I would say Carmel (or Monterey / Pacific Grove) if you want a nice community, good schools and a quiet beautiful area. It's about 40 minutes south of Santa Cruz, 2 hours south of San Fran, and about 3.5 hours south of Napa wine country.

I lived in the Carmel area for ~ 5 years and it is my favorite place I have ever lived, bar none. It is the place I always would love to return and live if money was not an object... I moved to San Fran for a job and then to Orange County for another job. I would return to Carmel in a minute if given an opportunity.