acary617, my daughter also got rejected by UCSC with a 3.7UC GPA (3.6+UW), 2110 SAT's and 1150 (boo) SAT 2's, very good EC's (not stellar), excellent essays, and ample volunteer hours. She is also OOS. While her stats are obviously not in league with yours, they are very competitive with those who have posted their acceptances.
Your rejected stats strike me as the stats of someone who wouldn't go to UCSC even if accepted because, as a private school student, your family can probably afford to send you anywhere you get in (admittedly this may be presuming too much, but they may have too) and/or with stats like yours you'll be admitted to better schools that will offer you merit aid. Why offer a spot to an OOS kid with options that could be preserved for an eligible in state applicant? This perspective didn't initially occur to me relative to my daughter, but perhaps it applies still.
I'm guessing DD should brace for more UC rejections, but maybe one of them will see her as a great fit. Who knows? In the meantime, she did get accepted to some great schools that did offer her great merit aid, so all is good.