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feburuary 2004

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AMBAG 10TH ANNUAL TRI-COUNTY ECONOMIC CONFERENCE

The timely topic for the conference was “Regional Housing and Community Development (HCD). The
Strategies for Economic Recovery”. Before three governmental jurisdictions, Scotts Valley, Capitola
proceeding with details about the conference, it might and the County have all received letters from HCD
be helpful to know some background information on who has reviewed their draft Housing Elements and
AMBAG (Association of Monterey Bay Area requested changes/additions to their drafts. (Note:
Governments). The Mission Statement says: The Capitola is reviewed later in the Watch newsletter.)
Association was organized for the permanent
establishment of a forum for planning, discussion and The AMBAG conference agenda began with a
study of regional problems of mutual interest and presentation about “Harnessing Higher Education as
concern to the counties and cities in Monterey, San a Driver in Economic Development”. Dr. Peter Smith,
Benito, and Santa Cruz Counties; and for the President of California State University, Monterey Bay
development of studies, plans, policy and action spoke of the importance of higher education. Our
recommendations. AMBAG’s Board of Directors is Constitution provides the promise that an inclusive,
composed of locally elected officials appointed by their representative government allows its children to thrive
respective city council or board of supervisors. Each by attaining a college education. But there is a crisis
member city has one representative on the Board, while happening, and fewer students are moving on to
each member county has two. The AMBAG Board of college. In the last ten years, the number of people
Directors sets policy and oversees a small professional moving up the ladder in the various sectors of the
staff. AMBAG’s funding comes primarily from the state economy is declining. Instead of our children
and federal governments for mandated planning garnering higher education, visas are granted to
activities and grant projects. Local funding comes outside countries for nursing, engineers, and science
primarily from annual membership dues contributed and technical degrees. The United States is no longer
by each member agency. first in the world for college attendance. Dr. Smith
proposes certain things we can do in Monterey, Santa
AMBAG is the organization that provided the housing Cruz and San Benito Counties as a regional
numbers allocated to each city and county for inclusion collaborative: 1) Create a unifying vision; 2) Create
in their respective housing elements. AMBAG has an innovative approach to economic development by
been sued by Santa Cruz County and the cities of involving area businesses who provide and endorse
Capitola, Santa Cruz, Watsonville and Scotts Valley a “Tri-County Educational Passport” so that more
over the AMBAG’s 9,715 housing unit allocation up children can attend college; 3) Invest in your workforce
to the year 2007. Santa Cruz wants the numbers and the economic future by promoting continuous
reduced by over 2000 units. Meanwhile, cities with education to employees; 4) Create greater expectations
State approved Housing Elements are eligible for for K-12 and go beyond! Each school should seek
government housing grants. The lawsuit is ongoing, corporate partners; and finally, 5) formalize those
and at the present time, the cities of Watsonville and expectations and make them a reality by working with
Santa Cruz now have State certified Housing Elements. community stakeholders because an investment in
Scotts Valley, Capitola and the County are still working education is an investment in our future.
on obtaining certification from the department of

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Speakers, Mary Claypool and Ted Lyman from the The Legislative Panel spoke during the luncheon and
County of Monterey and Rock Pfotenhauer, Dean, included US Congressman Sam Farr, Senator Bruce
Career Education and Economic Development for McPherson, Senator Jeff Denham, Assemblymember
Cabrillo College provided a lively discussion on the John Laird, Assemblymember Abel Maldonado.
next topic— a Clusters Update. Clusters started in Moderator, Deanna Sessums, League of California
the Monterey Bay area in 1994 as a regional strategy Cities, asked the following question to Congressman
to gather the community together to focus on the three Farr: “In your opinion, what is the role of the Federal
main economic sectors in the area: tourism, agriculture, government in Monterey Bay?” He emphasized the
and education services. Economic clusters are importance of the “Regional” collaboration. Farr said
integrated groups of companies who export products that California is a payer state—the Governor only
or services from a region, supported by local found $350 Million in Subsidies from the Federal
specialized suppliers of raw materials, parts, government. He would encourage the state
components and services; working together, all are administration to go after Federal dollars. He did not
supported by a solid economic base. And out of this agree with “cut, squeeze and trim”. The next question
group emerged Creative Solutions, which would focus was posed to each legislator: “Given the State of the
on creating more available housing that would economy and the Governor’s proposal (to pass a $15
improve quality of life and involve the 3 E’s: Billion bond), what will be the impact on Monterey
Environment, Economy and Social Equity. In 1999 Bay?” First was McPherson, who said that real
and into the next decade, there was high optimism business growth has fallen and that we need to find
that funding would be available to move into high ways to allow growth in business and maintain what
gear, but the downturn in the high tech field changed we have. He did agree that money from a bond is
that opportunity. Instead, what was learned was that needed—maybe not $15 Billion, but at least $10
the collaboration of businesses, government, Billion. He wants to author a bill that says, if we
education, non-profits, and other stakeholders still don’t have the money, then don’t mandate it! Also,
proved a valuable component in the success of the he said we should be getting more money from the
region. Federal government. Senator Denham focused on
cutting waste, stronger fiscal management, more jobs,
An enlightening discussion about and with more Federal money and selling State-owned surplus
entrepreneurs in the Monterey Bay Area included some assets that are not being used. John Laird says that
very interesting information about the National people oppose the Governor’s proposed $15 Billion
Steinbeck Center in Salinas. This fertile Salinas Valley bond, but he does favor the school bond. He believes
is historically showcased with an amazing collection that the Governor’s budget cuts through necessary
by a local librarian of over 40,000 items on John items, such as transportation, health care, and tourism.
Steinbeck. The National Steinbeck Center with its Ag Abel Maldonado said that in order to strengthen the
Wing and Museum has brought over 90,000 visitors economy, we need to fix workers compensation. To
to the area. The first phase in the development was the improve the economy, small business needs help. In
Museum, followed by the Valley of the World Ag Wing the final analysis, all of the legislators agreed that
and the third phase will incorporate the strong ties of real public input and involvement is the key.
agriculture, tourism, and education in the Salinas Valley.

legislative watch

feburuary 2004

f o r t h e m e m b e r s o f t h e s a n t a c r u z a s s o c i a t i o n o f r e a l t o r s®

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Plan to attend the next AMBAG conference entitled CITY OF SCOTTS VALLEY
Monterey Bay National Marine Sanctuary
Symposium Sanctuary Currents 2004 Clean Waters, Code Adjustments Related to the Processing of Lot
Healthy Oceans March 6, 2004 at CSUMB University Line Adjustments:
Center from 8am to 4:30 pm. For more information
contact AMBAG at 883-3750 or visit AMBAG’s On June 12, 2003, the Planning Commission
website at www.ambag.org Watch! recommended to the City Council that the Scotts Valley
Municipal Code (SVMC) be changed to allow for Lot
CITY OF CAPITOLA Line Adjustments to be approved on parcels with
nonconformities as long as the Lot Line Adjustment
Housing and Community Development Review Letter proposal does not exacerbate the nonconformity.
to Capitola Re: Capitola’s Housing Element:
Capitola’s draft housing element was received by HCD The Planning Commission recommended the following
on Sept. 23, 2003. HCD commended Capitola for its changes:
strong framework for promoting housing development.
However, most letters from HCD address deficiencies •Lot Line Adjustment application, which includes a
related to a requirement for more specificity. They nonconformity that does not increase the
want the City to demonstrate exactly how the City plans nonconformity, shall be considered by the Planning
to accommodate and facilitate low and moderate Commission on the consent agenda; and,
income housing. One example states that 286 (6%)
of the City’s households are overcrowded. HCD wants •Lot Line Adjustment application that increases a
the element to include an estimate of lower income nonconformity shall not be approved by staff, with
households earning less than $35,000 and paying staff’s decision being appealable to the Planning
more than 30% of their household income on rent, Commission.
along with regulatory or incentives that could be
provided to encourage the development of additional On July 2, 2003, the City Council supported the
low-income rental housing that would alleviate Planning Commission’s recommendation with changes,
overpayment by lower income households. Additional as follows:
requests by HCD for inclusion in the Capitola Housing
Element are an inventory of vacant land sites suitable •Lot Line Adjustment application, which includes a
for residential development. HCD believes that legal nonconformity that does not increase the
Capitola is relying on redevelopment of underutilized nonconformity, shall be considered by the Planning
sites to accommodate a large portion of its share of Commission on the consent or regular agenda at the
the regional housing need. Indeed, most of Capitola discretion of the Community Development Director;
is already developed at the present time, and and,
complying with these and other requests will be
daunting. “Watch”! • Lot Line Adjustments shall increase conformity
whenever feasible.

The City Council directed staff to write a policy to begin
implementing these changes immediately (reference
pages 16-17, Policy P-16), and to return with a Code
Amendment as recommended by the City Attorney.

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On November 13, 2003, staff returned to the Planning parcel has a shed in the rear yard that crosses over
Commission and presented the City Council’s the property line. The Planning Commission wished
recommendations. The Planning Commission to have the flexibility to consider such a lot line
recommended that the Code Amendment allow for adjustment with or without requiring the correction
greater latitude, specifically that the Planning of such an illegal structure. The Commission discussed
Commission be able to consider a lot line adjustment the fact that such a situation could impact a property
“if on the aggregate, the level of conformity between owner who has no control over the status of another
the parcels is improved by approving the lot line involved property.
adjustment.” There was specific discussion and public
testimony regarding allowing the consideration of a The Planning Staff continues to recommend that, in
lot line adjustment where an illegal structure exists on order to formally implement these Planning Policies,
an involved parcel. The City Attorney continues to changes be made to the following Scotts Valley
recommend that a lot line adjustment not be considered Municipal Code sections: Section 16.02.030 (E),
under these circumstances. A Scotts Valley resident Subdivisions, General Provisions, Applicability and
requested that the City Council specifically discuss the Chapter 17.48, Nonconforming Uses and Structures.
issue of lot line adjustments with parcels containing Further direction is sought from staff and the Planning
nonconformities (which are by definition legal as Commission on how to address lots with illegal
created, but currently nonconforming) versus structures. “Watch”!
illegalities. This citizen felt that the Council did not
understand the implications of the language
recommended on July 2, 2003.

To further clarify, the definition of a “nonconforming”
structure is “any structure or improvement that was
lawfully established and in existence at the time the
ordinance codified in the Scotts Valley Municipal Code,
or any amendment thereto, became effective, but
which, due to the application of the Scotts Valley
Municipal Code, or any amendment thereto, no longer
complies with all of the applicable regulations and
standards of the zoning district in which the use is
located”. Conversely, an “illegal” structure or
improvement never met the Code.

The Planning Commission discussed the possibility of
allowing consideration of a lot line adjustment where
an involved parcel has an illegal structure and the
proposed lot line adjustment does not affect this
structure. The example discussed was the relocation
of a side lot line between two parcels in which one

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