Buellton City Council
November 10, 2022

CITY OF BUELLTON

CITY COUNCIL AGENDA
Regular Meeting of November 10, 2022 at 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 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 Any Council Member, the City Attorney, or the City Manager may request that an item be withdrawn from the Consent Agenda to allow for full discussion.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 October 27, 2022 Regular City Council Meeting

City Council Meeting Agenda Page 2 November 10, 2022

2. List of Claims to be Approved and Ratified for Payment to Date for Fiscal Year 2022/2023

3. Financial Report for the First Quarter Ending September 30, 2022  (Staff Contact: Finance Director Shannel Zamora)

4. Acceptance of and Issuance of a Notice of Completion for the ENGIE Energy Savings and Solar Project
 (Staff Contact: Public Works Director Rose Hess)

5. Consideration of Amendment No. 1 to Architectural Contract with Marchi & Associates
 (Staff Contact: Public Works Director Rose Hess)

6. Consideration of Proposal to Prepare Environmental Document for the 6th Cycle Housing Element Update and Contract Amendment for Civic Solutions  (Staff Contact: Planning Director Andrea Keefer)

PRESENTATIONS

7. Presentation of Boys and Girls Club Gold Cards

8. Presentation of Helen Putnam Award by Dave Mullinax – League of California Cities

PUBLIC HEARINGS (POSSIBLE ACTION)

9. Resolution No. 22-32 – “A Resolution of the City Council of the City of Buellton, California, Requesting Either Approval or Denial of a One-Year Time Extension (22-TE-04) Request for Final Development Plan (16-FDP-06) and Tentative Tract Map (TTM 31061) for the Buellton Hub Project Located at the Southern Terminus of Industrial Way on Assessor’s Parcel Number 099-690-048”  (Staff Contact: Planning Director Andrea Keefer)

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 November 10, 2022

BUSINESS ITEMS (POSSIBLE ACTION)

10. Consideration of Affordable Housing Agreement with Palm Communities for the Polo Village Project
 (Staff Contact: City Manager Scott Wolfe)

11. Direction to Staff Regarding Special Events - Enchanted Garden Holiday Lights Festival and Cowboy Christmas
 (Staff Contact: Planning Director Andrea Keefer)

12. Discussion and Direction on Options for Reducing the City’s CalPERS Pension Unfunded Accrued Liability (UAL)
 (Staff Contact: Finance Director Shannel Zamora)
CITY MANAGER’S REPORT

ADJOURNMENT
The next regular meeting of the City Council will be held on Thursday, December 8, 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 October 27, 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 Elysia Lewis, John Sanchez, Vice Mayor Dave King and Mayor Holly Sierra
Staff: City Manager Scott Wolfe, Finance Director Shannel Zamora (Via Zoom), City Clerk Linda Reid, City Attorney Greg Murphy, Public Works Director Rose Hess, and Planning Director Andrea Keefer

REORDERING OF AGENDA
None

PUBLIC COMMENTS

None

CONSENT CALENDAR

1. Minutes of October 13, 2022 Regular City Council Meeting

2. List of Claims to be Approved and Ratified for Payment to Date for Fiscal Year 2022/2023

3. Monthly Treasurer’s Report – September 30, 2022

4. Filing of an Amended 2022-23 Claim with the Santa Barbara County Association of Governments (SBCAG) for State Transit Assistance (STA) Fund 2021-22 Apportionments

5. Resolution No. 22-30 – “A Resolution of the City Council of the City of Buellton, California, Proclaiming the Continuing Need to Meet by Teleconference”

City Council Meeting Minutes Page 2 October 27, 2022

6. Acceptance of the 2021/22 Road Maintenance Project

7. Approval of Fall Fest Carnival on the Avenue of Flags 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 4-0.

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

PRESENTATIONS

None

PUBLIC HEARINGS
None

COUNCIL MEMBER COMMENTS/ITEMS
Council Member Sanchez thanked the Santa Barbara County Sheriff’s Department for patrolling Second Street during before and after school hours.

Vice Mayor King requested information on the La Lata speed survey. Staff did not have an update on the survey at this time.

Mayor Sierra thanked the Buellton Chamber of Commerce and Visitors Bureau for hosting the Candide Forum on October 16.

Vice Mayor King thanked the Buellton Chamber of Commerce for hosting the Chamber Mixer at DorWood Distillery.

WRITTEN COMMUNICATIONS
None

COMMITTEE REPORTS
Vice Mayor Sanchez announced he attended the Central Coast Water Authority (CCWA) Board meeting and provided an oral report for the record.

City Council Meeting Minutes Page 3 October 27, 2022
Mayor Sierra announced that she attended the Santa Barbara County Association of Governments (SBCAG) and Air Pollution Control District (APCD) board meetings and provided oral reports for the record.

BUSINESS ITEMS

8. Consideration of Arts & Culture Project Application: Discovery Days RECOMMENDATION:

That the City Council consider approval of $15,000 to fund the Discovery Days Project.

STAFF REPORT:

Recreation Supervisor Abello presented the staff report.

SPEAKERS/DISCUSSION:

Ashley Jenkins, Executive Director of the Santa Ynez Valley Children’s Museum discussed the group’s grant request of $15,000 for Discovery Days. Ms. Jenkins announced that Discovery Days will be held on Saturdays in June, July, and August at the Children’s Museum on the Willemsen property.

Amy Wolfslau, Buellton, questioned when Discovery Days will take place.

The City Council discussed the following issues:
• Requesting the Children’s Museum reduce their spending costs if possible • The Children’s Museum’s fundraising event is scheduled for November 5 and the open house is scheduled for November 6
DOCUMENTS:

Staff report with attachments as listed in the staff report.

MOTION:

Motion by Council Member Lewis, seconded by Council Member Sanchez, approving $15,000 to fund the Discovery Days Project and that Council will revisit funding for the Arts & Culture program if needed.

VOTE:

Motion passed by a roll call vote of 4-0.

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

City Council Meeting Minutes Page 4 October 27, 2022

9. Discussion Regarding the Community Garden located on City-Owned Property at SE Corner of Second Street and Central Avenue for Community Garden RECOMMENDATION:

That the City Council discuss the items presented and direct staff as appropriate.

STAFF REPORT:

City Manager Wolfe presented the staff report.

SPEAKERS/DISCUSSION:

Written comments were received and made part of the record from the following Buellton residents expressing support for the Buellton Community Garden (BCG) project:
• Phil and Pat Merritt
• Mary Beth Coyne Neal
• Rebecca Sutherland
• Nora Zwehl-Burke
• Barry and Diane Craig
Annie Yakutis, spoke about her support for the BCG project.

Larry Bishop, Buellton, spoke about the benefits of the BCG project and requested Council’s support for the project.

The City Council discussed the following issues:
• That the City provide water and a ¾ ” water meter, temporary signage, and waive insurance requirements until construction begins
• That BCG provide community outreach detailing how the Garden will be developed and maintained
MOTION:

Motion by Mayor Sierra, seconded by Council Member Lewis, direcing staff to move forward with the Community Garden located at the corner of Second Street and Central Avenue and that the City will provide water, a ¾” water meter, temporary signage, and waive insurance requirements until construction begins.

VOTE:

Motion passed by a roll call vote of 4-0.

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

City Council Meeting Minutes Page 5 October 27, 2022

10. Conceptual Review of the “Feedstore Mixed-Use Development” Project 545 Avenue of Flags; APNs 099-282-008/009/013 and 099-292-019
RECOMMENDATION:

That the City Council review the conceptual plans and provide direction to the Applicant regarding the project.

STAFF REPORT:

Planning Director Keefer presented the staff report.

SPEAKERS/DISCUSSION:

Kerry Moriarty, project developer spoke about the proposed project and outlined what he proposes to develop at the Feedstore on the Avenue of Flags.

Tony Cano, Agave Design Group, representing project developer Kerry Moriarty discussed the proposed mixed-use commercial-residential development project.

Brandon Mann, MB Development Company, expressed his support for consistent development on the Avenue of Flags and that the project conform to the Specific Plan requirements.

Hudson Hornick, Buellton, expressed his support for keeping open space at the project site and not installing so much concrete.

The City Council discussed the following issues:
• Building design of the proposed project being congruent with adjacent development • Concern for the loss of parallel parking, residential parking, and diagonal parking on the Avenue of Flags
• Maintaining the Feedstore’s authenticity and adding adjacent buildings in Art Deco design
DOCUMENTS:

Staff report with attachments as listed in the staff report.

DIRECTION:

The City Council provided conceptual direction to the project applicant.

11. Consideration of an Affordable Housing Agreement for the 518 Avenue of Flags – Mixed Use Development Located at 518 Avenue of Flags
RECOMMENDATION:

That the City Council consider adoption of the draft Affordable Housing Agreement for the 518 Avenue of Flags Mixed Use Development.

STAFF REPORT:

City Manager Wolfe presented the staff report.

City Council Meeting Minutes Page 6 October 27, 2022
SPEAKERS/DISCUSSION:

Brandon Mann, MB Development Company, discussed the affordable housing agreement for 518 Avenue of Flags and that the agreement will add $1,023,400 to the City’s affordable housing in-lieu account.

Ken Hira, representing Kosmont Companies, discussed the affordable housing agreement for 518 Avenue of Flags and the City’s ability to accept in-lieu payment rather than requiring affordable units to be built at 518 Avenue of Flags.

DOCUMENTS:

Staff report with attachments as listed in the staff report.

MOTION:

Motion by Council Member Lewis, seconded by Council Member Sanchez approving the Affordable Housing Agreement for 518 Avenue of Flags mixed use development.

VOTE:

Motion passed by a roll call vote of 3-0-1, with Vice Mayor King abstaining.

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

12. Resolution No. 22-31 - “A Resolution of the City Council of the City of Buellton, California, for the Purpose of Budget Amendments from Operational Changes Related to Fiscal Year 2022-23 Budget through the First Quarter Ending September 30, 2022”
RECOMMENDATION:

That the City Council adopt Resolution No. 22-31.

STAFF REPORT:

Finance Director Zamora presented the staff report.

DOCUMENTS:

Staff report with attachments as listed in the staff report.

MOTION:

Motion by Council Member Lewis, seconded by Vice Mayor King, approving Resolution No. 22-31 – “A Resolution of the City Council of the City of Buellton, California, for the Purpose of Budget Amendments from Operational Changes Related to Fiscal Year 2022- 23 Budget through the First Quarter Ending September 30, 2022”

City Council Meeting Minutes Page 7 October 27, 2022
VOTE:

Motion passed by a roll call vote of 4-0.

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 for the record.

ADJOURNMENT
Mayor Sierra adjourned the regular meeting at 8:12 p.m. The next regular meeting of the City Council will be held on Thursday, November 10, 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: November 10, 2022
Subject: List of Claims to be Approved and Ratified for Payment to Date for Fiscal Year 2022/2023
______________________________________________________________________________

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 10/15/2022 through 10/28/2022 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, 10/15/2022 through 10/28/2022, and electronic fund transfers issued for the period of 10/15/2022 through 10/28/2022 was $959,365.37.

FISCAL IMPACT
Payments made to the various vendors were consistent with the approved City’s Budget for FY 2022/23. 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 10/15/2022 through 10/28/2022.

ATTACHMENTS
Attachment 1 – Claims

CONSOLIDATED CLAIMS DISBURSEMENT

BACK-UP/SUPPORT DATA IS A V AILABLE FOR COUNCIL REVIEW IN CITY HALL The following is a list of claims for the period of October 15, 2022 through October 28, 2022 for ratification by the City Council at the November 10, 2022 City Council Meeting.

EXHIBIT A - AlP Packets processed
AlP Packet# APPKT01923
AlP Packet# APPKT01922
AlP Packet# APPKTO 1917
AlP Packet# APPKT01913
Total AlP Packets:

Utility Packet #UBPKT02907
Total of checks issued:
500.00
93,118.35
264,907.21
490,666.03
$849,191.59 (10 pages)
300.00 (1 page)
$849,491.59
EXHIBIT B - Payments via Electronic Fund Transfer (EFT) EFT Total:

Payroll processed
Staff Payroll
City Council Payroll
10/21 /2022
10/2712022
Total Payroll:

Disbursement from Capital Lease Proceeds
ENGlE SERVICES U.S. INC.

EQUITY

PROJECT ACCT
TOT AL AMOUNT OF CLAIMS:

Total Lease:
\\FILESERVERIUsersIFinance_SharedICLAIMS APPROVALSIClaims Approval 2022-2023.xlsx $25,794.79
57,612.38
1,771.73
$59,384.11
24,694.88
$24,694.88
$959,365.37

Payments via Electronic Fund Transfer (EFT):

From 10115/2022 through 10/28/2022
AFLAC
Payroll Tax - IRS
CalPERS - Classic
CalPERS - PEPRA
Payroll Tax - EDD
CDTFA
Payroll Tax - IRS
CalPERS - Classic
Total
\\FILESERVER\Users\Finance_Shared\CLAIMS APPROVALS\Claims ApprovaI2022-2023.xlsx 10118/2022
10/24/2022
10/24/2022
10/2412022
10/2412022
1012712022
10/28/2022
10/2812022
390.07
9,926.67
6,291.73
5,499.30
3,481.74

7.00 116.40

81.88 25,794.79
EXHffiITB

Check Disbursements - City Council - November 10, 2022
City of Buellton, CA By Payment Number ·
Payment Dates 10/15/2022 - 10/28/2022
Payment Payment Date Vendor # Payment Amount
Number Payable Number Description Vendor Name Account Number Project Acct Key Item Amount 43286 10/18/2022 000820 ACWA/JPIA 3,285.83
0693951 NOV 2022 - DENTAL/VISION/EAP PREMIUMS 001-401-50400 588.93 0693951 NOV 2022 - DENTAL/VISION/EAP PREMIUMS 001-402-50400 185.11 0693951 NOV 2022 - DENTAL/VISION/EAP PREMIUMS 001-403-50400 69.04 0693951 NOV 2022 - DENTAL/VISION/EAP PREMIUMS 001-420-50400 200.52 0693951 NOV 2022 - DENTAL/VISION/EAP PREMIUMS 001-511-50400 502.07 0693951 NOV 2022 - DENTAL/VISION/EAP PREMIUMS 001-558-50400 682.91 0693951 NOV 2022 - DENTAL/VISION/EAP PREMIUMS 001-565-50400 182.20 0693951 NOV 2022 - DENTAL/VISION/EAP PREMIUMS 005-701-50400 437.53 0693951 NOV 2022 - DENTAL/VISION/EAP PREMIUMS 020-601-50400 437.52 43287 10/18/2022 000509 ALAN NEEDHAM dba 30,755.00
32069 9/1/2022 - RVP - DEAD TREES REMOVAL 001-552-60258 300.00 32229 SEPT 2022 - MONTHLY LANDSCAPING 001-552-60800 19,870.00 32229 SEPT 2022 - MONTHLY LANDSCAPING 001-556-60800 4,640.00 32321 9/29/2022 - TREE/SHRUBS CLEAN-UP & REMOVAL 001-556-60250 5,945.00 43288 10/18/2022 001720 AMERICAN ASPHALT SOUTH, INC. 328,782.94 2022-763 2022-08-30 - 2021-22 ROAD MAINTENANCE PROJECT 092-320-74100 09232074100 328,782.94 43289 10/18/2022 000035 ASSOC TRANSPORTATION ENGINEERS 3,690.00 19042-00-0000009 8/16-9/15/2022 - PROF SRVCS - McMURRAY RD/HWY246 092-307-70005 09230770005 3,690.00 43290 10/18/2022 000121 BUELLTON VISITORS BUREAU 37,500.00 000121-102022 OCT 2022 - VB - MONTHLY INSTALLMENT PER CONTRACT 001-410-67790 37,500.00 43291 10/18/2022 000107 CITY OF LOMPOC 1,666.66
9963 NOV 2022 - MONTHLY TRANSIT SERVICES 027-559-67445 1,666.66 43292 10/18/2022 000115 CLINICAL LAB OF SAN BERNARDINO Inc. 180.00 989317 7/20/2022 - WTP - WATER SAMPLE TESTING 020-601-61111 30.00 990683 9/29/2022 - WTP - WATER SAMPLE TESTING 020-601-61111 150.00 43293 10/18/2022 000122 COMCAST CABLE 221.45
0207915-09132022 9/18-10/17/2022 - CCC -INTERNET SERVICES 001-410-61292 221.45 43294 10/18/2022 000176 EXCLUSIVE ALARMS INC 19S.00
011753 OCT-DEC 2022-lIB- MONITORING SECURITY SYSTEM 001-410-60800 195.00 43295 10/18/2022 000176 EXCLUSIVE ALARMS INC 174.00
011602 OCT-DEC 2022 - PLNG - MONITORING ELEC SEC SYS 001-410-60800 174.00 43296 10/18/2022 000176 EXCLUSIVE ALARMS INC 174.00
011601 OCT-DEC 2022 - CH - MONITORING SEC SYS/CElLULAR 001-410-60800 174.00 43297 10/18/2022 000176 EXCLUSIVE ALARMS INC 414.00
011694 OCT-DEC 2022 - CH/USPS-ELEC SCRTY SYS/CELl SRV 001-410-60800 414.00 43298 10/18/2022 001430 GSOLUTIONZ, INC. 1,006.32
227458 8/13-9/13/2022 - INTERMEDIATE CLOUD/VOICE SERVICES 001-401-6770S 113.92 227458 8/13-9/13/2022 -INTERMEDIATE CLOUD/VOICE SERVICES 001-410-67705 319.95 227458 8/13-9/13/2022 - INTERMEDIATE ClOUD/VOICE SERVICES 001-511-61290 190.81 227458 8/13-9/13/2022 -INTERMEDIATE CLOUD/VOICE SERVICES 001-558-67705 85.44 227458 8/13-9/13/2022 - INTERMEDIATE ClOUD/VOICE SERVICES 001-565-67705 181.25 227458 8/13-9/13/2022 -INTERMEDIATE ClOUD/VOICE SERVICES 005-701-67705 57.99 227458 8/13-9/13/2022 - INTERMEDIATE ClOUD/VOICE SERVICES 020-601-67705 56.96 10/31/20229 :15:23 AM Page 1 of 10

Check Disbursements - City Council - NO,VI!mber 10, 2022 Payment Dates: 10/15/2022 - 10/28/2022 Payment Payment Date Vendor # Payment Amount
Number Payable Number Desl:ription Vendor Name Account Number Project Acct Key Item Amount 43299 10/ 18/2022 001415 HARRINGTON INDUSTRIAL PLASTICS LLC 75.02 013C5236 10/11/2022 - WTP - MISC MAl NT/REPAIR ITEMS 020-601-60250 75.02 43300 10/18/2022 001119 Jonata-Oak Valley PTSA 425.00
001119-102022 10/;1022 - JOG-A-THON SPONSOR - GOLD LEVEL 001-410-69600 425.00 43301 10/18/2022 000881 KIMBERLY A. LeCLAIRE dba 75.00
122546 FY2022-2023 - YEARLY RENEWAL MEMBERSHIP DOT/FMCSA 001-410-60650 75.00 43302 10/18/2022 000310 MARBORG INDUSTRIES 2,021.72
5585571 7/31/2022 -11 YARD ROLL OFF RENTAL (2 UNITS) 092-706-74100 09270674100 279.00 5586345 7/ 31/2022 - STORAGE BOX MONTHLY RENT 092-706-74100 09270674100 110.00 5611086 8/30/2022 - ROLL-OFF EXCHANGE/DUMP/DISPOSAL 092-706-74100 09270674100 1,252.72 5638701 9/30/2022 - WWTP -11 YD ROLL OFF RENTAL (2 UNITS) 092-706-74100 09270674100 270.00 5639419 9/30/2022 - STORAGE BOX MONTHLY RENT 092-706-74100 09270674100 110.00 43303 10/18/2022 000326 MNS ENGINEERS, INC. 5,310.00
81371 SEPT 2022 - CITY/McMURRAY RD SIGNAL UPGRADE 092-307-70005 09230770005 5,310.00 43304
, 10/18/2022 000332 MOSS LEVY & HARTZHEIM LLP 5,000.00
33323 FY2021/22 - AUDIT SERVICES TO 9/30/2022 001-420-60021 1,666.66 33323 FY2021/22 - AUDIT SERVICES TO 9/30/2022 005-701-60021 1,666.67 33323 FY2021/22 - AUDIT SERVICES TO 9/30/2022 020-601-60021 1,666.67 43305 10/18/2022 000342 NIELSEN BUILDING MATERIALS,INC 208.28 59958 9/20/2022 - PW - TOOLS 001-558-61127 177.82
60417 9/22/2022 - PW - MISC MAINT/REPAIR ITEMS 001-558-60250 30.46 43306 10/18/2022 000350 OLIVERA'S REPAIR, INC 65.00
155396 10/13/2022 - WWTP - VEH ICLE SMOG CHECK 005-701-60270 65.00 43307 10/18/2022 000352 PG & E 67.75
80625-7-10072022 9/8-10/6/ 2022 - 202 DRYlND - UTILITIES - ELECTRIC 001-558-61241 67.75 43308 10/18/2022 001714 RAOUL & JACKIE BORDON 1,000.00
001714-10142022 10/14/ 2022 - LANDSCAPE REBATE (REPLACE CK# 46163) 001-558-74100 1,000.00 43309 10/18/2022 000405 RINCON CONSULTANTS, INC. 3,100.25 42132 6/1-8/ 31/2022 - COB GRDN APTS - TECH STUDIES 001-22416 90066-070 1,241.50 42922 9/1-10/13/2022-PLNG-COB GRDN APTS TECH STUDIES 001-22416 90066-070 1,858.75 43310 10/18/2022 000438 SANTA YNEZ VALLEY HARDWARE 293.80 000438-092022 SEPT 2022 - MISC MAINT/REPAIR ITEMS 001-558-60250 91.45 000438-092022 SEPT 2022 - MISC MATL'S/SUPPLIES 001-558-61140 73.26 000438-092022 SEPT 2022 - MISC MATL'S/SUPPLIES 005-701-61127 18.31 000438-092022 SEPT 2022 - MISC MATL'S/SUPPLIES 005-701-61140 32.67 000438-092022 SEPT 2022 - MISC MAINT/REPAIR ITEMS 005-701-61140 25.84 000438-092022 SEPT 2022 - MISC MAINT/REPAIR ITEMS 020-601-60250 52.27 43311 10/18/2022 000448 SB CO FIRE DEPARTMENT 60,879.00 M23-008 JULV-SEPT2022(Ql)-FIREFIGHTER/PARAMEDIC PER AGRMNT 001-501-60810 60,879.00 43312 10/18/2022 000S29 TRANSFIRST HEALTH & GOVERNMENT SVCS 453.67 2581151 SEPT 2022 - REC - MERCHANT FEES 001-511-60900 453.67 43313 10/18/2022 000862 TYLER TECHNOLOGIES, INC. 98.75
025-396222 7/ 1-9/ 30/2022 - UB - INSITE TRANACTION FEES 005-701-60210 49.38 025-396222 7/1-9/ 30/2022 - UB - INSITE TRANACTION FEES 020-601-60210 49.37 43314 10/18/2022 000765 VICTOR RODRIGUEZ dba 195.00
50753 10/10/ 2022 - SMOG - CA EMISSION CERT & PRE-TEST 001-558-60270 21.66 50753 10/10/2022 - SMOG - CA EMISSION CERT & PRE-TEST 005-701-60270 21.67 50753 10/10/ 2022 - SMOG - CA EMISSION CERT & PRE-TEST 020-601-60270 21.67 50754 10/10/2022 - SMOG - CA EMISSION CERT & PRE-TEST 001-558-60270 21.66 10/31/20229:15:23 AM Page 2 of 10

Check Disbursements - City Council - November 10, 2022 Payment Dates: 10/15/2022 - 10/28/2022 Payment Payment Date Vendor # Payment Amount
Number Payable Number Description Vendor Name Account Number Project Acct Key Item Amount 50754 10/10/2022 - SMOG - CA EMISSION CERT & PRE-TEST 005-701-60270 21.67 50754 10/10/2022 - SMOG - CA EMISSION CERT & PRE-TEST 020-601-60270 21.67 50756 10/10/2022 - SMOG - CA EMISSION CERT & PRE-TEST 001-558-60270 65.00 43315 10/18/2022 001552 VITAL RECORDS CONTROL (VRC) 55.71 2806959 9/1-30/2022 - SHREDDING SERVICES 001-410-60900 55.71 43316 10/18/2022 000677 WALLACE GROUP 3,296.88
57304 AUG 2022-PROF SRVCS-REG COMPLIANCE ASSIST FY21-23 005-701-60800 3,296.88 43320 10/25/2022 001497 AARON LlGGETI 50.00
001427-102022 2022-10-06 - Planning Commission Meeting 001-565-50010 50.00 43321 10/25/2022 000303 ART MERCADO 50.00
000303-102022 2022-10-06 - Planning Commission Meeting 001-565-50010 50.00 43322 10/25/2022 000122 COMCAST CABLE 246.15
0114343-09222022 9/26-10/2S/2022 - CH - INTERNET SERVICES 001-410-61292 246.15 43323 10/25/2022 000122 COMCAST CABLE 231.45
0207915-10132022 10/18-11/17/2022 - CCC -INTERNET SERVICES 001-410-61292 231.45 43324 10/25/2022 000122 COMCAST CABLE 215.50
0114343-08222022 8/26-9/25/2022 - CH - INTERNET SERVICES 001-410-61292 215.50 43325 10/25/2022 001458 EMERGENCY REPAIR DOOR SERVICE 974.08 1992 10/17/2022 - WWTP - R & R DAMAGED GATE KEYPAD 005-701-60250 974.08 43326 10/25/2022 000598 ENGEL & GRAY, INC. 8,089.15
29XOOO03 SEPT 2022 - WWTP - BIO SOLID - WASTE HANDLING 005-701-60800 8,089.15 43327 10/25/2022 001415 HARRINGTON INDUSTRIAL PLASTICS LLC 94.88 013C5246 10/12/2022 - WTP - MISC MAINT/REPAIR ITEMS 020-601-60250 94.88 43328 10/25/2022 000543 HD SUPPLY FACILITIES MAINTENANCE, LTD. 248.42 1337S7 10/S/2022 - WTP - MISC MAINT/REPAIR ITEMS 020-601-60250 248.42 43329 10/25/2022 000813 HOME DEPOT CREDIT SERVICES 3,049.85 2635-08212022 AUG 2022 - MISC MAINT/REPAIR ITEMS 001-552-60258 150.79 2635-08212022 AUG 2022 - MISC MATL'S/SUPPLlE5 001-558-61127 791.95 2635-08212022 AUG 2022 - MISC MATL'S/SUPPLIES 005-701-61127 750.92 2635-08212022 AUG 2022 - MISC MATL'S/SUPPLIES 020-601-61127 750.92 2635-09212022 SEPT 2022 - MISC MATL'S/SUPPLIES 001-558-61127 605.27 43330 10/25/2022 001173 JV Outdoor Power Equipment 299.20 12829 9/23/2022 - WWTP - EQUIPMENT REPAIR 005-701-60270 299.20 43331 10/25/2022 011306 KARLIN LADERA 400.00
011306-10182022 9/10-10/14/2022 - REC - WEIGHT ROOM STAFFING 001-511-67140 400.00 43332 10/2S/2022 00122S MARCILO SARQUILLA 50.00
001225-102022 2022-10-06 - Planning Commission Meeting 001-565-50010 50.00 43333 10/25/2022 001589 OILFIELD ENVIRONMENTAL & COMPLIANCE, INC. (OEC) 840.70 A221017 SEPT 2022 - WWTP - WATER SAMPLE TESTING 005-701-61111 840.70 43334 10/25/2022 001187 PATTY J HAMMEL 50.00
001187-102022 2022-10-06 - Planning Commission Meeting 001-565-50010 50.00 43335 10/25/2022 001721 PLANET ULTRA INC. 500.00
001721-10182022 10/18/2022 - REFUND - RVP SECURITY DEPOSIT 001-22418 500.00 43336 10/25/2022 001327 ROBERT PAUL BLOKDYK 50.00
001327-102022 2022-10-06 - Planning Commission Meeting 001-565-50010 50.00 10/31/20229:15:23 AM Page 3 of 10

Check Disbursements· City Council· November 10, 2022 Payment Dates: 10/lS/2022 • 10/28/2022 Payment Payment Date Vendor # Payment Amount
Number Payable Number Des(:ription Vendor Name Account Number Project Acct Key Item Amount 43337 10/25/2022 001S10 SANTA MARIA CALIFORNIA NEWS MEQIA INC. dba 187.D2 109598 10/20/ 2022 - Nt cPblcHrng - Time Extension The Hub 001-565-60520 187.02 43338 10/25/2022 001S10 SANTA MARIA CALIFORNIA NEWS MEDIA INC. dba 163.05 110122 10/20/ 2022 - NtcPblcHrng - Zoning Hearing 001-565-60520 163.05 43339 10/25/2022 001S10 SANTA MARIA CALIFORNIA NEWS MEDIA INC. dba 157.41 107180 10/13/ 2022-PbIcNtc-AvailibilityofEnvironmentaIDocs 001-565-60520 157.41 43340 10/25/2022 000894 Santa Ynez Valley Hotel Assn ., Inc. dba 45,946.32 000894-092022 SEPT 2022 - SYVTBID FEES 001-22160 46,884.00 CMOO0894-092022 SEPT 2022 - SYVTBID ADMIN FEES 001-442S0 (937.68) 43341 10/25/2022 000450 SB CO SHERIFF'S DEPARTMENT 201,351.00 1595 SEPT 2022 - LAW ENFORCEMENT SERVICES PER CONTRACT 001-501-60800 223,131.00 CM1595 SEPT 2022-CREDIT FOR VACANT POSITION-MOTOR DEPUTY 001-501-60800 (21,780.00) 43342 10/25/2022 001188 The Hankering Corporation 783.69 85363 10/14/ 2022 - REC - MISC EXPENSES 001-12500 233.48 85363 10/14/2022 - REC - MISC EXPENSES 001-511-67140 316.74 85363 10/14/ 2022 - REC - MISC EXPENSES 001-511-67570 233.47 43343 10/25/2022 000S56 VERIZON WIRELESS 656.57
9917652278 10/9-11/8/2022 - WIRELESS TELEPHONE SERVICES 001-410-60014 0.60 9917652278 10/9-11/8/2022 - WIRELESS TELEPHONE SERVICES 001-410-67705 50.63 9917652278 10/9-11/8/ 202:, - WIRELESS TELEPHONE SERVICES 001-511-61290 57.71 9917652278 10/9-11/8/2022 - WIRELESS TELEPHONE SERVICES 001-511-61290 33.31 9917652278 10/9-11/8/ 2022 - WIRELESS TELEPHONE SERVICES 001-558-60210 40.01 9917652278 10/9-11/ 8/ 2022 - WIRELESS TELEPHONE SERVICES 001-558-67705 143 .57 9917652278 10/9-11/8/2022 - WIRELESS TELEPHONE SERVICES 001-565-67705 50.63 9917652278 10/9-11/8/2022 - WIRELESS TELEPHONE SERVICES 005-701-67705 162.14 9917652278 10/9-11/8/2022 - WIRELESS TELEPHONE SERVICES 020-601-67705 117.97 43344 10/25/2022 000765 VICTOR RODRIGUEZ dba 65.00
50201 10/17/2022 - PW - VEHICLE SMOG CERT & PRE-TEST 001-558-60270 65.00 43345 10/25/2022 001388 VINTAGE WALK OWNERS ASSOCIATION 107.77 41862970899-SAFR 202:2/12/01 - 597 AOF #101- SPCL ASSMNT FND RSVRS 001-410-60900 107.77 43346 10/25/2022 001552 VITAL RECORDS CONTROl (VRC) 50.00 2871546 SEPT 2022 - SHREDDING SERVICES 001-410-60900 50.00 43347 10/26/2022 001111 TETRA TECH, INC. 93,118.35
51968091 SEPT 2022 - ENCROACHMENT PERMITS 025-557-60800 2,922.50 51968092 SEPT 2022 - 73 INDUSTRIAL WAY FIGUEROA 001-22416 90037-070 525.00 51968093 SEPT 2022 - 5-ACRE BLDNG AT INDUSTRIAL WAY 001-22416 90044-070 52. 50 51968094 SEPT 2022 - NETWORK AT INDUSTRIAL WAY 001-22416 90044-070 1,435.00 51968096 SEPT 2022 - WAYPOINT PLAN CHECK 001-22416 90039-070 2,565.00 51968097 SEPT 2022 - COB ENGINEERING SERVICES 001-551-60800 17,593.35 51968097 SEPT 2022 - COB ENGINEERING SERVICES 001-565-60830 1,500.00 51968097 SEPT 2022 - COB ENGINEERING SERVICES 005-701-60830 6,925.00 51968097 SEPT 2022 - COB ENGINEERING SERVICES 020-601-60830 4,305.00 51968097 SEPT 2022 - COB ENGINEERING SERVICES 025-554-60800 14,830.00 51968097 SEPT 2022 - COB ENGINEERING SERVICES 029-557-60800 2,500.00 51968097 SEPT 2022 - COB ENGINEERING SERVICES 092-220-70005 09222070005 20,732.50 51968097 SEPT 2022 - COB ENGINEERING SERVICES 092-320-71500 09232071500 6,742.50 51968098 SEPT 2022 - RIO VISTA CHEVROlET CAR WASH PLAN CHK 001-22416 80002070 280.00 51968099 SEPT 2022 - RESERVOIR NO. 2 REROOF PROJECT 092-613-70005 09261370005 6,080.00 51968100 SEPT 2022 - 220 INDUSTRIAL WAY - SAARLOOS DEV 001-22416 90072070 4,130.00 43349 10/26/2022 000379 U.S. POSTAL SERVICE 500.00
000379·102022 OCT 2022 - POSTAGE FOR WATER/SEWER BILLING 005-701-61131 250.00 10/31/20229:15:23 AM Page 4 of 10

Check Disbursements - City Council - November 10, 2022
Payment Payment Date
Number Payable Number
000379-102022
10/31/20229:15:23 AM
Vendor #
Description Vendor Name
OCT 2022 - POSTAGE FOR WATER/SEWER BILLING
Account Number
020-601-61131
Payment Dates: 10/15/2022 - 10/28/2022
Project Acct Key
Payment Amount
Item Amount
250.00
Payment Total: 849,191.59

Check Disbursements - City Council - NO'vember 10, 2022 Fund
001 - General Fund
005 - Sewer Fund
020 - Water Fund
025 - Gas Tax Fund
027 - Local Transportation Fund
029 - Transportation Planning
Fund Summary
092 - Capital Improvement Proj Fund
10/31/20229:15:23 AM
Account Nurnber
001-12500
001-22160
001-22416
001-22418
001-401-50400
001-401-67705
001-402-50400
001-403-50400
001-410-60014
001-410-606S0
001-410-60800
001-410-60900
001-410-61292
001-410-67705
001-410-67790
001-410-69600
001-420-50400
001-420-6002l
001-44250
001-501-60800
001-501-60810
001-511-50400
001-511-60900
001-511-61290
001-511-67140
001-511-67570
001-551-60800
001-552-60258
001-552-60800
001-556-60250
001-556-60800
001-558-50400
001-558-602.10
001-558-602.50
001-558-60270
001-558-61127
001-558-61140
001-558-61241
001-558-67705
001-558-741.00
001-565-50010
001-565-50400
001-565-60S20
001-565-60830
001-565-67705
005-701-50400
Account Summary
Account Name
Grand Total:

Other Receivables - Due from Solvang Joint Events
SYVTBID Payable
Developer Deposit
Special Event Deposit
Medical Benefit
Telephone
Medical Benefit
Medical Benefit
Emergency Operations
Membership & Publications
Contract Services
Miscellaneous
Internet Access/ Website Maint
Telephone
Visitors Bureau
Undesignated Mise Support
Medical Benefit
Audit
Miscellaneous
Contract Services
Contract Services - Fire Dept
Medical Benefit
Miscellaneous
Telephone/Internet
Buellton Recreation Program
Recreation Program SO/SO
Contract Services
Maintenance/Repair-River View
Contract Services
Maintenance/Repair
Contract Services
Medical Benefit
Computer Maintenance &Software
Maintenance / Repair
Maintenance - Vehicles
Tools
Operational Supplies
Utilities - Electric
Telephone
Improvements
Planning Commission Salaries
Medical Benefit
Advertising - Legal
Contract Services-Engineering
Telephone
Medical Benefit
Payment Dates: 10/15/2022 - 10/28/2022
Report Summary
Payment Amount
421,599.63
23,984.80
8,328.34
17,752.50
1,666.66
2,500.00
373,359.66
849,191.59
Pa'vment Amount
233.48
46,884.00
12,087.75
500.00
588.93
113.92
185.11

69.04 0.60

75.00 957.00
213.48
914.55
370.58
37500
425.00
200.52
1,666.66
(937.68)
201,351.00
60,879.00
502.07
453.67
281.83
716.74
233.47
17,593.35
450.79
19,870.00
5,945.00
4,640.00
682.91

40.01 121.91
173.32
1,575.04

73.26 67.75
229.01
1,000.00
250.00
182.20
507.48
1,500.00
231.88
437.53

Check Disbursements - City Council - November 10, 2022
10/31/20229:15:23 AM
Account Number
005-701-60021
005-701-60210
005-701-60250
005-701-60270
005-701-60800
005-701-60830
005-701-61111
005-701-61127
005-701-61131
005-701-61140
005-701-67705
020-601-50400
020-601-60021
020-601-60210
020-601-60250
020-601-60270
020-601-60830
020-601-61111
020-601-61127
020-601-61131
020-601-67705
025-554-60800
025-557-60800
027-559-67445
029-557-60800
092-220-70005
092-307-70005
092-320-71500
092-320-74100
092-613-70005
092-706-74100
Project Account Key
"None"
09222070005
09230770005
09232071500
09232074100
09261370005
09270674100
80002070
90037-070
90039-070
90044-070
90066-070
90072070
Account Summary
Account Name
Audit
Computer Maintenance &Software
Maintenance / Repair
Maintenance - Vehicles
Contract Services
Contract Services-Engineering
Chemicals / Analysis
Tools
Postage
Operational Supplies
Telephone
Medical Benefit
Audit
Computer Maintenance &Software
Maintenance / Repair
Maintenance - Vehicles
Contract Services-Engineering
Chemicals / Analysis
Tools
Postage
Telephone
Contract Services
Contract Services
Lompoc- Wine Country Express
Contract Services
Design and Permitting
Design and Permitting
Project Management and Inspection
Construction/Improvements
Design and Permitting
Construction and Improvements
Project Account Summary
Willemsen Parking Lot
McMurray Road Widening/TS (13/14)
Road Maintenance Project (21/22)
Road Maintenance Project (21/22)
Reservoir No. 2 Reroof Project
WWTP Facilit ies Improvements
390 E Hwy 246 (Rio Vista Chev)
Fig Mountain Brewing
Waypoint
The Industrial Network
Buellton Garden Apt 10 McMurray
220 Industrial Way (Saarloos)
Grand Total:

Grand Total:

Payment Dates: 10/15/2022 - 10/28/2022
Payment Amount
1,666.67

49.38 974.08
407.54
11,386.03
6,925.00
840.70
769.23
250.00

58.51 220.13
437.52
1,666.67

49.37 470.59

43.34 4,305.00
180.00
750.92
250.00
174.93
14,830.00
2,922.50
1,666.66
2,500.00
20,732.50
9,000.00
6,742.50
328,782.94
6,080.00
2,021.72
849,191.59
Payment Amount
463,744.18
20,732.50
9,000.00
6,742.50
328,782.94
6,080.00
2,021.72
280.00
525.00
2,565.00
1,487.50
3,100.25
4,130.00
849,191.59

Check Disbursements - City Council - November 10, 2022
City of Buellton, CA
Vendor Name Payment Number Post Date
Fund: 001 - General Fund
Department: 410 - NON-DEPARTMENTAL
EXCLUSIVE ALARMS INC 43294 10/01/2022
EXCLUSIVE ALARMS INC 43295 10/01/2022
EXCLUSIVE ALARMS INC 43296 10/01/2022
EXCLUSIVE ALARMS INC 43297 10/01/2022
Department: 501- PUBLIC SAFETY - POLICE/FIRE
SB CO FIRE DEPARTMENT 43311 09/30/2022
SB CO SHERIFF'S DEPARTMENT 43341 09/30/2022
SB CO SHERIFF'S DEPARTMENT 43341 09/30/2022
Department: 551- STORM WATER
TETRA TECH, INC. 43347 09/30/2022
Department: 552 - PUBLIC WORKS - PARKS
ALAN NEEDHAM dba 43287 09/25/2022
Department: 556 - PUBLIC WORKS - LANDSCAPE MAINTENANCE
ALAN NEEDHAM dba 43287 09/25/2022
Department: 565 - PLANNING
TETRA TECH, INC. 43347 09/30/2022
Fund: 005 - Sewer Fund
Department: 701- WASTEWATER
WALLACE GROUP 43316 08/31/2022
ENGEL & GRAY, INC. 43326 09/30/2022
TETRA TECH, INC. 43347 09/30/2022
10/31/2022 10:27:53 AM
Contract Services Detail
Payment Dates 10/15/2022 - 10/28/2022
Description (Item) Acct Number
OCT-DEC 2022-LlB- 001-410-60800

MONITORING SECURITY
SYSTEM
OCT-DEC 2022 - PLNG - 001-410-60800

MONITORING ELEC SEC SYS
OCT-DEC 2022 - CH - 001-410-60800

MONITORING SEC
SYS!CELLULAR
OCT-DEC 2022 - CH/USPS-ELEC 001-410-60800

SCRTY SYS/CELL SRV
Department 410 - NON-DEPARTMENTAL Total:

JULY-SEPT2022(Ql)- 001-501-60810

FIREFIGHTER/PARAMEDIC PER
AGRMNT
SEPT 2022 - LAW 001-501-60800

ENFORCEMENT SERVICES PER

CONTRACT
SEPT 2022-CREDIT FOR 001-501-60800

VACANT POSITION-MOTOR
DEPUTY
Department 501- PUBLIC SAFETY - POLICE/FIRE Total:

SEPT 2022 - COB

ENGINEERING SERVICES
001-551-60800
Department 551 - STORM WATER Total:

SEPT 2022 - MONTHLY

LANDSCAPING
001-552-60800
Department 552 - PUBLIC WORKS - PARKS Total:

SEPT 2022 - MONTHLY

LANDSCAPING
001-556-60800
Department 5S6 - PUBLIC WORKS - LANDSCAPE MAINTENANCE Total:

SEPT 2022 - COB

ENGINEERING SERVICES
001-565-60830
Department 565 - PLANNING Total:

Fund 001 - General Fund Total:

AUG 20n-PROF SRVCS-REG 005-701-60800
COMPLIANCE ASSIST FY21-23
SEPT 2022 - WWTP - BID 005-701-60800

SOLID - WASTE HANDLING
SEPT 2022 - COB 005-701-60830

ENGINEERING SERVICES
Department 701- WASTEWATER Total:

Fund 005 - 5ewer Fund Total:

Amount
195.00
174.00
174.00
414.00
957.00
60,879.00
223,131.00
(21,780.00)
262,230.00
17,593.35
17,593.35
19,870.00
19,870.00
4,640.00
4,640.00
1,500.00
1,500.00
306,790.35
306,790.35
3,296.88
8,089.15
6,925.00
18,311.03
18,311.03
18,311.03

Contract Services Detail
Vendor Name Payment Number
Fund: 020 - Water Fund
Department: 601- WATER
TETRA TECH, INC. 43347
Fund: 025 - Gas Tax Fund
Department: 554 - TRAFFIC SMETY
TETRA TECH, INC. 43347
Department: 557 - PUBLIC WORKS - ENGINEERING
TETRA TECH, INC. 43347
Fund: 029 - Transportation Planning
Department: 557 - PUBLIC WOIRKS - ENGINEERING
TETRA TECH, INC. 43347
10(31(2022 10:27:53 AM
Post Date
09/30/2022
09/30/2022
09/30/2022
09/30/2022
Payment Dates: 10/15/2022 - 10/28/2022
Description (Item) ,
SEPT 2022 - COB

ENGINEERING SERVICES
Acct Number
020-601-60830
De~,artment 601- WATER Total:

Fund 020 - Water Fund Total:

SEPT 2022 - COB

ENGINEERING SERVICES
025-554-60800
Department 554 - TRAFFIC SAFETY Total:

SEPT 2022 - ENCROACHMENT 025-557-60800

PERMITS
Department 557 - PUBLIC WORKS - ENGINEERING Total:

Fund 025 - Gas Tax Fund Total:

SEPT 2022 - COB

ENGINEERING SERVICES
029-557-60800
Department 557 - PUBLIC WORKS - ENGINEERING Total:

Fund 0:19 - Transportation Planning Total:

Grand Total:

Amount
4,305.00
4,305.00
4,305.00
4,305.00
14,830.00
14,830.00
2,922.50
2,922.50
17,752.50
17,752.50
2,500.00
2,500.00
2,500.00
2,500.00
349,658.88

Contract Services Detail
10/31/2022 10:27:53 AM
Fund
001 - General Fund
005 - Sewer Fund
020 - Water Fund
025 - Gas Tax Fund
029 - Transportation Planning
Account Number
001-410-60800
001-501-60800
001-501-60810
001-551-60800
001-552-60800
001-556-60800
001-565-60830
005-701-60800
005-701-60830
020-601-60830
025-554-60800
025-557-60800
029-557-60800
Fund Summary
Grand Total:

Account Summary
Account N
Contract Services
Contract Services
Contract Services - Fire Dept
Contract Services
Contract Services
Contract Services
Contract Services-Engineering
Contract Services
Contract Services-Engineering
Contract Services-Engineering
Contract Services
Contract Services
Contract Services
Grand Total:

Project Account Summary
Project Account Key
"None"
Grand Total:

Payment Dates: 10/15/2022 - 10/28/2022
Report Summary
Payment Amount
306,790.35
18,311.03
4,305.00
17,752.50
2,500.00
349,658.88
Payment Amount
957.00
201,351.00
60,879.00
17,593.35
19,870.00
4,640.00
1,500.00
11,386.03
6,925.00
4,305.00
14,830.00
2,922.50
2,500.00
349,658.88
Payment Amount
349,658.88
349,658.88

•
City of Buellton, CA
.j
UBPKT02907 - Refunds 01 UBPKT02905 Regular
Account
03-18500-003
09-10400-008
10-04700-002
Total Refunds: 3
Name Date Check #
SANDPIPER PROPERTY MANAGEMENT 10/25/2022 43317
WEST, LOUISE AND JAMES 10/25/2022 43318
ANTOVA, DIANA AND KROUM 10/25/2022 43319
Total Refunded Amount:

Revenue Code -------,--- 996 - UNAPPLIED CREDITS
Account Number Account Name
Fund: 020 - WATER FUND
020-10000
020-22420
Fund: 999 - POOLED CASH
999-10001
999-27000
Claim On Pooled Cash
Unapplied Credits
Pooled Cash - General Checking
Due To Other Funds
Amount
100.00
100.00
100.00
300.00
.j
Code
Amount - ------- -----
Revenue Total:
020 Total:
999 Total:
300.00
300.00
Posting Amount
-300.00
300.00

0.00 Distribution Total:
-300.00
300.00

0.00 0.00
10/25/202211:32:38 AM
Refund Check Register
Refund Check Detail
Rec t __ mount _ Typ~
100.00 Generated From Billing
100.00 Deposit
100.00 Deposit
Revenue Code Summary
General Ledger Distribution
Posting Date: 10/25/2022
1FT
Yes
Yes

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: November 10, 2022
Subject: Financial Report for the First Quarter Ending September 30, 2022 ______________________________________________________________________________

BACKGROUND
Four times each year, City staff completes a comprehensive analysis of City finances, including projected fund balances, revenues to date, departmental budgets, expenditures, and encumbrances. This financial report focuses on the First Quarter of FY 2022-23 and summarizes the quarter ended September 30, 2022 for the General Fund, Enterprise Funds and Capital Improvement Fund.

Attachment 1 provides an overview of the current economic outlook on the local, state and national levels; General Fund revenues, expenditures, projected fund balances; and activity in the Enterprise Funds. Though this information is not audited and does not contain all the usual periodic adjustments, accruals or disclosures, the information does provide a picture of the City’s activity and developing financial trends. Attachment 2 focuses on the status of the Capital Improvement Budget at the end of the quarter ended September 30, 2022.

FISCAL IMPACT
The Interim financial statement provides the community with an understanding of the financial activity of the City’s primary funds.

RECOMMENDATION
That the City Council receive and file the First Quarter Financial Report.

ATTACHMENTS
Attachment 1 - Quarterly Financial Report for the period September 30, 2022 Attachment 2 - Quarterly Capital Improvement Project Report for the period ending September 30, 2022

Unaudited Financial Data
Quarterly Financial Report –First Quarter Ending September 30, 2022 Page 1

CITY OF BUELLTON

QUARTERLY FINANCIAL REPORT
First quarter ending September 30, 2022
November 10, 2022
Overview
The purpose of this financial report is to provide
financial information for the City of Buellton. This
report focuses on the First quarter of fiscal year
2022/23 and covers the period July 1, 2022 through
September 30, 2022. The report is presented
quarterly and concentrates on the General Fund and
Enterprise Funds. The quarterly financial report
presents the City’s financial position, considers
economic factors and highlights trends based on the
City’s budget versus what actually occurred during
the period. A discussion of other economic factors
provides a means of comparing the local economy
against larger economic events that may affect the
City of Buellton. This quarterly financial report is a
valuable tool to the Council, staff and general public.

U.S. Economy
The United States Economy continues to send mixed
signals as some believe a recession is looming.

Speculation of a recession is due to the continued
interest rate hikes set by the U.S. Federal Reserve to
combat inflation. In contrast, a stronger than usual
job market signals the economy is not heading to a
recession.

Gross domestic product, or GDP, grew at an annual
rate of 2.6 percent in the second quarter of 2022.

The increase in GDP reflected increases in exports,
consumer spending, nonresidential fixed
investments, federal government spending and
state and local government spending. The growth
was offset with decreases in residential fixed
investments and private inventory investment.

The increase in exports reflected increases in both
goods and services. Within exports of goods, the
leading contributors to the increase were petroleum
and products as well as other nondurable goods,
and nonautomotive capital goods. Within exports of
services, the increase was led by travel and financial
services. Within consumer spending, an increase in
services (led by health care and "other" services)
was partly offset by a decrease in goods (led by
motor vehicles and parts as well as food and
beverages). Within nonresidential fixed investment,
increases in equipment and intellectual property
products were partly offset by a decrease in
structures. The increase in federal government
spending was led by defense spending. The increase
in state and local government spending primarily
reflected an increase in compensation of state and
local government employees.

According to the BLS, the consumer price index (CPI)
for all items over the last 12 months rose 8.2
percent. Increase in shelter, food and medical care
indexes were the largest contributors to the
increase. The increases were partly offset by a 4.9
percent decline in the gasoline index. The all items
less food and energy index rose 6.6 percent over the
last 12 months. The energy index increased 19.8
percent for the 12 months ending September. The
food index increased 11.2 percent over the last year.

According to the Bureau of Labor Statistics(BLS), the
national unemployment rate in September 2022
was 3.5 percent. Total nonfarm payroll employment
rose by 263,000. Notable job gains occurred in
leisure and hospitality, and in health care. Within
the industry, employment in food services and
drinking places rose by 60,000 in September.

Employment in leisure and hospitality is below its
pre-pandemic February 2020 level by 1.1 million, or

6.7 percent. Employment in health care rose by
60,000 and has returned to its February 2020 level.

State Economy
According to the Employment Development
Department (EDD), California’s unemployment rate

Unaudited Financial Data
Quarterly Financial Report –First Quarter Ending September 30, 2022 Page 2

fell to 3.9 percent in September 2022, the lowest on
record since 1976, and the state added 6,500
nonfarm jobs. California has regained 99.1 percent
of the 2.75 million nonfarm jobs lost during March
and April of 2020 due to the COVID-19 pandemic.

September marked the 12th consecutive month of
labor gains, which totals a 712,600 job gain over the
year. Five of California’s eleven industry categories
experienced an increase in month-over change.

Those industries are: Education and Health Services,
Leisure and Hospitality, Other Services and
Professional and Business Services. The industry
with the largest month-over loss is a decrease in
Government. The decrease is due to the difficulty in
local government hiring.

According to the BLS, CPI in California’s Los Angeles
area in September 2022, increased 7.8 percent from
a year ago. Food prices rose 9.7 percent and energy
prices increased 22.0 percent, largely the result of
an increase in the price of gasoline. CPI for all items less food and energy increased 6.3 percent over the
year. Factors contributing to the increase included
new and used motor vehicles (15.2 percent),
medical care (6.8 percent), and shelter (5.4
percent).

According to HDL, rapidly increasing mortgage rates
slowed California home sales in the third quarter
ending September 2022. Homes sales continue to
decline month-to-month. The statewide median
home price was $821,680, down 2.1 percent from
August and up 1.6 percent from September 2021.

Although the median price continued to increase on
a year-over-year basis, the growth rate remained
very mild compared to what was experienced earlier
this year.

City of Buellton
The City’s General Fund ended the first quarter of
2022/23 with about $11.7 Million in Cash Balance.

Current revenue is 15.81 percent of budget
projections while current expenditures are at 21.68
percent of budget.

The City is heavily reliant on sales tax and transient
occupancy taxes (TOT) which were the two revenue
sources hardest hit by the pandemic. During the
prior fiscal year FY 2021-22, the City of Buellton
received record breaking TOT and sales tax revenue.

The City’s hotel occupancy rates continue to
experience similar rates to pre-pandemic levels and
are expected to be similar to the prior fiscal year
contributing to stable TOT revenue in the current
fiscal year. The growth in sales tax from the prior
fiscal year contributed to recovery of lost revenue
from FY 2020-21. The actual sales tax revenue in FY
2021-22 is the new benchmark and is expected to
grow at a steady pace.

The Water and Water Capital Fund ended the first
quarter with a Fund Balance of about $8.1 Million
and $4.8 Million in cash. Water Fund Operating
revenues ended the first quarter at 29.0 percent
while operating expenses were at 17.0 percent.

Water capital expenses through the first quarter are
at 20.0 percent of budget.

The Sewer Fund ended the first quarter with a Fund
Balance of about $3.5 Million and $2.1 Million in
cash. Wastewater operating revenue ended the first
quarter at 28.0 percent while expenses were at 18.0
percent. Wastewater capital expenses through the
first quarter are at 2.0 percent of budget.

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Quarterly Financial Report –First Quarter Ending September 30, 2022 Page 3

GENERAL FUND
General Fund Balance
Table 1 below shows that with 25 percent of the fiscal year complete, revenues are within projections at about 16 percent while expenditures are below budget at about 22 percent of appropriations. “Revenue versus budget” gaps are explained in the next section.

General Fund - Fund Balance Original Budget Current Budget Actual Percent Fund Balance at Start of Year $ - $ - $ 11,981,084
Revenues* 10,396,137 12,592,504 $ 1,990,278 15.81%
Expenditures* (9,535,762) (11,303,473) $ (2,450,557) 21.68% Fund Balance at End of Quarter $ 11,520,804
Change in Fund Balance 860,375 1,289,031 $ (460,280)
* Includes transfers for Capital Improvement Projects
Table 1: General Fund Balance
Table 2 below provides summary comparison information on revenues and expenditures through the quarter ending September 30, 2022 versus the prior year quarter ending September 30, 2021.

Q1 FY 2022-23 Q1 FY 2021-22
Increase
(Decrease) Percent
Revenues:

Taxes $ 1,838,307 $ 1,845,622 $ -0.40% (7,315)
Fees and Permits 9,685 8,770 $ 10.43% 915
Fines and Penalties 1,906 2,140 $ -10.94% (234)
Charges for Current Services 32,446 35,295 $ -8.07% (2,849) Use of Monies and Properties 31,549 12,770 $ 147.05% 18,778 Revenue from Other Agencies 72,690 83,898 $ (11,209) -13.36% Other Revenue* 3,696 143,581 $ (139,885) -97.43%
Total Revenue $ 1,990,278 $ 2,132,076 $ (141,798) -6.65% Expenditures:

Employee Services $ 496,506 $ 503,471 $ (6,965) -1.40%
Operating and Maintenance $ 1,867,891 $ 1,822,075 $ 45,816 2.45% Transfers for Capital Outlay $ 79,051 $ 471,233 $ (392,182) -496.11% Minor Capital $ 7,110 $ 4,194 2,916 41.02%
Total Expenditures $ 2,450,557 $ 2,800,972 (350,415) -14.30% Change in Fund Balance $ (460,280) $ (668,896) 208,617 -31.19% Table 2: Previous Year Comparison
* Misc. Revenue and Cost Reimbursements

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Quarterly Financial Report –First Quarter Ending September 30, 2022 Page 4

Total revenues through the first quarter are $141,798 (6.65%) lower than the previous fiscal year during the same period. Total expenditures are $350,415(14.30%) lower than the previous fiscal year.

The revenue category with the largest increase is the “Use of Monies and Properties” category. Revenue from this category is $18,778 (147.05%) higher than last year’s first quarter. The increase is due to revenue from the lease of property to AT&T for a cell phone tower. The lease agreement began in spring 2022 and is expected to generate $30,000 in additional annual rental revenue. Increases in rent revenue are offset by unrealized losses in the City’s investment portfolio.

The revenue category with the largest decrease is “Other Revenue”. Revenue from this category is $139,885 (97.43) lower than the previous year’s quarter. This category recognizes miscellaneous revenue such as revenue from Chargepoint, SYVTBID administration fees and police reports, and other one-time revenues. Last fiscal year, the City had an outstanding note receivable in the amount of $140,000 that was paid off. Through the current fiscal year’s first quarter, the City has recorded steady revenue from miscellaneous revenue sources.

The revenue category with the second largest decrease in revenue is “Revenue from Other Agencies” category.

Revenue from this category is $11,209 (13.3) lower than the previous year’s quarter.

Total General Fund expenditures are $350,415 (14.30%) less compared to the prior fiscal year during the same period. The majority of the decrease in General Fund expenditures is in the Transfer for Capital Outlay category.

Last fiscal year, the majority of those expenditures were for the ENGIE energy project and completion of road maintenance project FY 2020/21. Capital improvement projects (CIP) currently in progress and others not yet started are carried over to the new fiscal year. General Fund CIP expenditures through September 30, 2022 are $79,051 and are as follows:
 Willemsen Parking Lot YTD expenditure $36,302
 Willemsen House renovation YTD expenditure $10,827
 McMurray Road Widening YTD expenditure $22,916
 Road Maintenance Project FY 2021/22 YTD expenditure $9,004 Employee services decreased $6,965 (1.40%) from the prior year. The decrease is due to the vacant full-time position in the Planning Department for an Associate/Assistant Planner. Currently, the City employes a parttime Assistant Planner.

General operating and maintenance expenditures increased $45,816 (2.45%) compared to the prior fiscal year.

The increase is mostly due to the normal increase in cost of goods and services. Current fiscal year expenditures are consistent with the prior year operaring expenditures. The increase in Minor Capital was the result of the the aquisiton of new phones, cameras, and headsets for City employees.

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Quarterly Financial Report –First Quarter Ending September 30, 2022 Page 5

Top Five Revenues
*Other Revenues include charges for current Park and Recreation Services, Grants, Interest, and Cost Reimbursements.

Sales Tax
At the end of the first quarter, the City received 15 percent of the total projected Sales Tax revenue. Payments are recorded when received and applied to the corresponding month of sales; usually payment is received from the State of California two months after the sales tax is collected. Revenue from sales tax has been received through August 2022. Sales tax revenue fluctuates each month in conjunction with seasonal flows.

Transient Occupancy Tax (TOT)
TOT revenue is a major component of the City’s General Fund. TOT payments for the reporting period are due on the 20th of the following month and cause revenue streams to lag one month. The City received 36 percent of anticipated revenues at the end of the first quarter. Higher occupancy rates and higher hotel prices contribute to the increase, as the City receives 12 percent of the total taxable rent collected from each hotel within the City.

Property Tax
The City’s property tax revenues are at intervals set by the Santa Barbara County Auditor-Controller, usually in December and April. Property tax is at less than 1 percent of projected revenue and consists of property transfer tax. The City’s ongoing share of property tax is projected to grow at a steady pace as the current housing market conditions remain stable.

Property Tax in Lieu of Motor Vehicle License Fee (MVLF Swap) Payments from the Santa Barbara County Auditor-Controller are received throughout the year, usually January and June. This revenue is trending upwards based on historic receipts. MVLF fees are expected to be within budget by the end of the fiscal year.

Franchise Fees
Franchise fees are received monthly, quarterly and annually. The majority of the City’s Franchise Fees are collected from Marborg Industries, the City’s solid waste service provider. Other franchise fees are received from Comcast, PG&E and SoCal Gas. Franchise fees ended the quarter at 14 percent of revenue projections.

Comcast’s 2022 1st Quarter franchise payment is outstanding and usually received in October/November.

Top Five Revenues
Original
Budget
Current
Budget YTD Actual Percent
Sales Tax $ 2,889,896 $ 3,100,000 $ 474,739 15%
Transient Occupancy Tax 2,913,485 3,600,000 1,308,293 36% Property Tax 1,772,358 1,832,822 7,805 0%
MVLF Swap 563,107 584,895 - 0%
Franchise Fees 314,430 330,000 47,470 14%
Other Revenues* 550,597 602,697 151,971 25%
Total Revenues $ 9,003,873 $ 10,050,414 $ 1,990,278 20% Use of Reserves 1,392,264 2,542,090 - 0%
Total Funding Sources $ 10,396,137 $ 12,592,504 $ 1,990,278 16% Table 3

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Quarterly Financial Report –First Quarter Ending September 30, 2022 Page 6

Expenditures
Table 4 below summarizes operating costs by department. As of September 30, 2022, or 25 percent of the year expended, the General Fund ended the fiscal year at 22 percent expended (including CIP). Actual General Fund expenditures were approximately $2.45 Million. Almost all Budget Units ended the first quarter within budget with the exception of Non-Departmental, Library and Recreation.

Department Expenditures
Adopted
Budget
Current
Budget YTD Actual % Expended
City Council 142,827 159,793 38,965 24%
City Manager 298,506 316,323 72,316 23%
City Clerk/Human Resources 137,459 148,692 32,970 22%
City Attorney 200,000 200,000 23,075 12%
Non-Departmental 1,148,251 1,254,616 594,784 47%
Finance 212,531 216,760 46,734 22%
Police and Fire 2,859,337 2,867,351 666,343 23%
Library 198,379 202,379 195,942 97%
Recreation 629,503 661,810 203,117 31%
Street Lights 56,369 56,369 13,390 24%
Storm Water 339,214 246,100 45,331 18%
Public Works - Parks 446,819 569,725 122,769 22%
Public Works - Landscape 170,325 167,650 44,061 26%
Public Works - General 751,575 766,630 152,455 20%
Planning (Comm Dev) 552,403 842,065 119,253 14%
Transfer to CIP Fund 92 1,392,264 2,627,210 79,051 3%
Total All Departments 9,535,762 11,303,473 2,450,557 22% Table 4: General Fund Expenditures by Department
The Non-Departmental budgetary unit includes one-time annual payments paid during the first quarter. Those annual payments include: Property and liability insurance, Worker’s Compensation Insurance, CalPERS Accrued Unfunded Liability (UAL), support for community organizations and support for the Buellton Senior Center.

These annual payments amount to approximately 60 percent of the total year-to-date expenditures. Other significant expenditures in Non-Departmental include a quarterly payment for Animal Control Services with the Santa Barbara County and contract services with the Buellton Visitors Bureau.

The City of Buellton contracts with the City of Goleta for Library services. The annual cost of providing library services is paid as a lump-sum in July causing the Library Department to nearly meet its budget at the end of the first quarter. The Library Department is expected to remain within budget at the end of the fiscal year.

The Recreation budgetary unit includes the City’s contribution towards Art and Culture projects. The City has allocated $54,069 towards Arts and Culture this year. As of the first quarter, the City has distributed $20,000 which is about 37 percent of the available funding for Arts and Culture.

Major Expenditure Variances
Table 5 and Figure 1 show General Fund operating costs and minor capital expenditures summarized by type.

With 25 percent of the fiscal year completed, two of the budget categories exceeds budget projections.

Top Five Revenues for the City of Buellton’s General Fund are Sales Tax, Property Tax, Transient Occupancy Tax (TOT), Motor Vehicle License Fee (MVLF) and Franchise Fees. These revenues account for about 94% of total General Fund Revenues.

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Quarterly Financial Report –First Quarter Ending September 30, 2022 Page 7

Expenditures By Type
Original
Budget
Current
Budget YTD Actual
% of Total
Expenditures % Expended
Staffing 2,123,013 2,191,329 496,506 20.3% 22.7%
Contract Services 4,532,692 4,916,246 1,196,652 48.8% 24.3% Telecomm and Utilities 341,113 353,302 111,798 4.6% 31.6% Supplies and Materials 27,984 28,141 6,087 0.2% 21.6%
Repair and Maintenance 261,804 304,700 40,408 1.6% 13.3% Transfer to Other Funds 1,417,745 2,642,145 79,051 3.2% 3.0% Other Operating Costs 795,411 822,549 512,947 20.9% 62.4% Minor Capital 36,000 45,061 7,110 0.3% 15.8%
Total by Type 9,535,762 11,303,473 2,450,557 100.0% 21.7% Table 5: Expenditure Categories
Figure 1
The top three spending categories are: Contract Services, Staffing, and Other Operating costs. Contract Services include services for Police, Fire Department, Legal Services, Engineering, Landscaping Services, Visitor’s Bureau and other services. Staffing comprises 20.3 percent of General Fund expenditures.

The Other operating cost category represents 20.9 percent of expenditures. Examples of costs in this category are annual payments for Property, liability and worker’s comp insurance, CalPERS Accrued Unfunded Liability (UAL), support for community organizations and support for the Buellton Senior Center. This cost category also includes expenditures incurred for Buellton Recreation programs and Art and Culture Programs.

A Telecomm and Utilities overages are due to the cost of electricity. At the time the budget was adopted, it was assumed that the City’s energy project would be complete resulting in budget savings. By the end of the first quarter, the project is still outstanding. Staff will monitor the monthly electricity cost and adjust the budget if needed at the next budget amendment cycle.

Staffing, 20.26%
Contract Services,

48.83%
Telecomm and
Utilities, 4.56%
Supplies and
Materials, 0.25%
Repair and
Maintenance,

1.65%
Transfer to Other
Funds, 3.23% Other Operating
Costs, 20.93%
Minor Capital,

0.29%
Expeditures By Type

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Quarterly Financial Report –First Quarter Ending September 30, 2022 Page 8

Figure 2
General Fund Trend
Figure 2 illustrates the Quarterly General Fund Revenue versus Expenditure Trend. As illustrated in the figure, revenue cash flows tend to lag a couple of quarters and usually exceed expenditures by the end of the fiscal year. Over the last few years, both revenue and expenditures have been increasing at a consistent pace.

FY 2019/20 Quarter 4 is an outlier with revenue loss that resulted from the Stay-at-Home order that started in March 2020. The City experienced significant revenue loss in sales tax and TOT tax. Expenditures in that same quarter were higher than the previous year due to the acquisition of the Willemsen Property in May 2020.

$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
FY 19-20 Q1FY 19-20 Q2FY 19-20 Q3FY 19-20 Q4FY 20-21 Q1FY 20-21 Q2FY 20-21 Q3FY 20-21 Q4FY 21-22 Q1FY 21-22 Q2FY 21-22 Q3FY 21-22 Q4FY 22-23 Q1 Quarterly Revenue vs. Expenditures
Revenue Expenditures

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Quarterly Financial Report –First Quarter Ending September 30, 2022 Page 9

ENTERPRISE FUNDS
The Enterprise Fund Balance and Statement of Net Position for the first quarter of Fiscal Year 2022-23 are shown below.

Fund Balance Summary
Enterprise Fund Balance Water Water Capital Wastewater
Wastewater
Capital
Beginning Fund Balance $ 7,548,763 $ 367,066 $ 3,344,616 $ 207,540 Operating Revenue & Transfers 779,028 - 342,209 -
Operating Expenses & Transfers (428,088) (101,952) (331,246) (10,711) Profit(Loss) $ 350,940 $ (101,952) $ 10,963 $ (10,711)
Ending Fund Balance $ 7,899,703 $ 265,114 $ 3,355,578 $ 196,828 Change in Fund Balance 350,940 (101,952) 10,963 (10,711) Table 6 Note: Operating expenses exclude depreciation and include transfers for CIPs.

Table 6 illustrates the ending Fund Balance of each Enterprise Fund. The change in Fund Balance is attributed to the excess or deficit of revenue over expenses. Table 7 is the Statement of Net Position, illustrating total assets minus total liabilities for the period.

Statement of Net Position Water Water Capital Water Funds Total Wastewater
Wastewater
Capital
Wastewater
Funds Total
ASSETS
Current assets:

Cash and Investments 7,280,633 (2,383,797) 4,896,837 3,734,941 (1,603,909) 2,131,032 Receivables 261,173 - 261,173 153,160 - 153,160
Inventory 138,191 - 138,191 - - -
Prepaid Items 482,697 - 482,697 1,250 - 1,250
Total current assets 8,162,694 (2,383,797) 5,778,898 3,889,351 (1,603,909) 2,285,442 Capital assets (net of
accumulated depreciation) 2,353,427 2,648,911 5,002,338 1,373,550 1,800,738 3,174,287 Other assets 125,900 - 125,900 125,796 - 125,796
- -
Total Assets: $ 10,642,021 $ 265,114 $ 10,907,135 $ 5,388,696 $ 196,828 $ 5,585,525 -

LIABILITIES
Current Liabilities 100,528 - 100,528 130,794 - 130,794 Noncurrent Liabilities 2,636,118 - 2,636,118 1,901,117 - 1,901,117 Other Liabilities 5,672 - 5,672 1,207 1,207 - -
Total Liabilities: $ 2,742,318 $ - $ 2,742,318 $ 2,033,118 $ - $ 2,033,118 - -
NET POSITION (Assets - Liabilities) $ 7,899,703 265,114$ $ 8,164,818 3,355,578$ $ 196,828 $ 3,552,407 Net Position Breakdown
Net Investment in Capital Assets 2,353,427 2,648,911 5,002,338 1,373,550 1,800,738 3,174,287 Restricted for capital expansion (2,383,797) (2,383,797) (1,603,909) (1,603,909) Unrestricted 5,546,276 5,546,276 - 1,982,029 1,982,029 - Total Net Position $ 7,899,703 $ 265,114 $ 8,164,818 $ 3,355,578 $ 196,828 $ 3,552,407 Table 7

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Quarterly Financial Report –First Quarter Ending September 30, 2022 Page 10

Figure 3 summarizes Enterprise Fund revenue, expenses, connection fees and CIP transfers per fund:

Figure 3
Water Fund
Revenue and Expenses
Water Funds Water
Water
Capital Total
Revenues
Charge for Services 772,280 - 772,280
Interest Income 6,582 - 6,582
Connection Fees - -
Total Operating Revenue 778,862 - 778,862
Other Revenues 166 - 166
Total Revenues 779,028 - 779,028
Transfers In - CIP - - -
Expenses
Operating 255,693 - 255,693
Depreciation* 57,222 9,435 66,657
State Water 172,395 - 172,395
Total Operating Expenses 485,310 9,435 494,745
Operating Profit(Loss) 293,718 (9,435) 284,283
Transfers Out - CIP** - 101,952 101,952
Net Profit (Loss) 293,718 (111,387) 182,331
* Depreciation is estimated Final depreciation posted at the end of fiscal year. **For informational purposes. Capital expenditures are capitalized, at the end of the FY, not expensed.

Table 8
Table 8 summarizes Revenue and Expenditures for the Water and Water Capital Funds. On the Financial Statements, both funds are combined as one fund. The Water Capital Fund is structured to record capital contributions and is used to record capital improvements that enhance capacity. Water Capital will be discussed in detail later in this report.

Water Fund operating revenues have exceeded operating expenditures by $293,718 at the end of the first quarter 2022-23 (excludes Capital Improvement expenses). Per Generally Accepted Accounting Principles -
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
Water Fund Water Capital Wastewater
Fund
Wastewater
Capital
Operating Revenue
Operating Expense
Transfer to CIP

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Quarterly Financial Report –First Quarter Ending September 30, 2022 Page 11

(GAAP), capital items are expensed in the depreciation category. The amount spent on capital projects are capitalized and shown on the Balance Sheet at the end of the fiscal year. The Water Fund is currently operating with a surplus compared to operating in a deficit for over a decade. The Water Fund ended the first quarter with approximately $7.2 Million in cash (Table 7) and Fund Balance of approximately $7.8 Million.

Table 9 illustrates the Water Fund budget to actuals. Charges for Services exceed budget projections at 29 percent. Interest income exceeds projections due to the current higher interest earnings. Stronger interest rates are expected as the Federal Reserve continues to hike interest rates.

The Water Fund utilizes reserves to fund Capital Improvement projects (CIPs). The budgeted transfer out for CIPs for FY 2022/23 is $698,882. Overall, Water Fund expense categories were within budget and ended the first quarter at 17 percent.

Water Capital
Water Capital Fund records Connection Fees and CIP expenditures. The change in Fund Balance is due to planned expenditures for CIPs exceeding estimated Connection Fee revenue and offset by any existing Fund Balance.

The Fund Balance at the end of the first quarter is $265,114 (Table 7). In accordance with Generally Accepted Accounting Principles (GAAP), capital expenditures are not recorded as expenditures; rather, depreciation expense is recorded over each asset’s useful life. At year-end, the Water Fund will transfer funds to the Capital Fund to cover any deficit. Table 10 illustrates the Water Capital budget to actuals.

Water Capital 021 Original Budget Current Budget YTD Actuals Percent Revenues
Connection Fees - - - 0%
Interest Income - - - 0%
Transfers from Reserves - - - 0%
Transfer In from Fund 020 437,740 537,740 - 0%
Total Revenue 437,740 537,740 - 0%
Expenses
Depreciation* 37,740 37,740 9,435 25%
Transfer to CIP Projects 400,000 500,000 101,952 20%
Total Expenditures 437,740 537,740 111,387 21%
Table 10
*Depreciation is estimated.

Water Fund 020 Original Budget Current Budget YTD Actuals Percent Revenues
Charge for Services 2,694,128 2,694,128 772,280 29%
Interest Income 10,200 7,200 6,582 91%
Total Operating Revenue 2,704,328 2,701,328 778,862 29% Other Revenues - - 166 0%
Transfer from Reserves 302,952 239,695 - 0%
Total Revenues 3,007,280 2,941,023 779,028 26%
Expenses
Operating 1,452,392 1,767,135 255,693 14%
Depreciation* 228,888 228,888 57,222 25%
State Water 1,326,000 945,000 172,395 18%
Total Operating Expenses 3,007,280 2,941,023 485,310 17% Operating Profit (Loss) - - 293,718 #DIV/0!
Transfers Out for CIP** #DIV/0!
Total Expenses 3,007,280 2,941,023 485,310 17%
*Depreciation is estimated. Capital Expenditures recorded here and depreciated annually. ** For information purposes only, capitalized at the end of the fiscal year.

Table 9

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Quarterly Financial Report –First Quarter Ending September 30, 2022 Page 12

Wastewater
Wastewater and
Wastewater Capital Funds Wastewater
Wastewater
Capital Wastewater Total
Revenues
Charge for Services 339,323 - 339,323
Interest Income 2,886 - 2,886
Connection Fees - - -
Total Operating Revenue 342,209 - 342,209
Other Revenues - - -
Total Revenues 342,209 - 342,209
Transfers In -CIP - - -
Expenses
Operating 331,246 - 331,246
Depreciation* 71,528 9,180 80,708
Total Operating Expenses 402,773 9,180 411,953
Operating Profit(Loss) (60,565) (9,180) (69,745)
Transfers Out - CIP** - 10,711 10,711
Net Profit (Loss) (60,565) (19,891) (80,456)
*Depreciation is actual. Capital Expenditures recorded here and depreciated annually. ** For information purposes only, capitalized at the end of the fiscal year.

Table 11
Revenue and Expenses
Table 11 summarizes Revenue and Expenditures for the Wastewater and Wastewater Capital Funds. On the Financial Statements, both funds are combined as one fund. The Wastewater Capital Fund is structured to record capital contributions and used to record capital improvements that enhance capacity. Wastewater Capital will be discussed in detail later in this report.

Wastewater Fund operating expenses slightly exceeded operating revenue causing the Wastewater fund to experience a net operating deficit of $60,565 in the first quarter of FY 2022/23 (excluding Capital Improvement Project expenses). The previous years’ rate increases are narrowly covering the current operating costs and will not be feasible in the future. The Wastewater Fund ended the first quarter with about $3.7 Million in cash (Table 7) and Fund Balance of approximately $3.3 Million.

Table 12 on the following page illustrates the Wastewater Fund budget to actuals. Charges for Services exceeded budget projections at 28 percent received. Interest income has received 90 percent of projected revenue. Like the explanation in the Water Fund, stronger interest rates are expected in the new fiscal year as the Federal Reserve continues to hike interest rates.

The Wastewater Fund utilizes reserves to fund Capital Improvement Projects (CIPs). The budgeted transfer out for CIPs for FY 2022/23 is $708,418. Overall, the Wastewater Fund expenses are within budget at 18 percent.

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Quarterly Financial Report –First Quarter Ending September 30, 2022 Page 13

Sewer Fund 005 Original Budget Current Budget YTD Actuals Percent Revenues
Charge for Services 1,225,800 1,225,800 339,323 28%
Interest Income 6,528 3,200 2,886 90%
Total Operating Revenue 1,232,328 1,229,000 342,209 28% Other Revenues - - - 0%
Transfer from Reserves 1,079,230 1,052,112 - 0%
Total Revenues 2,311,558 2,281,112 342,209 15%
Expenses
Operating 2,025,448 1,995,002 331,246 17%
Depreciation* 286,110 286,110 71,528 25%
Total Operating Expenses 2,311,558 2,281,112 402,773 18% Operating Profit (Loss) - - (60,565) #DIV/0!
Transfers for CIP** - - #DIV/0! -
Total Expenses 2,311,558 2,281,112 402,773 18%
*Depreciation is actual. Capital Expenditures recorded here and depreciated annually. ** For information purposes only, capitalized at the end of the fiscal year.

Table 12
Wastewater Capital
Wastewater Capital Fund records Connection Fees and CIP expenditures. The change in Fund Balance is due to planned expenditures for CIPs exceeding estimated Connection Fee revenue and offset by any existing Fund Balance. The Fund Balance at the end of the first quarter is $196,828 (Table 7). In accordance with Generally Accepted Accounting Principles (GAAP), capital expenditures are not recorded as expenditures; rather, depreciation expense is recorded over each asset’s useful life. At year-end, the Wastewater Fund will transfer funds to the Capital Fund to cover any deficit. Table 13 below illustrates the Wastewater Capital budget to actuals.

Wastewater Capital 006 Original Budget Current Budget YTD Actuals Percent Revenues
Connection Fees - - - 0%
Interest Income - - - 0%
Transfers from Reserves - - - 0%
Transfer In from Fund 005 886,720 586,720 - 0%
Total Revenue 886,720 586,720 - 0%
Expenses
Depreciation 36,720 36,720 9,180 25%
Transfer to CIP Projects 850,000 550,000 10,711 2%
Total Expenses 886,720 586,720 19,891 3%
Table 13

Percent
Used
-267,452.66 3.19%
-2,548,159.02 3.01%
-513,312.11 40.73%
-700,430.72 1.51%
-519,746.14 16.40%
-10,000.00 0.00%
-300,000.00 0.00%
-4,859,100.65 10.22%
Department: 102 - Storm Drain Outfall Repairs and Re-Establishment 40,000.00 0.00%
40,000.00 0.00%
Department: 205 - City Hall Repairs
50,000.00 0.00%
50,000.00 0.00%
Department: 207 - Santa Ynez River Trail
50,000.00 0.00%
50,000.00 0.00%
Department: 212 - The Avenue Median 3 Improvement
125,000.00 0.00%
125,000.00 0.00%
Department: 214 - City Hall Generator/Electrical Replacement 40,000.00 0.00%
40,000.00 0.00%
Budget Report
City of Buellton, CA Account Summary
For Fiscal: 2022-23 Period Ending: 09/30/2022
Variance
Favorable
(Unfavorable)
Original
Total Budget
Current
Total Budget
Fiscal
Activity
Fund: 092 - Capital Improvement Project Fund
Funding Sources
092-49726 Transfer from Gas Tax Fund 300,000.00 276,277.00 8,824.34 092-49727 Transfer from General Fund 1,392,264.00 2,627,210.00 79,050.98 092-49728 Transfer from Measure A 337,736.00 866,085.00 352,772.89 092-49729 Transfer from Sewer Fund 850,000.00 711,142.00 10,711.28 092-49732 Transfer from Water Fund 400,000.00 621,698.00 101,951.86 092-49733 Trsfr from Local Trans Fund 10,000.00 10,000.00 0.00 092-49734 Transfer from ARPA Fund 0.00 300,000.00 0.00
Revenue Total: 3,290,000.00 5,412,412.00 553,311.35
Status: Not yet started.
092-102-74100 Construction and Improvements 40,000.00 40,000.00 0.00 Department: 102 - Storm Drain Outfall Repairs and Re-Establishment Total: 40,000.00 40,000.00 0.00 092-205-74100 Construction/Improvements 0.00 50,000.00 0.00 Department: 205 - City Hall Repairs Total: 0.00 50,000.00 0.00 Status: Not yet started.
092-212-70000 Conceptual Plan and Feasibility 125,000.00 125,000.00 0.00 Department: 212 - The Avenue Median 3 Improvement Total: 125,000.00 125,000.00 0.00 092-207-70000 Conceptual Plan and Feasibility 75,000.00 50,000.00 0.00 Department: 207 - Santa Ynez River Trail Total: 75,000.00 50,000.00 0.00 Status: Grant application being prepared.

Status: Not yet started.
092-214-74100 Construction and Improvement 0.00 40,000.00 0.00 Department: 214 - City Hall Generator/Electrical Replacement Total: 0.00 40,000.00 0.00 Status: Not yet started.

Percent
Used
Department: 217 - River View Park Basketball Court Resurfacing 80,000.00 0.00%
80,000.00 0.00%
Department: 219 - Engie Project
45,120.00 0.00%
45,120.00 0.00%
Department: 220 - Willemsen Parking Lot
63,697.50 36.30%
100,000.00 0.00%
1,000,000.00 0.00%
1,163,697.50 3.03%
Department: 221 - Willemsen House Renovation
99,172.58 9.84%
99,172.58 9.84%
Department: 307 - McMurray Road Widening/TS (13/14)
-21,773.95 -268.33%
311,678.10 -1.53%
50,000.00 0.00%
200,000.00 0.00%
539,904.15 6.83%
Department: 308 - No. Ave of the Flags Park and Ride
50,000.00 0.00%
50,000.00 0.00%

0.00 80,000.00 0.00
Department: 217 - River View Park Basketball Court Resurfacing Total: 0.00 80,000.00 0.00 Budget Report For Fiscal: 2022-23 Period Ending: 9/30/2022 092-217-74100 Construction and Improvement
Variance
Favorable
(Unfavorable)
092-220-74100 Construction/Improvements 0.00 1,000,000.00 0.00 Department: 220 - Willemsen Parking Lot Total: 0.00 1,200,000.00 36,302.50 092-220-70005 Design and Permitting 0.00 100,000.00 36,302.50 092-220-71500 Project Management and Inspection 0.00 100,000.00 0.00 092-221-70005 Design and Permitting 0.00 110,000.00 10,827.42 Department: 221 - Willemsen House Renovation Total: 0.00 110,000.00 10,827.42 092-307-70005 Design and Permitting 0.00 12,935.00 34,708.95 092-307-71200 Right of Way Acquistion 0.00 316,517.00 4,838.90 579,452.00 39,547.85
092-308-70005 Design and Permitting 50,000.00 50,000.00 0.00 092-307-71500 Project Management and Inspections 100,000.00 50,000.00 0.00 092-307-74100 Construction and Improvements 300,000.00 200,000.00 0.00 Original
Total Budget
Current
Total Budget
Fiscal
Activity
Status: Not yet started.

Status: Project substatially complete, pending punchlist items. Notice of Completion (NOC) estimated to go to Council on 11/10/22.

Status: In Design.

Status: In Design.

Department: 308 - No. Ave of the Flags Park and Ride Total: 50,000.00 50,000.00 0.00 Department: 307 - McMurray Road Widening/TS (13/14) Total: 400,000.00 Status: Design complete - application package submitted to Caltrans for review.

Status: Not yet started.
092-219-74100 Engie Improvements 0.00 45,120.00 0.00
Department: 219 - Engie Project Total: 0.00 45,120.00 0.00

Percent
Used
Department: 320 - Road Maintenance (2021/22)
75,000.00 0.00%
59,812.50 29.63%
171,217.06 65.76%
306,029.56 53.63%
Department: 321 - Road Maintenance (2022/23)
75,000.00 0.00%
85,000.00 0.00%
540,000.00 0.00%
700,000.00 0.00%
Department: 401 - Misc. Park Improvements
50,000.00 0.00%
50,000.00 0.00%
Department: 603 - WTP Facilities Improvement (13/14)
84,291.46 43.81%
84,291.46 43.81%
Department: 605 - WTP Backwash Reclamation Improvement Project 100,000.00 0.00%
100,000.00 0.00%
Department: 607 - Water Meter Upgrades
100,000.00 0.00%
100,000.00 0.00%
092-320-71500 Project Management and Inspection 0.00 85,000.00 25,187.50 092-320-70005 Design and Permitting 0.00 75,000.00 0.00 092-321-70005 Design and Permitting 0.00 75,000.00 0.00 092-320-74100 Construction/Improvements 0.00 500,000.00 328,782.94 092-321-71500 Road Maintenance (2022/23) 150,000.00 85,000.00 0.00 092-321-74100 Construction/Improvements 1,150,000.00 540,000.00 0.00 Department: 321 - Road Maintenance (2022/23) Total: 1,300,000.00 700,000.00 0.00 092-401-74100 Construction and Improvements 50,000.00 50,000.00 0.00 Status: Not yet started.

Department: 401 - Misc, Park Improvements Total: 50,000.00 50,000.00 0.00 092-603-74100 Construction and Improvements 150,000.00 150,000.00 65,708.54 Status: Not yet started.

Department: 603 - WTP Facilities Improvement (13/14) Total: 150,000.00 150,000.00 65,708.54 092-605-74100 Construction and Improvements 0.00 100,000.00 0.00 Status: In progress.

0.00 Department: 605 - WTP Backwash Reclamation Improvement Project Total: 0.00 100,000.00 0.00 092-607-74100 Construction and Improvements 100,000.00 100,000.00 0.00 Status: Not yet started.

Department: 607 - Water Meter Upgrades Total: 100,000.00 100,000.00 Status: Project substatially complete, pending punchlist items. NOC estimated to go to Council on 11/10/22.

Budget Report For Fiscal: 2022-23 Period Ending: 9/30/2022 Variance
Favorable
(Unfavorable)
Original
Total Budget
Current
Total Budget
Fiscal
Activity
Status: Project Complete. NOC approved by Council 10/27/22.

Department: 320 - Road Maintenance (2021/22) Total: 0.00 660,000.00 353,970.44

Percent
Used
Department: 609 - Supplemental Well/WTP Feasibility
50,000.00 0.00%

0.00 0.00%
50,000.00 0.00%
Department: 610 - Water Distribution System Improvements 100,000.00 0.00%
100,000.00 0.00%
Department: 612 - Engie Project
104,889.68 13.81%
104,889.68 13.81%
Department: 613 - Res No2 Reroof
-19,435.00 #DIV/0!
-19,435.00 #DIV/0!
Department: 704 - Sewer Line Replacement
50,000.00 0.00%
200,000.00 0.00%
250,000.00 0.00%
Department: 706 - WWTP Facilities Improvement
297,175.28 0.94%
297,175.28 0.94%
092-609-70000 Conceptual Plan and Feasibility 0.00 50,000.00 0.00 Department: 613 - Res No2 Reroof Total: 0.00 0.00 19,435.00 Budget Report For Fiscal: 2022-23 Period Ending: 9/30/2022 Variance
Favorable
(Unfavorable)
Original
Total Budget
Current
Total Budget
Fiscal
Activity
Status: In progress.

Status: In progress.
092-612-74100 Engie Improvements 0.00 121,698.00 16,808.32 092-610-74100 Construction and Improvements 100,000.00 100,000.00 0.00 Department: 610 - Water Distribution System Improvements Total:
092-613-70005 Design and Permitting 0.00 0.00 19,435.00 100,000.00 100,000.00 0.00
092-609-70005 Design and Permitting 50,000.00 0.00 0.00 Department: 609 - Supplemental Well/WTP Feasibility Total: 50,000.00 50,000.00 0.00 092-706-74100 Construction and Improvements 300,000.00 300,000.00 2,824.72 092-704-71500 Project Management and Inspections 50,000.00 50,000.00 0.00 092-704-74100 Construction and Improvements 200,000.00 200,000.00 0.00 Department: 704 - Sewer Line Replacement Total: 250,000.00 250,000.00 0.00 Department: 706 - WWTP Facilities Improvement Total: 300,000.00 300,000.00 2,824.72 Department: 612 - Engie Project Total: 0.00 121,698.00 16,808.32 Status: Project substatially complete, pending punchlist items. NOC estimated to go to Council on 11/10/22.

Status: In Design.

Status: Not yet started.

Status: In progress.

Percent
Used
Department: 710 - WWTP Lift Station and Plant Power Reliability 20,000.00 0.00%
280,000.00 0.00%
300,000.00 0.00%
Department: 711 - Improvement
153,255.44 4.89%
153,255.44 4.89%
Fund 092 - Capital Improvement Project Fund Total: 3,290,000.00 5,412,412.00 553,311.35 4,859,100.65 10.22% 092-710-74100 Construction/Improvements 280,000.00 280,000.00 0.00 Department: 710 - WWTP Lift Station and Plant Power Reliability Total: 300,000.00 300,000.00 0.00 161,142.00 7,886.56
092-710-71500 Project Management and Inspections 20,000.00 20,000.00 0.00 Fund Balance Analysis - Capital Improvement Project (CIP) Funding Sources (2022-2023) Variance
Favorable
(Unfavorable)
Original
Total Budget
Current
Total Budget
Fiscal
Activity
Status: In progress.

Status: Project substatially complete, pending punchlist items. NOC estimated to go to Council on 11/10/22.

Budget Report For Fiscal: 2022-23 Period Ending: 9/30/2022 092-711-74100 Engie Improvements 0.00 161,142.00 7,886.56 Department: 711 - Improvement Total: 0.00
6/30/2022 FY 22/23 YTD FY 22/23 YTD FY 22/23 YTD Est. 9/30/22 Change in Est. Fund Equity Revenue Expenditures CIP Funding Fund Equity Fund Balance 001 - General Fund $ 11,981,083.79 $ 1,990,277.51 $ 2,371,506.08 $ 79,050.98 $ 11,520,804.24 $ (460,279.55) 005 - Wastewater $ 3,344,615.81 342,208.55 320,534.65 10,711.28 $ 3,355,578.43 $ 10,962.62 006 - Wastewater
Capital $ 207,539.75 - - 207,539.75 - $ $ - 020 - Water $ 7,548,763.23 779,027.87 326,135.80 101,951.86 $ 7,899,703.44 $ 350,940.21 021 - Water Capital $ 367,065.94 - - 367,065.94 - $ $ - 025 - Gas Tax $ 409,187.48 57,154.94 26,277.51 8,824.34 $ 431,240.57 $ 22,053.09 027 - Local
Transportation Fund $ 286,711.90 98,238.04 4,999.98 379,949.96 - $ $ 93,238.06 031 - Measure A $ 885,648.41 39,768.16 97,000.00 352,772.89 $ 475,643.68 $ (410,004.73) 032- ARPA $ 607,992.17 611,853.14 - 1,219,845.31 - $ $ 611,853.14 Totals: 25,638,608.48 $ $ 3,918,528.21 $ 3,146,454.02 $ 553,311.35 $ 25,857,371.32 $ 218,762.84 Fund

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: Rose Hess, Public Works Director/City Engineer
Meeting Date: November 10, 2022
Subject: Acceptance of and Issuance of a Notice of Completion for the ENGIE Energy Savings and Solar Project
______________________________________________________________________________

BACKGROUND
At the December 10, 2020 Council Meeting, the City Council adopted Resolution No. 20- 32 (Energy Services Agreement and Implementation with ENGIE) and Resolution No. 20- 35 (Equipment Lease Purchase and Financing) and entered into a contract with ENGIE Services US Inc, to implement Energy Savings and Solar Projects within the City of Buellton. The projects included various HVAC & Controls, lighting, Water Meters, Solar Lighting and Solar PV Arrays. The dates of substantial completion are as follows:

Phase Date of Substantial Completion
*Solar Lighting (Central Ave and Industrial
Way and misc. facilities) -
07/01/2022
*Water Meters 05/24/2022
*HVAC & Controls (various City owned
facilities)
08/31/2021
*Lighting (various City owned facilities) 09/28/2021
*Solar PV Arrays (Post Office/Hwy 246
WTP)
07/05/2022 Start-up
*Solar PV Arrays (McMurray Rd Booster) 08/22/2022 Start-up *Solar PV Arrays (WWTP) 07/29/2022 Start-up
As a recap of the project change orders: During the solar array portions of the projects, an additional total of $89,861.22 was incurred due to water found at shallow depths at the WWTP during footing drilling which required mitigation and redesign, and modified trenching for electrical conduit at the post office due to underground utility conflicts. There is a credit in the amount of $13,995.06, for water service/meter repairs made by the City’s contractor during the mass water meter upgrade. This leaves a net additional cost of $75,866.16. The final contract amount is $4,623,813.16. On August 25, 2022, the City Council approved this final change orders for the projects and authorized the budget amendment.

ENGIE NOC Page 2 November 10, 2022

RECOMMENDATION
That the City Council accept the ENGIE Energy Savings and Solar Project and instruct the City Engineer to file the attached Notice of Completion.

ATTACHMENTS
Attachment 1 - Notice of Completion

NOTICE OF COMPLETION
Notice is hereby given that:

1. The undersigned is the owner or corporate officer of the interest or estate hereinafter described:

2. The full name of the owner is: City of Buellton

3. The full address of the owner is: 107 West Highway 246 P.O. Box 1819
Buellton, California 93427

4. The nature of the interest or estate of the owner is “in fee”

5. All work of improvements on the project hereinafter was substantially completed on September 28, 2022. The work done included the installation solar lighting (Central Ave, Industrial Way, and misc. facilities), water meter upgrades throughout the city, HVAC & controls at various city owned facilities, led lighting (various city owned facilities), and solar pv arrays (Post Office/Hwy 246 WTP, McMurray Rd Booster, and WWTP). All improvements were within the City of Buellton’s city limits.

6. The name of the contractor, if any, for such work of improvement was ENGIE Services US, Inc.

7. The property on which said work of improvement was completed is in the City of Buellton, County of Santa Barbara, State of California, and is described as various streets within the City limits of the City of Buellton.

Dated: _________________________________
Linda Reid, City Clerk

VERIFICATION
I, the undersigned, declare that I am the City Engineer of the declarant of the foregoing Notice of Completion. I have read said Notice of Completion and know the contents thereof and the same is true of my own knowledge. I declare under penalty of perjury that the foregoing is true and correct.

Executed on November 10, 2022, at Buellton, California. __________________________________________
Rose M. Hess, Public Works Director/City Engineer

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: Rose Hess, Public Works Director

Meeting Date: November 10, 2022

Subject: Consideration of Amendment No. 1 to Architectural Contract with Marchi & Associates
______________________________________________________________________________

BACKGROUND

On March 24, 2022, the City Council approved the contract for Architectural services for the renovation of the Willemsen House. The architectural services and design work has progressed with Council direction on the necessary features and modifications. During the design process, it was noted and discussed that structural engineering design would be required to provide the required structural retrofit of the former residential building to a public facilities building.

In order to complete the structure plans, Marchi & Associates will be utilizing Wright Engineers to complete the structural portion of the project. In addition, the contract amendment proposal includes construction cost estimation (which was not previously included). The total amendment proposed is $27,478.90.

FISCAL IMPACT

A budget amendment would be required to increase the Design Cost from $70,000 to $98,000, in the FY 2022/2023 Capital Improvement Budget, specifically 092-221-70005.

RECOMMENDATION
That the City Council a) approve Contract Amendment No. 1 with Marchi & Associates for an addition of $27,478.90 and b) approve the budget amendment to the CIP Fund 092- 221-70005 to $98,000.

ATTACHMENTS
Attachment 1 – Contract Amendment No. 1

AMENDMENT NO. 1 TO AGREEMENT
Marchi & Associates
and
City of Buellton
THIS AMENDMENT NO.1 TO AGREEMENT (the "Amendment") is entered into this 10th day of November 2022 by and the CITY OF BUELLTON, a California municipal corporation ("City"), and Marchi & Associates ("Marchi"), a corporation duly organized and operated under the laws of the State of California.

RECITALS
A. On March 24, 2022, Marchi & Associates and the City entered into a Public Contract Agreement (the "Agreement") for the architectural professional services for the City of Buellton.

B. Pursuant to the Agreement, Section 3. Additional Services. Such term may be extended upon written agreement of both parties to this Agreement on an annual basis as executed by the City Manager.

C. On October 31, 2022, Marchi & Associates provided the proposal for additional structural engineering and cost estimating services as needed to perform the renovation.

D. The City has reviewed the scope of work proposed and finds it appropriate to amend the scope of work and costs in accordance with the purposes set forth in the Agreement.

AMENDMENT
In consideration of the mutual covenants and conditions set forth herein, the City and Autosys agree as follows:

1. Exhibit "A" of the Agreement, "SCOPE OF SERVICES/PROPOSAL" is hereby amended to add:
"Change Order No. 1, dated October 31, 2022"

2. Section 4 (a) of the Agreement is hereby amended to read as follows:
"(a) Subject to any limitations set forth in this AGREEMENT, CITY agrees to pay CONSULTANT the amounts specified in EXHIBIT "A" and made a part of this AGREEMENT. The total compensation, including reimbursement for actual expenses, shall not exceed ninety-three thousand four hundred twenty eight Dollars and ninety Cents

($93,428.90.), unless additional compensation is approved in writing by the City Manager or his or her designee."

3. Except as expressly modified herein, all the terms referenced in this Amendment shall have the same meaning as the terms defined in the Agreement.

4. Except as expressly modified by this Amendment, all terms and provisions of the Agreement shall remain in full force and effect.

IN WITNESS HEREOF, the parties have executed Amendment No. 1 to the Agreement.

CITY OF BUELLTON

Scott Wolfe
City Manager

Brett Marchi
Marchi & Associates

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: Andrea Keefer, Planning Director
Meeting Date: November 10, 2022
Subject: Consideration of Proposal to Prepare Environmental Document for the 6th Cycle Housing Element Update and Contract Amendment for Civic Solutions

BACKGROUND
Civic Solutions is currently under contract with the City to prepare the 6th Cycle Housing Element of the Buellton General Plan. The update process is expected to conclude in the spring of 2022, in order to meet statutory deadlines. The Draft Housing Element is currently under the required 90-day review period with Department of Housing and Community Development, and staff expects to receive comments back on the draft document no later than January 4, 2023.

The next step in the update process is to prepare the separate environmental document for the Housing Element update, as required by the California Environmental Quality Act (CEQA). The CEQA portion of the project was not included in the original proposal provided by Civic Solutions for preparation of the Housing Element Update. Therefore, Civic Solutions has provided a separate proposal to prepare the required environmental document. A draft contract amendment to the existing contract has been included as Attachment 1, which includes the new proposal for CEQA portion of the project as Exhibit A. Staff feels that Civic Solutions is the most qualified consultant to prepare the environmental document for this project, since they are also preparing the 6th Cycle Housing Element for the City.

FISCAL IMPACTS
No fiscal impacts are anticipated. There are sufficient Regional Early Action Planning (REAP) grant funds available to cover the cost to prepare the environmental document.

Housing Element CEQA – Civic Solutions Proposal Page 2 November 10, 2022

RECOMMENDATION
That the City Council authorize the City Manager to enter into an amended contract with Civic Solutions, to include additional work, including the preparation of the required environmental document for the Housing Element Update, for an additional contract amount not-to-exceed $12,880 and total contract amount of $129,310.

ATTACHMENTS
Attachment 1 – Draft Contract Amendment (w/Exhibit A)

1 FIRST AMENDMENT TO AGREEMENT
between

CITY OF BUELLTON
and
CIVIC SOLUTIONS, INC.

This FIRST AMENDMENT TO AGREEMENT (the “Amendment”) is made and entered into this 10th day of November 2022, by and between the City of Buellton, a Municipal corporation (“City”), and Civic Solutions, Inc. (“Contractor”).

1. RECITALS
A. On September 3, 2021, the City and Contractor entered into that Agreement to provide consultant services to the City for 6th Cycle Housing Element preparation from November 22, 2021 to June 30, 2023 (the “Agreement”); and, B. On November 10, 2022, the City and Contractor entered into a First Amendment to the Agreement (First Amendment) to provide 6th Cycle Housing Element preparation services to the City from November 22, 2021, to June 30, 2023; and
C. The City and Contractor desire to amend the Agreement to extend the term, scope of services, and payment to Contractor for services performed.

2. AMENDMENT
In consideration of the mutual covenants and recitals contained in the Agreement and this Amendment, which are incorporated herein, City and Contractor agree as follows:

1. Section 1 of the Agreement is hereby amended to read as follows:

SECTION 1. TERM OF AGREEMENT.

Subject to the provisions of SECTION 19 "TERMINATION OF AGREEMENT" of this AGREEMENT, the term of this AGREEMENT shall be for a period of November 22, 2021 to June 30, 2023. Such term may be extended upon written agreement of both parties to this AGREEMENT.

2. Section 2 of the Agreement is hereby amended to read as follows:

SECTION 2. SCOPE OF SERVICES.

2 (CONTRACTOR) agrees to perform the work included in the original agreement as well as additional services set forth in EXHIBIT "A", “SCOPE OF SERVICES/PROPOSAL", and made a part of this AGREEMENT.

3. Section 4 of the Agreement is hereby amended to read as follows:

SECTION 4. COMPENSATION AND METHOD OF PAYMENT.
(a) Subject to any limitations set forth in this AGREEMENT, CITY agrees to pay (CONTRACTOR) the amounts specified in EXHIBIT “A” and made a part of this AGREEMENT. The total compensation, including reimbursement for actual expenses, shall not exceed ___One Hundred and Twenty Nine Thousand Three Hundred Ten______ DOLLARS ($129,310), for all work, including work from original agreement and additional work included in the amendment, unless additional compensation is approved in writing by the City Manager.

3. Except as expressly modified herein, all the terms referenced in this Amendment shall have the same meaning as the terms defined in the Agreement.

4. Except as expressly modified by this Amendment, all terms and provisions of the Agreement shall remain in full force and effect.

3 IN WITNESS WHEREOF, the City and Consultant have executed the First Amendment as of the day and year first noted above.

CONSULTANT, CIVIC SOLUTIONS, INC.

By: ________________________________________
Title: _______________________________________
By: ________________________________________
Title: _______________________________________

CITY OF BUELLTON
_____________________________
Scott Wolfe, City Manager
Approve as to Form
_________________________
Gregory M. Murphy, City Attorney
Attest:
___________________________
Linda Reid, City Clerk
Exhibit A – SCOPE OF SERVICES (proposal dated October 6, 2022)

October 6, 2022
Andrea Keefer, Planning Director
City of Buellton
107 West Highway 246
Buellton, California 93427
Re: Proposal to Prepare CEQA Documentation for the Buellton Housing Element Update, Safety Element Update and Zoning Code Amendments
Dear Andrea,
Civic Solutions is pleased to submit this scope and budget to prepare California Environmental Quality Act (CEQA) documentation for the Buellton Housing Element Update, Safety Element Update and Zoning Code Amendments. As you know, Civic Solutions is uniquely qualified for this effort due to our familiarity with the City and the Housing Element Update, as well as our extensive CEQA experience.

Team member Mary Wright will prepare the CEQA documentation for this project. In addition to assisting with the Housing Element Update and preparing the Housing Element Update Sites Inventory, Mary has over 30 years of experience preparing and reviewing CEQA documentation for a variety of projects and programs. In addition, she recently completed an Initial Study/Negative Declaration for the Laguna Beach Housing Element Update.

Civic Solutions’ proposed scope, schedule, and budget for the Buellton Housing Element Update, Safety Element Update and Zoning Code Amendments CEQA documentation is outlined below.

Proposed Scope
Civic Solutions has assumed that an Initial Study (IS) and Negative Declaration (ND) or Mitigated Negative Declaration (MND) will be appropriate for the Buellton Housing Element Update, Safety Element Update and Zoning Code Amendments as rezonings are not required to accommodate the 6th Cycle RHNA and no potentially significant impacts are anticipated. While an exemption may be possible for the project, preparation of an IS and ND or MND will provide the opportunity to fully evaluate each issue and provide justification for each potential impact determination. It will also provide the opportunitiy to easily incorporate mitigation measures in the event that measures are identified through the evaluation process (i.e. tribal monitoring measures).

Regarding tribal resources, the City will need to offer consultation to interested local tribes for the Housing Element Update, Safety Element Update and Zoning Code Amendments effort per AB 52 and SB 18. This proposal assumes that Civic Solutions will prepare consultation letters for the City to send out and assist the City with consultation if needed.

It is recommended that this effort begin soon due to time requirements associated with each statute.

2 This proposal also assumes that no zone changes will be necessary for the project, no technical studies or reports will be needed, and that the documentation will not elicit extensive public comments. In the event that zone changes are required, the analysis determines that technical studies are warranted, or the effort becomes controversial, a scope and budget amendment may be needed to cover the additional work. In addition, per a conversation with you on September 23, 2022, the CEQA analysis will not provide environmental documentation for the remaining Affordable Housing Overlay Zone (AHOZ) sites. It is our understanding that the City will be conducting an analysis of the remaining AHOZ sites through a separate process at a later date. It is also assumed that City staff will be responsible for timely recordation of the Notice of Decision.

Preparation of the IS and ND or MND will involve the following:
• Prepare AB 52 and SB 18 letters for the City
• Assistance with tribal consultation (if needed)
• Complete an Initial Study (IS) checklist
• Prepare an Administrative Draft IS/ND or MND based on the results of the IS • Submit an electronic copy of the Administrative Draft IS/ND or MND to City staff for review and comment
• Revise IS/ND or MND based on City comments
• Submit the Public Review Draft IS/ND or MND to City for distribution • Respond to comments received as a result of public review • Submit an electronic copy of the Final IS/ND or MND to City for review and comment • Revise as necessary and provide Final IS/ND or MND to City for distribution Project Schedule
Civic Solutions is available to work on this project immediately upon notification to proceed. While the anticipated duration of this effort is only 5 months, we recommend commencement of the effort as soon as possible to ensure completion by the time the Buellton Housing Element Update, Safety Element Update and Zoning Code Amendments are ready for adoption.

Project Budget
Civic Solutions’ not-to-exceed estimate to prepare the IS/ND or MND as outlined above is $12,880.

This includes 8 hours of time for Jean Ward to coordinate the effort and 80 hours of time for Mary Wright to conduct the analysis and prepare the CEQA documentation. Please note that time to attend public hearings to support the IS/ND or MND has not been included as Jean Ward and Mary Wright are already programmed to attend the hearings as part of the Buellton Housing Element Update, Safety Element Update and Zoning Code Amendments.

Please let us know if you have any questions regarding this proposal to provide CEQA documentation for the Buellton Housing Element Update, Safety Element Update and Zoning Code Amendments.

Sincerely,
Thomas G. Merrell Jean Ward, AICP
President Community Planning Services Manager
(949) 489-1442 (626) 584-8951

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 9

To: The Honorable Mayor and City Council
From: Andrea Keefer, Planning Director

Date: November 10, 2022
Subject: Resolution No. 22-32 – “A Resolution of the City Council of the City of Buellton, California, Requesting Either Approval or Denial of a One-Year Time Extension (22-TE-04) Request for Final Development Plan (16-FDP-06) and Tentative Tract Map (TTM 31061) for the Buellton Hub Project Located at the Southern Terminus of Industrial Way on Assessor’s Parcel Number 099-690- 048”
______________________________________________________________________________

BACKGROUND
An application has been submitted by SBID, LLC, Property Owner, and Gavin Moores, and Lonnie Roy, Agents (the “Applicant”), for a one-year time extension (22-TE-04) for the previously-approved Buellton Hub Project located at the southerly terminus of Industrial Way, Assessor’s Parcel Numbers (“APN”) 099-690-048. (Attachment 1 - Vicinity Map). The time extension request is for the Final Development Plan (16-FDP-06) and Tentative Tract Map (TTM 31061) (Attachment 2–Application and Project Description). Approved project plans are included as Attachment 3.

On January 18, 2018, the Planning Commission adopted Resolution No. 18-02 recommending approval of the Final Development Plan (16-FDP-06) and Tentative Tract Map (TTM 31061) (Attachment 4). City Council subsequently adopted Resolution No. 18- 03, approving the Final Development Plan and Tentative Tract Map on February 22, 2018 (Attachment 5). Resolution No. 18-03 referenced an incorrect APN. However, the maps and other depictions as shown in Attachment 5 gave a fair assessment of the parcels actually benefitted by the approvals and subject to the conditions, such that correcting the clerical error at this time is not granting any new substantive right.

Final development plans expire after 5 years (See Buellton Municipal Code Section

19.08.120.H (2)). Notwithstanding the general time limits set by the Buellton Municipal Code, the Code does allow an applicant to apply for up to two one-year time extensions for the Final Development Plan.

Resolution No. 22-32 Page 2 November 10, 2022
The Final Development Plan was set to expire on February 22, 2023, however the applicant applied for a time extension on July 20, 2022, in advance of the date of expiration. If approved, the Final Development Plan approvals would be extended to February 22, 2024.

Tentative Tract Maps expire after 3 years (See Buellton Municipal Code Section

18.02.420). Notwithstanding the general time limits set by the Buellton Municipal Code, the code does allow an applicant to apply for up to three one-year time extension for the Tentative Tract Map. In addition, from time to time the California Legislature provides for statutory extensions for maps that are at the time of the extension approved but unexpired.

The Tentative Tract Map was set to expire on February 22, 2021. However, Government Code Section 65914.5(b) as adopted by the Legislature provided for an automatic 18-month time extension for certain designated projects. The application of this Government Code section was analyzed by an interpretation presented by the applicant team. While not the interpretation of staff, the applicant’s interpretation is reasonable based upon a plainlanguage reading of the statute, and the City Attorney has indicated a willingness to accept the interpretation if the applicant agrees to indemnify and defend the City in the event of a legal challenge to this interpretation. Therefore, with the statutory extension, the Tentative Tract Map was set to expire on August 22, 2022. The applicant applied for a time extension on July 20, 2022, in advance of the date of expiration.

If approved, the Tentative Tract Map (TTM 31061) would be extended to August 22, 2023; one year from the date of the expiration of the automatic 18-month extension. This would be the first request for a one-year time extension under the Buellton Municipal Code. A total of three one-year time extensions are allowed for tentative parcel maps.

The City Council may, upon good cause shown, approve the time extension requests for one year (to February 22, 2024 for the Final Development Plan and August 22, 2023 for the Tentative Tract Map). Staff is unaware of any reason to deny the extension, and it is reasonable that the City Council approve the request at this time. The original applicant for 16-FDP-06 and TTM 31061 was Peter Hauber, prior property owner, and Gavin Moores, agent. The property has since been acquired by SBID, LLC, of which Gavin Moores and Lonnie Roy are agents.

Given the current property owner’s expressed desire to retain property entitlements and in light of the extenuating circumstances and delays that have resulted from the COVID-19 pandemic, Staff considers the time extension request to be reasonable.

It is anticipated that the Planning Commission has made a recommendation to the City Council regarding this matter at the regular Planning Commission meeting of November 3, 2022 (Attachment 6 – Planning Commission Resolution No. 22-09). However, the Planning Commission hearing to consider the matter had not been conducted at the time of the publication of this staff report. Therefore, the adopted resolution of the Planning Commission and a separate resolution for the City Council to consider will both be provided at the meeting on November 10, 2022.

Resolution No. 22-32 Page 3 November 10, 2022

RECOMMENDATION
That the City Council consider adoption of Resolution No. 22-32 – “A Resolution of the City Council of the City of Buellton, California, Requesting Either Approval or Denial of a One-Year Time Extension (22-TE-04) Request for Final Development Plan (16-FDP-06) and Tentative Tract Map (TTM 31061) for the Buellton Hub Project Located at the Southern Terminus of Industrial Way on Assessor’s Parcel Number 099-690-048”

ATTACHMENTS
Resolution No. 22-32 – TO BE PROVIDED AT HEARING
Attachment 1 – Vicinity Map
Attachment 2 – Application and Project Description from Applicant Attachment 3 – Approved Project Plans - Dated June 13, 2017 (Architectural, Civil, Landscaping) and August 9, 2017 (Tentative Tract Map)
Attachment 4 – Planning Commission Resolution No. 18-02 Attachment 5 – City Council Resolution No. 18-03
Attachment 6 – Planning Commission Resolution No. 22-09 – TO BE PROVIDED AT

HEARING

INDUSTRIAL WY

PARK CIR

VICTORY DR

SIX FLAGS CIR

SHADOW MOUNTAIN DR

ZACA ST

BUNDY CIR
STATE HWY 246

EVERGREEN DR

REDWOOD LN
Appendix A
¯ 0 205 410 820
Feet
Legend
City Parcels
Project Location

Attachment 2

Attachment 2

4050 Calle Real Suite 200 B, Santa Barbara CA 93110
Ph: (805) 692-2006 / Fax: (805) 692-2007
To: City of Buellton Planning & Development
cc:

From: Gavin Moores
Date: 7/25/2022
Re: The Hub 16-FDP-06 & TPM 31061 1-year Time Extension Request Due to the passing of a previous business partner the entitlements and transition of the project to a new owner Central Holdings LLC delayed the finalization of working drawings and map submittals on this project. Subsequently the follow-on effects of the pandemic and workload of design professionals has caused additional delays.

However, progress is moving forward with submittal of the TPM and a first round of grading & improvement plans expected to be submitted to the City 30-40 working days from today. Also given the City’s staff shortages we are submitting this request in case comments and corrections are not received and submitted with a city approval before the approval deadline.

Therefore, we are requesting a 1-year extension which will provide sufficient time for submittal and approval of the map and land development documents.

Sincerely,
Gavin Moores
CEO
Center Point Development Group, Inc.

Attachment 2 Page 71 of 322
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CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 10

To: The Honorable Mayor and City Council
From: Scott Wolfe, City Manager
Meeting Date: November 10, 2022
Subject: Consideration of Affordable Housing Agreement with Palm Communities for the Polo Village Project
______________________________________________________________________________

BACKGROUND
Palm Communities (Palm) is the applicant and prospective developer of the Polo Village Project, which has been processed ministerially under the SB 35 entitlement process. This project will construct a forty-nine (49) unit project which is to be affordable at the Very Low Income affordability level for forty-eight (48) of those units. The project is located at 560 McMurray Road (Assessor’s Parcel Number 137-090-067), just north of the Village Townhome neighborhood.

In order to memorialize the affordable nature of this project, an Affordable Housing Agreement is proposed. The purpose of this Agreement is to assure that the developer complies with the requirements associated with the conditions of approval for the property, particularly as they pertain to the provision of Affordable Housing.

As this project was proposed, and approved, as a 100% affordable project (excepting the manager’s unit), the agreement is fairly straight-forward, requiring the rents for all affordable units to be provided be capped at limits set forth in the Santa Barbara County Income and Price Guidelines. These rent caps are to be in place for a minimum of fiftyfive (55) years. The agreement establishes the process of the leasing, the income certification, and the allowable occupancy for units which are income qualified. It also provides a process for subsequent income qualification and procedures for addressing increasing or decreasing incomes of tenants.

In addition to these matters, the Agreement addresses the designation of the project as replacement units for a number of motels on Avenue of Flags. Over time, a significant number of rooms in these motels have been converted from traditional roadside motels into long-term stay single room occupancy (SRO) units. Given this status, any attempt to change the uses on these motel sites in the future will require the provision of replacement units, under various requirements of state law as well as the City’s Affordable Housing Ordinance. The Polo Village project was designed with the concept of providing a more

Affordable Housing Agreement – Polo Village Page 2 November 10, 2022 suitable living environment for current residents of these motels without a significant increase in cost.

Palm Communities began the process of designing the project by working with the City and People Helping People to conduct a survey of long-term residents of Avenue of Flags motels. Information such as income level and household size of these residents was gathered. The results of this survey informed the ultimate unit mix of the project, in an attempt to provide living arrangements which meet current standards for as many of the current motel resident households as possible.

In addition to working with the developer to conduct the study, the City has contributed considerable funding to this project. The remaining monies within the City’s Affordable Housing In-lieu fund, totaling Three Hundred Forty-One Thousand Four Hundred and Ninety-One Dollars ($341,491), were granted to the project in the form of a low-interest, residual receipts loan with a 55-year term. The actual benefit of these funds will very likely exceed the dollar amount, as the local funds received will be leveraged to make the project more competitive in the funding process.

Taken as a whole, this Affordable Housing Agreement serves two functions. It will ensure that the Polo Village project will provide housing which is affordable to very low income residents. Additionally, it will enable the City to reconcile the apparently conflicting policies of providing affordable housing opportunities for those most in need, and promoting the long-term renovation of a downtown commercial core as envisioned by the Avenue of Flags Specific Plan.

Palm Communities is in the process of working through details required to complete the purchase of the subject property, at which time they will create a special purpose limited partnership or limited liability corporation to build and operate this development. Staff is recommending that the City Council approve the form of the draft agreement, with the understanding that execution by the City Manager will not take place until the purchase of the property and establishment of an LP or LLC (if desired by the applicant) is completed.

In no case will the delay in execution exceed one year from today’s date.

FISCAL IMPACT
The adoption of the Affordable Housing Agreement is not expected to have an impact to the City’s General Fund.

RECOMMENDATION
Staff recommends that the City Council review and authorize the City Manager to execute the accompanying Draft Affordable Housing Agreement for the Polo Village Project, within one year of today’s date.

ATTACHMENTS
Attachment 1 - Draft Affordable Housing Agreement

1 650\154\2911724.3
RECORDING REQUESTED BY AND RETURN TO:

City of Buellton
107 W. Highway 246
Buellton, California 93427
Attention: City Manager

APN: 137-090-067 (Space Above This Line for Recorder’s Office Use Only) Exempt from recording fees pursuant to Govt Code 6103

AGREEMENT TO PROVIDE AFFORDABLE HOUSING

CITY OF BUELLTON
THIS AGREEMENT TO PROVIDE AFFORDABLE HOUSING (this “Agreement”) is made and entered into for reference purposes only as of _________________, 2022, by and between the CITY OF BUELLTON, a general law city (the “City”), and PALM COMMUNITIES, a California corporation (Owner”), with reference to the following facts:

RECITALS
A. Owner owns fee title to that certain real property located at 560 McMurray Road in the City of Buellton, California Assessor Parcel Number 137-090-067, and more particularly described in Exhibit A attached hereto (the “Property”).

B. Pursuant to Final Development Plan Approval 22-FDP-01, the City approved the following:
(i) The Final Development Plan for the Property, under Senate Bills 330 and 35, including site and floor plans and
architectural renderings for developing a forty-nine (49) unit apartment building which includes forty-eight (48)
affordable residential apartment units, on approximately two and sixteen one hundredths (2.16) acres of land, Case No. 22-FDP-01 (the “Project”).

C. The City has determined that the granting of approval for the Project requires as a condition of approval that Owner rent or lease or hold available for rent or lease a certain number of dwelling units within the Project for rent to income-eligible tenants at affordable housing costs in accordance with the terms, conditions, covenants, restrictions, liens, servitudes, and charges upon and subject to which such dwelling units shall be occupied, owned, maintained, held, leased, rented, sold, and conveyed.

D. Owner desires to comply with the conditions of approval by renting or leasing or holding available for rent or lease such number of dwelling units within the Project for

2 rent to income-eligible tenants at affordable housing costs in accordance with such terms, conditions, covenants, restrictions, liens, servitudes, and charges set forth in this Agreement.

E. The purpose of this Agreement is to assure that the Owner complies with such conditions for approval.

F. The City has worked with the Owner, the Santa Barbara County Area Housing Authority, and Santa Ynez Valley People Helping People to work toward building units that will serve to replace the long-term Single Room Occupancy units found in various motels along the Avenue of Flags.

G. The City has also provided significant funding to this project, in the form of Three Hundred Forty-One Thousand Four Hundred and Ninety-One Dollars ($341,491) from the City’s Affordable Housing In-Lieu Fund. This funding was an important aspect of the entire project’s financing, and was granted by the City to accomplish the goal of ensuring replacement units for the Avenue of Flags motels.

NOW, THEREFORE, for good and valuable consideration the Parties hereto agree as follows:

1. Definitions. Except where otherwise noted, the definitions appearing in this Section apply throughout this Agreement. Capitalized terms used herein shall have the following meanings unless the context in which they are used clearly requires otherwise.

1.1 Affordable Unit. The term “Affordable Unit” means any one of the forty eight (48) residential apartment units located on the Subject Property.

1.2 Applicant. The term “Applicant” means any Household who applies for an Affordable Unit.

1.3 Area Median Income. The term “Area Median Income” means the annual median income for the County of Santa Barbara set forth in the County Housing and Income Guidelines.

1.4 CDLAC. The term “CDLAC” means the California Debt Limit Allocation Committee.

1.5 CTCAC. The term “CTCAC” means the California Tax Credit Allocation Committee.

1.6 Certificate of Occupancy. The term “Certificate of Occupancy” means a certificate issued by the Building and Safety Department, County of Santa Barbara (acting on behalf of and through the City of Buellton) of a certificate signifying completion and approval for initial occupancy of the Project.

1.7 City. The term “City” means the City of Buellton and its permitted successors and assigns.

3 1.8 County Housing Income and Price Guidelines. The term “County Housing Income and Price Guidelines” means the Housing and Price Guidelines for Santa Barbara County as determined by HUD and Santa Barbara County’s Housing Element Implementation Guidelines, and annually updated. The 2022 County Housing and Income Guidelines are attached hereto as Exhibit E.

1.9 Effective Date. The term “Effective Date” means the date of the recordation of this Agreement in the Official Records of Santa Barbara County, California.

1.10 Family. The term “Family” means two or more individuals, whether or not they are related by blood, marriage, or adoption, who live together in a dwelling as a single housekeeping unit.

1.11 Household. The term “Household” means an individual, or two (2) or more Persons related by blood, marriage, or adoption, or two or more unrelated Persons, excluding employed servants or paid live-in companions, residing together as a single housekeeping unit in a dwelling.

1.12 Household Income. The term “Household Income,” as further qualified in Exhibit D attached hereto, means total anticipated income of an Applicant or a Household occupying an Affordable Unit for the twelve (12) month period following the date of application or income re-certification.

1.13 HUD. The term “HUD” means the Department of Housing and Urban Development of the United States of America, or its designee.

1.14 Income Categories. The term “Income Categories” means the following categories:

1.14.1 Low Income Category. The “Low Income Category” encompasses all Qualified Tenants whose Household Incomes qualify as Low Income.

1.14.2 Very Low Income Category. The “Very Low Income Category” encompasses all Qualified Tenants whose Household Incomes qualify as Very Low Income.

1.15 Initial Lease Up Period. The term “Initial Lease Up Period” has the meaning ascribed to it in Section 5.2.4.

1.16 Initial Selection List. The term “Initial Selection List” has the meaning ascribed to it in Section 5.2.2.

1.17 Initial Selection Period. The term “Initial Selection Period” has the meaning ascribed to it in Section 5.2.1.

1.18 Lease. The term “Lease” has the meaning ascribed to it in Section 5.5.

4 1.19 Low Income. The term “Low Income” encompasses all Applicants whose Household Incomes do not exceed the qualifying limits for Low Income households set forth in the County Income and Price Guidelines.

1.20 Market Rate Unit. The term “Market Rate Unit” means a dwelling unit within the Project that is not reserved for occupancy by a Qualified Tenant or is not otherwise subject to the affordability covenants set forth in this Agreement.

1.21 Marketing Plan. The term “Marketing Plan” has the meaning ascribed to it in Section 5.3.

1.22 Maximum Allowable Rent. The term “Maximum Allowable Rent” means the maximum allowable rent for each Income Category set forth in the County Housing and Income Guidelines.

1.23 Moderate Income. The term “Moderate Income” encompasses all Applicants whose Household Incomes do not exceed the qualifying limits for Upper-Moderate Income households set forth in the County Income and Price Guidelines.

1.24 Owner. The term “Owner” means Palm Communities and its successors and assigns.

1.25 Parties. The term “Parties” means and includes the City and the Owner. Within this context, the definitions set forth below also apply throughout this Agreement:

1.26 Person. The term “Person” means any individual, Family, partnership, corporation, or association.

1.27 Project. The term “Project” has the meaning ascribed to it in Paragraph B of the Recitals.

1.28 Property. The term “Property” has the meaning ascribed to it in Paragraph A of the Recitals.

1.29 Qualified Tenant. The term “Qualified Tenant” means an Applicant whose Household Income meets the occupancy restrictions specified in Section 6 hereof. A tenant whose Household size, irrespective of Housing Income, exceeds the maximum number per Persons appearing in the County Housing and Income Guidelines for the corresponding number of bedrooms shall not be a Qualified Tenant for the purpose of this Agreement.

1.30 Rent. The term “Rent” means the total of all rent payable to the Owner for the use and occupancy of the Affordable Units and the land and facilities associated therewith plus the Utility Allowance.

1.31 Subject Property. The term “Subject Property” means the separate parcel comprising a portion of the Property on which the Affordable Units are located, as set forth in the Tentative Map.

5 1.32 Term. The term “Term” means the term of this Agreement set forth in Section 3.

1.33 Unit Type. The term “Unit Type” means the size and amenities of a particular dwelling relative to number of bedrooms, quantity of baths, total square footage and similar distinguishing factors.

1.34 Very Low Income. The term “Very Low Income” encompasses all Applicants whose Household Incomes do not exceed the qualifying limits for Very-Low Income households set forth in the County Income and Price Guidelines.

2. Purpose and Scope of Agreement. Owner understands that the purpose and objective of this Agreement is to obtain and provide housing affordable to income eligible families by creating conditions, covenants and restrictions upon and subject to which the Affordable Units shall be occupied, owned, maintained, held, leased, rented, sold, and conveyed.

3. Term. This Agreement shall commence on the Effective Date and shall remain in effect for fifty-five (55) years thereafter, provided that the Project is completed.

4. Affordability Covenants.

4.1 Restriction. During the Term, Owner agrees to rent or lease or make available for rent or lease the Affordable Units to Qualified Tenants on the terms and subject to the conditions set forth in this Agreement. From and after the Term, Owner shall have the right to rent or lease or make available for rent or lease the Affordable Units as Market Rate Units.

4.2 Reservation. At initial occupancy, twenty-four (24) of the Affordable Units shall be reserved for Very Low Income Households and twenty-four (24) of the Affordable Units shall be reserved for Low Income Households. After the initial occupancy, the provisions of Section 6 shall apply.

4.3 Exceptions. Exceptions from the terms of this Agreement, including deviations from established eligibility criteria, may be granted by the City when, because of special circumstances applicable to the Subject Property or Qualified Tenants, the strict application of such terms conflict with the underlying purpose of this Agreement. Any exception granted shall be subject to such conditions as will assure that the adjustment thereby authorized shall appropriately implement purposes and objectives of this Agreement. Examples of where a reduction, adjustment or waiver may be appropriate include, but are not limited to, use of Section 8 Certificates or Vouchers and similar special purpose government and non-profit programs with statutory constraints that conflict with the technical requirements of this Agreement.

5. Qualifying Tenants.

5.1 Qualifications. The Affordable Units must be occupied, or reserved for occupancy, by certified Very Low Income Households or Low Income Households, as set forth herein. Owner shall rent or lease Affordable Units only to person(s) who are certified by Owner to be Qualified Tenants. To be a Qualified Tenant of an Affordable Unit, the Household Income of the applicant must be certified as provided in Section 5.4, below, and must satisfy the property manager’s standard tenant selection criteria.

6 5.2 City Right to Lease.

5.2.1 Initial Selection Period. Deleted

5.2.2 Initial Selection List. Deleted

5.2.3 Owner Right to Lease. If the Initial Selection List does not include the number of Qualified Tenants in the applicable income category to occupy all of the Affordable Units, Owner shall have the right to select Qualified Tenants for the remaining available Affordable Units in accordance with the terms of this Agreement.

5.2.4 Rental Loss Compensation. The City shall pay to Owner rental loss compensation in the amount equal to the Rent which would have been received by Owner from the rental of the Affordable Units at the Maximum Allowable Rent rate assuming full occupancy of the Affordable Units, less the amount of any Rent actually received from the Qualified Tenants during the Initial Selection Period and for the thirty (30) day period thereafter (the “Initial Lease Up Period”).

5.2.5 Owner Not Responsible. Owner shall have no responsibility for verifying the qualification or eligibility requirements for any Qualified Tenants selected by the City.

5.2.6 Execution of Leases. Each Qualified Tenant selected by the City as provided in this Section shall be obligated to execute and deliver to Owner a Lease prior to expiration of the Initial Lease Up Period. In the event that any Qualified Tenant on the Initial Selection List fails to deliver to Owner a signed Lease, together with all of the payments required to be paid upon Lease execution, prior to the Initial Lease Up Period, Owner shall have no obligation to lease any Affordable Unit to such Qualified Tenant and Owner shall have the right to select an alternative Qualified Tenant for such Affordable Unit in accordance with the terms of this Agreement.

5.3 Marketing. Owner shall rent or lease and offer for rent or lease the Affordable Units in compliance with the Marketing Plan attached hereto as Exhibit B (the “Marketing Plan”).

5.4 Income Certification. Owner shall obtain and maintain on file, immediately prior to initial occupancy and not less frequently than annually thereafter, income certifications, in the form attached hereto as Exhibit C, completed and executed by each Qualified Tenant renting an Affordable Unit. In addition, Owner shall have the right to include provisions in the Leases requiring the Qualified Tenants or current occupants to provide to Owner updated income certifications in the event of any change in Household Income applicable to the Affordable Unit occupied by such Qualified Tenant or current occupant. In determining whether an Applicant or current occupant is a Qualified Tenant, as well as the income category and Maximum Allowable Rent applicable to each Qualified Tenant, Owner shall comply with the Income Guidelines set forth in Exhibit E attached hereto. Copies of tenant income certifications shall be available to the City upon request.

5.5 Lease. Each Lease of an Affordable Unit to Qualified Tenants shall be on the then current California Association of Realtors form of Residential Lease or Month to Month Rental

7 Agreement, or such form of lease as is mutually acceptable to the City and Owner and meets the requirements of the Housing Authority of Santa Barbara County (the “Lease”). The current form of the Lease is set forth in Exhibit F attached hereto. Each Lease shall be on a month to month term and Owner shall have the right to extend the term of any Lease and make other modifications and amendments to any Lease so long as such modifications or amendments do not violate or conflict with the terms of this Agreement.

5.6 Authorized Occupancy. The right of occupancy of each Affordable Unit shall be exclusive to Qualified Tenants and such occupancy shall be limited to the members of the Household whose names shall be expressly stated in the Lease. No occupant shall assign the Lease, nor sublet or transfer possession of the Affordable Unit, nor give accommodation to boarders or lodgers, nor support, permit, use or maintain the Affordable Unit, any purpose other than as a private dwelling for the exclusive use and benefit of the named members of the Household in the Lease.

5.7 Replacement Units. The forty-eight (48) very low income apartments within the project are considered to be “replacement units” pursuant to the City’s Affordable Housing Ordinance (Buellton Municipal Code Chapter 19.16) for the motels with long-term residents at the following addresses:
a. Farmhouse Motel and adjacent (588 and 590 Avenue of Flags) b. San Marcos Motel (536 Avenue of Flags)
c. Red Rose Court (435 Avenue of Flags)
d. Country Lane Motel (412 Avenue of Flags)

6. Maximum Allowable Rent.

6.1 Calculation and Amount. The maximum monthly Rent that may be charged by the Owner for use and occupancy of Affordable Units by Qualified Tenants shall be the amount set forth in the then current County Housing and Income Guidelines.

6.2 Increased Income of Occupants. In the event, upon re-certification of income, the Owner determines a Qualified Tenant renting an Affordable Unit no longer qualifies in the Income Category for which such Qualified Tenant was previously classified but is still deemed to be a Qualified Tenant: (i) the Affordable Unit occupied by such Qualified Tenant shall be reclassified to the new Income Category that corresponds to such Qualified Tenant; (ii) rent may be increased to the applicable rent for the higher Income Category of such Qualified Tenant upon ninety (90) days written notice to such Qualified Tenant; and (iii) the Owner shall rent the next available Affordable Unit to a Qualified Tenant whose income qualifies for the same Income Category (prior to reclassification) of the Qualified Tenant whose Income Category was reclassified. In the event, upon re-certification of income, the Owner determines an occupant is no longer a Qualified Tenant by virtue of income or Household size: (i) the occupant shall not be required to vacate the Affordable Unit unless the occupant has otherwise violated the terms or conditions of its tenancy; (ii) rent may be increased to Market Rate upon the delivery of not less than thirty (30) days prior written notice to the occupant; and (iii) the Owner shall rent the next

8 available Market Rate Unit to a Qualified Tenant whose income qualifies for the same Income Category (prior to reclassification) of the Qualified Tenant whose Income Category was reclassified.

6.3 Decreased Income of Occupants. In the event, upon re-certification of income, the Owner determines that the current income of a Qualified Tenant falls within an Income Category that is lower than previously certified: (i) the Affordable Unit occupied by such Qualified Tenant shall continue to be classified according to the Income Category that previously applied; (ii) rent may be charged at rate that is no greater than the maximum allowable for the Income Category that previously applied; and (iii) the Owner shall offer the Qualified Tenant \the opportunity to rent the next available Affordable Unit that corresponds to the Qualified Tenant’s Income Category.

6.4 Rent Increases. Rents on any Affordable Unit may be increased, upon a minimum of thirty (30) days prior written notice to the Qualified Tenant, including pursuant to Section 6.3 or concurrently with or subsequent to an increase in Area Median Income as set forth in the then current County Housing and Income Guidelines. The rents charged following such an increase, or upon a vacancy and new occupancy by a Qualified Tenant, shall not exceed the Maximum Allowable Rent set forth in the County Housing and Income Guidelines.

6.5 Security Deposits. The Owner shall not require rental deposits in excess of two (2)-month’s rent for an Affordable Unit, nor shall such deposits exceed the amount charged for a Market Rate Unit.

6.6 Updating of Maximum Allowable Rents. The City will provide to Owner updated County Housing and Income Guidelines promptly following the publication thereof.

6.7 Management. Owner is responsible for all management functions with respect to the Subject Property, including without limitation the selection of Tenants, certification of household size and income, evictions, collection of rents and deposits, maintenance, landscaping, routine and extraordinary repairs, replacement of capital items, and security. Such management functions shall be performed by Owner or by an experienced, professional management company or organization designated by Owner. The City shall have no responsibility over management of the Subject Property.

7. Monitoring Fees. The City shall be entitled to a reasonable annual monitoring fee in an amount equal to its reasonable out of pocket costs and expenses incurred in connection with any reviews or inspections of the Affordable Units and Owner’ management practices to determine Owner’s compliance with the terms of this Agreement.

8. Non-Discrimination. The Owner shall not discriminate or segregate in the use, enjoyment, occupancy, conveyance, lease, sublease, or rental of Units on the basis of race, color, ancestry, national origin, religion, sex, sexual preference, age, marital status, family status, source of income, physical or mental disability, Acquired Immune Deficiency Syndrome (AIDS) or AIDS-related conditions (ARC), or any other arbitrary basis. The Owner shall include a statement in all advertisements, notices and signs for the availability of Units for rent to the effect that the Owner is an Equal Housing Opportunity Provider.

9 9. General Provisions.

9.1 Successors and Assigns. This Agreement shall bind and the benefit hereof shall inure to the Owner and its successors in interest and assigns, and to the City and its successors, designees, or assigns, for the term hereof. The Subject Property is held and hereafter shall be held, conveyed, hypothecated, encumbered, leased, rented, used, and occupied subject to the covenants, conditions, restrictions and limitations of this Agreement. All of the herein-stated covenants, conditions, restrictions and limitations are intended to constitute both equitable servitudes and covenants running with the land. Any purchaser of or successor in interest, transferee or assignee to the Subject Property or of any portion of or interest in the Subject Property, no matter how that interest is acquired, shall be deemed to have taken title with knowledge of this Agreement and to have personally covenanted, consented to and accepted the covenants, conditions, restrictions and limitations set forth herein. Any lessee of the Subject Property shall be subject to the restrictions of this Agreement, by the execution of a rental agreement or lease or by taking possession of any Affordable Unit on the Subject Property, whichever occurs first, and shall also be deemed to have knowledge of this Agreement and to have personally covenanted, consented to, and accepted the covenants, conditions, restrictions, and limitations set forth herein. The terms and conditions of this Agreement shall not apply to and be enforceable against a former owner of the Subject Property, unless the former owner was in breach of this Agreement at the time of transfer. A former owner shall not be responsible or liable for any breach occurring after a transfer of the Subject Property.

9.2 Notices. All notices (other than telephone notices), certificates or other communications (other than telephone communications) required or permitted hereunder shall be sufficiently given and should be deemed given when personally delivered or when sent by telegram, or when sent by facsimile transmission (if properly confirmed in writing), or forty-eight (48) hours following mailing by registered or certified mail, postage prepaid, or twenty-four hours following transmission of such notice by express mail, Federal Express or similar carriers, addressed as follows:

If to the City:

City of Buellton
Attn: City Manager
107 W. Highway 246
Buellton, California 92427
If to the Owner:

Palm Communities
100 Pacifica, Suite 203
Irvine, CA 92618

10 With a copy to:

Sabelhaus & Strain LLP
1724 10th St. Suite 110
Sacramento, CA 95811
Attn: Patrick Sabelhaus

9.3 Entire Agreement. This Agreement constitutes the entire and final agreement and understanding between the Parties with respect to the subject matter hereof and thereof and supersedes all prior and contemporaneous agreements relating to the subject matter hereof. The Exhibits referred to herein are integral parts hereof and are hereby made a part of this Agreement.

9.4 Severability. If any term, covenant or condition contained herein shall, to any extent, be invalid or unenforceable in any respect under the laws governing this Agreement, the remainder of this Agreement shall not be affected thereby, and each term, covenant or condition of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

9.5 Amendments. This Agreement may be amended only by a written instrument executed by the City and Owner or their successors in title, and duly recorded in the real property records of the County of Santa Barbara, California.

9.6 Recording and Filing. The City and Owner shall cause this Agreement, and all amendments and supplements to it, to be recorded in the Official Records of the County of Santa Barbara.

9.7 Waiver. Neither Party hereto shall be deemed to have waived any of its rights or remedies hereunder unless such waiver be in writing and signed by said Party or its duly authorized representative, and then only to the extent specifically set forth therein. A waiver of one event shall not be construed as continuing or a bar or waiver of any right or remedy on a subsequent event.

9.8 Attorneys’ Fees. If any action or proceeding is brought to enforce, interpret, or set aside this Agreement, the prevailing party shall be entitled to recover all costs and attorneys’ fees incurred in connection with such action or proceeding.

9.9 Choice of Law; Consent to Exclusive Jurisdiction. This Agreement shall be in all respects governed by and construed and enforced in accordance with Federal Law or the laws of the State of California, including all matters of construction, validity and performance, without regard to choice of law rules which would otherwise require reference to the laws of some other jurisdiction. The Parties hereby consent to the jurisdiction of the Federal Law or The United States Federal District Court for the Central District of California and agree that such courts shall have exclusive jurisdiction over any suit, claim or cause of action arising out of or related to this Agreement.

9.10 Relationship of the Parties. Neither Party is the legal representative or agent of the other Party for any purpose whatsoever and neither party shall have the power or authority to assume or create, in writing or otherwise, any obligation or responsibility of any kind, express or

11 implied, to transact business, to make any warranty or otherwise to act in any manner in the name of or on behalf of the other Party. This Agreement shall not be construed as constituting or creating a partnership between the Parties or as creating any other form of legal association between the parties which would impose liability upon one Party for the act or the failure to act of the other Party.

9.11 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument.

9.12 Conflict with CDLAC/CTCAC Regulations. In the event that any of the provisions of this Agreement conflict with any regulations, restrictions, covenants, obligations, duties or other provisions imposed by CDLAC or CTCAC with regard to this project pursuant to any CTCAC or CDLAC regulatory agreement currently in effect (the “Committee Regulatory Agreements”), the Committee Regulatory Agreements shall supersede this Agreement.

9.13 Exhibits. The following Exhibits are attached to this Agreement and incorporated into this Agreement:

Exhibit A: Legal Description of Property
Exhibit B: Marketing Plan
Exhibit C: Income Certifications of Qualified Tenants
Exhibit D: Owner Income Guidelines
Exhibit E: County Housing and Income Guidelines
Exhibit F: Lease
[Signatures on Following Page]

12 IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the Effective Date.
“OWNER” “CITY”
CITY OF BUELLTON, a general law city
By: ________________________________ By: ________________________________ Scott Wolfe,
City Manager

Date: ________________ Date: ______________
[Signatures mut be Acknowledged]

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STATE OF CALIFORNIA )
)
COUNTY OF __________________ )
On ____________________, before me, ___________________________, Notary Public, personally appeared ______________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
______________________________________
Name: ______________________________
Notary Public
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

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STATE OF CALIFORNIA )
)
COUNTY OF __________________ )
On ____________________, before me, ___________________________, Notary Public, personally appeared ______________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
______________________________________
Name: ______________________________
Notary Public
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

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EXHIBIT A
Legal Description of Property
.

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EXHIBIT B
Marketing Plan
The following is a summary of Owner’s Marketing Plan for the initial leasing of the Affordable Units.

A. Owner will work with Area Housing Authority to offer units in the initial leasing to qualified long-term residents of motels along Avenue of Flags identified in Section 5.7 of this Agreement.

B. Owner will advertise the Project in, at least, one newspaper of general circulation.

C. The Agreement to Provide Affordable Housing binds Owner to this Marketing Plan.

D. Project advertising shall conform to the requirements of the Fair Housing Act.

As vacancies in the Affordable Units become available, Owner shall fill such vacancies in accordance with the terms of this Agreement.

A. Owner will advertise the Project in, at least, one newspaper of general circulation.

B. The Agreement to Provide Affordable Housing binds Owner to this Marketing Plan.

C. Project advertising shall conform to the requirements of the Fair Housing Act.

EXHIBIT C
Applicant’s name: _____________________ Date: _______________ Number of people in household: _____ Receipt Number ______

CITY OF BUELLTON

AFFORDABLE HOUSING PROGRAMS

INCOME CERTIFICATION APPLICATION

To be eligible to participate in the City’s Affordable Housing Program, applicants must first receive Income Certification verification.

There is a one-time application screening fee of $82 payable in Cashier’s Check or Money Order to the City of Buellton. City staff monitor all income information provided throughout the application process and after the homes are occupied. Therefore, it is very important that all information contained herein is accurate, timely, and complete.

Application Checklist
Read Carefully: This application packet must be signed and submitted with all verifications and other forms.

In order for applications to be considered “complete” and accepted for consideration, all relevant supporting documentation must accompany each of the following check-listed items. The Planning Department reserves the right to ask for additional documents and information as deemed necessary to accurately assess applicant’s eligibility. Please check each box or N/A as you complete each section.  Non Refundable Application Screening Fee of $82 by money order or cashier’s check payable to the City of Buellton.
 Completion of General Household Information, Pages 2 and 3  Signature on Completed Income Certification Application, Page 4  Signature on Applicant Authorization to Release Form, Page 5  Signature on Appeal Procedure Form, Page 7
 2 Years Federal and State Tax Returns For Applicant and Each Contributor Listed on Line 7  Copies of all pay stubs for the last 30 days For Applicant and Each Contributor Listed on Line 7  Copies of all members of the household’s photo identifications must be submitted with application (Birth Certificate and S.S. Card for children) Applications will only be accepted
Monday through Friday 8:00 a.m. - 5:00 p.m.

City of Buellton Planning Department
107 West Highway 246
Buellton, CA 93427

Applicant’s name:______________________ Date:_____________

GENERAL HOUSEHOLD INFORMATION
All applicants are required to provide the following information. It is important that the responses supplied accurately reflect documentation provided. If there are additional contributors to the household’s income, please provide the same information as required in Item #9 as an attachment.

1. Applicant’s Name: __________________________________________________________ Age: __________ Social Security No.:__________________________________________

2. Current Address: ____________________________________________________________

3. Telephone Number: _________________________________________________________

4. Number of Years In County: __________________________________________________

5. Name of Affordable Housing Development: ______________________________________

6. Other Household Members: (Provide supporting documentation, picture ID, Social Security, etc.)
NAME AGE SOCIAL SECURITY# RELATIONSHIP
_________________________________________________________________________________________ _________________________________________________________________________________________ _________________________________________________________________________________________ _________________________________________________________________________________________ _________________________________________________________________________________________ _________________________________________________________________________________________ _________________________________________________________________________________________

7. How many members of the household contribute to the household’s income: ____________ If more than two (2) please provide information as an additional attachment as per instructions.

Applicant’s name:______________________ Date:_____________

8. FIRST CONTRIBUTOR:

Name: __________________________________________________________________________ Employer’s Name (List all employers if more than one): __________________________________ Income (List income from each employer): _____________________________________________ Total Income: ____________________________________________________________________

9. SECOND CONTRIBUTOR:

Name: __________________________________________________________________________ Employer’s Name (List all employers if more than one): __________________________________ Income (List income from each employer):_____________________________________________ Total Income: ____________________________________________________________________

10. Income Level: ______________________________________________________________ 2022 AFFORDABILITY CHART
Household Size
(persons in household)
Very Low
(0-50%)
Low
(50-80%)
Moderate
(80-120%)
1 $35,050 $56,050 $84,100
2 $40,050 $64,050 $96,100
3 $45,050 $72,050 $108,100
4 $50,050 $80,100 $120,100
5 $54,050 $86,500 $129,750
6 $58,050 $92,900 $139,350
7 $62,050 $99,300 $148,950
8 or more $66,050 $105,700 $158,550

Applicant’s name:______________________ Date:_____________

CERTIFICATION OF ACCURACY AND COMPLETENESS: Signatures must be completed for each line. If one or more of the parties are the same, please re-sign the applicable line.

I hereby declare under penalty of perjury that the information contained in this application and all attached materials are correct, true, and complete. I acknowledge and agree that the City of Buellton is relying on the accuracy of this information and my representations in order to process this application and that any homes sold/rented by the City may be rescinded if it is determined that any information and materials submitted are not true and correct. I further acknowledge that I may be liable for any costs associated with this, including, but not limited to, any litigation costs.

Signature _____________________________________ Date ____________________________ Applicant
Signature______________________________________ Date ____________________________ Applicant
Signature _____________________________________ Date ____________________________ Adult Household Member
Signature _____________________________________ Date ____________________________ Adult Household Member

Applicant’s name:______________________ Date:_____________

APPLICANT AUTHORIZATION TO RELEASE
Purpose: Your signature on this City Affordable Housing Program Authorization to Release form, and the signatures of each member of your household who is 18 years of age or older, authorizes a third party to release information to the City of Buellton relative to your eligibility and participation in its Affordable Housing Program.

Privacy Act Notice Statement: The City of Buellton is requiring the collection of information derived from this form to determine an applicant’s eligibility to participate in the City’s Affordable Housing Program. This information will be used to establish applicant income level; to protect the City’s financial interests; and to verify the accuracy of the information furnished by the applicant.

It may be released to appropriate Federal, State and local agencies where relevant to civil, criminal, or regulatory investigators, and to prosecutors. Failure to provide any information may result in an applicant being deemed ineligible to participate in the program. The City is authorized to ask for this information by the National Affordable Housing Act of 1990.

Instructions: Each adult member of the household must sign the Authorization to Release Form prior to Income Certification for participation in the City’s Affordable Housing Program. The City also reserves the right to monitor the program on an ongoing basis in order to determine conformity with the rules and regulations of it’s Affordable Housing Programs.

Authorization: In signing below, I understand that the City of Buellton may make inquiries regarding all sources of my household’s income, all sources of my household’s assets, Gift Letter donation sources, as well as all other relevant financial information requiring program participation for a period of three (3) years after close of escrow. I authorize the City of Buellton to request information from third parties about me and my household that is pertinent to eligibility for participation in its Affordable Housing Program. I also authorize these third parties to release said information to the City of Buellton. I acknowledge that:
1) A photo copy of this form is as valid as the original; 2) I have the right to review the file and the information received using this form (with a person of my choosing accompanying me);
3) I have the right to copy information from this file and to request correction of information I believe inaccurate;
4) All adult members will sign this form and cooperate with the owner in this process. ______________________________________ ______________________________ Applicant Signature Date
______________________________________ ______________________________ Co-Applicant Signature Date
_____________________________________ ________________________________ Adult Household Member Signature Date
_____________________________________ ________________________________ Adult Household Member Signature Date

Applicant’s name:______________________ Date:_____________

CITY OF BUELLTON

AFFORDABLE HOUSING PROGRAMS

APPEAL PROCEDURES
The $82 application fee is non-refundable if your application is denied.

You should make every effort to determine that your income and total assets will qualify before submitting an application for income certification.

Maximum Allowable Household Incomes for 2022
(by household size and income category)
Household Size
(persons in household)
Very Low
(0-50%)
Low
(50-80%)
Moderate
(80-120%)
1 $35,050 $56,050 $84,100
2 $40,050 $64,050 $96,100
3 $45,050 $72,050 $108,100
4 $50,050 $80,100 $120,100
5 $54,050 $86,500 $129,750
6 $58,050 $92,900 $139,350
7 $62,050 $99,300 $148,950
8 or more $66,050 $105,700 $158,550
Be sure that all the information requested is included with your application. If you omit any necessary information, you may be required to pay a second application fee.

If your application is denied you may appeal the denial only under the following terms:
 The person appealing must be the person or persons applying (not another party).  The appeal must be in writing and received within ten days of the date of the Income Certification denial letter from the Planning Department. The appeal must be based on the original submittal to The Planning Department and must demonstrate in writing a factual error of the calculation of income. The Planning Department must have made such errors as opposed to incorrect or incomplete submittals by the applicant  The Planning Department’s decisions on income certification appeals are final.

Appeals must be submitted in writing to:

Buellton Planning Department
Affordable Housing – Appeal Request
Attention: Planning Director
P.O. Box 1819
Buellton, CA 93427

Applicant’s name:______________________ Date:_____________

I HAVE READ AND AGREE TO THE ABOVE APPEAL PROCEDURES
_____________________________________ ________________________________ Signature Date
_____________________________________ ________________________________ Signature Date

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EXHIBIT D
Owner Income Guidelines

1. Income Determination. As defined in Section 1.10 of this Agreement, Household Income encompasses the total anticipated income of an Applicant for the twelve (12) month period following the date of application, or in the case of a Qualified Tenant, the total anticipated income from the twelve (12) month period following the date of income re-certification. A different time frame may be used to compute income where circumstances particular to a Household make in impractical to accurately forecast income over a twelve (12) month period. Except as otherwise provided herein, all payments from all sources received by the head of Household and spouse (including a Family head who is temporarily absent) and each additional member of the Family who is at least eighteen (18) years of age shall be included in the annual income of a Household.

Income shall include, but not be limited to, the sources listed below.

2. Employment Income. The gross amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonus. For self-employed Persons, income shall include the net amount received from operation of a business or profession or from rental of real or personal property (for this purpose, expenditures for business expansion, capital depreciation or amortization of capital indebtedness shall not be deducted to determine the net income from a business). Any withdrawal of cash or assets from the operation of a business or profession shall be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the Household. In general, income for self-employed Persons shall be based on the annual average sum earned over a two-year period immediately proceeding the date of application or income re-certification.

3. Supplemental Income. The full amount of periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts; payments in lieu of earnings, such as unemployment and disability compensation, worker’s compensation and severance pay; periodic and determinable allowances such as alimony and child support payments, and regular contributions or gifts received from Persons not residing in the dwelling; all regular pay, special pay and allowances of a member of the Armed Forces (whether or not living in the dwelling) who is head of the Household or spouse; and public assistance payments, provided, however, if such compensation includes an amount specifically designated for shelter and utilities which is subject to an adjustment by the public assistance City in accordance with the actual cost of shelter and utilities, the amount of public assistance income to be included as Household Income shall consist of: (i) the amount of the allowance or grant exclusive of the amounts specifically designated for shelter and utilities; plus (ii) the maximum amount which the public assistance City could in fact allow for the Family for shelter and utilities.

4. Income from Assets. Interest, dividends and net income of any kind from real or personal property. Expenditures for business expansion, capital depreciation or amortization of capital indebtedness shall not be deducted to determine the net income from a business. Any withdrawal of cash or assets from the operation of a business or profession shall be included in income, except

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to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the Household.

5. Assets. Where a Household has net assets of $5,000 or less, income from such assets shall be deemed to be the actual income from all assets, or an imputed income figure derived by applying a rate of three and one-half percent (3.5%) to all assets, whichever is greater. Where a Household has net assets in excess of $5,000, income shall include the actual amount of income, if any, derived from all of the net assets or five percent (5%) of the value of all such assets, whichever is greater. For purposes of these Income Guidelines, net Family assets means the value of equity in all real property (other than the Household’s principal residence), savings, stocks, bonds and other forms of capital investment. Excluded from the computation of net assets are: (i) retirement funds with penalties for early withdrawal; and (ii) the value of personal property such as furniture and automobiles.

6. Non-Recurring Income. Payments from the sources listed below shall not be considered as Household Income, provided, however, that such unexpended sums shall be considered to be Household assets and the income from such assets is includable as income.

6.1 Gifts and Medical Reimbursement. Casual, sporadic and irregular gifts, and amounts that are specifically received for, or are a reimbursement of, the cost of illness or medical care.

6.2 Settlement Income. Lump sum additions to Family assets consisting of governmental payments and compensation for losses including, but not limited to, insurance payments, deferred periodic payments of supplemental security income (SSI) or social security benefits that are received in a lump sum payment, and settlements for personal or property losses.

Inheritances, capital gains, gambling proceeds, lottery winnings and similar unearned income shall be included in the computation of Household Income.

6.3 Scholarships. Amounts for educational scholarships paid directly to the student or to the educational institution and amount paid by the United States Government to a Veteran for use in meeting the cost of tuition, fees and books, to the extent that such amounts are so used. Any amounts of such scholarships, or payments to Veterans not used for the aforesaid purposes of which are available for subsistence are to be included as income. This exclusion is applicable also to all part-time students and to a full-time student who is considered as head of Household or his or her spouse.

6.4 Special Government Compensation. The special pay to a serviceman head of household away from home and exposed to hostile fire; relocation payments made pursuant to Federal, State, or local relocation law, foster child care payments; payments for the care of foster adults (usually individuals with disabilities, unrelated to the tenant Family, who are unable to live alone), the value of coupon allotments for the purchase of food pursuant to the Food Stamp Act of 1964 which is excess of the amount actually charged the eligible Household; payments received under employment training programs funded by HUD or the State of California, payments received pursuant to participation in the volunteer programs under ACTION specifically including the National Volunteer Anti-Poverty Programs (i.e., VISTA, Service Learning Programs and Special Volunteer Programs), the National Older American Volunteer Programs for Persons aged sixty

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(60) and over (i.e., Retired Senior Volunteer Programs, Foster Grandparent Program, Older American Community Services Program), and the National Volunteer Program to Assist Small Business Experience, (i.e., Service Corps of Retired Executive and Active Corps of Executives).

7. Other Exclusions from Income. Payments from the following sources shall not be includable for the purpose of computing Household Income:

7.1 Adoption Assistance. Adoption assistance payments up to a maximum of $480 per adopted child per year, or such other limit prescribed by law.

7.2 Reparation Payments. Reparation payments made by a foreign government pursuant to claims filed under the laws of that government by Persons who are eligible for such reparation payments.

7.3 Tax Refunds. Refunds or rebates paid to Households under State or local law for the purpose of property tax relief on the dwelling unit they formerly owned and occupied.

7.4 Disabled Assistance. Amounts paid by a State City to a Household with a developmentally disabled Family member living at home to offset the cost of services and equipment needed to keep the developmentally disabled Family member at home.

7.5 Student Earnings. Earnings up to a maximum of $480 per year for each full time student 18 years of age or older, excluding the head of household and spouse, or such other limit prescribed by law.

8. Income Verification. At the time of initial application and not less than annually thereafter, data shall be obtained by the Owner and verified by such methods as may be necessary and reasonable to ensure full, true and complete information from which to base determinations of eligibility hereunder. Complete and accurate records of verification will be maintained and each Applicant and Qualified Tenant shall certify, under penalty of perjury, that all information furnished as part of the application is true and complete to the best of the Household’s knowledge and belief. Unless the Household reports a significant change in circumstances which would affect eligibility hereunder, such as becoming unemployed following a period of employment, resultant determinations of eligibility shall remain in full force and effect until the next updated certification is obtained. Income verification shall be performed in accordance with the standards and criteria set forth below.

8.1 Income Basis. If circumstances are such that it is not reasonably feasible to anticipate a level of income over a twelve (12) month period, a different basis may be used including, but not limited to, a shorter time frame of projection for a period of time preceding the date of application or income re-certification. Circumstances wherein an adjustment in the basis of determining Household Income is warranted include:

A. Unemployment. A Person is unemployed at the time of application or income re-certification and there are no anticipated prospects of re-employment.

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B. Self-Employment. A Person is self-employed and annual income is either inconstant due to fluctuations in business or undeterminable due to the recentness of such employment.

C. Seasonal and Temporary Employment. The conditions of employment and/or receipt of income are so unstable as to invalidate usual and normal standards of determination.

8.2 Employment Income. The following, although not all inclusive, represent the types of verification required for employment income:

A. Regular Employment. Letters and statements from employers, pay stubs and similar such receipts evidencing compensation, and/or IRS Tax Returns.

B. Self-Employment. Statements from Certified Public Accountants, notarized declarations, and/or IRS Tax Returns for three (3) years preceding the date of application or income re-certification.

8.3 Supplemental Income. The following, although not all inclusive, represent the types of verification required for supplemental income:

A. Social Security Benefits. Award letter, bank statement evidencing direct deposit of benefits, and/or verification statement from the Social Security Administration.

B. Aid to Families With Dependent Children. Award letter and/or verification statement from the Public Social Services City.

C. Child Support/Alimony. Copy of divorce papers and/or verification statement from ex-spouse.

D. Veterans Benefits. Award letter, statement from bank evidencing direct deposit of benefits, and/or verification statement from the Veterans Administration.

E. Disability Benefits. Award letter, bank statement evidencing direct deposit of benefits, and/or statement of verification of payer.

F. Unemployment Benefits. Award letter, bank statement evidencing direct deposit of benefits, and/or verification statement from the California State Department of Employment Development.

G. Retirement/Pension Benefits. Award letter, check stub, and/or verification statement from the Pension fund.

8.4 Income From Assets. The following, although not all inclusive, represent the types of verification required for income from assets:

A. Savings Account Interest. Copy of quarterly statement, IRS Tax Returns, and/or verification statement from bank or savings and loan.

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B. Dividends. Copy of statement with amount received and/or IRS Tax Returns.

C. Rental Income. Statement of net cash flow as verified by IRS Tax Returns.

8.5 Assets. The following, although not all inclusive, represent the types of verification required for assets:

A. Liquid Assets. (i.e., Savings and Checking Accounts). Copy of savings passbook showing current balance, month or quarter-ending bank statement, and/or verification statement from financial institution.

B. Marketable Securities. Copy of stock/bond and/or verification statement from benefactor.

C. Equity in Real Estate. Copy of deed verification statement from mortgagor as to mortgage balance together with Assessor’s valuation records, verified purchase price and/or independent appraisal.

8.6 Special Income Situations. A Household composed entirely of full-time students shall not be deemed eligible as a Qualified Tenant (regardless of income) unless the Household meets one of the following four exceptions: (i) all Household members are full-time students, and such students are married and file a joint tax return; (ii) the Household consists of single parents and their children, and such parents and children are not dependents of another individual; (iii) at least one member of the Household receives assistance under Title IV of the Social Security Act (i.e., AFDC assistance); or (iv) at least one member of the Household is enrolled in a job training program receiving assistance under the Job Training Partnership Act or similar federal, state, or local laws. In determining the category income relative to Household size, unborn children shall be included in the computation. Such inclusion shall be subject to verification of pregnancy (e.g., doctor’s statement).

2022 HOUSING INCOME AND PRICE GUIDELINES
May 13, 2022
Based on the median family income of $100,100 for Santa Barbara County as determined by the U.S. Department of Housing and Urban Development Maximum Allowable Household Incomes for 2022*
(by household size and income category)
Household Size
(# of people)
Very-Low
(0-50%)
Low
(50 – 80%)
Lower-Moderate
(81- 100 %)
Upper-Moderate
(101- 120%)
Middle-Median
(121 – 150%)
Workforce
(151-200%)
1 $35,050 $56,050 $70,050 $84,100 $105,100 $140,150
2 $40,050 $64,050 $80,100 $96,100 $120,100 $160,150
3 $45,050 $72,050 $90,100 $108,100 $135,150 $180,200
4 $50,050 $80,100 $100,100 $120,100 $150,150 $200,200
5 $54,050 $86,500 $108,100 $129,750 $162,150 $216,200
6 $58,050 $92,900 $116,100 $139,350 $174,150 $232,250
7 $62,050 $99,300 $124,100 $148,950 $186,200 $248,250
8 or more $66,050 $105,700 $132,150 $158,550 $198,200 $264,250 Maximum Allowable Sales Prices for 2022*
(by bedroom size and income category)
Number of
Bedrooms
Very-Low
(0-50%)
Low
(50 – 80%)
Lower-Moderate
(80- 100 %)
Upper-Moderate
(100- 120%)
Middle-Median
(120 – 150%)
Studio $105,100 $168,200 $210,200 $252,300 $315,300
1 $120,100 $192,200 $240,200 $288,300 $360,400
2 $135,100 $216,200 $270,300 $324,300 $405,400
3 $150,200 $240,200 $300,300 $360,400 $450,500
4 $159,500 $255,300 $319,100 $382,900 $478,600
Maximum Allowable Rents for 2022*
(by bedroom size and income category)
Number of
Bedrooms
Very-Low
(0-50%)
Low
(50 – 80%)
Lower-Moderate
(80- 100 %)
Upper-Moderate
(100- 120%)
Middle-Median
(120 – 150%)
Studio $750 $1,050 $1,350 $1,650 n/a
1 $ 940 $1,310 $1,690 $2,060 n/a
2 $1,130 $1,580 $2,030 $2,480 n/a
3 $1,330 $1,860 $2,390 $2,920 n/a
4 $1,500 $2,100 $2,700 $3,300 n/a
For Projects Approved Prior to November 23, 2004
*Please note that these numbers may be subject to change Spring 2023 4-1

F-4

EXHIBIT F
Lease
[See attached]

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: Andrea Keefer, Planning Director

Date: November 10, 2022
Subject: Direction to Staff Regarding Special Events - Enchanted Garden Holiday Lights Festival and Cowboy Christmas

BACKGROUND
Two separate special events are proposed in November and December at River View Park and the Willemsen Property. Each event will require access through Sycamore Drive and the two River View Park parking lots (east and west lots). There will be overlapping dates and times during which both events will be occurring concurrently. Without monitoring and good planning, this may cause potential traffic, parking and noise impacts to the surrounding area. Staff has been working with both event applicants to ensure that these issues are addressed and that both event coordinators are working together to resolve any issues prior to and during the events. Below is a description of each proposed event.

Enchanted Garden Holiday Lights Festival
A special event application has been filed by the Santa Ynez Botanic Garden for the “Enchanted Garden Holiday Lights Festival” event (Attachment 1 – Special Event Application). The event would occur at the Botanic Gardens and a portion of River View Park over three weekends (seven days total) in December; December 2nd, December 9th – 11th and December 16th-18th. The event organizers expect to draw approximately 500 to 800 guests per day. Parking for the event would be provided at the west parking lot at River View Park, and the lower Willemsen property. This event will occur each day from 5:00pm-8:00pm. Tickets are required to be purchased for this event, and the holiday lights tours will be provided at established intervals to limit the number of guests at the event at any one time.

Cowboy Christmas
A special event application has been filed by Bob Sweeney for the “Cowboy Christmas” event (Attachment 2 – Special Event Application). This event would occur on a portion of the Willemsen property, at the location of SYV Horseback Rides, over four weekends, starting November 25th through December 18th and the week of Christmas (December 19th – December 23rd). The event organizers expect to draw approximately 100-300 guests per

Special Events Page 2 November 10, 2022
day. Parking for the event would be provided at the east parking lot at River View Park.

This event will occur each day from 2:00pm-8:00pm. Tickets are required to be purchased for this event, and attendance at the event will occur at established intervals to limit the number of guests at the event at any one time.

There will be an overlap of both events occurring at the same time from approximately 5:00pm – 8:00pm on the following dates:

Friday, December 2nd
Friday, December 9th
Saturday, December 10th
Sunday, December 11th
Friday, December 16th
Saturday, December 17th
Sunday, December 18th

DISCUSSION
Current City Council policy sets limits on the number, size and frequency of special events at River View Park. Due to the location, size, duration and timing of both events, staff is requesting direction from City Council in determining whether or not both events are consistent with the general intent of established policies for special events at River View Park.

Pursuant to current policy adopted by the City Council, a maximum of 1 event per year can have 2,500 to 3,000 attendees, 4 events per year can have 1,000-2,500 attendees and 5 events per year can have fewer than 1,000 attendees. It is unclear if these thresholds were established based on the assumption that each event would occur on a single day. In this particular case, both events will occur over multiple days and weekends.

The Special Event application also indicates a requirement that a minimum of two weeks between two special events. In this case, these events will occur concurrently.

Staff Comments
In anticipation of additional uses and activities which are planned for the Willemsen property, City Council may have interest in re-evaluating the current event limits which are placed both on River View Park and on City-owned properties throughout the City.

With regards to the currently-proposed events, staff finds that as long as there is coordination between the two separate event coordinators as it relates to traffic and parking, potential impacts of these events can be kept to a minimum and can be allowed on a onetime basis. However, because these events are occurring concurrently, immediately adjacent to one another, and will be utilizing the same access point, staff is seeking input from City Council as to the interpretation of established policies related to time, frequency, and size of special events.

Special Events Page 3 November 10, 2022
If Council is in support of allowing both events to occur concurrently, staff recommends that both events are approved on a one-time basis and should any issues arise during the overlapping events, staff has the authority to seek any remedy necessary, including shutting down one or both events, until the issue(s) can be resolved.

RECOMMENDATION
That the City Council consider deviating from the adopted policy pertaining to size and frequency limits of events in River View Park, and direct staff as appropriate.

ATTACHMENTS

Attachment 1 – Special Event Permit Application – Enchanted Garden Attachment 2 – Special Event Permit Application – Cowboy Christmas

GUEST

PARKING
VENDOR

PARKING
LIGHT
TOUR

OVERFILL
GUEST

PARKING
ENTRY
EM. EXIT
EM. EXIT
EM. EXIT

VENDORS

VENDORS

FOOD CRT
RRs

VENDORSVENDORS

VENDORS

VENDORS
Arts & Cra Vendors
Entrance / Exit
Emergency Exit
Food Court
Restrooms
Entire event Area
Parking Areas
Light Tour Area
River View Park - 151 Sycamore Rd., Buellton
December 2nd / Dec. 9th - 11th / Dec. 16th - 18th
Contact: Andres Nuño (En Fuego Events)
805-448-7070 / info@sur eerfest.com
Parking Monitors

CITY OF BUELLTON
City Council Agenda Staff Report

City Manager Review: SW
Council Agenda Item No.: 12

To: The Honorable Mayor and City Council
From: Shannel Zamora, Finance Director
Meeting Date: November 10, 2022
Subject: Discussion and Direction on Options for Reducing the City’s CalPERS Pension Unfunded Accrued Liability (UAL)
______________________________________________________________________________

BACKGROUND
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. Each year CalPERS issues annual actuarial valuation reports. The measurement date lags a couple years. The most current valuation report was issued in July 2022 with a measurement date of June 30, 2021 for FY 2023-24 contributions (Attachments 1 and 2). For the Classic Plan, the minimum required UAL contribution is $198,158, and there is no contribution required for the PEPRA plan.

On April 14, 2022, City Council adopted Resolution No. 22-12 adopting a Pension Funding Policy. The purpose of this to ensure an adequate and appropriate approach to the monitoring and payment of the City’s CalPERS unfunded liabilities. This policy allows the usage of one-time funds 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.

The Pension Policy also states that the Finance Director shall submit a written report to City Council annually that covers:
a) The funded status of the City’s pension plan
b) Major events that have impacted the funded status of each of the CalPERS plan c) Major events that are known to or are likely to occur that may impact the funding status of each plan

CalPERS UAL Page 2 November 10, 2022
The City retains the service with GovInvest, Inc. to provide actuarial calculations, forecasting, and visualization and education services. GovInvest has developed a presentation that will cover the following (Attachment 3):
• Provide background information to the City Council and the public regarding the issues surrounding the CalPERS Unfunded Accrued Liability (UAL) • Provide the City Council with an understanding on the City’s current UAL funding status
• Provide options to mitigate the City’s UAL

1. Make required minimum UAL payment

2. Pay-off Current UAL via additional discretionary payment (ADP) – ~$1.6 million by the end of November 2022

3. Pay-Off Current UAL (~1.6 million) via ADP after 6-month investment

FISCAL IMPACT
The City of Buellton’s required contribution for Fiscal Year 2023/24 is $198,158 and will be reflected in the FY 2023/24 Budget. The ADP of about $1.6 million will require a budget amendment to the General Fund, Water and Wastewater Funds for FY 2022/23. The budgetary impacts are $1.28 million, $160 thousand, and $160 thousand, respectively.

RECOMMENDATION
Staff recommends that City Council consider paying off the current UAL by June 15, 2023 and in the interim, place $1.6 million into a Pension Reserve Fund and invest it in a 6- month treasury with the intent to pay-off the UAL at maturity plus any interest earned.

ATTACHMENTS
Attachment 1 – Classic Actuarial Valuation Report as of June 30, 2021 Attachment 2 – PEPRA Actuarial Valuation Report as of June 30, 2021 Attachment 3 – GovInvest Presentation

California Public Employees’ Retirement System
Actuarial Office
400 Q Street, Sacramento, CA 95811 | Phone: (916) 795-3000 | Fax: (916) 795-2744 888 CalPERS (or 888-225-7377) | TTY: (877) 249-7442 | www.calpers.ca.gov July 2022
Miscellaneous Plan of the City of Buellton (CalPERS ID: 7472860304) Annual Valuation Report as of June 30, 2021
Dear Employer,
Attached to this letter, you will find the June 30, 2021 actuarial valuation report for the rate plan noted above. Provided in this report is the determination of the minimum required employer contributions for fiscal year (FY) 2023-24. In addition, the report contains important information regarding the current financial status of the plan as well as projections and risk measures to aid in planning for the future.

Because this plan is in a risk pool, the following valuation report has been separated into two sections:
• Section 1 contains specific information for the plan including the development of the current and projected employer contributions, and
• Section 2 contains the Risk Pool Actuarial Valuation appropriate to the plan as of June 30, 2021.

Section 2 can be found on the CalPERS website (www.calpers.ca.gov). From the home page, go to “Forms & Publications” and select “View All”. In the search box, enter “Risk Pool” and from the results list download the Miscellaneous Risk Pool Actuarial Valuation Report for June 30, 2021.

Your June 30, 2021 actuarial valuation report contains important actuarial information about your pension plan at CalPERS. The plan actuary whose signature is in the Actuarial Certification is available to discuss.

Actuarial valuations are based on assumptions regarding future plan experience including investment return and payroll growth, eligibility for the types of benefits provided, and longevity among retirees. The CalPERS Board of Administration (board) adopts these assumptions after considering the advice of CalPERS actuarial and investment teams and other professionals. Each actuarial valuation reflects all prior differences be tween actual and assumed experience and adjusts the contribution requirements as needed. This valuation is based on an investment return assumption of 6.8%, which was adopted by the board in November 2021. Other assumptions used in this report are those recommended in the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021.

Required Contribution
The table below shows the minimum required employer contributions for FY 2023-24 along with estimates of the required contributions for FY 2024-25. Employee contributions other than cost sharing (whether paid by the employer or the employee) are in addition to the results shown below. The required employer contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.

Fiscal Year Employer Normal
Cost Rate
Employer Amortization of
Unfunded Accrued Liability
2023-24 13.26% $198,158
Projected Results
2024-25 13.3% $194,000

Miscellaneous Plan of the City of Buellton
(CalPERS ID: 7472860304)
Annual Valuation Report as of June 30, 2021

The actual investment return for FY 2021-22 was not known at the time this report was prepared. The projections above assume the investment return for that year would be 6.8%. To the extent the actual investment return for FY 2021-22 differs from 6.8%, the actual contribution requirements for FY 2024-25 will differ from those shown above. For additional details regarding the assumptions and methods used for these projections, please refer to the “Projected Employer Contributions” in the “Highlights and Executive Summary” section. This section also contains projected required contributions through FY 2028-29.

Changes from Previous Year’s Valuation
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for FY 2020-21. Since the return exceeded the 7.00% discount rate sufficiently, the CalPERS Funding Risk Mitigation policy allows CalPERS to use a portion of the investment gain to offset the cost of reducing the expected volatility of future investment returns. Based on the thresholds specified in the policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate of 0.20%, from 7.00% to 6.80%.

On November 17, 2021, the board adopted new actuarial assumptions based on the recommendations in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study reviewed the retirement rates, termination rates, mortality rates, rates of salary increases , and inflation assumption for public agencies. These new assumptions are incorporated in this actuarial valuation and will impact the required contribution for FY 2023-24. In addition, the board adopted a new strategic asset allocation as part of its Asset Liability Management process. The new asset allocation along with the new capital market assumptions and economic assumptions support a discount rate of

6.80%. This includes a reduction in the price inflation assumption from 2.50% to 2.30%.

Besides the above noted changes, there may also be changes specific to the plan such as contract amendments and funding changes.

Further descriptions of general changes are included in the “Highlights and Executive Summary” section and in Appendix A of the Section 2 report, “Actuarial Methods and Assumptions.” Questions
We understand that you might have questions about these results , and the plan actuary whose signature is on the valuation report is available to discuss. If you have other questions, you may call the Customer Contact Center at (888)- CalPERS or (888-225-7377).

Sincerely,

SCOTT TERANDO, ASA, EA, MAAA, FCA, CFA
Chief Actuary

Actuarial Valuation
as of June 30, 2021
for the
Miscellaneous Plan
of the
City of Buellton
(CalPERS ID: 7472860304)
Required Contributions
for Fiscal Year
July 1, 2023 - June 30, 2024

Table of Contents
Section 1 – Plan Specific Information
Section 2 – Risk Pool Actuarial Valuation Information

Section 1
C A L I F O R N I A P U B L I C E M P L O Y E E S ’ R E T I R E M E N T S Y S T E M Plan Specific Information
for the
Miscellaneous Plan
of the
City of Buellton
(CalPERS ID: 7472860304)
(Rate Plan ID: 1722)

Rate Plan belonging to the Miscellaneous Risk Pool
Table of Contents
Actuarial Certification 1
Highlights and Executive Summary
Introduction 3
Purpose of Section 1 3
Required Contributions 4
Additional Discretionary Employer Contributions 5
Plan’s Funded Status 6
Projected Employer Contributions 6
Other Pooled Miscellaneous Risk Pool Rate Plans 7
Cost 8
Changes Since the Prior Year’s Valuation 9
Subsequent Events 9
Assets and Liabilities
Breakdown of Entry Age Accrued Liability 11
Allocation of Plan’s Share of Pool’s Experience/Assumption Change 11 Development of Plan’s Share of Pool’s Market Value of Assets 11 Schedule of Plan’s Amortization Bases 12
Amortization Schedule and Alternatives 14
Employer Contribution History 16
Funding History 16
Risk Analysis
Future Investment Return Scenarios 18
Discount Rate Sensitivity 19
Mortality Rate Sensitivity 19
Maturity Measures 20
Maturity Measures History 21
Hypothetical Termination Liability 22
Participant Data 23
List of Class 1 Benefit Provisions 23
Plan’s Major Benefit Options 24

CALPERS ACTUARIAL VALUATION - June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 1 Actuarial Certification
To the best of our knowledge, this report, comprising of Sections 1 and 2, is complete and accurate and contains sufficient information to disclose, fully and fairly, the funded condition of the Miscellaneous Plan of the City of Buellton and satisfies the actuarial valuation requirements of Government Code section 7504. This valuation is based on the member and financial data as of June 30, 2021 provided by the various CalPERS databases and the benefits under this plan with CalPERS as of the date this report was produced. Section 1 of this report is based on the member and financial data for City of Buellton, while Section 2 is based on the corresponding information for all agencies participating in the Miscellaneous Risk Pool to which the plan belongs.

As set forth in Section 2 of this report, the pool actuaries have certified that, in their opinion, the valuation of the Miscellaneous Risk Pool has been performed in accordance with generally accepted actuarial principles consistent with standards of practice prescribed by the Actuarial Standards Board, and that the assumptions and methods are internally consistent and reasonable for the risk pool as of the date of this valuation and as prescribed by the CalPERS Board of Administration according to provisions set forth in the California Public Employees’ Retirement Law.

Having relied upon the information set forth in Section 2 of this report and based on the census and benefit provision information for the rate plan, it is my opinion as the plan actuary that the Unfunded Accrued Liability amortization bases as of June 30, 2021 and employer contribution as of July 1, 2023 have been properly and accurately determined in accordance with the principles and standards stated above.

The undersigned is an actuary who satisfies the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States with regard to pensions.

BILL KARCH, ASA, MAAA
Supervising Pension Actuary, CalPERS

Highlights and Executive Summary
• Introduction
• Purpose of Section 1
• Required Contributions
• Additional Discretionary Employer Contributions
• Plan’s Funded Status
• Projected Employer Contributions
• Other Pooled Miscellaneous Risk Pool Rate Plans
• Cost
• Changes Since the Prior Year’s Valuation
• Subsequent Events

CALPERS ACTUARIAL VALUATION - June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 3 Introduction
This report presents the results of the June 30, 2021 actuarial valuation of the Miscellaneous Plan of the City of Buellton of the California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the required employer contributions for (FY) 2023-24.

Purpose of Section 1
This Section 1 report for the Miscellaneous Plan of the City of Buellton of CalPERS was prepared by the plan actuary in order to:
• Set forth the assets and accrued liabilities of this plan as of June 30, 2021; • Determine the minimum required employer contribution for this plan for the FY July 1, 2023 through June 30, 2024; and
• Provide actuarial information as of June 30, 2021 to the CalPERS Board of Administration (board) and other interested parties.

The pension funding information presented in this report should not be used in financial reports subject to Governmental Accounting Standards Board (GASB) Statement No. 68 for a Cost Sharing Employer Defined Benefit Pension Plan. A separate accounting valuation report for such purposes is available on the CalPERS website (www.calpers.ca.gov).

The measurements shown in this actuarial valuation may not be applicable for other purposes. The agency should contact the plan actuary before disseminating any portion of this report for any reason that is not explicitly described above.

Future actuarial measurements may differ significantly from the current measurements presented in th is report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; changes in actuarial policies; changes in plan provisions or applicable law; and differences between the required contributions determined by the valuation and the actual contributions made by the agency.

Assessment and Disclosure of Risk
This report includes the following risk disclosures consistent with the recommendations of Actuarial Standards of Practice No. 51 and recommended by the California Actuarial Advisory Panel (CAAP) in the Model Disclosure Elements document:
• A “Scenario Test,” projecting future results under different investment income returns. • A “Sensitivity Analysis,” showing the impact on current valuation results using alternative discount rates of 5.8% and 7.8%.
• A “Sensitivity Analysis,” showing the impact on current valuation results assuming rates of mortality are 10% lower or 10% higher than our current post-retirement mortality assumptions adopted in 2021. • Plan maturity measures indicating how sensitive a plan may be to the risks noted above.

CALPERS ACTUARIAL VALUATION - June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 4 Required Contributions
Fiscal Year
Required Employer Contributions 2023-24
Employer Normal Cost Rate 13.26%
Plus
Required Payment on Amortization Bases1 $198,158
Paid either as
1) Monthly Payment $16,513.17
Or
2) Annual Prepayment Option* $191,746
The total minimum required employer contribution is the sum of the Plan’s Employer Normal Cost Rate (expressed as a percentage of payroll and paid as payroll is reported) plus the Employer Unfunded Accrued Liability (UAL) Contribution Amount (billed monthly (1) or prepaid annually (2) in dollars). * Only the UAL portion of the employer contribution can be prepaid (which must be received in full no later than July 31).

Fiscal Year Fiscal Year
2022-23 2023-24
Development of Normal Cost as a Percentage of Payroll
Base Total Normal Cost for Formula 17.24% 18.76%
Surcharge for Class 1 Benefits2
a) FAC 1 0.55% 0.63%
b) PRSA 0.74% 0.79%
Phase out of Normal Cost Difference3 0.00% 0.00%
Plan’s Total Normal Cost 18.53% 20.18%
Formula's Expected Employee Contribution Rate 6.92% 6.92% Employer Normal Cost Rate 11.61% 13.26%
1 The required payment on amortization bases does not take into account any additional discretionary payment made after April 29, 2022.
2 Section 2 of this report contains a list of Class 1 benefits and corresponding surcharges for each benefit. 3 The normal cost change is phased out over a five-year period in accordance with the CalPERS contribution allocation policy.

CALPERS ACTUARIAL VALUATION - June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 5 Additional Discretionary Employer Contributions
The minimum required employer contribution towards the Unfunded Accrued Liability (UAL) for this rate plan for the 2023-24 FY is $198,158. CalPERS allows agencies to make additional discretionary payments (ADPs) at any time and in any amount. These optional payments serve to reduce the UAL and future required contributions and can result in significant long-term savings. Agencies can also use ADPs to stabilize annual contributions as a fixed dollar amount, percent of payroll or percent of revenue.

Provided below are select ADP options for consideration. Making such an ADP during FY 2023-24 does not require an ADP be made in any future year, nor does it change the remaining amortization period of any portion of unfunded liability. For information on permanent changes to amortization periods, see the “Amortization Schedule and Alternatives” section of the report.

Agencies considering making an ADP should contact CalPERS for additional information.

Minimum Required Employer Contribution for Fiscal Year 2023-24 Estimated
Normal Cost
Minimum UAL
Payment
ADP Total UAL
Contribution
Estimated Total
Contribution
$115,511 $198,158 $0 $198,158 $313,669

Alternative Fiscal Year 2023-24 Employer Contributions for Greater UAL Reduction Funding
Target
Estimated
Normal Cost
Minimum UAL
Payment
ADP1 Total UAL
Contribution
Estimated Total
Contribution
10 years $115,511 $198,158 $23,291 $221,449 $336,960
5 years $115,511 $198,158 $182,665 $380,823 $496,334
1 The ADP amounts are assumed to be made in the middle of the fiscal year. A payment made earlier or later in the fiscal year would have to be less or more than the amount shown to have the same effect on the UAL amortization.

Note that the calculations above are based on the projected Unfunded Accrued Liability as of June 30, 2023 as determined in the June 30, 2021 actuarial valuation. New unfunded liabilities can emerge in future years due to assumption or method changes, changes in plan provisions , and actuarial experience different than assumed.

Making an ADP illustrated above for the indicated number of years will not result in a plan that is exactly 100% funded in the indicated number of years. Valuation results will vary from one year to the next and can diverge significantly from projections over a period of several years.

CALPERS ACTUARIAL VALUATION - June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 6 Plan’s Funded Status
June 30, 2020 June 30, 2021

1. Present Value of Projected Benefits (PVB) $11,466,037 $11,898,282

2. Entry Age Accrued Liability (AL) 10,117,235 10,566,496

3. Plan’s Market Value of Assets (MVA) 7,470,097 8,792,647

4. Unfunded Accrued Liability (UAL) [(2) - (3)] 2,647,138 1,773,849

5. Funded Ratio [(3) / (2)] 73.8% 83.2%
The UAL and funded ratio are assessments of the need for future employer contributions based on the actuarial cost method used to fund the plan. The UAL is the present value of future employer contributions for service that has already been earned and is in addition to future normal cost contributions for active members. The funded ratio, on the other hand, is a relative measure of funded status that allows f or comparison between plans of different sizes. For measures of funded status that are appropriate for assessing the sufficiency of plan assets to cover estimated termination liabilities, please see “Hypothetical Termination Liability” in the “Risk Analysis” section.

Projected Employer Contributions
The table below shows the required and projected employer contributions (before cost sharing) for the next six fiscal years. The projection assumes that all actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur during the projection period. In particular, the investment return beginning with FY 2021-22 is assumed to be 6.80% per year, net of investment and administrative expenses. Actual contribution rates during this projection period could be significantly higher or lower than the projection shown below. Future contribution requirements may differ significantly from those shown below. The actual long-term cost of the plan will depend on the actual benefits and expenses paid and the actual investment experience of the fund.

Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2021-22 and Beyond) Fiscal Year 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 Rate Plan 1722 Results
Normal Cost % 13.26% 13.3% 13.3% 13.3% 13.3% 13.3%
UAL Payment $198,158 $194,000 $184,000 $173,000 $158,000 $165,000 For some sources of UAL, the change in UAL is amortized using a 5-year ramp up. For more information, please see “Amortization of the Unfunded Actuarial Accrued Liability” under “Actuarial Methods” in Appendix A of the Section 2 Report. This method phases in the impact of the change in UAL over a 5-year period in order to reduce employer cost volatility from year to year. As a result of this methodology, dramatic changes in the required employer contributions in any one year are less likely. However, required contributions can change gradually and significantly over the next five years. In years when there is a large increase in UAL, the relatively small amortization payments during the ramp up period could result in a funded ratio that is projected to decrease initially while the contribution impact of the increase in the UAL is phased in.

For projected contributions under alternate investment return scenarios, please see the “Future Investment Return Scenarios” in the “Risk Analysis” section.

Our online pension plan projection tool, Pension Outlook, is available in the Employers section of the CalPERS website. Pension Outlook can help plan and budget pension costs under various scenarios.

CALPERS ACTUARIAL VALUATION - June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 7 Other Pooled Miscellaneous Risk Pool Rate Plans
All of the results presented in this Section 1 report, except those shown below, correspond to rate plan 1722.

In many cases, employers have additional rate plans within the same risk pool. For cost analysis and budgeting it is useful to consider contributions for these rate plans as a whole rather than individually. The estimated contribution amounts and rates for all of the employer’s rate plans in the Miscellaneous Risk Pool are shown below and assume that the payroll for each rate plan will grow according to the overall payroll growth assumption of 2.80% per year for three years.

Fiscal Year Fiscal Year
2022-23 2023-24
Estimated Combined Employer Contributions for all Pooled Miscellaneous Rate Plans Projected Payroll for the Contribution Year $1,746,341 $1,751,123 Estimated Employer Normal Cost $171,022 $185,911
Required Payment on Amortization Bases $213,762 $198,158 Estimated Total Employer Contributions $384,784 $384,069 Estimated Total Employer Contribution Rate (illustrative only) 22.03% 21.93%

CALPERS ACTUARIAL VALUATION - June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 8 Cost
Actuarial Determination of Plan Cost
Contributions to fund the plan are comprised of two components:
• Normal Cost, expressed as a percentage of total active payroll • Amortization of the Unfunded Accrued Liability (UAL), expressed as a dollar amount For fiscal years prior to 2016-17, the Amortization of UAL component was expressed as a percentage of total active payroll. Starting with FY 2016-17, the Amortization of UAL component was expressed as a dollar amount and invoiced on a monthly basis. There continues to be an option to prepay this amount during July of each fiscal year.

The Normal Cost component is expressed as a percentage of active payroll with employer and employee contributions payable as part of the regular payroll reporting process.

The determination of both components requires complex actuarial calculations. The calculations are based on a set of actuarial assumptions which can be divided into two categories:
• Demographic assumptions (e.g., mortality rates, retirement rates, employment termination rates, disability rates)
• Economic assumptions (e.g., future investment earnings, inflation, salary growth rates) These assumptions reflect CalPERS’ best estimate of future experience of the plan and are long term in nature.

We recognize that all assumptions will not be realized in any given year. For example, the investment earnings at CalPERS have averaged 6.9% over the 20 years ending June 30, 2021, yet individual fiscal year returns have ranged from -23.6% to +21.3%. In addition, CalPERS reviews all actuarial assumptions by conducting in-depth experience studies every four years, with the most recent experience study completed in 2021.

CALPERS ACTUARIAL VALUATION - June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 9 Changes Since the Prior Year’s Valuation
Benefits
The standard actuarial practice at CalPERS is to recognize mandated legislative benefit changes in the first annual valuation following the effective date of the legislation. Voluntary benefit changes by plan amendment are generally included in the first valuation that is prepared after the amendment becomes effective, even if the valuation date is prior to the effective date of the amendment.

This valuation generally reflects plan changes by amendments effective before the date of the report. Please refer to the “Plan’s Major Benefit Options” and Appendix B of the Section 2 Report for a summary of the plan provisions used in this valuation.

Actuarial Methods and Assumptions
On November 17, 2021, the board adopted new actuarial assumptions based on the recommendations in the 2021 CalPERS Experience Study and Review of Actuarial As sumptions. This study reviewed the retirement rates, termination rates, mortality rates, rates of salary increases, and inflation assumption for Public Agencies. These new assumptions are incorporated in this actuarial valuation and will impact the require d contribution for FY 2023-24. In addition, the board adopted a new asset portfolio as part of its Asset Liability Management process.

The new asset mix supports a 6.80% discount rate, which reflects a change in the price inflation assumption to

2.30%.

Subsequent Events
The contribution requirements determined in this actuarial valuation report are based on demographic and financial information as of June 30, 2021. Changes subsequent to that date are not reflected. Investment returns below the assumed rate of return may increase future required contributions while investment returns above the assumed rate of return may decrease future required contributions.

The projected employer contributions on Page 6 are calculated under the assumption that the discount rate remains at 6.8% going forward and that the realized rate of return on assets for FY 2021-22 is 6.8%.

This actuarial valuation report reflects statutory changes, regulatory changes and board actions through January 2022. Any subsequent changes or actions are not reflected.

Assets and Liabilities
• Breakdown of Entry Age Accrued Liability
• Allocation of Plan’s Share of Pool’s Experience/Assumption Change • Development of Plan’s Share of Pool’s Market Value of Assets • Schedule of Plan’s Amortization Bases
• Amortization Schedule and Alternatives
• Employer Contribution History
• Funding History

CALPERS ACTUARIAL VALUATION - June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 11 Breakdown of Entry Age Accrued Liability
Active Members $2,296,736
Transferred Members 500,245
Terminated Members 322,282
Members and Beneficiaries Receiving Payments 7,447,233
Total $10,566,496
Allocation of Plan’s Share of Pool’s
Experience/Assumption Change
It is the policy of CalPERS to ensure equity within the risk pools by allocating the pool’s experience gains/losses and assumption changes in a manner that treats each employer equitably and maintains benefit security for the members of the System while minimizing substantial variations in employer contributions.

The Pool’s experience gains/losses and impact of assumption/method changes is allocated to the plan as follows:

1. Plan’s Accrued Liability $10,566,496

2. Projected UAL balance at 6/30/2021 2,673,675

3. Pool’s Accrued Liability1 20,794,529,023

4. Sum of Pool’s Individual Plan UAL Balances at 6/30/20211 4,597,734,264

5. Pool’s 2020/21 Investment (Gain)/Loss1(2,338,185,055)

6. Pool’s 2020/21 Non-Investment (Gain)/Loss1(84,077,623)

7. Plan’s Share of Pool’s Investment (Gain)/Loss: [(1) - (2)] ÷ [(3) - (4)] × (5) (1,139,415)

8. Plan’s Share of Pool’s Non-Investment (Gain)/Loss: (1) ÷ (3) × (6) (42,723)

9. Plan’s New (Gain)/Loss as of 6/30/2021: (7) + (8) (1,182,138)

10. Increase in Pool’s Accrued Liability due to Change in Assumptions1 60,407,898

11. Plan’s Share of Pool’s Change in Assumptions: (1) ÷ (3) × (10) 30,696

12. Increase in Pool’s Accrued Liability due to Funding Risk Mitigation1 495,172,731

13. Plan’s Share of Pool’s Change due to Funding Risk Mitigation: (1) ÷ (3) × (12) 251,616

14. Offset due to Funding Risk Mitigation (263,362)

15. Plan’s Net Investment (Gain): (7) – (14) (876,053)
1 Does not include plans that transferred to Pool on the valuation date.

Development of the Plan’s Share of Pool’s Market
Value of Assets

16. Plan’s UAL: (2) + (9) + (11) + (13) $1,773,849

17. Plan’s Share of Pool’s MVA: (1) - (16) $8,792,647

CALPERS ACTUARIAL VALUATION - June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 12 Schedule of Plan’s Amortization Bases
Note that there is a two-year lag between the valuation date and the start of the contribution fiscal year. • The assets, liabilities, and funded status of the plan are measured as of the valuation date: June 30, 2021. • The required employer contributions determined by the valuation are for the fiscal year beginning two years after the valuation date: FY 2023-24.

This two-year lag is necessary due to the amount of time needed to extract and test the membership and financial data, and the need to provide pub lic agencies with their required employer contribution well in advance of the start of the fiscal year.

The Unfunded Accrued Liability (UAL) is used to determine the employer contribution and therefore must be rolled forward two years from the valuation da te to the first day of the fiscal year for which the contribution is being determined. The UAL is rolled forward each year by subtracting the expected payment on the UAL for the fiscal year and adjusting for interest. The expected payment for the first fiscal year is determined by the actuarial valuation two years ago and the contribution for the second year is from the actuarial valuation one year ago. Additional discretionary payments are reflected in the Expected Payments column in the fiscal year they were made by the agency.

Reason for Base
Date
Est.

Ramp
Level
2023-24
Ramp
Shape
Escalation
Rate
Amort.

Period
Balance
6/30/21
Expected
Payment
2021-22
Balance
6/30/22
Expected
Payment
2022-23
Balance
6/30/23
Minimum
Required
Payment
2023-24
Side Fund
2013 or
Prior No Ramp 2.80% 1 8,182 4,318 4,276 4,436 (18) (19) Investment (Gain)/Loss 6/30/13 100% Up/Down 2.80% 22 870,185 60,664 866,665 62,333 861,181 62,507 Non-Investment (Gain)/Loss 6/30/13 100% Up/Down 2.80% 22 (8,558) (597) (8,523) (613) (8,469) (615) Share of Pre-2013 Pool UAL 6/30/13 No Ramp 2.80% 14 533,911 45,973 522,707 47,237 509,434 47,629 Assumption Change 6/30/14 100% Up/Down 2.80% 13 408,559 41,083 393,884 42,213 377,043 42,681 Investment (Gain)/Loss 6/30/14 100% Up/Down 2.80% 23 (700,034) (47,488) (698,560) (48,794) (695,636) (48,888) Non-Investment (Gain)/Loss 6/30/14 100% Up/Down 2.80% 23 763 52 761 53 758 53 Investment (Gain)/Loss 6/30/15 100% Up/Down 2.80% 24 447,079 29,564 446,928 30,377 445,926 30,410 Non-Investment (Gain)/Loss 6/30/15 100% Up/Down 2.80% 24 (36,065) (2,385) (36,053) (2,450) (35,973) (2,453) Assumption Change 6/30/16 100% Up/Down 2.80% 15 166,490 12,251 165,151 15,735 160,120 15,879 Investment (Gain)/Loss 6/30/16 100% Up/Down 2.80% 25 500,895 26,199 507,881 33,649 507,643 33,658 Non-Investment (Gain)/Loss 6/30/16 100% Up/Down 2.80% 25 (67,880) (3,550) (68,827) (4,560) (68,795) (4,561) Assumption Change 6/30/17 100% Up/Down 2.80% 16 194,275 10,577 196,555 14,491 194,945 18,264 Investment (Gain)/Loss 6/30/17 100% Up/Down 2.80% 26 (284,496) (11,180) (292,288) (15,317) (296,334) (19,137) Non-Investment (Gain)/Loss 6/30/17 100% Up/Down 2.80% 26 (14,568) (573) (14,966) (784) (15,173) (980) Assumption Change 6/30/18 80% Up/Down 2.80% 17 307,973 11,230 317,310 17,309 320,999 23,244 Investment (Gain)/Loss 6/30/18 80% Up/Down 2.80% 27 (86,754) (2,306) (90,270) (3,554) (92,736) (4,732) Method Change 6/30/18 80% Up/Down 2.80% 17 84,128 3,068 86,678 4,728 87,686 6,349 Non-Investment (Gain)/Loss 6/30/18 80% Up/Down 2.80% 27 42,902 7,424 38,147 1,758 38,924 1,986 Non-Investment (Gain)/Loss 6/30/19 No Ramp 0.00% 18 43,047 3,928 41,915 3,928 40,706 3,859

CALPERS ACTUARIAL VALUATION - June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 13 Schedule of Plan’s Amortization Bases (Continued)
Reason for Base
Date
Est.

Ramp
Level
2023-24
Ramp
Shape
Escalation
Rate
Amort.

Period
Balance
6/30/21
Expected
Payment
2021-22
Balance
6/30/22
Expected
Payment
2022-23
Balance
6/30/23
Minimum
Required
Payment
2023-24
Investment (Gain)/Loss 6/30/19 60% Up Only 0.00% 18 40,928 895 42,786 1,790 43,846 2,636 Investment (Gain)/Loss 6/30/20 40% Up Only 0.00% 19 188,844 0 201,685 4,418 210,834 8,667 Non-Investment (Gain)/Loss 6/30/20 No Ramp 0.00% 19 33,869 0 36,172 3,307 35,214 3,248 Assumption Change 6/30/21 No Ramp 0.00% 20 30,696 (6,088) 39,075 (6,258) 48,199 4,334 Net Investment (Gain) 6/30/21 20% Up Only 0.00% 20 (876,053) 0 (935,625) 0 (999,248) (21,479) Non-Investment (Gain)/Loss 6/30/21 No Ramp 0.00% 20 (42,723) 0 (45,628) 0 (48,731) (4,382) Risk Mitigation 6/30/21 No Ramp 0.00% 1 251,616 (6,185) 275,118 (6,358) 300,397 310,443 Risk Mitigation Offset 6/30/21 No Ramp 0.00% 1 (263,362) 0 (281,271) 0 (300,397) (310,443) Total 1,773,849 176,874 1,711,683 199,074 1,622,345 198,158 The (gain)/loss bases are the plan’s allocated share of the risk pool’s (gain)/loss for the fiscal year as disclosed in “Allocation of Plan’s Share of Pool’s Experience/Assumption Change” earlier in this section. These (gain)/loss bases will be amortized in accordance with the CalPERS amortization policy in effect at the time the base was established.

CALPERS ACTUARIAL VALUATION - June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool

Amortization Schedule and Alternatives
The amortization schedule on the previous page(s) shows the minimum contributions required according to the CalPERS amortization policy. Many agencies have expressed a desire for a more stable pattern of payments or have indicated interest in paying off the unfunded accrued liabilities more quickly than required. As such, we have provided alternative amortization schedules to help analyze the current amortization schedule and illustrate the potential savings of accelerating unfunded liability payments.

Shown on the following page are future year amortization payments based on 1) the current amortization schedule reflecting the individual bases and remaining periods shown on the previous page, and 2) alternative “fresh start” amortization schedules using two sample periods that would both result in interest savings relative to the current amortization schedule. To initiate a Fresh Start, please contact the plan actuary.

The Current Amortization Schedule typically contains both positive and negative bases. Positive bases result from plan changes, assumption changes, method changes or plan experience that increase unfunded liability. Negative bases result from plan changes, assumption changes, method changes, or plan experience that decrease unfunded liability. The combination of positive and negative bases within an amortization schedule can result in unusual or problematic circumstances in future years, such as:
• When a negative payment would be required on a positive unfunded actuarial liability; or • When the payment would completely amortize the total unfunded liability in a very short time period, and results in a large change in the employer contribution requirement.

In any year when one of the above scenarios occurs, the actuary will consider corrective action such as replacing the existing unfunded liability bases with a single “fresh start” base and amortizing it over a n appropriate period.

The Current Amortization Schedule on the following page may appear to show that, based on the current amortization bases, one of the above scenarios will occur at some point in the future. It is impossible to know today whether such a scenario will in fact arise since there will be additional bases added to the amortization schedule in each future year. Should such a scenario arise in any future year, the actuary will take appropriate action based on guidelines in the CalPERS amortization policy.

CALPERS ACTUARIAL VALUATION - June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool

Amortization Schedule and Alternatives (continued)
Alternate Schedules
Current Amortization
Schedule 10 Year Amortization 5 Year Amortization
Date Balance Payment Balance Payment Balance Payment
6/30/2023 1,622,345 198,158 1,622,345 221,449 1,622,345 380,823 6/30/2024 1,527,879 194,447 1,503,810 221,449 1,339,106 380,823 6/30/2025 1,430,827 184,171 1,377,215 221,449 1,036,607 380,823 6/30/2026 1,337,793 173,178 1,242,011 221,449 713,538 380,823 6/30/2027 1,249,797 158,028 1,097,613 221,449 368,501 380,824 6/30/2028 1,171,472 164,533 943,396 221,449
6/30/2029 1,081,098 171,220 778,692 221,449
6/30/2030 977,667 178,092 602,789 221,449
6/30/2031 860,103 185,159 414,924 221,450
6/30/2032 727,238 181,479 214,283 221,449
6/30/2033 589,142 177,386
6/30/2034 445,884 168,562
6/30/2035 302,005 153,964
6/30/2036 163,429 127,761
6/30/2037 42,511 42,365
6/30/2038 1,622 1,676
6/30/2039
6/30/2040
6/30/2041
6/30/2042
6/30/2043
6/30/2044
6/30/2045
6/30/2046
6/30/2047
6/30/2048
6/30/2049
6/30/2050
6/30/2051
6/30/2052
Total 2,460,179 2,214,491 1,904,116
Interest Paid 837,834 592,146 281,771
Estimated Savings 245,688 556,063

CALPERS ACTUARIAL VALUATION - June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 16

Employer Contribution History
The table below provides a recent history of the required employer contributions for the plan. The amounts are based on the actuarial valuation from two years prior and does not account for prepayments or benefit changes made during a fiscal year. Additional discretionary payments before July 1, 2019 or after June 30, 2021 are not included.
[
Fiscal
Year
Employer
Normal Cost
Unfunded Liability
Payment ($)
Additional Discretionary
Payments
2016 - 17 9.558% $81,228 N/A
2017 - 18 9.599% 98,534 N/A
2018 - 19 10.152% 124,305 N/A
2019 - 20 10.868% 151,875 48,183
2020 - 21 11.746% 155,509 0
2021 - 22 11.60% 182,863
2022 - 23 11.61% 211,690
2023 - 24 13.26% 198,158
Funding History
The table below shows the recent history of the actuarial accrued liability, share of the pool’s market value of assets, unfunded accrued liability, funded ratio, and annual covered payroll.

Valuation
Date
Accrued
Liability
(AL)
Share of Pool’s
Market Value of
Assets (MVA)
Unfunded
Accrued
Liability (UAL)
Funded
Ratio
Annual
Covered
Payroll
06/30/2012 $6,043,958 $4,546,304 $1,497,654 75.2% $1,131,639 06/30/2013 6,485,216 5,151,752 1,333,464 79.4% 1,125,185 06/30/2014 7,304,613 6,119,235 1,185,378 83.8% 1,170,181 06/30/2015 7,682,992 6,154,736 1,528,256 80.1% 1,065,365 06/30/2016 8,071,132 5,998,676 2,072,456 74.3% 1,037,683 06/30/2017 8,616,660 6,566,461 2,050,199 76.2% 1,066,104 06/30/2018 9,330,830 6,944,991 2,385,839 74.4% 967,350
06/30/2019 9,743,032 7,275,840 2,467,192 74.7% 691,491
06/30/2020 10,117,235 7,470,097 2,647,138 73.8% 850,151 06/30/2021 10,566,496 8,792,647 1,773,849 83.2% 801,866

Risk Analysis
• Future Investment Return Scenarios
• Discount Rate Sensitivity
• Mortality Rate Sensitivity
• Maturity Measures
• Maturity Measures History
• Hypothetical Termination Liability

CalPERS Actuarial Valuation – June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304

Future Investment Return Scenarios
Analysis using the investment return scenarios from the Asset Liability Management process completed in 2021 was performed to determine the effects of various future investment returns on required employer contributions. The projections below reflect the impact of the CalPERS Funding Risk Mitigation policy. The projections also assume that all other actuarial assumptions will be realized and that no further changes in assumptions, contributions, benefits, or funding will occur.

The first table shows projected contribution requirements if the fund were to earn either 3.0% or 10.8% annually. These alternate investment returns were chosen because 90% of long-term average returns are expected to fall between them over the 20-year period ending June 30, 2041.

Required contributions outside of this range are also possible. In particular, whereas it is unlikely that investment returns will average less than 3.0% or greater than 10.8% over a 20 -year period, the likelihood of a single investment return less than 3.0% or greater than 10.8% in any given year is much greater. The following analysis illustrates the effect of an extreme, single year investment return.

The portfolio has an expected volatility (or standard deviation) of 12.0% per year. Accordingly, in any given year there is a 16% probability that the annual return will be -5.2% or less and a 2.5% probability that the annual return will be -17.2% or less. These returns represent one and two standard deviations below the expected return of 6.8%.

The following table shows the effect of a one or two standard deviation investment loss in FY 2021-22 on the FY 2024-25 contribution requirements. Note that a single-year investment gain or loss decreases or increases the required UAL contribution amount incrementally for each of the next five years, not just one, due to the 5-year ramp in the amortization policy. However, the contribution requirements beyond the first year are also impacted by investment returns beyond the first year. Historically, significant downturns in the market are often followed by higher than average returns. Such investment gains would offset the impact of these single year negative returns in years beyond FY 2024-25.

Assumed Annual Return for
Fiscal Year 2021-22
Required
Employer
Contributions
Projected
Employer
Contributions
2023-24 2024-25
(17.2)% (2 standard deviation loss)
Normal Cost Rate 13.26% 13.3%
UAL Contribution $198,158 $246,000
(5.2)% (1 standard deviation loss)
Normal Cost Rate 13.26% 13.3%
UAL Contribution $198,158 $220,000
• Without investment gains (returns higher than 6.8%) in year FY 2022-23 or later, projected contributions rates would continue to rise over the next four years due to the continued phase-in of the impact of the illustrated investment loss in FY 2021-22. • The Pension Outlook Tool can be used to model projected contributions for these scenarios beyond FY 2024-25 as well as to model other investment return scenarios.

Assumed Annual Return
FY 2021-22
through 2040-41
Projected Employer Contributions
2024-25 2025-26 2026-27 2027-28 2028-29

3.0% (5th percentile)
Normal Cost Rate 13.3% 13.3% 13.3% 13.3% 13.3%
UAL Contribution $203,000 $209,000 $223,000 $242,000 $292,000

10.8% (95th percentile)
Normal Cost Rate 13.5% 13.8% 14.0% 14.3% 14.6%
UAL Contribution $187,000 $161,000 $127,000 $0 $0

CalPERS Actuarial Valuation – June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 19 Discount Rate Sensitivity
The discount rate assumption is calculated as the sum of the assumed real rate of return and the assumed annual price inflation, currently 4.5% and 2.3%, respectively. Changing either the price inflation assumption or the real rate of return assumption will change the discount rate. The sensitivity of the valuation results to the discount rate assumption depends on which component of the discount rate is changed. Shown below are various valuation results as of June 30, 2021 assuming alternate discount rates by changing the two components independently. Results are shown using the current discount rate of 6.8% as well as alternate disco unt rates of

5.8% and 7.8%. The rates of 5.8% and 7.8% were selected since they illustrate the impact of a 1.0% increase or decrease to the 6.8% assumption.

Sensitivity to the Real Rate of Return Assumption
As of June 30, 2021 1% Lower
Real Return Rate
Current
Assumptions
1% Higher
Real Return Rate
Discount Rate 5.8% 6.8% 7.8%
Inflation 2.3% 2.3% 2.3%
Real Rate of Return 3.5% 4.5% 5.5%
a) Total Normal Cost 25.38% 20.18% 16.22%
b) Accrued Liability $11,817,507 $10,566,496 $9,518,204 c) Market Value of Assets $8,792,647 $8,792,647 $8,792,647 d) Unfunded Liability/(Surplus) [(b) - (c)] $3,024,860 $1,773,849 $725,557 e) Funded Ratio 74.4% 83.2% 92.4%
Sensitivity to the Price Inflation Assumption
As of June 30, 2021 1% Lower
Inflation Rate
Current
Assumptions
1% Higher
Inflation Rate
Discount Rate 5.8% 6.8% 7.8%
Inflation 1.3% 2.3% 3.3%
Real Rate of Return 4.5% 4.5% 4.5%
a) Total Normal Cost 21.18% 20.18% 18.41%
b) Accrued Liability $10,904,507 $10,566,496 $9,746,801 c) Market Value of Assets $8,792,647 $8,792,647 $8,792,647 d) Unfunded Liability/(Surplus) [(b) - (c)] $2,111,860 $1,773,849 $954,154 e) Funded Ratio 80.6% 83.2% 90.2%
Mortality Rate Sensitivity
The following table looks at the change in the June 30, 2021 plan costs and funded status under two different longevity scenarios, namely assuming post-retirement rates of mortality are 10% lower or 10% higher than our current mortality assumptions adopted in 2021. This type of analysis highlights the impact on the plan of improving or worsening mortality over the long-term.

As of June 30, 2021 10% Lower
Mortality Rates
Current
Assumptions
10% Higher
Mortality Rates
a) Total Normal Cost 20.53% 20.18% 19.86%
b) Accrued Liability $10,808,100 $10,566,496 $10,345,319 c) Market Value of Assets $8,792,647 $8,792,647 $8,792,647 d) Unfunded Liability/(Surplus) [(b) - (c)] $2,015,453 $1,773,849 $1,552,672 e) Funded Ratio 81.4% 83.2% 85.0%

CalPERS Actuarial Valuation – June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 20 Maturity Measures
As pension plans mature they become more sensitive to risks. Understanding plan maturity and how it affects the ability of a pension plan sponsor to tolerate risk is important in understanding how the pension plan is impacted by investment return volatility, other economic varia bles and changes in longevity or other demographic assumptions. Since it is the employer that bears the risk, it is appropriate to perform this analysis on a pension plan level considering all rate plans. The following measures are for one rate plan only.

One way to look at the maturity level of CalPERS and its plans is to look at the ratio of a plan’s retiree liability to its total liability. A pension plan in its infancy will have a very low ratio of retiree liability to total liability. As the plan matures, the ratio starts increasing. A mature plan will often have a ratio above 60%-65%.

Ratio of Retiree Accrued Liability to
Total Accrued Liability June 30, 2020 June 30, 2021

1. Retired Accrued Liability $7,464,314 $7,447,233

2. Total Accrued Liability 10,117,235 10,566,496

3. Ratio of Retiree AL to Total AL [(1) / (2)] 0.74 0.70 Another measure of maturity level of CalPERS and its plans is to look at the ratio of actives to retirees, also called the support ratio. A pension plan in its infancy will have a very high ratio of active to retired members. As the plan matures and members retire, the ratio declines. A mature plan will often have a ratio near or below one.

To calculate the support ratio for the rate plan, retirees and beneficiaries receiving a continuance are each counted as one, even though they may have only worked a portion of their caree rs as an active member of this rate plan. For this reason, the support ratio, while intuitive, may be less informative than the ratio of retiree liability to total accrued liability above. For comparison, the support ratio for all CalPERS public agency plans is

0.82 and is calculated consistently with how it is for the individual rate plan. Note that to calculate the support ratio for all public agency plans, a retiree with service from more than one CalPERS agency is counted as a retiree more than once.

Support Ratio June 30, 2020 June 30, 2021

1. Number of Actives 11 10

2. Number of Retirees 28 28

3. Support Ratio [(1) / (2)] 0.39 0.36

CalPERS Actuarial Valuation – June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 21 Maturity Measures (Continued)
The actuarial calculations supplied in this communication are based on various assumptions about long-term demographic and economic behavior. Unless these assumptions (e.g., terminations, deaths, disabilities, retirements, salary growth, investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year-to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise required employer contributions from one year to the next. Therefore, employer contributions will inevitably fluctuate, especially due to the ups and downs of investment returns.

Asset Volatility Ratio
Shown in the table below is the asset volatility ratio (AVR), which is the ratio of market value of assets to payroll.

Plans that have higher AVR experience more volatile employer contributions (as a percentage of payroll) due to investment return. For example, a plan with an asset-to-payroll ratio of 8 may experience twice the contribution volatility due to investment return volatility than a plan with an asset-to-payroll ratio of 4. It should be noted that this ratio is a measure of the current situation. It increases over time but generally tends to stabilize as the plan matures.

Liability Volatility Ratio
Also shown in the table below is the liability volatility ratio (LVR), which is the ratio of accrued liability to payroll.

Plans that have a higher LVR experience more volatile employer contributions (as a percentage of payroll) due to changes in liability. For example, a plan with LVRratio of 8 is expected to have twice the contribution volatility of a plan with LVR of 4. It should be noted that this ratio indicates a longer-term potential for contribution volatility, since the AVR, described above, will tend to move closer to the LVR as the funded ratio approaches 100%.

Contribution Volatility June 30, 2020 June 30, 2021

1. Market Value of Assets $7,470,097 $8,792,647

2. Payroll 850,151 801,866

3. Asset Volatility Ratio (AVR) [(1) / (2)] 8.8 11.0

4. Accrued Liability $10,117,235 $10,566,496

5. Liability Volatility Ratio (LVR) [(4) / (2)] 11.9 13.2 Maturity Measures History
Valuation Date
Ratio of
Retiree Accrued Liability
to
Total Accrued Liability
Support
Ratio
Asset
Volatility
Ratio
Liability
Volatility
Ratio
06/30/2017 0.47 0.79 6.2 8.1
06/30/2018 0.46 0.70 7.2 9.6
06/30/2019 0.62 0.48 10.5 14.1
06/30/2020 0.74 0.39 8.8 11.9
06/30/2021 0.70 0.36 11.0 13.2

CalPERS Actuarial Valuation – June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 22 Hypothetical Termination Liability
The hypothetical termination liability is an estimate of the financial position of the plan had the contract with CalPERS been terminated as of June 30, 2021. The plan liability on a termination basis is calculated differently compared to the plan’s ongoing funding liability. For the hypothetical termination liability calculation, both compensation and service are frozen as of the valuation date and no future pay increases or service accruals are assumed. This measure of funded status is not appropriate for assessing the need for future employer contributions in the case of an ongoing plan, that is, for an employer that continues to provide CalPERS retirement benefits to active employees.

A more conservative investment policy and asset allocation strategy was adopted by the board for the Terminated Agency Pool. The Terminated Agency Pool has limited funding sources since no future employer contributions will be made. Therefore, expected benefit payments are secured by risk-free assets and benefit security for members is increased while limiting the funding risk. However, this asset allocation has a lower expected rate of return than the PERF and consequently, a lower discount rate is assumed. The lower discount rate for the Terminated Agency Pool results in higher liabilities for terminated plans.

The effective termination discount rate will depend on actual market rates of return for risk-free securities on the date of termination. As market discount rates are variable, the table below shows a range for the hypothetical termination liability based on the lowest and highest interest rates observed during an approximate 19 -month period from 12 months before the valuation date to seven months after.

Market
Value of
Assets (MVA)
Hypothetical
Termination
Liability1,2
at 1.00%
Funded
Ratio
Unfunded
Termination
Liability
at 1.00%
Hypothetical
Termination
Liability1,2
at 2.25%
Funded
Ratio
Unfunded
Termination
Liability
at 2.25%
$8,792,647 $22,478,950 39.1% $13,686,303 $19,029,676 46.2% $10,237,029 1 The hypothetical liabilities calculated above include a 5% contingency load. The contingency load and other actuarial assumptions can be found in Appendix A.
2 The discount rate used for termination valuations is a weighted average of the 10-year and 30-year U.S. Treasury yields where the weights are based on matching asset and liability durations as of the termination date. The discount rates used in the table are based on 20-year Treasury bonds, rounded to the nearest quarter percentage point, which is a good proxy for most plans. The 20-year Treasury yield was 2.00% on June 30, 2021, the valuation date.

In order to terminate the plan, first contact our Pension Contract Services unit to initiate a Resolution of Intent to Terminate. The completed Resolution will allow the plan actuary to provide a preliminary termination valuation with a more up-to-date estimate of the plan liabilities. Before beginning this process, please consult with the plan actuary.

CalPERS Actuarial Valuation – June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 23 Participant Data
The table below shows a summary of the plan’s member data upon which this valuation is based:

June 30, 2020 June 30, 2021
Active Members
Counts 11 10
Average Attained Age 52.44 54.09
Average Entry Age to Rate Plan 42.89 42.68
Average Years of Credited Service 9.62 11.48
Average Annual Covered Pay $77,286 $80,187
Annual Covered Payroll $850,151 $801,866
Present Value of Future Payroll $6,479,329 $6,032,934
Transferred Members 4 5
Separated Members 6 6
Retired Members and Beneficiaries
Counts* 28 28
Average Annual Benefits* $22,367 $22,655
Counts of members included in the valuation are counts of the records processed by the valuation. Multiple records may exist for those who have service in more than one valuation group. This does not result in double counting of liabilities.
* Values include community property settlements.

List of Class 1 Benefit Provisions
This plan has the additional Class 1 Benefit Provisions:
• One Year Final Compensation (FAC 1)
• Post-Retirement Survivor Allowance (PRSA)

CALPERS ACTUARIAL VALUATION - June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 24 Plan’s Major Benefit Options
Shown below is a summary of the major optional benefits for which the agency has contracted. A description of principal standard and optional plan provisions is in Section 2.

Benefit Group
Member Category Misc Misc
Demographics
Actives Yes No
Transfers/Separated Yes No
Receiving Yes Yes
Benefit Group Key 106595 112803
Benefit Provision
Benefit Formula 2% @ 55
Social Security Coverage No
Full/Modified Full
Employee Contribution Rate 7.00%
Final Average Compensation Period One Year
Sick Leave Credit Yes
Non-Industrial Disability Improved
Industrial Disability No
Pre-Retirement Death Benefits
Optional Settlement 2 Yes
1959 Survivor Benefit Level No
Special No
Alternate (firefighters) No
Post-Retirement Death Benefits
Lump Sum $500 $500
Survivor Allowance (PRSA) Yes Yes
COLA 2% 2%

CALPERS ACTUARIAL VALUATION - June 30, 2021
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 25 Section 2
C A L I F O R N I A P U B L I C E M P L O Y E E S ’ R E T I R E M E N T S Y S T E M Risk Pool Actuarial Valuation Information
Section 2 may be found on the CalPERS website
(www.calpers.ca.gov) in the Forms and
Publications section

California Public Employees’ Retirement System
Actuarial Office
400 Q Street, Sacramento, CA 95811 | Phone: (916) 795-3000 | Fax: (916) 795-2744 888 CalPERS (or 888-225-7377) | TTY: (877) 249-7442 | www.calpers.ca.gov July 2022
PEPRA Miscellaneous Plan of the City of Buellton (CalPERS ID: 7472860304) Annual Valuation Report as of June 30, 2021
Dear Employer,
Attached to this letter, you will find the June 30, 2021 actuarial valuation report for the rate plan noted above. Provided in this report is the determination of the minimum required employer contributions for fiscal year (FY) 2023-24. In addition, the report contains important information regarding the current financial status of the plan as well as projections and risk measures to aid in planning for the future.

Because this plan is in a risk pool, the following valuation report has been separated into two sections:
• Section 1 contains specific information for the plan including the development of the current and projected employer contributions, and
• Section 2 contains the Risk Pool Actuarial Valuation appropriate to the plan as of June 30, 2021.

Section 2 can be found on the CalPERS website (www.calpers.ca.gov). From the home page, go to “Forms & Publications” and select “View All”. In the search box, enter “Risk Pool” and from the results list download the Miscellaneous Risk Pool Actuarial Valuation Report for June 30, 2021.

Your June 30, 2021 actuarial valuation report contains important actuarial information about your pension plan at CalPERS. The plan actuary whose signature is in the Actuarial Certification is available to discuss.

Actuarial valuations are based on assumptions regarding future plan experience including investment return and payroll growth, eligibility for the types of benefits provided, and longevity among retirees. The CalPERS Board of Administration (board) adopts these assumptions after considering the advice of CalPERS actuarial and investment teams and other professionals. Each actuarial valuation reflects all prior differences be tween actual and assumed experience and adjusts the contribution requirements as needed. This valuation is based on an investment return assumption of 6.8%, which was adopted by the board in November 2021. Other assumptions used in this report are those recommended in the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021.

Required Contribution
The table below shows the minimum required employer contributions and the Employee PEPRA Rate for FY 2023-24 along with estimates of the required contributions for FY 2024-25. Employee contributions other than cost sharing (whether paid by the employer or the employee) are in addition to the results shown below. The required employer contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.

Fiscal Year Employer Normal
Cost Rate
Employer Amortization of
Unfunded Accrued Liability
PEPRA Member
Rate
2023-24 8.00% $0 8.25%
Projected Results
2024-25 8.0% $0 TBD

PEPRA Miscellaneous Plan of the City of Buellton
(CalPERS ID: 7472860304)
Annual Valuation Report as of June 30, 2021

The actual investment return for FY 2021-22 was not known at the time this report was prepared. The projections above assume the investment return for that year would be 6.8%. To the extent the actual investment return for FY 2021-22 differs from 6.8%, the actual contribution requirements for FY 2024-25 will differ from those shown above. For additional details regarding the assumptions and methods used for these projections, please refer to the “Projected Employer Contributions” in the “Highlights and Executive Summary” section. This section also contains projected required contributions through FY 2028-29.

Changes from Previous Year’s Valuation
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for FY 2020-21. Since the return exceeded the 7.00% discount rate sufficiently, the CalPERS Funding Risk Mitigation policy allows CalPERS to use a portion of the investment gain to offset the cost of reducing the expected volatility of future investment returns. Based on the thresholds specified in the policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate of 0.20%, from 7.00% to 6.80%.

On November 17, 2021, the board adopted new actuarial assumptions based on the recommendations in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study reviewed the retirement rates, termination rates, mortality rates, rates of salary increases , and inflation assumption for public agencies. These new assumptions are incorporated in this actuarial valuation and will impact the required contribution for FY 2023-24. In addition, the board adopted a new strategic asset allocation as part of its Asset Liability Management process. The new asset allocation along with the new capital market assumptions and economic assumptions support a discount rate of

6.80%. This includes a reduction in the price inflation assumption from 2.50% to 2.30%.

Besides the above noted changes, there may also be changes specific to the plan such as contract amendments and funding changes.

Further descriptions of general changes are included in the “Highlights and Executive Summary” section and in Appendix A of the Section 2 report, “Actuarial Methods and Assumptions.” Questions
We understand that you might have questions about these results , and the plan actuary whose signature is on the valuation report is available to discuss. If you have other questions, you may call the Customer Contact Center at (888)- CalPERS or (888-225-7377).

Sincerely,

SCOTT TERANDO, ASA, EA, MAAA, FCA, CFA
Chief Actuary

Actuarial Valuation
as of June 30, 2021
for the
PEPRA Miscellaneous Plan
of the
City of Buellton
(CalPERS ID: 7472860304)
Required Contributions
for Fiscal Year
July 1, 2023 - June 30, 2024

Table of Contents
Section 1 – Plan Specific Information
Section 2 – Risk Pool Actuarial Valuation Information

Section 1
C A L I F O R N I A P U B L I C E M P L O Y E E S ’ R E T I R E M E N T S Y S T E M Plan Specific Information
for the
PEPRA Miscellaneous Plan
of the
City of Buellton
(CalPERS ID: 7472860304)
(Rate Plan ID: 26369)

Rate Plan belonging to the Miscellaneous Risk Pool
Table of Contents
Actuarial Certification 1
Highlights and Executive Summary
Introduction 3
Purpose of Section 1 3
Required Contributions 4
Additional Discretionary Employer Contributions 5
Plan’s Funded Status 6
Projected Employer Contributions 6
Other Pooled Miscellaneous Risk Pool Rate Plans 7
Cost 8
Changes Since the Prior Year’s Valuation 9
Subsequent Events 9
Assets and Liabilities
Breakdown of Entry Age Accrued Liability 11
Allocation of Plan’s Share of Pool’s Experience/Assumption Change 11 Development of Plan’s Share of Pool’s Market Value of Assets 11 Schedule of Plan’s Amortization Bases 12
Amortization Schedule and Alternatives 13
Employer Contribution History 15
Funding History 15
Risk Analysis
Future Investment Return Scenarios 17
Discount Rate Sensitivity 18
Mortality Rate Sensitivity 18
Maturity Measures 19
Maturity Measures History 20
Hypothetical Termination Liability 21
Participant Data 22
List of Class 1 Benefit Provisions 22
Plan’s Major Benefit Options 23
PEPRA Member Contribution Rates 24

CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 1 Actuarial Certification
To the best of our knowledge, this report, comprising of Sections 1 and 2, is complete and accurate and contains sufficient information to disclose, fully and fairly, the funded condition of the PEPRA Miscellaneous Plan of the City of Buellton and satisfies the actuarial valuation requirements of Government Code section 7504 . This valuation is based on the member and financial data as of June 30, 2021 provided by the various CalPERS databases and the benefits under this plan with CalPERS as of the date this report was produced. Section 1 of this report is based on the member and financial data for City of Buellton, while Section 2 is based on the corresponding information for all agencies participating in the Miscellaneous Risk Pool to which the plan belongs.

As set forth in Section 2 of this report, the pool actuaries have certified that, in their opinion, the valuation of the Miscellaneous Risk Pool has been performed in accordance with generally accepted actuarial principles consistent with standards of practice prescribed by the Actuarial Standards Board, and that the assumptions and methods are internally consistent and reasonable for the risk pool as of the date of this valuation and as prescribed by the CalPERS Board of Administration according to provisions set forth in the California Public Employees’ Retirement Law.

Having relied upon the information set forth in Section 2 of this report and based on the census and benefit provision information for the rate plan, it is my opinion as the plan actuary that the Unfunded Accrued Liability amortization bases as of June 30, 2021 and employer contribution as of July 1, 2023 have been properly and accurately determined in accordance with the principles and standards stated above.

The undersigned is an actuary who satisfies the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States with regard to pensions.

BILL KARCH, ASA, MAAA
Supervising Pension Actuary, CalPERS

Highlights and Executive Summary
• Introduction
• Purpose of Section 1
• Required Contributions
• Additional Discretionary Employer Contributions
• Plan’s Funded Status
• Projected Employer Contributions
• Other Pooled Miscellaneous Risk Pool Rate Plans
• Cost
• Changes Since the Prior Year’s Valuation
• Subsequent Events

CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 3 Introduction
This report presents the results of the June 30, 2021 actuarial valuation of the PEPRA Miscellaneous Plan of the City of Buellton of the California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the required employer contributions for (FY) 2023-24.

Purpose of Section 1
This Section 1 report for the PEPRA Miscellaneous Plan of the City of Buellton of CalPERS was prepared by the plan actuary in order to:
• Set forth the assets and accrued liabilities of this plan as of June 30, 2021; • Determine the minimum required employer contribution for this plan for the FY July 1, 2023 through June 30, 2024; and
• Provide actuarial information as of June 30, 2021 to the CalPERS Board of Administration (board) and other interested parties.

The pension funding information presented in this report should not be used in financial reports subject to Governmental Accounting Standards Board (GASB) Statement No. 68 for a Cost Sharing Employer Defined Benefit Pension Plan. A separate accounting valuation report for such purposes is available on the CalPERS website (www.calpers.ca.gov).

The measurements shown in this actuarial valuation may not be applicable for other purposes. The agency should contact the plan actuary before disseminating any portion of this report for any reason that is not explicitly described above.

Future actuarial measurements may differ significantly from the current measurements presented in th is report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; changes in actuarial policies; changes in plan provisions or applicable law; and differences between the required contributions determined by the valuation and the actual contributions made by the agency.

Assessment and Disclosure of Risk
This report includes the following risk disclosures consistent with the recommendations of Actuarial Standards of Practice No. 51 and recommended by the California Actuarial Advisory Panel (CAAP) in the Model Disclosure Elements document:
• A “Scenario Test,” projecting future results under different investment income returns. • A “Sensitivity Analysis,” showing the impact on current valuation results using alternative discount rates of 5.8% and 7.8%.
• A “Sensitivity Analysis,” showing the impact on current valuation results assuming rates of mortality are 10% lower or 10% higher than our current post-retirement mortality assumptions adopted in 2021. • Plan maturity measures indicating how sensitive a plan may be to the risks noted above.

CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 4 Required Contributions
Fiscal Year
Required Employer Contributions 2023-24
Employer Normal Cost Rate 8.00%
Plus
Required Payment on Amortization Bases1 $0
Paid either as
1) Monthly Payment $0.00
Or
2) Annual Prepayment Option* $0
Required PEPRA Member Contribution Rate 8.25%
The total minimum required employer contribution is the sum of the Plan’s Employer Normal Cost Rate (expressed as a percentage of payroll and paid as payroll is reported) plus the Employer Unfunded Accrued Liability (UAL) Contribution Amount (billed monthly (1) or prepaid annually (2) in dollars). * Only the UAL portion of the employer contribution can be prepaid (which must be received in full no later than July 31).

For additional detail regarding the determination of the required PEPRA member contribution rate see section on PEPRA Member Contribution Rates.

Fiscal Year Fiscal Year
2022-23 2023-24
Development of Normal Cost as a Percentage of Payroll
Base Total Normal Cost for Formula 14.22% 15.43%
Surcharge for Class 1 Benefits2
a) PRSA 0.79% 0.82%
Phase out of Normal Cost Difference3 0.00% 0.00%
Plan’s Total Normal Cost 15.01% 16.25%
Plan's Employee Contribution Rate 7.25% 8.25%
Employer Normal Cost Rate 7.76% 8.00%
1 The required payment on amortization bases does not take into account any additional discretionary payment made after April 29, 2022.
2 Section 2 of this report contains a list of Class 1 benefits and corresponding surcharges for each benefit. 3 The normal cost change is phased out over a five-year period in accordance with the CalPERS contribution allocation policy.

CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 5 Additional Discretionary Employer Contributions
The minimum required employer contribution towards the Unfunded Accrued Liability (UAL) for this rate plan for the 2023-24 FY is $0. CalPERS allows agencies to make additional discretionary payments (ADPs) at any time and in any amount. These optional payments serve to reduce the UAL and future required contributions and can result in significant long-term savings. Agencies can also use ADPs to stabilize annual contributions as a fixed dollar amount, percent of payroll or percent of revenue.

Provided below are select ADP options for consideration. Making such an ADP during FY 2023-24 does not require an ADP be made in any future year, nor does it change the remaining amortization period of any portion of unfunded liability. For information on permanent changes to amortization periods, see the “Amortization Schedule and Alternatives” section of the report.

Agencies considering making an ADP should contact CalPERS for additional information.

Minimum Required Employer Contribution for Fiscal Year 2023-24 Estimated
Normal Cost
Minimum UAL
Payment
ADP Total UAL
Contribution
Estimated Total
Contribution
$70,400 $0 $0 $0 $70,400

Alternative Fiscal Year 2023-24 Employer Contributions for Greater UAL Reduction Funding
Target
Estimated
Normal Cost
Minimum UAL
Payment
ADP1 Total UAL
Contribution
Estimated Total
Contribution

N/A N/A N/A N/A N/A N/A
1 The ADP amounts are assumed to be made in the middle of the fiscal year. A payment made earlier or later in the fiscal year would have to be less or more than the amount shown to have the same effect on the UAL amortization.

Note that the calculations above are based on the projected Unfunded Accrued Liability as of June 30, 2023 as determined in the June 30, 2021 actuarial valuation. New unfunded liabilities can emerge in future years due to assumption or method changes, changes in plan provisions , and actuarial experience different than assumed.

Making an ADP illustrated above for the indicated number of years will not result in a plan that is exactly 100% funded in the indicated number of years. Valuation results will vary from one year to the next and can diverge significantly from projections over a period of several years.

CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 6 Plan’s Funded Status
June 30, 2020 June 30, 2021

1. Present Value of Projected Benefits (PVB) $1,593,007 $1,922,404

2. Entry Age Accrued Liability (AL) 501,537 718,571

3. Plan’s Market Value of Assets (MVA) 469,718 768,002

4. Unfunded Accrued Liability (UAL) [(2) - (3)] 31,819 (49,431)

5. Funded Ratio [(3) / (2)] 93.7% 106.9%
The UAL and funded ratio are assessments of the need for future employer contributions based on the actuarial cost method used to fund the plan. The UAL is the present value of future employer contributions for service that has already been earned and is in addition to future normal cost contributions for active members. The funded ratio, on the other hand, is a relative measure of funded status that allows f or comparison between plans of different sizes. For measures of funded status that are appropriate for assessing the sufficiency of plan assets to cover estimated termination liabilities, please see “Hypothetical Termination Liability” in the “Risk Analysis” section.

Projected Employer Contributions
The table below shows the required and projected employer contributions (before cost sharing) for the next six fiscal years. The projection assumes that all actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur during the projection period. In particular, the investment return beginning with FY 2021-22 is assumed to be 6.80% per year, net of investment and administrative expenses. Actual contribution rates during this projection period could be significantly higher or lower than the projection shown below. Future contribution requirements may differ significantly from those shown below. The actual long-term cost of the plan will depend on the actual benefits and expenses paid and the actual investment experience of the fund.

Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2021-22 and Beyond) Fiscal Year 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 Rate Plan 26369 Results
Normal Cost % 8.00% 8.0% 8.0% 8.0% 8.0% 8.0%
UAL Payment $0 $0 $0 $0 $0 $0
For some sources of UAL, the change in UAL is amortized using a 5-year ramp up. For more information, please see “Amortization of the Unfunded Actuarial Accrued Liability” under “Actuarial Methods” in Appendix A of the Section 2 Report. This method phases in the impact of the change in UAL over a 5-year period in order to reduce employer cost volatility from year to year. As a result of this methodology, dramatic changes in the required employer contributions in any one year are less likely. However, required contributions can change gradually and significantly over the next five years. In years when there is a large increase in UAL, the relatively small amortization payments during the ramp up period could result in a funded ratio that is projected to decrease initially while the contribution impact of the increase in the UAL is phased in.

For projected contributions under alternate investment return scenarios, please see the “Future Investment Return Scenarios” in the “Risk Analysis” section.

Our online pension plan projection tool, Pension Outlook, is available in the Employers section of the CalPERS website. Pension Outlook can help plan and budget pension costs under various scenarios.

CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 7 Other Pooled Miscellaneous Risk Pool Rate Plans
All of the results presented in this Section 1 report, except those shown below, correspond to rate plan 26369.

In many cases, employers have additional rate plans within the same risk pool. For cost analysis and budgeting it is useful to consider contributions for these rate plans as a whole rather than individually. The estimated contribution amounts and rates for all of the employer’s rate plans in the Miscellaneous Risk Pool are shown below and assume that the payroll for each rate plan will grow according to the overall payroll growth assumption of 2.80% per year for three years.

Fiscal Year Fiscal Year
2022-23 2023-24
Estimated Combined Employer Contributions for all Pooled Miscellaneous Rate Plans Projected Payroll for the Contribution Year $1,746,341 $1,751,123 Estimated Employer Normal Cost $171,022 $185,911
Required Payment on Amortization Bases $213,762 $198,158 Estimated Total Employer Contributions $384,784 $384,069 Estimated Total Employer Contribution Rate (illustrative only) 22.03% 21.93%

CALPERS ACTUARIAL VALUATION - June 30, 2021
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 8 Cost
Actuarial Determination of Plan Cost
Contributions to fund the plan are comprised of two components:
• Normal Cost, expressed as a percentage of total active payroll • Amortization of the Unfunded Accrued Liability (UAL), expressed as a dollar amount For fiscal years prior to 2016-17, the Amortization of UAL component was expressed as a percentage of total active payroll. Starting with FY 2016-17, the Amortization of UAL component was expressed as a dollar amount and invoiced on a monthly basis. There continues to be an option to prepay this amount during July of each fiscal year.

The Normal Cost component is expressed as a percentage of active payroll with employer and employee contributions payable as part of the regular payroll reporting process.

The determination of both components requires complex actuarial calculations. The calculations are based on a set of actuarial assumptions which can be divided into two categories:
• Demographic assumptions (e.g., mortality rates, retirement rates, employment termination rates, disability rates)
• Economic assumptions (e.g., future investment earnings, inflation, salary growth rates) These assumptions reflect CalPERS’ best estimate of future experience of the plan and are long term in nature.

We recognize that all assumptions will not be realized in any given year. For example, the investment earnings at CalPERS have averaged 6.9% over the 20 years ending June 30, 2021, yet individual fiscal year returns have ranged from -23.6% to +21.3%. In addition, CalPERS reviews all actuarial assumptions by conducting in-depth experience studies every four years, with the most recent experience study completed in 2021.