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Santa Cruz Council reallocates funds for hygiene services, advances Coral Street SUD navigation center design
Summary
After Housing Matters announced it will end drop‑in day services on March 31, the City Council approved a $400,000 reallocation from existing homeless-program funds for expanded hygiene resources and authorized design services for a Coral Street substance‑use‑disorder navigation center, while urging continued county partnership on mail and shower services.
Santa Cruz City Council on Feb. 24 approved a staff plan to reallocate roughly $400,000 of previously budgeted homelessness funds to expand immediate hygiene services and authorized selection of NJA Architects to design the Coral Street Substance Use Disorder Navigation Center.
The action followed a presentation by Larry Imwalle, the city’s Director of Homelessness Response and Community Programs, who said Housing Matters announced it will discontinue drop‑in day services on March 31 and described current service volumes: "the restrooms and showers serve approximately 40 to 50 people per day" and mail services served "approximately 1,700 people per year," which the city and county must now replace or reconfigure. He told council the county is developing two regional mail access points at the Emeline campus in Santa Cruz and at 500 Westridge in Watsonville.
Council members repeatedly pressed staff on legal responsibilities and funding. Mayor Fred Keeley emphasized the city’s choice to fund homelessness work: "we choose to spend $10 million a year" on homelessness programs while noting the county holds statutory obligations for some services. Councilmember Golder noted the city previously funded shower improvements at Housing Matters and asked what happens now that those showers will not remain open to walk‑in day users; Imwalle confirmed the renovations were completed in 2022 with ARPA funds and that continued shower access is a county‑city issue being negotiated.
Members of the public voiced a mix of concern and offers of assistance. Athena Flannery, who said she runs a mutual aid group in Santa Cruz, criticized ongoing 'sweeps' and raised ADA notice concerns, saying, "sweeps is the really sugarcoated word for the fact that this city pays our police and our public works team to destroy people's property." Tom Stagg, a former Housing Matters staffer, and other community volunteers described organizing a Belonging Collaborative and fundraising efforts to provide dispersed day services and urged close city‑county coordination.
Staff described three near‑term priorities: expand public restroom and hand‑washing access (through extended hours, portable units, or modular restroom contracts), coordinate with the county on mail‑service regional points, and explore longer‑term resource investments and recommendations for showers and other services. Imwalle said the city expects to have recommendations for immediate hygiene access in place for April 1 and will return with additional proposals as planning and county coordination continue.
Councilmember O'Hara moved, and Councilmember Golder seconded, the staff recommendations for Item 8 (Day Services Planning Update, budget adjustment) and Item 13 (Design Services Contract for the Coral Street SUD Navigation Center); the clerk recorded an all‑aye roll call and the motions passed.
The council directed staff to continue working with county partners on mail and shower services, to pursue community input, and to return with further recommendations and budget details. The county indicated it will take primary responsibility for mail services and is developing regional points to maintain benefits access.
