Buellton City Council
April 14, 2022

CITY OF BUELLTON

CITY COUNCIL AGENDA
Regular Meeting of April 14, 2022 – 6:00 p.m.

City Council Chambers, 140 West Highway 246
Buellton, California
Council meetings will be conducted in person and the public is welcome to attend.

Consistent with Assembly Bill 361, written comments will not be read aloud but can be sent to the City Council via email at [email protected] (please reference agenda item number/subject matter, and include your name and address). The public can observe Council meetings via City TV Live Stream at: http://www.cityofbuellton.com/government/cityTV.php Pursuant to AB 361, cities are allowed to hold City Council meetings via teleconferencing and members of the public can observe and address the meeting electronically by clicking here.

CALL TO ORDER
Mayor Holly Sierra

PLEDGE OF ALLEGIANCE

ROLL CALL
Council Members Ed Andrisek, Elysia Lewis, John Sanchez, Vice Mayor Dave King, and Mayor Holly Sierra

REORDERING OF AGENDA

PUBLIC COMMENTS
Speaker Slip to be completed and turned in to the City Clerk prior to commencement of meeting. Any person may address the Council on any subject pertaining to City business, including all items on the agenda not listed as a Public Hearing, including the Consent Agenda and Closed Session. Limited to three (3) minutes per speaker. By law, no action may be taken at this meeting on matters raised during Public Comments not included on this agenda. Public Speakers using a translator are allotted a total of six (6) minutes to speak, unless simultaneous translation equipment is used.

CONSENT CALENDAR (ACTION)
The following items are considered routine and non-controversial and are scheduled for consideration as a group. Any Council Member, the City Attorney, or the City Manager may request that an item be withdrawn from the Consent Agenda to allow for full discussion. Members of the Public may speak on Consent Agenda items during the Public Comment period.

1. Minutes of March 24, 2022 City Council Meeting

City Council Meeting Agenda Page 2 April 14, 2022

2. List of Claims to be Approved and Ratified for Payment to Date for Fiscal Year 2021/2022

3. Resolution No. 22-09 – “A Resolution of the City Council of the City of Buellton, California, Approving a 3.0% Cost of Living Adjustment (COLA) for all Regular Full-Time Employees, Effective, July 1, 2022”
 (Staff Contact: Finance Director Shannel Zamora)

4. Resolution No. 22-10 – “A Resolution of the City Council of the City of Buellton, California, Fixing the Employer’s Contribution Under the Public Employees’ Medical and Hospital Care Act at an Equal Amount for Employees and Annuitants and Revoking Resolution No. 06-28”
(Staff Contact: Finance Director Shannel Zamora)

5. Resolution No. 22-11 – “A Resolution of the City Council of the City of Buellton, California, Proclaiming the Continuing Need to Meet by Teleconference”  (Staff Contact: City Attorney Greg Murphy)

6. Resolution No. 22-12 – “A Resolution of the City Council of the City of Buellton, California, Adopting a Pension Funding Policy”
(Staff Contact: Finance Director Shannel Zamora)

PRESENTATIONS

7. Proclamation Recognizing National Donate Life Month

8. Proclamation Recognizing National Child Abuse Awareness & Prevention Month

9. Recognizing Lieutenant Jeff Greene for his Service to the City of Buellton

PUBLIC HEARINGS

COUNCIL MEMBER COMMENTS/ITEMS

WRITTEN COMMUNICATIONS
Written communications are included in the agenda packets. Any Council Member, the City Manager, or City Attorney may request that a written communication be read into the record.

COMMITTEE REPORTS
This Agenda listing is the opportunity for Council Members to give verbal Committee Reports on any meetings recently held for which the Council Members are the City representatives thereto.

City Council Meeting Agenda Page 3 April 14, 2022

BUSINESS ITEMS (POSSIBLE ACTION)

10. Ordinance No. 22-05 - “An Ordinance of the City Council of the City of Buellton, California, Approving a Development Agreement (21-DA-01) for the 518 Avenue of Flags – Mixed-Use Development Project Located at 518 Avenue of Flags and Authorizing Execution of the Agreement by the City Manager” (Second Reading)  (Staff Contact: City Manager Scott Wolfe)

11. Request to Authorize Funding for Temporary Planning Department Staffing  (Staff Contact: City Manager Scott Wolfe)
CITY MANAGER’S REPORT

ADJOURNMENT
The next regular meeting of the City Council will be held on Thursday, April 28, 2022 at 6:00 p.m.

City Manager Review: SW
Council Agenda Item No.: 1

CITY OF BUELLTON

CITY COUNCIL MEETING MINUTES
Regular Meeting of March 24, 2022
City Council Chambers, 140 West Highway 246
Buellton, California

CALL TO ORDER
Mayor Sierra called the meeting to order at 6:00 p.m.

PLEDGE OF ALLEGIANCE

ROLL CALL

Present: Council Members Ed Andrisek, Elysia Lewis, John Sanchez, Vice Mayor Dave King and Mayor Holly Sierra
Staff: City Manager Scott Wolfe, City Clerk Linda Reid, Public Works Director Rose Hess, Assistant City Attorney Alondra Espinosa, Planning Director Andrea Keefer, Finance Director Shannel Zamora (via Zoom), Contract City Planner Irma Tucker (via Zoom), and Lt.

Jeff Greene (via Zoom)

REORDERING OF AGENDA
None

PUBLIC COMMENTS
Dr. Randy Haggard, Superintendent of Buellton Union School District displayed a PowerPoint presentation and discussed the District’s plan to place a bond initiative on the November 2022 ballot to upgrade facilities at Buellton’s Schools.

CONSENT CALENDAR

1. Minutes of March 10, 2022 Regular City Council Meeting

2. List of Claims to be Approved and Ratified for Payment to Date for Fiscal Year 2021/2022

3. Monthly Treasurer’s Report – February 28, 2022

City Council Meeting Minutes Page 2 March 24, 2022

4. Resolution No. 22-08 – “A Resolution of the City Council of the City of Buellton, California, Authorizing the Filing of a Claim with the Santa Barbara County Association of Governments for Allocation of Transportation Development Act Funds for Fiscal Year 2022-23”

5. Filing of an Amended Claim with the Santa Barbara County Association of Governments (SBCAG) for Revised Allocation of Transportation Development Act Funds (TDA) for Fiscal Year 2021-22

6. Ordinance No. 22-03 – “An Ordinance of the City Council of the City of Buellton, California, Amending Section 2.04.060 of the Buellton Municipal Code Pertaining to City Council Compensation” (Second Reading)

7. Receive and File the 2021 Annual Report on the Status of the General Plan MOTION:

Motion by Vice Mayor King, seconded by Council Member Lewis, approving Consent Calendar Items 1 through 7 as listed.

VOTE:

Motion passed by a roll call vote of 5-0.

Council Member Andrisek – Yes
Council Member Lewis - Yes
Council Member Sanchez – Yes
Vice Mayor King – Yes
Mayor Sierra - Yes

PRESENTATIONS

None

PUBLIC HEARINGS

8. Resolution No. 22-07 - “A Resolution of the City Council of the City of Buellton, California, Approving a Final Development Plan (21-FDP-05) for the 518 Avenue of Flags – Mixed Use Development Project Located at 518 Avenue of Flags, Assessor’s Parcel Number 137-170-006”
Ordinance No. 22-05 - “An Ordinance of the City Council of the City of Buellton, California, Approving a Development Agreement (21-DA-01) for the 518 Avenue of Flags – Mixed-Use Development Project Located at 518 Avenue of Flags and Authorizing Execution of the Agreement by the City Manager” (Introduction and First Reading)
RECOMMENDATION:

That the City Council consider approval of Resolution No. 22-07 and the introduction and first reading of Ordinance No. 22-05.

City Council Meeting Minutes Page 3 March 24, 2022
STAFF REPORT:

Contract City Planner Tucker presented the staff report.

SPEAKERS/DISCUSSION:

Brandon Mann, David Gibbs, and Waleed Elbayar, project representatives, discussed the proposed project and answered questions from the Council.

The City Council discussed the following issues:
 Ensuring solar panels are placed in direct sunlight
 Enforcing residential parking in tandem parking spaces  Residents utilizing commercial parking in the evening  Adding viable housing options in Buellton
 Condition parking with appropriate signage and enforcement Mayor Sierra opened the public hearing at 7:18 p.m. There being no public comment, Mayor Sierra closed the Public Hearing at 7:19 p.m.

DOCUMENTS:

Staff report with attachments as listed in the staff report.

MOTION:

Motion by Mayor Sierra, seconded by Council Member Lewis approving Resolution No. 22-07 – “A Resolution of the City Council of the City of Buellton, California, Approving a Final Development Plan (21-FDP-05) for the 518 Avenue of Flags – Mixed Use Development Project Located at 518 Avenue of Flags, Assessor’s Parcel Number 137-170- 006” with an additional condition that includes specific parking signage around the project site.

VOTE:

Motion passed by a roll call vote of 4-1, with Vice Mayor King voting no.

Council Member Andrisek – Yes
Council Member Lewis – Yes
Council Member Sanchez – Yes
Vice Mayor King – No
Mayor Sierra – Yes
MOTION:

Motion by Mayor Sierra, seconded by Council Member Lewis introducing the first reading of Ordinance No. 22-05 - “An Ordinance of the City Council of the City of Buellton, California, Approving a Development Agreement (21-DA-01) for the 518 Avenue of Flags – Mixed-Use Development Project Located at 518 Avenue of Flags and Authorizing Execution of the Agreement by the City Manager” by title only and waive further reading.

City Council Meeting Minutes Page 4 March 24, 2022
VOTE:

Motion passed by a roll call vote of 4-1, with Vice Mayor King voting no.

Council Member Andrisek – Yes
Council Member Lewis – Yes
Council Member Sanchez – Yes
Vice Mayor King – No
Mayor Sierra – Yes

COUNCIL MEMBER COMMENTS/ITEMS
Lt. Greene announced that he is being transferred to Santa Barbara County Sheriff’s Air Support Unit in April. Lt. Greene stated he will introduce his successor at the next Council meeting.

Council Members Sanchez and Lewis and Mayor Sierra thanked the Buellton Chamber of Commerce and Visitors Bureau for hosting the Wine and Chili Festival and said it was a great event.

Council Member Andrisek requested the Council consider a public forum to discuss parking regulations in Buellton.

Council Member Andrisek thanked staff and the Council for sending the beautiful flower arrangement to his wife following her surgical procedure.

WRITTEN COMMUNICATIONS
None

COMMITTEE REPORTS
Council Members Sanchez and Andrisek announced that they attended the Central Coast Water Authority (CCWA) board meeting and provided an oral report regarding the meeting.

Mayor Sierra announced that she attended the Library Advisory Committee board meeting and provided an oral report regarding the meeting.

Mayor Sierra announced that she attended board meetings for Santa Barbara County Association of Governments (SBCAG) and Air Pollution Control District (APCD) and provided oral reports regarding the meetings.

City Council Meeting Minutes Page 5 March 24, 2022

BUSINESS ITEMS

9. Consideration of Architectural Contract for Willemsen Property RECOMMENDATION:

That the City Council direct the City Manager to execute the architectural services contract with Marchi and Associates in an amount not to exceed $65,950, to draft remodel plans for the Willemsen property.

STAFF REPORT:

Public Works Director Hess presented the staff report.

SPEAKERS/DISCUSSION:

The architectural preparation is scheduled to take 21 weeks to complete.

DOCUMENTS:

Staff report with attachments as listed in the staff report.

MOTION:

Motion by Vice Mayor King, seconded by Council Member Sanchez directing the City Manager to execute the architectural services contract with Marchi and Associates in an amount not to exceed $65,950 to draft remodel plans for the Willemsen property and that staff create the appropriate budget amendment to fund the contract.

VOTE:

Motion passed by a roll call vote of 5-0.

Council Member Andrisek – Yes
Council Member Lewis – Yes
Council Member Sanchez - Yes
Vice Mayor King – Yes
Mayor Sierra – Yes

10. Discussion of Pension Funding Policy
RECOMMENDATION:

That the City Council discuss and provide suggested changes to the Pension Funding Policy and direct staff to bring back a resolution adopting the policy.

STAFF REPORT:

Finance Director Zamora presented the staff report.

SPEAKERS/DISCUSSION:

The City Council discussed how the Council will be involved with any discussion to pay down the pension liability debt.

City Council Meeting Minutes Page 6 March 24, 2022
DOCUMENTS:

Staff report with attachments as listed in the staff report.

MOTION:

Motion by Council Member Lewis, seconded by Vice Mayor King directing staff to bring back a resolution adopting the Pension Funding Policy.

VOTE:

Motion passed by a roll call vote of 5-0.

Council Member Andrisek – Yes
Council Member Lewis – Yes
Council Member Sanchez - Yes
Vice Mayor King – Yes
Mayor Sierra – Yes

11. Determination of Employee Cost of Living Adjustment (COLA) for Fiscal Year 2022- 23 and Proposed Increase in City’s Medical Premium Contribution City Manager Wolfe announced that he spoke to the City Attorney regarding Council Member Sanchez’s potential conflict pertaining to the discussion of the City’s Medical Premium Contribution because he is a former City employee and receives the retiree medical benefit. Mr. Wolfe said there is no conflict because the amount Council Member Sanchez receives to pay his medical premium is capped well below the current contribution limit and such amount will not be affected by any action taken by the City Council, allowing Council Member Sanchez to participate in the discussion of Item 11.

RECOMMENDATION:

That the City Council consider approval of a COLA for all full-time regular City employees for Fiscal Year 2022-23 and proposed increase in the City’s medical premium contribution.

STAFF REPORT:

Finance Director Zamora presented the staff report.

SPEAKERS/DISCUSSION:

The City Council discussed the proposed COLA for Fiscal Year 2022-23 and the increased medical premium contribution.

DOCUMENTS:

Staff report with attachments as listed in the staff report.

City Council Meeting Minutes Page 7 March 24, 2022
MOTION:

Motion by Council Member Lewis, seconded by Vice Mayor King approving a three percent (3%) COLA for all regular full-time employees for Fiscal Year 2022-23, effective July 1, 2022 and increasing the medical premium by $400 per month for all regular fulltime employees, effective January 1, 2023. Council requested that staff return with separate resolutions solidifying the COLA approval and increased medical premium contribution.

VOTE:

Motion passed by a roll call vote of 5-0.

Council Member Andrisek – Yes
Council Member Lewis – Yes
Council Member Sanchez – Yes
Vice Mayor King – Yes
Mayor Sierra – Yes
CITY MANAGER’S REPORT
City Manager Wolfe provided an informational report to the City Council.

ADJOURNMENT
Mayor Sierra adjourned the regular meeting at 8:34 p.m. The next regular meeting of the City Council will be held on Thursday, April 14, 2022 at 6:00 p.m. _________________________________
Holly Sierra
Mayor
ATTEST:
_________________________________
Linda Reid
City Clerk

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 2

To: The Honorable Mayor and City Council
From: Shannel Zamora, Finance Director
Meeting Date: April 14, 2022
Subject: List of Claims to be Approved and Ratified for Payment to Date for Fiscal Year 2021/2022
______________________________________________________________________________

BACKGROUND
Staff is required to submit a check register to the City Council for approval every council meeting for the most recently completed check register (Attachment 1).

The check register for the period 03/12/2022 through 04/01/2022 has been prepared in accordance to Government Code section 37202 and Buellton Municipal Code section

3.08.070. The check register lists all vendor payments for the specified period above, along with claimant’s name, a brief description of the goods or service purchased, amount of demand, check number, check date and the account number(s) associated with each payment.

The total amount of checks, 03/12/2022 through 04/01/2022, and electronic fund transfers issued for the period of 03/12/2022 through 04/01/2022 was $1,899,746.43.

FISCAL IMPACT
Payments made to the various vendors were consistent with the approved City’s Budget for FY 2021/22. Cash is available for the payment disbursements of the above liabilities.

RECOMMENDATION
That the City Council review and accept the check register for the period 03/12/2022 through 04/01/2022.

ATTACHMENTS
Attachment 1 – Claims

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 3
To: The Honorable Mayor and City Council
From: Shannel Zamora, Finance Director
Meeting Date: April 14, 2022
Subject: Resolution No. 22-09 – “A Resolution of the City Council of the City of Buellton, California, Approving a 3.0% Cost of Living Adjustment (COLA) for all Regular Full-Time Employees,
Effective, July 1, 2022”
______________________________________________________________________________

BACKGROUND
Buellton Municipal Code Section 2.08.060 authorizes the City Manager to prepare and submit a proposed annual salary plan to the City Council for its approval. On March 24, 2022, the City Council authorized a 3.0 percent Cost of Living Adjustment (COLA) for all regular full-time employees, effective, July 1, 2022 and requested that staff bring back a resolution formally approving the COLA for Fiscal Year 2022-23. The new salary schedule effective July 1, 2022 with a 3.0 percent COLA for full-time employees is included as Attachment 1.

FISCAL IMPACT
The fiscal impact of the COLA will be reflected in the Fiscal Year 2022-23 Budget and the overall increase to salaries including benefits would be $59,215. The General Fund will experience a $39,783 increase. The Water Fund will experience an increase of $8,210, and Wastewater Fund will experience an $11,222 increase.

RECOMMENDATION
That the City Council consider adoption of Resolution No. 22-09 – “A Resolution of the City Council of the City of Buellton, California, Approving a 3.0% Cost of Living Adjustment (COLA) for all Regular Full-Time Employees, Effective, July 1, 2022”

ATTACHMENTS
Resolution No. 22-09
Attachment 1 – FY 2022-23 Full-time Employee Salary Schedule

RESOLUTION NO. 22-09

A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF BUELLTON, CALIFORNIA, APPROVING A 3.0% COST

OF LIVING ADJUSTMENT (COLA) FOR ALL REGULAR
FULL-TIME EMPLOYEES, EFFECTIVE JULY 1, 2022
WHEREAS, Section 2.08.060 of the Buellton Municipal Code authorizes the City Manager to prepare and submit a proposed annual salary plan to the City Council for its approval; and
WHEREAS, the City Council reviewed the request for COLA submitted on March 24, 2022 and approved a 3.0% COLA at that time; and
WHEREAS, the City Council values the work performed by its regular full-time employees; and
WHEREAS, based on financial information provided by the Finance Director, the City Council has determined that it is financially prudent to provide for an increase in salaries of regular full-time employees.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BUELLTON DOES RESOLVE, DETERMINE, FIND, AND ORDER AS FOLLOWS:

SECTION 1. The City Council hereby finds that the above recitations are true and correct and, accordingly, are incorporated as a material part of this Resolution.

SECTION 2. The City Council hereby directs adjustments to regular full-time employees’ salaries to reflect a 3.0% cost of living adjustment, effective July 1, 2022.

SECTION 3. The fiscal impact of the salary adjustment will be reflected in the Fiscal Year 2022-23 City Budget.

SECTION 4. The City Clerk shall certify to the adoption of this Resolution.

PASSED, APPROVED and ADOPTED this 14th day of April, 2022. _________________________________
Holly Sierra
Mayor
ATTEST:
__________________________________
Linda Reid
City Clerk

Effective July 1, 2022
New Position in 2021-22
City of Buellton
Monthly Salary Ranges with 3.0% COLA
Position Step 1 Step 2 Step 3 Step 4 Step 5
Maintenance & Utility FieldWorker I 4,460 4,683 4,917 5,163 5,421 Facilities Foreman/Utility Fieldworker 4,460 4,683 4,917 5,163 5,421 Staff Assistant/Planning Technician 4,460 4,683 4,917 5,163 5,421 Youth Recreation Coordinator 4,460 4,683 4,917 5,163 5,421 Recreation Center Coordinator 4,577 4,805 5,046 5,298 5,563 Accounting Technician (Tier II) 4,588 4,818 5,059 5,311 5,577 Journeyman Maintenance & Utility FieldWorker 4,672 4,906 5,151 5,408 5,679 Assistant Planner 5,600 5,880 6,174 6,483 6,807
Revenue Specialist 5,741 6,028 6,329 6,645 6,978
Accounting Specialist 5,741 6,028 6,329 6,645 6,978
Facilities Supervisor/Utility Fieldworker 5,740 6,027 6,329 6,645 6,978 Lead Maintenance & Utility FieldWorker 6,039 6,342 6,658 6,991 7,341 Recreation Supervisor 6,039 6,341 6,658 6,990 7,341
Chief Plant Operator - WWTP 6,586 6,933 7,297 7,682 8,086 City Clerk/HR Director 8,857 9,299 9,764 10,253 10,765
Finance Director 8,857 9,299 9,764 10,253 10,765
Public Works Director 8,857 9,299 9,764 10,253 10,765
Planning Director 8,857 9,299 9,764 10,253 10,765
\\fileserver\Users\Finance Director\Accounting\Payroll\Salary Ranges\2022-23 COLA\2021-22 - approved 4-14-2022 3% COLA 4/4/2022

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 4
To: The Honorable Mayor and City Council
From: Shannel Zamora, Finance Director
Meeting Date: April 14, 2022
Subject: Resolution No. 22-10 – “A Resolution of the City Council of the City of Buellton, California, Fixing the Employer’s Contribution Under the Public Employees’ Medical and Hospital Care Act at an Equal Amount for Employees and Annuitants and Revoking
Resolution No. 06-28”
______________________________________________________________________________

BACKGROUND
Subsection A of Section 14.1 Health Benefits of Rule XIV, Employee Benefits, of the City’s Personnel Rules, provides in part that “Accident, health, hospital, dental, and vision insurance to cover non-occupational injuries and sickness for probationary and Regular Full-Time Employees shall be provided by the City. The scope of coverage and the payment of premiums are subject to periodic review and revision by the City Council and shall be set by resolution of the City Council.”
Government Code Section 22892(a) provides that a local contracting agency, under the Public Employees’ Medical and Hospital Care Act, shall fix from time to time by resolution of the governing body of the agency the amount of the employer’s contribution.

Government Code section 22892(b) provides that the employer contribution shall be an equal amount for both employees and annuitants, but may not be less than the amount prescribed by Section 22892(b) of the Act; and
The last time City Council fixed the employer’s contribution was in 2006 through Resolution No. 06-28. The resolution fixed the employers contribution for employees and annuitants at a maximum of $800.00. Due to the increase cost of medical insurance in the last sixteen years, consideration of an increase in the employer’s medical contribution was warranted.

On March 24, 2022, staff recommended that City Council consider an increase to the employer paid health contribution for all regular full-time employees and annuitants to be capped at $1,200 per month, effective January 1, 2023. City Council authorized the increase as recommended and requested that staff bring back a resolution formally approving the medical contribution increase effective January 1, 2023.

Resolution No. 22-10 Page 2 April 14, 2022

FISCAL IMPACT
The fiscal impact to the City for the increase in the employer’s medical contribution to be capped at $1,200.00 per month will be $400.00 per month effective as of January 1, 2023.

The increased cost for coverage for the period of January 1, 2023 to December 31, 2023 will be $96,000 for full-time employees and $14,400 for annuitants. Funds will be appropriated for Fiscal Year 2022-23 in the various funds and department budgets for said medical coverage and will reflect an increase of $48,000 for full-time employees and $7,200 for annuitants covering the periods of January 1, 2023 to June 30, 2023.

RECOMMENDATION
That the City Council consider adoption of Resolution No. 22-10 - “A Resolution of the City Council of the City of Buellton, California, Fixing the Employer’s Contribution Under the Public Employees’ Medical and Hospital Care Act at an Equal Amount for Employees and Annuitants and Revoking Resolution No. 06-28”

ATTACHMENTS
Resolution No. 22-10

RESOLUTION NO. 22-10

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF BUELLTON, CALIFORNIA, FIXING THE
EMPLOYER’S CONTRIBUTION UNDER THE PUBLIC
EMPLOYEES’ MEDICAL AND HOSPITAL CARE ACT AT

AN EQUAL AMOUNT FOR EMPLOYEES AND
ANNUITANTS AND REVOKING RESOLUTION NO. 06-28
I. THE CITY COUNCIL OF THE CITY OF BUELLTON DOES HEREBY FIND AND DETERMINE AS FOLLOWS:

A. City of Buellton is a contracting agency under Government Code Section 22920 and subject to the Public Employees’ Medical and Hospital Care Act (the “Act”); and
B. Government Code Section 22892(a) provides that a local contracting agency subject to the Act shall fix the amount of the employer’s contribution by resolution; and
C. Government Code section 22892(b) provides that the employer contribution shall be an equal amount for both employees and annuitants, but may not be less than the amount prescribed by Section 22892(b) of the Act; and
D. That on August 25, 2005, the City Council adopted Resolution No. 05-19 fixing the employer’s contribution under the Public Employees’ Medical and Hospital Care Act at Seven Hundred Fifteen Dollars and Thirty-Four Cents ($715.34); and E. That on August 14, 2006, the City Council revoked Resolution No. 05-19 and adopted Resolution No. 06-28 to fix the employer’s contribution under the Public Employees’ Medical and Hospital Care Act at a maximum of Eight Hundred Dollars ($800.00) per month to be effective as of January 1, 2007; and F. Due to changing circumstances, it is appropriate to revoke Resolution No. 06-28 and adopt Resolution No. 22-10 to fix the employer’s contribution under the Public Employees’ Medical and Hospital Care Act at a maximum of One Thousand Two Hundred Dollars ($1,200.00) per month to be effective as of January 1, 2023.

II. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BUELLTON DOES HEREBY RESOLVE AS FOLLOWS:

A. That Resolution No. 06-28 is hereby revoked in its entirety.

B. That the employer contribution for each employee or annuitant shall be the amount necessary to pay the full cost of his/her enrollment, including the enrollment of

Resolution No. 22-10 Page 2 April 14, 2022
family members, in a health plan up to a maximum of the Two-Party Premium (Basic/Medicare/Combination) not to exceed One Thousand Two Hundred Dollars ($1,200.00) per month, plus administrative fees and Contingency Reserve Fund assessments.

C. City of Buellton has fully complied with and all applicable provisions of Government Code Section 7507 in electing the benefits set forth above.

D. That the participation of the employees and annuitants of City of Buellton shall be subject to determination of its status as an “agency or instrumentality of the state or political subdivision of a State” that is eligible to participate in a governmental plan within the meaning of Section 414(d) of the Internal Revenue Code, upon publication of final Regulations pursuant to such Section. If it is determined that City of Buellton would not qualify as an agency or instrumentally of the state or political subdivision of a State under such final Regulations, CalPERS may be obligated, and reserves the right to terminate the health coverage of all participants of the employer.

E. That the executive body appoint and direct, and it does hereby appoint and direct, the City Clerk or designee to file with the Board a verified copy this resolution, and to perform on behalf of the City of Buellton all functions required of it under the Act.

F. That coverage under the Act be effective on January 1, 2023.

PASSED, APPROVED and ADOPTED this 14th day of April, 2022. ___________________________________
Holly Sierra
Mayor
ATTEST:
____________________________________
Linda Reid
City Clerk

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 5

To: The Honorable Mayor and City Council
From: Gregory Murphy, City Attorney
Meeting Date: April 14, 2022
Subject: Resolution No. 22-11 – “A Resolution of the City Council of the City of Buellton, California, Proclaiming the Continuing Need to Meet by Teleconference”
______________________________________________________________________________

BACKGROUND
On September 16, 2021, Governor Newsom signed Assembly Bill 361 (AB 361), which modified the Brown Act to allow a legislative body to continue to meet under teleconferencing rules during a proclaimed state of emergency and where local officials recommend measures to promote social distancing.

On September 28, 2021, the Santa Barbara County Public Health Department recommended that social distancing continue during public meetings via use of teleconferencing in order to help prevent the spread of COVID-19. This message was set forth in the Santa Barbara County Public Health Department’s press release entitled, “Health Officials AB 361 Social Distance Recommendation”, which is attached to Resolution No. 22-11 as (Exhibit A).

Public Health Officials have recommended measures to promote social distancing, including holding virtual meetings for legislative bodies within the County of Santa Barbara. Therefore, in consideration of the State of Emergency declared by Governor Newsom and findings that the State of Emergency still warrants the option of teleconferencing for public meetings, it is in the interest of public health and safety, and in response to the local recommendation for measures to promote social distancing, it is necessary to invoke provisions of AB 361 related to teleconferencing.

A Special City Council Meeting was held on January 13, 2022, allowing teleconferenced meetings to continue, Resolution No. 22-02 was adopted on February 10, 2022, and Resolution No. 22-06 was adopted on March 10, 2022, documenting the continued need for meetings to occur via teleconference if necessary, to allow for social distancing to continue for both Council and Commission meetings, especially given the compact area that houses the Council Chambers. Resolution No. 22-11 would allow teleconferenced meetings to continue for another 30 days, if needed.

Resolution No. 22-11 Page 2 April 14, 2022

RECOMMENDATION
That the City Council consider adoption of Resolution No. 22-11 - “A Resolution of the City Council of the City of Buellton, California, Proclaiming the Continuing Need to Meet by Teleconference”

ATTACHMENTS
Resolution No. 22-11 (Exhibit A)

RESOLUTION NO. 22-11

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF BUELLTON, CALIFORNIA, PROCLAIMING THE

CONTINUING NEED TO MEET BY TELECONFERENCE
WHEREAS, the City of Buellton is committed to preserving and nurturing public access and participation in meetings of the City Council; and
WHEREAS, all meetings of the City of Buellton’s legislative bodies are open and public, as required by the Ralph M. Brown Act (Cal. Gov. Code 54950 – 54963), so that any member of the public may attend, participate, and watch the City’s legislative bodies conduct their business; and
WHEREAS, the Brown Act, Government Code section 54953(e), makes provisions for remote teleconferencing participation in meetings by members of a legislative body, without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and
WHEREAS, a required condition is that a state of emergency is proclaimed and state or local officials have imposed or recommended measures to promote social distancing; and WHEREAS, on March 4, 2020, Governor Newsom declared a State of Emergency as a result of the COVID-19 pandemic; and
WHEREAS, on September 28, 2021 the Santa Barbara County Public Health Department put into effect measures requiring social distancing and other public health measures and restrictions to help combat the COVID-19 pandemic as referenced in Exhibit A; and WHEREAS, the State of Emergency and social distancing and other public health measures remain in effect; and
WHEREAS, COVID-19 continues to threaten the health and lives of Buellton City residents notwithstanding the City’s vaccination rates and the Omicron variant is highly transmissible in indoor settings; and
WHEREAS, the City of Buellton has a relatively compact City Council chambers that does not allow for social distancing and a return to solely in-person meetings may discourage public participation and expose those present to a risk of COVID-19 transmission.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Buellton that:

Section 1. State of Emergency and Social Distancing. Due to COVID-19, the State of California continues to be in a state of emergency and the County of Santa Barbara continues to impose and recommend measures requiring social distancing and other, which measures make holding solely in-person City Council and other legislative body meetings difficult due to the compactness of the City Council chambers, the inability to have sufficient public presence at the meetings due to social distancing, and the potential of transmission of COVID-19 at meetings.

Resolution No. 22-11 Page 2 April 14, 2022
Section 2. Compliance with Government Code Section 54953. The City Council and other legislative bodies will continue to offer teleconference meetings and provide access to the public in accordance with Government Code section 54953(e).

Section 3. Effective Date of Resolution. This Resolution shall take effect immediately upon its adoption and shall be effective until the earlier of (i) 30 days from the date of adoption of this Resolution, or (ii) such time the City Council adopts a subsequent resolution in accordance with Government Code section 54953(e)(3) to extend the time during which the legislative bodies of Buellton may continue to teleconference without compliance with paragraph (3) of subdivision (b) of section 54953.

PASSED, APPROVED and ADOPTED this 14
th day of April, 2022.

__________________________________
Holly Sierra
Mayor
ATTEST:
__________________________________
Linda Reid
City Clerk

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 6

To: The Honorable Mayor and City Council
From: Shannel Zamora, Finance Director
Meeting Date: April 14, 2022
Subject: Resolution No. 22-12 - “A Resolution of the City Council of the City of Buellton, California, Adopting a Pension Funding Policy” ______________________________________________________________________________

BACKGROUND
On March 24, 2022, City staff recommended City Council discuss the proposed Pension Funding Policy. City Council approved the policy as presented and authorized staff to bring back a resolution to adopt the proposed Pension Funding Policy.

Employees of the City of Buellton are members of the California Public Employees Retirement System (CalPERS), which is a defined benefit pension plan. CalPERS is funded through three sources: returns on the system’s investment assets or portfolio, employee contributions by CalPERS members, and employer paid-contributions.

Over the past few years, CalPERS Board of Administration has approved several changes to its assumptions, including modifying amortization method to 20 years and lowering the discount rate assumption from 7.0% to 6.8%. The changes in actuarial assumptions impact future funding statuses, employer contributions and unfunded accrued liability (UAL) among several factors. Each year, CalPERS issues annual actuarial valuation reports. The City’s most current valuation report was issued on July 2021 with a measurement date of June 30, 2020 for FY 2022-23 contributions. The report shows funded status of the Classic Plan is 73.8% and the PEPRA Plan is 93.7%.

Currently, the City has been paying an additional discretionary payment (ADP) towards the annual required unfunded accrued liability (UAL) and pays the full UAL in July of the beginning of the new fiscal year to save interest in the long-term. The proposed Pension Funding Policy formalizes what the City has been doing and deploys a variety of strategies to achieve the following objectives:
 Reduce projected pension contributions to maintain the same levels of service.  Increase the funding ratio for both the City’s Classic and PEPRA CalPERS Plans.

Resolution No. 22-12 Page 2 April 14, 2022

FISCAL IMPACT
There is no immediate impact of adopting the policy. If adopted, this policy will guide staff and City Council to allocate appropriate resources to mitigate future pension costs. Onetime payments to CalPERS to pay off a portion of the City’s UAL, would be included in the City’s annual budget for City Council consideration.

RECOMMENDATION
That the City Council consider adoption of Resolution No. 22-12 – “A Resolution of the City Council of the City of Buellton, California, Adopting a Pension Funding Policy”

ATTACHMENTS
Resolution No. 22-12 (Exhibit A)

RESOLUTION NO. 22-12

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF BUELLTON, CALIFORNIA, ADOPTING A

PENSION FUNDING POLICY
WHEREAS, on March 24, 2022, City staff proposed establishing a Pension Funding Policy and recommended to City Council to adopt a Resolution adopting the policy; and WHEREAS, to more proactively address rising pension costs, the policy shall provide context and guidance during the budget process, provide a disciplined approach to financial management of these liabilities, reassure rating agencies assurance the City is committed to fiscal sustainability and provide transparency to employees and the public with regards how the plan the plans are being funded; and
WHEREAS, effective financial policies are desirable to strengthen the City’s ability to navigate future economic challenges and provide the City with the means to respond to opportunities to attaining City Council goals and priorities; and WHEREAS, the goals of the Pension Funding Policy would be to a) reduce projected pension contributions to maintain same levels of service, and b) increase the funding ratios for both the City’s Classic Miscellaneous and PEPRA CalPERS Plans.

NOW, THEREFORE, THE CITY COUNCIL DOES RESOLVE AS FOLLOWS:

SECTION 1. The City Council of the City of Buellton hereby adopts the Pension Funding Policy, attached hereinto as Exhibit A and incorporated herein by reference and authorizes City staff to implement the Pension Funding Policy.

SECTION 2. The City Clerk shall certify to the adoption of this Resolution.

PASSED, APPROVED and ADOPTED this 14th day of April, 2022. _________________________________
Holly Sierra
Mayor
ATTEST:
_________________________________
Linda Reid
City Clerk

Exhibit A

TITLE: Pension Funding Policy PAGES: 3
EFFECTIVE DATE: 4/14/2022 REVISION DATE(S):

APPROVED: 04/14/2022
I. Purpose:

The purpose of this to ensure an adequate and appropriate approach to the monitoring and payment of the Pension (CalPERS) unfunded liabilities of the City of Buellton. These procedures and guidelines are designed to provide an approach to the payment of pension liabilities to maintain the City of Buellton’s CalPERS retirement plan for current and former employees. The policy shall provide context and guidance during the budget development process, provide a disciplined approach to financial management of these liabilities, reassure rating agencies assurance the City is committed to fiscal sustainability and provides transparency to employees and the public with regards to how the plans are being funded. This policy deploys a variety of strategies with one-time funds to achieve the following objectives:

A. Reduce projected pension contributions to maintain the same levels of service.

B. Increase the funding ratio for both the City’s Classic and PEPRA CalPERS Plans.

II. Background:

The City contributes to CalPERS. A pension is a retirement account that an employer maintains to give employees a fixed payout when they retire. PERS is a defined benefit plan. The payout usually depends on how long the employee works for the employer and the employee’s salary.

The City of Buellton offers the Classic and PEPRA plans. The Classic Miscellaneous Plan are offered to employees hired before 1/1/2013 or have transferred over from another agency and were contributing to the Classic Plan. Effective 1/1/2013, the State adopted, and the City implemented the California Public Employees’ Pension Reform Act (PEPRA). PEPRA changed the way CalPERS retirement benefits are applied, and places compensation limits on members. The maximum employee contribution rates are set by law.

Investment income, employee contributions and employer contributions fund the total pension cost, including benefits and expenses. Employer contributions are set by actuaries using an investment rate assumption (also known as the “discount rate”) and other assumptions related to salary, payroll, cost of living, mortality rate, disabilities, terminations and retirements. Based on these assumptions,

FINANCIAL POLICY
POLICY NUMBER: FIN 22-01

CITY OF BUELLTON

Exhibit A

actuaries develop an annual contribution, that if all assumptions were met, the annual contributions would be sufficient to fund the promised benefit over the working life of the employee. The annual contributions, assuming all future actuarial assumptions are met are referred to as the “Normal Cost” of the promised benefit. The “Normal Cost” loosely represents the cost of attributable to services earned during the current period and are expressed as a percentage of pensionable payroll.

While actuarial “assumptions” are the expected results, “experience” represents actual results. If assumptions and experience stray from actual results, unfunded accrued liabilities (UAL) accumulate and amortized (paid off) over a predetermined number of years. If actual experience deviates from assumptions for an extended period of time two things may happen, layers of experience gains and losses can accumulate to unacceptable levels and or the plan actuary may adjust the assumptions to better track actual experience. Both changes in actuarial assumptions and experience gains and losses can add or subtract from the accumulated UAL balance. The method and term of the UAL amortization is dictated by the CalPERS board but is subject to restructuring by the employer.

III. Policy:

It is the policy of the City of Buellton that the payment of pension is a priority and that a proactive approach to funding these liabilities is a prudent financial practice.

Policy related to the payment of CalPERS Pension liabilities are as follows:

A. The City of Buellton will include in the budget and remit to CalPERS, annually, the entire amount of the UAL as shown on the most recently dated Annual Valuation Report. The amount on the report dated typically 2 years prior to the beginning of the fiscal year. For example, Valuated Report with a July 30, 2020 measurement date is for Fiscal Year 2022-23 contributions.

B. The City of Buellton shall remit to CalPERS the required Unfunded Accrued Liability (UAL) amounts per the Annual Valuation Report issued by CalPERS each year and the employer’s normal cost each pay period as required by CalPERS.

C. The City of Buellton will pay the “Employer payment of unfunded liability” each year in one lump sum payment in July of each year in order to maximize the savings in interest charged by CalPERS, thereby, minimizing the required payment each year.

D. Annual surpluses, if any, will be allocated to replenish reserve requirements in accordance with Council Policy, budgetary gaps and then allocated as an additional discretionary payment (ADP) to UAL in the amount recommended by the City Manager and Finance Director during the budget process or as otherwise directed by City Council.

E. Seeking maximum interest savings, the ADP contributed to CalPERS will be applied to pay down the amortization bases with the longest amortization period (in order of maturity).

F. The City will establish a Pension Stabilization Reserve. a. As part of the annual budget process, City Staff shall set aside a portion of any yearend fund balance to manage increases in pension contributions. One-time transfers made to the Pension Stabilization Reserve will vary on a year-by-year basis.

Exhibit A

IV. Transparency and Reporting:

Funding of the City’s pension benefit should be transparent to all parties including City employees, retirees, recognized employee organizations, the City Council and City residents. In order to achieve this transparency, the following information should be provided:

A. Copies of the most current actuarial valuations for the City’s pension plan shall be published on the City’s website within (60) days of finalization of the actuary.

B. The Finance Director shall submit a written report to City Council annually at an open meeting that covers:
a. The funded status of Council imposed reserve requirements b. Major events that have impacted the funded status of each of the CalPERS plans c. Major events that are known to or are likely to occur that may impact the funding status of each plan
C. The City’s Annual Financial Statement shall be published on the City’s website. The financial statements include information on the City’s pension plans and the funded status of the plans.

D. The City’s annual operating budget shall include appropriations for contributions to CalPERS and the annual pension costs.

V. Review of Funding Policy
Funding pension liability requires a long-term plan. The city will review at a minimum biennially, coincident with preparation of the biennial budget to determine if changes to this policy are necessary to ensure adequate resources are being accumulated to fund pension benefits.

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 10
To: Honorable Mayor and City Council Members
From: Scott Wolfe, City Manager
Meeting Date: April 14, 2022
Subject: Ordinance No. 22-05 - “An Ordinance of the City Council of the City of Buellton, California, Approving a Development Agreement (21-DA-01) for the 518 Avenue of Flags – Mixed-Use Development Project Located at 518 Avenue of Flags and Authorizing Execution of the Agreement by the City Manager” (Second Reading)
______________________________________________________________________________

BACKGROUND
On March 24, 2022 , following a presentation by the applicant’s consultant team and the opportunity for public comments, the City Council adopted the resolution approving the development entitlements for the project, after which they then conducted the introduction and first reading of Ordinance No. 22-05, authorizing the City Manager to execute the negotiated Development Agreement. At this time, Ordinance No. 22-05, including Exhibit A (the project’s Development Agreement), is ready for second reading and, if approved, for signature by the Mayor.

RECOMMENDATION
That the City Council consider adoption of Ordinance No. 22-05 - “An Ordinance of the City Council of the City of Buellton, California, Approving a Development Agreement (21-DA-01) for the 518 Avenue of Flags – Mixed-Use Development Project Located at 518 Avenue of Flags and Authorizing Execution of the Agreement by the City Manager” by title only and waive further reading.

ATTACHMENTS
Ordinance No. 22-05 (Exhibit A – Development Agreement – 21-DA-01)

ORDINANCE NO. 22-05

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF BUELLTON, CALIFORNIA, APPROVING A
DEVELOPMENT AGREEMENT (21-DA-01) FOR THE 518
AVENUE OF FLAGS – MIXED-USE DEVELOPMENT
PROJECT LOCATED AT 518 AVENUE OF FLAGS AND

AUTHORIZING EXECUTION OF THE AGREEMENT BY

THE CITY MANAGER
WHEREAS, The 518, LLC, (the “Developer”) submitted an application to the City of Buellton requesting approval of a development agreement (21-DA-01) for the 518 Avenue of Flags – Mixed Use Development project, located at 518 Avenue of Flags; and WHEREAS, collectively, 21-DA-01 and Final Development Plan 21-FDP-05 constitute the “Project”; and
WHEREAS, the Project is proposed to be located on a roughly 1.22 acre site bounded by Second Street and the recently entitled Creekside Village Mixed-Use Development to the south, Avenue Heights Apartments to the east, San Marcos Motel to the north, and Avenue of Flags to the west (the “Project Site”); and
WHEREAS, the Project Site is located within the Avenue of Flags Specific Plan (“Specific Plan) area, which Specific Plan was adopted concurrently with a Mitigated Negative Declaration (“MND”) prepared pursuant to the California Environmental Quality Act (“CEQA”) that comprehensively studied the growth and impacts of the Specific Plan including but not limited to the impacts anticipated by all uses proposed as part of the Project; and WHEREAS, the Project Site has an existing entitlement for Final Development Plan (17- FDP-03) for a mixed-use development, which was approved in 2019 on behalf of the previous Property Owner Kamran Amiri (“Owner”); and
WHEREAS, the current Developer has filed the subject application (21-FDP-05) for new development entitlements, and related Development Agreement (21-DA-01), with a different project description than the previously approved 17-FDP-03; and WHEREAS, upon City Council approval of 21-FDP-05 and 21-DA-01, the existing entitlement approval for Final Development Plan 17-FDP-03 shall be terminated; and WHEREAS, the City referred the Project to various departments and agencies for review and recommendations; and
WHEREAS, the City distributed a Notice of Public Hearing to all property owners of record within 300 feet of the Project Site and published it in the Santa Ynez Valley News on March 10, 2022; and

Ordinance No. 22-05 Page 2 April 14, 2022
WHEREAS, the Planning Commission held a public hearing on the Project at its regular meeting of March 3, 2022 and considered the substance of 21-DA-01 along with the other aspects of the Project and did recommend approval of the Project to the City Council; and WHEREAS, the City Council held a public hearing at its regular meeting of March 24, 2022, to consider the Project, including 21-DA-01 and considered the staff report, supporting documents, public testimony, and all appropriate information submitted with the proposed Project and studied the compatibility of this request with adjacent land uses; and WHEREAS, the City found that the Project is consistent with the MND prepared for the Specific Plan and therefore no additional review under CEQA is necessary for the Project.

NOW, THEREFORE BE IT ORDAINED that the City Council of the City of Buellton:

Section 1
Based on the project materials, the staff report and all attachments, written and oral testimony and comments and all other information presented, hereby finds that with respect to Buellton Municipal Code Section 19.08.130:

1. The development agreement is consistent with the objectives, policies, general land uses and programs specified in the Zoning Code of the City of Buellton, in the City’s General Plan, and in the Specific Plan.

The proposed development agreement is consistent with the objectives, policies, general land uses, and programs set forth in the Buellton General Plan and the Specific Plan, including:
a. The economic development tool, “Development Opportunity Reserve”, included in the Avenue of Flags Specific Plan to incentivize property owners to provide a public good in return to receive some benefit or reduction in standards as part of their development.
b. The Land Use element of the General Plan which identifies the Avenue of Flags as an area that requires special consideration, and includes policy direction that guides future development in the area with a focus a variety of land uses, including mixed use development with the goal to revitalize the Avenue of Flags as an identifiable downtown and place for visitors and residents alike.
c. The Economic Development Element of the General Plan which includes a goal to continue to support and encourage economic revitalization of the Avenue of Flags commercial corridor and where appropriate, encourages that incentives are used to encourage and assist the private sector to maintain and revitalize this area.
d. The Guiding Principles listed in the Avenue of Flags Specific Plan, including to create a unique business and residential attraction for Buellton and the surrounding area within the Santa Ynez Valley (1.1),

Ordinance No. 22-05 Page 3 April 14, 2022
base the future development pattern on a form-based code based on economic opportunity, parcel location and size, rather than on a traditional zoning code that separates land uses and establishes rigid standards that may not be achievable (2.1), and provide for mixed-use area including retail, housing, public buildings, and opportunities for public events (3.1).

Section 2
Based on the project materials, the staff report and all attachments, written and oral testimony and comments and all other information presented, hereby additionally finds:

1. The development agreement will not be detrimental to the health, safety and general welfare of the residents of the City.

As set forth above, the development agreement, along with the remainder of the Project, is consistent with the MND prepared to guide the implementation of the Specific Plan. The MND is incorporated by reference as the basis for the City Council’s finding that the development agreement will not be detrimental to the health, safety and general welfare of the residents of the City.

2. The development agreement will not adversely affect the orderly development of property or the preservation of property values.

The development agreement will not adversely affect the orderly development of property or the preservation of property values insomuch as it will allow for the development of the Project Site consistent with the Specific Plan and in furtherance of the Specific Plan’s goal to create a vibrant downtown core with a thriving mix of land uses and public activity.

3. The development agreement is consistent with the provisions of Government Code Sections 65864 through 65869.5.

The development agreement is consistent with the identified provisions of the Government Code in that, among other things, it is being entered into between the City and the entity holding legal title to the Project Site (Government Code Section 65865); it includes provisions for annual review of the agreement (Government Code Section 65865.1); it specifies the agreement’s duration, permitted uses of the property, density, provisions for dedication of land for public purposes (Government Code Section 65865.2); and its substance has been or will be considered at public hearings of both the Planning Commission and City Council prior to final action (Government Code Section 65867).

Ordinance No. 22-05 Page 4 April 14, 2022
Section 3
Hereby approves and authorizes the City Manager to execute the Development Agreement (21-DA-01) in the form attached hereto as Exhibit ‘A’ and made a part of this ordinance.

Section 4
If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of a court of competent jurisdiction, the holding shall not affect the validity or enforceability of the remaining provisions, and the Council declares that it would have adopted each provision of this ordinance irrespective of the validity of any other provision.

Section 5
The City Clerk is directed to certify this ordinance and cause it to be published in the manner required by law.

PASSED, APPROVED, AND ADOPTED this 14th day of April, 2022. _______________________________
Holly Sierra
Mayor
ATTEST:
_______________________________
Linda Reid
City Clerk
(Exhibit A – Development Agreement – 21-DA-01)

Recording Requested By
And When Recorded Return to:

City of Buellton
P.O. Box 1819
Buellton, CA 93427
Attn: City Clerk
EXEMPT FROM RECORDER’S FEES
Pursuant to Government Code § 6103
APN: 137-170-006
DOCUMENTARY TRANSFER TAX $0

DEVELOPMENT AGREEMENT

BETWEEN
THE CITY OF BUELLTON AND THE 518, LLC
ORDINANCE # 22-05, EFFECTIVE April 14, 2022

THIS AGREEMENT SHALL BE RECORDED WITHIN TEN DAYS

OF EXECUTION BY ALL PARTIES HERETO PURSUANT TO
THE REQUIREMENTS OF GOVERNMENT CODE 65868.5

Exhibit A

DEVELOPMENT AGREEMENT
This Development Agreement (the “Agreement”) is made and entered into by and among the CITY OF BUELLTON, a municipal corporation (referred to hereinafter as “City”) and THE 518, LLC, a California limited liability company (referred to hereinafter as “Developer”). City and Developer are referred to hereinafter individually as “Party” and collectively as “Parties.” In consideration of the mutual covenants and agreements contained in this Agreement, City and Developer agree as follows:

1. Recitals. This Agreement is made with respect to the following facts and for the following purposes, each of which is acknowledged as true and correct by the Parties:

1.1 Pursuant to Government Code section 65864 et seq. and Buellton Municipal Code § 19.08.130, City is authorized to enter into a binding contractual agreement with any person having a legal or equitable interest in real property for the development of such property, to establish certainty in the development process.

1.2 Developer is owner in fee simple of certain real property in the City of Buellton, consisting of approximately 1.22 acres bounded by Second Street and the recently entitled Creekside Village Mixed-Use Development to the south, Avenue Heights Apartments to the east, San Marcos Motel to the north, and Avenue of Flags to the west, as more specifically described by the legal description set forth in Exhibit “1-A” and as depicted in the Site Plan set forth in Exhibit “1-B,” which exhibits are attached hereto and incorporated herein by this reference (the “Property”).

1.3 Developer has prepared a plan for development of the Property (the “Development Plan”) a copy of which is attached hereto as Exhibit “2” and incorporated herein by reference.

1.4 Final Development Plan 21-FDP-05 (“Final Development Plan”), and California Environmental Quality Act (“CEQA”) review have been issued for the Property and were recommended by the Planning Commission on March 3, 2022 for approval by the City Council; the City Council approval occurred on March 24, 2022. Development of the Property, as contemplated in this Agreement, shall be consistent with the Final Development Plan and conditions associated therewith. Collectively, the Final Development Plan, and CEQA review shall be referred to herein as the “Prior Approvals.”

1.5 By this Agreement, City desires to obtain the binding agreement of Developer to develop the Property in accordance with the Prior Approvals and this Agreement. In consideration thereof, City agrees to limit the future exercise of certain of its governmental and proprietary powers to the extent specified in this Agreement. The Parties acknowledge that development of the Property is dependent on the availability of adequate funding, market conditions and the subjective judgment of Developer. Developer will engage in a good faith effort to raise adequate funds for said development.

1.6 By this Agreement, Developer desires to obtain the binding agreement of City to permit the development of the Property in accordance with the Prior Approvals and this Agreement. In consideration thereof, Developer agrees to waive its rights to legally challenge the limitations and exactions imposed upon the development of the Property pursuant to the Prior Approvals and this Agreement and to provide all of the public benefits and improvements specified in this Agreement.

1.7 City and Developer acknowledge and agree that the consideration that is to be exchanged pursuant to this Agreement is fair, just and reasonable and that this Agreement is consistent with the General Plan of City.

1.8 On March 3, 2022, the Planning Commission of City commenced a duly noticed public hearing on the substantive terms of this Agreement and at the conclusion of the hearing recommended approval of this Agreement.

1.9 On March 24, 2022, the City Council of City ("City Council") commenced a duly noticed public hearing on this Agreement, and at the conclusion of the hearing approved this Agreement by Ordinance No. 20-05 ("the Enabling Ordinance").

2. Property Subject To This Agreement. All of the Property shall be subject to this Agreement. The contemplated development of the Property in accordance with this Agreement and the Prior Approvals may be referred to hereinafter as the “Project”. The Property shall be deemed “Complete” or “Completed” (as such terms are used herein) when the Property has been fully developed in accordance with the Prior Approvals and this Agreement and when a certificate of occupancy has been issued with respect to the improvements on the Property.

3. Binding Effect; Assignment. Subject to the terms of this Agreement, including, without limitation Section 19 below, the burdens of this Agreement are binding upon, and the benefits of this Agreement inure to, each Party and each successor in interest thereto and constitute covenants that run with the Property. Whenever the terms "City" and "Developer" are used herein, such terms shall include every successor in interest thereto, except that the term "Developer" shall not include the purchaser or transferee of any portion of the Project that has been fully developed in accordance with the Prior Approvals and this Agreement. Notwithstanding the above, Developer shall not transfer the Property or any portion thereof without the approval of the City Planning Director, after taking into consideration that there are events beyond the Developer's control as stated in Paragraphs

1.5 and 1.6; and provided, however, that such approval shall not be unreasonably withheld, conditioned or delayed. For purposes of the foregoing, it shall be deemed reasonable to withhold or condition approval only for one or more of the following reasons: (i) the proposed transferee is not reasonably qualified to be substituted as the developer of the Project (or applicable portion thereof) in place of Developer; (ii) the proposed transferee is subject to a bankruptcy or similar proceeding; (iii) the proposed transferee is then currently under indictment for a criminal violation. The decision by the Planning Director may be appealed to the City Council. Notwithstanding the above, notice to the City but not City approval shall be required for (1) any transfer of all or any portion of the Property to entities affiliated with, or controlled by or under common control of, either Developer or any of its

partners, members or principals, or (2) any lease or sale of a unit (or later-subdivided lot) within the Project that has been Completed. Notwithstanding the foregoing or anything to the contrary herein, Developer shall have the absolute and unconditional right, at any time and from time to time, without the consent of City, to execute and deliver any deed of trust or mortgage of record in favor of a Financier (as defined below), and the exercise of any remedies under such deed of trust or mortgage of record by a Financier (including, without limitation, foreclosure or deed or other transfer in lieu of foreclosure) shall not be subject to City’s consent. City shall, within thirty (30) days after the written request of Developer or any proposed transferee, acknowledge in writing that a proposed transfer of this Agreement by Developer is approved or disapproved by City (and if disapproved, City shall provide an explanation as to the basis for such disapproval). If City fails to provide its approval or disapproval within such thirty (30) day period, then Developer may submit a second request to City of such transferee clearly stating that it is the second and final request, and if City fails to respond to said second request within a fifteen (15) day timeframe, such request shall be deemed approved by City. With regard to any transfer authorized hereunder:

3.1 Constructive Notice and Acceptance. Every person who acquires any right, title or interest in or to any portion of the Property in which Developer has a legal interest and which is not Completed is, and shall be, conclusively deemed to have consented and agreed to be bound by this Agreement, whether or not any reference to this Agreement is contained in the instrument by which such person acquired such right, title or interest.

3.2 Release Upon Transfer. Upon the sale or transfer of Developer's interest in the whole of the Property, except as otherwise provided herein, and in addition to the rights granted to Developer under Section 19 hereof, Developer shall be released from its obligations subsequent to the effective date of the sale or transfer, provided that Developer (i) was not in breach of this Agreement at the time of the sale or transfer, (ii) such sale or transfer is authorized/approved per section 3, and (iii) prior to or concurrently with the sale or transfer, delivers to City a written assumption agreement, duly executed by the purchaser or transferee and notarized by a notary public, whereby the purchaser or transferee expressly assumes the obligations of Developer under this Agreement. In the event of a sale or transfer of a part of the Property prior to Completion, such assumption agreement shall also identify those infrastructure and maintenance obligations associated with the part transferred and those associated with the part not transferred.

4. Development of the Property. The following provisions shall govern the development and use of the Property.

4.1 Permitted Uses. The permitted and conditionally permitted uses of the Property shall be limited to those that are authorized by City zoning code, Prior Approvals and as otherwise set forth in this Agreement, including, but not limited to, a mixed use development with up to 48 total residential units, 5,511 square feet of general commercial space, and parking.

4.2 Development Standards. All design and development standards, including but not limited to density or intensity of use and maximum height and size of buildings,

that shall be applicable to the Property are set forth in the Prior Approvals and this Agreement. Notwithstanding the foregoing, the Project is relieved from the following development standards to the extent described herein and in consideration for the public benefits described herein:
(a) Density. The Property may be developed with up to 48 residential units, for a residential density of up to 39 dwelling units per acre. (b) Building Height. The Property may be developed with a maximum building height of 41 feet. Maximum building height shall be calculated using the method found in Buellton Municipal Code Section 19.04.110. For the purposes of building height exceptions per BMC Section 19.04.110 B, the following structures shall be considered architectural features and may be up to 50 feet in height: solar equipment, HVAC, mechanical equipment, AC condensers, elevators and stair housings, decorative towers, flagpoles, and other similar equipment and structures.

4.3 Building Standards. Each instance of permitted construction activity on the Property shall adhere to any federal or state building requirements, municipal building codes and/or regulations (collectively "the Building Codes") in effect at the time of the earlier of the plan check approval or permit approval for each said instance of construction activity.

4.4 Reservations and Dedications. All reservations and dedications of land for public purposes, if any, applicable to the Property are set forth in the Prior Approvals and this Agreement.

5. 4.5 Compliance with Affordable Housing Standards. An Affordable Housing Agreement between the Parties, meeting the provisions of Buellton Municipal Code Section 19.16.040, or other requirements as may be deemed acceptable to the City Council, shall be approved by the City Council and executed prior to Zoning Clearance for Final Development Plan No. 21-FDP-05. Building Permits shall not be issued until such Agreement is recorded against the property.Vesting of Development Rights.

5.1 Timing of Development. In Pardee Construction Co. v. City of Camarillo, 37 Cal.3d 465 (1984), the California Supreme Court held that the failure of the parties therein to provide for the timing or rate of development resulted in a later-adopted initiative restricting the rate of development to prevail against the parties’ agreement. City and Developer intend to avoid the result in Pardee by acknowledging and providing that Developer shall have the right, without obligation, except as otherwise specifically set forth herein, to develop improvements set forth in the Development Plan at such rate and times as Developer deems appropriate within the exercise of its subjective business judgment.

In furtherance of the Parties' intent, as set forth in this Section, no future amendment of any existing City ordinance or resolution, or future adoption of any ordinance, resolution or other action, that purports to limit the rate or timing of development over time or alter the sequencing of development phases, whether adopted or imposed by City Council or through the initiative or referendum process, shall apply to the Property or the Project. This Agreement will bind City to the terms and obligations specified in this Agreement and will

limit, to the degree specified in this Agreement and under state law, the future exercise of City’s ability to regulate development of the Project. However, nothing in this Section shall be construed to limit City's right to ensure that Developer timely provides all infrastructure required by the Prior Approvals and this Agreement, if any.

5.2 Issuance of Subsequent Approvals. Applications for land use approvals, entitlements and permits, design review approvals (e.g. site plans, architectural plans and landscaping plans), encroachment permits, and sewer and water connections that are necessary to or desirable for the development of the Project (collectively “the Subsequent Approvals”; individually “a Subsequent Approval”) shall be consistent with the Prior Approvals and this Agreement, except as to where compliance with Prior Approvals and/or this Agreement would violate state and/or federal law in existence at the time of the application for a Subsequent Approval. For purposes of this Agreement, Subsequent Approvals do not include building permits. Building permits shall be issued pursuant to the provisions of Section 4.3, supra.

Subsequent Approvals shall be governed by the Prior Approvals and by the applicable provisions of the Buellton General Plan, the Buellton Municipal Code and other City ordinances, resolutions, rules, regulations, policies, standards and requirements as most recently adopted or approved by City Council or through the initiative or referendum process and in effect at the time that the application for the Subsequent Approval is deemed complete by City (collectively "City Laws"), except City Laws that:
(a) limit or reduce the density or intensity of the Project, or any part thereof, or otherwise require any reduction in the square footage or number or location of proposed buildings or other improvements from what is allowed by the Prior Approvals; (b) limit or control the rate, timing, or sequencing of the approval, development or construction of all or any part of the Project in any manner, provided that all infrastructure required by the Development Plan to serve the portion of the Property covered by the Subsequent Approval, is in place or is scheduled to be in place prior to completion of construction;
(c) are not uniformly applied on a City-wide basis to all substantially similar types of development projects or to all properties with similar land use designations; (d) modify the land use from what is permitted by the General Plan Land Use Element at the operative date of this Agreement or that prohibit or restrict the establishment or expansion of urban services to the Project; and/or (e) seek to impose building standards contrary to those set forth in Section 4.3.

Developer retains the rights to legally challenge the Subsequent Approvals to the extent they are not consistent with the provisions of Section 5.2. Prior to commencing any court action, any decision made by the Planning Director shall be appealed to City’s

Planning Commission and any decision made by City’s Planning Commission shall be appealed to City Council.

5.3 Term of Prior Approvals. Notwithstanding any construction, financing or planning that Developer may undertake pursuant to the Prior Approvals or this Agreement, the term of the approved Prior Approvals, or any portion thereof, shall expire at midnight on April 14, 2029 (as the same may be extended in accordance with the terms of this Agreement, including, without limitation, Sections 5.7, 5.8 and 10(a) through 10(i) herein, but the Parties hereby agree that no legislative approvals purported to extend the term of the Prior Approvals shall apply to extend the Prior Approvals) or upon the expiration or earlier termination of this Agreement, whichever occurs first, for any improvement for which Developer has not obtained a building permit. If and to the extent that Developer has not obtained a building permit for any improvements contemplated by the Prior Approvals at the time of expiration set forth herein, such Prior Approvals for such improvements and Developer’s right to develop such improvements under this Agreement shall expire. Post-expiration, Developer shall be required to submit any remaining development on the Property to City for review as though the remaining development were a completely new project.

5.4 Term of Subsequent Approvals. The term of any Subsequent Approval involving a limited duration of time shall be two years or as later may be specified in the Subsequent Approval; provided that the term may be extended by the decision maker for two (2) additional one (1) year periods upon application of Developer holding the Subsequent Approval filed with City's Planning Department prior to the expiration of that Subsequent Approval. Each such Subsequent Approval shall be deemed inaugurated, and no extension shall be necessary, if a building permit was issued and Developer broke ground within six months of said issuance, any required foundation for that phase received final inspection by City's Building Inspector within nine months of breaking ground, and Developer began construction of the non-foundational improvements within six months of the foundation final inspection, or prior to the expiration of that Subsequent Approval, whichever comes first.

It is understood by City and Developer that certain Subsequent Approvals may not remain valid for the term of this Agreement. Accordingly, throughout the term of this Agreement, Developer shall have the right, at its election, to apply for a new permit to replace a permit that has expired or is about to expire.

5.5 Modification of Approvals. Throughout the term of this Agreement, Developer shall have the right, at its election and without risk to any right that is vested in it pursuant to this Section, to apply to the Planning Director (the “Director”) for minor modifications to the Prior Approvals and Subsequent Approvals. Minor modifications to the Prior Approvals and Subsequent Approvals shall include any changes that are consistent with the overall intent of the Prior Approvals and which do not materially alter the overall nature, scope, or design of the Project. Minor modifications shall additionally include those items designated as "minor" under Section 19.08.110 of the Buellton Municipal Code and any regulations promulgated pursuant thereto, any modification that incorporates any higher safety standard adopted by changes to the Building Codes after

any permit issuance, and/or any modification of the order or timing of any infrastructure improvement(s). In effecting these modifications, the City shall fully cooperate with the Developer, provided that the total density and intensity of the Project are not increased.

The approval or conditional approval of any such minor modification shall not be deemed an amendment to this Agreement under Government Code Section 65868 and unless otherwise required by law shall not require the approval of any other person other than the Director, provided that, in addition to any other findings that may be required in order to approve or conditionally approve the modification, a finding is made that the modification is consistent with this Agreement. The following matters shall not be considered minor modifications, but shall be considered substantive amendments which shall be reviewed by the Planning Commission and shall require City Council approval:
(a) Addition of permitted uses not substantially similar to those identified in the Prior Approvals, unless such uses are otherwise permitted by right under the applicable provisions of the zoning code;
(b) Increase of the density or intensity of use of the Property; (c) Increase of the maximum height and size in permitted buildings; (d) Reduction of any required dedication;
(e) Reduction of parking that would result in a number of spaces less than 100% of the required parking, per the provisions of the Avenue of Flags Specific Plan and Buellton Municipal Code Chapter 19.04;
(f) Any amendment or change requiring a subsequent or supplemental CEQA review that has the potential to modify or waive an environmental mitigation measure.

5.6 Issuance of Building Permits. No building permit, final inspection or certificate of occupancy will be unreasonably withheld from Developer if all infrastructure required to serve the portion of the Property covered by the building permit is in place or is scheduled to be in place prior to completion of construction and all of the other relevant provisions of the Prior Approvals, Subsequent Approvals and this Agreement have been satisfied.

5.7 Moratorium on Development. Nothing in this Agreement shall prevent City, whether by City Council or through the initiative or referendum process, from adopting or imposing a moratorium on the processing and issuance of Subsequent Approvals and building permits and on the finalizing of building permits by means of a final inspection or certificate of occupancy, provided that the moratorium is adopted or imposed (i) on a City-wide basis to all substantially similar types of development projects and/or properties with similar land use designations and (ii) as a result of a utility shortage or a reasonably foreseeable utility shortage, including without limitation a shortage of water, sewer treatment capacity, electricity or natural gas. The term of this Agreement and the Prior Approvals shall be extended by the duration of any such moratorium (e.g. the term shall be extended by twelve months, in the event of a twelve month moratorium).

5.8 Delays Due to Litigation. The term of this Agreement and the Prior Approvals shall be extended by the duration of any restriction placed on City or Developer by litigation brought by a third party attacking the validity of this Agreement, a Prior Approval, a Subsequent Approval or any other action necessary for development of the Project, provided such litigation is not initiated as a means to extend the rights under this Agreement. Notice of the commencement of litigation shall be provided to the other party to this Agreement within sixty (60) days of service of any summons or complaint on City or Developer.

6. Developer Agreements.

6.1 Developer shall develop the Property consistent with (i) this Agreement, (ii) the Prior Approvals, (iii) the onsite and offsite improvements to be made to the Property, and (iv) all Subsequent Approvals for which it was the applicant or a successor in interest to the applicant. The parties acknowledged that development of the Property is dependent on the availability of adequate funding, market conditions and the subjective judgment of Developer. Developer will engage in a good faith effort to raise adequate funds. However, Developer is not obligated to build any improvements or any phase or portion thereof if adequate funding is not available or if market conditions are not satisfactory to Developer in its sole discretion; provided, however, that for any phase or portion thereof constructed, Developer shall be required to comply with any requirements imposed by City and accepted by Developer during the Building plan check process, as well as any associated infrastructure improvements required by this Agreement, the Prior Approvals and any Subsequent Approvals.

6.2 In connection with development of the Property, Developer agrees to pay any and all applicable City development and processing fees at the rate and amount in effect at the time the fee is required to be paid. Developer further agrees that unless specifically exempted by this Agreement, it is subject to all fees imposed by City at the operative date of this Agreement and such future fees imposed as determined by City in its sole discretion so long as said fee is imposed on similarly situated properties.

6.3 Anticipated Development Timeline
Notwithstanding the term of the Prior Approvals set forth in Section 5.3 and fully understanding that this Agreement was entered into in order to provide Developer flexibility in the timing of development as well as certain other benefits enumerated herein, Developer anticipates undertaking the Project with the following timeline:
(a) Submit building plans for approval by the County of Santa Barbara within twenty-four (24) months of execution of this Agreement. (b) Commence construction within thirty-six (36) months of execution of this Agreement.
(c) Complete construction within fifty-four (54) months of execution of this Agreement.

6.4 Public Benefit Fund.

(a) Developer agrees that the benefits accruing to the Project and the Property by and through this agreement are considerable and Developer agrees to pay a total of Two Hundred Thousand Dollars ($200,000) to the City to be held in a separate fund to be administered by the City Manager and Finance Director (“Public Benefit Fund”).

The Parties agree that payments shall be remitted on the following schedule:
(i) On or before the earlier of the two-year anniversary date of the execution of this Agreement or the submitting of building plans for approval to the County of Santa Barbara, Developer shall remit the amount of Forty Thousand Dollars ($40,000) to the City ;
(ii) On or before the three-year anniversary date of the execution of this Agreement, Developer shall remit the amount of Forty Thousand Dollars ($40,000) to the City;
(iii) On or before the four-year anniversary date of the execution of this Agreement, Developer shall remit the amount of Forty Thousand Dollars ($40,000) to the City;
(iv) On or before the five-year anniversary date of the execution of this Agreement, Developer shall remit the amount of Forty Thousand Dollars ($40,000) to the City;
(v) On or before the six-year anniversary date of the execution of this Agreement, Developer shall remit the amount of Forty Thousand Dollars ($40,000) to the City;
(b) Developer acknowledges and agrees that each of the five annual payments shall count as a partial credit toward the full obligation of Two Hundred Thousand Dollars ($200,000) and that each payment shall be nonrefundable immediately upon being made.
(c) Notwithstanding the foregoing, Developer acknowledges and agrees that the full amount of Two Hundred Thousand Dollars ($200,000) must be received by the City prior to issuance of Building Permits for the Project and such remittance shall serve as a condition precedent to the issuance of the Building Permits. (d) The Parties agree that if this Agreement is terminated for any reason prior to the conclusion of and occupancy of the Project, the City may in its sole discretion remove some or all of the funds from the Public Benefit Fund and transferred to the City’s general fund.
(e) The Parties agree that Developer may propose an actual public benefit to be approved by the City in lieu of deposits to the Public Benefit Fund and that the City may agree to Developer constructing or providing an actual public benefit at any time prior to issuance of a Certificate of Occupancy for the Project by amendment to this Agreement.

7. City Agreements.

7.1 Processing. City shall timely process all plan checking, excavation, grading, building, encroachment and street improvement permits, certificates of occupancy, utility connection authorizations, and other ministerial permits or approvals necessary, convenient or appropriate for the grading, excavation, construction, development, improvement, use and occupancy of the Project.

7.2 Consistency Determinations. Notwithstanding any provision of the Buellton Municipal Code or City policy to the contrary, for each improvement to be constructed on the Property, prior to issuance of any grading or building permit for the improvement, staff shall first review such for consistency with the Prior Approvals and this Agreement.

8. Supersession of Agreement by Change of Law. In the event that any state or federal law or regulation enacted after the date the Enabling Ordinance was adopted by City Council prevents or precludes compliance with any provision of this Agreement, such provision shall be deemed modified or suspended to comply with such state or federal law or regulation, as reasonably determined necessary by City. Developer retains the right to terminate this Agreement without penalty if it disagrees with City’s determination to modify or suspend any provision of this Agreement pursuant to this Section 8.

9. Demonstration of Good Faith Compliance. In order to ascertain compliance by Developer with the provisions of this Agreement, this Agreement shall be reviewed annually by City and Developer shall be required to demonstrate good faith compliance with the terms of this Agreement at the time of such review. Noncompliance shall be deemed a default of this Agreement. City shall notify Developer of any such default and give Developer an opportunity to cure such default as set forth in Section 11 of this Agreement. The failure of City to conduct any such annual review shall not, in any manner, constitute a breach of this Agreement by City; diminish, impede, or abrogate the obligations of Developer hereunder; or render this Agreement invalid or void.

10. Authorized Delays. Performance by any Party of its obligations hereunder, other than payment of fees, shall be excused during any period of "Excusable Delay", as hereinafter defined, provided that the Party claiming the delay gives notice of the delay to the other Party within sixty (60) days of commencement of the delay. Such Excusable Delay shall extend the term of the Agreement as noted in Section 5.3 for the duration of the Excusable Delay. For purposes hereof, Excusable Delay shall mean delay that directly affects, and is beyond the reasonable control of, the Party claiming the delay, including without limitation: (a) act of God; (b) civil commotion; (c) riot; (d) strike, picketing or other labor dispute; (e) shortage of materials or supplies; (f) damage to work in progress by reason of fire, flood, earthquake or other casualty; (g) failure, delay or inability of City to provide adequate levels of public services, facilities or infrastructure to the Property including, by way of example only, the lack of water to serve any portion of the Property due to drought; (h) delay caused by a restriction imposed or mandated by a governmental entity other than City; (i) or litigation brought by a third party attacking the validity of this

Agreement, a Prior Approval, a Subsequent Approval or any other action necessary for development of the Property.

11. Provisions Regarding Defaults.

11.1 Default by Developer. Developer shall be deemed to have breached this Agreement if it:
(a) practices, or attempts to practice, any fraud or deceit upon City; or (b) willfully violates any order, ruling or decision of any regulatory or judicial body having jurisdiction over the Property or the Project, provided that Developer may contest any such order, ruling or decision by appropriate proceedings conducted in good faith, in which event no breach of this Agreement shall be deemed to have occurred unless and until there is a final adjudication adverse to Developer and Developer fails to adhere to said final adjudication; or
(c) fails to make any payments required under this Agreement and the same is not cured within five (5) days of receiving written notice of default from City to Developer; or
(d) materially breaches any of the provisions of this Agreement and the same is not cured within the time set forth in a written notice of default from City to Developer, which period of time shall not be less than ten (10) days from the date that the notice is deemed received, provided if Developer cannot reasonably cure the breach within the time set forth in the notice, Developer fails to commence to cure the breach within such time limit and diligently effect such cure thereafter.

11.2 Default by City. City shall be deemed in breach of this Agreement if it materially breaches any of the provisions of this Agreement and the same is not cured within the time set forth in a written notice of default from Developer to City, which period shall not be less than ten (10) days from the date the notice is deemed received, provided if City cannot reasonably cure the breach within the time set forth in the notice, City fails to commence to cure the breach within such time limit and diligently effect such cure thereafter.

11.3 Content of Notice of Default. Every notice of default shall state with specificity that it is given pursuant to this Section of this Agreement, the nature of the alleged breach, and the manner in which the breach may be satisfactorily cured. The notice shall be deemed given on the date that it is personally delivered or on the date that it is deposited in the United States mail, in accordance with Section 20 hereof.

11.4 Remedies for Breach. The Parties acknowledge that remedies at law, including without limitation money damages, would be inadequate for breach of this Agreement by either Party due to the size, nature and scope of the Project. The Parties also acknowledge that it would not be feasible or possible to restore the Property to its natural and/or original condition once implementation of this Agreement has begun. Therefore, the Parties agree that the remedies for breach of this Agreement shall be limited to

termination of this Agreement, injunctive relief, specific performance and/or indemnity pursuant to Section 16. Either party may terminate this Agreement by giving written notice thereof if the other party fails to cure a default after notice and an opportunity to cure.

Nothing in this subsection shall be deemed to preclude City from prosecuting a criminal action against Developer if it violates any City ordinance or state statute, which violation is not excused by the terms of this Agreement.

11.5 Effect of Partial Developer Breach. Notwithstanding anything to the contrary in this Agreement, but subject to the terms of Section 3 hereof, in the event that (i) Developer or any of its successors assigns some, but not all, of its rights under this Agreement in connection with a sale of some, but not all, of the Property, and (ii) thereafter Developer or one or more of its successors in interest under this Agreement is in default under this Agreement and either Developer or one or more of its successors in interest under this Agreement is not in default hereunder, then any remedy City may have the right to take under this Agreement, including, without limitation, the right of termination or modification of this Agreement, shall only apply to the Party(ies) that is (are) in default and the portion(s) of the Property owned by such Party(ies) and shall not apply to Developer or any successor and/or assignee of Developer under this Agreement that is not in default hereunder.

12. Mortgage Protection. At the same time that City gives notice to Developer of a breach, City shall send a copy of the notice to each holder of record of any deed of trust on the portion of the Property in which Developer has a legal interest (“Financier”), provided that the Financier has given prior written notice of its name and mailing address to City and the notice makes specific reference to this Section. The copies shall be sent by United States mail, registered or certified, postage prepaid, return receipt requested, and shall be deemed received upon the third (3rd) day after deposit.

Each Financier that has given prior notice to City pursuant to this Section shall have the right, at its option and insofar as the rights of City are concerned, to cure any such breach within fifteen (15) days after the receipt of the notice from City. If such breach cannot be cured within such time period, the Financier shall have such additional period as may be reasonably required to cure the same, provided that the Financier gives notice to City of its intention to cure and commences the cure within fifteen (15) days after receipt of the notice from City and thereafter diligently prosecutes the same to completion. City shall not commence legal action against Developer by reason of Developer's breach without allowing the Financier to cure the same as specified herein.

Notwithstanding any cure by Financier, this Agreement shall be binding and effective against the Financier and every owner of the Property, or part thereof, whose title thereto is acquired by foreclosure, trustee sale or otherwise.

13. Estoppel Certificate. At any time and from time to time, Developer may deliver written notice to City and City may deliver written notice to Developer requesting that such Party certify in writing that, to the knowledge of the certifying Party (i) this Agreement is in full force and effect and a binding obligation of the Parties, (ii) this Agreement has not

been amended, or if amended, the identity of each amendment, (iii) the requesting Party is not in breach of this Agreement, or if in breach, a description of each such breach. The Party receiving such a request shall execute and return the certificate within thirty (30) days following receipt of the notice. Failure of the Party receiving the request to timely execute and deliver such estoppel certificate shall constitute an acknowledgment by the Party receiving the request that the requesting Party is not in breach of the agreement and that any such related statements in the request are true and correct. City acknowledges that a certificate may be relied upon by successors in interest to Developer who requested the certificate and by a Financier and other potential holders of record of deeds of trust on the portion of the Property in which that Developer has a legal interest.

14. Administration of Agreement. Any obligation or right of the City set forth herein may be exercised or undertaken by the City Manager, unless otherwise required by City Municipal Code or this Agreement to be exercised by another person or body of the City.

Any decision by City staff concerning the interpretation and administration of this Agreement and development of the Property in accordance herewith may be appealed by Developer to the Planning Commission, provided that any such appeal shall be filed with the City Clerk of City within ten (10) days after the affected Developer personally receives notice of the staff decision. The Planning Commission shall render its decision to affirm, reverse or modify the staff decision within sixty (60) days after the appeal was filed. Any decision of the Planning Commission may be appealed to City Council, with the same schedule and deadlines. Developer shall not seek judicial review of any staff decision without first having exhausted its remedies pursuant to this Section.

15. Amendment or Termination by Mutual Consent. In accordance with the provisions of Ordinance No. 20-07 of City or any successor thereof then in effect, this Agreement may be amended or terminated, in whole or in part by mutual consent of City and Developer.

16. Indemnification. Developer shall indemnify, defend with counsel reasonably approved by City, and hold harmless City and its officers, employees and agents from and against any and all losses, liabilities, fines, penalties, costs, claims, demands, damages, injuries or judgments arising out of, or resulting in any way from, Developer's performance pursuant to this Agreement.

Developer shall indemnify, defend with counsel reasonably approved by City, and hold harmless City and its officers, employees and agents from and against any action or proceeding to attack, review, set aside, void or annul this Agreement or any provision thereof; arising out of or in any way relating to the Project, any discretionary approvals granted by City related to the development of the Project, or the environmental review conducted under California Environmental Quality Act, Public Resources Code Section 21000 et seq., for the Project; excepting the foregoing any action by Developer against City for breach of this Agreement pursuant to Section 11.2 of this Agreement. Developer retains the right to withdraw from any such action or proceeding and terminate this Agreement without penalty. Upon such withdrawal and termination, Developer’s obligation to indemnify, defend with counsel reasonably approved by City, and hold harmless City and its officers, employees and agents shall terminate without penalty, provided any pending action or claim is also dismissed or terminated and City’s costs incurred to that point are

paid. If City elects to continue to participate in any action or claim after Developer has elected to withdraw and terminate, Developer shall have no obligation for costs and liabilities incurred and accruing after such date of withdrawal and termination.

City shall indemnify, defend with counsel reasonably approved by Developer, and hold harmless Developer and its officers, employees and agents from and against any and all losses, liabilities, fines, penalties, costs, claims, demands, damages, injuries or judgments arising out of, or resulting in any way from, City’s failure to perform pursuant to the terms of this Agreement.

17. Time of Essence. Time is of the essence for each provision of this Agreement of which time is an element.

18. Operative Date. This Agreement shall become operative on the date the Enabling Ordinance becomes effective pursuant to Government Code Section 36937.

19. Term. This Agreement shall remain in full force and effect until the earliest to occur of: (i) the date set forth in Section 5.3 herein, (ii) the Property has achieved Completion, or (iii) this Agreement is sooner terminated as otherwise provided herein.

Upon the Completion of all or any portion of the Project, this Agreement shall automatically terminate with respect to, and the City shall release Developer from, further obligations under this Agreement relating to such portion of the Property, which termination and release shall be self-executing and shall not require the execution or recordation of any further document or instrument by either Party.

Without limiting the foregoing, upon expiration of the term or earlier termination of this Agreement, the Parties shall execute any document reasonably requested by any Party to remove this Agreement from the public records as to the Property, and every portion thereof, to the extent permitted by applicable laws.

20. Notices. All notices and other communications given pursuant to this Agreement shall be in writing and shall be deemed received when personally delivered (including by means of professional messenger service or reputable overnight air express service utilizing receipts [e.g., United States Postal Service and Federal Express]), or upon the third (3rd) day after deposit in the United States mail, registered or certified, postage prepaid, return receipt requested, to the Parties at the addresses set forth below:

City:

City of Buellton
PO Box 1819
107 W. Highway 246
Buellton, California 93427
Attn: City Manager

and
Owner:

The 518, LLC
26500 Agoura Road
Suite 102-316
Calabasas, California 91302
Attention: Mannbayar, LLC, Manager, Brandon Mann
Any Party may, from time to time, by written notice to the other, designate a different address which shall be substituted for the one above specified.

21. Entire Agreement. This Agreement contains the entire agreement between the Parties regarding the subject matter hereof, and all prior agreements or understandings, oral or written, are hereby merged herein. This Agreement shall not be amended, except as expressly provided herein.

22. Waiver. No waiver of any provision of this Agreement shall constitute a waiver of any other provision, whether or not similar; nor shall any such waiver constitute a continuing or subsequent waiver of the same provision. No waiver shall be binding, unless it is executed in writing by a duly authorized representative of the Party against whom enforcement of the waiver is sought.

23. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall be effective to the extent the remaining provisions are not rendered impractical to perform, taking into consideration the purposes of this Agreement.

24. Relationship of the Parties. Each Party acknowledges that, in entering into and performing under this Agreement, it is acting as an independent entity and not as an agent of any of the other Parties in any respect. Nothing contained herein or in any document executed in connection herewith shall be construed as creating the relationship of partners, joint ventures or any other association of any kind or nature between City and Developer, jointly or severally.

25. No Third Party Beneficiaries. This Agreement is made and entered into for the sole benefit of the Parties and their successors in interest. No other person shall have any right of action based upon any provision of this Agreement.

26. Recordation of Agreement and Amendments. This Agreement and any amendment thereof shall be recorded with the County Recorder of the County of Santa Barbara by the City Clerk of City within ten days of its approval. City shall provide Developer with a copy of the recorded Agreement once it has been returned by the County.

27. Cooperation Between City and Developer. City and Developer shall execute and deliver to the other all such other and further instruments and documents as may be reasonably necessary to carry out the purposes of this Agreement.

28. Rules of Construction. The captions and headings of the various Sections and subsections of this Agreement are for convenience of reference only, and they shall not constitute a part of this Agreement for any other purpose or affect interpretation of this Agreement. Should any provision of this Agreement be found to be in conflict with any provision of the Prior Approvals or the Subsequent Approvals, the provision of this Agreement shall prevail.

29. Joint Preparation. This Agreement shall be deemed to have been prepared jointly and equally by the Parties, and it shall not be construed against any Party on the ground that the Party prepared this Agreement or caused it to be prepared.

30. Governing Law and Venue. This Agreement is made, entered into, and executed in the County of Santa Barbara, California, and the laws of the State of California shall govern its interpretation and enforcement. Any action, suit or proceeding related to, or arising from, this Agreement shall be filed in the appropriate court having jurisdiction in the County of Santa Barbara.

31. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which constitute one and the same instrument. [Remainder of Page Intentionally Blank; Signature Pages Follow]

IN WITNESS WHEREOF, Developer and City of Buellton have executed this Development Agreement on the date first above written.

OWNER:

THE 518, LLC,
a California limited liability company
By: MannBayar, LLC,
a California limited liability company
its Manager

By: _____________________________
Brandon Mann
Manager
CITY OF BUELLTON:

By:___________________________
Scott Wolfe, City Manager
ATTEST
______________________________
Linda Reid, City Clerk
APPROVED AS TO FORM:
______________________________
Gregory M. Murphy, City Attorney

Exhibit 1-A
Property Legal Description
The land referred to herein is situated in the State of California, County of Santa Barbara and described as follows:

THAT PORTION OF THAT CERTAIN 445 ACRE TRACT OF LAND MARKED "EMILY BUELL", AS SHOWN UPON MAP OF DIVISION OF R. T. BUELL RANCH,

BEING A PORTION OF RANCHO SAN CARLOS DE JONATA IN THE CITY OF

BUELLTON, COUNTY OF SANTA BARBARA, STATE OF CALIFORNIA, FILED IN BOOK 11 AT PAGE 165 OF MAPS AND SURVEYS, RECORDS OF SAID SANTA BARBARA COUNTY, DESCRIBED AS FOLLOWS:

BEGINNING AT A FOUND 1/2 INCH PIPE OF THE SOUTHEASTERLY LINE OF

THE NEW STATE HIGHWAY RIGHT OF WAY AS IT NOW EXISTS, BEING ALSO

THE MOST WESTERLY CORNER OF THE TRACT OF LAND DESCRIBED IN THE DEED TO JAMES PEKAR, ET UX., RECORDED MARCH 26, 1953 IN BOOK 1140, AT PAGE 262 OF OFFICIAL RECORDS, AS INSTRUMENT NO. 4948; THENCE ALONG THE SOUTHWESTERLY LINE OF THE PEKAR TRACT, SOUTH 62° 17' EAST 265 FEET TO FOUND 1/2 INCH SURVEY PIPE ON THE MOST SOUTHERLY CORNER OF SAID TRACT; THENCE SOUTH 27° 43' WEST 200.08 FOOT TO A SET 1/2 INCH SURVEY PIPE ON THE NORTHEASTERLY LINE OF A 60 FOOT ROAD EASEMENT AS GRANTED TO LEON A. ROESER, BY DEED RECORDED MAY 5, 1949 IN BOOK 852 AT PAGE 73 OF OFFICIAL RECORDS, AS INSTRUMENT NO. 5561; THENCE ALONG THE NORTHEASTERLY LINE OF SAID EASEMENT, NORTH 62° 17' WEST 265 FEET TO A SET 1/2 INCH SURVEY PIPE ON THE

SOUTHEASTERLY LINE OF THE NEW STATE HIGHWAY RIGHT OF WAY AS IT NOW EXISTS; THENCE ALONG SAID SOUTHEASTERLY LINE, NORTH 27° 43' EAST 200.08 FEET TO THE POINT OF BEGINNING.

THE LAND HEREIN DESCRIBED IS SHOWN ON A MAP OF SURVEY FILED IN BOOK 36, PAGE 10 OF RECORD OF SURVEYS.

APN: 137-170-006
(End of Legal Description)

Exhibit 1-B
Existing Site Plan

Exhibit 2
Development Plan

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 11

To: The Honorable Mayor and City Council
From: Scott Wolfe, City Manager
Meeting Date: April 14, 2022
Subject: Request to Authorize Funding for Temporary Planning Department Staffing
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BACKGROUND
Due to anticipated and unanticipated absences of full time employees, the Planning Department is extremely short staffed. This situation is expected to last at least through the end of April, and possibly longer. Further, Irma Tucker, the City’s Contract Planner, is expected to be on leave for about four weeks in July and August.

This unexpected situation puts the City in a precarious position, as many of the permits issued by the Planning Department have statutory deadlines which must be met to avoid serious legal repercussions. The current uncertainty of the duration of this staffing shortage makes the need to ensure adequate coverage of the department an immediate one.

To address this situation, staff proposes to bring on a part-time professional planner to provide a presence in the Planning Department and assist with the processing of permits.

It is anticipated that this coverage would be needed through mid to late August.

Staff is currently in the process of seeking out a firm that could provide this service, as well as the costs for doing so. However, given the need for immediate coverage, staff is requesting that the City Council initially authorize the City Manager to expend funds to provide this additional coverage at a cost not to exceed $15,000. Should costs go beyond this amount, staff will return to the City Council with an additional request.

This cost has not been budgeted. Therefore, a budget adjustment will be required. If this funding request is approved, the Finance Director will include this amount in the next quarterly budget adjustment.

Funds for Temporary Staffing Page 2 April 14, 2022

FISCAL IMPACT
This request, if approved, will have a fiscal impact to the City’s General Fund in an amount not to exceed $15,000. Any amount needed beyond this amount will require additional City Council authorization.

RECOMMENDATION
That the City Council consider the authorization of a General Fund expenditure in an amount not to exceed $15,000 to provide for temporary Planning Department staffing and authorize a budget adjustment in the amount of fifteen thousand dollars ($15,000).