Carpinteria City Council
April 13, 2026

Rincon Gateway Property Land Transfer
April 13, 2026

50963599.3
Rincon Gateway will be folded into the Rincon Bluffs management plan.

Therefore, City and Land Trust have amended the Rincon Bluffs Preserve Endowment Agreement, in the form shown in Exhibit 3 (Amended and Restated Endowment Agreement) to the Resolution. The principal will not be augmented with additional fundraising or excess funds with the addition of the Rincon Gateway property. The Rincon Bluffs Preserve Endowment will continue to be managed by the Carpinteria Bluffs Endowment Fund Committee, the same subcommittee of the Land Trust responsible for managing the Carpinteria Bluffs Endowment Agreement.

A redline copy that shows the changes made is provided as Attachment B.

POLICY CONSISTENCY
General Plan/Coastal Land Use Plan: Open Space, Recreation and Conservation Objective OSC-1: Protect, preserve and enhance local natural resources and habitats.

Objective OSC-2: Preserve and restore the natural resources of the Carpinteria Bluffs.

OSC-8-Implementation Policy 38: Preserve and restore habitat used by sensitive, rare, threatened, and endangered species.

Acceptance of this Property would help the City fulfill these recreation policies that support low-cost public coastal access, a key aspect of the California Coastal Act.

Objective OSC-14. Provide for adequate park and recreation facilities to meet the needs of the community and visitors.

OSC-14a. Increase coastal and recreational access for all segments of the population, including the disabled and elderly, while protecting natural resources, particularly environmentally sensitive habitat areas.

OSC-14b. Provide for passive recreation uses of natural open space areas, such as along creeks and the Bluffs 1 areas, where such uses would not damage the resources being protected.

Objective OSC-15: Maintain the existing trail system and provide additional recreation and access opportunities by expanding the trail system.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) COMPLIANCE:

This action does not constitute a project under CEQA as it involves actions that do not cause any direct or indirect physical change in the environment. For instance, the administrative activities of governments that will not result in direct or indirect physical

Rincon Gateway Property Land Transfer
April 13, 2026

50963599.3
commitment to any specific project which may result in a potentially significant physical from the
-(5).)
To the extent that any portion of the action does constitute a project, it is exempt pursuant to Cal. Code Regs Sections 15325 and 15316 (Class 16): Exemption for transfers of ownership of interests in land to preserve open space, habitat, or historical resources, acquisition or sale of land to create parks.

FINANCIAL CONSIDERATIONS
The Property will be transferred for a nominal amount in consideration of long-term conservation commitments, although standard closing costs will be incurred. Endowment Fund proceeds are anticipated to provide an important source of revenue to pay for improvements and/or services for the Property to preserve public safety and habitat values.

LEGAL AND RISK MANAGEMENT CONSIDERATIONS
The City Attorney's Office has reviewed the agenda materials for this item and will be available at the meeting to answer questions.

OPTIONS
(1) Adopt Resolution No. 6449 and authorize the Mayor to execute the following documents:
a. Land Transfer Agreement for the Rincon Gateway Property from the Land Trust of Santa Barbara County to the City;
b. Deed of Conservation Easement for the Rincon Gateway Property by the City in Favor of the Land Trust for the Rincon Gateway Property; and the c. Amended and Restated Rincon Bluffs Preserve Endowment Agreement. (2) Elect not to approve the Rincon Gateway Baseline Inventory Report and Resolution No. 6449 and direct staff as appropriate.

PRINCIPAL PARTIES EXPECTED AT MEETING
The Land Trust of Santa Barbara County.

Citizens for the Carpinteria Bluffs.

Rincon Gateway Property Land Transfer
April 13, 2026

50963599.3

ATTACHMENTS
Attachment A: Resolution 6449
Exhibit 1: Land Transfer Agreement
Exhibit 2: Deed of Conservation Easement
Rincon Gateway Baseline Inventory Report
o Appendix A: Rincon Gateway Baseline Photo Inventory
Exhibit 3: Amended and Restated Endowment Agreement
Attachment B: Amended and Restated Rincon Bluffs Endowment Agreement Redline
Staff contact:

Reviewed by:

Jeanette Gant, PRCS Director __________________________ (805) 755-4449; [email protected] Signature
Reviewed by:

Ryan Kintz, Assistant City Manager
(805) 755-4400; [email protected] Signature
Reviewed by:

Michael Ramirez, City Manager
(805) 755-4450; [email protected] Signature

ATTACHMENT A
Resolution No. 6449

RESOLUTION NO. 6449

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CARPINTERIA, ACCEPTING THE RINCON GATEWAY PROPERTY

FROM THE LAND TRUST OF SANTA BARBARA COUNTY,

APPROVING THE RINCON GATEWAY BASELINE CONDITIONS

REPORT, AND AUTHORIZING THE MAYOR TO EXECUTE A LAND

TRANSFER AGREEMENT, A DEED OF CONSERVATION EASEMENT,

AND THE AMENDED AND RESTATED RINCON BLUFFS PRESERVE

ENDOWMENT AGREEMENT
WHEREAS, starting over twenty years ago, the City, in coordination with community partners, has acquired a conserved bluff property for Open Space use and enjoyment; and

WHEREAS,
to gift a portion of land in the City of Carpinteria (referred to as the the City; and
WHEREAS, the Land Trust will reserve for itself a conservation easement in the said property; and
WHEREAS, the Land Trust provided to the City a Baseline Conditions Report ecological setting, historical land use, current natural and built features, and biological resources and serves as a foundation for stewardship and monitoring, ensuring that changes to the Rincon Gateway can be measured against the content in this report; and WHEREAS, the donation of the Rincon Gateway with the said Conservation Easement by the City for the purpose of an open space preserve conforms with the ; and
WHEREAS, the acceptance of the Rincon Gateway by the City is an act exempt from the California Environmental Quality Act pursuant to California Code of Regulations Title 14, Chapter 3, section 15316, which consists of the acquisition, sale, or other transfer of land in order to establish a park where the land is in a natural condition or contains historical or archaeological resources, and the management plan for the park has not been prepared; and

Resolution No. 6449

WHEREAS, the acceptance of the Rincon Gateway by the City is an action categorically excluded from the National Environmental Protection Act pursuant to Appendix B to part 1021 B1.25 (real property transfers for cultural resources protection, habitat preservation, and wildlife management); and
NOW, THEREFORE, BE IT RESOLVED as follows:

SECTION 1. The above recitals are true and correct, and incorporated herein by reference.

SECTION 2. The Carpinteria City Council hereby accepts the land transfer of the Rincon Gateway Property from the Land Trust of Santa Barbara County to the City and approves the Rincon Gateway Baseline Conditions Report.

SECTION 3. The Carpinteria City Council further authorizes the Mayor to execute (1) the Land Transfer Agreement for the Rincon Gateway Property from the Land Trust of Santa Barbara County to the City (Exhibit 1 to this Resolution), (2) the Deed of Conservation Easement for the Rincon Gateway Property by the City in Favor of the Land Trust for the Rincon Gateway Property (Exhibit 2 to this Resolution), and (3) the Amended and Restated Rincon Bluffs Preserve Endowment Agreement (Exhibit 3 to this Resolution).

PASSED, APPROVED AND ADOPTED on this 13th day of April, 2026, by the following vote:

AYES: COUNCILMEMBER(S):

NOES: COUNCILMEMBER(S):

ABSENT: COUNCILMEMBER(S):

ABSTAIN: COUNCILMEMBER(S):
________________________
Mayor, City of Carpinteria
ATTEST:
______________________________ Brian C. Barrett, MMC, CPMC City Clerk, City of Carpinteria

Resolution No. 6449

I hereby certify that the foregoing resolution was adopted at a regular meeting of the City Council of the City of Carpinteria held on April 13, 2026. ______________________________
Brian C. Barrett, MMC, CPMC
City Clerk, City of Carpinteria
APPROVED AS TO FORM: __________________________________ Jena Shoaf Acos, on behalf of Brownstein Hyatt Farber Schreck, LLP acting as
City Attorney of the City of Carpinteria

EXHIBIT 1 TO RESOLUTION NO. 6449

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LAND TRANSFER AGREEMENT
Assessor s Parcel Numbers 001-210-013, 16, & 23
This Land Transfer Agreement ( Agreement ) is entered into on __________, 2026 (the Effective Date by and between The Land Trust for Santa Barbara County, a California nonprofit public Land Trust City of Carpinteria, a municipal corporation ( City, and collectively with Land Trust, Parties or individually a Party ), with reference to the following facts and intentions.

RECITALS
A. Land Trust is the owner of certain real property located in Carpinteria, County of Santa Barbara, State of California, commonly known as Assessor s Parcel Numbers 001-210-013, 16, & 23 and more particularly described in the legal description attached as Exhibit A and depicted on the attached Exhibit A-1, each of which are incorporated by this reference ( Property ).

B. Land Trust previously transferred to City real property immediately adjacent to the Property, on which City has developed a coastal open space park and trail system for public access and native habitat benefits, commonly known as Rincon Bluffs Preserve.

C. In order to expand public access and the existing Rincon Bluffs Preserve, City desires to acquire and Land Trust desires to transfer fee title to the Property under the terms and conditions of this Agreement.

D. City desires to convey to Land Trust, on the same day and in the same escrow immediately following acceptance of the Property, a Deed of Conservation Easement ( Easement ), the form of which is attached to this Agreement as Exhibit B and incorporated herein by this reference, which will protect mutually agreed upon Conservation Values as defined in the Easement; E. City and Land Trust also desire to amend the endowment agreement that the City and Land Trust s to include support of the Property Amended
and Restated Endowment Agreement , the form of which is attached to this Agreement as Exhibit D and incorporated herein by this reference, immediately upon execution of this Agreement.

NOW, THEREFORE, the Parties agree as follows:

1. Transfer of Fee Title. Land Trust agrees to convey to City, and City agrees to accept from Land Trust, the Property, subject to the terms and for the consideration described in this Agreement.

2. Gift; Consideration. Land Trust will transfer the Property to the City as a gift through an escrow ( Escrow ) established with the Escrow Company (as defined below). The Parties agree that the conveyance is for no monetary consideration, and for purposes of any documentary transfer tax, recording, or similar statutes, the consideration for the deed/transfer is $0. Land Trust acknowledges that City may expend effort and incur expense in connection with this transaction (including, without limitation, investigating the Property and pursuing approvals), and the Parties agree that such efforts/expenses constitute sufficient consideration solely for the enforceability of this Agreement and are not consideration for the conveyance of the Property. The P
constitute payment or compensation to Land Trust and shall not be treated as consideration for the transfer

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3. Due Diligence. is subject to City approval of the Property as provided in this Section 3 on or before the date that is sixty (60) days after the Effective Date (the Diligence Expiration Date

3.1 Property Information. Within ten (10) business days after Effective Date, Land Trust will provide City with copies of all information reasonably related Property that is in Land Trust including, but not limited to, any soils reports, biological studies, geologic surveys, environmental information, and any other information regarding Property Documents

3.2 Limited Non-Exclusive License. Land Trust grants to City for the term of this Agreement, a limited non-exclusive license for City and its representatives, agents, contractors, and invitees City Parties to enter the Property at reasonable times on at least two (2) days prior notice to Land Trust
and risk, to inspect, investigate, test, and study the Property to learn the physical condition of the Property.

Land Trust will have no obligation to pay any amounts relating to City due diligence and Property investigations, including, but not limited to, the cost of any reports, inspections, tests, and studies. City may not conduct any invasive tests of soil, environmental, or groundwater conditions without Land Trust written consent. This limited license will be deemed revoked on termination of this Agreement.

3.3 City Covenants and Indemnity. City agrees for itself and the other City Parties that, in connection with all work permitted under this Section, they will: (a) not allow any hazardous materials to be released onto the Property; (b) comply with all applicable laws and governmental regulations; and (c)
the entry or work performed by City Parties. City will indemnify, defend with counsel reasonably acceptable to Land Trust, and hold harmless Land Trust and its partners and their respective officers, directors, shareholders, partners, members, agents, contractors, successors and assigns (collectively with Land Trust Land Trust Parties
Claims
on the Property by any City Parties; but City will not have any liability or be obligated to indemnify Land Trust for the mere discovery of any existing condition or the non-negligent exacerbation of an existing condition.

3.4 Property Condition Notices. On or before the Diligence Expiration Date, City will notify Land Trust in writing of any Property conditions to which it objects. Within ten (10) days after receipt of Land Trust will Land Trust either refuses
Land Trust will be deemed to have
elected not to cure any in Land Trust
objections that Land Trust elects to cure must be cured by Land Trust before the Close of Escrow in the as otherwise acceptable to City. If Land Trust fails to deliver its responsive notice within the 10-day period, Land Trust will will
have the right, by giving notice to Land Trust within five (5) business days after Land Trust notifies City of
notice, to: (a) terminate this Agreement, or (b) elect to proceed under this Agreement, thereby waiving its Land Trust If City elects to continue under this
Agreement, then City will be deemed to have waived its objections and approved all of the matters described in this Section 3 and the Parties will proceed to Close of Escrow. If, on or before the Diligence Expiration Date, City fails to give Land Trust written notice that City elects to proceed to the Close of Escrow, then City will be deemed to have elected to accept the Property and proceed to Close of Escrow under the terms of this Agreement.

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3.5 City Approvals. If City elects to accept the Property and proceed to the Close of Escrow as provided in Section 3.4 above
within thirty (30) days after such election.

4. Condition of Title; Title Insurance. 4.1 Preliminary Title Report, Review, and Objections. As soon as possible after the opening of Escrow, Land Trust will cause the Escrow Company to provide Land Trust and City with (a) a current standard preliminary title report ( Preliminary Title Report ) issued by the Escrow Company, showing the condition of title of the Property with copies of all documents referenced in the exceptions to the Preliminary Title Report; and (b) if available from the Escrow Company, a map or diagram of the Property depicting plottable easements, rights-of-way, and other plottable encumbrances on the Property for City s review and approval or disapproval. Such documents will include but are not limited to covenants, conditions, restrictions, reservations, easements, rights-of-way, liens, and other matters of record. On or before thirty (30) days after the date City receives the Preliminary Title Report and accompanying documents described above, City will deliver to Land Trust City s written disapproval of any title exceptions set forth on the Preliminary Title Report (the Disapproved Exceptions ) along with its desired title endorsements. Within ten (10) business days after Land Trust receives the Disapproved Exceptions, Land Trust will notify City in writing of any Disapproved Exceptions that Land Trust either refuses to cure or is unable to cure in the manner specified in City s notice. Land Trust will be deemed to have elected not to cure any Disapproved Exceptions that are not addressed in Land Trust s notice; all Disapproved Exceptions that Land Trust elects to cure must be cured by Land Trust before the Close of Escrow in the manner specified in City s notice or as otherwise acceptable to City. If Land Trust fails to deliver its responsive notice within the 10-business day period, Land Trust will be deemed to have refused to cure any Disapproved Exceptions in the manner specified in City s notice at or before the Close of Escrow. In that case, City will have the right, by giving notice to Land Trust within ten (10) business days after Land Trust notifies City of its refusal or inability to cure any one or more of the Disapproved Exceptions in the manner specified in City s notice, to: (i) terminate this Agreement, or (ii) elect to proceed under this Agreement, thereby waiving its objections to the Disapproved Exceptions described in Land Trust s notice.

4.2 Condition of Title; Vesting. At the Close of Escrow, Land Trust will convey to City the Property, subject to the Permitted Exceptions as defined at Section 4.3. City will confirm to the Escrow Company the at least ten (10) days before the Closing Date.

4.3 Permitted Exceptions. The term Permitted Exceptions means all of the following, collectively:

4.3.1 Standard Exceptions. The title insurer s standard printed exceptions and exclusions on its standard form of Title Policy as provided in this Agreement;

4.3.2 Taxes. Any non-delinquent and general and special real property taxes and assessments;

4.3.3 Encumbrances. All covenants, conditions, restrictions, exceptions, reservations, rights, rights-of-way, easements, liens and other matters of record affecting title as shown in the Preliminary Title Report and approved or waived by City under Section 4.1 above;

4.3.4 Exceptions Caused by the Insured. Any exceptions directly or indirectly caused by the insured or the insured s agents, employees, or contractors; and

4.3.5 Easement and Other Documents. All instruments and documents recorded with the mutual written approval of Land Trust and City, including but not limited to the Easement

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(provided, however that for the Land Trust Title Policy (defined below), only the Easement terms and conditions may be excepted from coverage, but not the terms creating the insured interest).

4.4 Title Insurance Policies.

4.4.1 . City interest in the Property will be insured by a CLTA Policy of Title Insurance with such endorsements as City may reasonably require to be insured by the Title Company (defined below) on the Closing Date with the liability in the amount of the $973,750 (or such other amount as may be agreed upon between City and Title Company) and showing the interest in the Property vested in City, subject only to City Title Policy

4.4.2 Land Trust Policy. Land Trust Easement will be insured by a CLTA Standard Coverage or ALTA Coverage (with regional and survey exceptions) Insurance with such endorsements as Land Trust may reasonably require to be insured by the Title Company on the Closing Date with the liability in the amount of $2,921,250 and showing the Easement vested in Land Trust and the fee interest in the Property vested in City, subject only to the Permitted Exceptions (as defined below) Land Trust Title Policy

4.5 No Additional Encumbrances. Land Trust covenants and agrees that, before the Closing Date, Land Trust will not cause or permit any encumbrances or liens upon the Property that will survive the Close of Escrow, other than encumbrances or liens, if any, that are approved by City in writing.

5. Escrow and Closing. 5.1 Title and Escrow Company. Escrow will be with First American Title Insurance Company, 899 Pacific St., San Luis Obispo, CA 93401-3615 (as Escrow holder, the Escrow Company and as title Title Company Attn. Renee Brian, (805) 786-2034. [email protected]. 5.2 Opening of Escrow. Within five (5) business days after the Effective Date, Land Trust will open the Escrow with the Escrow Company. Concurrently with the opening of the Escrow, the Parties will deliver a fully executed copy of this Agreement or counterparts executed by the Parties to the Escrow Company. The Escrow Company will immediately notify the Parties of its receipt of the fully executed Agreement or counterparts.

5.3 Escrow Company Supplemental Instructions. Land
Trust and City agree to execute, deliver, and be bound by any reasonable or customary supplemental escrow instructions of the Escrow Company or other instructions as may be reasonably required by the Escrow Company in order to consummate the transaction contemplated by this Agreement. In addition, the Parties, or either of them, may provide supplemental instructions to the Escrow Company in its closing of this transaction, consistent with the terms of this Agreement. Any supplemental escrow instructions may not conflict, amend or supersede any portions of this Agreement. If there is any inconsistency between any supplemental instructions and this Agreement, this Agreement will control with respect to any such inconsistency or conflict.

5.4 Conditions to Closing.

5.4.1 subject to the satisfaction
benefit on or before the Closing Date, or such earlier date as is designated below for the satisfaction of such conditions:

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5.4.1.1 Land Trust Documents and Funds. At least one (1) business day before the scheduled Closing, Land Trust has deposited with the Escrow Company:
(a) one (1) original duly executed, acknowledged, and dated grant deed in substantially the form attached as Exhibit C Deed ; (b) one (1) original duly executed, acknowledged, and dated Easement;
(c) one (1) original duly executed Amended and Restated Endowment Agreement (unless the Parties have elected to deliver this document outside of Escrow);
(d) such other instruments and documents as may be reasonably required by the Escrow Company or Title Company to transfer the Property to City, non-foreign entity affidavit, and state tax forms, as applicable; (e) any funds required to close the donation in accordance with its estimated closing statement prepared by the Escrow Company and approved by City.

5.4.1.2 Title. The Title Company is irrevocably committed to issue the City Title Policy, subject only to the Permitted Exceptions.

5.4.1.3 No Material Changes. There will have been no material adverse changes with respect to the physical or environmental condition of the Property.

5.4.1.4 Land Trust . Land Trust will have timely performed all of the obligations required by the terms of this Agreement to be performed by Land Trust on or before the Closing.

5.4.2 Land Trust . The Closing and Land Trust
Property are subject to the satisfaction of the following conditions for Land Trust
designated below for the satisfaction of such conditions:

5.4.2.1 City Documents and Funds. At least one (1) business day before the scheduled Closing, City has deposited with the Escrow Company:
(a) one (1) original duly executed certificate of acceptance, to be attached by the Escrow Company to the Deed;
(b) one (1) original duly executed, acknowledged, and dated Easement;
(c) one (1) original duly executed and dated Preliminary Change of Ownership Report, if required;
(d) one (1) original duly executed Amended and Restated Endowment Agreement (unless the Parties have elected to deliver this document outside of Escrow);

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(e) such other instruments and documents as may be reasonably required by the Escrow Company or Title Company to transfer the Property to City; and
(f) any funds required to close the donation in accordance with its estimated closing statement prepared by the Escrow Company and approved by Land Trust.

5.4.2.2 City . City will have timely performed all of the obligations required by the terms of this Agreement to be performed by City on or before the Closing.

5.4.3 Nonwaivable Condition of Closing Subdivision Map Act. The obligation of each Party to close the transaction contemplated by this Agreement is conditioned on compliance with the California Subdivision Map Act (California Government Code section 66410 et seq Map Act
is exempt from the Map Act. Notwithstanding anything to the contrary contained in this Agreement, this condition may not be waived by either Party. If either Party notifies the other Party that the conveyance of the Property to City as contemplated in this Agreement is not in compliance with or is not exempt from the Map Act, then this Agreement and the Escrow will terminate as of the date of the notice and the Parties will have no further obligation to each other under this Agreement except those expressly stated to survive the termination of this Agreement.

5.5 Close of Escrow. Closing Close of Escrow
means the recording of the Deed in the Official Records of Santa Barbara County, California. The date on Closing Date Close of Escrow will occur not later than thirty (30) days after City elects to proceed to Close of Escrow under Section 3.4 above, or such other date as mutually agreed by Land Trust and City. On the Closing Date, the Escrow Company will:

5.5.1 Grant of Fee Title. Deed and record them in the Official Records of Santa Barbara County Recorder s Office, California.

5.5.2 Grant of Conservation Easement. Record the fully executed Easement conveying the Conservation Easement to Land Trust.

5.5.3 Title Insurance. Issue to City the City Title Policy and issue to Land Trust the Land Trust Title Policy.

5.5.4 Closing Documents. Provide a conformed recorded copy of the Grant Deed and Easement to each the City and Land Trust and deliver to each Party all other Escrow documents including Amended and Restated Endowment Agreement (unless the Parties have elected to deliver that document outside of Escrow).

5.5.5 Supplement Escrow Instructions. Perform all other tasks as instructed under any supplemental escrow instructions as provided in Section 5.3 above.

5.6 Closing Costs. Land Trust will pay the Land Trust Title Policy premium; City will pay all other fees and charges of the Escrow Company, the cost of the premium for the City Title Policy, all costs and charges for recording the Deed and the Easement, and any and all documentary transfer taxes due in connection with the conveyance of the Property to City or conveyance of the Easement to Land Trust. The Escrow Company will prepare estimated closing statements for each Land Trust and City with the estimated

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closing costs apportioned as set forth in the Section, which the Parties will deposit into Escrow at least five (5) business days before the Closing Date.

6. Representations and Warranties. 6.1 Land Trust s Representations and Warranties. Land Trust makes the following representations and warranties to City as of the date of this Agreement, each of which is material and is being relied upon by City, the continued truth and accuracy of which will constitute a condition precedent to City s obligations under this Agreement:

6.1.1 Authority. Land Trust has the right, power, and authority to donate, convey, and transfer the Property to City as provided in this Agreement and to enter into and carry out the terms of this Agreement and execute and deliver all of the documents referenced in this Agreement. No further consent of any person or entity is required in connection with the execution and delivery of or performance by Land Trust of the obligations under this Agreement.

6.1.2 Other Agreements. Except for the Permitted Exceptions or as otherwise disclosed to City in writing, there are, to Land Trust s actual knowledge, no agreements, oral or written, affecting or relating to the right of Land Trust with respect to all or any portion of the Property that are obligations that will materially or adversely affect the Property or City s interest therein, whether before or after the Close of Escrow.

6.1.3 Threatened Action. There are, to Land Trust s actual knowledge, no actions, suits, or other proceedings pending against or threatening or affecting the Property in law or in equity.

6.1.4 Hazardous Substances
in writing to City, no hazardous or toxic substances have been stored on the Property by Land Trust in violation of applicable laws nor is Land Trust aware of any such substances being stored or used on the Property by any other person or entity in violation of applicable laws.

6.1.5 Representations at Closing. Except as otherwise expressly stated in this Agreement, the representations and warranties of Land Trust will be true and correct in all material respects on and as of the Closing Date.

6.2 Limitation of Liability. As used anywhere in this Agreement, the terms actual knowledge and to the actual knowledge of Land Trust or generally to the knowledge or awareness of Land Trust refer to the actual knowledge of Devin Rothman without the obligation to undertake any investigation or inquiry, and without any personal liability for such person or any other employees or board members.

Notwithstanding any provision of this Agreement to the contrary, Land Trust will not have any liability with respect to any of the representations and warranties set forth in this Agreement if, before the Close of Escrow, City receives actual notice of information (from whatever source, including, without limitation, as a result of City s investigations of the Property or written notice by Land Trust) that contradicts any representations and warranties, or renders any of the foregoing representations and warranties untrue or incorrect, and City with that knowledge nevertheless consummates the transaction contemplated by this Agreement. Without limiting or affecting any of the other limitations on Land Trust s liability set forth in this Agreement, Land Trust s aggregate liability under all representations, warranties, covenants, and other provisions of this Agreement and the documents delivered by Land Trust at Closing will be limited up to a maximum amount of $5,000.00. Notwithstanding any provision of this Agreement to the contrary, in no event will Land Trust be liable to City for indirect, special, consequential (including lost profits), or punitive damages arising out of or in connection with this Agreement. Any action, suit, or proceeding by Land Trust with respect to City
the documents delivered by Land Trust at Closing must be commenced and served, if at all, on or before

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the date that is nine (9) months after the Closing Date and, if not commenced and served on or before such date, such representations, warranties, covenants, and other provisions will lapse and hereafter be void and of no further force or effect. Notwithstanding anything to the contrary herein, the foregoing limitation of liability shall not apply to claims to the extent arising from Land Trust fraud or willful misconduct.

6.3 City s Representation and Warranties. In consideration of Land Trust entering into this Agreement and as an inducement to Land Trust to convey the Property to City, City makes the following representations and warranties, each of which is material and is being relied upon by Land Trust, the continued truth and accuracy of which will constitute a condition precedent to Land Trust s obligations under this Agreement:

6.3.1 Authority. City has the right, power, and authority to enter into and carry out the terms of this Agreement and execute and deliver all of the documents referenced in this Agreement.

No further consent of any person or entity is required in connection with the execution and delivery of or performance by City of its obligations under this Agreement.

6.3.2 Validity of Agreement. This Agreement is a valid and binding obligation of City and enforceable against City in accordance with the terms of this Agreement.

6.3.3 Representations at Closing. Except as otherwise expressly stated in this Agreement, the representations and warranties of City will be true on and as of the Closing Date.

Any action, suit, or proceeding by Land Trust with respect to City s representations, warranties, covenants, and other provisions of this Agreement and the documents delivered by Land Trust at Closing must be commenced and served, if at all, on or before the date that is nine (9) months after the Closing Date and, if not commenced and served on or before such date, such representations, warranties, covenants, and other provisions will lapse and hereafter be void and of no further force or effect.

7. Arbitration of Disputes. Any dispute between the Parties arising out of this Agreement, including but not limited to any issues of breach or default under this Agreement, will be resolved by binding arbitration in accordance with the rules of the American Arbitration Association. In connection with such arbitration, the arbitrators will not have the right to vary from the requirements of California law.

8. Notices, Demands and Communications Between the Parties. All notices, demands, and communications between Parties must be given by personal service, overnight courier, or by registered or certified mail, postage prepaid, return receipt requested, to the principal offices of each Party, as set forth below or by email to the email addresses provided below. Such written notices, demands, and communications may be sent in the same manner to such other addresses as either Party may from time to time designate by mail as provided in this Section.

To: Land Trust
Executive Director
The Land Trust for Santa Barbara County
1530 Chapala Street
Santa Barbara, CA 93101
Email: [email protected]
To: City
City Manager
City of Carpinteria
5775 Carpinteria Avenue
Carpinteria, CA 93013
Email: [email protected]
Any written communication given by mail will be deemed delivered two (2) business days after such mailing date; any written communication given by overnight delivery service will be deemed delivered one (1) business day after the dispatch date; and any written communication delivered by email will be deemed delivered on the date sent if sent during business hours on a business day (and on the next business day if

9 36594217.5
sent after business hours or on a non-business day) and the sender receives no indication of any unsuccessful delivery, but notices of default, dispute, or demanding mediation or arbitration must be sent by personal service, overnight courier, or by registered or certified mail, postage prepaid, return receipt requested, in addition to email.

9. Non-Liability of Officials and Employees. No member, official, or employee of City will be personally liable to Land Trust in the event of any default or breach by City or for any amount which may become due to Land Trust or on any obligation under the terms of this Agreement. No member, manager, officer, or employee of Land Trust will be personally liable to City in the event of any default or breach by Land Trust or for any amount which may become due to City or on any obligation under the terms of this Agreement.

10. As Is and Release. 10.1 AS-IS. EXCEPT AS EXPRESSLY SET FORTH IN SECTION 6.1 OF THIS

AGREEMENT OR IN ANY OF THE CLOSING DOCUMENTS EXECUTED IN CONNECTION

HEREWITH, CITY HEREBY AGREES THAT, UPON THE CLOSE OF ESCROW, CITY WILL

CONCLUSIVELY BE DEEMED TO HAVE ACCEPTED THE PROPERTY IN ITS THEN EXISTING

CONDITION AS IS, WHERE IS AND WITH ALL FAULTS WITHOUT REPRESENTATION OR

WARRANTY, EXPRESS OR IMPLIED, OF ANY KIND OR NATURE WHATSOEVER (INCLUDING,

WITHOUT LIMITATION, ANY REPRESENTATION OR WARRANTY AS TO THE PROPERTY S

CONDITION OR FITNESS FOR ANY PARTICULAR PURPOSE) AND WITH ALL FAULTS AND

PROBLEMS OF ANY KIND AND/OR NATURE WHATSOEVER THAT MAY THEN EXIST, WHETHER THE SAME ARE OF A LEGAL NATURE, A PHYSICAL NATURE, OR OTHERWISE.

10.2 Release. City, on behalf of itself and its agents, representatives, successors, and assigns, hereby waives, releases, acquits, and forever discharges Land Trust and its agents, employees, attorneys, consultants, contractors, or representatives (or the successors and assigns of each of the preceding) of and from any and all claims, losses, fines, penalties, costs, damages, liabilities, demands, actions, causes of action, suits, and expenses of any nature whatsoever (including without limitation, reasonable attorneys fees, court costs and litigation expenses), direct or indirect, known or unknown, foreseen or unforeseen, which City or any of City s successors, or assigns now has or which may arise in the future on account of or in any way related to or in connection with any past, present, or future aspect, feature, characteristic, circumstance, or condition arising out of or in connection with the Property, and City specifically waives the provisions of California Civil Code section 1542, which provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT

THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR

SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF

EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR

HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.

The provisions of this Section 10 do not, however, release Land Trust from any of Land Trust s express obligations under this Agreement or from fraud or willful misconduct. ________________ CITY S INITIALS

10 36594217.5

11. General Provisions. 11.1 Cooperation. The Parties will, whenever and as often as reasonably requested to do so by the other Party, execute, acknowledge, and deliver or cause to be executed, acknowledged, and delivered any and all documents and instruments as may be reasonably necessary, expedient, or proper in the reasonable opinion of the requesting Party to carry out the intent and purposes of this Agreement, provided that the requesting Party will bear the cost and expense of such further instruments or documents (except that each Party will bear its own attorneys fees).

11.2 Construction. The provisions of this Agreement should be liberally construed to effectuate its purposes. The language of all parts of this Agreement will be construed simply according to its plain meaning and will not be construed for or against either Party, as each Party has participated in the drafting of this document and had the opportunity to have their counsel review it.

11.3 Interpretation. The headings of this Agreement are inserted for convenience and identification only and are not intended to describe, interpret, define, or limit the scope, extent, or intent of this Agreement or any provisions hereof. This Agreement will be construed according to the fair meaning of its language. Unless the context clearly requires otherwise, (a) the plural and singular will each be deemed to include the other; (b) the masculine, feminine, and neuter genders will each be deemed to include all genders; (c) d)
exclusive; (e)
following such words will not be interpreted to be exhaustive or limited to items of the same type as those described; and (f)
day for performance occurs on a Saturday, Sunday, or any legal holiday, then the next succeeding business day will be the last day for performance. Time is of the essence in this Agreement.

11.4 Successors and Assigns. This Agreement is binding on and will inure to the benefit of the Parties and their respective heirs, legal representatives, successors, and assigns.

11.5 Governing Law. The validity and interpretation of this Agreement is governed by the laws of the State of California without giving effect to the principles of conflict of laws, with venue for all purposes to be proper only in the County of Santa Barbara, State of California.

11.6 Severability. If any term, provision, covenant, or condition of this Agreement is determined to be unenforceable by a court of competent jurisdiction, it is the Parties intent that the remaining provisions of this Agreement will remain in full force and effect and will not be affected, impaired, or invalidated by such a determination.

11.7 Counterparts; Electronic Signatures. This Agreement may be executed in any number of counterparts, each of which will be an original, but all of which will constitute one and the same Agreement.

This Agreement may be validly executed and delivered by portable document format (.pdf) or image file or using an electronic signature software service complying with the United States federal ESIGN Act of 2000 and California Uniform Electronic Transactio
delivery of an executed signature page by .pdf or image file or using such electronic signature service will be as effective and binding as delivery of a manually executed counterpart of this Agreement.

11.8 Good Faith. The Parties agree to exercise their best efforts and utmost good faith to effectuate all the terms and conditions of this Agreement and to execute such further instruments and documents as are necessary or appropriate to effectuate all of the terms and conditions of this Agreement.

11.9 Waiver. The waiver of any breach of any provision of this Agreement by any Party to this Agreement will not be deemed to be a waiver of any proceeding or subsequent breach under the Agreement,

11 36594217.5
nor will any waiver constitute a continuing waiver. No waiver will be binding unless executed in writing by the Party making the waiver.

11.10 Entire Agreement and Amendment. This Agreement contains the entire understanding and agreement of the Parties and there have been no promises, representations, agreements, warranties, or undertakings by any of the Parties, either oral or written, of any character or nature binding except as stated in this Agreement. This Agreement may be altered, amended, or modified only by an instrument in writing, executed by the Parties to this Agreement and by no other means. Each Party waives their future right to claim, contest, or assert that this Agreement was modified, canceled, superseded, or changed by any oral agreement, course of conduct, waiver, or estoppel.

11.11 Recitals; Exhibits. The recitals and exhibits hereto are integral components of this Agreement and are hereby incorporated herein by this reference.

Remainder of Page Intentionally Left Blank; Signatures Appear on Following Page

12 36594217.5
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.

The Land Trust For Santa Barbara County, a California nonprofit public benefit corporation City of Carpinteria, a California municipal corporation By: __________________________________
Name: Meredith Hendricks
Title: Executive Director
Date Signed: _________________________
By: _________________________________
Name: Natalia Alarcon
Title: Mayor
Date Signed: _________________________
Attest: ______________________________
Print Name: Brian C. Barrett
Print Title: City Clerk
Approval as to Form: ____________________________________ Jena Shoaf Acos, on behalf of Brownstein Hyatt Farber Schreck, LLP acting as City Attorney of
the City of Carpinteria

13 36594217.5
Exhibit A
Legal Description
Real property in the City of Carpinteria, County of Santa Barbara, State of California, described as follows:

That portion of RANCHO EL RINCON in the County of Santa Barbara, State of California, described as follows:

Beginning at a point on the Westerly boundary of the land conveyed to Alyce Brooks by the deed recorded August 10, 1948 as Instrument No. 11163 in Book 799, Page 105 of Official Records in the office of the County Recorder of said county and shown on the map filed in Book 30, Page 166 of record of surveys in the office of said county Recorder, at the most Northerly corner of the land described in parcel Two in the deed to the State of California recorded October 31, 1968 as Instrument No. 33906 in Book 2250, Page 689 of said Official Records, being Northerly along said Westerly line 69.84 feet from the Northeasterly line of the S.P. railroad right of way shown on said map; thence Northerly along said Westerly line 310 feet more or less, to the intersection with the Southwesterly boundary line of the land described in the deed to the State of California recorded February 8, 1967 as Instrument No. 3460 in Book 2180, Page 772 of said Official Records; thence Southeasterly along said Southwesterly line, 13.08 feet to an angle point, 148.70 feet to an angle point, 103.36 feet to an angle point and 8.07 feet to the Northwesterly corner of the land described in Parcel One in the first mentioned deed to the State of California; thence Southerly along the Westerly boundary line of said Parcel One, 63.09 feet to an angle point and Southeasterly along the Southwesterly boundary line of said Parcel One, 60.53 feet to an angle point on the general Southwesterly boundary line of the land described in Parcel One in the deed to the State of California recorded September 22, 1966 as Instrument No. 30708 in Book 2166, Page 573 of said Official Records; thence Easterly and Southeasterly along said general Southwesterly line; 2.16 feet to an angle point, 102.8 feet to an angle point, 60.58 feet to an angle point and 183.87 feet to the intersection with the Northwesterly boundary line of the land described in the deed to the State of California recorded August 26, 1966 as Instrument No. 27836 in Book 2163, Page 785 of said Official Records; thence Southwesterly along said Northwesterly line 44.92 feet to the most Easterly corner of the land described in parcel Two of said deed to the State of California recorded in Book 2166, Page 573 of Official Records; thence Northwesterly along the Northeasterly boundary line of said last mentioned Parcel Two, to and along the Northeasterly line of the above mentioned Parcel Two in the deed recorded in Book 2250, Page 689 of said Official Records, 453 feet, more or less, to the Point of Beginning.

Excepting an undivided 5% of all oil, gas and other minerals in, on or under the surface of said premises as reserved by T. H. Canfield and Opal A. Canfield in deed to James F. Slaybaugh and Beulah Pearl Slaybaugh, recorded in Book 798, Page 162 of Official Records, of said county, and filed on August 10, 1948 as Torrens Instrument No. 2414, in the office of the registrar of land titles of said county.

Also excepting therefrom an undivided 10% of all oil, gas and other minerals in, on, or under the surface of said premises, as reserved by James F. Slaybaugh and wife, in deed to Alyce Brooks, recorded in Book 799, Page 105 of Official Records, records of said county, and filed on August 10, 1948 as Torrens Instrument No. 2415 in the office of the registrar of land titles.

Also excepting therefrom an undivided 30% of all oil, gas and other minerals in, on or under that portion of said land as reserved in deed from Donald D. Davis and Charlotte Davis, husband and wife, recorded November 2, 1957 as Instrument No. 24403 in Book 1487, Page 586 of Official Records of said county.

Also excepting therefrom as to the remaining, all oil, oil rights, minerals, mineral rights, natural gas, natural gas rights, and other hydrocarbons by whatsoever name known that May be within or under the parcel of land hereinabove described, together with the perpetual right of drilling, mining, exploring and operating therefor and removing the same from said land or any other land, including the right to whipstock or directionally drill and mine from lands other than those hereinabove described, oil, or gas

14 36594217.5
wells, tunnels and shafts into, through or across the subsurface of the land hereinabove described, and to bottom such whipstock or directionally drilled wells, tunnels and shafts under and beneath or beyond the exterior limits thereof, and to redrill, retunnel, equip, maintain, repair, deepen and operate any such wells or mines, without, however, the right to drill, mine, explore and operate through the surface or the upper 100 feet of the subsurface of the land hereinabove described or otherwise in such manner as to endanger the safety of any highway that may be constructed on said lands, as excepted in deed from James L. Ferry, Jr., as trustee of the James L. Ferry, Jr. And Mary Ella Ferry revocable trust to Santa Barbara dinner house, a limited partnership, recorded July 24, 1981 as Instrument No. 81-30379 of Official Records.

15 36594217.5
Exhibit A-1
Depiction of Property

16 36594217.5
Exhibit B
Form of Conservation Easement
[to be attached]

36594217.5
Exhibit C
Form of Grant Deed

RECORDING REQUESTED BY,
AND WHEN RECORDED MAIL TO:

City of Carpinteria ________________________ ________________________ Attn: ____________________

MAIL TAX STATEMENTS TO SAME
ADDRESS AS ABOVE _____________________________________________________________________________________ Space above this line for Recorder's Use Only 27383, 27388.1
APNs: 001-210-013, 16, & 23
Documentary transfer tax is $ ______________________
() computed on full value of property conveyed, or
() computed on full value less value of liens and encumbrances remaining at the time of sale. () Unincorporated area (X) City of Carpinteria
(X) Realty not sold. GIFT

GRANT DEED
For good and valuable consideration, the receipt of which is hereby acknowledged, The Land Trust for Santa Barbara County, a California nonprofit public benefit corporation does hereby grant and convey to City of Carpinteria, a California municipal corporation ("Grantee"), all the real property situated in the County of Santa Barbara, State of California, described at Exhibit A attached hereto and incorporated herein by this reference.

TO HAVE AND TO HOLD, the above granted and described premises, together with all tenements, hereditaments, and appurtenances, including improvements, fixtures, timber, water, crops, oil, gas and minerals located in, under, and on it, and all rights appurtenant to it, including, but not limited to, timber rights, water rights, grazing rights, access rights, and oil, gas and mineral rights, development rights, air rights, and all other rights, privileges, licenses, and permits owned by Grantor and in any way related to or accruing to the use and benefit of that real property, unto Grantee, and its assigns.

AND warrant the title to the same, against any challenge claiming by, through or under, Grantor, but not otherwise.
[Remainder of page left intentionally blank; signature page to follow]

36594217.5
IN WITNESS WHEREOF, Grantor has executed this instrument on _____________, 20__ The Land Trust for Santa Barbara County,
a California nonprofit public benefit corporation
By: ______________________________
Name: __________________________
Title: ____________________________
[Acknowledgment]

36594217.5

EXHIBIT A

LEGAL DESCRIPTION
[legal description to be attached to execution version]

36594217.5
Exhibit D
Amended and Restated Endowment Agreement
[to be attached]

EXHIBIT 2 TO RESOLUTION NO. 6449

1 34809865.5

RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:

THE LAND TRUST FOR SANTA

BARBARA COUNTY
Post Office Box 91830
Santa Barbara, California 93190-1830
Telephone: (805) 966-4520
APNs: 001-210-013, 001-210-016, 001-210-023

DEED OF CONSERVATION EASEMENT
(RINCON GATEWAY)
This DEED OF CONSERVATION EASEMENT ( Easement ) is made this ______ day of _______________________, 2026, by CITY OF CARPINTERIA, a California municipal corporation ( CITY ), in favor of THE LAND TRUST FOR SANTA BARBARA COUNTY, a California nonprofit public benefit corporation ( LAND TRUST ) P P , for the purpose of granting in perpetuity the Easement and associated rights described below. This Easement shall be effective upon recordation in the Official Records of the County of Santa Barbara, State of California (such date of recordation,

RECITALS
A. CITY is the sole owner in fee simple of certain real property consisting of approximately

2.48 acres, located within the City of Carpinteria and the County of Santa Barbara, State of California, having an address of 6555 Carpinteria Avenue, identified as Santa Barbara County APNs 001-210-013, 001-210-016, and 001-210-023, and described in Exhibit A and depicted on Exhibit B, each attached hereto and incorporated herein by this reference (the Property ).

B. LAND TRUST is a publicly-supported, tax-exempt qualified conservation organization as defined by Sections 501(c)(3) and 170(h) of the Internal Revenue Code of 1986, as amended, and Section 23701(d) of the California Revenue & Taxation Code, and is eligible to hold this Easement pursuant to Section 815.3 of the California Civil Code. As certified by Resolution of its governing body, LAND TRUST accepts the responsibility of monitoring and enforcing the terms of this Easement and upholding its conservation purposes.

C. LAND TRUST raised significant private funds for the acquisition and preservation of the Property and to establish an endowment for its maintenance.

D. The Property possesses many attributes that are of importance to the people of Carpinteria, Santa Barbara County, and the State of California, including natural conditions, open space, habitat for native plants and wildlife, coastal access, trails for non-motorized recreation of many types,

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and scenic views of the Property and of the Santa Barbara Channel, the Channel Islands, and the Santa Ynez Mountains (collectively, . E. The current physical and biological conditions of the Property, as well as its current uses and state of improvement, are described in a baseline conditions report dated September 2025, and prepared by LAND TRUST, with the cooperation of CITY, consisting of maps, photographs, and other documents, and acknowledged by both P
As certified on the acknowledgement attached hereto as Exhibit C and incorporated herein by this reference, CITY and LAND TRUST acknowledge that the Baseline Report is accurate as of the Effective Date. Both CITY and LAND TRUST have received copies of the Baseline Report, which will be used by LAND TRUST to assist in its monitoring and enforcement of CITY S compliance with this Easement. The Baseline Report, however, is not intended to preclude the use of other evidence by either Party to establish the baseline condition of the Property if there is a controversy over some aspect of that condition.

F. The grant of this Easement will further the purposes of the following clearly delineated governmental conservation policies:

Section 815 of the California Civil Code, in which the California Legislature has declared that (1) the preservation of land in its natural, scenic, agricultural, historical, forested, or open-space condition is among the most important environmental assets of California ; and (2) it is in the public interest of this state to encourage the voluntary conveyance of conservation easements to qualified nonprofit organizations.

Divisions 20 and 21 of the California Public Resources Code call for the protection, conservation, restoration, and enhancement of the environment of the California coastline.

The Santa Barbara County Comprehensive Plan, as amended from time to time, which currently includes as two of its goals the preservation of natural systems and the preservation of open space.

The City of Carpinteria General Plan, which contains many objectives and policies that support the preservation of land and open space for habitat and recreation:

Objective OSC-1: Protect, preserve and enhance local natural resources and habitats.

Objective OSC-2: Preserve and restore the natural resources of the Carpinteria Bluffs.

Objective OSC-15: Maintain the existing trail system and provide additional recreation and access opportunities by expanding the trail system.

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G. CITY intends, as part of its General Plan update process, to consider re-designating and rezoning the Property to a General Plan designation and zoning classification consistent with the maintenance and protection of the Conservation Values, such as Open Space/Recreation (General Plan designation) and Recreation (zoning classification).

H. CITY desires to convey to LAND TRUST, and LAND TRUST desires to accept from CITY, this Easement to ensure that the Conservation Values will be conserved and sustained in perpetuity and that no uses of the Property that are inconsistent with the protection of the Conservation Values will be allowed.

Deed and Agreement
In consideration of the recitals set forth above, and in consideration of their mutual promises and covenants, CITY hereby grants and conveys to LAND TRUST and all successors and assigns, and LAND TRUST hereby accepts, a perpetual conservation easement as defined by Section 815.1 of the Conservation Easement Act of 1979 (California Civil Code section 815 et seq.) over the Property, of the nature and character described in this Easement.

1. PURPOSE. The purpose of this Easement is to ensure protection of the Conservation Values (the Purpose ). The Parties intend that this Easement will limit the use of the Property only to activities that are in conformance with the Purpose. As used in this Easement, the terms significantly impair and significant impairment shall mean to diminish in quantity, quality, value, strength or viability for more than a transient period.

2. AFFIRMATIVE RIGHTS CONVEYED TO LAND TRUST.

To accomplish the Purpose, CITY hereby conveys the following rights and interests to LAND TRUST to the extent they are carried out in accordance with applicable federal, state, and county laws and ordinances, and CITY Regulation(s) (as defined in Section 6 below) (collectively, , and subject to acquiring any required regulatory approvals:
(a) Identify, Preserve, and Protect Resources and Values. To identify, preserve, and protect in perpetuity the character, use, utility, soil and water quality, and the Conservation Values of the Property.
(b) Monitor Uses and Practices. To enter upon, inspect, observe, and study the Property for the purposes of identifying the current uses and practices thereon and the baseline condition thereof, to conduct research on and make scientific observations of the ecological systems, and to monitor the uses and practices regarding the Property to determine whether they are consistent with this Easement. Except in cases where LAND TRUST determines, in its reasonable discretion, that immediate entry is required to investigate a use or condition on the Property in order to monitor, prevent, terminate, or mitigate a violation or potential violation of the terms of this Easement, such entry shall be permitted upon prior notice to CITY and shall be made in a manner that will not unreasonably interfere with CITY S management, compliance with this Easement, and the public s use of the Property.

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(c) Prevent Significant Damage to Conservation Values. Subject to compliance with the notice requirements contained herein, to prevent any activity on or use of the Property as provided in this Easement that is inconsistent with the Purpose or may cause significant damage to the Conservation Values, to require the restoration of such areas or features that may be damaged by any inconsistent activity or use, and to otherwise enforce the terms of this Easement. (d) Implement Conservation Improvements. To develop and implement, in consultation with and upon agreement by CITY, which shall not be unreasonably withheld, projects for the purpose of identifying and promoting ecological improvements or enhanced management techniques which may restore or enhance the Property. Such improvements and/or techniques shall not impose involuntary costs on CITY and shall not unduly interfere with uses expressly permitted under this Easement. Such projects may include, but are not limited to, planting and/or maintaining native vegetation on the Property; controlling and removing nonnative vegetation, noxious weeds, and feral and non-native animals on the Property; undertaking actions to introduce or reintroduce native animal species known to occur, or to have occurred in the area of the Property; construction of wetland and recreational access features; and erecting, maintaining, and/or removing fencing on the Property.
(e) Install and Maintain Signage. To install and maintain a sign or signs or other appropriate markers in prominent locations on the Property bearing information indicating that the Property is protected, marking trails, recognizing partners and donors, or providing educational information about the Property and the surrounding natural and historical resources. The design, size, and wording of the signage shall be determined by CITY and LAND TRUST, and LAND TRUST shall be responsible for the costs of erecting and maintaining such signs or markers unless CITY accepts responsibility for such signage. All signs shall be sited and designed in accordance with the Purpose and shall not significantly impair the Conservation Values.

3. PERMITTED USES AND PRACTICES THAT ARE COMPATIBLE WITH THIS EASEMENT.

CITY and LAND TRUST intend that this Easement shall confine the uses of the Property to those uses that are consistent with the Purpose of this Easement. The following uses and practices, if conducted in accordance with Applicable Law, applicable regulatory approvals, and the Management and Improvement Plan (as defined in Section 3(a) below), if applicable, are specifically permitted and constitute compatible uses under this Easement and are therefore reserved to CITY, its personal representatives, successors, and assigns, as provided below. (a) Management and Improvement Plan. CITY may develop and implement a resource management and improvement plan that shall include a public access component and Improvement and Improvement Plan shall be a
guiding document for protecting, restoring, and enhancing the significant, undeveloped and relatively natural ecosystems and cultural resources, while providing compatible public recreational use. At a minimum, the Management and Improvement Plan shall include a description of (1) the existing conditions of the Property, (2) the management goals for the Property, (3) the recommended methods and activities for reaching the management goals, and (4) the process to monitor, evaluate, and, if necessary, adapt over time to reach the management

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goals. It is not the intent of the Management and Improvement Plan to include a formal master plan for long-term recreational use. Best management practices will be incorporated into the Management and Improvement Plan to ensure that all management activities are conducted in a manner that is consistent with the terms of this Easement. The City also owns the adjacent approximately 21.65-acre property at 6351 Carpinteria Avenue, APNs: 001-210-020 and 001-210- Rincon Bluffs which is encumbered by a conservation
easement also held by LAND TRUST. The Parties contemplate that the Property and this Easement and the Rincon Bluffs property and conservation easement may be managed under a single Management and Improvement Plan.

The Management and Improvement Plan and any future updates and amendments will be subject to review and approval by LAND TRUST, which approval shall not be unreasonably withheld and
Improvement Plan and any future updates and amendments shall be limited to ensuring the Management and Improvement , and Purpose of this
Easement.

The Management and Improvement Plan shall not be implemented on the Property until LAND TRUST has approved it. Once LAND TRUST has approved the Management and Improvement Plan, uses and improvements described in that approved Management and Improvement Plan, and all development necessary to implement those described uses and improvements, shall be deemed to be consistent with the Purpose of this Easement and shall be permitted on the Property without further notice to or approval by LAND TRUST required; provided that all such uses and improvements, and all development necessary to implement those described uses and improvements, are consistent with the Purpose and other terms and conditions of this Easement.
(b) Recreational Trails and Maintenance. CITY may develop, maintain, reroute, restore, and improve public recreational trails on the Property in compliance with the Management and Improvement Plan and Applicable Law and undertaken in a manner so as to minimize significant impairment of the Conservation Values. Such trails shall be designed and located in consultation with LAND TRUST. W S prior written approval, which shall not be unreasonably withheld, certain sections of such trails may be paved to accommodate persons with mobility disabilities so long as such paving is undertaken in a manner so as to minimize significant impairment of the Conservation Values.
(c) Parking. CITY may construct a single parking lot of no more than 25,000 square feet at the location on the Property as depicted in Exhibit D, attached hereto and incorporated herein by this reference; provided, however, that if CITY elects to construct parking on the Rincon Bluff property, the number of parking spaces on the Property may be reduced by Land Trust in its reasonable discretion. Additional parking facilities on the Property may be constructed only with prior written approval of LAND TRUST, which approval shall not be unreasonably withheld, and only if necessary to support documented public recreational use of the Property. Parking revenue collected, if any, shall be used for Property management and maintenance. Notwithstanding the prohibition on camping provided in Section 4(e) below, CITY may use any parking facilities constructed on the Property to support CITY program providing safe overnight parking primarily

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for persons at risk of homelessness and similar programs, so long as such use does not cause a nuisance, complies with all Applicable Laws, and does not significantly impair the Conservation Values.
(d) Structures. Not including any structures constructed pursuant to Section 3(l), CITY may construct no more than one (1) one-story building (not exceeding 800 square feet of total combined building footprint and not to exceed sixteen (16) feet in height) limited to restroom, equipment storage, and interpretive uses. Building shall be sited as close to Carpinteria Avenue as cost-effective engineering, architectural, and aesthetic design allows and in no event more than one hundred fifty (150) feet from Carpinteria Avenue. CITY may also construct overlooks and erosion-control structures along the edge of the bluff to provide for safe public access to the edge of the bluff.
(e) Signage. CITY may construct signs or other appropriate markers in prominent locations on the Property bearing information that the Property is protected, marking trails, recognizing donors and supporters, and providing educational information about the Property and the surrounding natural and historical resources. All signs shall be sited and designed in accordance with the Purpose and shall not significantly impair the Conservation Values. (f) Fences. CITY may construct permanent or temporary fences for the purposes of closing areas to public access, managing vegetation or habitat, preventing vehicle access to the Property, and for the health or safety of the public. All fences shall be constructed in compliance with the Management and Improvement Plan and Applicable Law and shall be designed and sited to minimize significant impairment of the Conservation Values. (g) Public Access. The Property may be used by the public for noncommercial passive recreational uses such as wildlife viewing, walking, hiking, biking, and birdwatching, provided that all public access shall be compatible with the Purpose. (h) Vegetation Management and Removal, and Habitat Restoration and Improvement Projects. CITY, in consultation with and upon agreement by LAND TRUST, which shall not be unreasonably withheld, may (1) mow or remove vegetation on the Property for trail management, weed control, and fire prevention, and as provided below; (2) develop and implement projects which may restore or enhance the Conservation Values of the Property, including, but not limited to, planting and/or maintaining native vegetation on the Property; controlling and removing non-native vegetation and noxious weeds on the Property; undertaking actions to introduce or reintroduce native animal species known to occur, or to have occurred in the area of, the Property; and construction of wetland features on the Property; and (3) support new native plantings with irrigation system installations in accordance with sound, generally accepted management practices. Actions authorized under this Section 3(h) shall be undertaken in compliance with the Management and Improvement Plan and Applicable Law, shall not impose involuntary costs on LAND TRUST, and shall not unduly interfere with other permitted uses.

The control (using selective control techniques) and removal of non-native invasive vegetation is permitted and encouraged. CITY may clear or trim native vegetation only as provided above in this Section 3(h)and:

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(1) To maintain defensible space, pursuant to the Fire Department with jurisdiction, around structures, roads, and utilities.
(2) In an emergency when necessary to prevent personal injury or property damage, such as flood or fire. CITY shall notify LAND TRUST prior to or as soon as possible after beginning any emergency clearing, as set forth in Section 8(a). (3) To control insects and disease or promote the ecological health of the trees or vegetative community, including thinning of undergrowth and removal of senescent dead and decadent plant material, under the direction of a qualified biologist and in a manner consistent with the Purpose of this Easement. (i) Special Events. CITY may allow special events, such as social, recreational, and educational events, that do not significantly impair the Conservation Values. Any special event shall not exceed a maximum of twelve (12) hours in duration. CITY may allow up to six (6) special events per year, each with a maximum of 250 persons. CITY may allow additional special events exceeding 250 persons upon prior written approval of LAND TRUST, which shall not be unreasonably withheld. Revenue collected by the CITY from such events, if any, shall be used for management and maintenance of the Property.
(j) Routine Maintenance, Repair, and Installation. CITY may maintain, repair, and replace structures, fences, roads, recreational trails, drainage ditches, underground utilities and other improvements, both existing and approved pursuant to this Easement. Notwithstanding Sections 4(m) and 4(o), with prior written notice to LAND TRUST, CITY may alter topography, watercourses, and drainage features on the Property when necessary to maintain or repair drainage features or avoid damage to other real property and/or to manage coastal erosion, provided that such activities shall not significantly impair the Conservation Values. In addition, CITY shall have the right to repair or reconstruct in its same general size, location, and function any damaged or destroyed structure or facility that was in existence on the Effective Date of this Easement or subsequently constructed pursuant to the terms hereof. Any repair or reconstruction not meeting unreasonably withheld.
(k) Response to Emergency Needs. In a short-term emergency (defined as an emergency lasting thirty (30) days or less) on the Property, with prior written notice to LAND TRUST where reasonably feasible under the circumstances, CITY may take such limited and temporary actions, including interrupting public access and closing trails, as are reasonably necessary to protect the health and safety of persons, property, and the Property, but only to the extent necessary for such protection and provided such actions are in compliance with Applicable Law. In cases where prior written notice to LAND TRUST is not possible in advance of taking such emergency action, CITY shall provide LAND TRUST with written notice as soon as is reasonably feasible under the circumstances. If emergency actions taken in accordance with this Section 3(k) continue for more than thirty (30) days, CITY shall S approval, which shall not be unreasonably withheld, to continue such emergency actions.

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(l) Water Resources. CITY may, with prior written notice to LAND TRUST, develop and maintain water resources and improvements, such as an irrigation system including tanks for harvesting rainwater, wells, water pipes, and drip lines, and/or watering trucks for the purpose of maintaining appropriate plant species and preventing dust within the Property, provided that such activities do not significantly impair the Conservation Values. Structures for any water well system shall be recessed or otherwise designed to minimize significant visual impairments. Any other artificial surface-water reservoirs, water resources, water-related improvements, or ponds may not be developed or maintained in the Property, except as described in Section 3(h) for purposes of habitat restoration or improvement.
(m) Control of Animals and Non-Native Plants. CITY may control problem animals and non-native species by the use of selective control techniques consistent with preservation of the Conservation Values. The term s s the use of techniques or methods that are targeted to control the problem species with the least practicable impact on humans and other plants or animals.
(n) Utility Easements. CITY may provide for underground utility easements to public and quasi-public utilities, provided that such uses do not significantly impair the Conservation Values. Any proceeds from the sale of a utility easement shall be used by CITY for the benefit of the Property.
(o) Temporary Structures. CITY may, subject to all Applicable Laws, allow small temporary structures, such as platforms, umbrellas, shade structures, fencing, tables and/or seating, to be erected for periods not exceeding twelve (12) hours.

4. PROHIBITED USES AND PRACTICES THAT ARE NOT COMPATIBLE WITH THIS EASEMENT.

Any activity on or use of the Property that is inconsistent with the Purpose of this Easement is prohibited. Without limiting the generality of the foregoing, the following activities and uses are inconsistent with the Purpose of this Easement and are expressly prohibited. (a) Subdivision. The Property consists of one (1) legal parcel, even though it may be . CITY shall not apply for
or otherwise seek recognition of additional legal parcels within the Property based on certificates of compliance or any other authority. The following uses are inconsistent with the Purpose and are prohibited: (1) the division or subdivision of the Property (whether by physical, legal, or any other process); and (2) the sale or conveyance of any portion of the Property separate from the sale or conveyance of the Property as a whole.
(b) Residential, Agricultural, Retail, Vending Machines, Commercial or Industrial Uses. The establishment of any residential, agricultural, retail, commercial, or industrial uses, including the construction, placement or erection, of any commercial structures, vending machines, or advertising is prohibited; provided, however, that the recreational and parking uses specified in Sections 3(c) and 3(d), including automated equipment to manage public parking, shall not be considered commercial uses if operated by CITY, a qualified nonprofit

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organization, or a subcontractor of CITY. Temporary retail sales on the Property during an event allowed under Section 3(i) above or for the sole benefit of a tax-exempt entity under the Internal Revenue Code shall not be deemed a retail use.
(c) Construction of Buildings, Facilities and Other Structures. Except as expressly provided herein, the construction of any building, facility or structure of any type is prohibited. (d) Paving and Road Construction. Except as permitted in Section 3 of this Easement, there shall be no road construction or paving within the Property. For purposes of this Section 4(d) , or other
impervious surface, but shall not include the application of gravel, decomposed granite, or other permeable surfaces to stabilize unpaved roads and trails. (e) Camping and Overnight Use. Except as provided in Section 3(c) above, the use of the Property for camping or for recreational use after sunset and before sunrise is prohibited. (f) Fires or Barbecue Pits. The use of fires (except by CITY for fire and/or biological management purposes), fireworks, firearms, fire pits, barbecues, or similar activities or devices is prohibited.
(g) Night Lighting or Amplified Sound. The use of any night lighting is prohibited within all areas of the Property, except for security or safety purposes limited to parking permitted under Section 3(c) and the permitted structures described in Section 3(d) and provided that such lighting is shielded to minimize direct glare, is protective of dark night skies, and minimizes spill light outside the immediate area. In addition, the use of any amplified sound is prohibited, except as allowed with a special event permit issued by CITY for events that do not significantly impair the Conservation Values.
(h) Use of the Property for Solar or Wind Energy Generation. The use of the Property for energy production or transmission, including but not limited to solar or wind energy generation, is prohibited, except for use of solar panels on those structures described in Section 3(d) to provide energy to those structures.
(i) Motorized Vehicles. The use of motorized and/or off-road vehicles including motorcycles is prohibited outside the designated parking lot(s), with the exception of the following: (1) the use by CITY or others under control for fire and/or biological management, security patrol, restoration, construction, maintenance, health and safety, educational events, and/or law enforcement purposes; and (2) the use of Other Power-Driven Mobility Devices, as defined under the Americans with Disabilities Act, 42 U.S.C. § 12101 et seq., by persons with mobility disabilities. Parking of motorized vehicles (except on a temporary basis in association with the activities set forth in this Easement) is prohibited on any portion of the Property, with the exception of improved parking lots as provided for in Section 3(c). At discretion, CITY, as part of any special event permit issued for use of the Property, may authorize a limited number of motor vehicles to drive and park on the Property outside the designated parking lot(s) for logistical reasons, provided that such use does not significantly impair the Conservation Values.

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(j) Signs. No billboards or signs shall be erected in the Property, except as specifically permitted in Sections 2(e) and 3(e).
(k) Dumping or Disposal. The dumping or other disposal of wastes, refuse, or debris on the Property is prohibited, with the exception of temporary storage of waste generated on the Property for periodic removal off-site. (l) Erosion. Any use or activity that causes significant degradation of topsoil quality, significant pollution, or a significant increase in the risk of erosion affecting the Conservation Values is prohibited.
(m) Alteration of Topography. Except as necessary to implement the permitted uses set forth in Section 3 of this Easement or as otherwise explicitly provided for this Easement, any alteration of the general topography or natural drainage of the Property, including, without limitation, the excavation or removal of soil, sand, gravel, or rock is prohibited. (n) Mining. (1) Surface Mining. The mining, extraction, or removal of soil, sand, gravel, oil, natural gas, fuel, or any other mineral substance, using any surface or subsurface mining method, is prohibited.
(2) Mineral Rights. Any right, title, and interest in subsurface oil, gas, and minerals owned by CITY shall not be sold separately from the surface property.
(o) Watercourses. The alteration or manipulation of watercourses located on the Property is prohibited, except as specifically permitted in Section 3(h), (j), (k), and (l). (p) Native Vegetation Management. The cutting or clearing of native vegetation is prohibited in areas outside of trails and around permitted parking areas or structures, except as provided in Section 3(h) above.
(q) Planting of Non-Native Plants. The intentional introduction of plants that are not native to the coastal areas of Santa Barbara and Ventura Counties is prohibited. (r) Storage. Long-term storage of any materials (pipes, lumber, and other construction material) or vehicles is prohibited, except when those items are necessary for an active construction or restoration project within the Property.
(s) Mitigation Use of Property. The use of the Property for mitigation purposes is expressly prohibited. CITY shall not use or allow the use of any portion of the Property for mitigation purposes (in other words, to compensate for adverse changes to the environment elsewhere).
(t) Other Incompatible Uses. Any activity or use that will significantly impair the Conservation Values or interfere with the restoration and/or enhancement of the Conservation

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Values is prohibited. Such incompatible uses or activities include but are not limited to off-trail equestrian activities; paintball games; bicycle motocross courses (BMX) or other sports or hobby activities that generate noise, damage grassland areas or coastal sage scrub; harvesting of plants or plant products; and frequent large gatherings that interfere with the public s passive enjoyment of the natural qualities of the Property. To protect the Conservation Values, and upon prior written notice to LAND TRUST, CITY, in its reasonable discretion, may adopt further restrictions on uses and practices otherwise constituting permitted uses and practices under this Easement.

5. RESERVED RIGHTS. CITY reserves to itself, and to its personal representatives, successors and assigns, all rights accruing from the ownership of the Property, including the right to engage in or permit or invite others to engage in all uses of the Property that are not expressly prohibited or limited herein and are not inconsistent with the Purpose of this Easement. Without limiting the generality of the foregoing, the following rights are expressly reserved:
(a) Water Rights. All right, title, and interest in and to all tributary and non-tributary water, water rights, and related interest in, on, under or appurtenant to the Property; provided, however, that such water rights are used on the Property in a manner consistent with the Purpose of this Easement.
(b) Mineral Rights. All right, title, and interest in subsurface oil, gas, and minerals to the extent owned by CITY.

6. REGULATORY AUTHORITY. intent is to operate, maintain, and regulate the Property as part of its public park system. The Property remains subject to the full measure of police powers and regulatory authority, including Municipal Code and General Plan/Local Coastal Plan ( collectively, CITY Regulations ), and CITY does not relinquish or waive any such powers over the Property. Any activity or improvement proposed on the Property, including activities and improvements proposed pursuant to the terms of this Easement, are subject to all applicable CITY Regulations, and nothing in this Easement shall be construed to prevent CITY from taking any actions with respect to the Property when required to comply with any applicable CITY Regulation or Applicable Law or to subject CITY to liability for such actions. Notwithstanding anything contained herein to the contrary, if any term of this Easement conflicts with any CITY Regulation, S compliance with a CITY Regulation would constitute a violation of the terms of this Easement, CITY shall either amend this Easement (pursuant to Section 11 below), obtain a variance or waiver of the particular inconsistent CITY Regulation, or cause the Property to be transferred, subject to Applicable Law, to a qualified entity that agrees to assume the obligations of CITY under this Easement.

7. ENDOWMENT FUND. CITY and LAND TRUST, with approval from Citizens for the Carpinteria Bluffs, a California nonprofit public benefit corporation, and COSMAB (defined below), amended the endowment agreement between CITY and LAND TRUST initially applicable to Rincon Bluffs, to include the Property, such that the endowment fund that generates funds annually will be available and used by CITY for the operation, maintenance, and enhancement of Rincon Bluffs and the Property.

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8. NOTICE OF ACTIVITIES.
(a) CITY Activities. Except as otherwise specifically provided in Section 3, prior to undertaking any significant improvements, alterations, and/or restoration/enhancement activities permitted under Section 3 or any activity that expressly requires prior notice to, or approval of, LAND TRUST, CITY shall notify LAND TRUST and all parties listed in Section 20 not less than thirty (30) days prior to the date CITY intends to undertake the activity in question. The notice shall be in writing and shall, with reasonable specificity, describe the nature, scope, design, location, and any other material aspect of the proposed activity. No notice is required when CITY undertakes routine maintenance or routine repairs of the Property pursuant to Section 3(j) above. (b) LAND TRUST Activities. Prior to entry on the Property to conduct any activities that involve physical alteration of the Property or its natural resources, including but not limited to restoration and maintenance on the Property, LAND TRUST shall give thirty (30) days written notice to CITY of its intent to enter the Property and undertake the planned activity. The notice shall be in writing and shall, with reasonable specificity, describe the extent of the activities to be undertaken by LAND TRUST.
(c) Notification of Permit Applications. Both CITY and LAND TRUST agree to notify the other Party upon either Party s submission of a permit application for any activity permitted under this Easement.

9. CARPINTERIA OPEN SPACE MANAGEMENT ADVISORY BOARD. CITY shall include the Property in the jurisdiction of the Carpinteria Open Space Management Advisory Board ( COSMAB ) that advises CITY regarding development and use of Carpinteria Bluffs Nature Preserve and Viola Fields. COSMAB shall have members appointed by City Council using procedures in conformance with other CITY advisory committees. COSMAB meetings shall be open to the public.

10. MEDIATION. If a dispute arises between the Parties concerning either P compliance with the terms of this Easement, either Party may refer the dispute to mediation by request made in writing upon the other; provided, however, that if such dispute involves an activity or proposed activity of either Party, mediation shall proceed only if that Party agrees to cease or not to commence such activity, as applicable, during the pendency of the mediation process. If both Parties agree, in their respective sole discretion, to mediation via written notice, within thirty (30) days of the receipt of such a request, the Parties shall select a single trained and impartial mediator. If the Parties are unable to agree on the selection of a single mediator, then the Parties shall, within fifteen (15) days of receipt of the initial request, jointly apply to the American Arbitration Association for the appointment of a trained and impartial mediator with relevant experience in real estate and conservation easements. Mediation shall then proceed in accordance with the following guidelines:
(a) Purpose. The purpose of the mediation is to: (1) promote discussion between the Parties; (2) assist the Parties to develop and exchange pertinent information concerning issues in the dispute; and (3) assist the Parties to develop proposals that will enable them to arrive at a mutually acceptable resolution of the controversy. The mediation is not intended to result in any

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express or de facto modification or amendment of the terms, conditions, or restrictions of this Easement.
(b) Participation. The mediator may meet with the Parties and their counsel jointly or ex parte. The Parties agree that they will participate in the mediation process in good faith and expeditiously, attending all sessions scheduled by the mediator. Representatives of the Parties with settlement authority shall attend mediation sessions as requested by the mediator. (c) Confidentiality. All information presented to the mediator shall be deemed confidential and shall be disclosed by the mediator only with the consent of the Parties or their respective counsel. The mediator shall not be subject to subpoena by any Party. No statements made or documents prepared for mediation sessions shall be disclosed in any subsequent proceeding or construed as an admission of a Party. Notwithstanding the foregoing, CITY may disclose any information when required by law, including the California Public Records Act. (d) Time Period. Neither Party shall be obligated to continue the mediation process beyond a period of ninety (90) days from the date of the selection or appointment of a mediator or if the mediator concludes that there is no reasonable likelihood that continuing mediation will result in a mutually agreeable resolution of the dispute. (e) Costs. The cost of the mediator shall be borne equally by LAND TRUST and CITY; the P 11. AMENDMENT. This Easement may be amended only with the written consent of CITY and LAND TRUST. The Party requesting the amendment shall provide to the other Party notice of any proposed amendment and reasonable opportunity for comment. Any such amendment shall be consistent with the Purpose of this Easement and the adopted amendment policy of LAND TRUST in effect at the time, shall not affect its perpetual duration, and shall comply with Sections 501(c)(3) and 170(h) of the U.S. Internal Revenue Code, California Civil Code section 815 et seq., and any regulations promulgated in accordance with these statutes. All expenses related to review, approval, and recordation of any amendment may be reimbursed pursuant to the endowment agreement referenced in Section 7.

12. REMEDIES.
(a) Notice of Violation. If - determines that a
violation of any of the terms, conditions, covenants, or restrictions contained in this Easement has occurred or is threatened by the other Party or anyone acting under its authority, either express or implied , the Non-Breaching Party shall give written notice to the Breaching Party of such violation and demand corrective action sufficient to cure the violation.

The Non-Breaching Party will also cause a copy of same notice to be delivered to all entities listed in Section 20.
(b) Injunctive Relief. If the Breaching Party fails to cure the violation threatened or committed by the Breaching Party within a thirty (30)-day period after receipt of notice thereof from the Non-Breaching Party, or fails to continue diligently to cure such violation until finally cured after commencement of cure within said thirty (30)-day period, the Non-Breaching Party

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may bring an action at law or in equity in a court of competent jurisdiction to enforce the terms of this Easement and/or to enjoin the violation by temporary or permanent injunction against the Breaching Party. The Non-Breaching Party shall provide notice of such action to all entities listed in Section 20, provided that failure to provide such notice is not cause for dismissal of the action. (c) Damages; Costs of Restoration. The Non-Breaching Party, whether that be CITY or LAND TRUST, shall be entitled to recover monetary damages analogous to those provided in California Civil Code section 815.7(c) for damage to any of the Conservation Values caused by the Breaching Party. Where violation may cause, or has caused, damage to the Conservation Values, the court may order restoration of the Conservation Values so damaged to the condition that existed prior to any such injury. Without limiting liability therefor, the Non-Breaching Party may apply any damages recovered to the cost of undertaking any action to restore the Property and/or enhance the Conservation Values, each where reasonably practicable (or, if not reasonably practicable, to conserve property within the Carpinteria Valley), after deducting all reasonable costs of suit, including reasonable attorneys fees and consultant fees.
(d) Emergency Enforcement. If the Non-Breaching Party, in its sole discretion, determines that circumstances require immediate action to prevent or mitigate significant damage to the Conservation Values caused by the Breaching Party, the Non-Breaching Party may pursue its remedies under this Section 12 without waiting for the period provided for cure to expire. The Non-Breaching Party shall notify the Breaching Party in a timely fashion of any action proposed or taken pursuant to this Section.
(e) Scope of Relief. The Non- rights under this Section 12 shall apply equally to threatened as well as actual violations of the terms of this Easement. The Nonremedies described in this Section shall be cumulative and shall be in addition to all remedies now or hereafter existing at law or in equity. (f) Costs of Enforcement. If any legal or equitable action or proceeding is instituted to enforce or interpret any provision of this Easement, the prevailing Party in such action shall be entitled to recover from the losing Party all of the prevailing Party's reasonable costs of suit, including, but not limited to, reasonable attorney fees awarded by the court. (g) Enforcement Discretion. Enforcement of the terms of this Easement shall be at the discretion of either Party, and any forbearance by a Party to exercise its rights under this Easement shall not be deemed or construed to be a waiver by such Party of such rights or of any subsequent breach of the same or any other terms of this Easement or of its rights under the Easement. No delay or omission by a Party in the exercise of any right or remedy upon any breach by the other Party shall impair such right or remedy or be construed as a waiver, and each Party hereby waives any defense of laches, estoppel, or prescription. (h) Acts Beyond Control. Nothing contained in this Easement shall be construed to entitle a Party to bring any action against the other Party for any damage to or change in the Property resulting from causes beyond control, including, without limitation, fire, flood, storm and earth movement, from actions by persons acting outside the

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authority of such Party, either express or implied (such actions including actions by members of the public, including those members of the public using the Property pursuant to a permit or approval issued by CITY when the permit or approval is consistent with the Purpose and other terms of this Easement), or from any prudent action by a Party under emergency conditions to prevent, abate, or mitigate significant damage to the Property resulting from such causes, and the Parties shall not be liable for damages or costs of restoration resulting from any such acts. The Parties shall cooperate to remedy any such injuries or damage to the Property to the extent feasible.

13. COSTS AND LIABILITIES.
(a) CITY Costs and Liabilities. CITY retains all responsibilities and shall bear all costs and liabilities of any kind related to the ownership, operation, upkeep, and maintenance of the Property, including payment of property taxes and assessments of any kind, costs associated with fire management, and maintenance of adequate comprehensive general liability insurance coverage and does hereby indemnify and hold LAND TRUST harmless therefrom. CITY remains solely responsible for obtaining any applicable governmental permits and approvals for any construction or other activity or use permitted by this Easement, and all such construction or other activity or use shall be undertaken in accordance with Applicable Law. (b) LAND TRUST Costs and Liabilities. LAND TRUST retains all responsibilities and shall bear all costs and liabilities of any kind related to any maintenance or other activities that it performs on the Property and shall maintain adequate comprehensive general liability insurance coverage, and does hereby indemnify and hold CITY harmless therefrom. LAND TRUST remains solely responsible for obtaining any applicable governmental permits and approvals for any activities permitted by this Easement that it undertakes on the Property, and all such use shall be undertaken in accordance with Applicable Law.

14. INDEMNIFICATION.
(a) Indemnity. CITY shall hold harmless, indemnify, and defend LAND TRUST, its trustees, officers, members, employees, agents, and contractors and the heirs, personal representatives, successors, and assigns of each of them, from and against damages, liabilities, with this Easement or the Property, including, but not limited to, any injury to or the death of any person, or physical damage to any property, resulting from any act, omission, condition, or other matter related to or occurring on or about the Property, except to the extent such damage, liability, claim, or expense is the result of the negligence, gross negligence, or intentional misconduct of LAND TRUST.
(b) Indemnity. LAND TRUST shall hold harmless, indemnify, and defend CITY, its elected and appointed officials, trustees, officers, members, employees, agents, and contractors and the heirs, personal representatives, successors, and assigns of each of them, from and against all damages, liabilities, claims,
fees, arising from or in any way connected with this Easement or the Property attributable to the acts of LAND TRUST, including but not limited to any injury to or the death of any person, or physical damage to any property, resulting from any act occurring on or about the Property

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attributable to the acts of LAND TRUST, except to the extent such damage, liability, claim, or expense is the result of the negligence, gross negligence, or intentional misconduct of CITY.

15. ASSIGNMENT.
(a) LAND TRUST may assign its interest in this Easement only to (1) 170(h) of the Code, as amended, or any successor
provision, that (2) is authorized to acquire and hold conservation easements under California law; (3) has similar purposes to preserve open space; and (4) has the commitment and the resources to assume, and agrees to assume, the responsibilities imposed on LAND TRUST by this Easement. An organization or entity that meets all of the conditions (1) through (i4) of the preceding sentence is hereinafter referred to as a LAND TRUST shall consult with CITY regarding any proposed Qualified Substitute Entity; shall attempt in good faith to select a Qualified Substitute Entity that holds other conservation easements of a similar nature as this Easement and has continuously met the requirements of items (1) through (4) of this Section 15(a) during at least the ten (10)-year period prior to the date of such assignment; and shall provide, in writing and with reasonable specificity, information identifying the proposed Qualified compliance with items (1) through (4) of this Section 15(a), the length of time such proposed Qualified Substitute Entity or Qualified Substitute Entities have met such qualifications, and the number and type of other conservation easements held by such proposed Qualified Substitute Entity(ies). CITY shall have the right to propose an alternate Qualified Substitute Entity(ies) to LAND TRUST, and LAND TRUST include
the event LAND TRUST provides more than one proposed Qualified Substitute Entity that meets all of the requirements of items (1) through (4) of this Section 15(a), CITY shall have the right to choose the Qualified Substitute Entity. As a condition of such transfer, LAND TRUST shall require that the Easement shall continue to be held and managed by the assignee in a manner consistent with the Purpose intended to be advanced as set forth in this instrument, and in strict accordance with this instrument. The assignee and its successors and assigns shall have the same right of assignment, subject to compliance with the provisions of this Section 15(a). (b) In the event that LAND TRUST ceases to qualify to hold conservation easements under California Civil Code section 815 et seq. or ceases to operate or dissolves, then title to this Easement shall be transferred to a Qualified Substitute Entity designated by LAND TRUST, determined in consultation with CITY.
(c) Any deed or other instrument of conveyance whereby this Easement is being assigned shall be recorded in the Official Records of Santa Barbara County, California.

16. SUBSEQUENT TRANSFERS. CITY agrees to incorporate the terms of this Easement by reference in any deed or other legal instrument that divests itself of any interest in all or a portion of the Property, including, without limitation, any leasehold interest, and to provide written notice to LAND TRUST prior to any such divestiture. The failure of CITY to perform any act required by this Section 16 shall not affect the validity of such transfer nor shall it affect the validity of this Easement or limit its enforceability in any way.

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17. EXTINGUISHMENT. If circumstances arise in the future which render the Purpose of this Easement impossible to accomplish, this Easement can only be terminated or extinguished, whether in whole or in part, by judicial proceedings in a court of competent jurisdiction. The amount of the compensation to which LAND TRUST shall be entitled from any sale, exchange, or involuntary conversion of all or any portion of the Property after such termination or extinguishment, as determined by the court, shall be the stipulated fair market value of the Easement, or proportionate part thereof, as determined by a qualified appraiser mutually agreed upon by LAND TRUST and CITY or a court-appointed appraiser if the Parties cannot reach mutual agreement. The proceeds received by CITY and LAND TRUST shall be restricted to uses that are consistent with the preservation of natural, open space, scenic and wildlife habitat, or for the benefit of the public. For LAND TRUST, such uses must be within the Carpinteria Valley; for CITY, such uses must be within the City of Carpinteria.

18. CONDEMNATION. If CITY or LAND TRUST is notified that all or a portion of the Property may be acquired for public use by eminent domain, the Party receiving such notice shall notify the other Party of the potential acquisition no later than fifteen (15) days after first receiving such notice. Prior to the inspection of the Property by an appraiser pursuant to Section 7267.1 of the Government Code or any other provision of law, CITY shall notify LAND TRUST that it or its designated representative may accompany the appraiser during his or her inspection. Within seven (7) days of receiving any notice of the hearing on the resolution of necessity pursuant to Section 1245.235 of the Code of Civil Procedure, CITY shall provide LAND TRUST a copy of the notice of the hearing. Whenever all or part of the Property is taken in exercise of eminent domain or in-lieu purchase by public, corporate, or other authority so as to abrogate the restrictions imposed by this Easement, CITY and/or LAND TRUST may commence appropriate actions to recover the full value of the Property (or portion thereof) taken and all incidental or direct damages resulting from such taking. LAND TRUST S share of the award shall be determined by the ratio the value of the Easement bears to the value of the Property unencumbered by the Easement, as determined by a qualified appraiser mutually agreed upon by LAND TRUST and CITY, or a courtappointed appraiser if the Parties cannot reach mutual agreement. The proceeds received by CITY and LAND TRUST shall be restricted to uses that are consistent with the preservation of natural, open space, scenic, and wildlife habitat, or for the benefit of the public. For LAND TRUST, such uses must be within the Carpinteria Valley; for CITY, such uses must be within the City of Carpinteria. All expenses reasonably incurred by CITY and LAND TRUST in connection with the taking or in-lieu purchase shall be paid out of the Partie shall obtain LAND prior written approval, which shall not be unreasonably withheld, prior to agreeing to an in-lieu purchase
condemning authority.

19. EXISTING ENCUMBRANCES; SUBORDINATION.
(a) Existing Encumbrances. The interests held by CITY and LAND TRUST under this Easement are conveyed and reserved subject to all pre-existing encumbrances of record. (b) Subordination. If at the time of conveyance of this Easement, the Property is subject to any mortgage or deed of trust encumbering the Property, CITY and LAND TRUST shall cooperate in obtaining from the holder of any such mortgage or deed of trust an agreement to

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subordinate its rights in the Property to this Easement to the extent necessary for LAND TRUST to enforce the Purpose of this Easement in perpetuity and to prevent any modification or extinguishment of this Easement by the exercise of any rights of the mortgage or deed of trust holder.

20. NOTICES. Any notice, demand, request, consent, approval, or communication that either Party desires or is required to give to the other shall be in writing and either served personally or sent by United States certified mail, return receipt requested, or by another common method or service where receipt is confirmed, addressed as follows or such other address as either Party from time to time shall designate by written notice to the other.

To CITY: City of Carpinteria
Attn: City Manager
5775 Carpinteria Avenue
Carpinteria, CA 93013
Telephone: (805) 684-5405
To LAND TRUST: The Land Trust for Santa Barbara County
Attn: Executive Director
Post Office Box 91830
Santa Barbara, CA 93190-1830
Telephone: (805) 966-4520
[email protected]

21. GENERAL PROVISIONS.
(a) Controlling Law. The interpretation and performance of this Easement shall be governed by the laws of the State of California.
(b) Liberal Construction. Any general rule of construction to the contrary notwithstanding, this Easement shall be liberally construed to effect the Purpose of this Easement. (c) No Agency. The Parties do not intend to create a partnership, principal/agent, master/servant, or joint venture relationship, and nothing in this Easement shall be construed as creating such a relationship between the Parties.
(d) Entire Agreement. This instrument sets forth the entire agreement of the Parties with respect to the Easement and supersedes all prior discussions, negotiations, understandings, or agreements relating to the Easement, all of which are merged herein. This Easement may be altered, amended, or modified only by an instrument in writing, executed by the Parties to this Easement, and by no other means, all pursuant to Section 11 above. Each Party waives its right to claim, contest, or assert that this Easement was modified, canceled, superseded, or changed by any oral agreement, course of conduct, waiver, or estoppel.

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(e) Further Assurances and Approvals. The Parties each agree to cooperate with one another, to use their reasonable best efforts, to act in good faith, and to promptly perform such acts and to execute such documents or instruments as are reasonably necessary and proper to perform under this Easement. Except where stated herein to be sole and absolute, any approvals or actions required of either Party under this Agreement shall not be unreasonably withheld, conditioned, or delayed.
(f) No Forfeiture. Nothing contained herein will result in a forfeiture or reversion of CITY S title in any respect.
(g) Successors in Interest. The covenants, terms, conditions, and restrictions of this Easement shall be binding upon, and inure to the benefit of, the Parties hereto and their respective beneficiaries, personal representatives, heirs, successors, and assigns and shall continue as a servitude running in perpetuity with the Property.
(h) Severability and Partial Invalidity. If any term or provisions of this Easement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Easement or the application of such term or provision to persons or circumstances other than those to which it is held invalid or unenforceable shall not be affected thereby, and each term and provision of this Easement shall be valid and be enforceable to the fullest extent permitted by law.
(i) Headings. The headings used in this Easement are for convenience and reference purposes only and are not to be used to interpret the substantive meaning of the provisions to which they relate.
(j) Authority. Each individual executing this Easement on behalf of CITY and LAND TRUST represents and warrants that he or she is duly authorized to execute and deliver this Easement on behalf of said entity.
(k) Number, Gender. In this Easement, the singular number shall include the plural and the plural the singular unless the context requires to the contrary, and reference to the masculine, feminine, or neuter gender shall include the other genders as the context requires. (l) Exhibits. All exhibits and appendices referred to in this Easement are incorporated into this Easement by such references whether or not they are actually attached. References to this Easement include all such exhibits and appendices incorporated by reference. The exhibits to this Easement are as follows:

Exhibit A: Legal Description of the Property
Exhibit B: Map of the Property
Exhibit C: Acknowledgement of Baseline Report
Exhibit D: Map Depicting Parking Area(s)
[Signatures to follow on next page.]

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IN WITNESS WHEREOF, CITY has executed this Easement and LAND TRUST has accepted this Easement as of the date first written above. This Easement shall become effective as of the date of recordation.

CITY:

THE CITY OF CARPINTERIA,
a California municipal corporation
By:_________________________________
Natalia Alarcon, Mayor
ATTEST:

Brian C. Barrett, City Clerk
LAND TRUST:

THE LAND TRUST FOR SANTA BARBARA COUNTY,
a California nonprofit public benefit corporation
By:_________________________________
___________, President
By: ______________________________
____________, Secretary

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ACKNOWLEDGMENT

STATE OF CALIFORNIA )
) ss.

COUNTY OF ________________ )
On ________________, 20__, before me, ______________________________, a Notary Public in and for said State, 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.

Signature ____________________________________ (Seal)

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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ACKNOWLEDGMENT

STATE OF CALIFORNIA )
) ss.

COUNTY OF ________________ )
On ________________, 20__, before me, ______________________________, a Notary Public in and for said State, 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.

Signature ____________________________________ (Seal)

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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ACKNOWLEDGMENT

STATE OF CALIFORNIA )
) ss.

COUNTY OF ________________ )
On ________________, 20__, before me, ______________________________, a Notary Public in and for said State, 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.

Signature ____________________________________ (Seal)

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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ACKNOWLEDGMENT

STATE OF CALIFORNIA )
) ss.

COUNTY OF ________________ )
On ________________, 20__, before me, ______________________________, a Notary Public in and for said State, 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.

Signature ____________________________________ (Seal)

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 THE PROPERTY
Real property in the City of Carpinteria, County of Santa Barbara, State of California, described as follows:

That portion of RANCHO EL RINCON in the County of Santa Barbara, State of California, described as follows:

Beginning at a point on the Westerly boundary of the land conveyed to Alyce Brooks by the deed recorded August 10, 1948 as Instrument No. 11163 in Book 799, Page 105 of Official Records in the office of the County Recorder of said county and shown on the map filed in Book 30, Page 166 of record of surveys in the office of said county Recorder, at the most Northerly corner of the land described in parcel Two in the deed to the State of California recorded October 31, 1968 as Instrument No. 33906 in Book 2250, Page 689 of said Official Records, being Northerly along said Westerly line 69.84 feet from the Northeasterly line of the S.P. railroad right of way shown on said map; thence Northerly along said Westerly line 310 feet more or less, to the intersection with the Southwesterly boundary line of the land described in the deed to the State of California recorded February 8, 1967 as Instrument No. 3460 in Book 2180, Page 772 of said Official Records; thence Southeasterly along said Southwesterly line, 13.08 feet to an angle point, 148.70 feet to an angle point, 103.36 feet to an angle point and 8.07 feet to the Northwesterly corner of the land described in Parcel One in the first mentioned deed to the State of California; thence Southerly along the Westerly boundary line of said Parcel One, 63.09 feet to an angle point and Southeasterly along the Southwesterly boundary line of said Parcel One,

60.53 feet to an angle point on the general Southwesterly boundary line of the land described in Parcel One in the deed to the State of California recorded September 22, 1966 as Instrument No. 30708 in Book 2166, Page 573 of said Official Records; thence Easterly and Southeasterly along said general Southwesterly line; 2.16 feet to an angle point, 102.8 feet to an angle point, 60.58 feet to an angle point and 183.87 feet to the intersection with the Northwesterly boundary line of the land described in the deed to the State of California recorded August 26, 1966 as Instrument No. 27836 in Book 2163, Page 785 of said Official Records; thence Southwesterly along said Northwesterly line 44.92 feet to the most Easterly corner of the land described in parcel Two of said deed to the State of California recorded in Book 2166, Page 573 of Official Records; thence Northwesterly along the Northeasterly boundary line of said last mentioned Parcel Two, to and along the Northeasterly line of the above mentioned Parcel Two in the deed recorded in Book 2250, Page 689 of said Official Records, 453 feet, more or less, to the Point of Beginning.

EXCEPTING an undivided 5% of all oil, gas and other minerals in, on or under the surface of said premises as reserved by T. H. Canfield and Opal A. Canfield in deed to James F. Slaybaugh and Beulah Pearl Slaybaugh, recorded in Book 798, Page 162 of Official Records, of said county, and filed on August 10, 1948 as Torrens Instrument No. 2414, in the office of the registrar of land titles of said county.

ALSO EXCEPTING THEREFROM an undivided 10% of all oil, gas and other minerals in, on, or under the surface of said premises, as reserved by James F. Slaybaugh and wife, in deed to

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Alyce Brooks, recorded in Book 799, Page 105 of Official Records, records of said county, and filed on August 10, 1948 as Torrens Instrument No. 2415 in the office of the registrar of land titles.

ALSO EXCEPTING THEREFROM an undivided 30% of all oil, gas and other minerals in, on or under that portion of said land as reserved in deed from Donald D. Davis and Charlotte Davis, husband and wife, recorded November 2, 1957 as Instrument No. 24403 in Book 1487, Page 586 of Official Records of said county.

ALSO EXCEPTING THEREFROM as to the remaining, all oil, oil rights, minerals, mineral rights, natural gas, natural gas rights, and other hydrocarbons by whatsoever name known that May be within or under the parcel of land hereinabove described, together with the perpetual right of drilling, mining, exploring and operating therefor and removing the same from said land or any other land, including the right to whipstock or directionally drill and mine from lands other than those hereinabove described, oil, or gas wells, tunnels and shafts into, through or across the subsurface of the land hereinabove described, and to bottom such whipstock or directionally drilled wells, tunnels and shafts under and beneath or beyond the exterior limits thereof, and to redrill, retunnel, equip, maintain, repair, deepen and operate any such wells or mines, without, however, the right to drill, mine, explore and operate through the surface or the upper 100 feet of the subsurface of the land hereinabove described or otherwise in such manner as to endanger the safety of any highway that May be constructed on said lands, as excepted in deed from James L. Ferry, Jr., as trustee of the James L. Ferry, Jr. And Mary Ella Ferry revocable trust to Santa Barbara dinner house, a limited partnership, recorded July 24, 1981 as Instrument No. 81-30379 of Official Records.

APN 001-210-013, 001-210-016, 001-210-023

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EXHIBIT B

MAP OF THE PROPERTY
[Attached.]

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EXHIBIT C

ACKNOWLEDGMENT OF BASELINE REPORT
The undersigned, _______________________, on behalf of CITY, and ___________________, representing LAND TRUST, certify as follows:
a) Each is familiar with the condition of the Property; and b) Each does hereby acknowledge and certify that the Baseline Report, and all of its inclusions, dated ____________, 20__, prepared by _______________, ________________, of LAND TRUST, is an accurate representation of the condition of the Property as of the Effective Date of conveyance of the Easement.

Duplicate originals of the Baseline Report were signed and delivered by each of CITY and LAND TRUST, and each will receive a duplicate original of the Baseline Report at the close of escrow.

CITY:

THE CITY OF CARPINTERIA,
a California municipal corporation
By:_________________________________
Natalia Alarcon, Mayor
ATTEST:

Brian C. Barrett, City Clerk
LAND TRUST:

THE LAND TRUST FOR SANTA BARBARA COUNTY,
a California nonprofit public benefit corporation
By:_________________________________
_________, President
By: ______________________________
__________, Secretary

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EXHIBIT D

MAP DEPICTING PARKING AREA(S)
[Attached.]

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Rincon Gateway
Baseline Inventory Report
Prepared by:

The Land Trust for Santa Barbara County
September 2025

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1 Table of Contents
Appendix A. Baseline Photo Inventory ........................................................................................... 2 ...................................................................................................................... 3

1. ............................................................................................................................. 4

1.1. ................................................................................................... 4

1.2. Historical Development ................................................................................................... 5

1.3. ................................................................... 6

1.4. ................................................................... 6

2. .................................................................................................................................... 17

2.1. ........................................................................................................ 17

2.2. ......................................................................................................................... 17

2.3. ............................................................................................................................... 18

3. .............................................................................................................. 21

3.1. ............................................................................................................ 21

3.2. ................................................................................................ 22

3.3. ........................................................................................................... 22

4. .................................................................................................................... 29

4.1. ...................................................................................................................... 29

4.2. Roads and Tracks........................................................................................................... 29

4.3. .......................................................................................................................... 29

4.4. Oil Infrastructure........................................................................................................... 29

4.5. Water Infrastructure ..................................................................................................... 29

4.6. ................................................................................................. 30

4.7. ................................................................................... 30

5. ........................................................................................ 33

6. ........................................................................................... 34

7. ............................................................................. 35

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2 ................................................................................................. 23 ......................................................................................... 29 ..................................................................................................................... 8 ...................................................................................................... 9 ................................................................................................ 10 ....................................................................................................... 11 ....................................................................................................... 12 ....................................................................................................... 13 ....................................................................................................... 14 ....................................................................................................... 15 ....................................................................................................... 16 ......................................................................................................... 19 ....................................................................................................................... 20 ................................................................................................................. 27 .................................................................................................. 28 .................................................................................................. 32 Appendix A. Baseline Photo Inventory
Appendix B.

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3 Kyle Kusa
the
the - California,
ature Conservancy in New York as a

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4 1.

1.1. the content in this report.
-210-013,
-016, and -
referred to as the “Land Trust”). The Property is located in the City of Carpinteria, in the southeastern
Carpinteria Avenue, approximately 1.5 miles east of Carpinteria City Hall.

I - Carpinteria—
, , and the
I purchased in 1998 for $4,500,000 and transferred to the City of Carpinteria in 2000.

I intent was for the Land Trust to e property
and transfer it The property was
6,000,000 in 2016 and transferred to the - Carpinteria. However, the work wasn’t complete, and the next phase of the Property.

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5 and step. er.
, intended to develop the
area into a . Land Trus
to commission an appraisal
e appraised price, and retained ownership. In 2024, the donor that funded for s
th
protected a
This r , scenic, and cultural resources of the
Property. trails,
infrastructure, are also documented. This report contains 43 photos A
included as Appendix B.

1.2. Historical Development
existed in a undeveloped state. Aerial
-and-mortar
known as “The Thunderbowl” appears

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6 west of the Property
appears.

The Thunderbowl appears to have fallen out of use by the early 1960s, and a series of informal trails
were completed by the late 1970s. - present, there is
Property . Informal paths appear and disappear, and coastal scrub habitat has

1.3. al and . Commercial Carpinteria.
forms that include
. In 2021, developers who
had a conceptual review , , and Architectural Review
Board to round - and associated improvements. This proposal was eventually abandoned and the Property remained undeveloped.

1.4. be The Land
Trust prepared a
the City of Carpinteria 2020. That plan will be expanded to include the Property and will be

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7

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8 Figure 1. Vicinity Map

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9 Figure 2. Conserved Areas Map

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10 Figure 3.

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11 Figure 4. 1938 Aerial Imagery

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12 Figure 5. 1947 Aerial Imagery

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13 Figure 6. 1953 Aerial Imagery

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14 Figure 7. 1976 Aerial Imagery

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15 Figure 8. 1984 Aerial Imagery

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16 Figure 9. 2012 Aerial Imagery

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17 2.

2.1. percent . -
).

The Property is immediately bounded to the north by Carpinteria Avenue, and to the east by ich include a
1 of all referenced areas.
inlet and is conveyed into the City of Ca
Carpinteria Avenue.

2.2. –westhere the
Holocene.

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18 –west2022))

2.3. on the Property was
and mapped i . The soil type XA
Xerorthents ).
n. In the
case of the Property, Xerorthents cut and
1 between 1969 and 1971. It is
primarily comprised of .

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19 Figure 10. Topographic Map

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20 Figure 11. Soil Map

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21 3.

3.1. Between 2024-2025, several were made to the Property On 10th, 2025, author of this report, Kyle Kusa, went to the Property to document s from that visit are included in Appendix A. a botanical th, 2025 to
prepare a
Appendix B). Padre Associates, Inc. visited the Property on December 23, 2024 to prepare a Phase 1 . - -scale -
).
across the rest of the world).
maps were made with
species maps were
, and habitat
CWHR) dataset clipped
to the Property’s boundary.
to 1938 was inspected for context on land
experienced on- . es, habitats, and species that are present or likely to occur.

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22 3.2.
101. Habitat
onsite is a mosaic of Coastal crub that primarily clusters around the Property’s boundary. The comprised of
cobbles Habitat types were , 12. Plants onsite were
surveyed to determine the
Coastal Scrub: There is approximately 1.08-acres of coastal scrub on the Property. This habitat is - -woody 1972). as this habitat type can be found from
. On the
Property, the most common species include Atriple Baccharis pilularis Artemisia californica
berry), californica
, black
Carpobrotus sp.

Hesperocyparis sp.).

Urban: There is approximately 1.4-acres of urban habitat on the Property. On site, this habitat is composed of from . 3.3.
1 provides a complete list of returns from a
). As the list covers the

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23 Table 1. CNDDB
Scientific Name Common Name Federal Status
State
Status
CDFW
Status
Reptiles/Amphibians
Anniella spp.

California legless
lizard
None None SSC
Diadophis punctatus modestus
San Bernardino
ringneck snake
None None -
Salvadora hexalepis virgultea
coast patch-nosed
snake
None None SSC
Actinemys pallida
southwestern pond
turtle
Proposed
Threatened
None SSC
Thamnophis hammondii
two-striped
gartersnake
None None SSC
Aspidoscelis tigris stejnegeri coastal whiptail None None SSC Rana draytonii
California redlegged frog
Threatened None SSC
Taricha torosa Coast Range newt None None SSC
Birds
Accipiter cooperii Coopers hawk None None WL
Accipiter striatus
sharp-shinned
hawk
None None WL
Buteo swainsoni Swainsons hawk None Threatened - Circus hudsonius northern harrier None None SSC Haliaeetus leucocephalus bald eagle Delisted Endangered FP Chaetura vauxi Vauxs swift None None SSC
Cypseloides niger black swift None None SSC
Ardea herodias great blue heron None None -

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24 Falco columbarius merlin None None WL
Falco mexicanus prairie falcon None None WL
Falco peregrinus anatum
American
peregrine falcon
Delisted Delisted -
Gavia immer common loon None None SSC
Icteria virens
yellow-breasted
chat
None None SSC
Lanius ludovicianus loggerhead shrike None None SSC
Larus californicus California gull None None WL
Thalasseus elegans elegant tern None None WL
Setophaga petechia yellow warbler None None SSC
Aimophila ruficeps canescens
southern California
rufous-crowned
sparrow
None None WL
Pelecanus occidentalis
californicus
California brown
pelican
Delisted Delisted -
Nannopterum auritum
double-crested
cormorant
None None WL
Athene cunicularia burrowing owl None
Candidate
Endangered
SSC
Strix occidentalis occidentalis
California Spotted
Owl
Proposed
Endangered;
Proposed
Threatened
None SSC
Fishes
Eucyclogobius newberryi tidewater goby Endangered None SSC Oncorhynchus mykiss irideus
pop. 10
steelhead - southern California
DPS
Endangered Endangered -
Insects

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25 Bombus crotchii
Crotchs bumble
bee
None
Candidate
Endangered
- Danaus plexippus plexippus pop.
1 monarch - California
overwintering
population
Proposed
Threatened
None -
Mammals
Taxidea taxus American badger None None SSC
Plants
Sanicula hoffmannii Hoffmanns sanicle None None - Baccharis plummerae ssp. plummerae
Plummers
baccharis
None None -
Streptanthus campestris
southern
jewelflower
None None -
Lonicera subspicata var.
subspicata
Santa Barbara
honeysuckle
None None -
Atriplex coulteri Coulters saltbush None None - Quercus dumosa Nuttalls scrub oak None None - Ribes amarum var. hoffmannii Hoffmanns bitter
gooseberry
None None -
Juglans californica
southern California
black walnut
None None -
Lepechinia fragrans
fragrant pitcher
sage
None None -
Monardella hypoleuca ssp.
hypoleuca
white-veined
monardella
None None -
Calochortus clavatus var.
clavatus
club-haired
mariposa-lily
None None -
Calochortus fimbriatus
late-flowered
mariposa-lily
None None -
Fritillaria ojaiensis Ojai fritillary None None -

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26 Lilium humboldtii ssp. ocellatum
ocellated
humboldt lily
None None -
Aphyllon epigalium ssp.
notocalifornicum
Southern
California galium
broomrape
None None -
Muhlenbergia utilis aparejo grass None None - Rhinotropis cornuta var. fishiae Fishs milkwort None None - Delphinium umbraculorum umbrella larkspur None None -
Horkelia cuneata var. puberula mesa horkelia None None - Nolina cismontana chaparral nolina None None - Heuchera caespitosa urn-flowered
alumroot
None None -

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27 Figure 12. Habitat Map

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28 Figure 13.

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29 4.

Table 2. I
Name Baseline
Photopoint
Northeast Boundary Fence 14, 15
Concrete Barriers (3) 17, 19
Wind indicator (4) 6, 8, 13
Drainage Inlet 23
Chevron Pipe Marker (2) 12, 14
Water Valve 18

4.1. There are no e structures on the Property. Human-made features Property are enumerated in Table 2 . Photos of each feature can be viewed in Appendix A.

4.2. Roads and Tracks
these connect

4.3. There is one chain-link fence that runs parallel to the Property’s northern boundary with 101 for approximately 250-feet.

4.4. Oil Infrastructure
-feet east, southeast of the Property. It is an
abandoned dry well ) that was owned by the Carpinteria Oil and Gas Company.

4.5. Water Infrastructure
There is no developed
is located at the end of Carpinteria Avenue,
on the border between parcels 001-210-023 and 001-210-013

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30 located in the northwest corner of the property. Water drains into this inlet, before eventually s s of the water valve and
inlet.

4.6. Preliminary Title Report , companies have been recorded American Title.

Inc. That easement is located in the northern part of the eastern most 001-210- 013) and follows Carpinteria Avenue. Photos of the pipe markers are documented in Appendix A. A 15-foot wide access easement for a road, public utilities, and incidental purposes was also recorded on that same parcel between 1956-61. That road appears to have facilitated access to description of all utilities and easements associated with the Property.

4.7. have been served
severed.
taken directly prepared by -

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31 development would very likely be infeasible for economic and other reasons cited.
and PTR and water .

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32 Figure 14

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33 5.

Available
Available online
— Coastal Scrub (CSC). for 6555 Carpinteria Ave,
Carpinteria, CA 93013 (Order No. 4 009-7209716). Minerals assessment report: King Property – County.

Phase I environmental site assessment: Approximately 2.5-acre Carpinteria, Santa Barbara County, California.

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34 6.

Landowner:
-4520

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35 7. -
f the

LAND TRUST Report Preparer:

EXHIBIT 3 TO RESOLUTION NO. 6449

1 36699052.2
Amended and Restated
Rincon Bluffs Preserve Endowment Agreement
THIS AMENDED AND RESTATED RINCON BLUFFS PRESERVE ENDOWMENT AGREEMENT (this "Agreement") is entered into by and between City of Carpinteria, a California municipal corporation ("City"), and The Land Trust for Santa Barbara County, a California nonprofit public benefit corporation ("Land Trust"). The City and the Land Trust shall collectively be referred to as the "Parties" and individually as a "Party .

Introduction
A. The Rincon Bluffs Preserve consists of approximately 21.65 acres of coastal blufftop open space property located within the boundaries of the City of Carpinteria, County of Santa Barbara, and State of California, identified as Assessor's Parcel Numbers 001-210-020 and 001-210- 024, and is more particularly described in Exhibit A-1, attached hereto and incorporated herein by reference Rincon Bluffs Preserve . B. Land Trust and City, with the help of the Citizens for the Carpinteria Bluffs ("Citizens"), raised $6,000,000 to purchase the Rincon Bluffs Preserve to preserve it as open space for the benefit of the communities of Carpinteria and Santa Barbara County.

C. On June 15, 2016, the Land Trust closed escrow on the purchase of the Rincon Bluffs Preserve following the successful completion of the fundraising campaign to raise the funds needed to permanently protect and preserve the Rincon Bluffs Preserve.

D. Following negotiations, on March 27, 2020, the City purchased the Rincon Bluffs Preserve from the Land Trust for $944,750. The funds were awarded to the City from the California Coastal Conservancy ("Conservancy"), the California Natural Resources Agency ("Resources"), and the County of Santa Barbara ("County") to support the acquisition and permanent protection of the Rincon Bluffs Preserve. The City then conveyed a Deed of Conservation Easement ("Rincon Bluffs Conservation Easement") in favor of the Land Trust.

E. In addition, as part of the transfer of the Rincon Bluffs Preserve to the City, the Parties entered into the Rincon Bluffs Preserve Endowment Agreement dated ______________ (the Original Agreement ) to establish an Endowment Fund to provide funds in perpetuity to support the long term stewardship of the Rincon Bluffs Preserve.

F. On January 28, 2025, Land Trust acquired and on the Effective Date, (defined below) conveyed to City additional real property immediately adjacent to the Rincon Bluffs Preserve, commonly known as Rincon Gateway, described on the attached Exhibit A-2, attached hereto and incorporated herein by reference, and referred to as Assessor Parcel Numbers 001-210-013, -016, & -023 Rincon Gateway Property On the Effective Date, City granted to Land Trust a Rincon Gateway
Conservation Easement and together with the Rincon Bluffs Conservation Easement, the Conservation Easements ). The Rincon Bluffs Preserve and the Rincon Gateway Property are Property
G. Land Trust and City, with approval from Citizens and the Carpinteria Open Space Management Advisory Board (a board that advises the City Council regarding development and use of all coastal open space and trails owned or managed by the City), desire to amend the Original Agreement to include the Rincon Gateway Property, such that the Endowment Fund will be available to be used by City for the operation, maintenance, and enhancement of both the Rincon Bluffs Property and the Rincon Gateway Property.

H. This Amended and Restated Endowment Agreement sets forth the terms and conditions for the management and use of the Endowment Fund for the Property.

2 36699052.2

AGREEMENT

1. Initial Establishment of Endowment Fund. The purpose of the Rincon Bluffs Preserve Endowment Fund ("Endowment Fund" or "Fund") is to provide revenue to City for the purpose of conducting maintenance and operation activities and completing environmental enhancement and capital improvement projects for the Property, consistent with the terms of the Conservation Easements which encumber the Property. The initial principal value ("Initial Principal Value") of the Endowment Fund under the Original Agreement was One Million and No/100 Dollars ($1,000,000.00). In order to preserve the purchasing power of this Fund, the "Principal Value" as such term is used in the Original Agreement and this Agreement will be equal to the Initial Principal Value adjusted annually for inflation. For purposes of adjusting for inflation, the Committee (defined below) will use the Consumer Price Index (CPI), Urban Wage Earners and Clerical Workers, Los Angeles-Long Beach-Anaheim, CA, published by the Bureau of Labor Statistics of the United States Department of Labor, or its successor.

2. Committee Oversight. The Endowment Fund will be held and managed by the Land Trust, which has organized a Carpinteria Bluffs Endowment Fund Committee ("Committee") to oversee and advise on the management, investment and disbursement of the Endowment Fund earnings and assets. The Committee will be appointed by the Board of Trustees of the Land Trust, and will be composed of the following members: two (2) members and, optionally, one (1) alternate member of the Land Trust Board of Trustees; three (3) members and, optionally, one (1) alternate member nominated by the Board of Directors of Citizens.; and one (1) non-voting member representing the City. The Committee members will be appointed for 3-year renewable terms. While the purpose of this Endowment Fund is to support the City's management of the Property, the Endowment Fund is held by the Land Trust in order to provide external oversight of the use of the funds. As such, no voting Committee member may be a current employee or appointed or elected official of the City. Alternate members of the Committee may stand in as a voting member for a member representing the same organization as the alternate is representing when that voting Committee member is absent. If Citizens ceases to exist or becomes inactive, then other organization(s) with a focus on environmental protection and/or open-space preservation (with preference for those within the Carpinteria Valley, particularly organizations involved in the preservation of the Carpinteria Bluffs) must be approved by the Land Trust Board. Once approved, the organization(s) may nominate representatives to the Committee. However, the Board of Trustees of the Land Trust shall retain the ultimate decision-making authority on the appointment or replacement of members of the Committee and may reject nominees proposed by Citizens or other organizations, if, in its sole judgment, such nominees are not qualified for appointment.

3. Committee Responsibilities. The Committee is tasked with the goal of long-term growth of the Endowment Fund assets in accordance with policies developed by the Committee. The Land Trust will manage the Fund on behalf of the Committee in accordance with such Committee policies and the Land investment policy, which policy includes compliance with the Uniform Prudent Management of Institutional Funds Act. The Land Trust, with advice from the Committee, may designate one or more professional financial advisors based upon expertise and past performance to manage the assets of the Endowment Fund. The Endowment Fund shall be managed with a focus on long-term growth of the principal to maintain the relative purchasing power of the fund in perpetuity.

The Committee shall meet at least semi-annually to review the Endowment Fund performance and annually to review and recommend to Land Trust disbursement of funds to the City for the benefit of the Property. The Committee shall prepare and deliver a report to the City annually providing the balance of the Endowment Fund and showing all income into and disbursements from the Endowment Fund following generally accepted accounting principles (to the extent applicable).

4. Annual Distributions. The Committee will evaluate proposed budgets for the Property and approve distributions to the City on an annual basis ("Annual Distribution"). The City will be eligible to receive up to four percent (4%) of the Average Endowment Fund Balance (as defined below) annually; provided that, at the sole discretion of the Land Trust, Land Trust may permit distributions greater than

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four percent if the Endowment Fund balance exceeds the Principal Value after the annual distribution to the City.

The "Average Endowment Fund Balance" will be calculated by averaging the immediately preceding twelve (12) calendar quarters' Endowment Fund balance. The Average Endowment Fund Balance will then be multiplied by 0.04 to calculate the Annual Distribution. Should Endowment Fund earnings be less than four percent, the balance may decline, but in no event shall the Endowment Fund balance be allowed to fall below the Principal Value. If an Annual Distribution of four percent would cause the Endowment Fund balance to fall below the Principal Value, Land Trust shall limit the Annual Distribution for such year to such amount that will retain the Principal Value. Disbursements from the Fund are strictly limited to reasonable fund management expenses and disbursements to the City.

If the earnings from the Endowment Fund are insufficient to provide for the management, maintenance and preservation of the Property, City shall use such available earnings to address the most critical management, maintenance, and preservation needs of the Property, as determined by Land Trust in consultation with the Committee.

5. City Request for Funds. Annual Distributions of funds from the Endowment Fund to the City shall occur only after the City submits a letter to the Land Trust and the Committee, on or before January 15 of each year, specifying, at a minimum, the following:
(a) Routine maintenance performed on the Property during the prior year, including any significant modification of the standard practices due to changes in circumstances, environmental conditions, or maintenance techniques;
(b) Actual costs associated with maintenance performed on Property during the prior year; (c) Proposed maintenance to be performed on the Property during the coming year, including any significant modification of the standard practices due to changes in circumstances, environmental conditions, or maintenance techniques;
(d) Amount of funds, if any, necessary for City to comply with federal, state, or local laws concerning public health and safety requirements;
(e) Any extraordinary maintenance or planned environmental enhancements to be performed that are outside the scope of the standard maintenance practices; and (f) All anticipated costs associated with proposed work and other necessary operational activities, such as public safety patrols of Property by City law and code enforcement personnel.

Provided such letter from the City is timely submitted to Land Trust and the Committee, Land Trust will deliver to City on or before February 15 of each year the Annual Distribution amount from the Endowment Fund.

6. Conservation Easement Compliance. Prior to making its Annual Distribution recommendation, the Committee shall be advised of the status of any violations and/or enforcement actions taken by the Land Trust under the Conservation Easement(s) and shall have the opportunity to review all available Land Trust Conservation Easements monitoring reports. Land Trust may withhold all or a portion of the Annual Distribution if the following circumstances exist:
(a) Land Trust determines that a significant violation of the terms, conditions, covenants, or restrictions contained in the Conservation Easements (or either of them) has occurred or is threatened by actions of City or anyone acting under its authority;
(b) Land Trust has given written notice to City of such violation that includes the specific section(s) of the applicable Conservation Easement(s) alleged to have been violated and has recommended to City a suggested corrective action to reasonably cure the violation; and

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(c) Land Trust determines that City has not cured or initiated reasonable actions to cure the violation.

Notwithstanding the foregoing, Land Trust shall not withhold funds reasonably necessary for City to comply with federal, state, or local laws concerning public health and safety requirements, provided that the disbursement of those funds is otherwise permitted under the terms of this Agreement.

7. Emergency Disbursement Requests. The Committee will recognize that emergency situations, including impacts from natural disasters, may arise that require the City to deviate from its standard maintenance practices and perform work immediately to protect the Property or public health and safety.

The City shall notify the Land Trust and the Committee, in writing and preferably in advance, when any significant emergency work is required. Under such circumstances, the City may apply at any time for a special disbursement from the Endowment Fund, in addition to the Annual Distribution, to meet such nonroutine or documented emergency maintenance needs. Such special disbursement shall be made at the sole discretion of the Land Trust, in consultation with the Committee, and may be charged against the funds available for disbursement in the following year(s).

8. Improvement Fund. The Parties agreed under the Original Agreement that completion of certain capital improvements ("Initial Improvements") are necessary and desirable in support of safe public use and enjoyment of the Rincon Bluffs Preserve. Exhibit B to this Agreement, attached hereto and incorporated herein by reference, describes certain Initial Improvements, all to be built in accordance with the terms of the Rincon Bluffs Conservation Easement. As of the date of the Original Agreement, Land Trust raised more than Seven Hundred Fifty Thousand Dollars ($750,000), in addition to the Endowment Fund, to construct and install these Initial Improvements (the "Improvement Fund"). The Parties recognize that the Improvement Fund is insufficient to construct all the Initial Improvements, but that significant opportunity exists to apply for and receive grants to achieve full funding for the Initial Improvements. The Parties agree to collaborate and to leverage the limited Improvement Fund against grants to install the Initial Improvements payable with available funding no later than four (4) years from the date that City takes ownership of the Rincon Gateway Property. If all of the Initial Improvements have not been completed to the satisfaction of Land Trust within four (4) years, the remaining unobligated balance of the Improvement Fund may be used at the discretion of Land Trust for the benefit of the Property. If all of the Initial Improvements have been completed to the satisfaction of Land Trust, then any remaining unobligated funds in the Improvement Fund will be applied to the Endowment Fund and will be treated as additional principal for the purpose of defining Initial Principal Value and calculating Average Endowment Fund Balance.

9. Notices. Any notice, demand, request, consent, approval, or communication that either Party desires or is required to give to the other shall be in writing and either served personally or sent by United States certified mail, return receipt requested, or by another common method or service where receipt is confirmed (including by email, with read receipt), addressed as follows or such other address as either Party from time to time shall designate by written notice to the other.

To CITY: City of Carpinteria Attn: City Manager
5775 Carpinteria Avenue
Carpinteria, CA 93013
Telephone: (805) 684-5405
[email protected]
To LAND TRUST: The Land Trust for Santa Barbara County
Attn: Executive Director
Post Office Box 91830
Santa Barbara, CA 93190-1830
Telephone: (805) 966-4520
[email protected]
TO COMMITTEE: Carpinteria Bluffs Endowment Fund Committee

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Attn: Chair
c/o Land Trust for Santa Barbara County
Post Office Box 91830
Santa Barbara, CA 93190-1830
Telephone: (805) 966-4520

10. Effective Date. This Agreement shall become effective on the later of (a) the date the deed from the Land Trust to the City for the Rincon Gateway Property is recorded or (b) the Rincon Gateway Conservation Easement is recorded Effective Date . On the Effective Date, the Original Agreement is superseded in its entirety by this Agreement.

11. Entire Agreement. This document sets forth the entire agreement of the Parties with respect to this Agreement and supersedes all prior discussions, negotiations, understandings, or agreements relating to this Endowment Fund (but expressly excluding the Conservation Easements), all of which are merged herein. This Agreement may be altered, amended, or modified only by instrument in writing, executed by the Parties to this Agreement. In the event of a conflict between the terms of either Conservation Easement and this Agreement, the terms of the applicable Conservation Easement shall prevail.

12. Authority. Each individual executing this Agreement on behalf of the City and the Land Trust represents and warrants that he, she, or they is duly authorized to execute and deliver this Agreement on behalf of such entity.

13. Waiver. Failure of any Party at any time to require performance of any provision of this Agreement shall not limit that Party's right to enforce the provision. Waiver of any breach of a provision shall not be a waiver of any succeeding breach of the provision or a waiver of the provision itself or of any other provision.

14. Dispute Resolution. In the event of a dispute, claim, or controversy regarding any aspect of this Agreement, the Parties agree to first attempt to resolve the matter through non-binding mediation before initiating arbitration or litigation. A Party shall notify the other Party of the issue in writing and suggest the name of a mediator or mediators experienced in land use that are listed by the American Arbitration Association, the California State Board of Mediation and Conciliation, or other agreed-upon service. If the other side does not accept the suggested mediator(s), the disapproving Party shall have ten (10) days to make a counter-suggestion. In the event the Parties cannot agree on a mediator(s), each Party shall select one (1) mediator, who, together, shall select a mediator. Neither Party shall be obligated to continue the mediation process beyond a period of ninety (90) days from the date of the selection or appointment of a mediator or if the mediator concludes that there is no reasonable likelihood that continuing mediation will result in mutually agreeable resolution of the dispute. Any applicable statutes of limitation shall be tolled during the mediation process. In the event the dispute is not resolved by mediation, the Parties may then proceed with such other means of dispute resolution as they so choose.

The costs of mediation shall be borne equally by the Parties, but each Party shall bear its own costs, including attorneys' fees, individually. All communications, documents, and information disclosed during mediation shall be confidential and inadmissible in any subsequent proceeding, except as required by law.

15. Attorneys' Fees. If either Party brings any legal action to enforce any provision of this Agreement, the prevailing Party shall be entitled to recover from the other Party costs, including reasonable attorneys' fees, and court costs in such amounts as shall be allowed by the court.

16. Construction. Headings at the beginning of each article, section, and subsection are solely for the convenience of the Parties and are not a part of and shall not be used to interpret this Agreement. The singular form shall include plural and vice versa. This Agreement shall not be construed as if it had been prepared by one of the Parties, but rather as if all Parties have prepared it. Unless otherwise indicated, all references to articles or sections are to this Agreement.

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17. Counterparts. This Agreement may be executed simultaneously or in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement.

18. Successors. This Agreement shall be binding on and inure to the benefit of the Parties, and their respective heirs, personal representatives, successors, and assigns.

19. Further Assurances. Whenever reasonably requested to do so by another Party, each Party shall execute, acknowledge, and deliver any further instrument and/or document as may be necessary, expedient, or proper under the terms and conditions of this Agreement, in order to carry out the intent and purpose of this Agreement.
[Signatures to appear on next page.]

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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date last signed below.

Date: _______________
CITY
CITY OF CARPINTERIA, a California municipal
corporation
By: ________________________
Name: ______________________
Its: _________________________
Date: _______________

LAND TRUST

THE LAND TRUST FOR SANTA BARBARA
COUNTY, a California nonprofit public benefit
corporation
By: ________________________
Name: ______________________
Its: _________________________

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EXHIBIT A-1

LEGAL DESCRIPTION OF THE RINCON BLUFFS PRESERVE
The land referred to herein below is situated in the City of Carpinteria, County of Santa Barbara, State of California, and is described as follows:

PARCEL ONE:

Beginning at the point of intersection of the Southerly line of the tract of land described in the Deed to State of California, recorded December 29,1950 as Instrument No. 18885 in Book 960, Page 413 of Official Records of said County, with the Westerly line of the tract of land described in Deed to Alyce Brooks, registered August 10, 1948 as Document No. 2415 in the Office of the Registrar of Titles and a copy thereof recorded August 10, 1948 as Document No. 11163, in Book 799, Page 105 of Official Records, Records of said County, said point of intersection being shown in Map of Survey filed in Book 30, Page 166 of Record of Surveys, in the Office of the County Recorder of said County; thence Southerly along the said Westerly line of said Brook tract to the Southwest corner thereof and a point in the Northerly line of the right of way of the Southerly Pacific Railroad Company thence Northwesterly along said Northerly line of said Railroad right of way following the courses thereof, to the Southeast corner of the tract of land described in the Deed to Andor Weiss, et ux., and recorded April 29,1957, as Instrument No. 8167, in Book 1443,

said Weiss tract of land, to its intersection with said Southerly line of the tract of land described in the Deed to State of California, hereinbefore referred to; thence Easterly along said land mentioned line, following the courses thereof to the point of beginning.

EXCEPTING THEREFROM that portion thereof described as Parcels 3A and 3B in the Final Order of Condemnation, Superior Court Case No. 79251, recorded April 5, 1968 as Instrument No. 11232, in Book 2227, Page 862 of Official Records, Records of said County.

ALSO EXCEPTING THEREFROM an undivided 5% of all oil, gas and other minerals in, on or under said land as reserved in Deed from T.H. Canfield and Opal A.Canfield dated July 17, 1948 and registered August 10, 1948 as Document No. 2414, in the Office of the Registrar of Titles, and recorded August 10, 1948 as Instrument No. 11162, in Book 798, Page 162 of Official Records, Records of said County.

ALSO EXCEPTING THEREFROM an undivided 50% interest of all oil, gas and other minerals in, on, or under the surface of said land, and providing that grantees shall have the full right to lease the said premises at any time for oil, gas or other mining purposes and receive the rental from such lease so long as such lease reserved sufficient royalty out of which to pay to granters the 50% of such oil or gas or other minerals herein reserved in the event of productions thereof from said premises, as reserved in the Deed from James F. Slaybaugh and Beulah Pearl Slaybaugh, recorded March 6, 1959 in Book 1603, Page 404 of Official Records.

ALSO EXCEPTING unto and in favor of granter 50% of any payment in the form of a bonus or otherwise received by grantees as and for the consideration for the execution by said grantees of any lease, assignment or transfer of any oil and mineral rights, in, on and under the surface of said land and of any rental received by grantees other than royalties provided for any such lease, assignment or transfer, as reserved in Deed last above mentioned.) All rights to use the surface and those portions of the subsurface lying above a depth of 500 feet below said surface were quitclaimed by James F. Slaybaugh and Beulah Pearl Slaybaugh, husband and wife to Burton SW. Hancock, by Quitclaim Deed recorded June 26, 1967 as Instrument No. 17410 in Book 2194, Page 1172 of Official Records.

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PARCEL TWO:

The real property in the unincorporated area of the County of Santa Barbara, State of California, described as follows:

Beginning at the Southeasterly terminus of Course (5) described in the Final Order of Condemnation recorded April 5, 1968, in Volume 2227 of Official Records, at Page 862, Records of said County;
thence (A) in a general Southeasterly direction along Courses (4), (3), (2) and (1) as described in said Final Order to a point on said Course (1) distant thereon Northerly 17.49 feet from the Southerly Terminus thereof;
thence (B) from a tangent that bears North 68° 21' 07'' West, Northwesterly along a curve to the left with a radius of 365.00 feet through an angle of07° 25' 16" for an arc length of 47.28 feet to a point of reverse curvature;
thence (C) Northwesterly along a curve to the right with a radius of 535.00 feet tough angle of 47° 45' 59" for an arc length of 446.02 feet to a point of reverse curvature; thence (D), Northwesterly along a curve to the left with a radius of 765 feet through an angle of 35° 25" 00" for an arc length of 472.88 feet thence (E) North 63° 225' 24" West 11.06 feet to the point of beginning. EXCEPTING THEREFROM an undivided 5% of all oil, gas and other minerals in, on, or under said land as reserved in Deed from T.H. Canfield and Opal A. Canfield, dated July 17, 1948 and registered August 10, 1948 as Document No. 2414, in the Office of the Registrar of Title and recorded August 10, 1948 as Instrument No. 11162, in Book 798, Page 162 of Official Records, Records of said County. ALSO EXCEPTING THEREFROM an undivided 50% interest of all oil, gas and other minerals, in, on or under the surface of said land, and providing that grantees shall have the full right to lease the said premises at any time for oil, gas or other mining purposes and receive the rental from such lease so long as such lease reserved sufficient royalty out of which to pay to grantors the 50% of such oil, gas or other minerals herein reserved in the event of production thereof from said premises, as reserved in Deed from James F. Slaybaugh and Beulah Pearl Slaybaugh, recorded March 6,1959 in Book 1603, Page 404 of Official Records.

ALSO EXCEPTING unto and in favor of grantor 50% of any payment in the form of a bonus or otherwise received by grantees as and for the consideration for the execution by said grantees of any lease, assignment or transfer of any oil and mineral rights in, on and under the surface of said land and of any rentals received by grantees other than royalties provided for by any such lease, assignment or transfer as reserved in Deed last above mentioned.

All rights to use the surface and those portions of the subsurface lying above depth of 500 feet below said surface were quitclaimed by James F. Slaybaugh and Beulah Pearl Slaybaugh, husband and wife, to Burton W. Hancock by Quitclaim Deed recorded June 26, 1967 as Instrument No. 17410 in Book 2194, Page 1172 of Official Records.

PARCEL THREE:

That portion of the Rancho El Rincon in the County of Santa Barbara, State of California, described as follows:

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Beginning at a point on the Southwesterly line of the land described in the Deed to John Pyster, dated May 29, 1870, recorded in Book "I", Page 65 of Deeds, Records of said County, distant thereon South 68° 51' East 562.60 feet from the Southwesterly corner of said land of Pyster, said point of beginning being North 21° 09' East 37.5 feet from the Northeast corner of the land described in the Deed to Donald D. Davis et ux., recorded in Book 811, Page 489 of Official Records of said County;
thence South 68° 51' East, along said line of Pyster Tract 300 feet thence South 21° 09' West 825.13 feet, more or less to the Northerly right of way line of the Southern Pacific Railroad; thence along said right of way line of said Railroad, the following four courses and distances:

North 65° 44' 45" West 73.87 feet;
North 66° 53' 30" West 100.08 feet;
North 58° 53' 20" West 100.50 feet;
North 60° 35' 40" West 27.49 feet;
thence leaving said right of way line, North 21° 09' East along the Southwesterly prolongation of the Southeasterly Line of said Davis Tract and the Northeasterly prolongation thereof, at 468.48 feet, a ½ inch survey pipe set at the Southeast corner of said land of Davis, 796.38 feet to the point of beginning.

EXCEPTING THEREFROM that portion thereof described in the Deed to the State of California, registered December 29, 1950 as Document No. 3068 in the Office of the Registrar of Titles of said County, a copy of said Deed being recorded December 29, 1950 as Instrument No. 18885, in Book 960, Page 413 of Official Records, in the Office of the County Recorder of said County.

ALSO EXCEPTING THEREFROM that portion conveyed to the State of California, by Deed recorded June 23, 1966 as Instrument No. 20534, in Book 2155, Page 1235 of Official Records. ALSO EXCEPTING THEREFROM an undivided 5% of all oil, gas and other minerals in, on or under said land as reserved by T.H. Canfield and Opal A. Canfield, in Deed dated July 17, 1948 and registered August 10, 1948 as Torrens Document No. 2414, and recorded as Instrument No. 11162, in Book 798, Page 162 of Official Records of said County. ALSO EXCEPTING THEREFROM an undivided 50% of all oil, gas and other minerals, in, on or under the surface of said land as reserved in Deed from James F. Slaybaugh et al, recorded April 29, 1957 as Instrument No. 8167, in Book 1443, Page 141 of Official Records, Records of said County. By Deed dated February 24, 1962 and recorded March 8, 1962 as Instrument No. 9023 in Book 1908, Page 576 of Official Records, James F. Slaybaugh and Beulah Pearl Slaybaugh, husband and wife quitclaimed to Emma Weiss all rights to the surface of land above described and any portions of the subsurface of lands above described and any portions of the subsurface thereof, lying above, a depth of 500 feet below said surface.

ALSO EXCEPTING THEREFROM that portion described in Final Order of condemnation Superior Court Case No. 79251, recorded June 14, 1968 as Instrument No. 18817 in Book 2235,

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EXHIBIT A-2

LEGAL DESCRIPTION OF THE RINCON GATEWAY PROPERTY
Real property in the City of Carpinteria, County of Santa Barbara, State of California, described as follows:

That portion of RANCHO EL RINCON in the County of Santa Barbara, State of California, described as follows:

Beginning at a point on the Westerly boundary of the land conveyed to Alyce Brooks by the deed recorded August 10, 1948 as Instrument No. 11163 in Book 799, Page 105 of Official Records in the office of the County Recorder of said county and shown on the map filed in Book 30, Page 166 of record of surveys in the office of said county Recorder, at the most Northerly corner of the land described in parcel Two in the deed to the State of California recorded October 31, 1968 as Instrument No. 33906 in Book 2250, Page 689 of said Official Records, being Northerly along said Westerly line 69.84 feet from the Northeasterly line of the S.P. railroad right of way shown on said map; thence Northerly along said Westerly line 310 feet more or less, to the intersection with the Southwesterly boundary line of the land described in the deed to the State of California recorded February 8, 1967 as Instrument No. 3460 in Book 2180, Page 772 of said Official Records; thence Southeasterly along said Southwesterly line, 13.08 feet to an angle point, 148.70 feet to an angle point, 103.36 feet to an angle point and 8.07 feet to the Northwesterly corner of the land described in Parcel One in the first mentioned deed to the State of California; thence Southerly along the Westerly boundary line of said Parcel One, 63.09 feet to an angle point and Southeasterly along the Southwesterly boundary line of said Parcel One, 60.53 feet to an angle point on the general Southwesterly boundary line of the land described in Parcel One in the deed to the State of California recorded September 22, 1966 as Instrument No. 30708 in Book 2166, Page 573 of said Official Records; thence Easterly and Southeasterly along said general Southwesterly line; 2.16 feet to an angle point, 102.8 feet to an angle point, 60.58 feet to an angle point and 183.87 feet to the intersection with the Northwesterly boundary line of the land described in the deed to the State of California recorded August 26, 1966 as Instrument No. 27836 in Book 2163, Page 785 of said Official Records; thence Southwesterly along said Northwesterly line 44.92 feet to the most Easterly corner of the land described in parcel Two of said deed to the State of California recorded in Book 2166, Page 573 of Official Records; thence Northwesterly along the Northeasterly boundary line of said last mentioned Parcel Two, to and along the Northeasterly line of the above mentioned Parcel Two in the deed recorded in Book 2250, Page 689 of said Official Records, 453 feet, more or less, to the Point of Beginning.

Excepting an undivided 5% of all oil, gas and other minerals in, on or under the surface of said premises as reserved by T. H. Canfield and Opal A. Canfield in deed to James F. Slaybaugh and Beulah Pearl Slaybaugh, recorded in Book 798, Page 162 of Official Records, of said county, and filed on August 10, 1948 as Torrens Instrument No. 2414, in the office of the registrar of land titles of said county.

Also excepting therefrom an undivided 10% of all oil, gas and other minerals in, on, or under the surface of said premises, as reserved by James F. Slaybaugh and wife, in deed to Alyce Brooks, recorded in Book 799, Page 105 of Official Records, records of said county, and filed on August 10, 1948 as Torrens Instrument No. 2415 in the office of the registrar of land titles.

Also excepting therefrom an undivided 30% of all oil, gas and other minerals in, on or under that portion of said land as reserved in deed from Donald D. Davis and Charlotte Davis, husband and wife, recorded November 2, 1957 as Instrument No. 24403 in Book 1487, Page 586 of Official Records of said county.

Also excepting therefrom as to the remaining, all oil, oil rights, minerals, mineral rights, natural gas, natural gas rights, and other hydrocarbons by whatsoever name known that May be within or under the parcel of land hereinabove described, together with the perpetual right of drilling, mining, exploring and operating therefor and removing the same from said land or any other land, including the right to whipstock or directionally drill and mine from lands other than those hereinabove described, oil, or gas

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wells, tunnels and shafts into, through or across the subsurface of the land hereinabove described, and o bottom such whipstock or directionally drilled wells, tunnels and shafts under and beneath or beyond the exterior limits thereof, and to redrill, retunnel, equip, maintain, repair, deepen and operate any such wells or mines, without, however, the right to drill, mine, explore and operate through the surface or the upper 100 feet of the subsurface of the land hereinabove described or otherwise in such manner as to endanger the safety of any highway that May be constructed on said lands, as excepted in deed from James L. Ferry, Jr., as trustee of the James L. Ferry, Jr. And Mary Ella Ferry revocable trust to Santa Barbara dinner house, a limited partnership, recorded July 24, 1981 as Instrument No. 81-30379 of Official Records.

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EXHIBIT B

RINCON BLUFFS PRESERVE INITIAL IMPROVEMENTS

1. Public Restroom (not to exceed 800 square feet in footprint)

2. Public Parking Lot (not to exceed 25,000 square feet)

3. Improved Trails (3,500 lineal feet of improved trail surface)

4. Information Kiosk

5. Donor Marker

ATTACHMENT B
Amended and Restated Rincon Bluffs Endowment Agreement Redline

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First Amended and Restated
Rincon Bluffs Preserve Endowment Agreement
THIS AMENDED AND RESTATED RINCON BLUFFS PRESERVE ENDOWMENT AGREEMENT (this "Agreement") is dated for reference purposes only as of ____________________, 20____, entered into by and between City of Carpinteria, a California municipal corporation ("City"), and The Land Trust for Santa Barbara County, a California nonprofit public benefit corporation ("Land Trust,"). The City and the Land Trust shall and collectively be referred to as the with City, "Parties" and individually as a "Party ).

Introduction
A. The Rincon Bluffs Preserve consists of approximately 21.65 acres of coastal blufftop open space property located within the boundaries of the City of Carpinteria, County of Santa Barbara, and State of California, identified as Assessor's Parcel Numbers are 001-210-020 and 001- 210-024, and is more particularly described in Exhibit A-1, attached hereto and incorporated herein by reference Rincon Bluffs Preserve . B. Land Trust and City, with the help of the Citizens for the Carpinteria Bluffs ("Citizens"), raised $6,000,000 to purchase the Rincon Bluffs Preserve to preserve it as open space for the benefit of the communities of Carpinteria and Santa Barbara County.

C. On June 15, 2016, the Land Trust closed escrow on the purchase of the Rincon Bluffs Preserve following the successful completion of the fundraising campaign to raise the funds needed to permanently protect and preserve the Rincon Bluffs Preserve.

D. Following negotiations, on March 27, 2020, the City purchased the Rincon Bluffs Preserve from the Land Trust for $944,750 to become a permanent open space preserve. The funds were awarded to the City from the California Coastal Conservancy ("Conservancy"), the California Natural Resources Agency ("Resources"), and the County of Santa Barbara ("County") to support the acquisition and permanent protection of the Rincon Bluffs Preserve. The City then conveyed a Deed of Conservation Easement ("Rincon Bluffs Conservation Easement") in favor of the Land Trust.. E. In addition, as part of the transfer of the Rincon Bluffs pPreserve to the City, the Parties entered into the Rincon Bluffs Preserve Endowment Agreement dated ______________ (the Original Agreement ), to establish thean Endowment Fund and associated terms to provide funds in perpetuity to support the long term stewardship of the propertyCityRincon Bluffs Preserve maintenance and operation of the Rincon Bluffs Preserve and to establish provisions for specific use and distribution of funds to City for services to the Rincon Bluffs Preserve, including planning, permitting, and installation of improvements, restoration of habitats and vegetation, maintenance of trails and other facilities, and the inspection and patrolling of the property in perpetuity. F. On January 28, 2025, Land Trust acquired and on the Effective Date, (defined below), as of the Effective Date (defined below), conveyed to City additional real property immediately adjacent to the Rincon Bluffs Preserve, commonly known as Rincon Gateway, described on the attached Exhibit A-2, attached hereto and incorporated herein by reference, and referred to as Assessor Parcel Numbers 001-210-013, -016, & -0 Rincon Gateway Property On the Effective Date, City will has granteded to Land Trust a conservation easement encumbering the Rincon Gateway Rincon Gateway Conservation Easement and together with the Rincon Bluffs Conservation Easements ). The Rincon Bluffs Preserve and the Property
G. Land Trust and City, with approval from Citizens and the Carpinteria Open Space Management Advisory Board (a board that advises the City Council regarding development and use of all coastal open space and trails owned or managed by the CityCarpinteria Bluffs Nature Preserve and Viola Fields), desire to, as of the Effective Date, amend the Original Endowment Agreement to include the Rincon Gateway Property, such that the Endowment Fund will be available to be used by Formatted: Highlight

2 36699052.2
City for the operation, maintenance, and enhancement of both the Rincon Bluffs Property and the Rincon Gateway Property.

H. This Amended and Restated Endowment Agreement sets forth the terms and conditions for the management and use of the Endowment Fund for the Property.

H. AGREEMENT

1. Initial Establishment of Endowment Fund. The purpose of the Rincon Bluffs Preserve Endowment Fund ("Endowment Fund" or "Fund") is to provide annual revenue to City for the purpose of conducting maintenance and operation activities and completing environmental enhancement and capital improvements projects for the Property, all consistent with the terms of the Conservation Easements which encumbers the Property. The initial principal value ("Initial Principal Value") of the Endowment Fund under the Original Agreement was One Million and No/100 Dollars ($1,000,000.00). In order to preserve the purchasing power of this Fund, the "Principal Value" as such term is used in the Original Agreement and this Agreement, will be equal to the Initial Principal Value adjusted annually for inflation.

For purposes of adjusting for inflation, the Committee (defined below) will use the Consumer Price Index (CPI), Urban Wage Earners and Clerical Workers, Los Angeles-Long Beach-Anaheim, CA, published by the Bureau of Labor Statistics of the United States Department of Labor, or its successor.

2. Committee Oversight. The Endowment Fund will be held and managed by the Land Trust, which has organized a Carpinteria Bluffs Endowment Fund Committee ("Committee") to oversee and advise on the management, investment and disbursement of the Endowment Fund earnings and assets. The Committee will be appointed by the Board of Trustees of the Land Trust, and it will be composed of the following members: two (2) members and, optionally, one (1) alternate member of the Land Trust Board of Trustees; or Council of Advisors; and three (3) members and, optionally, one (1) alternate member nominated by the Board of Directors of Citizens.; and, one (1) non-voting member representing the City.

The Committee members will be appointed for 3-year renewable terms. While the purpose of this Endowment Fund is to support the City's management of the Property, the Endowment Fund is held by the Land Trust in order to provide external oversight of the use of the funds. As such, no voting Committee member may be a current employee or appointed or elected official of the City. Alternate members of the Committee may stand in as a voting member for a member representing the same organization as the alternate is representing when that voting Committee member is absent. If Citizens ceases to exist or becomes inactive, then other organization(s) with a focus on environmental protection and/or open-space preservation (with preference for those within the Carpinteria Valley, (particularly organizationsthose involved in the preservation of the Carpinteria Bluffs) must be approved by the Land Trust Board. Once approved, the organization(s) may nominate representatives to the Committee.

However, Tthe Board of Trustees of the Land Trust shall retain the ultimate decision-making authority on the appointment or replacement of members of the Committee and may reject nominees proposed by Citizens or other organizations, if, in its sole judgment, such nominees are not qualified for appointment.

3. Committee Responsibilities. The Committee is tasked with the goal of long-term growth of the Endowment Fund assets in accordance with policies to be developed by the Committee. The Land Trust will manage the Fund on behalf of the Committee in accordance with such Committee policies and the investment policy, which policy includes compliance with the Uniform Prudent Management of Institutional Funds Act. The Land Trust, with advice from the Committee, maywill designate one or more professional financial advisors based upon expertise and past performance to manage the assets of the Endowment Fund. The Endowment Fund shall be managed with a focus on long-term growth of the principal to maintain the relative purchasing power of the fund in perpetuity. The Committee shall meet at least semi-annually to review the Endowment Fund performance and annually to review and recommend to Land Trust disbursement of funds to the City for the benefit of the Property. The Committee shall prepare and deliver a report to the City annually providing the balance of the Endowment Fund and showing all income into and disbursements from the Endowment Fund Formatted: Indent: Left: 0.5", No bullets or

3 36699052.2
following generally accepted accounting principles (to the extent applicable)annually providing the balance of the Endowment Fund and showing all income into and disbursements from the Fund following generally accepted accounting practices. 4. Annual Distributions. The Committee will evaluate proposed budgets for the Property and approve distributions to the City on an annual basis ("Annual Distribution"). The City will be eligible to receive up to four percent (4%) of the Average Endowment Fund Balance (as defined below) annually; provided that, at the sole discretion of the Land Trust, Land Trust may permit distributions greater than four percent if the Endowment Fund balance exceeds the Principal Value after the annual distribution to the City.

The "Average Endowment Fund Balance" will be calculated by averaging the immediately preceding twelve (12) calendar quarters' Endowment Fund balance. The Average Endowment Fund Balance will then be multiplied by 0.04 to calculate the Annual Distribution. Should Endowment Fund earnings be less than four percent, the balance may decline, but in no event shall the Endowment Fund balance be allowed to fall below the Principal Value. If an Annual Distribution of four percent would cause the Endowment Fund balance to fall below the Principal Value, Land Trust shall limit the Annual Distribution for such year to such amount that will retain the Principal Value. Disbursements from the Fund are strictly limited to reasonable fund management expenses and disbursements to the City.

If the earnings from the Endowment Fund are insufficient to provide for the management, maintenance and preservation of the Property, City shall use such available earnings to address the most critical management, maintenance, and preservation needs of the Property, as determined by Land Trust in consultation with the Committee.

5. City Request for Funds. Annual Distributions of funds from the Endowment Fund to the City shall occur only after the City submits a letter to the Land Trust and the Committee, on or before January 15 of each year, specifying, at a minimum, the following:
(a) Routine maintenance performed on the Property during the prior year, including any significant modification of the standard practices due to changes in circumstances, environmental conditions, or maintenance techniques;
(b) Actual costs associated with maintenance performed on Property during the prior year; (c) Proposed maintenance to be performed on the Property during the coming year, including any significant modification of the standard practices due to changes in circumstances, environmental conditions, or maintenance techniques;
(d) Amount of funds, if any, necessary for City to comply with federal, state, or local laws concerning public health and safety requirements;
(e) Any extraordinary maintenance or planned environmental enhancements to be performed that are outside the scope of the standard maintenance practices; and (f) All anticipated costs associated with proposed work and other necessary operational activities, such as public safety patrols of Property by City law and code enforcement personnel. (g) Provided such letter from the City is timely submitted to Land Trust and the Committee, Land Trust will deliver to City on or before February 15 of each year the Annual Distribution amount from the Endowment Fund.

6. Conservation Easement Compliance. Prior to making its Annual Distribution recommendation, the Committee shall be advised of the status of any violations and/or enforcement actions taken by the Land Trust under the Conservation Easement(s) and shall have the opportunity to review all available Land Trust Conservation Easements monitoring reports. Land Trust may withhold all or a portion of the Annual Distribution if the following circumstances exist:

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(a) Land Trust determines that a significant violation of the terms, conditions, covenants, or restrictions contained in the Conservation Easements (or either of them) has occurred or is threatened by actions of City or anyone acting under its authority;
(b) Land Trust has given written notice to City of such violation that includes the specific section(s) of the applicable Conservation Easement(s) alleged to have been violated and has recommended to City a suggested corrective action to reasonably cure the violation; and (c) Land Trust determines that City has not cured or initiated reasonable actions to cure the violation.

Notwithstanding the foregoing, Land Trust shall not withhold funds reasonably necessary for City to comply with federal, state, or local laws concerning public health and safety requirements, provided that the disbursement of those funds is otherwise permitted under the terms of this Agreement.

7. Emergency Disbursement Requests. The Committee will recognize that emergency situations, including impacts from natural disasters, may arise that require the City to deviate from its standard maintenance practices and, perform emergency work immediately to protect the Property or hazardous conditions that jeopardize public health and safety, or delay or defer certain maintenance activities. The City shall notify the Land Trust and the Committee, in writing and preferably in advance, when any significant emergency work is required. Under such circumstances, the City may apply at any time for a special disbursement from the Endowment Fund, in addition to the Annual Distribution, to meet such nonroutine or documented emergency maintenance needs. Such special disbursement shall be made at the sole discretion of the Land Trust, in consultation with the Committee, and may be charged at the time the special disbursement is made against the funds available for disbursement in the following year(s).

8. Improvement Fund. The Parties agreed under the Original Agreement that completion of certain capital improvements ("Initial Improvements") are necessary and desirable in support of safe public use and enjoyment of the Rincon Bluffs Preserve. Exhibit B to this Agreement, attached hereto and incorporated herein by reference, describes certain Initial Improvements, all to be built in accordance with the terms of the Rincon Bluffs Conservation Easement. To dateAs of the date of the Original Agreement, Land Trust has raised more than Seven Hundred Fifty Thousand Dollars ($750,000), in addition to the Endowment Fund, to construct and install these Initial Improvements (the "Improvement Fund"). The Parties recognize that the Improvement Fund is insufficient to construct all the Initial Improvements, but that significant opportunity exists to apply for and receive grants to achieve full funding for the Initial Improvementsthe same objectives. The Parties agree to collaborate and to leverage the limited Improvement Fund against grants to install all the Initial Improvements payable with available funding no later than four (4) years from the date that City takes ownership of the Rincon Gateway Property. If all of the Initial Improvements have not been completed to the satisfaction of Land Trust within four (4) years, the remaining unobligated balance of the Improvement Fund may be used at the discretion of Land Trust for the benefit of the Property. If all of the Initial Improvements have been completed to the satisfaction of Land Trust, then theany remaining unobligated funds in the Improvement Fund will be applied to the Endowment Fund and will be treated as additional principal for the purpose of defining Initial Principal Value and calculating Average Endowment Fund Balance.

9. Notices. Any notice, demand, request, consent, approval, or communication that either pParty desires or is required to give to the other shall be in writing and either served personally or sent by United States certified mail, return receipt requested, or by another common method or service where receipt is confirmed (including by email, with read receipt), addressed as follows or such other address as either Party from time to time shall designate by written notice to the other.

To CITY: City of Carpinteria Attn: City Manager
5775 Carpinteria Avenue
Carpinteria, CA 93013
Telephone: (805) 684-5405
[email protected]

5 36699052.2
To LAND TRUST: The Land Trust for Santa Barbara County
Attn: Executive Director
Post Office Box 91830
Santa Barbara, CA 93190-1830
Telephone: (805) 966-4520
mhendricks [email protected]
TO COMMITTEE: Carpinteria Bluffs Endowment Fund Committee Attn: Chair
[ADD ADDRESS, PHONE, EMAIL]c/o Land
Trust for Santa Barbara County
Post Office Box 91830
Santa Barbara, CA 93190-1830
Telephone: (805) 966-4520

10. Effective Date. This Agreement is shall become effective on the later of (a) the dates theat deed from the Land Trust to the City for the Rincon Gateway Property is recorded orand (b) the Rincon Gateway Conservation Easement is recorded Effective Date . On the Effective Date, the Original Agreement is superseded in its entirety by this Agreement.

11. Entire Agreement. This document sets forth the entire agreement of the Parties with respect to this Agreement and supersedes all prior discussions, negotiations, understandings, or agreements relating to this Endowment Fund (but expressly excluding the Conservation Easements), all of which are merged herein. This Agreement may be altered, amended, or modified only by instrument in writing, executed by the Parties to this Agreement. In the event of a conflict between the terms of either Conservation Easement and this Agreement, the terms of the applicable Conservation Easement shall prevail.

12. Authority. Each individual executing this Agreement on behalf of the City and the Land Trust represents and warrants that he, she, or they is duly authorized to execute and deliver this Agreement on behalf of such entity.

13. Waiver. Failure of any Party at any time to require performance of any provision of this Agreement shall not limit that Party's right to enforce the provision. Waiver of any breach of a provision shall not be a waiver of any succeeding breach of the provision or a waiver of the provision itself or of any other provision.

14. Dispute Resolution. In the event of a dispute, claim, or controversy there is a disagreement regarding any aspect of this Agreement that the Parties cannot resolve between themselves, the Parties agree to first attempt to resolve the matter through non-binding mediation before initiating arbitration or litigation. each A Party shall notify the other Party side of the issue in writing impasse and suggest the name of a mediator or mediators experienced in land use that are listed by the American Arbitration Association, the California State Board of Mediation and Conciliation, or other agreed-upon service. If the other side does not accept the suggested mediator(s), the disapproving Party shall have ten (10) days to make a counter-suggestion. In the event the Parties cannot agree on a mediator(s), each Party shall select one (1) mediator, who, together, shall select a mediator. Neither Party shall be obligated to continue the mediation process beyond a period of ninety (90) days from the date of the selection or appointment of a mediator or if the mediator concludes that there is no reasonable likelihood that continuing mediation will result in mutually agreeable resolution of the dispute. Any applicable statutes of limitation shall be tolled during the mediation process. In the event the dispute is not resolved by mediation, the Parties may then proceed with such other means of dispute resolution as they so choose.

The costs of mediation shall be borne equally by the Parties, but each Party shall bear its own costs, including attorneys' fees, individually. All communications, documents, and information disclosed during mediation shall be confidential and inadmissible in any subsequent proceeding, except as required by law.

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15. Attorneys' Fees. If either Party brings any legal action to enforce any provision of this Agreement, the prevailing Party shall be entitled to recover from the other Party costs, including reasonable attorneys' fees, and court costs in such amounts as shall be allowed by the court.

16. Construction. Headings at the beginning of each article, section, and subsection are solely for the convenience of the Parties and are not a part of and shall not be used to interpret this Agreement. The singular form shall include plural and vice versa. This Agreement shall not be construed as if it had been prepared by one of the Parties, but rather as if all Parties have prepared it. Unless otherwise indicated, all references to articles or sections are to this Agreement.

17. Counterparts. This Agreement may be executed simultaneously or in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement.

18. Successors. This Agreement shall be binding on and inure to the benefit of the Parties, and their respective heirs, personal representatives, successors, and assigns.

19. Further Assurances. Whenever reasonably requested to do so by another Party, each Party shall execute, acknowledge, and deliver any further instrument and/or document as may be necessary, expedient, or proper under the terms and conditions of this Agreement, in order to carry out the intent and purpose of this Agreement.
[Signatures to appear on next page.]

7 36699052.2
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the latest signed date last signed below. following day and year:

Date: _______________
CITY
CITY OF CARPINTERIA, a California municipal
corporation
By: ________________________
Name: ______________________
Its: _________________________
Date: _______________

LAND TRUST

THE LAND TRUST FOR SANTA BARBARA
COUNTY, a California nonprofit public benefit
a California nonprofit public benefit corporation
By: ________________________
Name: ______________________
Its: _________________________

8 36699052.2
EXHIBIT A-1

LEGAL DESCRIPTION OF THE RINCON BLUFFS PRESERVE
The land referred to herein below is situated in the City of Carpinteria, County of Santa Barbara, State of California, and is described as follows:

PARCEL ONE:

Beginning at the point of intersection of the Southerly line of the tract of land described in the Deed to State of California, recorded December 29,1950 as Instrument No. 18885 in Book 960, Page 413 of Official Records of said County, with the Westerly line of the tract of land described in Deed to Alyce Brooks, registered August 10, 1948 as Document No. 2415 in the Office of the Registrar of Titles and a copy thereof recorded August 10, 1948 as Document No. 11163, in Book 799, Page 105 of Official Records, Records of said County, said point of intersection being shown in Map of Survey filed in Book 30, Page 166 of Record of Surveys, in the Office of the County Recorder of said County; thence Southerly along the said Westerly line of said Brook tract to the Southwest corner thereof and a point in the Northerly line of the right of way of the Southerly Pacific Railroad Company thence Northwesterly along said Northerly line of said Railroad right of way following the courses thereof, to the Southeast corner of the tract of land described in the Deed to Andor Weiss, et ux., and recorded April 29,1957, as Instrument No. 8167, in Book 1443,

said Weiss tract of land, to its intersection with said Southerly line of the tract of land described in the Deed to State of California, hereinbefore referred to; thence Easterly along said land mentioned line, following the courses thereof to the point of beginning.

EXCEPTING THEREFROM that portion thereof described as Parcels 3A and 3B in the Final Order of Condemnation, Superior Court Case No. 79251, recorded April 5, 1968 as Instrument No. 11232, in Book 2227, Page 862 of Official Records, Records of said County.

ALSO EXCEPTING THEREFROM an undivided 5% of all oil, gas and other minerals in, on or under said land as reserved in Deed from T.H. Canfield and Opal A.Canfield dated July 17, 1948 and registered August 10, 1948 as Document No. 2414, in the Office of the Registrar of Titles, and recorded August 10, 1948 as Instrument No. 11162, in Book 798, Page 162 of Official Records, Records of said County.

ALSO EXCEPTING THEREFROM an undivided 50% interest of all oil, gas and other minerals in, on, or under the surface of said land, and providing that grantees shall have the full right to lease the said premises at any time for oil, gas or other mining purposes and receive the rental from such lease so long as such lease reserved sufficient royalty out of which to pay to granters the 50% of such oil or gas or other minerals herein reserved in the event of productions thereof from said premises, as reserved in the Deed from James F. Slaybaugh and Beulah Pearl Slaybaugh, recorded March 6, 1959 in Book 1603, Page 404 of Official Records.

ALSO EXCEPTING unto and in favor of granter 50% of any payment in the form of a bonus or otherwise received by grantees as and for the consideration for the execution by said grantees of any lease, assignment or transfer of any oil and mineral rights, in, on and under the surface of said land and of any rental received by grantees other than royalties provided for any such lease, assignment or transfer, as reserved in Deed last above mentioned.) All rights to use the surface and those portions of the subsurface lying above a depth of 500 feet below said surface were quitclaimed by James F. Slaybaugh and Beulah Pearl Slaybaugh, husband and wife to Burton SW. Hancock, by Quitclaim Deed recorded June 26, 1967 as Instrument No. 17410 in Book 2194, Page 1172 of Official Records.

9 36699052.2
PARCEL TWO:

The real property in the unincorporated area of the County of Santa Barbara, State of California, described as follows:

Beginning at the Southeasterly terminus of Course (5) described in the Final Order of Condemnation recorded April 5, 1968, in Volume 2227 of Official Records, at Page 862, Records of said County;
thence (A) in a general Southeasterly direction along Courses (4), (3), (2) and (1) as described in said Final Order to a point on said Course (1) distant thereon Northerly 17.49 feet from the Southerly Terminus thereof;
thence (B) from a tangent that bears North 68° 21' 07'' West, Northwesterly along a curve to the left with a radius of 365.00 feet through an angle of07° 25' 16" for an arc length of 47.28 feet to a point of reverse curvature;
thence (C) Northwesterly along a curve to the right with a radius of 535.00 feet tough angle of 47° 45' 59" for an arc length of 446.02 feet to a point of reverse curvature; thence (D), Northwesterly along a curve to the left with a radius of 765 feet through an angle of 35° 25" 00" for an arc length of 472.88 feet thence (E) North 63° 225' 24" West 11.06 feet to the point of beginning. EXCEPTING THEREFROM an undivided 5% of all oil, gas and other minerals in, on, or under said land as reserved in Deed from T.H. Canfield and Opal A. Canfield, dated July 17, 1948 and registered August 10, 1948 as Document No. 2414, in the Office of the Registrar of Title and recorded August 10, 1948 as Instrument No. 11162, in Book 798, Page 162 of Official Records, Records of said County. ALSO EXCEPTING THEREFROM an undivided 50% interest of all oil, gas and other minerals, in, on or under the surface of said land, and providing that grantees shall have the full right to lease the said premises at any time for oil, gas or other mining purposes and receive the rental from such lease so long as such lease reserved sufficient royalty out of which to pay to grantors the 50% of such oil, gas or other minerals herein reserved in the event of production thereof from said premises, as reserved in Deed from James F. Slaybaugh and Beulah Pearl Slaybaugh, recorded March 6,1959 in Book 1603, Page 404 of Official Records.

ALSO EXCEPTING unto and in favor of grantor 50% of any payment in the form of a bonus or otherwise received by grantees as and for the consideration for the execution by said grantees of any lease, assignment or transfer of any oil and mineral rights in, on and under the surface of said land and of any rentals received by grantees other than royalties provided for by any such lease, assignment or transfer as reserved in Deed last above mentioned.

All rights to use the surface and those portions of the subsurface lying above depth of 500 feet below said surface were quitclaimed by James F. Slaybaugh and Beulah Pearl Slaybaugh, husband and wife, to Burton W. Hancock by Quitclaim Deed recorded June 26, 1967 as Instrument No. 17410 in Book 2194, Page 1172 of Official Records.

PARCEL THREE:

That portion of the Rancho El Rincon in the County of Santa Barbara, State of California, described as follows:

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Beginning at a point on the Southwesterly line of the land described in the Deed to John Pyster, dated May 29, 1870, recorded in Book "I", Page 65 of Deeds, Records of said County, distant thereon South 68° 51' East 562.60 feet from the Southwesterly corner of said land of Pyster, said point of beginning being North 21° 09' East 37.5 feet from the Northeast corner of the land described in the Deed to Donald D. Davis et ux., recorded in Book 811, Page 489 of Official Records of said County;
thence South 68° 51' East, along said line of Pyster Tract 300 feet thence South 21° 09' West 825.13 feet, more or less to the Northerly right of way line of the Southern Pacific Railroad; thence along said right of way line of said Railroad, the following four courses and distances:

North 65° 44' 45" West 73.87 feet;
North 66° 53' 30" West 100.08 feet;
North 58° 53' 20" West 100.50 feet;
North 60° 35' 40" West 27.49 feet;
thence leaving said right of way line, North 21° 09' East along the Southwesterly prolongation of the Southeasterly Line of said Davis Tract and the Northeasterly prolongation thereof, at 468.48 feet, a ½ inch survey pipe set at the Southeast corner of said land of Davis, 796.38 feet to the point of beginning.

EXCEPTING THEREFROM that portion thereof described in the Deed to the State of California, registered December 29, 1950 as Document No. 3068 in the Office of the Registrar of Titles of said County, a copy of said Deed being recorded December 29, 1950 as Instrument No. 18885, in Book 960, Page 413 of Official Records, in the Office of the County Recorder of said County.

ALSO EXCEPTING THEREFROM that portion conveyed to the State of California, by Deed recorded June 23, 1966 as Instrument No. 20534, in Book 2155, Page 1235 of Official Records. ALSO EXCEPTING THEREFROM an undivided 5% of all oil, gas and other minerals in, on or under said land as reserved by T.H. Canfield and Opal A. Canfield, in Deed dated July 17, 1948 and registered August 10, 1948 as Torrens Document No. 2414, and recorded as Instrument No. 11162, in Book 798, Page 162 of Official Records of said County. ALSO EXCEPTING THEREFROM an undivided 50% of all oil, gas and other minerals, in, on or under the surface of said land as reserved in Deed from James F. Slaybaugh et al, recorded April 29, 1957 as Instrument No. 8167, in Book 1443, Page 141 of Official Records, Records of said County. By Deed dated February 24, 1962 and recorded March 8, 1962 as Instrument No. 9023 in Book 1908, Page 576 of Official Records, James F. Slaybaugh and Beulah Pearl Slaybaugh, husband and wife quitclaimed to Emma Weiss all rights to the surface of land above described and any portions of the subsurface of lands above described and any portions of the subsurface thereof, lying above, a depth of 500 feet below said surface.

ALSO EXCEPTING THEREFROM that portion described in Final Order of condemnation Superior Court Case No. 79251, recorded June 14, 1968 as Instrument No. 18817 in Book 2235,

11 36699052.2
EXHIBIT A-2

LEGAL DESCRIPTION OF THE RINCON GATEWAY PROPERTY
Real property in the City of Carpinteria, County of Santa Barbara, State of California, described as follows:

That portion of RANCHO EL RINCON in the County of Santa Barbara, State of California, described as follows:

Beginning at a point on the Westerly boundary of the land conveyed to Alyce Brooks by the deed recorded August 10, 1948 as Instrument No. 11163 in Book 799, Page 105 of Official Records in the office of the County Recorder of said county and shown on the map filed in Book 30, Page 166 of record of surveys in the office of said county Recorder, at the most Northerly corner of the land described in parcel Two in the deed to the State of California recorded October 31, 1968 as Instrument No. 33906 in Book 2250, Page 689 of said Official Records, being Northerly along said Westerly line 69.84 feet from the Northeasterly line of the S.P. railroad right of way shown on said map; thence Northerly along said Westerly line 310 feet more or less, to the intersection with the Southwesterly boundary line of the land described in the deed to the State of California recorded February 8, 1967 as Instrument No. 3460 in Book 2180, Page 772 of said Official Records; thence Southeasterly along said Southwesterly line, 13.08 feet to an angle point, 148.70 feet to an angle point, 103.36 feet to an angle point and 8.07 feet to the Northwesterly corner of the land described in Parcel One in the first mentioned deed to the State of California; thence Southerly along the Westerly boundary line of said Parcel One, 63.09 feet to an angle point and Southeasterly along the Southwesterly boundary line of said Parcel One, 60.53 feet to an angle point on the general Southwesterly boundary line of the land described in Parcel One in the deed to the State of California recorded September 22, 1966 as Instrument No. 30708 in Book 2166, Page 573 of said Official Records; thence Easterly and Southeasterly along said general Southwesterly line; 2.16 feet to an angle point, 102.8 feet to an angle point, 60.58 feet to an angle point and 183.87 feet to the intersection with the Northwesterly boundary line of the land described in the deed to the State of California recorded August 26, 1966 as Instrument No. 27836 in Book 2163, Page 785 of said Official Records; thence Southwesterly along said Northwesterly line 44.92 feet to the most Easterly corner of the land described in parcel Two of said deed to the State of California recorded in Book 2166, Page 573 of Official Records; thence Northwesterly along the Northeasterly boundary line of said last mentioned Parcel Two, to and along the Northeasterly line of the above mentioned Parcel Two in the deed recorded in Book 2250, Page 689 of said Official Records, 453 feet, more or less, to the Point of Beginning.

Excepting an undivided 5% of all oil, gas and other minerals in, on or under the surface of said premises as reserved by T. H. Canfield and Opal A. Canfield in deed to James F. Slaybaugh and Beulah Pearl Slaybaugh, recorded in Book 798, Page 162 of Official Records, of said county, and filed on August 10, 1948 as Torrens Instrument No. 2414, in the office of the registrar of land titles of said county.

Also excepting therefrom an undivided 10% of all oil, gas and other minerals in, on, or under the surface of said premises, as reserved by James F. Slaybaugh and wife, in deed to Alyce Brooks, recorded in Book 799, Page 105 of Official Records, records of said county, and filed on August 10, 1948 as Torrens Instrument No. 2415 in the office of the registrar of land titles.

Also excepting therefrom an undivided 30% of all oil, gas and other minerals in, on or under that portion of said land as reserved in deed from Donald D. Davis and Charlotte Davis, husband and wife, recorded November 2, 1957 as Instrument No. 24403 in Book 1487, Page 586 of Official Records of said county.

Also excepting therefrom as to the remaining, all oil, oil rights, minerals, mineral rights, natural gas, natural gas rights, and other hydrocarbons by whatsoever name known that May be within or under the parcel of land hereinabove described, together with the perpetual right of drilling, mining, exploring and operating therefor and removing the same from said land or any other land, including the right to whipstock or directionally drill and mine from lands other than those hereinabove described, oil, or gas

12 36699052.2
wells, tunnels and shafts into, through or across the subsurface of the land hereinabove described, and o bottom such whipstock or directionally drilled wells, tunnels and shafts under and beneath or beyond the exterior limits thereof, and to redrill, retunnel, equip, maintain, repair, deepen and operate any such wells or mines, without, however, the right to drill, mine, explore and operate through the surface or the upper 100 feet of the subsurface of the land hereinabove described or otherwise in such manner as to endanger the safety of any highway that May be constructed on said lands, as excepted in deed from James L. Ferry, Jr., as trustee of the James L. Ferry, Jr. And Mary Ella Ferry revocable trust to Santa Barbara dinner house, a limited partnership, recorded July 24, 1981 as Instrument No. 81-30379 of Official Records.

13 36699052.2

EXHIBIT B

RINCON BLUFFS PRESERVE INITIAL IMPROVEMENTS

1. Public Restroom (not to exceed 800 square feet in footprint)

2. Public Parking Lot (not to exceed 25,000 square feet)

3. Improved Trails (3,500 lineal feet of improved trail surface)

4. Information Kiosk

5. Donor Marker

Rincon Gateway
Jeanette Gant, PRCS Director
April 13, 2026

Carpinteria Bluffs Nature Preserve (Approximate Area)

Rincon Bluffs (Approximate Area)

Rincon Gateway (Approximate Area)

Bluffs Conservation Map – Baseline Report p.10

Q & A

City of Carpinteria

COUNCIL AGENDA STAFF REPORT

ITEM FOR COUNCIL CONSIDERATION
Receive and file the Revenue Enhancement Opportunities Report completed by HdL and consider providing
fiscal and infrastructure needs, including consideration of initiating community engagement and public education activities related to potential revenue measures.

STAFF RECOMMENDATION

1. Receive and file the City of Carpinteria Revenue Enhancement Opportunities Report completed by HdL and receive a presentation summarizing key findings;

2. Provide direction to staff on preferred revenue strategy or strategies to address the

3. Direct staff to initiate community engagement and public education related to potential revenue measures;

4. Approve and authorize the City Manager to execute Amendment No. 1 to the agreement with CliffordMoss for outreach and public engagement services, increasing the contract amount by $30,000 for a new total amount not to exceed $130,000; and

5. Approve a budget appropriation for $84,000 for the current fiscal year from the Measure X Fund (104) for professional services.
(This motion requires a roll call vote.)
Sample Motion: I move to receive and file the Revenue Enhancement Opportunities Report, receive the presentation, and provide direction to staff regarding preferred revenue strategies, including initiating community engagement and approving Amendment No. 1 to the agreement with CliffordMoss for outreach and public engagement services.

BACKGROUND
City Council Direction and Consideration of Potential Revenue Measures Fiscal Year (FY) 2026/27 Strategic Plan includes Primary Goal #4 Maintain the Fiscal Sustainability of the City. As part of this goal, the City Council directed staff to explore and evaluate opportunities to enhance and diversify revenue streams to Agenda Section: Other Business
Agenda Item No.: 18
Council Meeting Date: April 13, 2026

Potential Revenue Enhancement Options
April 13, 2026

maintain current service levels, address ongoing infrastructure needs, and support the City's long-term financial sustainability.

Consistent with this direction, the City Council approved a structured work program for the General Government Department that included conducting voter survey research related to potential revenue measures, analyzing available revenue mechanisms and their respective approval requirements and revenue potential, advancing cost recovery strategies such as assessment districts through the Proposition 218 process, and preparing for potential implementation of revenue measures where appropriate.

Given this direction, staff initiated a comprehensive effort to evaluate potential funding strategies. This effort included completing voter survey research related to both assessment districts and potential revenue measures, advancing Proposition 218 proceedings for assessment districts, and engaging HdL ECONSolutions to prepare a Revenue Enhancement Opportunities Report evaluating the range of revenue tools available to the City.

In March 2026, the City completed the Proposition 218 proceedings for two assessment district efforts intended to provide dedicated funding for maintenance and infrastructurerelated services. These measures did not receive sufficient support to pass. As a result, approximately $1.2 million in annual funding is not available to support these services, requiring continued subsidization by other City funding sources and/or a reduction in service levels.
policy direction is needed to determine
which, if any, of the identified revenue strategies should be advanced.

The City Council is aware of the financial constraints facing the City as a result of rising costs due to inflation, economic uncertainty at the federal level, and the growing demands to maintain and expand service levels throughout Carpinteria. These factors have placed , deferred
maintenance, and rising public safety costs have further compounded these financial challenges.

With Council support and direction, staff have acted prudently and resourcefully to address the challenges by identifying efficiencies and aggressively pursuing grants and other one-time funding sources. While these actions have helped offset costs and advance key projects, they do not
between ongoing revenue and expenditures.

In addition to operating costs, the City faces substantial infrastructure obligations, including deferred maintenance associated with streets, facilities, and other public assets, as well as a growing backlog of unfunded Capital Improvement Program (CIP) projects.

Potential Revenue Enhancement Options
April 13, 2026

Current estimates indicate approximately:
$8,500,000 in deferred street and pavement maintenance
$6,300,000 in deferred facility and asset maintenance
$14,800,000 in total deferred maintenance
Deferred maintenance reflects the backlog of maintenance and rehabilitation work that has been postponed due to funding constraints and the resulting condition and deterioration of City assets.
-year Capital Improvement Program includes
approximately $133,600,000 in unfunded project costs, which represents the broader These figures are planningcurrent infrastructure backlog and the scale of investment needed to maintain and improve public assets over time.

Beyond these existing obligations, the City must also continue to invest in ongoing preventative and routine maintenance to avoid further deterioration and more costly rehabilitation in the future.

The cost of delivering capital projects and addressing deferred maintenance has increased significantly due to construction inflation, labor shortages, regulatory requirements, and supply chain constraints. As a result, deferring infrastructure investment
long-term financial exposure.

In addition, the City faces significant financial challenges on multiple fronts:

Rising Costs of Law Enforcement: The escalation in costs associated with the present a substantial and growing financial obligation. The cost for law enforcement services is approximately $6.6 million in FY 2025/2026 and is projected to increase to approximately $6.9 million in FY 2026/2027. These ability to allocate resources toward other priorities.

Rising Operational Costs: Expanded service levels, including library services, senior services, and parks maintenance, compete for an increasingly limited pool of discretionary funds, compounded by inflation across all City operations.

Stagnation of Key Revenues: Primary revenue sources have not kept pace with Rising Capital Improvement Program Costs: Project costs continue to exceed historical estimates due to labor, material, and regulatory factors.

Potential Revenue Enhancement Options
April 13, 2026

Insufficient Assessment District Revenues:
and Winter Berm assessment districts have not been updated since the mid1990s. As a result, they require a significant subsidy from the general fund and other sources, limiting the address other priorities. A Prop 218 ballot initiative to adjust rates to current costs was not approved, resulting in an approximate $1.2 million annual shortfall between district revenues and expenses.

It is important to clarify the implications of the Prop 218 ballot results. The services provided by the districts, such as construction of the winter berm and street tree maintenance, are not fully optional and cannot be reduced without consequence. These activities are necessary to maintain public safety, reduce wildfire risk, comply with regulatory requirements, and preserve the condition of public spaces.

In the absence of a dedicated funding source, these services must continue to be funded through limited and constrained City resources, including the General Fund, Measure X, and other constrained sources. As a result, funding that could otherwise be directed toward other priorities, such as street and road repairs, remains committed to these ongoing obligations.

Taken together, these factors highlight the
ongoing financial obligations and available resources.

Revenue Enhancement Opportunities Study
To further evaluate available options, the City retained HdL ECONSolutions (HdL) to prepare a Revenue Enhancement Opportunities Report, provided in Attachment A. The report evaluates potential revenue mechanisms available under California law, including a transaction use tax (TUT), a utility users tax (UUT), a parcel tax, and business license tax reform.

The report provides a comparative framework evaluating each option based on revenue potential, voter approval thresholds, feasibility, equity, and administrative considerations.

DISCUSSION
The City has completed the foundational work necessary to evaluate its fiscal condition and the range of available revenue options. Through the Strategic Plan work program, voter survey research, assessment district proceedings, and the preparation of the Revenue Enhancement Opportunities Report, the City has developed a clearer understanding of both its financial needs and the tools available to address them.

The remaining question is not whether a need exists, but how the City intends to respond to that need.

Potential Revenue Enhancement Options
April 13, 2026

Broadly, the City has several approaches available, which are not mutually exclusive and may be pursued in combination:

Continue to defer infrastructure investment and absorb increasing costs within existing resources, which will require ongoing General Fund subsidies and may result in service level tradeoffs over time;
Establish new ongoing revenue to more sustainably fund City services and infrastructure needs; and
Utilize financing tools to accelerate project delivery, supported by a stable and ongoing revenue source.

These approaches may be used independently or in combination. For example, new ongoing revenue may support both current service needs and the use of financing tools to address deferred infrastructure more efficiently. Each approach carries tradeoffs related to cost, timing, service levels, and long-term financial sustainability.

Evaluation of Revenue Options
The HdL report evaluates several revenue mechanisms available to the City, each of which differs in revenue potential, voter approval requirements, administrative complexity, and distribution of the cost burden. Based on this analysis, the following summarizes the primary options evaluated for Carpinteria:

A transaction use tax (TUT) provides one of the more viable and flexible revenue options available to the City. HdL estimates that a 0.25% increase could generate approximately $694,500 annually, before CDTFA administrative fees. HdL also notes that Carpinteria currently has a total sales tax rate of 9.00%, which means the City has the capacity to consider an additional 0.25% TUT tax while remaining under the current statutory cap (9.25%). In addition, HdL estimates that non-residents, which supports the conclusion that this revenue source is borne by both residents and non-residents. The report further notes that a transaction use tax is comparatively easier to administer because the City already has this tax structure in place, and the additional administrative burden would be incremental.

A utility user tax (UUT) has the potential to generate meaningful revenue, but the actual amount would depend heavily on the tax structure adopted, including which utilities are taxed, at what rates, and whether the tax applies to residential customers, commercial customers, or both. HdL provides two illustrative estimates. Using a per capita extrapolation from nearby jurisdictions, HdL estimates that a UUT could generate approximately $1,685,080 annually. Using a more generalized statewide methodology, HdL estimates that a basic 5% UUT on telecom, gas, and electricity could generate approximately $596,880 annually. HdL emphasizes that these estimates are illustrative only and that additional detailed analysis would be needed if the City wished to further consider this option. The report also notes that a UUT is borne directly by residents and businesses within

Potential Revenue Enhancement Options
April 13, 2026

the City and may involve greater administration and auditing complexity than a sales tax.

A parcel tax provides a stable and predictable revenue source, but it is limited to a specific purpose and requires a two-thirds voter approval threshold. HdL provides several illustrative revenue estimates depending on how the tax is structured. Assuming a citywide tax of $100 per parcel for commercial, industrial, and residential land use categories, HdL estimates that the tax would generate approximately $472,500 annually. HdL also provides a broader illustrative revenue range of approximately $354,380 to $945,000 annually, depending on the rate imposed and parcel categories included. While parcel taxes can provide steady revenue, the cost burden falls on property owners only, and the supermajority voter threshold makes this option less feasible than a general tax.

Business license tax reform presents an opportunity to improve equity within the , support the business community with possible
dedicated funding, and potentially increase revenue, but HdL does not provide a single refined revenue estimate for ballot measure purposes in the Revenue employee-based business license structure is producing comparatively low revenue and has substantial room for improvement. The report notes that changes to the structure could result in a more equitable tax system and increased revenue, but that more detailed analysis and, if a gross receipts model were pursued, actual gross receipts data collection would be needed before the City could develop a more reliable revenue projection. The evaluation matrix in the report accordingly identifies revenue potential for business license reform as unknown until tax and rates are established.

When considered collectively, several key factors emerge from the HdL analysis:

Revenue Potential: UUT may have the highest theoretical revenue potential depending on structure, while a TUT provides meaningful ongoing revenue with a clearer and more immediately actionable estimate.

Feasibility: A TUT appears to be one of the more feasible options due to its lower voter threshold as a general tax and the fact that a portion of the tax burden is shared by non-residents.

Equity: A TUT distributes costs more broadly, while a utility users tax and parcel tax concentrate the burden more directly on residents, businesses, or property owners within the City. Business license tax reform would improve equity within ucture by more appropriately aligning tax obligations
across businesses.

Administrative Complexity: A TUT is comparatively easier to administer because the City already has this structure in place, while UUT and business license reforms would require additional setup, monitoring, and administrative effort.

Potential Revenue Enhancement Options
April 13, 2026

Based on these factors, a TUT appears to provide the most balanced combination of revenue generation, feasibility, and administrative simplicity, and therefore represents the most viable option for near-term consideration. Staff is seeking City Council direction on whether to advance this or other strategies.

Table 1 provides a summary comparison of the primary revenue options evaluated, including estimated revenue potential, voter requirements, and key considerations.

Table 1: Revenue Options Comparison
Revenue
Option
Estimated
Annual
Revenue
Voter
Threshold Who Pays Key Advantages Key Constraints
Transactions
and Use Tax
(TUT)
~$694,500
per 0.25%
Majority
(general
tax)
Residents
+ Nonresidents
Broad cost
distribution, lower
voter threshold,
low administrative
burden
Limited by tax
cap, revenue
scales
incrementally
Utility Users
Tax (UUT)
~$596,880
to
$1,685,080
(depending
on structure)
Majority
(general
tax)
Residents
+
Businesses
Potential for higher
revenue depending
on rate structure
Direct impact on
residents, equity
concerns, and
administrative
complexity
Parcel Tax
~$354,380
to $945,000
(depending
on rate and
structure)
Two-thirds Property
Owners
Stable and
predictable
revenue
High voter
threshold,
restricted use,
burden on
property owners
Business
License Tax
Reform
$1.0M
$2.0M
(order-ofmagnitude
estimate;
subject to
further
analysis)
Majority or
two-thirds
depending
on structure
Businesses
(potentially
passed to
consumers)
Improves equity,
modernization
opportunity
Requires
structural
overhaul, revenue
uncertain, higher
administrative
effort
Public Opinion Research and Feasibility
research in fall 2025 to better understand community perspectives regarding potential revenue measures.

Potential Revenue Enhancement Options
April 13, 2026

The results of this research indicated that a local revenue measure, specifically a transaction and use tax (sales tax), tested favorably and exceeded the voter approval threshold required for passage. The polling also indicated that support for a potential needs, and the services that would be supported by additional revenue.

It should be noted that the polling focused on a TUT measure and did not include comparable testing of other revenue options evaluated in the HdL report.

While polling results are not determinative, they provide an important indicator of feasibility and community sentiment. The results suggest that, among the revenue options evaluated, a transaction and use tax represents a viable approach from both a policy and voter feasibility perspective.

These findings further support the importance of clear communication and community engagement as the City considers next steps.

Financing Considerations
The City has also begun exploring financing strategies as a potential tool to accelerate delivery of infrastructure projects and to reduce the long-term cost of delay. While financing can be an effective implementation tool, it requires a stable and ongoing revenue source and should be considered complementary to, rather than a substitute for, identifying sustainable revenue.

Outreach and Public Engagement Services
In order to support potential next steps, including community engagement and public education related to a potential revenue measure, staff recommends an amendment to engagement services.

Council direction, the proposed scope of work would expand to include strategic communications and outreach services such as messaging development, stakeholder engagement, public information strategy, and preparation of informational materials to support a potential November 2026 revenue measure.

The proposed work program includes a combination of strategic advisory services and community outreach efforts, including direct mail communications to residents, digital outreach, and stakeholder engagement. As outlined in Attachment B, the total estimated cost for this phase of work is approximately $84,000, which includes professional services, outreach materials, and related program costs.

Potential Revenue Enhancement Options
April 13, 2026

Accordingly, staff recommends approval of Amendment No. 1 to the agreement with CliffordMoss, increasing the contract amount by $30,000 for a new total amount not to exceed $130,000. A copy of the proposed amendment is provided as Attachment B.

Although sufficient funding was originally programmed in FY 2026/27 for this effort, an appropriation of $84,000 is needed in the current fiscal year to initiate community engagement and public education efforts and meet ballot measure timelines. This adjustment represents a shift in funding between fiscal years and is budget neutral over the two-year budget cycle.

Next Steps and Community Engagement
Should the City Council wish to proceed, staff recommends initiating a focused community engagement and public education effort to further inform residents about the Staff is seeking direction on which strategy or strategies to advance and whether to begin community engagement.

The following timeline outlines key milestones associated with the development and placement of a potential revenue measure on the November 3, 2026 ballot.

Table 2: Next Steps
Dates Description
April 13, 2026 City Council receives Revenue Enhancement Opportunities Report and provides direction on preferred revenue strategy and initiation of community engagement
May 11, 2026 (or
May 26, 2026)
City Council receives update, provides direction to proceed with a revenue measure, and reviews draft ballot framework and language
June 2026 (target:

June 8 or June 22)
City Council adopts ordinance to place a revenue measure on the November 3, 2026, ballot (requires majority vote of the City Council)
June October
2026
Public information and community outreach
June 25, 2026 Deadline to file with the Santa Barbara County Clerk of the Board of Supervisors for the request for consolidation services for the November 3, 2026 election
June 27, 2026 Deadline for submittal of arguments for and against the proposed measure
June 27, 2026 Deadline for City Attorney's impartial analysis August 4, 2026 Deadline for rebuttal arguments
November 3, 2026 Election Day

Potential Revenue Enhancement Options
April 13, 2026

POLICY CONSISTENCY
The proposed actions are consistent with the FY 2026/27 Strategic Plan Goal #4:

Maintain the Fiscal Sustainability of the City.

FINANCIAL CONSIDERATIONS
Approval of the recommended action will require a budget appropriation of $84,000 from the Measure X Fund (104) in account number 104-111-5201 (Professional Services) for the current fiscal year. The Measure X Fund has an available fund balance of $1,602,730, which is sufficient to support this appropriation.

Although sufficient funding was originally programmed in FY 2026/27 for this effort, this appropriation advances previously programmed funds into the current fiscal year to meet project timelines and is budget neutral over the two-year budget cycle.

LEGAL AND RISK MANAGEMENT CONSIDERATIONS
The City Attorney has assisted in the preparation of this agenda item and will be available to answer questions at the meeting.

OPTIONS
A. Receive and file the report and provide direction to staff.

B. Direct staff to pursue a specific revenue strategy.

C. Direct staff to initiate community engagement efforts.

D. Provide alternative direction.

PRINCIPAL PARTIES EXPECTED AT MEETING
HdL staff will be present.

ATTACHMENTS
A. Revenue Enhancement Opportunities Report (HdL ECONSolutions) B. Amendment No. 1 to Agreement No 2025-048 with CliffordMoss C. HdL Revenue Enhancement Report Presentation
Staff contact:

Ryan Kintz, Assistant City Manager (805) 755-4400, [email protected] Signature Reviewed by: Michael Ramirez, City Manager (805) 755-4450, [email protected] Signature

ATTACHMENT A
Revenue Enhancement Opportunities Report (HdL ECONSolutions)

City of Carpinteria
Revenue Enhancement Opportunities Report
Development Driven by Data
ECONSolutions by HdL
120 S. State College Blvd., Ste 200
Brea, CA 92821
www.hdlcompanies.com

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Version 2 Revised March 2026 City of Carpinteria 2

CITY OF CARPINTERIA REVENUE ENHANCEMENT OPPORTUNITIES
REPORT

BACKGROUND
The City of Carpinteria is exploring potential revenue enhancement opportunities to raise additional general fund tax revenue. The city retained the services of HdL to prepare a report evaluating various revenue enhancement opportunities.

Hinderliter de Llamas Associates (HdL) is a 42-year-old consulting firm with corporate offices in Brea, California, along with offices in Pleasanton and Fresno, as well as offices in Texas, Colorado, and Georgia. HdL is a highly respected consulting firm working in sales tax, property tax, tax & fee administration, revenue analysis, economic development, and cannabis management. HdL ECONSolutions was formed by HdL in 2014 to provide a variety of economic development products, services, and special projects in further serving local governments. HdL ECONSolutions has done work for 235 local governments in California and presently is working for 35 California cities and several private sector developers on a variety of economic development related services.

HdL has prepared similar Revenue Enhancement Opportunity Studies for the cities of Goleta, Rancho Cucamonga, and Jurupa Valley, as well as Sacramento County.

SUMMARY
The report identifies four potential revenue enhancement opportunities:

Transaction Use Tax (TUT)
Utility Users Tax (UUT)
Parcel Tax
Business License Tax (Review of the previous Business License Study that was prepared by HdL for the City in January 2024)
The summary table at the end of the document provides an evaluation of each tax by administrative ease, equity, revenue potential, and estimated compliance and administration costs. The Report also includes an analysis of retail spending in the form of Resident versus Non-Residents Analysis as an incorporated report.

This report evaluates each of the revenue opportunities by describing:

The nature of the tax.

The process to implement the tax and feasibility of implementation.

The potential revenue estimates.

The pros and cons of each including potential impacts on the residents and business within the community.

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The report does not make a recommendation or state a preference for one revenue source over another. However, it clearly outlines the above-described evaluation of each possible opportunity.

GENERAL SUMMARY OF APPROVAL REQUIREMENTS FOR REVENUE OPTIONS Each option requires local voter approval by the residents of Carpinteria. The required threshold for council approval to be placed on the ballot and voter approval to enact the measure is described for each option in the table below.

Revenue
Option
General Use of Funds Threshold Special Use of Funds Threshold Council
Approval Voter Approval
Council
Approval Voter Approval
Transaction
Use Tax (TUT)
Two-thirds
majority
(4 of 5)
Simple
majority
(50 +1)
Simple
majority
(3 of 5)
Two-thirds
majority
(66 + 1)
Utility User
Tax (UUT)
Two-thirds
majority
(4 of 5)
Simple
majority
(50 + 1)
Simple
majority
(3 of 5)
Two-thirds
majority
(66 + 1)
Parcel Tax* - - Simple
majority
(3 of 5)
Two-thirds
majority
(66 + 1)
Business
License Tax
Two-thirds
majority
(4 of 5)
Simple
majority
(50 + 1)
Simple
majority
(3 of 5)
Two-thirds
majority
(66 + 1) * Parcel taxes are always a special tax by law

TRANSACTION USE TAX
Description
A Transaction and Use Tax (TUT) is an additional sales tax levy on top of the BradleyBurns Local Sales and Use Tax imposed by individual cities.

What is referred to as the Bradley-Burns local tax portion of the sales tax is 1%. Cities, counties, and special districts have the ability to add on to the Bradley-Burns tax for their specific uses. Existing law authorizes cities and counties, subject to limitations and approval requirements, to levy a transaction and use district tax for general or specific purposes, in accordance with the requirements set forth in the Transaction and Use Tax Law, including a requirement that the combined rate of all taxes that may be imposed in accordance with that law in the jurisdiction not exceed 2%.

In Santa Barbara County the Bradley-Burns tax rate is 7.75%. In 2018, the residents of Carpinteria approved a 1.25% Transaction and Use Tax add on to the County 7.75%. In Fiscal Year 2025, this tax generated $3.77 million dollars in additional revenue to the city.

The chart below demonstrates the sales tax of cities in Santa Barbara County, including cities that have a TUT.

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Carpinteria has a total sales tax rate, including its TUT, of 9%. Therefore, there is capacity to increase the amount of the TUT of .25%, and still be under the 2% cap.

Currently there are 321 cities in the state that have approved a TUT. The cities in Santa ng:

City of Carpinteria 9.00%
City of Goleta 8.75%
City of Guadalupe 8.75%
City of Lompoc 8.75%
City of Santa Barbara 9.25%
City of Santa Maria 8.75%
City of Solvang 8.75%
Implementation Process

Enactment of a Transaction and Use Tax (TUT) requires a ballot measure approved by the residents of the City. For a general tax, placing the measure on the ballot requires a two-thirds vote of all members of the City Council (4 out of 5 for the City of Carpinteria), and voter approval requires a simple majority (50% plus 1). For a special tax, placing the measure on the ballot requires a majority vote of the City Council, and voter approval requires a two-thirds vote of the electorate.

Pros and Cons
Pros
Included in this report is a sales tax analysis of Resident v. Non-Residents for the City.

Based upon 2023 revenue estimates, 18.1% of the TUT for Carpinteria is estimated to be paid by non-residents. This emphasizes that a TUT tax would be borne by both residents and non-residents.

Cons
Sales taxes are regressive by nature. Taxes on general goods and services consume a Process to Increase the Transaction and Use Tax (TUT) Beyond the 2% Cap Limit The existing Revenue and Taxation Code authorizes cities and counties, subject to certain limitations and approval requirements, to levy a transaction and use tax for general or specific purposes, in accordance with the procedures and requirements set forth in the Transaction and Use tax Law to exceed the 2% limit. The authorization to exceed the 2% limit requires State Legislation action, in the form of legislation to allow for a specific jurisdiction to exceed the limit. The bill must be approved by the State legislature to allow the City to make this exemption. The City will still need to follow the local voter approval process to approve the measure.

Potential Revenue Estimate
Since the City of Carpinteria has an existing Transactions Tax it is fairly easy to create an accurate estimate of what an incremental TUT increase could generate on an annual

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basis. HdL calculated an estimate of 0.25% increase in the existing TUT. The estimate is an additional $694,500.

If the City were to pursue a legislative exemption to the 2% cap, the voters would need to approve a ballot measure to approve an additional tax amount. The increased tax amount can be calculated by the estimates of the additional 0.25%. In rounded numbers an additional TUT could generate an additional $700,000 per quarter cent. There would be an additional administrative cost associated with monitoring the revenue stream and compliance. The increased cost for an amendment to the contract with HdL to monitor the cit sales tax could be in the range of $3,600 per year.

UTILITY USER TAX
Description
A Utility User Tax (UUT) may be imposed by a city on the consumption of utility services, including (but not limited to) electricity, gas, water, sewer, telecommunications, sanitation, and cable television and other video services. Based on recent rulings, this can include streaming services and programming where the ordinance language is sufficiently broad and technology neutral. For example, a city may choose to tax some categories of utilities at a 6% rate and others at 4% or not at all. The city may also choose to tax only residential or only commercial customers for each category of utility. The tax is collected by the utility as part of its regular billing cycle and then remitted to the city. Most city UUT levies are general taxes. Currently, 157 cities in California levy utility user taxes.

Typically, UUT rates vary from one to 11 percent. The average rate is four to five percent.

Currently there are two cities in the County of Santa Barbara, Santa Barbara and Guadalupe, which impose a UUT. Cities in close proximity to Carpinteria include Grover Beach, San Luis Obispo, Port Hueneme and San Buenaventura.

Implementation Process

Enactment of a UUT requires a ballot measure approved by the residents of the City. For a general tax, placing the measure on the ballot requires a two-thirds vote of all members of the City Council (4 out of 5 for the City of Carpinteria), and voter approval requires a simple majority (50% plus 1). For a special tax, placing the measure on the ballot requires a majority vote of the City Council, and voter approval requires a two-thirds vote of the electorate. Depending on the specifics of how a tax measure is proposed it can include a From June 2002 through November 2024 there were 99 measures that passed to increase or adopt a new UUT. Eleven were special taxes designated for a specific purpose. Among the 88 general taxes, 12 were accompanied by advisory measures.

As described previously, there are many variations as to which properties can be taxed, such as residents and/or commercial customers, which categories of utilities it applies to and at what rate can be for each. If the City were to pursue consideration of a UUT, a

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separate analysis should be conducted. Issues to be analyzed should include who should be taxed, which categories of utilities it should apply to and at what rates.

Collection of the revenue is the responsibility of the various utilities and are remitted to the city on a regular schedule based upon negotiations with the utilities. Any time there is a reliance on an outside agency responsible for collection and remittance there are greater chances of errors. This can be further complicated if there are many variations to -party company to help manage and
audit UUT remittance.

Pros and Cons
Pros
Depending on the percentage of the tax, UUTs can generate a significant amount of revenue that can be used for general purposes.

Traditionally, UUTs are a dependable and consistent revenue stream. Revenues can increase gradually over time as the cost of the utility rates increase.

Cons
The tax is considered regressive in that the most common utilities taxed include electricity, gas and water which are basic household utilities. The utility rates users pay are based upon consumption. Therefore, the more you use the higher your bill. Utility consumption owners or tenants with lower incomes pay a disproportionate percentage of their income on utilities and the UUT.

The tax is on the utility consumption of residents and businesses in the city. Businesses may also choose to pass on the cost of the UUT to their customers in the form of higher prices.

Summary
As mentioned in the pros section, historically the revenue stream is consistent. However, with current and future changes in the availability of some utilities such as water and energy, UUT revenue may become more of a volatile revenue source with greater fluctuations.

Potential Revenue Estimate
Estimating potential revenue can be a bit complex. It depends on the percentage of the tax and the utilities that the city chooses to impose the tax. This varies from city to city. In addition, revenues collected by many utilities are proprietary information, so it is difficult to know exactly the amount of revenue collected by certain utilities. One way to estimate potential revenue is to look at one or more cities in the region that currently impose the tax, determine their actual revenue, and extrapolate it for the City of population.

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Extrapolation Rate Approach
HdL identified six surrounding cities in close proximity to the City of Carpinteria, Santa Barbara, Guadelupe, Grover Beach, San Luis Obispo, Port Hueneme and San Buenaventura.

Utility User Tax Rates - Cities in Santa Barbara County - as of February 2021* County: Santa Barbara San Luis Obispo Ventura
City: Guadalupe
Santa
Barbara
Grover
Beach
San Luis
Obispo
Port
Hueneme
San
Buenaventura
Population 8,622 86,499 12,547 49,244 21,217 109,058
Amount Collected YE
2023 $1,743,990 $16,381,340 $205,840 $6,904,190 $1,229,140 $10,020,150 Telephone: IntraSt
Resid 5.0% 5.75% 1.0% 4.8% 3.75% 4.5%
Telephone: IntraSt
Commercial 5.0% 5.75% 1.0% 4.8% 3.75% 4.5%
Telephone: InterSt
Resid 5.75% 4.8% 3.75% 4.5%
Telephone: InterSt
Commercial 5.75% 4.8% 3.75% 4.5%
Telephone: IntNt'l
Resid 5.75% 4.8% 3.75% 4.5%
Telephone: IntNt'l
Commercial 5.75% 4.8% 3.75% 4.5%
Telephone: Wireless
Resid 5.75% 4.8% 3.75% 4.5%
Telephone: Wireless
Commercial 5.75% 4.8% 3.75% 4.5%
ElectricityResidential 5.0% 6.0% 1.0% 5.0% 4.0% 5.0%
Electricity -
Commercial 5.0% 6.0% 1.0% 5.0% 4.0% 5.0%
Gas - Residential 5.0% 6.0% 1.0% 5.0% 4.0% 5.0%
Gas - Commercial 5.0% 6.0% 1.0% 5.0% 4.0% 5.0%
CATV Residential 6.0% 1.0% 5.0% 4.0% 4.5%
CATV Commercial 6.0% 1.0% 5.0% 4.0% 4.5%
Water Residential 5.0% 6.0% 1.0% 5.0% 4.0%
Water Commercial 5.0% 6.0% 1.0% 5.0% 4.0%
Garbage Residential 6.0%
Garbage Commercial 6.0%
Source: CaliforniaCityFinance.com from League of Calif Cities and UUTINFO.ORG Survey Data * Most recent available comparative dataset (February 2021)

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The revenue data was reported by cities to the League of California Cities and therefore This would probably be more accurate than drawing the information from each city, which may choose different reporting format, dates, and/or criteria.

Analysis of UUT Revenue Based on Average Per Capita
Description Amount
Total Pop. of Surveyed Cities 287,187
Total UUT Revenue of Surveyed Cities $36,484,650
Average UUT per Capita $127
Carpinteria Population 13,264
Potential UUT Revenue based on Avg. Per Capita $1,685,080 Based upon the per capita analysis, it is estimated that the city might achieve approximately $1.68 million in annual revenue from a UUT based upon the presumptions in the analysis scenario.

There would be a cost to administer the collection and auditing of the UUT tax. That cost could vary depending on if the city chooses to administer the collection in house or contract with a third-party.

Statewide Average Rate
There is also another methodology to project revenues for a potential UUT. HdL has performed many other UUT revenue estimations for various clients. As another estimation method, we have found that based upon averages from across the state, a simple estimation for a basic UUT of 5% on telecom, gas and electricity could be used as a generalized average rate. This generalized average rate analysis methodology approach equates to approximately $45 in annual payments per capita. Using that estimate and the latest census population for Carpinteria of 13,264, the annual revenue for Carpinteria could be $596,880.

Just to clarify as we described above, the variables for UUT tax can vary dramatically based upon the utilities taxed and the amount of the tax. The above estimations are just to illustrate the potential range of revenues. If the City were to consider this option furthermore detailed analysis would need to be conducted.

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PARCEL TAX
Description
A parcel tax is a tax on a parcel of property within a city. The tax must be imposed for a specific purpose. The revenue collected may only be used for that specific purpose1. For example, library services, public safety or roads or infrastructure improvements are common purposes. The owner of the individual property pays the tax. This is a flat fee tax on each parcel and not based upon the value of the parcel, unlike property taxes. The amount of the flat fee is set by the city and can vary depending upon the type of use of the property, for example, single-family residence, multi-family properties, commercial, industrial or vacant property can have different rates. The tax rate can also be the same for all parcels regardless of land use. The city can also exempt certain classifications of properties. All of the tax rate decisions are at the discretion of the city. The tax rate should also be roughly proportional to the use of the services, so a tax rate study is required. A CPI increase may be built into the tax if supported by the tax rate study.

Parcel Taxes are most commonly imposed by school districts and special districts. The tax process is most utilized by cities for specialized services such as library or public safety services.

Parcel Taxes are not to be confused with Property Assessments which are taxes assessed on specific properties for specific services provided to those properties, such as landscape maintenance and street lighting. These are referred to as Special Districts.

It is the consultant s understanding the City is currently pursuing updates to two existing assessment districts Landscape and Right-of-Way Improvement District No. 3 and Winter Berm Assessment District No. 5 to ensure that the assessments levied are aligned with the actual cost of providing services to those districts.

Implementation Process

Enactment of a parcel tax requires a ballot measure approved by the residents of the City.

Parcel taxes are always a special tax by law. For a special tax, placing the measure on the ballot requires a majority vote of the City Council, and voter approval requires a twothirds vote of the electorate.

As described previously in the report, and much like UUT, there are many variations as to which parcels would be taxed and at what rates and the purpose of the tax. If the City were to pursue consideration of a parcel tax, a separate analysis on defining the purpose and the taxing structure and providing more refined revenue estimates for each option would be required.
1 General law cities have the authority to levy parcel taxes pursuant to Government Code Section 37100.5, which limits parcel taxes to those made pursuant to Article XIII A, which would include (1) 1% ad valorem taxes and (2) a special tax receiving two-thirds voter approval pursuant to Article XIII A, Section 4. This means that a parcel tax must be adopted as a special tax receiving two-thirds voter approval; however, parcel taxes may be levied for general purposes in addition to being restricted to a particular purpose.

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Potential Revenue Estimate
The City can set the tax rate based upon a fixed amount for various categories of property use. The table below identifies the parcel inventory for the city.

Type Percent Number
Commercial 3.8% 164
Industrial 1.75% 90
Residential, including multi-family 86.7% 4,471
Misc. 8.4% 433
Total 100.0% 5,158
As mentioned, the city can set a different taxing rate for the different land use categories.

However, we can provide a simplistic illustration of revenue potential. For example, assuming a city-wide parcel of tax of $100 per parcel for land use categories of commercial, industrial, and residential properties, at 4,725 parcels, the tax would generate approximately $472,500 annually.

There are many combinations of rates and property types the city could choose to produce the most equitable tax structure. For example, using the table below as a model, the city could choose to cap the residential rate at $100 per parcel, generating approximately $447,100 in revenue, along with a $150 per parcel rate for commercial and industrial properties, for a total of $38,100 ($24,600 for commercial plus $13,500) for a grand total of $485,200 per year. The possible combination of rates is too long to be detailed in this report, but the table should give city staff and Council members an idea of how a parcel tax can be structured.

Rate per Parcel
Property
Type
No. of
Parcels $75 $100 $125 $150 $175 $200
Commercial 164 $12,300 $16,400 $20,500 $24,600 $28,700 $32,800 Industrial 90 $6,750 $9,000 $11,250 $13,500 $15,750 $18,000 Residential,
including
multi-family
4,471 $335,330 $447,100 $558,880 $670,650 $782,430 $894,200 Total
Potential
Revenue
- $354,380 $472,500 $590,630 $708,750 $826,880 $945,000 As described above, the tax amount per parcel category can vary significantly. The illustration provided is intended to offer a general understanding of how a parcel tax could be structured and the potential revenue it could generate.

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As with the other tax options described in this report, there may be additional costs associated with monitoring and auditing the collection of the tax. These functions would most likely be performed by a third-party consultant.

Pros and Cons
Pros
Parcel taxes are a steady stream of income because they are based upon a fixed fee.

They are not subject to the volatility of land values.

Parcel taxes are less regressive than sales or value-based taxes since they are a fixed amount.

Cons
Residents and landowners of the city pay parcel taxes. Non-residents or visitors of the city are not subject to this type of tax.

Though parcel taxes are less regressive than sales taxes, they still impact lower/moderate income individuals disproportionately.

BUSINESS LICENSE TAX
Description
Most cities impose a business license tax on businesses that operate within the physical boundaries of the city. There are various methodologies on how the tax is calculated. The presumption of a business license tax is to tax business for the services provided by the city to support its business community, i.e., public safety, infrastructure impacts, etc.

Implementation Process
Changes to a business license tax require a ballot measure approved by the residents of the City. For a general tax, placing the measure on the ballot requires a two-thirds vote of all members of the City Council (4 out of 5 for the City of Carpinteria), and voter approval requires a simple majority (50% plus 1). For a special tax, placing the measure on the ballot requires a majority vote of the City Council, and voter approval requires a two-thirds vote of the electorate. In the November 2024 election, there were 15 cities in California that proposed general revisions or updates to their business license or special operations taxes, all of which passed.

Pros and Cons
Pros
Business license taxes can generate a significant amount of revenue. Voter approval is by the residents and not necessarily the business owners with residents more likely to approve the tax.

Cons
It can be considered a regressive tax in that the amount that businesses pay is considered a cost of doing business and therefore passed on to customer in the cost of goods and services.

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A business license tax, depending on the amount, may dissuade businesses, most likely small businesses from locating or staying within the city. However, the tax structure can be tailored to minimize the impact on small or locally owned businesses through tiered rates, exemptions, or lower thresholds for certain classifications.

Potential Revenue Estimates
There are several different models that cities use for business licenses taxes. Some are based on flat fees, based upon the number of employees or gross revenue generated by the business. A city can impose differing tax rates based upon the classification of business. However, more variations in tax rates make the administration and collection of the tax more complicated and thus more costly.

In 2023, the City of Carpinteria requested a Business License fee study by HdL Companies. The study was completed in January 2024. The study evaluated the current business license fee structure of the city and made recommendations for potential adjustments to the structure to increase revenue and make the structure more equitable amongst all businesses.

This current report analyzed the previous study and determined though there were changes in the business license composition of the city from 2024 to now, that the recommendations in the previous study are still valid. In January 2023, the City received $76,923 in annual business license revenue. In 2024, the city received $62,026, a decrease, but on average for the past 3 years. However, the number of businesses who were issued licenses increased from 1,431 in 2023 to 1,910 in 2024.

This trend an increase in the number of licenses issued alongside a decline in total revenue
effectively with business activity. In other words, more businesses are entering the system, but the flat or capped fee structure limits the amount of revenue collected, especially from larger or higher-earning businesses. As a result, small businesses may be paying a disproportionately higher share relative to their size or revenue. Updating the fee structure to better reflect business size or gross receipts could improve revenue generation while also creating a more equitable distribution of the tax burden.

The summary of the study concludes that the city could benefit from an adjustment to its Business License fee structure to increase revenues and make the structure more equitable to businesses.

The following are excerpts from the previous study. The complete study is included as a part of this report.

The City of Carpinteria (City) requires all businesses operating within the city, both those businesses located in the city and those located elsewhere but do work or provide service to locations in the city, to obtain a business license and pay

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producing very low revenues when compared even to similar employee-based jurisdictions. If the City were to consider updating its tax structure, we recommend that the city consider adopting a gross receipt tax structure like Model 3. That model keeps the tax structure simple to administer improves equity and could increase revenue for the future.

The report describes various options; however, the report does recommend the option for the gross receipts model. The city can also explore other options as well. If the city does want to consider the gross receipts option, there are some considerations to be considered regarding the revenue projections in the report.

The estimates of the gross receipts revenue projections in the report are illustrative and not based upon reported actual gross receipts. If the City were to consider changing the business tax structure a gross receipts data collection would be needed so the city has a more accurate revenue projection before placing a measure on the ballot.

Similar to the UUT option there may be some additional costs in administering the new business license tax structure. The amount may vary depending on whether the City administers the tax in house or contracts out to a third party.

SUMMARY
Transaction Use Tax (TUT)
From experiences of other cities, a TUT has one of the higher feasibilities of voter approval than other tax options. One of the reasons is that a portion of the revenue collected will come from non-residents making purchases within the city and the fact that many surrounding communities already impose a similar tax. The potential revenue generated is on the higher side of other options at approximately $700,000 for a .25% increase or higher if the city chooses to receive legislative relief for an amount higher than the State cap.

Utility User Tax (UUT)
The payers of UUT are residents and businesses within the city. The feasibility of passage of a UUT measure is less than other tax forms because of this fact. Businesses may pass on the cost they pay in a UUT at higher prices. The cost to administer a UUT may be higher in auditing collections from utilities depending on the number of utilities and variations in rates. As the report describes, revenue estimates can vary depending on the utilities taxed and the amount of tax on each utility.

Parcel Tax
Parcel tax revenue can only be used for the specific purpose for which the tax is levied.

Like a UUT, the tax is borne by the property owners within the city. The feasibility of passing a ballot measure is less than other tax forms because of this fact and the ability to demonstrate the need for the revenue for the specific purpose of the tax. The cost of administration is less than other tax options because the collection is the responsibility of

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the County. Similar to the UUT the revenue estimations depend on the amount of tax levied for specific parcels.

Business License Tax
The feasibility of voter approval of a business license tax may be slightly less than a TUT.

The tax is borne by the businesses in the city, who may pass on the additional cost in higher prices for goods and services. There are many variations in how the tax is an employee model. The
report and analysis completed by HdL in 2024 suggests that a change in the Business License model could result in a more equitable tax structure and result in increased revenue to the city.

Potential Tax Summary
Potential Tax Evaluation Matrix
Evaluation Category
Possible Tax Types
TUT UUT Parcel
Business
License
Administrative
Ease
The City
already
administers a
TUT so the
additional
administratio
n would be
slightly
incremental.

There would
be costs and
effort with
setting up
the
collection
process and
noticing the
utilities and
customers
and tracking
and
monitoring
the
collections.

Prior to
placing the
ballot on the
measure
there is a
requirement
for a study
to quantify
the nexus of
the fee to
service.

Monitoring
and verifying
the
collection
would most
likely require
a third party
A change in the
structure would
require
notification to
business and for
the city to
change its BL
administration
process.

Equity
Regressive,
but
nonresidents
would pay a
percentage of
tax within city
purchases.

Regressive.

It is only
paid by
residents
and
business.

Lower
income
residents
pay higher
Somewhat
regressive
and impacts
only
property
owners.

Potentially
regressive. Tax
is only on
businesses, but
they may pass
extra costs to
customers.

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percentage
of income on
utilities.

Revenue Potential $694,500 $1,685,080 $354,380 -
$945,000
Unknown until
tax and rates are
established.

Est.

Compliance/Admin
. costs
There would
be an
additional
cost for HdL
to monitor the
increased
tax, but that
cost is
minimal,
Relatively
high since it
requires
coordination
with local
utility
providers
and to
monitor
collections.

Monitoring
and
compliance
would
require a
third-party to
administer.

The cost will be
in transitioning
and
implementing
the new
structure.

Resident v. Non-Resident Report Analysis
The city requested an estimate of the approximate amount of sales and use tax revenue generated by residents versus non-residents. A full copy of the report is attached.

The table below summarizes the results of the analysis based on actual Bradley-Burns 1% Sales Tax revenue and Transactions & Use Tax at 1.25% in 2024 (Calendar Year), it also reflects the percentages of sales tax estimated from non-residents for the seven major industry groups. The 1% Bradley-Burns tax is based on where the sale is negotiated or the place where the order is taken, while Transactions and Use Taxes (TUT) are applied in accordance with where purchased goods are delivered or placed into use. This difference is what accounts for the variation in resident vs. non-resident patterns represented below. Non-resident purchases in some of the categories are not factored into calculation.

In summary, HdL companies estimates that 39.3 % of the 1% Bradley-Burns Sales Tax in 2024 is generated from non-residents, while the percentage of a 1.25% TUT paid by non-residents is estimated at 18.1%.

Economic Segment
Bradley-Burns 1%
Sales & Use Tax
Transactions &
Use Tax (TUT)
Autos & Transportation 44.0% 1.3%
Building & Construction 26.3% 5.0%
Business & Industry 57.6% 13.7%
Food & Drugs 34.6% 36.7%

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Fuel & Service Stations 35.9% 35.0%
General Consumer Goods 30.5% 8.1%
Restaurants & Hotels 35.4% 34.4%
Estimated Average NonResident Generated
Revenue

39.3% 18.1%
It is worth noting that several key factors contribute to the lower Transactions & Use tax (TUT) percentage. One of the factors is the structure of the Business & Industry (B&I) e the
Transactions and Use Tax (TUT) is destination-based, many of these transactions generate tax revenue for the cities where the goods are delivered often outside the originating city. Combined with high levels of non-resident spending, which reduces the local share of TUT revenue.

Other contributing factors are from economic sectors including General Consumer Goods and Autos & Transportation. While the General Consumer Goods sector contributes 8.7% -resident shoppers, analysis
suggests that the inflow of non-resident spending may not fully offset the outflow of resident spending at businesses outside the city. This imbalance further contributes to the reduced share of TUT revenue retained by the city. Additionally, the absence of auto dealerships within the city limits impacts on the Autos & Transportation sector. Since vehicle purchases are one of the major sources of TUT for this economic sector and are esident spending the primary source of
TUT in this sector, lowering the percentages for TUT from non-residents.

Attachments
Estimate for Transaction Tax/District Add-on Sales Tax June 2025 City of Carpinteria Business License Tax Analysis January 2024 City of Carpinteria Resident /Non-Resident Analysis

Attachment 1- Estimate for Transaction Tax/ District Add-On Sales Tax

City of Carpinteria
Estimate for Transactions Tax/District Add-on Sales Tax June 2025 The following district tax estimate was developed using comparisons of active voter approved transactions tax overrides of comparable juridictions within the region, including the City s current district tax. Per-capita figures at the countywide, statewide and regional levels were all considered when projecting and adjusting certain categories. The current cap would allow for an additional .25% district tax to be presented for future voter consideration.

NOTE Transactions tax estimate is based on the Bradley-Burns Local (1%) projection for FY 2026-27 from April 2025. The above figure is before administration fees.

Functional Differences: Bradley Burns (1%) local tax vs Voter Approved District Tax Traditionally, local tax is allocated based on an origin methodology where tax is allocated based on the place-of-sale. In other words, where the business is located. Voter approved district taxes are allocated on a destination methodology where tax generally follows the buyer. Traditional brick & mortar retailers, restaurants, and service stations will continue to generate a proportional amount of district tax compared to their normal local tax reporting. Below, highlights the most common and notable differences in respect to the two tax sources.

Local Tax District Tax
Vehicles Dealership (place-of-sale) District of vehicle registration Delivered Materials/Equipment Sales office, warehouse, county pool Destination of use (ship to location)
Online Sales Ship from location (fulfillment center
and/or county pool)
Destination of use (ship to
location)
Construction Contracts County Pool District of Jobsite location These functional differences create variations dependent on a tax base. An agency without auto dealerships typically experiences an influx of district tax revenue from that segment. Similarly, an agency heavy in industrial or warehousing sectors is likely shipping more products outside of the city, resulting in less district tax compared to their local tax revenues. These factors are all considered in the above estimate.

Attachment 2- City of Carpinteria Business License Tax Analysis

SUBMITTED BY
HdL Companies
120 S. State College Blvd., Ste 200
Brea, CA 92821
hdlcompanies.com

CONTACT
Eric Myers
T: (424) 228-8517 Ext. 1022
E: [email protected]
January 22, 2024

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Table Of Contents
EXECUTIVE SUMMARY 2
SECTION 1 – CITY OF CARPINTERIA & COMPARATIVE JURISDICTIONS 3 BUSINESS TAX - ANALYSIS 3
BUSINESS TAX - EQUITY OF CONTRIBUTION 4
CITY OF CARPINTERIA: BUSINESS TAX – BUSINESS TYPE SUMMARY 5 CITY OF CARPINTERIA: COMPARISON TO NEIGHBORING CITIES 6 COMPARISON CITIES SUMMARY TABLE (USING FY 18-19 DATA) 7 RATE COMPARISON - CITY OF CARPINTERIA VS. NEIGHBORS 9
SECTION 2 – CATEGORY & TAX ANALYSIS 10
TAX MODEL REVENUE AND EQUITY COMPARISON 10
MODEL 1: EXISTING CATEGORIES WITH SIMPLE INCREASES 11
MODELS 2 AND 3: GROSS RECEIPTS TAX 12
GROSS RECEIPTS TAX – ESTIMATES 12
MODEL 2: GROSS RECEIPTS TAX – SINGLE GROSS RECEIPTS RATE 12 MODEL 3: GROSS RECEIPTS TAX – CLASSIFICATION-BASED RATES 14 LICENSE CLASSIFICATION AND RATE TYPES 14
MODEL 4: REGISTRATION TAX MODEL 17
PROPOSED RATES COMPARISONS 18

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Executive Summary
Background
The City of Carpinteria (City) requires all businesses operating within the City, both those businesses located in the city and those located elsewhere but do work or provide service to locations in the city, to obtain a business license and pay business license taxes. (City’s Municipal Code (Code) section 5.04.110). This revenue is locally controlled and funds essential services. Businesses typically pay one or both fees and taxes. Fees are imposed for the primary purpose of covering the costs of a service or operation. Taxes are imposed for the primary purpose of generating revenue. The City does not impose fees as part of its business license code but is currently undertaking an independent cost analysis study. The City commissioned the HdL Companies ("HdL" or "we," "us," "our," or similar terms) to prepare this tax study to review the administrative efficiency of the current structures, to review options for improving the equity of the business license tax structure, if any, and to investigate the possibilities for additional revenue generation.

The models and recommendations in this study should be evaluated not only on whether they increase revenue but, ideally, also on whether they move the City's business license structure up and to the right in the four quadrants presented below in Chart 1.

Chart 1: Key Attributes Of Modern Business Tax Structures Recommendation
The City’s current structure has a lot of potential for improvement. It is currently producing very low revenues when compared even to similar employee-based jurisdictions. If the City were to consider updating its tax structure, we recommend that the City consider adopting a gross receipt tax structure like Model 3. That model keeps the tax structure simple to administer, improves equity, and could increase revenue for the future.

Report Structure
We have divided this report into two major sections and two appendices.

Section 1 - Pages: 4 to 11
In the first section, we review the City's current revenue and tax structures to describe the City's current situation.

Section 2 - Pages: 12 – 22
In this section, we review three alternative tax structures. Model 1 is a simple percentage increase applied to the existing tax structure. Model 2 explores a single flat gross receipts rate. Model 3 explores the impact of increase rates by category.

Please note that regardless of which models may be selected or if none are selected, the City Attorney and HdL will have additional proposed recommendations for the Carpinteria Municipal Code, which will be presented at a later date.

Tax Structure Simplification
Complex Tax Implementation

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SECTION 1 – City of Carpinteria & Comparative Jurisdictions Business Tax - Analysis
The City currently has approximately 1,4311 businesses that are paying their business license tax. Over the last four fiscal years (FY), business license tax revenue has averaged approximately $63,000 per fiscal year. As you can see in Chart 2, the City's business tax revenue peaked pre-pandemic and has dropped each fiscal year since. City resolution 5958 waived the tax for any business with less than 100 employees. The resolution’s financial impact was spread over the two fiscal years FY2020 and FY2021. This resolution is the main source of the lower revenues year over year through the pandemic.

However, it looks favorable for fiscal year 2022 to be above pre-pandemic levels. Chart 2: City of Carpinteria Business Tax Revenue 4-Year Revenue Trend Actual and estimated revenues are retrieved from data reported to the California State Controller. 1 This count comprises the active accounts in the city with recent payments. This gives a better representation of the businesses that will likely contribute to revenue in the future because they have contributed in the past.
$60,148 $59,248 $57,549
$76,923
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
FY2019 FY2020 FY2021 FY2022