Santa Cruz council adopts introduction of revised noise rule, approves childcare fee changes and accepts state grant for downtown library-housing project

The Santa Cruz City Council on Tuesday directed staff to return with a revised noise ordinance after approving an amended introduction that increases the ordinance—s distance standard from 75 feet to 125 feet, approved changes to the city—s childcare impact fee exemptions, and accepted a state grant for the downtown library and affordable housing project.

Council members debated how best to balance public health protections against noise with the city—s street-level arts and cultural activity before adopting the amended ordinance introduction. Council member Susie O'Hara argued for a decibel-based approach tied to California Department of Public Health guidance and enforcement tools; Council member Greg Newsom moved the amendment to set the distance at 125 feet and treat the item as an introduction that will return for a second reading. The city attorney confirmed the amended measure is an introduction and will come back to the council for a second reading.

The childcare impact fee amendments passed unanimously. Staff presented three changes: add an exemption for Santa Cruz County school-district employee housing projects; limit the existing exemption for accessory dwelling units (ADUs) and junior ADUs to those under 750 square feet; and modify the affordable-housing exemption so projects that include an on-site childcare facility are fully exempt, while affordable projects without on-site childcare would receive a 50% fee reduction.

On the downtown library and affordable housing project, council adopted a resolution accepting and appropriating the state Affordable Housing Sustainable Communities (AHSC) award. Staff and project partners told the council that tax credits were allocated in December and that contract execution for the AHSC award is the next step to finalize the funding stack; staff said a building permit for phase 1 is close to ready and that construction mobilization is anticipated this spring/summer.

Votes at a glance

- Consent agenda (Items 6–10): Motion to approve consent agenda passed (mover: Council member Golder; seconder: Council member Bruner). Roll call: Trigaro Aye; Bruner Aye; Newsom Aye; Golder Aye; O'Hara Aye; Vice Mayor Kalantari Johnson Aye; Mayor Keeley Aye.

- Public hearing consent (Items 11 & 13): Motion to approve passed (mover: council member on the floor; seconder: Council member Trigaro). Roll call recorded as unanimous Aye.

- Item 12 (noise ordinance): Initial motion by Council member O'Hara (decibel-based rewrite and expanded scope) failed on the floor. A subsequent motion by Council member Newsom to adopt item 12 with the distance amended from 75 to 125 feet (introduction) passed and will return for second reading. Final recorded roll call on the approved introduction: Trigaro No; Bruner Aye; Newsom Aye; Golder Aye; O'Hara No; Vice Mayor Kalantari Johnson No; Mayor Keeley Yes. City attorney confirmed this is an introduction and will return for a second reading.

- Item 15 (childcare impact fee amendments): Motion to adopt amendments passed (mover: Council member Golder; seconder: Vice Mayor Kalantari Johnson). Roll call: Trigaro Aye; Bruner Aye; Newsom Aye; Golder Aye; O'Hara Aye; Vice Mayor Kalantari Johnson Aye; Mayor Keeley Aye. Approved amendments: add exemption for Santa Cruz County school-district employee housing projects; limit ADU/junior ADU exemption to units under 750 square feet; require on-site childcare for full exemption of 100% affordable projects or else provide 50% reduction.

- Item 18 (resolution to accept/AHSC award for downtown library and affordable housing): Motion to accept staff recommendation and appropriate the award passed (mover not specified in the record; seconder: Council member O'Hara). Roll call: Trigaro Aye; Bruner Aye; Newsom Aye; Golder Aye; O'Hara Aye; Vice Mayor Kalantari Johnson Aye; Mayor Keeley Aye. Staff said the AHSC award was received in August 2023 and that the award and subsequent agreements will allow execution of the funding documents and move the project toward construction.

Why it matters

The noise ordinance debate centered on two competing priorities: protecting workers and residents from harmful noise levels and preserving the city—s public musical and cultural life. Council's decision to introduce an ordinance with a 125-foot distance standard means staff will draft a version for a later reading while enforcement standards and measurement approaches remain to be defined.

The childcare fee changes alter which projects pay the fee and by how much: the new rules exempt school-district employee housing, restrict the ADU exemption to small units, and reduce fees for affordable projects that do not include on-site childcare. City staff and the city attorney told the council that imposition of impact fees is supported by a required nexus study demonstrating a direct link between new development and the need for childcare facilities.

Accepting the AHSC grant advances the long-planned downtown library and affordable housing project into final financing and construction preparation. Staff said tax-credit allocations were secured in December and that the grant funds will support streetscape, bike-pedestrian and anti-displacement elements tied to the project footprint.

What council asked staff to do next

- Return the noise ordinance for a second reading after staff draft a version reflecting the 125-foot distance amendment and associated enforcement language.

- Prepare the childcare fee amendments for implementation consistent with the city's nexus study and administrative processes; staff provided policy rationale for the exemptions and reductions at the council—s request.

- Execute AHSC grant agreements and finalize financing documents to allow the development team to close and begin construction; staff noted additional permitting and bond actions remain in the project schedule.

Quotes

"We can protect public health while preserving the cultural and community experiences that define our city," Council member Susie O'Hara said during debate advocating for a balanced, evidence-based approach to noise regulation.

"This is a milestone event. We're getting very close to being in a position to break ground on the downtown library and affordable housing project," project manager Brian Borguno said during the AHSC presentation.

Ending

Council members said they expect the noise ordinance and childcare fee amendments to return for further action after staff draft the revised language. Staff set next steps for contract execution on the AHSC award and continued planning toward a spring/summer construction start on the downtown library and housing project.