 All right, I will call this meeting to order. Good afternoon. Welcome to our 4 p.m. November 29th 2022 Special meeting of the Santa Cruz City Council and I would like to ask the clerk to please call roll Thank You mayor council member Calentary Johnson Present older coming here Brown here Myers your vice mayor Watkins here and mayor Brunner Present. Thank you First up on our agenda is the consent agenda The last we're not required to have oral communications in a special meeting We're not required to and it's not agenda. It's so we don't have oral communication tonight I'd be happy to connect with you outside of this meeting I'm going to continue with the agenda our next regularly scheduled meeting December 13th. We'll have oral communications Thank you First up is our consent agenda. These items are number one and two on our agenda For members of the public who are streaming this meeting and joining us virtually Now is the time to call in if you'd like to comment on items One or two on the agenda instructions will be on your screen Please remember to mute your streaming device and raise your hand either by dialing star nine on your phone Or selecting raise hand in the webinar controls on your computer If you're joining us here in person You may line up here to the right of the dais my left and You can sign in at the clipboard so but it's not required All items will be acted upon in one motion unless an item is pulled by a council member For further discussions are any council members? Are there any council members who wish to comment on or pull any items? Okay council member Golder has a comment on number two Okay Okay Council member Cummings has a comment on one and Let me just check we have one council member joining us virtually go back to that screen Make sure council member Calentari Johnson your hands not raised. I don't want to forget about you there Okay, thank you. All right, so Let's go to our first comment Member Golder on comment on item number two. Thank you. Do you want to read what that is? So this is the resolution Excuse me to the purchase of Type one fire engine and I just want to say them happy that we're purchasing this I know that we've been having to borrow one from a neighboring agency and I'm just wanting I'm hoping that we have a replacement plan because It's a lot more money to be borrowing them than to have a replacement plan in place for the years to come They don't they don't last you know More than 10 20 years and so we I hope there's a replacement plan for the next There's more than one engine in the in the in the department, right? So that's off. So Thank you. Thank you Council member Cummings you have a comment on item number one Yeah, this As just preface I lost my voice because I'm getting over a cold So if you can't hear me that well, I apologize. This is a city Counseling community support of the UC academic worker strike and fair you see now bargaining requests and as a former grad student First I want to just thank all the grad students for their hard work on this Santa Cruz and many of the communities that have UCs are very costly and expensive for grads with students to live in and Pushing for fair contracts that allow people to have living wages and while they're I'm going to school and working at the UCs and trying to get their degrees I think is something that we've supported in the past and I'm thankful for the UC graduate students for bringing this to our attention and also for the support of Council in previous years and for the council members who've helped us on the agenda Thank you Okay at this point. I will bring it out to public comment and Let's see. I will just check to see if anybody virtually has their hand raised The name I am watching you go ahead and press star six to unmute yourself Okay, thank you. I support union rights to bargain for better pay and benefits for their workers However, public education unions have a bad record of taking member dues and sending them off as political Contributions hundreds of millions some of which went to lobbying for closed schools and mandatory masks for children And no abnormal mortal risk from COVID it punish students horribly possibly permanently Well, the teachers union seemed to be very unconcerned. I preface here by saying I have a very low opinion of UC I see and of public education unions You should be saying nothing and let the parties negotiate But no the progressives aren't interested in that they're interested in collectivism in all its forms you the city Administrators are supposed to represent the entire public that includes the individual right not to use collective bargaining Apparently that also doesn't include students or taxpayers that would pay for these demands This is more like one government entity in the peanut gallery urging a milking of that cash cow known as the public ever harder The government is a no competition monopoly and it's not a free market because of that All government administrators need careful budget examination for fair spending and fair comparison is to the private sector Which seems the appropriate line to hold for me I read a lot of these demands as outrageous and things the private sector would never agree to free transit passes Subsidies for the purchase of e-bikes full child care removal of foreign worker fees no Justification job security removal of discipline authority to third parties Hello, California has at will employment in the private sector I have no opinion on the salaries But the private sector would consider many of these people interns or newbie college grads at the bottom of the pay scale For some of those kinds of jobs doesn't college tuition cost enough Having students taken on enough crippling debt for them to attend The public's willingness to pay is always a question when involving the government the cost of living is irrelevant Thank you. I will now go to our next member of the public here in person Hi, welcome Hi there. My name is sam Hughes. I'm a phd candidate up in santa cruz and the psychology department I'm here to speak on behalf of both myself and my 48,000 other colleagues that are on strike We've been on strike for the past 16 days trying to argue in favor of Fair bargaining practices at the bargaining table so far there have been six complaints that have been sent to The public employment relations board that have been all ruled as valid that the university has engaged in unfair labor practices Involving things like changing our compensation without our consent or trying to pressure us to stop striking illegally These kinds of contexts are things that no public sector employees should ever be engaging in because it's actively violating the Standards that we use for trying to do good collective bargaining And so we ask that you use the pressure that you're able to exert as city council members in order to try and encourage The university to bargain fairly the only way that we're going to be able to live in an environment where Scientists and artists and writers and thinkers can come and live here in santa cruz and other states Other cities all across the state is if we have the kinds of wages that are necessary And the fair bargaining practices that we need to get them in order to be able to live here I thank you for your consideration on this particular item today Thank you Our next member of the public is virtual and the name is aviva Go ahead and press star six to unmute yourself Hi, can you hear me? Yes, welcome Hi, thank you for the opportunity to speak today. I'm aviva fields. I'm actually an alum of uc santa barbara I was a graduate student there in the music department Working as a teaching assistant for the five years that I was a student there And I have also been working with our union at The ucsf campus So I've been working very closely with the postdocs and academic researchers there as well as the graduate students And I mean my understanding last night is that the university and the teaching assistant the sorry excuse me the postdocs and academic researchers did reach an agreement But the You know, it still remains for the university to really meet The graduate student researchers and academic employees where where they need to be particularly on Compensation and a lot of these really important issues that allow us to do our work as the students who really Do the bulk of the work for this institution and People who are supported on research grants Um, you know this a lot of that the funding, you know really comes from the work that You know the students here and the researchers are Putting in the work themselves to to bring in that funding. Um and so yes, I thank you so much for Bringing this item to the agenda. It's great to see all of the the public support. Um, it's it's so important that people see this fight So yes, I I um, I hope this passes and thank you so much for your time Thank you for your comment It looks like that concludes our public comment I don't see anybody else in person and there's no further hands raised Firstly, I will bring it back to council for a motion on our consent agenda a second All right, we have a motion by council member golder Seconded by council member Cummings May we have a roll call vote council member account tarry johnson I older I Cummings I brown I Myers I'm in a register a no vote not because I don't support Workers in any environment, but I just not supportive and don't think this is really where the council should be putting its energy right now Thank you. So are you voting no just on one or? Vice mayor Watkins aye And mayor brunner. Hi The consent agenda passes unanimously aside from item one Six to one with a with council member meyers a no Okay. Thank you We will now continue on uh with our agenda and uh This is our next item agenda item number three Securing our water future resolution and policy guidance for water supply Augmentation to improve water supply Reliability for santa cruz water service customers Members of the city's water commission have been invited To attend this meeting for the below item. However, it's not a joint water commission city council meeting For members of the public who are streaming this meeting if this is an item you wish to comment on Now is the time to call in using the instructions on your screen We'll first have the order as a presentation of the item by staff Followed by questions from council I'm hearing an echo The order will be a presentation of the item by staff followed by questions from the council And then we will take public comment and return to council for deliberation and action and I would like to Welcome and hand it over to our staff Rosemary minard our water director welcome Thank you mayor and city council really It's the light to be here We've been working on this all year and we did bring you a study session in august about this topic So hope to Bring this forward as a proposal for you to take action on the policy direction today I have a A somewhat wordy presentation here, and I apologize for how wordy it is There's tons of words on these slides, but I want I'm not going to read them to you obviously But I did want them to while they're being displayed for folks who might be monitoring this You know virtually or what have you to be able to read them so people get the The audio some people get the visuals so Anyway, I forgive me in advance. I don't have to any charts and graphs. I I Completely mesmerized you with that the last go around in in august so no charts and graphs this time But I did want to let you know that I'm going to do the first three parts and then bob rousher Was an economist water economist that has worked with us on an economic impact analysis of the cost of curtailments Is going to give a presentation and then I'm going to come back and do a wrap-up So that's going to be the order and bob rousher is joined with some other folks And there are water other water people as well as water commissioners as the mayor mentioned earlier So with that I'm going to launch in So our purpose really is to create sound communities Management adaptive policy framework for what we want to need to do to improve our water supply reliability And the direction that we're hoping to get today and have you codified today relates to water supply reliability and the phase of supply projects to address our reliability problems and issues And its goal is to provide durable policy level direction That allows us to move forward We've been doing a lot of planning, uh, there's a lot of information And the materials provided that sort of lays out the histories of all of that planning And we really want to start moving forward now Continue to do planning, but it's time for us to start moving forward the key What I really want to um talk about today is sort of the key takeaways from the technical and policy work that we've been completing the policy development process The resolution and the policy itself the elements of that as I mentioned the presentation on the economic analysis of the Cost of curtailment and then a summary of what's changing and what we're proposing to replace from existing policy So the key takeaways are You know water supply planning inherently has a lot of uncertainty. I think if you were um If you're sitting where dwr department of water resources in the state of california is sitting right now You're feeling very uncertain about what's going to happen next year. You're telling folks around the state prepare for another Very uh low water use availability year You're hoping you're crossing your fingers that it's going to snow and that there'll be more water than we've anticipated But it's inherently uncertain And even if you're on a groundwater source, it's inherently uncertain because ultimately The surface water and the precip Precipitation the weather is affecting what what water is available Climate modeling as uh has been completed a lot of really robust climate modeling has been done in this process It's pretty impressive piece of work. I think that we've done using a really robust tool And it shows us that there are projected increases in the instances of longer dry periods This is our achilles heel for our water system because storage is our problem the limitation of storage Is our problem and you know filling it up when it's wet is great But if you have a six or ten year dry period, there's just no chance to refill it and that's a big problem for us um curtailment of demand as a drought response strategy Isn't a very effective tool in Santa Cruz anymore and we've talked a lot about that over the Last couple of years including what the work that we did on the water shortage contingency plan in 2020 and 2021 And I think that that is a uh a hard reality for us to deal with But I think that that is something that we've taken quite seriously and built into a lot of the analysis work we've been doing There are technically feasible options to Fix our problem They we've done a side-by-side analysis of some project concepts None of these options are low cost or even low impact with respect to energy intensity for example I think you've heard some things in the And some of the public comment you've received about the level of energy intensity and I don't deny that Some of these examples would have greater energy use than we're currently using But to do nothing or use curtailments as a drought response tool Isn't a low cost or a low impact option So that's where we are The process we've used involved as I mentioned completing the side-by-side analysis And you have a tech memo in your packet that showed the for the project concepts We looked at you know what their costs were what their what their description of the infrastructure requirements were the greenhouse gases the complexities of how they were you know be be developed The the pipes pumps, etc. That are required Um, and we have done that uh as called for in the water supply advisory committee's recommendations And I think that that's been a very good exercise for really sharing the state of these these kinds of options Project concepts we talked about in our process. They're not the only versions of any of those projects that are available, but they are they were available to us to Do the analysis on and we wanted to make sure that to get that information out So that people could see what those options are not to sort of hide the ball on any of them, basically Um, we looked at how these uh concepts these project concepts would reduce the supply deficits under some of the climate change and no climate change scenarios and we got a lot of data that we produced that Summarized some of that was summarized in the tech memo on hydrology and water system modeling. That was part of your packet Um, the policy that we developed really is uh, I think comprehensive. It's data driven It looks at the need for us to um be transparent and to actively work towards But to do it in a way that people know what to expect and so that's the that's the plan behind what we've done here And as mentioned the goal is to get something Uh, you know in place in a way that's visible. That's why Uh recommendation is to put it into your the council's policy manual That's visible that allows for ready access. So if anybody has questions about how are we going to go about this? What are the criteria that's been laid out? Um, we worked very extensively with the water commission and I want to thank them for what great partners they were through this whole year um hundreds of Person hours of work through the presentations lots of technical information great questions Great interaction on um and feedback that helped us shape this policy I think to a place where I feel really good about where it is and how it can help us to address the issues um, we talked about stress testing of the water system looking at a whole range of different supply uh, and and future climate change scenarios They were uh troopers in working with us on the whole the whole range of things that you see Um So the policy elements are basically five six basically there are the recitals which are the tell the story and People ask me Recitals and it's like it's a long and convoluted story And having that background in place really helps to Create the context that says, you know, we've been down some of these paths before we we're at a place now where We've done a lot of work and we need to make some decisions There's a set of findings that I think Came from the analysis and the realizations that have occurred Uh in all this work that's occurred over the last several years. I think those findings are uh legitimate and they are extremely important to as the again the foundation for the policy Um, we do have a reliability goal this time. I'm going to talk about more that more detail In a couple of slides. I think that uh, the goal here is really to make it clear make it adaptable um, and Purposefully design it to evolve As we understand more about how climate uh, is is going to impact our supply and availability The resource portfolio is really kind of stating the office obvious We have only what's here and these are the the options that are here are groundwater surface water Recycled water in some form and seawater. That's it. We don't have 20 other options These are the ones we have to work with. I don't think that any of them are in a place where they can be taken off the table There's not this this policy does not say which one to choose It basically says There are strengths and weaknesses and opportunities and constraints associated with all of these and we need to keep our options open because this is too important to Artificially limit what we can do Um, it includes a fairly robust set of criteria guiding principles values That came from the water supply advisory committee work and were amended to include uh affordability and equitable access to water provision that I think is uh, a key thing to have added and It includes some implementation guidance so that there's clear expectation on everybody's part about What kinds of things can be coming and that's that's the policy elements I mentioned a little bit about the recitals. Um, I I do want to say that Writing them and telling the story was an interesting. I you know thing to do to Realize how long we've been at this. This is a very long-standing issue in our community. It has a long history of Um failure of coming up to the edge of making a decision and then back And this is way before my time. It's way before the desalination meltdown that occurred in the 12 2012 2013 time period It's a long history of you know coming up to the edge and not being able to proceed And you know frankly, um around the country around the world. This isn't the exception That uh, it's it's pretty much the rule that this kind of stuff happens But I think where we are with our with supply reliability and climate change Makes that a chancey thing to continue. And so um, that's one of the things that I think gets told in the recitals um We uh, I think one of the other factors and we've talked a lot about this in the in the process of again making the Water shortage contingency plan updates in 2020 and 2021 We really have highly efficient water use our customers have embraced this in a way that Places us in a really great position in a lot of ways But also has a downside associated with it's not very easy And it's certainly not inexpensive for anybody to further cut their water use And I think that that's a place where we kind of um are it makes the uh potential use of curtailment Which has historically been a very very important tool for us Uh a lot a lot more difficult as a routine strategy um We have a lot of information that was some some of which was summarized in the tech memos about what's going on with precipitation temperature in history In history in particular that is very aligned with some of what we're seeing and some of the climate scenarios. We're looked at We're looking at Weather variability is the key driver for us In terms of the kinds of conditions that would be affecting what kinds of supply augmentation Volumes we need to create. It's not so much about growth I know that that's not that doesn't sort of line up in a lot of people's thinking How could that not be but when you see the fact that You know historically the longest drought we've had was 1987 to 91 and that was a four-year drought It wasn't a particularly deep drought Now we're seeing in some of the climate scenarios droughts that go 10 years And those are the things that are going to drive how much water we need to decide to make not Whether or not we have modest incremental I Think the reason that we're having a supply reliability goal is that we need to have a guide for the sizing of our Supplying implementation augmentation solution It's the way to say If you plan for the worst case then you have this much is how much you need to Build if you plan for something less than the work worst case and using Augment or curtailment as your strategy for when you have the worst case beyond that Then you can build something smaller, but you allow yourself, you know You have a risk there that you have to take and I think in the in the documents that were provided We explained why the worst case scenario was chosen Um, and we also talked a little bit about the fact that the difference between a sort of a 98th percentile in other words two percent chance that you would have something worse than that every single year The the curve is sort of basically going straight up at that point. Um, which means that the difference between a 98th percentile solution and a worst case solution can be three years of stage five Um We talked about uh using this data driven approach where we sort of assessed a A particular scenario that we've chosen a worst case A realization of a particular climate scenario Um, it's not it's not the only situation that's similar to that. It just happens to be the worst of those Of the ones we looked at anyway It's purposefully designed to be Um reviewed and adapted as we know more about climate In over the years at least every five years if not more recently more routinely Um, and it does not include the routine use of pertailments As a drought response tool for the reasons we're talking about the initial climate scenario Was selected from this range of plausible And moderate options It includes a two degrees Assumption of two degrees increase in temperature mean temperature a 10 percent A no change in precip me And a 10 increase in weather variability which we've already been experiencing And I mentioned here that uh, we have about a 2.2 billion gallon Shortfall in the last three years of this five-year worst-case sequence Um, the reason that it's just the last three years because all the storage gets used up Augmented system in the first two years and then you're left with nothing and then would have The last three years where we would have the stage five as the scale of those pertailments are huge Beyond 50 percent of total supply Um, as I mentioned, uh, I'm not going to go into this in a lot more detail. The water supply Purple is what's available here Um, we do have technically feasible supply augmentation solutions for all of the the The options the the source options we have The volume that's available for them the uh, reliability of those source options Uh, for example, upper storage and recovery Depends on having additional rain so that you can put water in the ground in the winter In order to get it back in the summer and obviously if it stops, um we uh The next item is this sort of a list of the guidelines and as I mentioned, we have a uh, a quite a robust set of Um writing principles primary evaluation criteria Additional considerations. I think this is as I mentioned came from the water supply advisory committee work I think it was a really great piece of work that that group of folks did recognizing that it wasn't it was more about establishing a process for thinking about this and evaluating the options and it was about Picking a particular option which we weren't ready to do at that time Um, and then uh, it includes as I mentioned the statement about affordability and equitable access that's in reflex the city's commitment to health and all policies And it's it's a near-term goal of producing about 500 million gallons of additional supply by 20 27 as a means of improving the resiliency and reducing the number of times that between now and larger solutions we have to Implement some kind of smaller stage curtailments just because we don't have a choice and we're not sure what's going to happen next And then finally the guidance, uh, I think the a real big goal of this one is to figure out how to translate this policy into action and make it clear what we're all going to be doing next Um, I want to emphasize a commitment to exploring and pursuing partnerships with other regional water providers seeking to increase supply and or address groundwater sustainability issues So looking and we have very strong regional relationships already So the goal here is to do more of that and make sure that as we're looking at what our solutions are that To the uh, uh, degree that we can cooperate that we can, uh, really In Santa Cruz county. We're all in this together. Okay here. I want to turn this over I'm going to stop sharing my screen and I'm going to turn this over to Dr Bob Rauscher who is as I mentioned as a Economist with 35 years of experience on water economics issues Been in consulting firms for years. I've known him for probably 25 years myself And I know he's worked a long time with Santa Cruz including as one of the consulting that was consultants who was working with the Water supply advisor committee between 2014 and 2016 so uh, as we got looking into the Realizing kind of where we were with some of the climate Change issues and recognizing that you know the often the go-to strategy if you sort of make your solutions less than the full worst-case situation as you use for tailments And so we wanted to really understand what was involved if um, that solution were pursued and so we asked um, Dr. Rauscher and his team To uh, basically do this analysis for us. I'm going to let him share this with you Uh, thank you rosemary and thank you city council members for this opportunity to Meet with you this evening Uh, as rosemary said, we've done this study on the economic impact of water supply for tailments Um, really is a way of looking at you know, one of the important benefits Of having water supply enhancements There's a lot of information about what it costs to bring different potential new sources into the the city's portfolio And and uh, this analysis provides some metric of looking at You know, why why it may be worth Doing that I'd also like to acknowledge my uh, my colleagues carolin wagner and colleen donovan They don't have speaking roles here, but they uh contributed significantly to the analysis and the report so You know in looking at what the value of avoiding water shortages would be We've developed the report and I think that's in your packet. So there's more information there I'll quickly run through um in my presentation what our objectives and approach Were and um and focus a bit on the curtailment stages. I think it's important to understand How much water would need to be? How much water use would need to be reduced under the various stages and how that's distributed across different customer classes to really understand how much uh Basically water conservation would need to be Imposed and effectively reached to Keep the system from running dry under different scenarios Uh, I'll provide a quick overview of the different types of impacts on households But most of what we looked at were the uh, the business related impacts And and really kind of focus on the key findings And there'll be an opportunity for you know questions and answers and discussion at the The end of the whole session uh A lot of what the whole water supply planning effort Is about is about managing risk And risk is defined as probability the probability of adverse events times the consequences that arise if those events occur and rosemary talked About the work that's been done largely by the The researchers at the university of massachusetts on climate Scenarios and related shortage outcomes And you know, basically the city and the utility have a limited ability To control, you know, what what the weather is and how much water nature provides In contrast the the consequences or the cost of failure are Provided an opportunity to Have some control based on on how you prepare to manage those risks And those risks can have some some high negative impacts So we know that the cost of water contaminants can be large There's a lot of foregone regional economic activity that might occur Business revenues are reduced And as we'll discuss there's a reduction in the economic output through the businesses and Located within the service area in the city With the resulting impacts on jobs incomes tax revenues and so forth um And while we're focusing mostly on this kind of business Impact related impacts. There are also losses to residential customers Some of it is is pocketbook issues from having to pay Drought impact fees and excess use penalties and we'll touch on some of that later but You know, there are also other other losses in a loss of enjoyment for those who You know cannot maintain their their yards and gardens as they would would have hoped lack of access to irrigated turf areas for Picnicking or recreation and what have you and you know when we Can reduce these kind of impacts by having a more secure water supply You know those reduced impacts really reflect one of the important benefits of having an augmented supply Um, and it all boils down to the old adage attributed to ben franklin about when the well is dry We know the worth of water Uh, so the methodology involves um, kind of a standard economic approach of modeling regional economic impacts Using what we call an input output model and the model we use as implanted. It's a very widely Used a long-standing model initially developed by the federal government And what it does is it track tracks all the ripple effects through the local economy when spending Or or other events change in in one part of the economy and how that works its way through And there are direct impacts, uh, for example, if there's a water supply Fertile mints and restaurants need to reduce Their water use they'll Inevitably need to scale back their operations reducing what we call their economic in Output or their revenues and their value added That creates indirect impacts You know the restaurant Owners and proprietors will reduce how much Labor they can afford to to keep on staff Reduce the amount of local food stuffs they purchase and other supplies that they Pay for from local vendors And it will ultimately reduce the income that's earned by both the restaurant employees and the owners And then ultimately there's an induced impact because the employees and owners have Reduced their purchases because their household incomes are reduced And the businesses that they would have otherwise supported have been Go through their own cycle of impacts And so this is what the impacts consist of And we will add them all up and talk about the total impact economic impact Uh, when we when we talk about, uh, curtailments It's really important to understand where your water use currently is And how that's distributed across your your many customers So, um We're looking at peak season demand because that's that's really where the The problems arise in shortage scenarios And that's you know 1.36 billion gallons Um Per per the six month peak season And that number will will come into play because every A curtailment stage reduces it is looking to reduce water use overall by 10 percent Or a tenth of that that amount So you'll see the 136 million gallons Used in in the analysis later on But looking at who uses the water currently based on Data from I believe 2016 to 2018 You can see the the blue light blue The biggest biggest chunks of this pie are your residential customers the medium blue here and the orange That's about 60 percent of of water use is going to households And then about another 20 percent is the light blue Slice of this pie and that's for for businesses And the remaining Portions are kind of split between the university and municipal uses and irrigation and so forth So when we go back to looking at curtailments, you know, this this these are where the cuts It gives you a perspective on where the cuts need to come from The curtailment policy Was updated in 2021 And it's contained in some documents that are You know available through the through the water department and But it's significant significantly more restrictive than the the version that was in place in 2016 For example, at stage three the household limit Has been reduced from what had been 10 ccf per month ccf is a standard huge unit of measurement for how much water is used um, and it was 10 ccf in 2016 now it's four ccf would be the target in 2021 and um The community has had some experience with this new policy in 2021. There was a stage one curtailment implemented And the water department found that 30 percent of the households exceeded their limit of 5 ccf So provides a sense of how difficult it will be if you get to some of these higher stages to Accruely the amount of water We'll give it a minute Is he out of the country? That's mania. Okay. He's I think we lost him. We'll yeah, that's wait a second Um, I'm gonna have uh, maybe We have a couple questions. So sure. Okay I oh, sorry Vice mayor Watkins I just was wondering if you could Explain the difference between like what is irrigation and coast irrigation that was what in the slide Oh, coast irrigation is um agricultural irrigation by north coast customers who use um, typically raw water So that's uh, okay Yeah, got it. Okay anybody else maybe we should Their questions. Yeah, we can He's there, but not quite With us stop sharing his Are there any other questions? Okay Go ahead councilmember Cummings. I have one question that um Someone brought to my attention which was you know, we have kind of What has historically been called the norm in terms of how much precipitation we're expected to get but As we start seeing more and more drought years at what point does the historic norm kind of Change and we have a new norm that is kind of less precipitation. Is there A certain amount of years where we have to have a certain amount of like lack of rainfall to that to trigger I I think that um after the october 3rd water commission meeting. I might have sent through to you a Link to a slide presentation by Sean Chartrand If you had a chance to look at it It's a it's a presentation he gave at that meeting that talked about hydrology and it was mainly about the historic hydrology Trends we've already been seeing and what he's been what he shows in that presentation And I I have it open and we can I can bring up a couple of slides from it later, but What he shows in that presentation is a that we're already sort of in a new trend, right? From what we've been historically and that we're not only Seeing warmer Warmer minimum temperatures not so much warmer maximum temperatures more more minimum temperatures and a definite change in rainfall patterns From you know, something where we might get two or three inches, you know, november december january to A few storms, which you know, clearly last year is a great example of that, right? a big Storm at the end of october a storm A couple storms in december Got our reservoir back to 90 by kind of the end of february And we didn't get it almost a drop of rain in january So this is a pattern that we've already sort of shifted, which is one of the reasons why this vulnerability we have to You know longer dry periods is really alarming to me in the role that I have and the responsibilities that I have for ensuring that you know adequate supply for our customers Um I'm back if you want me to continue. I'm sorry. It's somehow we got this back. Thank you. Thank you Yes The joys of remote remote work and zoom So I don't know how much of this came across before but Basically talking about pertainment policy. It's been updated since 2016 and is is Much more stringent than it then had been in the previous version household use Being limited In stage three for example to four ccf whereas before it was 10 ccf in 2021 You know 30 of households Exceeded the the target limit of five ccf when stage one her channel was imposed these We're looking at some significant action that would need to be taken um And uh, if you don't augment your supply Then pertainments are really the only tool available to the water department and the community to to keep water flowing um And the whole notion of the pertainments and the way they're designed are to prioritize public health and safety above of other considerations And the water savings that are that would accrue, you know Probably wouldn't be enough to sustain the the supply through a multi-year drought such as Had been experienced or projected in the future um And for households the excess use penalties, uh can can get quite large And there's some figures on that in our report But the whole intent is not to penalize people per se or uh, but it's really to create the right incentives to to make it so that Households or or others Can't just say well, I'll just pay and use the amount of water I want Because they do do need to ensure that the water enough water is available to me, you know critical public health and safety needs um So of each each pertainment stage Looks to reduce overall water use by 10 percent increments. So stage one is 10 percent reduction stage to 20 percent And and I'll quickly go to the other stages where we focus our analysis But just a quick glance here. You can you know the households Have kind of a proportionate reduction target that You know to the overall level businesses have have a lesser reduction For example businesses at stage two are looking to See their water use reduced 10 percent whereas community-wide we're looking at 20 percent So with the intent to kind of keep businesses operating as best as possible um And a lot of the bigger reductions in turn come from outdoor irrigation from golf courses And landscape irrigation When we get to stages three four and five we're really getting into some very significant Reductions in how much water is available for for households and businesses and so forth to use And you can see for example landscape irrigation You know that gets reduced to 75 percent of less water and then by stage four all all landscape irrigation is eliminated um one thing to notice for use csc is that They currently use about 21 percent of their water allotment for Irrigation so when we get to stages three and higher now they're cutting into their indoor uses for dormitories food services and so forth and You know, it's it's quite likely that as we get to these higher stages They may have to switch to remote learning in order to meet their water Use targets So the message here is that there's there's a lot of water use reduction required in these higher stages And and that will have impact these different different sectors considerably So for households Based on what we've seen In 2021 and the fact that the the target levels of use are quite low compared to What we've seen historically that there may be a lot of excess use penalties imposed on households And while that reduces the disposable income of residents, you know That will have an economic impact on the community as households now have less money to spend on other things And we look at that separate from how we look at the business losses You know, it turns out when we look at it that it's a relatively small impact less than 1 increase on what we get from the other sectors, but For some households that that household budget impact could be significant. And so that's something to to keep in mind For businesses we look at how water use restrictions can or you know Ultimately reduce their level of business and their economic output which essentially is or net revenues And that reduced output Scenario then gets run through the implant model to look at how that reduces earnings for labor and proprietors How it affects employment levels tax revenues and so on And one of the key sectors Involved would be the tourism businesses Accommodations hotels motels restaurants and other food services are key focal points And i'll i'll show a little data from the pandemic from a study done by the state that provides some insights for us And there are numerous other sectors that we look at through through the non-residential sector And this slide provides the list of the ones that we focused on Now back to the There was a study done By the state the state agency visit california using the same sort of modeling approach and they they provide data on tourism related spending by county and if you look at their their report for 2022 and look at the difference between 2020 Versus 2019 to reflect the impact of the pandemic Which you know ran through like three quarters of that at 2019 total spending in that sector went down nearly 50 percent But earnings and jobs and local tax revenues went down were reduced by about 23 to 28 percent and then looking back at the The city of the departments Water use data we we could see that hotels and restaurants collectively used about 28 percent of us water So this this provides us a kind of a a benchmark of how water use is is related to The economic activity levels within this important sector And so this this is the The nature of the approach we used in modeling of How water curtailments would affect these different businesses and affect their their output So for example in stage four for the hotel and restaurants sectors We're looking for you know 20 some percent reduction in water use And we would expect that that reduce their output by 20 to 30 percent And and we used ranges throughout that's why it's 20 percent at below and 30 percent at the hot upper end And we did that for the different stages for the different business sectors and results You know assuming a 20 reduction in hotel and restaurant sector business reduces economic output in the service area by about a hundred million dollars a year About a one percent reduction in overall citywide output Uh results in about a thousand job losses and a reduction in city tax revenues of 2.8 million So in in our report, we have several tables And there's a lot of numbers here and I will Just touch on a few of them and we'll use some of them later in the presentation to Provide some key points But you know here we show the total economic impact on the business sector Results for stages three four and five For example, we're looking at stage four the amount of economic output lost is You know the 324 million per year at stage four up to Over 500 million dollars per year And that's Essentially a three to five percent reduction in the overall economic output of the community And associated with that would be a loss of jobs 3200 plus to over 5,000 for five to eight percent of the Jobs in the community and loss of tax revenues eight to 12.7 million, you know, which is a seven to 11 percent reduction And that may be A little high because the the modeling includes some special districts tax revenues. So Capturing a little bit more than what's Strictly city tax base So so those are our big picture results and one of the things we did is because there's uncertainty throughout this type of analysis was conduct some sensitivity analyses We included some other Business sectors that we didn't include in the main runs Where that were less that that might be a little less water intensive And that increased the economic impacts by about 14 percent And we throughout because the emphasis on is on preserving public health and safety We didn't include medical service sector impacts Um, though that is a large water using sector and creates a lot of economic value Because medical services are costly The household impacts that I mentioned earlier had a relatively small impact on on the economic output and so forth Um, and then we also looked at including county level impacts so What happens in the city itself? as Effects that trickle out to the to the county as a whole and that increased economic impacts by about 10 percent So if you put them all together, um, you know You could get cumulative impacts that were about 25 higher than we've reported here Um, and this is really where the rubber meets the road is Um, trying to look at these results and and share some insights on what this means for How much value you would get for Enhancing your water supply So we look at the changes or the incremental impacts of moving from stage to stage so, um, this focusing here on What if you could avoid a stage four a year at stage four and keep it at stage three For that you would need 136 million gallons more than you you would otherwise have So what what would it be worth to have that 136 million gallons available in that year? And the change in the economic output is about 210 million to 260 million plus When you look at it on a a dollar per million gallons provided, you know, that's 1.5 million to 1.9 million of economic output Value added by having this additional water We also present dollars per acre foot because that's another metric that's commonly used So we'll put that in perspective here in a minute so um, you know as I just ran through the benefits of Avoiding a stage four level pertainment and being able to limit it to stage three and both of them are are pretty pretty severe pertainments, but Just being able to keep it at stage three rather than stage four saves you that 200 billion plus in economic output it's also Enabling you to avoid job losses of 2100 to 2500 plus jobs And it also enables you to avoid losing tax revenues in the six to seven million dollar range Um, and so that's that's where you get the the 1.5 million to 1.9 million dollars of benefit per million gallons of added water And um, you know, if you also want to look at it in terms of job savings and tax revenues You know that's shown here as well the 15 to 20 jobs and the 44 000 plus in added tax revenues per million gallons And to put this in context Um, the water supply augmentation options that are being evaluated currently by the city They all cost less than 36 000 dollars per million gallons produced And that's the highest the high end estimate for the most expensive option that's that's being looked at currently So to put that in in some perspective those water costs are about two percent or 150th of the potential economic impact benefit um, so essentially if you can in 50 year period avoid One level four curtailment and reduce it to a level three curtailment Um, it's it's a breakeven proposition Um, we went through this making several conservative assumptions We didn't consider for example that businesses could relocate of you know cities based businesses that Are suffering because there's not enough water for them to conduct their normal business might close permanently and or relocate elsewhere Which have more longer term negative impacts than one year Uh, a new or expanded business might be motivated to to locate elsewhere rather than in the city And the household disposable impacts are not included here. Um, so they're relatively small And finally, um, you know, our work is is consistent what we've seen in some other studies Taking this the same approach for example, uh Piece of work done by Dave Mitchell in 2008 for east bay mud in the bay area Found that a 15 percent curtailment versus a 25 percent curtailment you know resulted in in essentially a 19 Billion plus a loss in economic output um And that if they Basically added 8 billion gallons to their supply they would Save about 2.4 million of output per million gallons added so that 2.4 million compares to the 1.5 to 1.9 million That we we derived So that i'm done. I'll turn the screen back over to rosemary Thank you to talk a little bit about the uh, how how what how what policy is being replaced I think you've seen some things in some of the public comments about um old, uh Policy so to speak and I wanted to take you back to where that policy came from 2003 integrated water plan work that was um It used a well-established sort of beliefs cost planning approach that treated uh supply And water conservation demand long-term demand management active actions on the on you know equal plane Ultimately were recommended a three-part strategy that involved 300 million long-term demand production conservation efficiency improvement Routine curtailments Of up to 15 percent which was stage two of the 2009 plan with uh, but did not involve rationing Those curtailments are mostly voluntary reductions in one and a two and a half million gallon acidity desalination plan that was to be developed as a regional project with so-called creek water district And the plan there was they were going to use it to augment there to get off their groundwater pumping and Create the additional supply in their aquifer that was Water out and we were going to use it They would stop using it then go back on their groundwater and we would use it in the drought period obviously change but by the time we got to the to You know the work we've done most recently what we're seeing is um That we basically have a billion gallons in demand reduction the level of demand in 2002 2004 was 3.9 billion gallons a year It's 2.5 billion gallons a year now So a bit roughly a billion gallons of demand reduction a long-term demand reduction Stable demand reduction has occurred highly of this highly efficient water use makes routine use of curtailments every stage of the plan it's expensive and impactful and um No supply project has been so our our situation. We're actually more vulnerable now to Droughts and then we were earlier because we no longer have this And in the water supply advisor committee work that was done 2014 to 2015 There was a clear problem statement including the needed episode of about one of an historical drought And with some climate change that was added into that That's a little bit the droughts we're seeing now are a little bit worse than that But they're not you know that orders of magnitude worse because now we're looking at a five-year drought and we're looking at you know a situation in which that's basically not as Not getting a replenishment after just a couple of weeks and the goal was to You know achieve the additional some additional demand reduction long-term demand reduction But that's basically been achieved Also laid out this process for evaluating and selecting one or more supply augmentation projects to meet the worst-case drought conditions Consider the impact of climate change and then provide the direction of guiding principles and the you know the how to You know make the decision in a way that reflected the community's values and And then it created an adaptive management strategy to allow us to incorporate new information as it was developed over the So basically where we are is to kind of come down to the end establish clear goals maintain and build on the WASAC work that is related to basic problem and criteria And we want to replace the now no longer practical 2003 IWP policy related to Retailments and we want to emphasize moving forward as To clearly meet the needs that we have as climate change is really changing exacerbating our issues with vulnerability from dry conditions Just to sort of finalize a couple slides about what this policy is and what it is not It is responsive to plausible and moderate assumptions about climate change It's clear about what our water supply reliable ability is and why use of retail in the process we're going to use in projects Necessary to meet our goal and what it's not supply augmentation projects And it does not eliminate further consideration of storage recovery as a potential component of our supply portfolio And it doesn't ignore the relationship between the supply options we're looking at But the question that it does sort of take on is if we have to make those kinds of decisions in order to Meet our reliability goal Thank you so much for that presentation and Thank you to dr. Bob Rauscher if he is still joining us I appreciate the economic analysis and the look into those different stages that was certainly eye-opening and I want to bring it out to our council members for any Questions before we head out to public comment on this item Do any council members have any further clarifying questions at this time? I have some bigger questions, and I think I'll just save those until after the public. It's an opportunity. Okay, great All right, I will at this time then bring it out to our public comment and if you are here to comment on agenda item number three securing our water future resolution and policy guide for water supply augmentation And joining us virtually you can raise your hand by a dialing star nine on your phone Or selecting raise hand in the webinar controls on your computer When it's your turn to speak you will hear an announcement that you've been unmuted And the timer will be set to two minutes Members of the public who are joining us here in chambers Please line up to the right of the dais You will have two minutes to speak and we Ask that you sign in to ensure correct spelling of your name. However, it is not required And water commissioners who wish to comment if you could just please identify yourself Before you speak you will have three minutes to speak And you can just identify yourself by name and that you are a water Commissioner and that way our city clerk can adjust the clock accordingly Okay, I'm going to go out to See if there are any hands raised it looks like we Currently have three hands raised. We've got three people joining us in person. So I'll alternate And so our first Person is Jim mechis With hand raised if you could press start six to unmute yourself Welcome Can you hear me? Yes Mayor brunner and council. My name is jim mechis. I'm a previous water commissioner And before that I participated in all the wassack meetings I strongly ask your support in favor of this water resolution The one major responsibility our city charter asks of water commissioners Is development of santa cruises long range water plan that's working with the water department and this is it Developed over more than six years to begin with wassack and now complete. It's been vetted by outside experts. It's ready for your approval The supporting evaluation criteria analysis on page 3.43 of your packet Clearly shows that asr while necessary to provide storage Cannot close a realistic five-year drop gap all by itself because it only gets a 60 percent of the way there While water solutions are indeed costly The lack of water solutions will cost even more On page 3.56 bob roushers economic impacts of water supply curtailments It documents that even the most expensive solution path will be far less costly for santa cruises than the economic damage caused by ongoing water rationing Over the last 50 years Several previous councils have missed key lower cost opportunities to act That are no longer available This resolution provides a clearly codified policy policy and evaluation process Providing necessary guidance going forward so that effective water portfolio decisions can be made A lot of water knowledge has been developed by both council and the water department over the last six years It is vital to preserve that institutional knowledge that's been gained and this resolution does that with a scientifically valid methodology This is the day to take a first step to a water secure future for our children and our grandchildren I ask you to please vote yes to approve Thank you very much Thank you for your comment. I will now Invite our member of the public here in person Welcome Thank you very much. Uh, mayor brunner members of the council. My name is walt wadlow. I reside on the summoner street here in the city I am here today asking you to first support the resolution establishing a policy On securing our water future and second to direct staff to add the policy direction in the resolution to the city council's policy manual I have over 40 years of experience in the public water supply field I've had the opportunity to serve as chief operating officer for valley water directing the water utility Serving over two million people in santa clara county And as general manager for the alameda county water district as director of utilities for the nonprofit water now alliance And most relevantly I concluded 10 years of service on the city of santa cruise water commission I joined the water commission just as the former water department director was unveiling the initial desalination project As rosemary alluded to it did not receive rousing support from the public Several aspects of the specific proposed project and especially the lack of public involvement in its development led to significant public opposition In contrast to that effort the current director and staff have conducted a multi-year Transparent process with continuing extensive public involvement Including the water supply advisory committee, which has continued to endorse staff's work To bring you not a single project, but a policy on securing santa cruises water future Importantly the policy supports ongoing adaptive management critical to selecting and implementing projects incrementally in today's demanding environment And the changing environment that we see driven by climate change among other factors I note that a number of the public comments the council received urge a single project approach to the exclusion of others An approach that is unlikely to meet the city's needs with respect to a sustainable and affordable water supply with equitable access For decades santa cruises needed to establish a more consistently reliable water supply That will meet the needs of its residents its businesses and the wildlife that also depend on our santa cruise mountain water resources The time to secure our water policy future is now and I urge you to support the staff recommendations. Thank you Thank you for your comment I will now go to our next uh member of the public joining us virtually NVC santa cruises go ahead and press star six to unmute yourself Hi, this is rick lonjanotti Um, can you hear me? Yes, welcome. Great. Thank you mayor. Um Well, first of all, I I really want to appreciate uh rosemary and the water department for developing the wassack recommendations over the last several years I think and also I think the water department has done an outstanding job of repairing our existing infrastructure something that was allowed to To deteriorate and it's been expensive but really needed and and it's something that I deeply appreciate The only concern I've had for the water department has come just just now, which is The notion of setting a goal that uh for water reliability that would say We want to meet all our demands in the future in a five-year drought We don't want to ever ask somebody to take a shorter shower or not water their lawn or not water a golf course That seems to me problematic on two levels one is that With that kind of goal It's going to be very expensive. You know and and those costs fall onto To the lower water tier users as well as the higher water tier users So we're asking people who already don't use very much And and who have been conserving to pay for For a goal that will never have to ever cut back on water use The second problem with the is is it doesn't fit with our ethic? Look One of the the great features of Santa Cruz is that we conserve we We're an example. We're a model to the state now. What does it say that we you know now? We're changing now. We're going to have a goal that that would never have to conserve again That erodes our ethic we can we should consider our ethic As substantial as a dam or other piece of water infrastructure and nurture that and not let it deteriorate. Thank you very much Thank you for your comment our next member of the public here in person. Welcome Good evening. Thank you, and it's really nice to have you back here in person and to have us back as well My name is Becky Steinbruner. I'm a resident of the Aptos Hills But I care a lot about water because it affects us all and that's why I have attended most of the Santa Cruz city water commission meetings as well as the county and other water issues I want to really support what mr. Lajanadi has just said as well as recognize the hard work in the past of mr. Scott McGilvray and others of his mindset In the water for Santa Cruz urging conservation as the wassak did and also really Prioritizing and asking you to prioritize the idea of water regional water sharing The issue in our county is that for this area is that The storage of water when we have it is a problem So I want to ask you to consider that as you as you Look at this resolution and as you are asked in the future to approve projects I also think you should not put all your eggs in one basket It should be a palette of projects But I would like to ask you to select those and prioritize those that are less energy dependent And less technology dependent It is notable that the indirect potable reuse, which is very energy dependent technology dependent And could pose some long-term health risks because there are no studies done for chronic and low-grade Exposure of hormones Pharmaceuticals and things that cannot be removed from the recycled water That you you instead put your thoughts toward collecting rainwater when it comes and having it available That is where climate change models are showing us And I ask you to look at partnering with SoCal Creek to develop the glenwood reservoir And to build rainy collectors to collect water when we have it. Thank you very much Thank you for your comment Our next uh member of the public virtually is justin berks He's pressed our six to unmute Hello, welcome Hello mayor greener and members of city council. My name is justin berks vice chair of a large commission I'm honored to be on this commission and be part of Our community here Santa Cruz is looked up to throughout the state as a model of conservation We have a culture of conservation that's woven in the fabric of our community that will continue as we invest in diversifying our water supply We've seen both from our own experiences and dr. Rocher's presentation That significant expensive rationing during drought is no longer a strategy we can rely on We need to diversify where we get our water And this is coming from someone who's privileged to be a leading expert in water conservation professionally with over 10 years of experience in the field As director minard mentioned this data driven policy is the product of years of community engagement and technical work And the project concepts in this policy provide a roadmap for investing in our in our infrastructure To ensure a reliable safe water supply that will be more cost effective than doing nothing Or relying on the strategies of the past the diverse project concepts provide us options So this policy is a potential to be a model of bringing parties together and developing the water supply This community desperately needs to develop as soon as possible I encourage you to adopt this resolution and to support staff's ongoing work to secure a reliable water supply as we move into the future Thank you Thank you for your comment I would like to welcome the next member of the public here in person And if you can adjust the microphone to your mouth level Mayor bruner vice mayor wattkins members of council i'm dug angfer member of the water commission Today I addressed my remarks both to council and to my fellow citizens Seven years ago almost to the day I sat over here with rosemary had the honor to present the wassak findings to our then seated city council As we embarked on our supply augmentation journey today I'm proud to comment on our diligent methodical consistent pursuit of that work and to support the codification of that work as council policy Throughout our work foundational principles have continuously informed our processes policies and practices including social and generational equities As evidenced in our rate structure and financing strategy Transparency as reflected in our monthly meetings and quarterly wassass updates Accountability as demonstrated in our commitment to database analyses and of course stewardship of financial and environmental resources Our adherence to adaptive management strategies and database analyses have been critical to our progress and success to date When the data change we reevaluate our assumptions and conclusions Notable changes from wassak days include the fact that consumption is down roughly 20 percent from the levels. We were seeing at that time Climate impacts are likely more consequential than earlier thought affecting the scale and scope of surface water availability And california sustainable groundwater management act defines new ground rules and players that will influence if not circumscribe collaborative efforts such as water transfers and and asr We have a successful track record to date in mid county. It remains to be seen how well we'll be able to work in santa margarita The resolutions before you update our journey and set our forward direction They codify the rules of the road and commit to our destination It will be up to future leaders and citizens to finalize and navigate the detailed roadmap defining and pursuing a specific project portfolio That solves the problem now and for generations to come I've long maintained that our independence from outside supplies is an asset not a liability We can have control over our water destiny Our work demonstrates that we have the means to provide long term sustainable water supply reliability It's now up to us to assert our will to entrust our ultimate success to the data The process and future leaders and citizens I urge council to adopt and the town to embrace these resolutions as city policy relating to water supply augmentation and reliability Thank you as always for your time support and service to our town Thank you for your comment Our next uh member of the public is virtual sierra Go ahead and press star six to unmute All right, can you hear me? Hi welcome Hello Good evening council members and mayor brunner My name is sierra ryan And it has been my pleasure to chair the water commission during the development of the securing our water future framework Firstly, I would like to commend staff on this effort It has been organized stepwise process that builds upon the last several decades of work and is true to the values Set forth by the water supply advisory committee committee and by the community Secondly, I want to express my support for this item Which provides the guidance the staff and the commission need to advance very necessary projects and I hope that you vote to approve My primary job is as the water resources program manager at the county of santa cruz I would like to use some of my time to provide some context about the timeliness of this work and the urgency to move it forward Water resource management in santa cruz county is changing at a pace and scale not seen in at least 60 years The driver for this is climate change The systems that we rely on for water supply and that support the environment that we cherish Rely on a climate that does not exist anymore Block loman was designed to fail every year our groundwater basins were expected to recharge at certain rates and our stream flows were sufficient to support important This species the last decade has shown us that those expectations no longer reconcile with reality and we need supply augmentation In response to the new paradigm where the historically normal is no longer the norm Every water agency in the county is working at an unprecedented scale to develop design and implement projects and management actions To bolster water supply reliability This is happening not only at the individual water agency level, but more often regionally through partnerships Some of these partnerships for example the santa margarita and santa cruz mid county groundwater agencies Require regional cooperation to meet quantified metrics for sustainability The city water department is the largest water supplier in the county as such It's also an important partner in regional supply planning The policy being proposed tonight provides the water department and the water commission The guidance we need to move forward with developing water supplies for our customers But it also supplies our partners in the groundwater agencies and beyond with a clear path forward that can be used for regional supply planning purposes The data the water commission has been presented over the past few months on the likely future rain patterns The system's vulnerability to those patterns and the financial and social cost of inaction or even insufficient action Has demonstrated that there are no easy options, but there are options that will protect the quality of life of our community To be clear, we can and will continue to conserve water But we cannot conserve our way out of this problem and relying solely on surface water to be there when we need it is dangerous Adaptive planning based on sound science is the only way forward Again, I urge you to adopt this policy and I thank you for your Thank you for your comment. And we have another hand raised. The name is I am watching you Yes, thanks. Uh, you know, I didn't really want to speak to this Hey, how come I have two minutes since there are people had three minutes? How does that work? Anyway, um, you know I I've always wondered if the water problem would comment on this. What is there any chance of damming more creek? I mean, would that provide additional surface water? Without any dangerous consequences um, you know and and uh, you know this this idea that that The weather and the rainfall is predictable. Is that really reliable? I mean, we really don't know, right? What happens if you spend Whatever it is. I don't know hundreds of millions of dollars and and then it starts raining You know, like it will have been a complete waste. I love the planning. I love what the water department is doing can, you know with their consideration for what could be and You know advanced planning I I I just don't know if uh major commitments Well, for instance, I don't believe in major commitments to drinking recycled effluent. I I'm kind of a little little sketchy on that you know, but uh Um, and and as well as sharing water when our water is so pure and wonderful and The surrounding regions water, you know, it's not so great, you know, so anyway, that's all I have to say Bye Thank you for your comment Are there any other members of the public here in person or virtually that would like to comment on agenda item number three? securing our water future resolution and policy guideline For water supply augmentation to improve water supply reliability for saner cruise water service customers Okay, I will bring it back to council um, and I will start with council member mires Rosemary, thank you for the um for the really thorough and comprehensive explanation of really what you've done, which I think is pretty groundbreaking for a water utility to say We're not going to pick a project because our future is that unpredictable um, and it's I think something that I think will uh really gain a lot of attention in california and other places in the world where you know Utilities are often used to calculating a cost for a pipe building the pipe And then paying the pipe off over a number of years with a bond And I think this is just Really groundbreaking and I think it really will serve our Community well because of the type of water supply system that we have which is slowly being retrofitted With all the major facilities being updated But basically we're dependent on what comes out of the sky primarily and With that an insecurity of knowing what that looks like what you've basically laid out for our community is Is a policy that says we're going to be adaptable. We're going to be strategic um And it also recognizes that our use our our our conservation As hard as they say in the business We're not going to be conserving much if any more water than what we are right now without some catastrophic economic and other other factors coming into play so You know mayor, I'd be happy to make a motion because I I think this is really groundbreaking work And uh support this the staff recommendation, but I I think it's important for For the community to really understand the shift that's going on here Which is we're not going to be fighting over a water project any longer What we're going to do is acknowledge that we have to be an adaptable community And we have to acknowledge that our water use is pretty much About as little as it can be without taking major drastic Actions that are probably unsupportable in most people's homes now Um, so I'm happy to make a motion when ready But just wanted to just recognize the work and also thank the members of the water commission Um, and especially those folks who have been there for so long developing all these different Parts of what makes up the story of our of our water security here in Santa Cruz That's not something you do overnight Um, and I also want to recognize the work of the wassak Which certainly was also groundbreaking at that point in time with the development of the portfolio options That have stayed on the books for a long time. So Um, congrats and thanks for your work And mayor at the time, I'm, you know, happy to make the motion. Thank you Uh vice mayor Watkins I'm happy to second that motion Doesn't exist yet The motion that's I will move the staff staff recommendation. I will second the motion Okay, so we have a motion officially council member Meyers seconded by vice mayor Watkins And then we will continue discussion and then we'll vote I don't know if I could say it better than my colleague here, but just, you know, such appreciation to the work Every time I sit and listen to these presentations I'm blown away not only by the amount of thought and consideration and investment and Where we are and all that we're going towards but ultimately by how dedicated our community has been to this issue and and the need for us to make decisions and To be flexible yet to have that that common path and destiny and I really appreciated that comment I also just wanted to briefly add how I appreciate the recognition of public health equity and environmental justice being added I think that we know that is critical and We can't avoid that and we can't not acknowledge that or speak to that or plan for that So I just wanted to also acknowledge and thank you for that and thank everybody who Brought us to this place today, and I'll leave my comments there. Thanks mayor. Thank you Council member brown and then golder Oh, I I do have a couple of questions that I want to ask and kind of in the in the course of my comments because I You know, I well I share my colleagues appreciation and You know respect and really awe of the work you do Um, I when I start talking about it sometimes when we're here on particular items. I I just feel so Grateful really that that we have such an amazing team and like I almost well up a little bit So I'm just gonna I'll say that I'll leave it there. Um, I'm grateful. We have an amazing team too And And I appreciate the the approach that's being taken here. Um, I I absolutely support it. I appreciate the transparency and the process and the foresight and All of the work that's going into trying to make decisions about very very much unknown future and You know, the climate crisis is real We the the effects that Might not have even anticipated even a few years back. I mean even climate modelers that I used to talk to in grad school, right? Not that long ago. And so we are in this time of of real Uncertainty and so having Something too, you know a blueprint for how we're gonna move forward That's based upon all of this work is really so critical So I absolutely support that Having said that I do want to Raise the Concern which I share in in some In many respects about the way that this the state the goal statement of Supply without curtailment for all water users Does seem to Um sideline the conservation Concern um language right so the language matters I mean, I I'm here and I'm working through this and so I don't believe that that is in any way What's happening here? Um, but I I just I do want to acknowledge that it's a concern that People have raised in the community and it's one that that I share and and I am very much committed to looking at a more a holistic View of consequences and not just I mean economic impact to me is one piece of the puzzle I don't believe it's the only factor on which we should be making decisions about future Supply and the work that needs to be done to get there. Um, so I'm I'm a little bit I have some skepticism about that and so I guess I just wanted to ask you Given that those concerns have been raised About the conservation ethic and the idea that we should be communicating that to the public One how do we you know, how do we do that? In in this context, what are your thoughts on why it's not in here more The language is in here more forcefully and then Um, the other Question I just just flew out of my mind. So I'll leave I'll I'll come up with it while I While we hear from you um, I guess a couple of comments one is From my point of view the billion gallons of savings from long-term demand management Is stable that's not going anywhere. We're not backing away from that. We're not making the assumption that tomorrow You know somebody reads this in the paper. Oh gosh, the city did a policy that everyone's gonna say Okay, well I can do whatever I want now. I mean Shifts have occurred right people have changed their their landscaping. They've decided to You know do something different with what has been happening there. So it requires less Uh Less water, you know Uh, when I when I was living in Portland a number of years ago That green lawns was a big thing and and then there was a whole new generation came into the neighborhood I lived in you know, it was all the sort of turnover And people wanted to go hiking on the weekends. They didn't want to mow their lawns And so things changed and that kind of change has occurred here, right? And we've seen it because after 2014 and 2015 We didn't see the bounce back and I guess what I want to show you a slide from Um presentation that put together for the This was for the The water shortage contingency plan And so this is the difference between uh and all the different sectors you can see uh, I'll make that you can see between 2002 2004 and 1618 and you can see that in the Uh The chunks of water the difference between the dark blue lines and the light blue lines in certainly the single family Huge portions of that is irrigation change outdoor irrigation Which used to be the big target of the 15 percent routine curtailments, right? Uh in the business sector where we had some comments in the in the conversations about You know, they should just figure out how to get themselves organized so that they could deal with the 15 percent curtailment They've already this has already been changed too. It's through regulatory changes. It's through retrofits It's through not washing people's towels every day. It's the things that have been integrated, right? So we're making the assumption all of that is Going to continue But but the realities means that if we're going to Uh, if we're going to say we're going to do curtailment as some kind of routine part of our um of our route management tools Then we're targeting Places where There's not a lot more to target. So the idea that people don't want to take shorter showers Is like well, it might not be that it might be people saying i'm going to take a shower every third day instead of every other day, right? I mean Honestly, that's kind of where we are um, so I I want to I I want to say that the decision about how to treat curtailment in the goal It's a hard place to say Okay, we're not going to do that because it sort of fits that nice little warm fuzzy spot We all have about how we want to do this but the reality is Doing a stage one or a stage two. It doesn't produce very damn much water And it has a negative impact on a community that already has Adopted embraced and is not Changing in any way that we can see from the actual water use data their consumption happens So thank you and that reminded me of what my last question was And thank you for sharing that that slide because you know, I've been paying attention to those big numbers and the reductions are phenomenal and and I recognize the I'm a realist too and I I love it that you're a realist and I recognize the There's not that the The hardening of conservation has occurred and then I wonder I mean I just as a person in our community who talks to a lot of people who are concerned about this and I notice it myself Well, there's a lot more I could do and yeah, it wouldn't be my favorite thing to do Faking a shower maybe every three days is not necessarily one on my list of things that I'm thinking about right now, but You know like I just I don't you know How you wash your dishes and all the things right and and so I and I I can't even begin to You know envision what that kind of savings would be up against All of the measures that have been taking very marginal, right? Um And it's there and people think about it. And so I guess I just you know, I want to be responsive to that And I also recognize the wanting to be realistic or needing to be realistic and so I don't mean to suggest that Calls into question anything that I'm seeing here. I just kind of wanted to Hear a little bit more about that because you know people see this and this is work that's been happening Um ongoing here and there have been many many opportunities for being involved in the conversation And um, we haven't heard much and we've been making decisions So, um, you know being here at this moment I'm not asking these questions to suggest that I'm not comfortable with the way we move forward. It's just Wanting to be responsive to that concern and figure out ways to deliver a message. I mean, I'm just thinking even for myself to About the need to really be thinking about this. I mean we have We just have limited resources and and as you've said not a lot of options. So, um, You know, and I'm not sure that tech know The technology is going to save us. I'm not sure that anyone's saying that but I I'm less, you know, unless inclined to My eggs in that So, um I guess I'll you know, I think that's really the the question that I had I don't have specific questions about the great about sharing that And moving us through this Um, but I do want to just say that you know, I think that this We are going to be debating projects. I mean, this is a way to enshrine codify You know a framework for making decisions in the future, but those will be coming to us And and so to the extent that we think about what the reactions are going to be and I know you are You know, just finding a way to really be responsive to that that set of concerns So we don't get Into fights and and blocked yeah and moving forward because that's that's still a possibility no matter what we do here tonight Thank you councilmember golder and then councilmember calentari johnson Thank you. I appreciate everybody's perspective. I also want to think uh rosemary and the truly like Global collaboration that went into bringing this forward and I was really surprised to see that it was way back in 2003 that that um these all plant was that it was almost 20 years ago and I was one of the people that was really against that and having you know lived here my whole life and Taken three minute showers since the 80s. I was like I'll save more water. I don't care. I don't want that And I think at this point I see that that's not the only option But that is an option that is something that I think is something we can consider in lakes having this different portfolio of options is something that I think is responsible in in in that Seeing that reduction of A billion gallons and and the sacrifices that we went through people might not want to sit next to me Maybe that's why they left but I only washed my hair once a week and I I hated to have to stop growing my garden in 2009 and this was the first year that I was able to have You know my own vegetables again and then the other um impact that really I think affected People was when we did have to let the sports fields dry up It was super inequitable And I remember Santa Cruz High had just planted a new field and I can't remember how much it cost But I think it was upwards of a million dollars and those kids students didn't get to play football Or some of their fall sports that year and they Maybe some that had cars could travel to south county to play on their fields But it just um you think about our health and all policies and we want to have those Um pro-social activities available to to to students and youth and adults in our community And the sports fields is something that I I don't think that that's a waste of water For people to be able to have that active recreation So um with that I appreciate all of the thought and the time that went into this and truly appreciate all the time the water commissioners gave to this process and um I don't think it compromises our values of conservation. I really think that I'll continue. I'm not going to shower every third day, but I do appreciate um I appreciate all the hard work. Thank you, and um, I support this fully. Thank you Thank you councilmember calentari johnson Great, thank you. Can you guys hear me? Okay. Yes, okay. Thank you rosemary and everyone in your team and um All the commissioners and every community member who's participated in this process my my colleagues have Stated it eloquently, so I won't repeat it But um, I do just want to share that I thought what was presented to us both in the council packet and in this presentation were very complex um Concepts but in a way that was easy to digest and understand I'm not I don't have a water background and um, I was able to understand and follow along and really get What we're trying to accomplish and what I see what we're trying to accomplish with what's being proposed is a yes and Yes, we need to continue with conservation and we have to continue with conservation and that's not enough and the um the water efforts we have in place are Are great efforts and that's not enough. So that's that's what I saw in What was being proposed and I appreciate that there's many options put before us I know we're not that's not what we're doing tonight, but it's clear to me What the options will give us and won't give us and it sets us up for When the time comes for us as a community to make those decisions to have it be really well informed So just thank you for your work. Thank you for what you've presented to us And I'm absolutely in support of what's being recommended Thank you councilmember calentari johnson um I think we have a motion in the table. We have a motion by councilmember mires to move the staff recommendation seconded by vice mayor walkins And You know, I just want to also echo my colleagues and say thank you um to our water commissioners here today in person taking the time taking the time over the past several years and joining us virtually um for the work and the time and the commitment to our our city and our future and our water and um because it is Uncertain, I think this policy and this uh policy direction and the resolution is really good work That addresses santa cruises water supply reliability um And as the chair of the commission stated We can continue to conserve water, but we cannot conserve our way out of this And I appreciate looking Thank you to dr. Rauscher for joining us all the way from tasmania today I'm sure it's the next day over there But looking at ways to maintain our economic viability in this process is huge So thank you for adding that and thank you for our health and all policies commitment With that, I'd like to ask the clerk to please do a roll call vote Council member count tarry johnson Sorry, I Golder I coming I brown I Myers I by smear Watkins I and mayor brunner I That motion passes unanimously Thank you very much At this time we have um our next agenda item Is agenda item number four? It's a public hearing for an appeal of planning commission approval of cp 20 zero zero six eight Located at one two six eucalyptus eucalyptus avenue and one three six pelton We will be taking a short bio break. Um before we begin this item Um, we um will return at six fifteen To hear this item Thank you All right. Uh, we will continue now with our agenda today We are next up is agenda item number four public hearing for appeal of planning commission approval of cp 20 dash zero zero six eight Located at one two six eucalyptus avenue and one three six pelton For members of the public who are streaming this meeting and joining us virtually If this is an item you wish to comment on Now would be the time to call in using the instructions on your screen If you are joining us virtually I will let you know when you can line up to the right of the dais for Public comment this item will be conducted as follows per council policy 1.1 First staff will present their report Then appellant number one Someone on behalf of opydian will have 20 minutes to present evidence supporting their appeal Please note. This is regarding the appeal only Appellant number two seagull will have up to 20 minutes to present evidence supporting their appeal There are two different appeals Followed by opponent Responding applicant appellant number one Will have 15 minutes to present their evidence opposing appellant number two's appeal and supporting the project I will then call for public comment Appellant number one will have five minutes to rebut issues raised in public comment This time cannot be used to raise new points or issues Appellant number two has five minutes to rebut issues raised by the opponent applicant And or during public comment This time cannot be used to raise new points or new issues We will then return to council for deliberation and action To get us started. I will ask senior planner clara stanger to give us a presentation Welcome clara Thank you Okay Good evening. Mayor brunner and city council members. I'm clara stanger senior planner with the department of planning and community development This presentation is about the two appeals of the planning commission's approval of a proposed assisted living and memory care facility at 126 eucalyptus avenue Project number cp 20 dash 0068 during this presentation I will give a brief overview of the project and then discuss the concerns brought forth by each appellant So the project site is located on the oblates of st. Joseph property in the lower west side of santa cruse The property is bordered on the east by west cliff drive pelton avenue to the south And eucalyptus avenue to the west The proposal will reconfigure the site into two new lots one on the west side and one on the east side of the property The eastern lot will keep the existing church building and three historic buildings On the western lot the proposal is to demolish the two school buildings that were previously used by the gateway school And to construct a senior assisted living and memory care facility The city first received a pre application for this project in november of 2019 And held two community meetings consistent with the planning department's community outreach policy I want to note that the applicant has significantly downsized and revised the project Since the initial pre application submittal in response to both community input and staff review So the new facility is a two-story building with 76 units Including 59 assisted living units 15 memory care units and two inclusionary aka affordable units That are required to be designed designated as either assisted living or independent living The project also includes amenity space such as a cafeteria Multi-purpose room fitness rooms salon lounge and operational spaces for offices and back of house functions This is a rendering of the project from pelton avenue showing the parking lot and the main entrance to the building The building has a Mediterranean architectural style and the development will be significantly landscape throughout the project site This project was heard by the historic preservation commission on august 17th And they approved the historic alteration permit associated with the project That permit was not appealed The project was then heard by the planning commission on october 6th And they approved the non-residential demolition authorization permit Sequential lotline adjustment special use permit coastal permit design permit and heritage tree removal permit associated with the project The planning commission's approval included the addition of several additional conditions The city then received two appeals of the planning commission decision One from the applicant roger bernstein And one from an and robert seagull and the citizens from the community's adjacent to lighthouse field So I will start with the bernstein appeal which disagrees with an additional condition of approval applied by the planning commission That increased the number of required inclusionary units I will now Go ahead Okay, um, so the municipal codes uh standard inclusionary requirement for rental units Is under section 24.16.020.5.a and states that 20 of the Dwelling units shall be made available for rent to low-income households Zoning ordinance 24.22.3 20 provides the definition of a dwelling unit as you can see from the highlighted part A dwelling unit must contain a domestic food preparation facility also known as a kitchen Zoning ordinance section 24.22.372 Defines a domestic food preparation facility aka kitchen As an area or room designed to be used for food preparation and that contains two or more of a specific list of appliances or fixtures So to recap The inclusionary requirement applies to dwelling units and a dwelling unit by definition must have a kitchen Which also has a specific definition Only those units that qualifies a dwelling unit with the kitchen count towards the calculation for the inclusionary unit requirement The project has 76 units But most of these units do not have kitchens as defined and therefore are not considered dwelling units 13 of the units have kitchens and are considered dwelling units for purposes of this calculation The inclusionary unit requirement is 20 of these units 20 percent of 13 is 2.6 And the municipal code requires a fraction of 0.7 or less to round down So the requirement is for two inclusionary units So the inclusionary regulations also have a section for alternative methods to comply with the inclusionary housing requirements These alternative methods include various options such as land dedication Payment of in-loop fees, etc One alternative method allows the applicant to provide congregate care units in order to satisfy the inclusionary requirements Section 24 dot 16 dot 030 dot 8 states that the applicant may propose to satisfy the requirement in this way Then the approval body would need to determine that the proposed development does include Congregate care units and if both of those things happened then the alternative inclusionary requirement would apply to 15 percent of the congregate care units So the planning commission decided to make the determination that the project includes congregate care facilities And to apply the different 15 inclusionary ratio to all of the assisted living units Which is the units that the planning commission considered to fall within this definition So the result was a requirement of nine inclusionary units as opposed to two The applicant's appeal seeks to refute this interpretation And this is the same position that staff has taken on this matter The code clearly states that the applicant would first need to propose to satisfy the inclusionary requirement using this alternative method And only then can the approval body make the determination and apply the alternative inclusionary ratio So in this case the applicant has not proposed to use an alternative means of compliance And hasn't Instead accepted the standard 20 percent of the dwelling units or two inclusionary units So therefore it's not consistent with the municipal code For an approval body to apply this alternative method of compliance to the project Okay, so i'm going to move on to the seagull appeal now Um the seagull appeal described a number of concerns that I think the main themes that um appear to be concerned about impacts to the monarch butterflies A disagreement with the location of the driveway on pelton avenue And concerns about the project's consistency with the california environmental quality act or sequa So with regard to the butterflies the appeal letter opens with the dramatic assertion the murder of the monarchs Um santa cruises monarch butterfly overwintering habitats are unique and they're special I think a lot of people in this town agree with the seagulls that That this is something that's valuable in santa cruises Um, this value is also reflected in the city's general plan and the local coastal program So general plan policy 2.4.1 and table one of the natural resource and conservation element Call for development projects to complete site specific assessments for the butterflies And to implement general avoidance or management strategies when sensitive biological resources occur So avoidance includes designing plans to avoid take of individuals and habitat Um buffers to maintain suitable habitat conditions Actions to avoid disturbance from construction and then management actions to protect from indirect impacts Similarly local coastal program policy EQ 4.5.3.2 Requires development In that a vicinity of designated monarch sites to undergo site specific biotica view And for development affecting sites to prepare prepare a management plan that addresses preservation of the habitat This policy list example criteria Such as preserving or replace replacing excuse me monarch nectaring plants prohibiting pesticide use Avoiding monarchs during construction and keeping smoke away from roosting sites So the project included an investigation by a qualified biologist The biologist completed several site visits in 2019 and 2021 He did not find monarch butterfly habitat on the project site But made recommendations to protect the nearby overwintering site at lighthouse field during construction So construction recommendations included Um retaining all roost trees including buffer trees Buffering occupied routes by 100 feet Starting daily construction after temperatures reach above 55 degrees Fahrenheit That's the temperature when butterflies are able to fly around and avoid being displaced by construction associated vibrations Trucks and equipment should enter and exit the site along pelton avenue from the east via west cliff drive To minimize vibrations and exhaust impacts to the lighthouse field roosting site So the city subsequently received several comments from the public prior to the planning commission hearing The express concerns about the monarch butterfly protection Based on this public input the project biologists provided some additional recommendations for management actions to protect the butterflies So the first one is prohibiting right turns out of the pelton avenue driveway This is to prevent vehicle headlights from sweeping across the Monarch Grove at night Which would only happen when a vehicle is exiting the site to the right onto pelton Prohibiting high beams until drivers are completely on eastbound pelton avenue Requiring commercial deliveries to use the driveway on west cliff drive and across the church property rather than the pelton avenue driveway Locating new landscape trees to avoid excess shading of nectar resources Shielding exterior lighting downward to avoid glare and illumination of the monarch butterfly grove Providing an on-site water source such as a fountain for the monarchs And then several actions to minimize predators including Installing and maintaining predator-proof waste bins eliminating populations of yellow jackets eastern gray squirrels and bats and restricting the use of seed feeders that attack predators also Utilizing leaf vacuums instead of blowers And then finally prohibiting the use of pesticides that are known to be harmful to monarch butterflies So all these recommendations provided by the biologist are included as conditions of approval for the project And they also fill the policies for monarch butterfly protection under the general plan and the local coastal program So the seagull appeal also argues for the removal of the driveway on pelton avenue And advocates for all ingress and egress to take place from the driveway on west cliff drive and across the church property The appeal describes several concerns about the driveway related to butterflies noise traffic impacts to the roadway condition and public access I've included a full analysis of this in the agenda report, but right now i'm going to focus on Why city staff has found the pelton avenue driveway acceptable and also necessary? so first The subdivision regulations in unicode section 23.24.030.5 Describe that a new lot must have direct street access The west cliff driveway provides access only across the adjacent lot to the project site There's also a fire access issue Using the driveway from west cliff drive and across the church lot creates a fire access path that exceeds 150 feet And therefore we need to have a fire truck turnaround Designed on the site to meet the fire code. This would require redesigning the site plan The seagull appeal also suggested retaining the pelton avenue driveway as a gated emergency access only But the fire department has expressed concerns that a gate would impede their ability to respond efficiently Given the number of trips expected to the site Finally refuse service vehicles will need to use both The pelton avenue and the west cliff drive entrances to service the site efficiently And avoid a complicated turnaround situation So public work staff does not support Eliminating the pelton avenue driveway either With regard to the butterflies I just want to mention again The biotic review did not express any concern with regard to the driveway location and did not recommend relocating the driveway I also want to touch briefly on coastal public coastal access because it's important for the coastal permit And the appellate indicated it was a concern with regard to the driveway So this driveway actually already exists. It's a curb cut on pelton avenue So improving the driveway will not change the available on-street parking on pelton and it won't affect Coastal access in that way The project is also required to improve the sidewalk along pelton avenue on the property frontage And that will help to improve pedestrian access in that area Finally, I want to note that senior citizens with special needs or disabilities Is likely an underrepresented group of people when it comes to public coastal access and creating a facility for them right here Will help to create a public access opportunity that otherwise likely would not exist for these individuals Okay, so finally I want to talk a little bit about sequa The seagull appeal questions the planning commission's acknowledgement of the sequa exemption and appears to assert that Additional review of the project is needed to be consistent with sequa, especially with regard to the nearby monarch butterfly habitat so When we when we review a project for consistency with sequa We first need to determine whether the project qualifies for an exemption from sequa If it does then we're done with sequa review and additional studies such as an environmental impact report are not required In this case the project qualifies for three different exemptions So no further review is required under sequa and i'm just going to describe those briefly now The first exemption is under sequa guidelines section 15305 For minor alterations to land use limitations. This covers the lot line adjustment portion specifically of the project The second exemption is under sequa guidelines section 15332 for infill development This exemption is allowed when a project meets specific criteria with regard to general plan and zoning consistency project size location in urban area Habitat value traffic noise and air water quality I want to note that The specific criteria for habitat value under this exemption is that the project site has no value for endangered rare or threatened species Which the appeal letter emphasized and I believe Was trying to express that that it didn't qualify for the exemption because of that So but I want to just explain that Um While the project site is near the monarch butterfly habitat area lighthouse field The monarch butterfly is not listed as threatened or endangered under state or federal law In addition the project biologists found that the project site itself does not have monarch butterfly habitat So while we care about the monarch butterflies and we have local policies in place to protect them They actually are not uh relevant I guess to the infill development exemption under sequa Finally public resources code section two one oh eight three point three And the corresponding sequa guidelines section one five one eight three provides that no further sequa review is required When uniformly applied development policies or standards would substantially mitigate the effects of a project So our sequa review has confirmed that with the application of general plan policies the zoning ordinance and other standard city requirements that are in place today The project is fully exempt from further review under sequa Um, I also want to mention um that our sequa attorney jim moose And our sequa consultant stephanie streelo are both here tonight And they're available to answer any questions you may have about sequa Okay, so in summary staff recommends denying the appeal of annan robert segal And upholding the appeal of roger bernstein thereby adopting the resolution Approving the project with the proposed conditions and with the deletion of the inclusionary housing condition that was added in by the planning commission This concludes my presentation and i'm available to answer any questions Thank you. Um I think i'm going to at this Are there any questions at this point? I'm gonna otherwise roll right into The first appellant So I will now call on roger bernstein who is here on behalf of opydian to present evidence supporting their appeal Welcome, you will have 20 minutes. Please note. This is regarding the appeal only Uh, hi sonia. My name is roger bernstein. Um, so good evening and and thank you very much for having us here tonight Um, I have a question before uh before I begin. Um, I was gonna Begin with a brief overview of our Neighborhood and public reach out and then I was going to turn it over to another member of our party to discuss the appeal If that is okay, I I'd like to proceed otherwise I could just hand it straight over to our party the other member to discuss the appeal It should be just regarding the appeal Okay, okay. Well, um, I just want to say a couple things and then i'll turn it over to uh to frank I won't get into uh in too much detail at all and Um, again, my name is roger bernstein and i'm with a company called opydian We are the applicant and I actually live on the west side of santa cruz on pelton avenue just down the road from the site Uh, which as you all know is the obelisk church property I would like to start by thanking all the folks who have helped us get this project to where it is today This includes city staff elected appointed officials and our group of expert consultants and project team members Um, I would like to ask if we could put up the uh, I send some slides through at least the the opening slide is all I need Okay The city clerk is getting that up Okay, um while she's putting it up. I'll I'll go ahead and keep going I would also like to extend a special thanks to all the neighbors All the santa cruz neighbors all my neighbors who've had extensive input on this very important project I firmly believe that we have a better and more inclusive and more aesthetically pleasing project because of it Uh, this project is very personal to me that that slide is fine. That that's perfect This project is very personal to me not only because I live right down the road from the site But because my wife and I have two parents who need assisted living services And it would mean the world to us if we could have both our parents housed in the senior community close to our family and close to where we live Senior housing and specifically assisted living and memory care Senior housing is in dire need in santa cruz and we feel very fortunate to have the ability To bring this very important housing project to this community Interestingly enough, even though we're still a few years out from opening our doors We have a significant prospect list compiled of santa cruz residents who are on a waiting list for themselves or their family members With that, um, I will turn it over to frank who's going to go ahead and discuss the appeal. Thank you Thank you very much Welcome frank. Hi Uh, good evening. Mayor brunner Members of the city council. My name is frank patrilli. I'm a land use attorney with coblins patched duffy and bass here on behalf of apodon Um, I think we're going to keep our remarks really brief. We thought that city staff the city attorney's office is not a great job Of and the basis for our appeal is really straightforward. I mean we think the planning commission really or a majority of the planning commission Of was looking to get to a particular outcome wanted to increase the affordability standard looked at portions of the code Kind of selectively quoted some stuff Took it out of context and and the results and unfortunately all of that really occurred after the close of the close of public comment and the public hearing too and and the result was a A condition that increased the inclusionary requirement Really did not take into account the the pretty significant impacts from an order of magnitude standpoint on You know the feasibility of the project we think that the This is really not a case where the language in the code was ambiguous Or we think reasonable lines could differ about you know what what the interpretation is the Again, our basis for our position was laid out in the appeal in a letter we submitted last week In two staff reports at this point and I think large is a really good job of kind of covering Why we think really the planning commission Abused its discretion in imposing this this condition and was effectively Kind of making you know new new policy legislating really from the day as no way that was not appropriate. So We don't have much really to add to staff's analysis. We're here to request your support to remove that condition We're here to answer questions And we'll just close by expressing our our gratitude and appreciation for the hard work of staff It's been you know a three-year process It's the review has been exhaustive and extensive and we're really excited About the the the project at the end of the day. We're proud Of what we've done and we hope that the city feels the same way So we're here to answer questions and thank you so much for your time Thank you I will now Turn it back. Let's see to Let me pull up my notes So I'd like to bring it back and Welcome our second appellant and seagull Who will have up to 20 minutes to present evidence supporting her appeal Always start the clock. I do have exhibits here that my That we're going to put up. I I didn't have access to Internet to internet and I didn't have access to do a Powerpoint. So I did the hokey thing that we used to use which is not technology. Thank you And so he's gonna just put up some pictures That are not going to be marked into into exhibits. So if you could just put those out We'll give you a minute to get And then also I have a handout for everybody That we're gonna do I think there's a handout of Okay, all right. Thank you All right, we'll start the clock Okay, and where where is the clock? It's on the screen Do you see that? Oh, thank you. Okay, the clock is starting Um, this is my first rodeo I'm an seagull. I am a pretty college professor My husband dr. Robert seagull is a dermatologist here in santa cruz on soquel We are homeowners in pelton avenue Before I begin my my prepared remarks I think the community should know a press if they're here people who are here That you have in your packet The agenda and there are two documents in there One is titled be it resolved the appeal of annan robert seagull is denied All it needs is your signature The other document says be it resolved the appeal of watermark opendime or ak roger bernstein is here by granton And so there won't be any allocation for or any additional allocation for low-income housing um I was a judge for 10 years I reviewed piles of memorandum And if anyone in my staff ever had the audacity Or prosecutor or defense attorney to give me the document that dictated my decision I would have tossed it in the trash. Yeah, here's your guilty verdict. Just just sign the bottom. No So I hope i'm not just up here reciting nursery rhymes to you that you've already been told what your decision should be um I hope That you will listen to my arguments and consider what I have to say And that being said also um under ethical rules. I'm not able to be representing dr. Robert seagull He's going to call in but due to the scheduling of this as I has indicated Um, he could not be here Excuse me Oppenheim and watermark are very well financed private for-profit Equity investment companies that will put a lot of money into santa cruz for their investors It's unknown from the document. I've received what benefit they'll be to santa cruz, but they'll spend money I'm from Tucson, Arizona And oppenheim has their headquarters there They run Over 72 retirement facilities throughout the community Oppenheim oppen I think I'm mispronouncing it oppenden is the construction entity They bring in their own crews and they build the sites Watermark handles the sales and services We estimate they earn about 200 million a year and their value I'm guessing just projecting from what they've sold. It's about probably close to a billion dollars They Have a business model that creates housing for people living their last years and it's for the wealthy I understand that they find properties They plop down new construction The construction is self-contained that they put into a piece of land Pillars on the east coast Red tiles on the west coast They follow a formula But not necessarily function The neighborhood I live in and pelton avenue. I'm new to the community. I'm happy to say We'll bear the brunt of the construction maintenance of the 74 000 square foot building The site is adjacent to pelton avenue A tranquil cell a state park of lighthouse field the home of the monarch butterflies hood owls and many many many people So I'm asking as a condition of this appeal that you stay it that there is needs to be more study Not to defeat it not to say this isn't a good project But just to stay it to get more information The first issue for the stay Is an objective need for an objective review of the environmental impact on the adjacent areas The standards require an environmental review That is ensure and to ensure not estimate the protection of natural resources wildlife habitats scenic views It's a peelable error at this point because the project was not evaluated for the For the effects and the development of the development on the adjacent coastal areas The impact of the visual resources through an objective analysis on the surrounding areas As well as on the coastal axis. This is a requirement under sequel The staff report considered the impact on the development of the land itself Said it's an infill has no real value But the studies that they did contained very little Information about the adjacent open wildlife rich areas of lighthouse field Or the impact of this project on the neighborhood on the neighborhood Which is exactly what sequel mandates While removing buildings and planting trees is consistent with the general plan There's been nothing that explains What is the impact on the adjacent parts of the community? There hasn't been a sequel evaluation for years They seem to approach the responsibility if the staff seems to report the responsibilities Like there's a shopping center across the street Or maybe a cement factory I watched coastal commission Rehears where they interviewed people who were looking at a bridge to see what the impact would be of their View of the bridge That impact was not done here We have a very special marine and land habitat in pelton field and lighthouse field in pelton avenue The field provides coastal access to low and moderate income communities to the park and to the beaches The adjacent areas along pelton avenue and its threads of streets from lighthouse field Provide generous sources to tourism due to an easy and open parking countless sporting events Pelton avenue itself is a pedestrian walkway with a peaceful combination of walkers cyclists families dog users surfers That rely on this adjacent area to this development For its community value Please look at the photographs. You see what we get to see You see what will be disturbed Without further investigation But drilling down is on the importance of the sequel evaluation is the inadequate report that I do refer to as the murder of the monarchs This monarch habitat is a beautiful Heavy tourist destination that brings lots of people here But the primary entrance if you look on your exam and if you look on your exhibits, excuse me We'll show you that entrance for their grand and beautiful entrance that they have that they're going to bring in All these beautiful views pops right into the monarch is steps away from the monarch habitat Now they did bring in a consultant, but the consultant that they had was not a butterfly expert He was a biologist, but not a butterfly expert But the sequel demands would say yes, we need to see what the impact will be on the adjacent areas around This field all the way around down lighthouse field all the way down pelton avenue so the first aspect of this appeal That I ask you to table this Require a sequel evaluation on the adjacent areas Direct staff that there be mandate compliance with coastal commission consider the impact on the public access Adjacent to this coastal region If you look at their overhead map again contained in this exhibits that I gave you It also should be and mandate that all during the destruction of all the buildings Of all of all the concentration be away from pelton avenue and onto cliff Avenue West cliff avenue as a matter of appeal I asked this council to direct the landlords the church the landlords are the church and the Staff made the mention like there's two separate pieces of land. No, excuse me. The church owns both pieces of land They're the landlords. They're getting a lucrative valuable lease income payments from this They're leasing it out and saying, oh no, but you have to stop here And I'm saying to you as city council is like no You want you want to get the financial benefit of this you pay the responsibility to it for the community That surrounds that area you want you want to lease your land good But you don't just lease part of it and then say but now we pretend like we don't own it No, you own it and through this lease you give access through your property Onto cliff that's already there The lucrative lease should require them to bear part of the brunt of the vehicular traffic And I asked that you direct that there not be vehicular traffic for construction or other vehicles on pelton throughout this process Let's protect lighthouse field pelton avenue and the onset of the development The coastal commission requires study of the impact of this development on adjacent resources as I have said Pelton avenue is part of the master plan that's contained in your exhibits Pelton avenue is part of the master plan now that is really in play right now because the collapsing of cliff of cliff We're seeing things falling apart with cliff and if you look at the master plan, which I don't know we need to look at it Pelton avenue is an is an essential part of that. So again, I urge you table this Stop this You know this in this all hurry up. They've spent this thing's going on for a couple years Nothing happened until August then being we got to get this done. We got to get this done. Why? We need to know. Okay. Now that we have some problems on cliff How is this going to play into pelton? How is it going to affect their ingress and egress? How is it going to work? We're not going to get the applicant or sanitary's planning and zoning To budge from this fiction that there'll never be more than 21 people on this campus at one time Common sense will tell you it takes more than that to provide meals medical care activities housekeeping security grounds keeping maintenance administration sales for the 80 people who will need services 24 hours a day not just on the during the week during the school day is what they keep saying Well, we're not going to get more than what was at gateway High end elder care, which is what they provide and by the way, they've never said how much they charge by the month Is judged by the quality of their staff And it's a fiction to think that the plan parking of 40 spaces including visitors and residents is adequate It's a fiction They said they'll only have three deliveries a week including deliveries from a refrigerator truck And that the loading off pelton will quote have minimal expected commercial trips to assure compatibility What is the remedy to our community when there's daily trucks daily ambulances daily fire trucks daily deliveries 10 times what they predict And I ask you why should we trust their predictions? The applicant reported that their traffic study for this project done three years ago Indicated there's just light traffic on pelton avenue And there'll just a few more in place is not going to be significant. The report is flawed We asked an engineer to review the report the study performed by keith higgins was on thursday november 14th at 2019 was for seven hours on a cloudy overhead cast day with a nearby thunderstorm Recorders are normally placed for seven days Watermark conducted their traffic density for part of one day Mr. Higgins used an outdated manual to predict future traffic studies Rather than the 11th edition of the it chip general The cost will be to us as neighbors and to you the city of santa cruz if we have to repave pelton avenue because Of the heavy traffic that would reasonably anticipate it I ask you to do a feasibility study to determine if a trust fund can be created from this applicant To cover future damages to pelton avenue. Look at pelton avenue. You can see It doesn't exist. It's the has the structure of a dying elephant Direct a survey of merit to look at pedestrians by traffic on pelton avenue as part of the sequel report We asked that there'll be anticipate a study to anticipate The increased traffic on pelton avenue due to more trucks and ambulances to have the equipment Require a cost estimate for using pelton avenue The also the reality is I interviewed fire Officials throughout the city of santa cruz. They said This is completely inadequate Right now fire trucks have to bet would have to back out onto pelton avenue to get out And they're coming in and out and in and out. There isn't a valid Responsible way to address the problems of fire trucks and access. It hasn't been hasn't been resolved Table this demand more study But the last and the most important issue A 2020 reference reveals that the entire watermark project between eucalyptus and pelton avenue Lies within a tsunami in odation zone According to the 2012 city of santa cruz local hazard mitigation plan And further confirmation by the de ir figure 4.72 Using the same map There's a serious error in the environmental review of page that's described on page 52 in the packet with you under exhibit 4 That review flood hazard areas indicates only the eastern portion of this project is located in a flood hazard zone And states no portion of the flood hazard zone has Residential structures However, the map clearly shows the entire zone would be inodated by a tsunami This is further confirmed by the map on of an unmarked map of page 30 of watermarks revised pre-application We know that due to global warming increases tsunami danger Our coastal region is prone to earthquakes As the coastal commission points out land used must be done with exquisite care Please reject the advice of our city planners. There's just too many flaws Watermark and up and I want you to approve their for-profit plan to pace 80 vulnerable individuals in a tsunami flood zone 30 of them will be in a closed and locked building should a new tsunami building in to inodate the buildings Watermark, this is your notice. This site is not safe for assisted living home And it's your liability if you insist that this project continue I think it would be wonderful if you build a retirement home in Santa Cruz as you do it with a lot of class and a lot of cash But just not in the location you chose City of Santa Cruz Obelis St. Joseph the property isn't safe for development Realistically the property shouldn't be used for anything other than open space There should never be a vulnerable population school or large gathering house there If the applicants really think it's a good idea to place 70 elders Some of them who would be trapped in locked building in a flood hazard zone Do we really want them as neighbors? I could not find any memory care facility or assisted living home this close to a coastal region anywhere Council please table this project if you sign that resolution denying my request to stay this appeal until further studies are done I'm going to be dramatic. Are you signing a death warrant? We're talking about a tsunami zone We're talking about retirement homes. We're talking about elderly people who could not get out So there could be a tsunami. Yeah And the last thing then pouring across lighthouse field if you look at this one picture right here We're right here Can you hold those up? I'm not able to see them Come and look at this beautiful view And then they'll drown Thank you Does that conclude your Okay, I'm now turning it back back to opidion Who will have 15 Minutes to present their evidence opposing appellant number two's appeal And supporting the project This time may not be used to further address your your appeal I thank you. Mayor brunner those of the committee um so, um One of our goals when we started this project was to enlist a local team of consultants contractors and we've actually done that Um, we have right now. We have a local santa cruz civil engineer traffic engineer arborist sol's engineer And two biologists one biologists on our team Justin de Villa and one biologist who we've been consulting with bill henry both of them extremely knowledgeable in the area of butterflies We've also enlisted the assistance of several local contractors To advise us on material selection and estimating There was a comment that, uh It was a little unclear to me that we are based in tuson and have a traveling construction crew Um, our head office is in minneapolis My office is in san osa, and I live just down the road Currently, we have done a couple of projects with the watermark. We are The development entity watermark is an operations entity Uh, they are operating currently one of our communities that we we did with them in nappa california We're building another one with them down in oceanside in california Both of those projects used local contractors the the one in nappa used a project that was based in secret Used a contractor based in sacramento The one in in uh ocean side is using a contractor That's based in selana beach, which is about 10 miles to the south of that project both local contractors And as I mentioned, we are talking with local contractors here Our goal here would be to hire a contractor from the from the local region to build this project Uh, a couple other things, uh that was mentioned, uh, they were talking about the the photos I think the the the photos as you can see that it's a beautiful area And and quite honestly, we're hoping to to Bring seniors to this area to be able to enjoy the the natural surroundings and and and beautiful views And and the butterflies we uh, we take that very seriously And we we can't wait to have our our seniors enjoy those those beautiful resources As I mentioned our biologist ecosystem's west And justin de villas specifically is a is a is a very renowned butterfly Expert as is bill henry and and both of them have weighed in extensively on this project And I think as claire stanger mentioned Um, many of their, uh suggestions have become conditions of approval and and we've agreed to all of them You know, we as I said we take this very seriously um Let's see there was a couple of things so so there was a discussion on Uh, our traffic study is floored. We have our traffic consultant here and he can address that potentially later Um, they they we had the traffic study done It would you know, it's these these projects take a long time It was it was then updated several years later And and he also did a self using a cell phone data study Which was able to capture very accurate traffic information But the bottom line is our project is going to is going to produce extremely limited traffic I know there was a discussion on the number of staff members. This is an rcfe community This is licensed by the department of social services. It's not licensed by the health department This is not a nursing home. They have much stricter standards for for employee numbers We're an rcfe community a retirement community for the elderly or residential community for the elderly And uh our their their the staffing requirements are significantly less and we're looking at staffing Levels of somewhere between 12 and 18 staff members at any one time So as you know, most of our residents don't drive we have assisted living and memory care residents So if one or two own a car, it'll probably just sit there in the in the parking lot But we are really going to be uh, we are going to be contributing extremely small quantities of traffic This is a very low impact use One thing that's interesting is pelton avenue. I can talk about this as a neighbor um, I've been walking my dog and riding my bike over to steamer lane for years and uh, yeah pelton pelton avenue appears to be beat up It's a solid road, but it's it's uh, you have to drive it very slowly and I've talked to many neighbors Not just in relation to this project, but just over the course of the years that I've lived here and neighbors love the concept of the the whole, uh Um, they love the rough nature of pelton avenue because it forces you to drive slowly I'm sure many of you have driven pelton and you absolutely cannot speed their speed bumps It is one right in front of my house at clark and pelton and people they use it as a as a launching pad But the problem is because that area of the road is paved It's smooth and it allows people to accelerate the area in front of our project the area between Eucalyptus and west cliff is extremely rough and it forces people to drive slowly And people have told us they don't want us to go ahead and pave that area Of course, we would pave it. We would make it smooth if they wanted it They don't want it and I think ann would would know that if she'd lived here for a while Um, but as I said, I've lived here for many years and they really don't want it so um I think that was that there was a lot of discussion about you know, tsunami and danger and all that I I don't feel like I need to address that. Um, I think frank, did you have any anything else? I think that's it. Thank you very much Thank you Okay, at this time I will call for a public comment I will look to our virtual attendees and also if you are here joining us in person Please line up to the right of the dais my left It looks like we have three hands raised virtually I will begin with our first person in person Welcome, please step forward and make sure the microphone is at your mouth I don't think it reaches Thank you mayor and council members. Um, my name is Craig James. I live on pelton I moved to sannikers in 1953 And I've been away for a while, but just moved back for retirement um, I support all of the comments by Segal I also like to say that I support senior housing My mother is in a place is in lapisada over on frederick street and I know sannikers needs more senior housing Probably need even more in the future. However, not at the expense of the neighborhood At lapisada, I think is a really illustrative example I can only imagine back when it was approved that the developers said the very same types of things that my neighbor here Said that there won't be any problems. In fact, it's terrible over there The fire trucks and ambulances come every day almost anytime I go to visit the parking is blocked by delivery trucks Whether it be laundry or lapisada's own bus that takes the residents out on on trips around town that sort of thing Um, it's a mess over there the traffic a lot of the residents There's a lot of parking for residents, but it spills out onto the streets There's a dozen cars that park on the street all the time When we go to visit there, I think there are eight visitor parking spaces I would say 75 of the time we can't park there and have to park on the street I can't imagine that this new development will be very much different My father and my grandmother lived at um oak tree villa up in scott's valley That was also an An assisted living facility and a number of the residents there the idea that only one or two people will have cars Where residents is just ludicrous. That's just not how it works. A lot of people on assisted living are very active They just need a little help with this and that So that's a bogus argument Um, the right turn only the traffic on pelton. I think the city analysis is wrong Over at lapisada there on galt street. There's a note. There's a right turn only sign It is completely ignored by the people who use that because it's more Thank you, unless the city plans to station a police officer there traffic is going to increase Thank you for your comment. I will now bring it to one of our virtual attendees Phone number ending in 9 700 You may press star six to unmute yourself Go ahead and press star six There you go. Welcome Great. Thanks so much. Uh, this is robber seagull. I'm dr. Robert seagull is one of the neighbors on pelton I'm speaking against this project It's incomprehensible to me why the planning staff is pushing this project as much as it does As it does not appear to be in the best interest of the community of sanikers In a facility such as this proposed facility, the public is not allowed to use the parking lots The lobby the cafeteria the grounds or the garden Can't use utilize the security the nurses or anything Or the neighbors the effect of having a facility like this next door Is the same as having a busy factory right next door to you This facility should be built in an industrial or commercial zone, which has adequate streets Appropriate zoning and room for the fire trucks and close to established medical facilities. Let me elaborate on that I anticipate that this project will rent rooms to 80 wealthy elderly people Many of whom are not from fana crews these elderly will have trouble finding doctors The town has a severe physician shortage as a dermatologist. I myself am booked out for six months No primary care or internal medic medicine physicians are taking new medicare patients that I know of If you know of one, please let me know because i'm looking for one Who will be the neurologist and psychiatrist for the 30 patients with Alzheimer's or cognitive deficit in memory care? Further aggravating the healthcare situation is that much of the medical care in town Is delivered near soquel a 20 minute drive from this watermark site if you don't hit any traffic Remember there isn't enough parking to allow residents to have a car So they'll be dependent on a fleet of transport bands that watermark will need to keep them seeing doctors This site should be closer to soquel and be closer to the major roads It's been three years since the flawed traffic study was done on an overcast day in november 2019 Which estimated over 250 trips a day and that's low now with cliff drive collapsing sea levels rising The centers are pushing this project as though there's some benefit to the city residents, which there's not Please table this Resolution and obtain a new unbiased analysis of the project. Thank you I will now invite our next member of the public in person Welcome Good evening Mayor bruner and council members. Thank you so much for this opportunity I am father matthew spencer. I represent the oblates of st. Joseph the landlord of this project The oblates have been on west cliff drive since the 1930s We take very seriously our responsibility to be stewards of that property We serve the people who live in that neighborhood We've done that since we arrived when it was Originally, uh, largely italian immigrant population. We continue to do that to the best of our ability now I also take my marching orders from pope francis. I'm very proud of his stance on Protecting the environment and being a good steward of the environment I think my decisions at the shrine in recent years including a large solar project including a large Protection of our gardens, which we make available to the public and gets a sign of my commitment to protecting the environment We would not do this project if it hurt the monarch population We would not do this project if it was going to hurt the environment And I think the science shows that uh that it won't We need housing Our congregation needs a place to live This project is not being made for people outside of town This is being made for the people who have been in Santa Cruz for generations Uh, and I'm very proud to be able to offer that service to them. Uh, and just with that said I think this is a fantastic project. I'm so proud of what opidine has done I think they've done an extraordinary job balancing all the needs of the community addressing the environmental concerns And I just strongly ask that you support this project. Thank you very much Thank you for your comment. I will go to our virtual attendee By the name of denis Please press star six to unmute yourself Dennis, are you able to press star six to unmute or the unmute feature on the webinar controls There there we go. Can you hear me now? Yes, welcome Okay, sorry. Sorry for the problem. My name is Dennis Hagen. I live in the 300 block of pelton avenue And I'd like to say I wholeheartedly Support this project. It is well thought out. It is well planned Um, I would like to point out that the people who have spoken so far in opposed to it Did not live in the neighborhood during the gateway school residency at this project Where we had hundreds of car trips per day back and forth Pelton is a busy active area surfers coming In and out all the time during last weekends Festival or craft flair at lighthouse field. We had parking everywhere throughout this Neighborhood that is part of living by lighthouse field Again, this project is going to have so much less of an impact on the neighborhood than the gateway school did Please don't oppose this project. It is very important. It's very good And many seniors in the santa cruz 50 of the people in santa cruz are homeowners in the city When when they get old and need assistance assisted living You sell your home and that's how you afford assisted living. It is not something that's cheap It's not unfortunately something that everyone can obtain here in the united states But this is a good good solid project. Please support it. Thank you Thank you for your comment. I'd like to invite our next person and person Hi, welcome. My name is blaine hally mayor and city council and i'm here to support this project completely and And i'm a little nervous and I tell me how much time i have. There's a clock running. I want to try to stay two minutes Okay, that's a very little time. I've got more to say than that My family I've been coming here since the 70s. My family lived 820 pelton for two years brice morgan We're ambassadors for the city of santa cruz and I have been And I actually work for americor now. I'm a senior companion and You know, there's nothing like the area that that this is and I've just family and friends through the years Have come here to see the butterflies to see the wildlife see the ocean The shrine itself is open for everybody to go there. It's open for everybody and This is just a very very special thing that I I want to see this go forward I've looked at the plans and I know that it's the best that we can do and very proud of it i'm proud to stand up before you and I I I think i'm just going to cut it short. I wish I could answer questions I just I I hope that I come across. I just very very much want you to go forward with this and For it to be done. Thank you Thank you for your comment. I'm going to invite the next person in person Hi, I've lived you adjust the microphone. Sorry to interrupt Thank you. I've lived at 105 eucalyptus avenue for 20 years I was a direct neighbor across the street from 126 eucalyptus when gateway school was there It was very nice to have the school there. Was there traffic? Of course there was however the weekends There was no traffic Summertime there was no traffic Christmas time there was no traffic. So there was an end to the cycle uh with a assisted living home Which I have worked at I have worked at kindred which is on capitol road There is constant traffic. It never ends. There are three shifts a day I know what it's like to be at a place like that. It is busy busy busy also, uh, the butterflies Cannot be contained just to lighthouse field. They flutter places and all and so Thinking that oh the entrance over there is far enough away from them. That's not really how it works This is nature. We're talking about and also the butterfly will be listed as federally endangered in 2024 Hopefully we'll have enough that'll make it until then So I am not in I am not against assisted living. I think the project needs a lot more in-depth research Especially where traffic is concerned. Thank you very much Thank you for your comment. I will go to our next virtual attendee The name is Keith Higgins I press star six to unmute yourself Hi, can you hear me? Hi. Yes, welcome Hi, my name is Keith Higgins. I'm the traffic engineer for the project and uh, I'm going to make my Comments really short because I don't have anywhere near enough time to respond to all the traffic comments that have been made But I'll just say I've been working around Santa Cruz for over four for about 40 years I've done projects all over the city. I've done many many um senior housing projects Um assisted living projects all over the central coast. I actually work for on projects at gateway school I have been inside gateway school when it was operational I've been there during pick up and drop off operations when it was there We did counts at its new location at natural bridges school for this traffic study So we get accurate comparisons And that used to generate about 700 almost 800 trips per day And this project will generate about 200 250 trips per day I did annualized averages of trips from gateway school accounting for summer vacations And the traffic is still much much less on an annual annualized basis with this project Then gateway school Uh, we've done parking studies and it is true that when we did the original counts back in november Uh, I guess that was 2020 We didn't really have much choice because of work called to do a traffic study In november and the reports do in january. You can't wait till the summer to do the counts We had to do the counts during the window that we had our contract But we did supplemental studies. We did a study on july 4th That was dated to like 24th 2020 and I'm going to run out of time. I'm trying to talk fast and uh, we didn't uh used uh cell phone data and uh, we're able to Come up with annualized And I'll stop there, but I'm available for any questions you might have on the traffic And uh, I could go into a whole lot more detail to respond to a lot of but thank you for your comment I'll invite the next member of the public in person Hi there Hi, um, my name is ross hall wise And my family has lived on laguna street for over 35 years of a couple of comments Um, Santa Cruz is not lacking in assisted living facilities We recently Placed a family member in assisted Living with memory care In two facilities in the county. There was no waiting in either facility We also investigated a number of others and there was no waiting near either The proposed development Will be an exclusive facility for wealthy people who can afford to Um live next to west clove um second comment the service entrance For the development should be from west clove Through the oblates property the oblates own the development parcel and will get substantial income from the development eucalyptus street neighbors And parkers along pelton street get nothing and should not be burdened with the traffic and noise a fire department only access could be available from Pelton street And actually if it was connected to the oblates property that fire trucks wouldn't have to back out or anything like that um The proposed development in my view is too large Um, and I think other people's view as well if there were fewer than 50 units and then adjusted Development footprint. I think there would be much more enthusiasm for the project. It's not that we're totally against it But it's I think oversized and just not Plan the way it needs to be Um, please support the neighborhood's concerns. Thank you comment I will invite our next member of the public in person Hi, welcome. Thank you. My name is denis reagan and i'm at one oh one eucalyptus and been there for Actually 37 years My comment really has to do with the enormity of this project. It's very hard to visualize And I really think before anything goes any further. We need to put balloons up We need to do some things in the neighborhood so that people that aren't privy to Being able to come to the city council meetings because there's a very small distribution of mailings It's a very small area when I talk to people that are two or three blocks away They have no idea that this is even going on. So I think that that has to be done just to Give an idea to the neighborhood what this is going to look like what kind of visual impact is it going to have in you know, what is really a beautiful little area and Many many people have said many things about the concerns that I have other than that I just wanted to bring it out That we have to really look at the enormity and the size of this structure Thank you Thank you for your comment. I will now bring it to one of our virtual attendees Carlos Valdez Go ahead and press star six to unmute yourself Hello, can you hear me? Yes, welcome Hi. Good night everyone Um Good night mayor and city council members. My name is Carlos Valdez I'm a field representative for carpenter's local union 505. I'm here to talk about pre-qualification language and some of his benefit um I'm gonna begin with apprenticeship Construction apprenticeship programs are a proven escalator to the middle class For any intents of thousands of california residents every year. It not goes to taxpayers Because of increased wages and lack of student debt construction apprenticeship can be a better option for many young people That are under what? graduate problem Well, this is such a brief qualification helps Helps to ensure that contractors higher apprentices and are doing their part to build our community's construction workforce One out of four construction works in california unlike health insurance That's two and a half times the rate for all california workers Nearly 50 percent of construction workers rely on some form of public assistance The lack of stable health care is a main factor that keeps workers away from the industry They didn't do the labor charges that we are sitting in a Residuation construction local hire across state Mayor projects often import an out of area or out of state workforce instead of training and building a local construction workforce Local hire policies Help ensure that new development benefit all members of the community so short words is Requalification language Is the need that benefit all of us Thanks Thank you for your comment I'd like to welcome our next member From here in person. Hi. My name is kathy pappas And I am my granddaughter is the fifth generation born on the west side My grandmother was born in the early 1900s And so we've lived in the neighborhood for all these generations and we just want to say that we're really in support of this project We think i'm you know having Almost all of my relatives still live in town It's a good thing and sometimes a bad thing, but um We all live very close to this area and we just I know about senior living We know about traffic we're business owners And that's just kind of Santa Cruz and I know you y'all know that because that's y'all live here and y'all know that So um don't say anything new, but there are a lot of people in support of the project and it is expensive There's traffic on summer days in the middle of summer went Weekends everything so there's all kinds of things that I know that you've taken into consideration And I appreciate it all the work that you've done in all the different areas because there are so many different areas That um need to be addressed and I think you guys did a really good job And I appreciate the the first report that she gave it's so thorough and so um I've heard that a couple times and she she was very good I thought um, and so I just want to say that that we're in support of this for a lot of different reasons and thank you Thank you for your comment. I'd like to invite the next person here in person Hi there good evening council. My name is ralph myberg and I'm very happy to be here in person In this world of russia mon So I'd like to talk about a progression Uh, when I first as a neighborhood representative began discussions with roger Bernstein from operdan the There were a hundred units. They were reduced to 92 traffic was taken off of eucalyptus street And addressed elsewhere. They were used to be deliveries, etc both the oblets and operdan came up with a solution in which Commercial traffic could come off west cliff and then return to west cliff We advocate that route and wanted actually increased because of monarch butterfly habitat protection So I would definitely make that point over here um, but the project was reduced to 76 units Primarily to accommodate a lower density Greater setbacks. I will say that um, I've had deliberations with developers And roger Bernstein was conflict adverse And truly try to accommodate specific neighborhood concerns and general community concerns Whether they have all been addressed is obviously in the province of the council We did not touch affordability Um In terms of traffic it would really be great for monarch protection And we know they're in danger no matter what the current status is it's heading there We know that And any person who's been in center crews and seen the population dwindle and then just managed to survive know How precious this is we need to afford the butterflies maximum protection The only way we can add to what already has been recommended by the planning commission Is ingress and unfortunately that's through the The obelisk property. I know they would like to have some clarity For lots of reasons and not have uh traffic go through their property, but it did with gateway school This is a much reduced version of that it offers protection to the butterflies And it suggests a pattern that I think this council needs to think about in the future If west cliff is turned into a one-way Then city council needs to keep options open on how this project is reached from west cliff. Thank you very much That concludes our virtual attendees. So I'd like to invite our next in person Member of the public Yes, welcome Thank you Low enough hi, my name is barry michelle and I live In the house next to 140 palton only house on that block and it just feels really huge And over the covet time and not all being able to meet I feel like the communication is still like kind of It's not coming together completely for me, but it just really feels like a huge project for that area but And I also really care about the butterflies and I care about whether I'm going to be able to even live in my house For the time it's being built, but that's just me And my neighbor I worry about them too all the different neighbors So I'd like to have more time to talk while we can actually speak to each other With us having an open meeting instead of meeting through zoom. I haven't seen many of my neighbors for a long time Only the ones right close to me. So thank you very much and thank you for all your work Kind of believe all the work Thank you Thank you for your comment The next person, please step forward Hi there Welcome I'm shawn medved. I live at 112 eucalyptus. Can you adjust the microphone? My house is directly impacted on two sides. So I've been involved with the developers and the community and The one thing that I want to bring up is that this access on pelton is really important And so it really needs to be looked at close because What it's going to do is all of the things that have been raised from butterflies to traffic As it spins it spills into the neighborhood All of us neighbors are going to be even more impacted than we already are by this massive construction and 76 units It's almost unfathomable that we have a Project this large in that neighborhood. I mean it's I would never believe it that this would be we'd be at this point But the obelisks and the father spoke about how they really wanted here and this for the community So if it's for the community, let's have them take a little bit more Responsibility with that traffic flow. They already have a gigantic parking lot with two gigantic entrances that parking lot is Often empty We all live here. We've seen it and If they can take that impact, I think that would be go a long way with showing, you know You know good accord with the neighbors and taking the impact away It all it makes sense for everything and it really needs to be looked at further. So that's my my point. Thank you Thank you for your comment Hi, please step forward Welcome My name is paul brown. I've lived here in santa cruz since the late 1970s. I would probably die here I love santa cruz and But I think taking into account that we are all The town is growing. There's going to be more and more people more and more people in need of these services Even if there's ample room right now at these facilities It's definitely not going to stay that way. There's going to be more and more people that need that kind of care and Why would we wait until there are no Facilities available or that there are very few and it's you know, very stressful to even find a place So I'm in favor of it And thank you for your time Thank you for your comment We have a virtual hand that popped up. So I will um Go out to our virtual attendee ryan mechel Hey, good evening council. I just wanted to briefly call in and support of this project and support of the staff's recommendation Um, it seems like this developer has been very attentive to the neighbors Since the project was initially proposed. They've eliminated. What would have been a third story made the building a bit smaller And changed the design of the project as well I think this is something that santa cruz really needs. I think we need senior housing and as they said earlier They already have a list of interests. So this is clearly something like the community wants and that the community needs As people grow older, they're going to need assistance Living not everybody will but certainly a lot of people may and this is a great opportunity for them to downsize their homes Maybe move into an area that's certainly beautiful With the amenities that they need as the age Um, so I just hope you'll accept the uh, the staff's recommendation and support this project. Thank you Thank you for your comment I'm not seeing any other hands virtually And does that conclude our in-person public comments? On the two appeals Okay Thank you everyone for your public comments In addition to the public comments. We heard 14 emails were sent to city council at city of santa cruz.com Um, I will now um Each appellant will have five minutes to rebut issues raised during public comment So, um, I will call on opidians representative who will have five minutes This time cannot be used to raise new points or issues, but to rebut any comments in public comment I may or thank you very much Um And thanks to everyone for their comments. Um, a couple of issues on the on the traffic study Just reiterating what staff stated that We all know that there's a lot of traffic on pelton The the staff report which was referencing Our traffic study mentioned that we're only going to be Adding 0.5 to 1 percent additional traffic onto pelton The other point the other point that I think I just would like to make is that per the The amount of traffic that our project generated per the it manual and and some other methods that a traffic consultant Used We did not need to do a traffic study We were below the threshold that required a traffic study, but we elected to do one anyway Just to ensure that we were complying with all the requirements um Try to keep some of these just uh responding to The parking there was a question about parking and it's going to be spilling out onto Potentially onto pelton avenue and maybe around to eucalyptus, etc You know one of the things we did is after our first neighborhood meeting we redesigned the project We took all deliveries off eucalyptus And we we actually working with the old blades who've been great partners we We are now taking all of our delivery access Through the west cliff drive Entrance the existing entrance on wet on west cliff and that was something that someone said why don't they do that? We are doing that So deliveries and commercial traffic will be using that driveway and I think it's it's actually represented in the conditions of approval Regarding parking We are over parked per the city's requirement for our site. We have 42 parking spaces In addition to that the old blades have let us Build eight additional parking spaces on their property for us to use as overflow parking So we have more than adequate parking for our staff for our residents And I know someone said that uh, you know assisted living residents Old drive or a lot of them drive or some of them drive. I can assure you very few of them drive um It's as I said, my mother is in an assisted living facility. Um A long way from here, unfortunately And uh, you know the the assisted living residents at at her community I think almost none of them drive. I think a couple of them own cars and the cars sit in the parking lot um Regarding our building size As ralph myberg mentioned we using you know the the mechanism for the neighborhood meetings Based on listening to the neighbors, you know, we wanted to build a bigger project We wanted to have independent living at our community. We downsized it We had three stories. We downsized it again We took we took it down to two stories and then through the uh, uh through the year and a half that it was in Going through the city process where they were analyzing any sequa impacts on the project We downsized it further and we've reached a point where We this is this is the size of the community. This is barely the size that makes it uh effective for us to build If we had to start reducing it further bearing in mind that we're we're the the our lease and someone said we're releasing property That's correct. We're leasing it from the oblates Uh, that was that was set early on and that hasn't changed the cost of the lease hasn't changed Um, but what has changed is the cost of construction is everyone probably is aware Construction costs have gone up probably 30 to 40 percent. There was a construction person who called in about union construction, uh, there's a um Construction is is very very expensive. The other thing that's expensive is is staff Um, you know, there's a there's a staff problem here and and we like to pay A decent salary a decent wage for our staff We like to we like to bring on our staff members and we like to retain our staff members And if we don't pay a decent salary for our staff They will leave and they will go somewhere else where they can't make a decent salary and these things cost money The other thing is because of the requirements of this of the the city and the neighborhood And because we want to build a quality product that that product is is very costly So I just wanted to make some of these points that we need the 76 units to make this project work um Let's see I think Oh, there was one other point. Um, and you know, I at Sean Medved was up here and he was talking about the project and the size You know, I just want to mention I have actually met with Sean, you know one of the things that we did and I made this because I'm a neighbor I made this a A um An a big part of what I did I met with neighbors individually and I met with Sean individually several times And and I'm sure he can attest we have made Probably half a dozen or maybe more revisions to our project To to reduce the impact on Sean and to make it a better project for him and his wife So just wanted to mention that thank you very much Thank you I would like to call on Ann Siegel. You will have five minutes to rebut any issue Raised by appellant number one and or during public comment And please note this time cannot be used to raise new points or issues. Thank you. I I don't have a team I'm here by myself. I'm new but that doesn't mean I don't care I care tremendously, which is why I'm here I'm asking you to table this this has been rushed is when it was busy busy busy Two and a half years ago I've never met mr. Bernstein. I never participated. There's new people who live on pelton. There's new communities Why is this thing being rushed through? Why can't it be tabled? Why can't we have an environmental impact study? and I'm new I found this Location for seniors or everybody cares and we want best for seniors in a tsunami zone The coastal commission executive director has issued a memorandum in 2022 that said if you cannot guarantee Guarantee there is no risk to people in a flood area. You cannot build in that area No one has said oh, there's no worry about this We're just going to pretend it doesn't happen or hope it doesn't It's in a tsunami area I'm scared and I'm scared for the people who I'm here To come to to advocate for which would be the residents who live in there So that's not just it's not just something that needs to be ignored or go away It requires assessment. It requires study. It requires time. You'll say well, it's a new city council Maybe that's the point another reason to put it off. This is a future project There'll be other people on council who may need to be responsible for stewarding this project through The traffic is concerned parking is concerned Watermark, I know this is good, but they just paid 17 million dollar fine in kickbacks. Where's that message? There's we need to table this resolution The maps also show the fire trucks cannot get to the back end of the buildings. Should there be a problem? Should there be an emergency? Why is there a rush? How can we know that what you're doing is safe and that's the responsibility that you have a city council Is we got to make sure this is safe? What is the hurry? And they're saying we want to do this for the community. No one addressed the fact that they're refusing to allocate more for low income No, we can't do that. We can do two people. Oh, yeah. Oh, thanks What about the other people? We're supposed to the church got up and said this is for the church Yeah, if you happen to make I don't know 12 15 thousand a month They never mentioned how much the cost is except that it is it is expensive It is expensive The key word here is fragile The environment that we live in is fragile our ecosystem is fragile. The monarch sites are endangered I don't care saying they're somewhat sensitive. It's like saying that they have bad manners. No, they're fragile They're endangered the neighborhood is fragile Pelton avenue as a road is fragile. I don't want to see it paved I bought there because it's charming and rough and rural and quiet And and the elderly people who are supposed to live in this place are fragile I ask you counsel, please table this Let's get more information before authorizing it and bullying it through We are fragile We're not caring. We're not crows that can survive on carrion We're fragile. We're fragile is the butterfly wings. So I urge you to reconsider Signing that authorization Signing both of them. Are you sure that you can't Demand that they provide low income allocations because the sink because there's a sink and a refrigerator in the room Really? We have people who are living in less than that and they don't have enough money to give to Santa Cruz to say Yes, we want to meet all the needs of all the people Not just the ones who can afford to live here We want to give a gift It needs more time It needs more space We need and we need a Environmental research that's viable and reliable and that has backbone And I ask you to each have backbone table this Ask for more investigation So we don't have to take it to the coastal commission to have them do the de novo review Because you didn't consider tsunami because you didn't consider the fact that there is an important sequa Evaluation that was not done independently And honestly, thank you Um at this point now, we've concluded that part of the hearing and I will bring it to uh council for action and deliberation Let's see. I see, um council member Johnson, you have your hand Thank you, mayor. I want to make sure you can hear me. Yes Okay. Um, I I have a number of questions and some comments and and potentially a motion to put forward Um, but can I ask my questions first? Is that does that work for the process? Yes Okay, um, so maybe I'll ask my questions to staff first and then I have some questions for mr. Bernstein Ms. Siegel made some points around uh inadequate access for fire and that she'd spoken to some some Fire officials. So I wanted to see if staff could address the the fire concern um And then if somebody could address the tsunami flood zone concern that was brought up a number of times that would also be great So let's let's start with those two questions and then I have just a couple more Okay, um, I'm gonna go ahead and start with the tsunami stuff. Um, and then do the fire afterwards Um, so regarding the um tsunami zone There's mapping in our local coastal program and also our general plan for tsunami inundation areas The project site is not mapped for tsunami inundation in the local coastal program. It is partially mapped in the general plan mapping So first of all our seek overview did look at tsunami inundation. It found that there's no impact because the developed the part of the site to be developed is not within that zone um, and incidentally, I do want to just Um, clarify that We have an 80 page environmental review document. So this a conclusion that the You know the sequel that it's exempt from sequel is not made lightly. Um, that is in the packet Um, so I have a few other notes on this tsunami. So, um There are some general plan policies for tsunami inundation But they do not relate to review of new development projects. They focus on warning and evacuation systems and emergency responses um, also There are some zoning ordinance development standards Regarding tsunami impacts, but those only apply to areas that are within a mapped flood zone for FEMA And the site is not within that zone And then regarding fire access I have been working pretty closely with tim shields in the fire department and he approved the Um fire access for the project as currently designed I'm not sure what the appellant was speaking to about Okay, and maybe saying it wasn't adequate. Um, tim shields is present If you would like to hear more from him or if he has more information to add to that That would be great if he could just chime in on that A good evening. Um, thank you Council member counter johnson council members So the fire access issue was specific specifically brought up with access off of west cliff Ingress egress off of west cliff current designs Did not allow for appropriate fire Turnaround or egress out of the site once we went in off of west cliff Fire stances if they meet fire code requirements per the fire code We would be okay with the west cliff ingress egress The current design off of helton Though it doesn't entirely meet The fire code explicitly we made some concessions in terms of a wider access With a little bit extended Of access in But uh in terms of access egress Egress egress off of west cliff The Applicant would just have to show a design that would meet the fire code requirement Okay, thank you. Thanks for that additional information. Um I see lee is on did you want to add to that? Thank you council member counter johnson. Um, I was just going to add one bit to the um response that clara had about the uh tsunami area And I was just going to share my screen quickly here because I did look at the um the general plan maps and they're at the um the citywide level and so they're they're hard to decipher Exactly, you know where that boundary falls. So I took a look at the Um information hopefully you can see my screen here. This is the um california department of conservation anchors county tsunami Hazard areas and this is when you zoom into the site, this is pelton avenue here And you can see that the tsunami inundation zone does cover the eastern portion of the site That's what was specified in that The 80 or so page environmental document that far over referred to That document also mentioned that you know with tsunamis. There's typically a substantial amount of lead time in terms of warning time that allow allows people to Evacuate an area as as shown in that map from the department of conservation. It's not it is adjacent to But not directly in the um tsunami hazard area, but nevertheless, there are those Warning systems in place that allow for um people to vacate the area if There is an expected tsunami Okay, great. Thank you. Um one more question for staff and then I have a couple questions for mr. Bernstein if that's okay, um Can you just reiterate the um Well, I mean it's it's in the it's in the agenda reports not really a question But I well, okay, I want you to just go back and reiterate what the code states around the um proposed inclusionary By the planning commission If you could just restate that for us Sure, I could do that can uh, can I ask for clarification? You want you wanted me to reiterate what the planning commission had how they had interpreted the code How they had interpreted and and why our um staff found that interpretation to be incomplete or incorrect Okay, um, I'm going to go ahead and share my screen So, um, it was regarding this alternative methods to comply with inclusionary housing requirements So the way that the code reads is that Of the first highlighted part here an applicant may propose to satisfy the inclusionary housing requirements of this chapter By providing congregate living units or assisted living units and then second if the approval body Determines that a proposed residential development includes congregate living units or assisted living units the following alternative requirements Shall apply and then it explains that 15 ratio for the congregate care units So what the planning commission did was they just took this Second sentence if the approval body determines So they decided to make the determination on their own that this project includes congregate living units or assisted living units And so they applied this 15 percent inclusionary requirement But um, this first sentence was I guess it's the second sentence and that was actually the third But this first sorry this the previous sentence was um, I guess disregarded But really the way the code reads is that both of these Things need to be satisfied in order for this 15 percent Alternative requirement to kick in so first the applicant would need to propose To satisfy the inclusionary housing requirements with this alternative method of compliance And then if they propose that at that point the approval body would determine Whether there are indeed congregate living units or assisted living units that would then qualify for that lower 15 percent Inclusionary rate as opposed to the standard 20 percent. So in this case The applicant did not propose to Do this alternative method they just they just chose to do the standard compliance, which is 20 percent of The dwelling units, which are the units with the kitchens and this was information that the planning commission had Correct. Yes, they made their decision. Okay. Yes. This was the analysis and the staff report Okay, thank you. And then I just have two questions from mr. Bernstein if If you could come up um If you mr. Bernstein if you want you wanted to speak to the community engagement Could you just very briefly in 30 seconds? Tell us the um, how long you've been working on this project and what specific actions you took for community engagement Um, sure. Yeah, we've been working on this project for uh, about three years now Uh, we had uh, we had our first um neighborhood meeting which was attended by over 100 folks It was it was a live meeting which was nice Um in early 20 2020 Um based on the feedback from the neighborhood, uh, we made very significant changes including Reducing the size of the building But one of the most important things is we had made an assumption because the lighthouse the school that was on the light excuse me on uh on Eucalyptus avenue was using eucalyptus as a loading area We made an assumption that we could use that for our loading. That was uh, um, the neighbors Did not like that and so because of that we closed all loading activities on eucalyptus avenue and moved our loading access to come in through uh West cliff and then we moved our loading area to the southeast corner of our building Which was the area furthest away from all residences Then we had a second neighborhood meeting. We presented that uh, unfortunately that was a virtual meeting But it was also attended by I would say 60 to 80 Neighbors and it was extremely well received the changes that we made Based on the reception that we got there. We then Submitted our project for a with a formal application to the city But over the the next year and a half including up until even several weeks ago. We have continued to work with neighbors I think ralph meinberg mentioned that, uh, you know, he's a neighborhood representative I'd be meeting I've been meeting with ralph probably every other month for a year and a half Getting feedback from neighbors. I've also met with individual neighbors Not all name not every neighbor because I I met with neighbors who reached out to me Um, I walked the neighborhood and if people came up to me I answered questions But we continued to make changes and we downsized the project again And at that time we reduced we eliminated the third floor and went to a two-story building And by eliminating the third floor we eliminated and it was unfortunate our independent living units Which also not only made the building smaller but reduced the impacts and reduced the parking requirements and traffic Thank you. Um, and then I just my other question is around the Inclusionary unit. So it's clear that you did not propose an alternative method And um So you chose to go with a 20 inclusionary of the units that are dwelling units We just heard again from this from the staff um And my assumption is that if your appeal was denied You can speak for yourself, but with this pot with this project be feasible If we move forward with planning commission's recommendation With the additional it would not we could not move forward with this project Um, so my next question maybe last question to you is um with the 20 inclusionary Of the 13 units that qualify It's the 2.6. Am I right 2.6. That's correct. Yeah, it rounds up 2.6. That's correct. And so um, we're required Are we typically round down? So there's two units. Would it be feasible for the project to round up and make it three units? Is that something that you would consider? Yeah, we could consider that Yes, that's correct Okay, thank you. Those are my questions. Um mayor, I have some comments and then a motion if that's okay Okay, okay And I know others will probably want to speak so I'll keep it quick. Um So I I really want to just appreciate everyone who came out tonight Either virtually or in person. I'm sorry that I'm not there in person I want to appreciate and thank everyone who's been engaged in the last couple of years This is also my neighborhood. I'm very familiar with the area and take my dog out for a walk there almost daily So I understand the concerns around impacts and it's it's very clear to me that This applicant has worked extensively with the neighbor Has as was just reiterated really met a lot of the neighbors needs We heard from some speakers that we have a tremendous need for senior housing As I've talked to community members I hear a lot from people who are my age in their 40s that they have parents living in single family homes that They cannot leave because they don't have another place to go to So if they leave their single family homes, this will open it up to families of three four or five Um, and they would get the assisted living that they need. So there's a need in the community Um, I I I think that this is the way that we want to roll out projects is to engage deeply with the neighbors Is to make changes is to bring in experts from the field the biologists that were named by mr. Bernstein I know some of them. They're very reputable experts in our local community that have been doing the work So these are the aspects of a project Unfortunately, not all projects that come to us go through this process But these are the aspects of a project that will make it a successful project um, and um You know, I'll just briefly say that it's clear from the staff report in the presentation When we heard from mr. Bernstein That this alternative method that the planning commission the planning commission ignored that the alternative method Can't be applied unless the applicant proposes it and the applicant did not propose it And we just heard from mr. Bernstein that the project would die It would be killed if we impose this condition So if that's the Intent of the commission to kill the project. That's another story. I don't think it necessarily is And I think this is a good project. There's a need in our community. So with that, I would like to move staff recommendation And I can read it if you'd like with the added condition to round up the 20-percent inclusionary from two units to three units So I can would you like me to read the staff recommendation mayor? Yeah, so, um Yes We have a motion by councilmember calentari johnson And I'll move resolution denying the appeal of annan robert seagull and upholding the appeal of roger Bernstein Thereby adopting the resolution approving the non-residential demolition authorization permit sequential lot line adjustments special use permit coastal permit design permit and heritage removal permit To reconfigure five lots into two demolish two existing school buildings Approximately 28,470 square feet remove six heritage trees and construct a 76 unit Including 13 full dwelling units senior housing facility as approved by the planning commission But the deletion of condition of approval 60 and then with the addition of a condition approval of adding one extra Affordable unit making it a total of three Thank you. Is there a second? I'll second that vice mayor walkins Is our second Okay, does that conclude We have a motion on the table Thank you, and um, I will now bring it out for Further discussion. Um councilmember brown. You had your hand up Well, I um, I actually had a question for mr. Bernstein as well um My question is is trying to get a little bit more detail on the Plot plot out if you had to comply with a higher inclusionary percentage would the project be feasible my The answer is obviously no because you wouldn't be here appealing if that weren't the case but I wanted to I wanted to see if I if I could just hear a little bit more about the That challenge for you because I'm still weighing the Way that the planning commission interpreted our rules and and I would argue that there's some Some gray areas in our our zoning code that Leave this open a little bit more open to interpretation Then then what I'm hearing. Um, so what I'd like to know is um In your In your analysis Um that two units out of 76 was going to meet the minimal requirements Um Did you contemplate additional units at all at any point additional inclusionary units at any point? Um, and I just like to understand better how it's it's impossible Like I'm what I'm hearing is it's impossible to do this unless you know without I guess three now So, you know instead of two and a half three, um units on a 76 unit project um, and so I also I'm trying to understand the um You could just tell me more about how that will make it infeasible to do any more affordability. I My goal in being here is representing the public interest. I believe it's in the public interest to maximize our affordable units in these projects um, we don't have um You know a lot of tools for that and this is one of them our inclusionary ordinance Um, which has been eroded I'll leave it there on that one, but can you just talk a little bit more about what makes it infeasible to? You know provide additional affordability and um, like at what level and And then I'm also trying to understand if they're not Congress units and they're not dwelling units and they're not assisted living units. What are the other units going to be? And those are all just exempt. I'm still unclear about that. So if you could help me understand Let me try to explain first of all that we did have more affordable units in the project when we had more units overall I think at one point we had four affordable units when we had a project of 92 92 total units what we do when we when you know, and it's there's a there's a lot that goes into this and I You know, I'm I'm I run our construction group. I'm not a finance expert Um, but what we do is when we run a pro forma we back into sometimes we'll back into uh Into what we we can we can build in order to give make a project have a feasible return We are not a non-for-profit company, but um, we're not looking to try to You know pillage the community we we need a project that's going to give It's going to give us a decent return one of the things that we have to do is we also have to appease just like all of you Do we have to appease our banks or lenders and financial partners, etc So, you know the project the project has to be feasible What we did on this particular project is we did we did what they call like a reverse engineering And I use engineering because I'm more I'm an architect actually so I have to think in those terms But we reverse engineered it so that we figured out that we could we could reduce the project down to essentially 74 Market rate units and two affordable units and the project still worked What we did do is we did that calculation about a year and a half ago Maybe a maybe a little less maybe a year and a quarter ago But we what we did not take into account was a tremendous escalation in construction costs Really, you know, all things were equal, but construction costs continue to go up Now they went up. I think I would say in last year construction costs went up about 30 percent Now they you know some things came down a little bit You know the price of lumber came down a little bit And so there were some things that started to balance out But they did not and that typically that's what I've seen through my many years of Of building is is they they don't come back to their original cost So in order to make the project work, we had to we had to we had to try to play this little game of It's I don't know if it's really called chess or you know, whatever you would call it We move pieces around and we figured out that Really the only way we could make this work was 74 market rate units and two affordable units and then we went and and we actually and we relied on on Staff and the city attorney advising us that we were meeting code Then we went to the planning commission and The commissioner Schifrin I Added this condition So we immediately went back and we started doing the same thing this reverse engineering to figure out boy Can we can we add all these units and still make it work? And we looked at it and and to be honest, I mean we they approved the project We didn't we weren't about to try to appeal our own project if it worked It didn't work financially the returns weren't there. We wouldn't be able to go get a lender We wouldn't be able to get a financial partner and it would not it would not work for us so We did start looking at you know, what what might work You know, could we add one could we add two and and unfortunately the threshold was We could potentially add one our hope and and you know hope is a terrible strategy Tell people that all time. I hope is that construction costs don't start You know escalating next year like they did last year I don't think they will It seems like things are starting to flatten out. I've talked to i'm I'm continuing it as I mentioned I'm working with local contractors And i'm talking to them and they're telling me that the price of steel the steel commodity prices are still down What is what is continued to go up is fuel costs and labor labor and fuel are still Are extremely expensive fuels leveled out labor has not So, you know construction costs are incredibly expensive and unfortunately we're we're at a position where You know, I I'm pretty sure we can make it work with three affordable units. I don't think we could make it work with anymore Okay, thank you for that And my other question then just being and again, maybe I'm just Really dense. I've read through all these materials and I've really been trying What are you calling those other units that are not Insturred residential, what are they going to be if they're not congregate and they're not dwelling units So we are we are planning on building a community of assisted living and memory care units You know, I don't know if it's the the semantics of what what we're calling them My understanding is based on the city the city code We were required to provide 20 of the Of units that would be what would qualify as dwelling units and there were there was a specific definition around What would qualify as a dwelling units and it had to it related to kitchens And then there was there was a discussion with staff about what constitutes a kitchen and there was two or more appliances and there was some other things so you know, we And a lot of our communities are assisted living communities. We don't have any kitchens We might just have a refrigerator or just a microwave or just a sink Um, we elected to go ahead and and try to put in these You know a couple of small kitchenettes a few small kitchenettes, but it's really just two or more appliances On our in these communities Typically most of our residents come down to the the dining room for uh for their meals If they cannot if for some reason they're sick, they're not ambulatory right now They have their meals brought to their room. It's very rare that any of our residences In assisted living residents prepare their own meals. They might heat something up in a microwave They like to have a sink to wash their hands or wash a cup of cup for a cup of tea or cup of coffee, etc So we're calling them assisted living in memory care, but I think our our primary Uh discussion with staff is what is what is the city charter? What does the city code require? And and we were told early on that The way we interpreted the project was Was a code compliant project and we relied on that and we were told that by the city attorney as well And then that was continued to be there was there was continually reinforced down the line So we relied on that to design our project Thank you. I appreciate it. I'm just gonna say that um I I I recognize the frustration in Being told that you're compliant and then having these kinds of questions come up. Um This is not the first time that I have disagreed with the staff's interpretation of our inclusionary policies So I'll just leave it there, but I appreciate you trying to help me understand the realities of your Stances, the reality is I think we can do three units. Um, whatever the your policy states That's I think that's probably the limit that we can do to make this project work for us Thanks Does that conclude your questions? uh council member meyers I'm looking at the um The uh site plan drawing Can you describe a little bit better to me? Where are people coming in and out of the drive in and out of the parking lot because I see um So i'm looking at the drawing. I have a site plan. Um, if you could put it up Because it looks like I have a site plan out of our project Uh, it was on the uh in the that what I submit sent to the staff this afternoon Yeah It was the um There's a site plan. I sent two packets. There's uh, there's there's a site plan not the addendum the other one the other Packet figure two and there we go. So go forward go forward a little more It's going next one Right there. Okay. That's that's our current site plan that shows Uh, all of our current tweaks and changes that we made even after we submitted to to the city um Right now Our primary access for vehicular access is off pelton avenue. It's the existing curb cut off pelton It's it's it's drawn in there in in orange. You can see there on on pelton avenue. Yep um, that would be our our primary access for for vehicles Into our parking lot and then we have uh, we've added a Um paved drive that connects our parking lot with the oblates parking lot And then you can see the sign that says added parking and access drive from west cliff Those are the eight parking spaces that we're we've added that area right now is dirt So we've added those eight parking spaces And then if you continue to go to the east north is up the page So it makes it pretty easy if you need to go to the east there's an existing gate there on That's right. That's my question. What's going to go on with that gate? Yeah, so that that's going to be our delivery entrance and exit And is that going to be open and closing just only for deliveries? Or is that going to be available for people to come in off of west cliff? It's really just for it's for deliveries It's for deliveries and commercial vehicles. So trash deliveries And and potentially uh fire and ambulances could use that as well and ambulance coming into the site could potentially use that And the the entrance a little bit further north past the uh the meditation garden that typically I live in the area too. So I I know the area well That typically is open because of the cafe Do you imagine that is also going to be just remaining open during the day? Yeah, we haven't we haven't planned on using that access point at all again We're you know, as I mentioned earlier, we're going to have anywhere between 12 and 18 staff members here Most of our residents don't drive. We get a couple of deliveries a day We get some visitors All of you know that uh, you know who have family members at these communities You think they get a lot of visitors. They really don't it's unfortunate, but they really don't So but the the vehicle the vehicle traffic will come in and out off off pelton And then we're going to have a sign On in facing our parking lot that's going to require Our visitors And and anyone and staff members anyone using that access point on pelton to exit and make a left turn Onto pelton and head straight back out onto west cliff that way. They don't drive down pelton They don't add any traffic even though there's almost no traffic from this community They don't add any of our limited traffic Westbound on on pelton And they don't shine their headlights on the butterfly grove Okay I I guess my One consideration. I don't I'm not I don't think I feel like I have to make this a condition of approval, but I hope there's evaluation. I guess as you know as you continue through the and if and upon starting for the facility to open I think this um This lower entry there, um closer to the corner of west cliff in pelton That's going to be gated I have the feeling that will become a very popular way for people to come in and out of your facility potentially just my my knowledge of living there for a long time is You know, I I'm not sure that people are going to make the turn on pelton If they can if they can potentially make a you know a straighter shot right in off of west cliff right before the stop sign so I won't make it a I won't Change the motion to make it a condition of approval, but um, you know, I think Just for the staff's Thoughts as you move forward through this Maybe give that some consideration. Um, the the main thing I've heard is um And I do see the issue there with the adjacency to the stop sign But um, I'm just curious to see how all the parking and moving through the parking lots going to work But um, just I'm thank you for the explanation of the circulation. No problem. Thank you. Thank you um Okay, so um, I have council member Cummings and then council member golder I don't really have and Again, I'm sorry. I'm getting over a cold some of voices. I'm not that strong tonight, but I'm gonna I'd like to make a couple comments on this. Um First I just want to thank all the members of the public who came out to speak Either for against this project, but it's great for us to be able to hear Your concerns to be able to hear hear all of you out as we deliberate on this item that's before us You know, I'm not an opposition to the project, but I I have some serious concerns with the affordable housing components and some of the impacts that have been brought up this evening But in particular to kind of what I've been hearing in this discussion around the affordable housing because It sounds like You know the the city council is making a very strong effort at trying to maximize the amount of affordable housing because We are in a housing crisis in this community And it sounds like what happened was that the developer Talked about what they could make happen went to the staff and then the staff said, okay Well based on what you can do You can provide us with two affordable units and then the rest of this is market rate Which what we should be doing is trying to figure out how we can maximize the amount of affordable housing And if it turns out There's not enough money you can't make a pencil out Well, then we should be working together to figure out how we can finance and find funding for those other units Um, and I'll just say, you know, I'm not a lawyer But reading the code that's before us and going over that language multiple times Um, I'm really concerned if this gets appealed to the coastal commission Or if somebody wants to you know, bring forward this language because It's pretty clear that there is no requirement that the applicant Um They can they may propose to satisfy the inclusionary requirements by providing congregate units or assisted living units But it's not a requirement for the approval body to determine That proposed residential development includes congregate living units or assisted living units And in the maps that have been shown and what we have in our in our agenda packet Says that there are assisted living units in this project And you know, it clearly says right here that the floor plan shown on the project Plans include studio one bedroom and two bedroom units and include 59 assisted living units with a total of 76 beds If we apply the 15 percent inclusionary, that's nine units that would be affordable And that's what we need in our community and for something that's being built on church property And the commitment that the church has to serving people who are experiencing poverty and people with low income My expectation would be that we're trying to maximize the amount of affordable housing that's going into this project so I based on the the Our current code and what we have before us I actually agree with the planning commission that Nine units would be appropriate and if that's not something that can pencil out We should figure out how we can make that work Because that's what we need. We have many homeless people who are seniors who are never going to work again Living on our streets and nowhere for them to go and they cannot afford the market rate runs. It would be in this type of facility so You know, I I hope we can I mean I appreciate the effort to try to increase it by one But that's not enough with where we're we're at in this community right now And so and I'm sorry if the staff misled you on that and maybe the staff is right and this will go through And there won't be an impact, but I think that that is up for legal interpretation Because while staff might have their way of interpreting it. I think if this were in a court, it could be our you both ways So I'll just leave my comments there And um Yeah, I'll just leave my comments there this time. Thank you all Thank you councilmember golder Thank you. So, um I just would like to to speak to the one the appellant I'm a sequel in that I don't I didn't feel like the staff just presented us with this and that and that we're supposed to sign kind of on the dotted line It's something that had been in the works for several years And I think of all the projects that have come before us They've had the maximum amount of community outreach with the neighborhoods and with the council And as soon as I was on council or maybe even before I met with the developers and they Asked my opinion asked what the community would think asked They were really receptive and I saw it as a back and forth as opposed to the project. It's not a You know a senior facility but the one that I keep using as an example over in seabright Where they slammed all those condos onto that single family residence and then the neighbors were worried about parking and now they're Turning the garage into an ad you like that's the opposite type of development. And so With with this, um You know I've seen a lot of churches also being redeveloped around town. We've seen some converted to housing We've seen the one of the circles that's maybe going to be housing. We'll see right and so I understand that these are getting redeveloped and people would prefer to have open space and prefer to other things there But I you know, I'm also a realist and know that you know land use changes over time and In real estate the first three rules were location location location. Yes, of course It's going to be an expensive place to live But I agree with my colleagues and that hopefully it'll Turn over some single family residences that people will be able to rent or buy um a concern that I have in regards to the affordability piece and the inclusionary is that In order to make it pencil out if you will Those market rate Units will be up And then the house the That they rented out grandma's house is now going to be rented for more to pay for that facility that they're inevitably going to need And I do understand that there's that not everybody will be able to afford this and that's really unfortunate Um As soon as I was presented with the first meeting I went and met with my rep Sells the all extra insurance and I got long-term care insurance So it's something that I could afford if I need or want You know for 20 a month for now the cost of a cup of coffee a day, right? And I know the other side where it's like one of one of my husband's grandparents had to be essentially destitute for medicare to kick in and put her in a different facility than my grandma got put in because You know their life circumstances where she was able to rent out her house, so I totally get that Um, but I do think by and large I agree with the staff's recommendation. I do think that there will be impact to the to the to the monarchs I'm not stupid like I can see that they're across the street. There will be impacts but to the extent that this developer has really, um I felt put out tremendous effort in bringing this project forward I'm inclined to support the staff's recommendation at this point as well Thank you councilmember golder and vice mayor Watkins Thank you mayor. Yeah, I won't repeat. I think what some of my colleagues have already stated I appreciate all who have been here. I also appreciate all the outreach and work that's gone into this Um, I do know that there's been a series of reductions which I I know density is is of a concern and keeping that Feeling consistent with the community is also a priority and I know that comes also at a cost for Additional units potentially being more affordable. Um, I think you know my my comment I guess or my question maybe is you know in terms of the legal opinion. We do have our legal uh person here and and I I would like to have an opportunity to hear from Cassie. Hi, I was wondering if I was going to get called on. So thank you Yes, and I you know, I appreciate this discussion and appreciate You know councilmember brown and councilmember comings interpretation as well um, what's I think could be emphasized a little bit more is that The section that the planning commission relied upon is in this other section that's entitled alternatives and it has Excuse me. It has a bunch of other alternatives listed like things that we consider Like the in lieu fee like dedicating land. So all these things that we consider to be alternatives to fulfilling The requirement and it's in that section And so, you know, I do think that if a court were to look at this and I tried to look at it You know fairly, um, I think that of court looked at it. They'd say well, it's in this alternative section It's got this kind of language that talks about May propose And yes, it does have the shallow language that comes in later And I know that's what councilmember comings and councilmember brown and the planning commission That they looked at but all things considered it looks like it's an alternative And uh, and I think I think that's the way most likely a court would come down on it Especially when we're talking about, um, you know the public we all need to rely on You know, what is the cleanest clearest interpretation of a statute, right? And so Especially when something is going to cost somebody a significant amount of money I think a court would say, you know, this should be very clear, right if we're going to require an applicant to You know put this much extra money this much extra affordable units It should be a little bit more clear than it is. So that's kind of the way that I came down the legal analysis of it But I really appreciate that clarification and that explanation of your process to land where you did I think that's really helpful information. Um, I guess just in conclusion, I know we've heard of you know, anecdotal Circumstances and issues around people needing this type of living and the reality is that the data actually substantiates that as well We have an aging population like many communities And we have a declining population of young people and working people being able to stay here So having a diversity of housing options Including housing for our elderly folks who are aging in our community is really critical To maintaining the fabric and the diversity of our community that we want to see So I feel really Um happy to see this type of housing brought to our community For a number of reasons and given all the conversation we'll too be supporting the um the motion on the floor Thank you, vice mayor Watkins, and I know council member golder had one more question. You had your hand raised So I did forget to ask um, and I don't know if Fire's still on but I was curious which fire station would have this facility in their first due and if you've thought about which way um You would enter whether it would be via West cliff or palton If they were coming from almar from downtown There you are. Hi tim Hi, um, so it would most likely be our downtown station So we'd be coming down west cliff, but you know, we could never plan for any emergency We don't know what direction we're gonna be coming from and not only that we don't know what direction we'll be leaving If there's another emergency that we have to leave So there's there's no guarantees on on where we'll come in or leave from the facility itself Our concern is once we're in the facility that we can easily get out of this. That's that's our Thank you council member brown Thank you. I just wanted to make a couple of comments just to be very clear about where I'm at on this um so one I want to thank the uh community for Your comments for participating in this uh conversation for being engaged I want to thank the developers for working with the community to Make adjustments. I mean I that is really a model for how You know, we hope things happen when new developments come in. There's always going to be an impact There's always going to be opposition. Um, and I appreciate that you've Been willing to have those conversations and make adjustments Um, and so I'm I want to say that I will be voting no on the motion Because I I just fundamentally disagree with the way our Inclusionary housing Rules have been interpreted in this case and and others and I'm I'm I believe that we need to do better And that's not you got the the story and the interpretation of the rules that you got so You know, I understand that but I I just fundamentally disagree with those and I think that we as a city Council have a responsibility to be clear about Um, the need for affordable housing meaning we have to be proactive about that and And and help us figure out if our inclusionary ordinance is unclear in some places Which it apparently is um, how we address that. You know, people developers want a clear, um Set of rules and the way that we operate it seems there is always some interpretation And and I've talked to attorneys who have a very different interpretation and I don't know that this one's going to get resolved in court But I wish you luck at the coastal commission Because I think that's where we're headed. I'll leave it there and You know just ask us to please take this seriously so that we don't every time come to this point where it's like Oh, we you know, we figured out that the least number of affordable units We figured out a way to make sure that the least number of affordable units is required That is what I see as a pattern It's happening here. I can't support it. All right Um, I would just like to add a couple of comments. Thank you to my colleagues And thank you to all the community members. I know that um, uh, Several of the emails that came in as well as other community members that were not able to come kind of reached out and um This clearly is uh Not a hearing on the project itself But a hearing on the appeals that were presented And the appeal of the inclusionary units Um an appeal of the planning commission's decision of the inclusionary units um, I don't think that that um To me, it was very clear Interpretation that if the 20 percent was not met then here are its alternative options and the 20 percent inclusionary was met and um, thank you for entertaining uh A rounding up Of the affordable units because yes, we need all types of housing in our community And three is better than none. So, um, I don't think that That was proven. Um, and so I will be supporting that And then in terms of the other appeal with the traffic study and the monarchs You know, this is I really appreciate Ann Siegel your thoroughness your persistence your passion your care And that we have a community that is aware And really fights for our environment I think that's one of the reasons why I love living here is we have such a beautiful nature and environment and people who care to protect it and um, I think at this point I I I'm not seeing any Um endangerment That was brought up in that appeal. So I will be supporting this motion. That's on the table We have a motion by calentary johnson and a second by vice mayor Watkins And um, I'd like to ask the city clerk to please call roll Thank you mayor councilmember calentary johnson Hi Golder hi Cummings no Brown no Fires I'm gonna vote for the motion. So I'm an eye and I just again would ask the developer over time as the facility opens Um, just to keep an open mind about how the circulation can work for the neighborhood as best as possible. So I'm an eye. Thank you Nice mayor Watkins I and mayor brunner. I The motion Passes with five eyes and two nose councilmember brown and councilmember Cummings Thank you. This meeting is now adjourned. Thank you