At the meeting the Santa Cruz City Council approved a number of procedural and policy items by roll call.

Industrial Development Authority and Public Improvement Financing Corporation elections: The council elected officers for the Industrial Development Authority (executive director, treasurer and other officers as recommended in the packet) and for the Santa Cruz Public Improvement Financing Corporation; both slates were approved by roll‑call vote. The clerk recorded the roll‑call ayes and the chair announced the motions passed.

Consent agenda: The council approved the consent calendar (items 13–27 inclusive) in a single motion after a series of member comments and public testimony on selected items. Notable consent items highlighted in discussion and public comment included:
- Item 15: A resolution to strengthen local worker and resident preference mechanisms for affordable housing and to develop verification/tracking systems for preference implementation. Multiple community speakers and council members expressed strong support.
- Item 16: Ocean Street beautification funding and design work.
- Item 22: Renovation of the Tot Lot Playground at Beach Flats Park, supported by a $3 million CAL FIRE award for several early‑education division sites, discussed by Community Bridges staff.

Item 31 — Energy reach code (nonresidential HVAC): Staff introduced for publication a local amendment to the 2025 California Energy Code that applies to existing nonresidential buildings replacing or adding certain single‑zone rooftop packaged HVAC systems. The ordinance provides two paths: applicants can install a single‑zone heat pump that meets state code, or, if they install a gas furnace plus air conditioning, they must also install a heat‑recovery ventilator for larger systems. Staff presented a cost‑effectiveness study and Central Coast Community Energy (3CE) testified in support. The council voted to introduce the ordinance for publication.

Item 32 — Year‑end budget adjustments: Finance Director Elizabeth Cabell presented a year‑end budget adjustment resolution to correct and close FY25 accounts and to reflect one‑time grant revenue and the first full year of a new local sales tax. The council approved the budget adjustments by roll call.

Votes and outcomes (summary):
- Election of IDA officers: Approved (roll‑call vote; ayes recorded)
- Approval of IDA minutes (10/08/2024): Approved
- Election of PIFC officers and approval of PIFC minutes: Approved
- Consent agenda (items 13–27): Approved
- Consent public‑hearing items (28–29): Approved
- Item 31 (introduce energy reach‑code ordinance for publication): Approved (roll‑call vote)
- Item 32 (amend FY25 budget): Approved (roll‑call vote)

Why this matters: The consent decisions set administrative direction on housing preference rules, public‑space investments and other ongoing city programs. The reach‑code introduction signals continued municipal effort to reduce building emissions and to encourage electrification. The budget adjustments close FY25 and set a financial baseline heading into the next fiscal year.

What's next: The reach‑code will proceed through publication and the standard ordinance adoption process; staff will return with additional reach‑code proposals for new construction and multifamily housing when cost‑effectiveness studies are available. The local preference item will be followed by ordinance work and policy implementation steps.