Dear Friends and Neighbors,
I've come to understand that everything is controversial, including (or maybe especially) housing and public art. The Board of Supervisors will hold a hearing on the 57-unit, Builder's Remedy project proposed for 841 Capitola Rd tomorrow. I've outlined the many issues we must consider below.
A female surfer statue has been proposed for East Cliff at the Dirt Farm. Please let me know what you think via the survey below.
Measure Q grant applications are now being accepted. You can apply for neighborhood fire preparedness projects through your neighborhood Firewise Group and the Firesafe Council or the Resource Conservation Group.
I'm co-hosting two exciting town halls coming up. The one this Wednesday night will help to shape the County's next Strategic Plan and will include many of the County's department heads. The one next week, Thursday the 19th, I'll be joined by Assemblymember Gail Pellerin to discuss issues spanning the State and County.
Hope to see you there!
Best, |
Manu Koenig 1st District Supervisor, Santa Cruz County
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Highlights from Tomorrow's Board of Supervisors Agenda
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Image: Governor Newsom promotes Prop 1 in March of 2024. The state initiative squeaked by with 50.18% of the vote. Counties are still working through all of the ramifications. (Image Credit: Hans Gutknecht/Media News Group/LA Daily News via Getty Images).
During tomorrow's meeting, the Board will receive a presentation on the transition from the Mental Health Services Act to the new Behavioral Health Services Act, following voter approval of Proposition 1 in 2024. This change replaces a funding structure that has supported county mental health services since 2004 and introduces new state requirements that significantly alter how behavioral health funds are distributed, spent, and reported. The transition will take effect beginning July 1, 2026, and will require major adjustments to county programs, budgets, and operations.
The Behavioral Health Services Act reduces the total amount of funding counties receive while placing stricter limits on how those dollars can be used. Under the new law, funds must be allocated into state-defined categories, including a required 30 percent set-aside for housing interventions for individuals with severe behavioral health needs who are experiencing chronic homelessness. This shift will redirect millions of dollars away from existing clinical and community-based services and will likely result in the reduction or elimination of some programs that residents rely on today. At the same time, the State will retain a larger share of revenues for statewide purposes, further reducing local flexibility.
The Board will also consider directing the Health Services Agency to return later this year with updates and any recommendations as the County develops its required three-year Behavioral Health Integrated Plan. This plan must be submitted to the State by June 30, 2026, after extensive community engagement and public review. While no final decisions on specific service changes are being made yet, this presentation is an important step in understanding how state-level changes will affect local behavioral health services and what trade-offs may be required to comply with the new law while continuing to meet community needs.
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Also during tomorrow's meeting, we will consider approving in concept ordinance amendments that strengthen the County’s ability to suspend or revoke cannabis business licenses when operations become a public nuisance. These amendments follow the Board’s March 2025 decision to allow on-site cannabis consumption at certain licensed retailers and farm retail locations, paired with direction to ensure clear enforcement tools are in place to protect public health and safety. The proposed changes apply to both retail dispensaries and cannabis farm retail licensees.
The ordinances focus on clarifying operational standards and enforcement authority, particularly related to intoxication, nuisance behavior, and compliance with County code. Key elements include prohibitions on serving intoxicated patrons, authority to suspend or revoke licenses when violations rise to the level of a public nuisance, and flexibility for the County to suspend a specific activity such as on-site consumption without revoking an entire business license. The amendments also reinforce employee safety protections and operational requirements designed to prevent issues before they escalate.
At this meeting, the Board will consider approving the ordinances in concept and scheduling them for final adoption later in February. No new cannabis businesses or consumption sites are being approved through this action. The goal is to ensure that existing cannabis programs operate responsibly, that communities have clear protections if problems arise, and that the County has effective tools to address violations while maintaining accountability for licensed operators.
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Image: Proposed apartment building at 841 Capitola Rd.
This item involves consideration of a Builder's Remedy proposal to construct 57 units, several non-habitable storage units and common amenity spaces within a five-story multifamily building, and site improvements including surface parking and fencing.
The Planning Commission approved the project 5-0 at its October 22, 2025 meeting. The approval was appealed by neighbors and the Board of Supervisors took jurisdiction, based on the fact that more information was needed regarding the ingress and egress.
County Counsel and Planning Staff recommend approval of the project. They assert that denial of the project could lead to multi-million dollar losses for the County.
The state laws surrounding this issue are complicated to say the least. If you'd like to get a sense of just how complicated, go ahead and read the thirteen-page staff report here.
In an attempt to generalize, the State Legislature has responded to our housing crises by passing dozens of laws that limit local jurisdictions' power to deny housing. These laws limit local control by design. They are extremely dense, but they double underline one overriding intent:
"It is the policy of the State that the Housing Accountability Act 'be interpreted and implemented in a manner to afford the fullest possible weight to the interest of, and the approval and provision of, housing.' (Gov. Code § 65589.5(a)(2)(L))."
Both the Applicant (Workbench) and the Appellant (neighbors) have stated publicly that they plan to sue the County if the Board of Supervisors doesn't vote the way they want. The cost of fighting these lawsuits could be in the millions of dollars – dollars that would have to come directly from the County's General Fund (i.e. your tax dollars) because the County's liability insurance does not cover these kinds of lawsuits.
If the County denies the project, it will have to pay for special counsel to defend the case (this alone could cost millions), fines under the Housing Accountability Act ranging from $10K - $50K per unit (with 57 units that's $570,000 - $2,850,000), the Applicant's attorney's fees (if the County loses), and potential damages claimed by the Applicant from delay. Public entities typically cannot recover attorney's fees, even when they win. That means that even in the best-case scenario, project denial will cost the County money.
If the County approves the project, the Applicant is responsible for paying the County's attorney fees, meaning the cost is essentially $0.
A third option that the Appellants (neighbors) have asked the County to consider is asking the Court for "Declaratory Relief" to make a ruling on when they believe the County's Housing Element was compliant on the date the project was submitted, and therefore whether this project can utilize the Builder's Remedy law. Was the County Housing Element compliant on March 15 when the State told County staff that they had completed review? Or on April 23, when the State sent the County a letter certifying the Housing Element? As of the time of this writing, the pros and cons of this approach were still being considered.
Whatever happens tomorrow, I think it's important to recognize that your view of this issue is influenced by your current housing status. If you own your home, you probably like the current zoning laws and want the County to defend them at all costs. If you pay more than half your take-home pay in rent, you probably recoil at the notion that the County might spend your tax dollars to stop the construction of new housing. Either way, we all want housing in Santa Cruz to be more affordable.
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Image: A rendering of the female surfer statue proposed on East Cliff
A local group has submitted an application to install a female surfer statue on East Cliff at the "Dirt Farm" that would serve as a counterpart to the well-known male surfer statue on West Cliff. The proposed statue would mirror the original in pose, scale, and artistic intent. It would even be created by the same sculptor and cast in bronze. She would wear a wetsuit as a nod to the legacy of Jack O’Neill and Santa Cruz’s deep surf history. The proposal also includes three curved benches and a small promenade area designed to create an inviting public gathering space.
The proposed statue and seating would take up just a small part of the area known as the "Dirt Farm" as shown in the image below. Other than the concrete benches and concrete footing for the statue, the area would be covered with decomposed granite, the same permeable material as the closest section of the East Cliff Parkway.
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Image: An aerial view of the proposed project at the Dirt Farm.
The current project team includes: artists, Brian W. Curtis and Thomas Marsh; lead designer, Alison Hobbs; board design, Santa Cruz shaper Bob Pearson (Pearson Arrow Surfboards); concrete work including footing and surrounding benches, Tom Ralston; organizer, Kari Lochhead.
The vision behind the project is to create a balance that brings our community together: West Side / East Side, Male / Female, no wetsuit / wetsuit. Like its counterpart, the statue is intended to become a familiar and enduring part of daily life along the bluffs, visible to residents and visitors alike.
The two most common questions I've heard since the notice sign was posted are:
1. Why spend money on this instead of the many other public needs? 2. Why at the Dirt Farm and not at the Hook or Pleasure Point Park?
To answer the first question, the statue would be built with private funds. It is not detracting from other important projects like repairs to the 38th Ave stairs or Moran Lake walkway.
To answer the second question, the Dirt Farm was selected because it allows ample viewing space from a distance. By placing the statue next to existing palm trees it will complement existing vertical elements in the landscape. The existing site conditions at the Dirt Farm are, well, dirt. Whereas the Hook and Pleasure Point Park are hardscaped areas that would require additional demolition costs and site closure. A geological study was performed to ensure that this site could support the proposed statue.
The next step for this proposal is a public hearing before the County Zoning Administrator, currently anticipated for March 2026. If approved, the project team is aiming for completion and installation in Spring 2027.
Please let me know what you think of the proposal by responding to the quick survey below.
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Should a Female Surfer Statue be placed at the East Cliff Dirt Farm?
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Measure Q Grants: Applications Open Now!
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Image: Measure Q application flyer
The Measure Q Grant Program is now accepting applications to support projects that improve water quality, reduce wildfire risk, protect wildlife habitat, and expand equitable access to parks and open space throughout Santa Cruz County. Measure Q was approved by voters to provide dedicated, local funding for conservation, climate resilience, and community benefit projects that protect the natural resources we all depend on.
The grant program includes two funding tiers to support a range of efforts. Community Catalyst Grants range from $5,000 to $50,000 and are designed for smaller projects such as planning, education, stewardship, and early implementation work. Community Impact Grants range from $50,000 to $500,000 and support larger projects with multiple benefits, including habitat restoration, wildfire fuel reduction, watershed improvements, and capital projects that increase public access to open space. Applications are open now and must be submitted by March 6.
Measure Q funds are overseen locally to ensure transparency, accountability, and alignment with voter intent. Grant recommendations are reviewed through a public process and prioritized based on clear criteria, including environmental benefit, community impact, and geographic equity across the county. This structure helps ensure Measure Q investments deliver real, on the ground results while reflecting local needs and values. I encourage eligible organizations to consider applying and residents to stay engaged as these projects move forward. More information, including the application link, can be found here. |
Image: The new Capitola Ave. overcrossing. Credit: Max Chun / Lookout Santa Cruz
I want to share some good news for our community. The Capitola Avenue Overcrossing across Highway 1 is now open, creating a long-needed, safe connection for people walking, biking, and rolling between Capitola Village and neighborhoods to the north. For decades, Highway 1 has been a real barrier in this area. This new crossing makes it easier to get to schools, parks, shops, transit, and the beach without having to drive or navigate unsafe routes, and it meaningfully improves safety for everyone.
As a member of the Regional Transportation Commission, which oversaw this project from planning through construction, I have seen firsthand how much coordination and persistence it took to get this done. We will celebrate the new overcrossing with a ribbon-cutting ceremony and celebration on February 26 from 4:00 to 5:00 p.m. at 911 Capitola Avenue. This overcrossing reflects years of work and strong community input calling for safer, more practical transportation options, and I am glad to see this long-awaited connection open and being used.
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Image: Generic campaign yard sign.
Ever dreamed of running for public office? Candidate filing for the June 2, 2026 Statewide Primary Election opens today, Monday, February 9, and runs through March 6. This is the official window for individuals interested in running for state, county, judicial, or certain city offices to file the required paperwork to appear on the ballot.
Several offices that affect Santa Cruz County residents will be on the ballot, including statewide constitutional offices, congressional and state assembly seats, countywide offices, and seats for the Third and Fourth Districts on the Board of Supervisors. During the filing period, candidates must submit nomination signatures, a declaration of candidacy, and required campaign and ethics disclosures. Candidates may also choose to file a statement of qualifications to be included in the voter information guide, subject to word limits and filing deadlines.
Elections are a cornerstone of local democracy, and participation starts well before Election Day. Whether you are considering running for office or simply want to stay informed, the County Clerk and Elections Department has resources available to help residents understand the process, deadlines, and requirements. More information, including candidate handbooks and daily filing updates, is available through the County Elections Office, and I encourage anyone interested to review these materials and stay engaged in the upcoming election.
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Image: Aerial view of Sargent Ranch property. Photo courtesy of POST.
I want to share a significant conservation update that highlights both the power of community advocacy and the importance of protecting open space for future generations. The Peninsula Open Space Trust recently announced the purchase of an additional 2,284 acres of the historic Sargent Ranch property in southern Santa Clara County, bringing its total protected acreage to more than 6,100 acres of this 6,500-acre landscape and making it one of the largest conservation achievements in the Bay Area in decades. This $23 million acquisition ensures that vital habitat, regional wildlife corridors, and culturally important lands will remain permanently conserved rather than developed for commercial uses such as mining or urban sprawl. Sargent Ranch, historically known as Rancho Juristac, lies at a crossroads of significant ecological and cultural value, connecting the Santa Cruz Mountains, Gabilan Range, and Diablo Range and supporting diverse wildlife including federally threatened species. The land also forms the core of the Juristac Tribal Cultural Landscape, an area sacred to the Amah Mutsun Tribal Band, where tribal communities gathered for ceremonial dances and healing rites for millennia. The preservation of this landscape protects not only biodiversity and watersheds but also deep cultural heritage and tribal stewardship. This milestone is the result of decades of collaboration between land trusts, tribal partners, supporters, donors, and grassroots advocates who united under campaigns such as Protect Juristac to keep this region intact and thriving. With the remaining approximately 480 acres under contract and expected to be conserved by late 2026, this effort exemplifies how sustained regional cooperation can safeguard critical natural resources and honor cultural legacy. You can learn more about this significant accomplishment here.
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Image: Strategic Plan Town Hall Informational Flyer
Our County Strategic Plan helps guide priorities, investments, and services for the years ahead, and it should reflect the values and needs of our community. That is why I am inviting First District residents to join me next week for a community town hall focused on the County of Santa Cruz 2026 to 2032 Strategic Plan. This is an opportunity to share your ideas, ask questions, and help shape how we address key issues like housing, public safety, climate resilience, infrastructure, and quality of life in our county.
The First District Strategic Plan Community Meeting will take place on February 11 from 5:30 to 7:00 PM at Shoreline Middle School, located at 855 17th Avenue in Santa Cruz. These conversations work best when we hear from a wide range of voices, and your input truly matters as we plan for the future of Santa Cruz County.
Space is limited, so please be sure to sign up in advance here. I look forward to connecting with and hearing from you!
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Image: Join me and Assemblymember Gail Pellerin for a Town Hall Meeting on Thursday, February 19 at 5:30 PM.
Tuesday, February 10 - Board of Supervisors Meeting starting at 9:00 AM. The meeting will be held via Zoom and in person at the South County Center Community Room located at 500 Westridge Drive, Watsonville, CA 95076
Wednesday, February 11 - First District Town Hall with County Executive Officer Nicole Coburn from 5:30-7:00 PM in the Shoreline Middle School Gym, 855 17th Avenue, Santa Cruz, CA 95062. Please join us to discuss pertinent issues in Santa Cruz County and help us develop the next County of Santa Cruz Strategic Plan.
Thursday, February 19 - Town Hall with Assemblymember Gail Pellerin from 5:30-7:00 PM at the DeLaveaga Elementary School Multipurpose Room, 1145 Morrissey Blvd, Santa Cruz, CA 95065 and via Zoom. You can also register for the Zoom version of the meeting ahead of time here. Join us to discuss the state budget, local issues, and more!
Tuesday, February 24 - Board of Supervisors Meeting starting at 9:00 AM. The meeting will be held via Zoom and in person at the County Government Center Community Room, located in the basement at 701 Ocean Street, Santa Cruz, CA 95060.
Wednesday, March 4 - Monthly Office Hours from 1:00-3:00 PM at our First District Office located in the Sheriff's Administration Building at 5200 Soquel Ave. Join us for drop-in office hours and discuss what's on your mind. First come, first served.
The County Board Chambers are currently under renovation through February 2026. Board meetings will be held at various locations throughout the County of Santa Cruz during this time. The Fall 2025/Winter 2026 meeting schedule with updated locations can be found here.
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