Dear Friends,

I don't need to tell you that it's wild times in government. Federal and state budgets provide 57% of Santa Cruz County's General Fund, so we're significantly impacted by all of the changes real or threatened. 

This week the Governor's May Revise announced $78.4 million for new addiction treatment facilities in our county, even though it is still unclear how we will pay for their long-term operation. 

The County is planning significant maintenance work at Moran Lake Park this summer both for basic maintenance of the parking lot and bathrooms, as well as to manage the trees for the stronger wind storms that we're seeing from climate change.

Even as we stare into a recessionary cycle, local government is still completing projects funded by the last expansionary cycle: Phase I of the new auxiliary lanes are open on Highway 1 and the Rail Trail is opening a new segment off of Bay Ave next Wednesday morning. 

Finally, if you need inspiration or want to take shelter from the news cycle - get involved with your local community! You can join me and our Parks Department tomorrow morning to plant a native pollinator garden at Floral Park. You can also learn about Live Oak History at the Simpkins Swim Center and get involved in the effort to celebrate it. If there's a public safety issue that you're concerned about, come to the Sheriff's Center (5200 Soquel Ave) next Tuesday night for a Sheriff's Town Hall you'll have the opportunity to problem solve with the entire chain of command.

We share a wonderful and remarkable community. Together, we'll overcome whatever life throws our way.

Sincerely yours,

Item 20. Consider update on the California Governor's May Revision to the Proposed 2025-26 Budget . Scheduled Item -- 1:00 PM

On Wednesday Governor Newsom released his May Revision to the Proposed 2025- 26 State Budget. It outlined solutions to solve a new $12 billion deficit. With federal and state budgets providing 57% of the County's General Fund resources, any reductions in federal or state funding can have a direct and significant impact on County services. County staff are still analyzing the details of the proposed cuts and will share more at Tuesday's Board of Supervisors meeting. The California Budget is available at https://ebudget.ca.gov/.

One bright spot in the May Revision was the allocation of millions of Prop 1 dollars for three residential Substance Use Disorder (SUD) Treatment Facilities:

• $30M to the City of Santa Cruz for the Coral Street SUD Campus. This would be built at the City's recently acquired Sea Berg site adjacent to Housing Matters in the Harvey West neighborhood.
• $3.9M to Encompass Community Services for their Residential Withdrawal Management Expansion Project in Watsonville.
• $44.5M to Janus of Santa Cruz for a Regional Recovery Health Hub in Watsonville. This would likely involve the conversion of an old hotel.

Proposition 1 was narrowly passed by voters in March of 2024 and redirects approximately 30% of the funds that Counties had been receiving for behavioral health services into capital projects instead. So, while it is exciting that this money is flowing into our community to build residential addiction treatment facilities, there is a big question mark about how their ongoing operations will be funded. Local jurisdictions like the County are supposed to provide 50% of the funding for operations, even while the State cuts essential funding streams.

Image: Moran Lake monarchs clustering in the Creekside area in November 2022

Several maintenance projects are planned for Moran Lake County Park this summer.

Over the coming months:

1. The parking lot will be repaved. This will include filling the large pot-holes that have formed and resurfacing the entire area. 
2. The bathrooms will be repaired and repainted. 
3. Eucalyptus trees will be reduced in height from approximately 145ft to 80ft along the lake (areas B and C in the map below). All eucalyptus trees will be removed from the lot at 40 Moran Way (A-1) and replaced with approximately 45 native trees, including Live Oaks and Monterey Cypress. 

Managing trees at the park is a constant balancing act between neighbors' safety and monarch butterfly habitat. The double cyclone storm in early 2024 brought down approximately 40 trees that struck multiple houses. This highlighted the need for proactive maintenance in the face of strengthening storms.

The County conducted a wind study, officially titled the "Moran Lake Monarch Butterfly Habitat and Tree Management Assessment." This looked at how wind speeds would change in the butterfly habitat area if trees were reduced in height or removed. The study determined that the primary butterfly habitat would remain sheltered if tree heights were reduced to approximately 80ft and trees on the Moran Way parcel were removed. 

Like many of you, I am loathe to remove greenery. However, the County cannot ignore its own arborist report that recommends removing the trees at 40 Moran Way due to root rot. After so much of this eucalyptus grove came down in 2024, the remaining trees are compromised. Ultimately, having a blank slate for the Moran Way lot will create an opportunity to improve drainage and put in native trees that will be healthier and safer.

A meeting on the Monarch Butterfly Habitat Management Plan is scheduled for Tuesday, June 24th 5:30pm at the Simpkins Swim Center.

What You Don't Know About Live Oak in Photos

Image: aerial view of the northbound bus on shoulder lane at the Soquel Ave exit

The new auxiliary lanes are open between the Soquel Ave/Dr exit and 41st! This is just Phase 1 of a three part project to upgrade Highway 1 (see map below). Phase 2, between 41st and State Park Dr is already under construction. It will be completed in 2026. Phase 3, from State Park Dr to Freedom Blvd, has applied for a $100 million state grant that would round out the needed funding. News about whether the California Transportation Commission awards funding to Phase 3 is expected in June.

The project includes auxiliary lanes that extend from one onramp to the next offramp (see the orange segments in the map below). It also include a bus on shoulder component that extends just between the offramp and onramp of each exit (the purple segments on the map below). These are the areas you see marked with red paint, like the photo above.

While the bus on shoulder areas are not long, they will save the bus a few minutes when navigating traffic. They also open the door for additional work with CALTRANS to utilize more of the shoulder space for buses. For example, allowing the bus to use the shoulder between Buena Vista Dr and Freedom Blvd may be considered in the future.

METRO drivers are training on how to safely use these bus-only areas now. Bus service will start utilizing them in 2026 after Phase 2 of the project is complete.

Updated Vacation Rental Law Approved by Planning Commission, Set to Return to Board Aug. 5th

Tue, May 20 - Board of Supervisors Meeting starting at 9:00 AM. The meeting will be held via Zoom and in person at the Board Chambers at 701 Ocean Street, Rm 525.

Tue, May 20 - Sheriff's Office Town Hall starting at 6:00 PM. Sheriff's Center, 5200 Soquel Ave, Santa Cruz CA 95062

Wed, May 21 - Rail Trail Segment 7 Phase II Ribbon Cutting starting at 8:30 AM. La Barranca Park, 700 Bay St, Santa Cruz, CA 95060

Tue, June 3 & Wed June 4 - Board of Supervisors Budget Hearings starting at 9:00 AM. The meeting will be held via Zoom and in person at the Board Chambers at 701 Ocean Street, Rm 525.

Wed, June 11 - Office Hours from 1:00 PM - 3:00 PM. At the Sheriff's Center, 5200 Soquel Ave, Santa Cruz CA 95062.