you, Jim. Thank you, Jamie. Do we have any council questions at this time? I see Vice Mayor Story's hand up. Thank you, Mayor Brooks. Jamie, I guess I wanted to ask about the finance advisory committee recommendation that set aside $400,000 to $600,000 for COVID relief. I was just curious about the mechanism for that. Are they proposing to take it from our projected year-end fund balance and kind of make a restricted account? Tell me more about that recommendation. So I think that is basically the recommendation was that you know, we do have members of the finance advisory committee who can chime in here. I will just give a brief overview and then either Mayor Brooks or Councilmember Peterson, you can chime in. My understanding was that understanding that the potential for further shutdowns or further economic impacts for COVID are still real that we would set aside between $400,000 and $600,000 to buffer those impacts. And Jim and I have talked about how best to do that and I think that there would be a couple of choices for council. Probably the most easy way to do it would be similar to the way we set aside funding for the employee first time home by our program, the $300,000 through a designation process. Alternatively, I think we could return in January with a resolution to move it into the contingency for a limited period of time and then it could be moved back out if it wasn't needed. And Mayor Brooks and Councilmember Peterson, if you have anything else add from the facts recommendation, please correct me if I'm wrong. I heard it all, Jamie. The only thing that would have to be discussed tonight is where, how much it would be. I think Jim was able to kind of look at the numbers of what we initially needed to put aside and came up with this kind of range. Was that, is that right Jim? Yes, that's right. Okay. So we're, I'm not sure if there are any other questions on Vice Mayor's story. Okay. Thank you. One other question about the SB2 grant. It was listed that there may be some staff cost of about $20,000 to $25,000. Will that be chargeable to the grant? Yes. Yes, okay. Thank you. I see Councilmember Tran's hand up. Thank you. Thank you, Mayor. Yeah, I like the idea of this parking card to the merchant. So I look forward to that report from Cal. I believe you're working with Cal to determine how that would work out. I guess my only concern is hope it's not abuse. You know, I think it's a good idea. In terms of the sales, text sales consultants that you're going to be meeting with. I'm very interested in the results of that because if our projections turn dire, this could be an early warning that we're going to have to adjust fairly soon. And then I wanted to understand about the new rules for the executive system, excuse me, and the there's some half-time positions, rest coordinator and executive system rules. So I didn't understand is there full-time or half-time or half-time being converted to full-time? I just want to the clarification of that. So the position, the two half-time positions that we are currently recruiting for in City Hall are the deputy clerk and the new personal analyst. But those positions would place the executive assistance who recently retired. Those positions were authorized, I believe, at a meeting last month. Maybe in September. So they're actually, they're not, they're not for a vote this evening. Okay. Just want some clarification there. Thanks. Sure. Are there any other questions? Councilmember Bertrand, I do still see your hand raised if you don't. Yeah, I've got to get to them. Thank you. Any other questions? Okay. Seeing none, if we can, if there's any questions from the public. Mayor Brooks, at this time I do not see any hands raised from the attendees on this item. Okay. So we'll go ahead and close public hearing and bring it back to Council for discussion and action. Jim, do you want to pull up the FAC recommendations so everyone can see that again? Greatly. And I see Vice Mayor Sam stories hand raised. Oh, here they all come. There we go. Vice Mayor Story, would you like to begin? Thank you, Mayor. One, I think this is quite a relief from what we were looking at last spring when the pandemic that first hit us. And so, you know, with that, I would like to make a motion that we accept of the FAC recommendations concerning the budget amendments as well as to accept of finance advisory committees recommendations to have a COVID set aside account in advance that we should have my further you know, reductions since we're still in the midst of the pandemic. I would like to also recommend that we direct staff to look at setting aside 600,000 in that with that range as well as to approve the three parking in the village starting December 13th and three December 25th. I'll just state that as a motion. I'll second that. We have a first and a second. Thank you. I almost said Mayor. Sorry, Council Member Peterson, your hand is still raised. Do you want to add anything to that? No, I was just going to comment on the FAC unanimous recommendation to implement the free parking in the village for the next two weeks. So I want to thank Vice Mayor Story for his support of that recommendation from the FAC. I think it's really important for the business owners and the general consensus in the FAC was that, you know, this is a time of good will. They weren't able to have free parking for the first two weeks, but the next two weeks would be a good opportunity for them. And so I want to just reiterate that that that was unanimous amongst FAC members and to thank Council Member Story, or excuse me, Vice Mayor Story for including that in his motion. Wonderful. Thank you. We have a first and a second. We're still open for discussion. Council Member Bertrand. Yes. I just want to thank the FAC for weighing in on these recommendations of the COVID Contingency Fund in particular and certainly supporting our continual support of the merchants downtown during this time with the free parking. Great. Thank you. And I see Council Member Keiser's hand raised. Thank you, Mayor. Yeah, I appreciate all of these things coming to us with great knowledge and we're definitely having to change things up this year and think a little outside the box. The parking, I am a huge advocate for. I'm really glad we're bringing that back to light. With that said, I think it's something to be looked at maybe for next year while we still may be coming back from this financially to possibly sort of implement a little more restricted parking or figure out a certain time of day that that will get more people down there, say, at night when there's less people down there. It's cold. It may be raining, but during the day, as Ed had brought up last meeting, you know, people that aren't spending money are coming and using this reparking. So we want to utilize it, but also maybe streamline it a little bit. But I'm stoked to have it for the rest of the month. I think it'll be great for the merchants. Thank you, Council Member Keiser. Let me have a first and second. Can I have a roll call, please? Yes. Council Member Bertrand. I agree. Council Member Keiser. I agree. Council Member Peterson. Aye. Vice Mayor Story. Aye. And Mayor Brooks. All right. Just because it was my first meeting, I had to shake it up. So now we're going to go back to item 9A, review initial council appointments. At this time, I'll ask for a staff report. Yes. Thank you, Mayor Brooks. I'll be providing the report. So if you give me one moment to switch hats here and share the slideshow. Okay. One moment. Okay. Thank you, Mayor Brooks and Council. Can everyone hear me? Great. Thank you. So this is just going to be a brief report. We're hopefully going to go over just a few appointments that Council has to make for city advisory bodies as well as some regional bodies that you yourselves sit on as our representatives. So just a brief overview. The city here in Capitola, we have established multiple city advisory bodies on which citizens sit as your representatives for more specific topics such as the Art and Cultural Commission, for example. Whereas there are multi-jurisdictional advisory bodies either in the county or regional where members of Council themselves serve as Capitola's representatives for more bigger picture issues and topics. So I think we're all familiar with that, but we wanted to just do a brief overview. Tonight, we will be making a point. You will, excuse me, be making appointments only for advisory bodies that have meetings in early January. We wanted to take care of this now and then we will come back in January at that first meeting, the City Council meeting on January 14th to finish this item and provide representation on all boards, committees, and commissions that will be having meetings in 2021. So tonight, the appointments will be for the city bodies on our planning commission and the Art and Cultural Commission for the multi-jurisdictional bodies. There are just a few that I'm not going to read because we're going to talk about them one by one. So I will just ask the Council to affirm or to make their appointment. It doesn't need to be a full roll call vote each time. So each slide has a different commission, board, or committee. And if anyone has any questions, please feel free to ask. Oh, and I believe actually, I'm so sorry, we wanted to go to public comment just on the basic item first and then we'll go through each one. Thank you, Chloe. So at this time we'll go ahead and I'll ask the moderator for if there's any public comment. Mayor Brooks, I do not see anybody any attendees with their hand raised for comment on this item. Great, thank you. We'll go ahead and return back to you, Chloe. Thank you. So our first City Advisory Body, like mentioned, the Planning Commission. Technically all five seated commissioners, their terms are expiring. Four of them are considered incumbent commissioners. They're listed here with their corresponding Council Member Appointee, Appointer, I should say. They have all indicated their interest in continuing on Planning Commission. The new Council Member Kaiser has yet to make an appointment. That would be done tonight. We received two applications. Their names are listed here. One from Paul Esti and a second from Susan Westman. Their applications were included in the agenda packet and so there was time to review those. So what I think would be easiest if our current Council who's been seated before would like to affirm that they want to reappoint their incumbent commissioner. We can run through that first and then we'll have Council Member Kaiser make her appointment. Is that all right? That sounds great. Okay. So Mayor Brooks, would you like to reappoint Courtney? Yes. Wonderful. And how about Vice Mayor Story? Would you like to reappoint Mick Ruth? Yes. Thank you. Council Member Bertrand, your appointee is Ed Newman. Would you like to reappoint him? Definitely. Thank you. And Council Member Peterson, your appointee Peter Wilk. You want to keep him on board? Yes. Thank you. Yes. I've had a good work of relationship with him and I'm excited to have him on the planning commission. Thank you. So that's great. And then I'll turn to you, Council Member Kaiser. I'll be appointing Susan Westman. Thank you very much. Okay. So for our next city body, it's even easier for art and cultural commission four out of the seven members have expiring terms. However, the terms they don't, they need to be renewed, but they can do as many terms as they'd like moving forward. There's no term limit. So they're listed here. There's two at-large members, one artist, and one art professional member that have all indicated their desire to continue. Since it's just the council as a whole that makes these appointments, you can all affirm that you're all right with these four. And I just wanted to point out we did not receive any new applications for this commission. So let's just run through in affirming. Is everyone all right with that? Yes. Okay. Great. I'm going to take that as a yes. Thank you. And the next few are multi-jurisdictional advisory bodies on yourselves, sit on these boards, commissions, and committees. So I'm just have a basic overview of what they do when they're meeting, the first meeting in January, and who is currently on this board, commissioner, committee. Most of them, you're not terming off. We just like to reaffirm every year that you want to continue as the representative. So for the advisory council of the Area Agency on Aging, it's a lot of A's, an advocacy group for the elderly. This is meeting in January, and Jacques Bertrand is our current representative. Is that all right, or do you want to change it up? Yeah, I'll continue. I had a meeting today. As a matter of fact, but I would like to point out, as far as I know, Carolyn has left the board as an alternate. So we do need an alternate from this group. It'd be nice to get someone from the city council as an alternate. Wonderful. It doesn't have to be. If you're interested in senior issues, this is a great way to get involved. Okay. So now that we know that's an option, are there any council members interested in becoming an alternate for the particular commission at this time? Okay. Doesn't seem as if there are any. Maybe this is something we can post, Chloe. Absolutely. Okay. I'm making a note of that. Thank you. Thank you, Councilmember Bertrand, for letting me know about that. Our next board is similar. Again, if you want to continue, you may as the representative. However, you'll note that our alternate has is no longer seated on council. So we will need an alternate for Ambag who provide leadership for counties and cities in our area. And their next meeting is January 13th. Is anyone interested in being an alternate and Councilmember Peterson? Would you like to continue? I would like to continue. Thank you. Okay. And I'll be the alternate. Thank you for your patience as I'm taking minutes and presenting here. Okay. So for the Santa Cruz County Sanitation District, a similar spiel here. The current representation is Councilmember Bertrand and Vice Mayor Story. You are the alternate. I apologize that the next meeting is actually not until January 21st. However, generally they do have the first Thursday meeting, which would have been before council. So you have a little break, but I'd still love to know if you want to continue on this board. Or this district board, yes. I'll be glad to continue. Today, as a matter of fact, I went on a tour of the facility, so it keeps you busy. I'm happy to continue as you are alternate. Just a few more. And in this case, we do have, you know, Councilmember Bartow of no longer on council and his term had expired. So we need, we'll need a new representative for the Santa Cruz Metro Board that I believe works with the RTC as well. So this is the transportation agency in our area. I'd be happy to take that feed if there's no other interested councilmembers. Does that have an alternate, Maya? I don't think an alternate would be problematic. I didn't see one noted, but it's always a good idea. If you're interested, I can write, I can note that. Well, maybe we can advertise for an alternate, so I just don't know. I will get back to you. I will check on that. And in this case, this is previously known as, I'm totally blanking on the previous name, but it's now Central Coast Clean Energy Policy Board because it's expanded outside of Monterey Bay. This is our community choice electricity provider. And the representative will be technically appointed by the County City Selection Committee either end of this month or early January. The first official meeting is February 17th, so whomever from City Council is interested will be appointed by the City Selection Committee. So I am interested in this position. Okay, wonderful. Thank you. And I think that could be the alternate if we need that. Or is it supposed to be from Council to alternate? Yes, I believe that that is fine. And I spoke with their board clerk, and she did mention they were looking for an alternate. So thank you. I'll note you down. Okay, cool. Wonderful. And I believe that's all. Good job. And this is just a preview for what we'll be taking on January 14th. There will be a few more city-specific bodies and about the same amount, multi-jurisdictional bodies, most of which we are just going to confirm that those that are serving are interested in continuing. You'll notice though that the Library Advisory Committee is the Council appointing a community member. So though we don't staff run that advisory body, it's regional, it is a community member, not a member of Council that sits on that committee. So if you have any questions from between now and January, feel free to let me know. And we are open. The recruitment is open for these listed advisory bodies. And with that, I would say thank you for your patience. Chloe, I believe we have a hand raised. Maybe if the question, Vice Mayor's story, did you have a question? Yeah, thank you, Mayor. I did have a question. My question was about the Council's appointment to the Arts Commission. Yes. I didn't see that on the list. And I wasn't sure, you know, on that appointment. I wasn't sure if it's up for renewal or our affirmation or if there was other Council members that may be interested in that. Are you referring to the, you serving on the City's Art and Cultural Commission? Yes. Okay. So I didn't see that your term was expiring. However, I will double check that. I did see that you were the current representative. Okay. Yeah, I was, yeah, I wasn't sure that there was a set, you know, multiple year term. So yeah, just check it out and bring it back to us with next thing. Absolutely. Thank you. I do see Council Member Patramb's hand raised. Do you have a question, Council Member Patramb? Yeah, I do. Since I went to a meeting this Wednesday, I thought the Santa Cruz County flood control and water conservation district was zone five. Oh, you're correct. Yes. Yeah, because I was there for zone five. Okay. I think that was a typo. So thank you for correcting me. Yeah, I waited five hours to get my time on the agenda. So thank you for that, Council Member Bridgecraft. Okay. So if the city manager can remind me of this, do we need a motion or? I think at this stage, you're good. Yes. Okay. Well, Chloe, do you have everything you need for this evening? Yes, that was perfectly done. Thank you. And again, thank you. That was a lot of information. I will turn it back to Council and to the mayor. Thank you, Chloe. Okay. We're going to be moving on to item nine C. And I have something that I need to read before we move forward. Is that correct? That's correct. Okay. So before the city council this evening as part of agenda item nine C is a recommendation for salary changes for the following employee group. Association of capital employees, confidential, mid-management, police captain, and at-will management employees. The at-will management employees consist of department heads and the city manager. The employee agreements before the city council would rescind the 6% COVID-related salary reduction and a 2.25% cost of living adjustment effective December 27, 2020 for the listed group, including department heads and the city manager. And at this time, I'll go ahead and ask for a staff report. Thank you very much, Mayor Brooks. Let me try and share my screen. Takes a while with this one. I hope you see that okay. So are you seeing the presentation? Just okay. Great. Thank you. So I'll go back a little bit back into 2020. We were not sure of what the obviously the budget impacts were going to be of COVID. So in April-May, we anticipated a pretty significant projected deficit of $4.5 million. So because of that, the city began negotiations on concessions with the employee groups in June and July of last year for agreements through December 26 this year. The miscellaneous groups, ace, mid-management, confidential, the police captain, as well as executive management, came to an agreement. They 6% salary reduction with a 40-hour additional leave offset, as well as no vacation cash out. The Capitol Police Office Association, the city, agreed on a 2% salary reduction in deferral of a contractual 2.25 COLA, which was to be implemented last July, but it was deferred until January of this year, next year. They also included a vacation cash out. Because we were coming to the end of those agreements, and as the finance director reported earlier, revenues have been better than projected. So we began meeting with the groups for new agreements basically to take us through the end of this fiscal year. The CPOA, the Police Office Association, have an existing contract. It was in place through June 30th of this year. The other groups had agreements that were actually ending on December 26th of this year. The existing CPOA agreement includes the following. Rescending the 2% salary reduction effective December 27, defer the deferral of the July 2020 COLA will be in place in January 2021. And there was also an existing 2.25% cost of living adjustment in January of 2021 as well. The vacation cash out suspension is still in place. The six month agreement with the other groups, ACE and management, confidential police captains, and as the mayor reported, executive management includes rescinding the 6% salary reduction effective December 27, 2020. And a 2.25% cost of living adjustment effective December 27, 2020. The vacation cash out suspension is still in place for those groups as well. And the city and the employee groups will begin negotiation on successor agreements for beyond the end of this fiscal year early 2021 as we get more information from our revenues or expenditures. We'll be talking with the groups at that point for longer term contracts beyond the six months we're talking about here. So at this point, the recommended action is to authorize the city manager to execute side letter agreements with the existing, with the groups, the association of capital employees, bid management, confidential employees, bargaining unit as well as the police captain, approve changes to the management compensation plan, which is the department heads, approve the sixth amendment to the city manager employee contract, and to adopt a resolution approving the new salary schedule. There was one update and additional materials for one position. In addition, no action is needed on the CPOA, the police office association agreement, because their contract was in place through June 30th of this year. And that is my presentation. I'm here to answer any questions if you have any. Thank you, Larry. Do we have any council questions at this time? Okay. Seeing none, do we have any members of the public who have comments? I do not see anybody in the public asking to comment on this item. Okay. So we can go ahead and close the public hearing and bring it back to council for discussion and action. I see council member Peterson can raise. I'd like to move approval of the recommended action. Second. So we have a first and a second. Is there any other discussion from council at this time? All right. If we can have a roll call, please. Council member Britrand. I agree. Council member Kaiser. I agree. Council member Peterson. I vice mayor story. I mayor Brooks. Okay. This item passes unanimously. Okay. Now we're going to move on to item 90, council compensation. And I have a report from staff. Thank you. Let me share my screen real quick. Can everyone see that? All right. Thank you. So by way of background, in September of 2019, you recall council voted to adopt ordinance number 1032, increasing city council's monthly salary from $500 to $600 monthly. This item was actually presented to the finance advisory committee and this increase is consistent with the recommendation that came from the fact. This would also be the first increase to council compensation since December of 2006. However, due to California government code, when council, the increase could not become effective until after the November election of this year. And the same California government code allowed any or all council members to waive compensation. Each council member should individually confirm compensation adjustments. In May, city council unanimously agreed to defer the increase and reduce compensation by 6% to be consistent with the concessions that were being made by the employees in the miscellaneous labor groups. And since it was unanimous, there was no change to the ordinance was required at that time. As we just heard the last two presentations on December 27, those employee concessions will be ending. And for the miscellaneous group, there will be a 2.25% cost of living adjustment. If council approves increasing the monthly salary $600 a month, the annual increase is $7,000. That's $6,000 in salary, $1,000 in benefits. And that's the entire council that's not the council member. I'll make sure that's clear. So our recommendation is to affirm that the city council's monthly compensation should return to the amount specified in the municipal code beginning on December 27, 2020. And just as a reminder, each council member should individually confirm compensation adjustment. And that concludes my presentation. I'd be happy to take any questions. Thank you. Do we have any council questions at this time? Okay. I'm seeing none. Do we have any questions or comments from our public about this item? Mayor Brooks, I do not see anyone with their hands up. And I do not see any emails on this item. Okay. I'll go ahead and close the public hearing and bring this back to council for discussion and action. I see councilmember Peterson-Fanrey. Thank you, Mayor Brooks. I just want to acknowledge that we did receive some public comments on this item via email with concerns about the percentage of the increase. And I want to address those concerns because I feel like generally when council members or any elected body increases their own compensation, that there may be questions or concerns about that. I feel like it's worth addressing that. As mentioned in the slide, the council hasn't increased their compensation in the last 13 years. And if council compensation had received the COLA in the way that staff had, then the pay for council would have been quite higher by this time. Of course, it's not necessarily always appropriate for there to be the same kind of increase every year for council as there is staff, as staff, as I say, are the experts. And as I've said before, council members were kind of jacks of all trade and masters of none. With that being said, I think it's also important to note, as was discussed in the fact, and I also want to point out that in the fact discussion on this item, myself and at the time Vice Mayor, now Mayor Brooks, did not vote on this item because we were impacted by it. But I guess at the time it was myself and council member, or Ben Mayer, or Khan, my apologies. I don't vote on that on the item, but we did have discussion on it. And in the discussion with the fact, part of the decision behind the idea to increase council compensation was that one, being a council member is quite costly at times. And it may be a little bit different during COVID times, but typically, there are lots of requests to come to public events where you have to buy a ticket, or to join someone for a lunch or a coffee to discuss city issues and all of those costs add up. And we certainly wouldn't want someone to not run for council because they feel that they couldn't afford to do so. So that was part of the discussion in the fact a year or two ago, certainly feels like decades ago, in 2020, as most things do now. But I just wanted to take a moment to comment on that and bring that up because we did receive question about it, that I certainly wanted it to be addressed. Thank you, council member Peterson. Are there any other council members with any comments? I should raise Mayor Story's hand up. Thank you, Mayor Burke. And I just wanted to add to what council member Peterson had just mentioned about the finance advisory committee and that this recommendation came through the finance advisory committee. And they did it through a comparable analysis study of similar communities in central California. And the region that's from $500 to $600 a month came out of their analysis and their recommendation solely. And so that is the basis that I had originally had approved it. I just wanted to add that in for the record. Thank you. Thank you, council member Story. Are there any other comments at this time? We're still open for a motion. I'll move the recommendation. Do you have a first? I'll second that. I'll second. Any other comments? Seeing none, can I have a roll call? Council member Bertrand. I confirm my vote. Council member Kaiser. Council member Peterson. Aye. Vice Mayor Story. Aye, and I confirm. Thank you, and Mayor Brooks. Aye, and I confirm. The motion passes unanimously. We're now going to move on to item 9E, consider approval of the contract change orders number 9 and 10 for the Capitola Branch Library Project. I have to report from staff, please. Good evening, Mayor and council. Item before you tonight is about the library, and I'm going to share my screen to give you a minute here, please. There we go. I hope we can all see the presentation. Like I said, the item behind you is a report we do periodically on the library project, which is still under construction. Tonight you will be asked to approve change orders 9 and 10 on the project. The current status of the project is how many best news we've had in quite a while, the conflicting power lines that had delayed construction on the project for approximately a year at this point have been relocated on the last line was moved on October 24, 2020. Auto construction, the prime contractor on the job is now working without delays with the full crew. They are focusing on both furnishing the exterior and working on interior work that had been delayed because we didn't have a waterproof building. The eve overhangs have been framed. I think that's part of the biggest thing you see as you drive by there now. And permanent power has been installed, and which allows us to start climatizing the interior, which needs to be done before we do the final finishes. The children's room is currently being climatized, and they have put in some of the finishes there are some pictures that we'll be showing you in a bit where I'll show you that. Pre-history on the contract change orders. Today, eight change orders have been approved for the city council policy on this project. We did adopt a special policy for approving change orders for this project because of the size of the project. The net total of the change orders one through eight have actually reduced the construction costs from the original contract by $446,135. The council will remember we awarded the contract and then went through a quite a bit of value engineering to bring the cost into the target that the council had set when we approved the project before we issued a notice to proceed. Change orders nine or 10, which were before you tonight, will add approximately $90,000 to the existing contract. Brief on the description of change order nine and 10. Change order nine is non-power line related. We're trying to keep this separate because we are trying to keep track of the cost of the power line conflicts of whole process. So these are not related to that. There's a $39,617 change order, approximately $19,000 of that was for unforeseen drainage improvements that were necessary. Essentially, there's some old drain lines probably date back to when the project was where the site was first developed as a large site at that time. Even though those drain lines don't connect or we don't know where they connect to, they still are producing water. And that water is building up behind the foundation, the library, so we needed to do some work to pick that water and make sure it got into the storm drain system. The Santa Cruz public library system has also requested some changes and or upgrades to the security systems in place. They're trying to get each system to be uniform across their many branches. That's a $20,000 additional cost. Now change order 10 is completely power line related as it costs $49,640. Just breaking that down, the roof and the beams that on the roof, we had to change how it got built. In order to get a roof on the part of the building that we had built already, we modified the roof trusses and basically took off the overhangs and had to bolt them back on. And the beams, the same thing with the steel beams that are go across the structure. So the deal was $1,000, another $22,495. There's quite a bit of going back and forth with PG&E that the contractor had to go through negotiating and making sure that their project was actually meeting the conditions. We, they did quite a bit of surveying to make sure PG&E was aware of how far their lines needed to be moved. So that coordination effort was $18,041. And it also required us how would we change the paving the parking lot. It intended to be done in one move prior to this winter. They would do it at the end of construction, come in and pave it with one four inch lift, one four inch section of pavement. Because of they're not finished, they're still driving heavy equipment over. But in order to make it better for the winter, they did one two inch lift, which will require them to come back and do a second lift at $9,000 for that. Those are the two change orders that are being considered tonight. I want to give a quick financial review. It's been a while since we've done this on the project, especially within new council members. These are the funding sources for the project. These numbers have not changed since this was last presented to you, but just revealing it. Measure S is $10 million that we received from Measure S. I think it was originally $10 million and we added another $269,600 in interest on Measure S. The successor agency, we've received $2.741 million from them. The general fund put in a little over one and a half million dollars. The friends of the library have raised $600,000, which has gone directly into the construction project. The county library funds have donated or not donated, but provided $510,000 and we've had $130,000 in investment earnings. In total, we have $15,803,997 in revenues. The project budget at this time has remained at $15,150,000, leaving available funds of $653,000 that have not allocated to the project that are available. On the expenditure side, the construction costs through construction change order number eight was $11,875,865. Constructions nine change orders nine and 10 are there adding in, which we hopefully will approve tonight. We have architectural fees one and a half million permits and special inspections at $150,000 project management fees for our project manager who is on site daily and we're running the project for the city a little under $300,000. This only any expenses or tree reports and other things of $18,000. Pictures furniture and equipment, which are all ordered and sitting in several warehouses right now are $408,000. The PG&E cost has been all around the place to remove the line, say ended up costing us $1,450, which is kind of scary that we had to wait a year to get that work completed. In summary, the project budget, we have $15,803,907 available. Total expenses of a little $14.3 million. So we have a current balance, this contingency of $1.4 million. We do have anticipated change orders still coming. A total of $651,000 of those, the anticipated PG&E delay cost are going to be about $300,000 this time we anticipate. So with that, we still hope to have remaining funds of close to $800,000 of this project. So here I have a series of pictures. We walked the site last week and just want to share a couple with you as we move forward. Here's the entrance. You can see the E-Pay Wood in place, the capital branch sign. Over here is the front door when that gets built, and over here is the community room. You can see it's quite a beautiful entrance to the building. This shows the siding that's going on, the majority of the building, and here you get a good look at the eaves that are finally constructed all the way around the building. Before they had already been constructed on mainly the side away from Orph Road and partially along the other two sides. So it's great to see that and give it to you. These doors, just for your information, will be the service employee entry doors. So here's going around the other side of the building. This is behind these windows is the children's area, and this area between this oak tree here and the building is where the large deck will be, and there'll be places to read out there. The top lot is just outside the picture to the right of the tree. This is the corner sign at the corner of Orph Road and Clear Street. I think just recently built, I wanted to share that with you, and you can see the scaffolding and the wires up here. This is the scaffolding that could not be built. I think we got to about the mid-level before, and now allows us to build scaffolding up to the top of the building in complete construction. Moving to the interior, I'm starting with the children's area. I started with this because it actually has the ceiling in place. You can see it's a slotted ceiling with a black background. These holes here are somatubes that are bringing light in, and these two actually have the diffuser. We were there on a four o'clock in the afternoon, and the amount of light provided by these was quite a bit. I won't say that this is the area that the art project for the building will be built. Leads will be hanging to try and bring the outdoors in. We'll be hanging from the ceiling. There's going to be a lot going on with the ceiling, while diffusers will have leaves and will have sprinkler heads. It should be quite beautiful when it's done. This is turning around from looking at the children's room into the community room. It's going to have the same ceiling here that is in the children's area. It's going to have a collapsible wall that goes across here so that there can be meetings and presentations going on here, separate from the children's area. But if there's nothing going on here and the librarians want to, they can open up this wall and make this part of the children's area. There's probably a small kitchenette in there with a sink and refrigerator, I believe, and the rest of this is storage for tables and chairs. This is the main room of the library. After you walk in, the ceiling here will be put in. It'll be the same ceiling that's on the children's room, except instead of being white, it will be a natural wood color. Remember, this is supposed to be the bottom of a boat and the design, so it will have a continuous running flats going down the ceiling. This is the corner and nearest to Warf and Clairs. It has a great view overlooking the Brisbane mansion. This area here is where the librarians desk will be, and over here is a series of meeting and conference rooms that will be available for users to use. So, with that, the recommended action tonight is to receive this report and approve contract change orders 9 and 10 with auto construction for the capital branch library project in the amount of $89,257,259. Let me try that again. $89,257. And I'd be happy to answer any questions. Thank you. Thank you, Steve. Do we have any questions from Council? I see Vice Mayor Story's hand is raised. Thank you, Mayor. Thank you, Steve, for that report and update. It's really encouraging to see that we've almost completed. And one question I have is, when do you project the ribbon cutting most like life? At this point, we are projecting a mid to late February completion of the project. We have the furniture being delivered making mid-February. That'll give them enough time to get through the change orders. So, at this time, I'd say the end of February is our target date at this point. Yeah, that sounds great. And one other question about the surplus contingency balance, will that, let's say, I'm assuming that it's $800,000, will that all be credited back to the general fund? Yes, it will. All right. Thank you. Thank you, Vice Mayor. I'm sorry. Do you have a comment? I was just going to add something to the response about Council Member Story's question about the ribbon cutting. The library JPA has indicated that they need about 60 days to sort of outfit and furnish the building. So, the contractor will be done in February. But we don't think that the building wouldn't be ready to open until probably the end of April. And that's, of course, contingent upon being able to open libraries at that point. But I just want to make that clear so nobody thinks that the doors are going to be open in February. Thank you, Jamie. Thank you for that clarification. Council Member Patren, did you have a question? Yeah, I was going to ask about that too, because the vacant building would be just the part of the first step, and then we have the building out of this. So, is there a chance for a tour? I didn't know there was a tour. I'd love to go see it at this stage, if that's possible. Yeah, we did manage to have a quick tour last week, and I'd be happy to try and set one up, but are still under COVID restrictions at the libraries or at the construction site. So, but I'd be happy to put something together. And have we reached out to the friends of the library group, giving them a tour? Or is that in the planning? They'd be very interested, I'm sure. Right, we're trying to keep the children small, but I'd be happy to talk to them. Okay, thanks, Steve. Appreciate it. Are there any other questions from Council Assistant? Okay. This is a time for questions from our public. Mary, do we have any questions? Dear Brooks, I do not see any attendees with their hands raised, and I do not see any emails on this item. Thank you. I'll go ahead and close the public hearing and bring it back to Council for Discussion and Action. I see my share of your intent. I just wanted to make a motion to approve staff recommendations concerning change orders 9 and 10. No second, no. Do we have a person a second? Any other comments at this time? Can I see none? Can I have a roll call, please? Council Member Bertrand. I approve. Council Member Kaiser. I approve. Council Member Peterson. I. Vice Mayor Story. I. Mayor Brooks. I. I. All right. Well, that brings us to the end of our meeting. We're on item 10 for adjournment. Thank you, Council Staff and Capitola. As what Council Member Peter Finch, she had a closing, so I worked really hard on this one. Please remember to find the good and others and yourself until next time. Good night. Thank you. Good evening. Hi. Thank you. Good night. Good night. Good bye.