Acceptance of Quitclaim Deed for Mathilda Park — Goleta City Council, June 18, 2024

Agenda Item A.8

CONSENT CALENDAR
Meeting Date: June 18, 2024
TO: Mayor and Councilmembers
SUBMITTED BY: Jaime A. Valdez, Assistant City Manager
PREPARED BY: JoAnne Plummer, Parks and Recreation Manager SUBJECT: Acceptance of Quitclaim Deed for Mathilda Park RECOMMENDATION:

Authorize the City Clerk to accept Quitclaim Deed for Mathilda Park from County of Santa Barbara and take all other incidental steps necessary to rec ord the Quitclaim Deed with the County Recorder.

BACKGROUND:

The City of Goleta (City) has operated Mathilda Park (Park) as a “pocket” or “mini-park” for the last two decades, and the Park was used by the County of Santa Barbara (County) as a park prior to the City’s incorporation. The boundaries of the park are des cribed in the below legal description and map.

Legal Description:

Lot 7 in Block 4 of Ellwood Acres No. 2, as shown on a map recorded June 16, 1927, in Book 15, pages 155 and 156 of Maps, records of Santa Barbara County, California.

Map:

A depiction of the area of the proposed acquisition and vacation of right-of-way is shown in Attachment 1.

The Department of Neighborhood Services is replacing the playground equipment in the park using federal Community Development Block Grant (CDBG) funds. In order to use such funding, the City must record a deed restriction requiring that the Park be used for park purposes. The deed restriction is recorded using an assessor’s parcel number (APN) for identification. City staff discovered that there was no APN associated with the park. The City received an extension to the deed restriction requirement while staff worked to resolve the issue. City staff subsequently contacted the County Recorder in order to assign an APN to the parcel. County Recorder staff informed the City that the Park is still recorded as a right- 1 Meeting Date: June 18, 2024

Page 2 of 3 ends

of-way (ROW), meaning that according to County records, the Park is still technically a street. Accordingly, the City will need to formally vacate the ROW and dedicate the Park for park purposes.

The legal effect of vacating the ROW would cause the underlying land to revert to the underlying owner. The City obtained a title report from Chicago Title (see Attachment 2) to confirm that fee title (ownership) is held by the City. The title report showed that the County still holds fee title to the Park, meaning that fee title must be transferred to the City before the City vacates the right -of-way. Ownership was likely not transferred to the City upon incorporation as intended because the Park was technically documented as a ROW, despite having been used as a park by the public for many years.

City staff identified the issues above to County staff. The County indicated its belief that the Park was intended to be transferred to the City upon its incorporation per Section 4.5 of the Revenue Neutrality Agreement (see Attachment 3) between the City and County. County staff indicated that the County would transfer fee to the Park as intended following approval from the County Board of Supervisors (BOS). At its June 4, 2024, meeting, the BOS voted to quitclaim the Park to the City (see Attachment 4 for Quitclaim Deed approved by the BOS).

DISCUSSION:

Accepting fee title to the Park is necessary to resolve the issues outlined above. Two events must occur:
(1) Under Government Code Section 65402, the City’s Planning Commission must find that the proposed acquisition is consistent with the General Plan. The Planning Commission made that finding at their regular meeting of Feb 12, 2024, as the Park is specifically listed as a park in the General Plan.
(2) The City Council must authorize the City Clerk to accept the quitcla im deed on behalf of the City. The City Clerk will then proceed with all subsequent steps necessary to effectuate the recordation of the Quitclaim Deed and City’s acceptance.

Authorizing the City Clerk to accept the quitclaim deed to the Park will allow C ity staff to formally vacate the ROW and return with a resolution for the City Council to dedicate the Park for park purposes. Once the Park has been dedicated, County Recorder staff will assign the park an APN. Then, City staff will be able to record the deed restriction required by the CDBG grant requirements. As such, City staff recommends that the City Council direct the City Clerk to accept the quitclaim deed for the parcel commonly known as Mathilda Park, contingent upon the Planning Commission finding that such acceptance is consistent with the City’s General Plan.

FISCAL IMPACTS:
2 Meeting Date: June 18, 2024

Page 3 of 3 ends

The City of Goleta has been maintaining Mathilda Park for over 20 years, with the assumption that the transfer of the property had occurred at incorporation. The acceptance of the Quitclaim Deed creates no additional costs to the City.

ALTERNATIVES:

The City Council may elect not to accept the Quitclaim Deed from the County of Santa Barbara. Doing so would result in the County continuing to hold Mathilda Park in fee, could limit the City’s ability to use the park for its intended purposes and would require the City to relinquish state grant funds associated with the renovation of the park location.

GOLETA STRATEGIC PLAN:

City-Wide Strategy:

2. Support community vitality and enhanced recreational opportunities Strategic Goal:

2.1. Provide community development for neighborhoods and social welfare assistance for disadvantaged and/or marginalized groups.

LEGAL REVIEW BY: Megan Garibaldi, City Attorney
APPROVED BY: Robert Nisbet, City Manager
ATTACHMENTS:

1. Map of the Proposed Acquisition and Vacation of Right-of-Way

2. Mathilda Park Title Report

3. Revenue Neutrality Agreement with County of Santa Barbara, City of Goleta Resolution No. 02-02

4. Quitclaim Deed Signed by the Santa Barbara County Board of Supervisors on June 4, 2024
3 ATTACHMENT 1
Map of the Proposed Acquisition and Vacation of Right-of-Way 4 5
6 ATTACHMENT 2
Mathilda Park Title Report
7 CLTA Preliminary Report Form - Modified (11.17.06) Printed: 08.31.23 @ 03:56 PM by SA SCA0002402.doc / Updated: 08.09.23 1 CA-CT-FWVE-02180.054775-SPS-1-23-FWVE-775230027

PRELIMINARY REPORT
In response to the application for a policy of title insurance referenced herein, Chicago Title Company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a policy or policies of title insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an exception herein or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations or Conditions of said policy forms.

The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said policy or policies are set forth in Attachment One. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the CLTA and ALTA Homeowner's Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in Attachment One. Copies of the policy forms should be read. They are available from the office which issued this report.

This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested.

The policy(ies) of title insurance to be issued hereunder will be policy(ies) of Chicago Title Insurance Company, a Florida corporation.

Please read the exceptions shown or referred to herein and the exceptions and exclusions set forth in Attachment One of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered.

It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects and encumbrances affecting title to the land.

Chicago Title Insurance Company
By:

Countersigned By:

Authorized Officer or Agent
Michael J. Nolan, President
Attest:

Marjorie Nemzura, Secretary
8 CLTA Preliminary Report Form - Modified (11.17.06) Printed: 08.31.23 @ 03:56 PM by SA SCA0002402.doc / Updated: 08.09.23 2 CA-CT-FWVE-02180.054775-SPS-1-23-FWVE-775230027 Visit Us on our Website: www.ctic.com
ISSUING OFFICE: 3700 State Street, Suite 100, Santa Barbara, CA 93105 Another Prompt Delivery From Chicago Title Company Title Department Where Local Experience And Expertise Make A Difference

PRELIMINARY REPORT
Title Officer: Steven Amenta
Email: [email protected]
Title No.: FWVE-775230027-SA
TO: CITY OF GOLETA
130 CREMONA DRIVE, SUITE B
Goleta, CA 93117
Attn: CLAUDIA DATO
Ref. No.: Lot 17
PROPERTY ADDRESS(ES): LOT 7, BLOCK 4 OF ELLWOOD ACRES #2, Goleta, CA EFFECTIVE DATE: August 21, 2023 at 07:30 AM
The form of policy or policies of title insurance contemplated by this report is:

CLTA Standard Coverage Policy 1990 (04-08-14)

1. THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS:

A Fee

2. TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN:

County of Santa Barbara

3. THE LAND REFERRED TO IN THIS REPORT IS DESCRIBED AS FOLLOWS:

SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF
9 EXHIBIT "A"
Legal Description
CLTA Preliminary Report Form - Modified (11.17.06) Printed: 08.31.23 @ 03:56 PM by SA SCA0002402.doc / Updated: 08.09.23 3 CA-CT-FWVE-02180.054775-SPS-1-23-FWVE-775230027 For APN/Parcel ID(s): None

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF GOLETA, COUNTY OF SANTA BARBARA, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

Lot 7 in Block 4 of Ellwood Acres No. 2, as shown on a map recorded in Book 15, Pages 155 and 156 of Maps, records of Santa Barbara, California.
10 Title No.: FWVE-775230027-SA
CLTA Preliminary Report Form - Modified (11.17.06) Printed: 08.31.23 @ 03:56 PM by SA SCA0002402.doc / Updated: 08.09.23 4 CA-CT-FWVE-02180.054775-SPS-1-23-FWVE-775230027

AT THE DATE HEREOF, EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS FOLLOWS:

1. Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes to be levied for the fiscal year 2023-2024.

2. Covenants, conditions and restrictions contained in the deed from Los Angeles First National Trust and Savings Bank to Frank Strehle, et ux., dated October 13, 1928 and recorded Octobwe3r 13, 1928 in Book 150, Page 357 of Official Records of said county.

3. Conditions and restrictions contained in the deed from Frank Strehle, et ux., to B.W. Hake dated March 18, 1929 and filed for record March 22, 1929 as Instrument No. 3384 in Book 150, Page 379 of Official Records in the office of the County Recorder of said County.

END OF EXCEPTIONS
11 Title No.: FWVE-775230027-SA
CLTA Preliminary Report Form - Modified (11.17.06) Printed: 08.31.23 @ 03:56 PM by SA SCA0002402.doc / Updated: 08.09.23 5 CA-CT-FWVE-02180.054775-SPS-1-23-FWVE-775230027 NOTES

END OF NOTES
12 Wire Fraud Alert
Original Effective Date: 5/11/2017
Current Version Date: 5/11/2017 FWVE-775230027 - WIRE0016 (DSI Rev. 12/07/17) TM and © Fidelity National Financial, Inc. and/or an affiliate. All rights reserved

WIRE FRAUD ALERT
This Notice is not intended to provide legal or professional advice.

If you have any questions, please consult with a lawyer.

All parties to a real estate transaction are targets for wire fraud and many have lost hundreds of thousands of dollars because they simply relied on the wire instructions received via email, without further verification. If funds are to be wired in conjunction with this real estate transaction, we strongly recommend verbal verification of wire instructions through a known, trusted phone number prior to sending funds.

In addition, the following non-exclusive self-protection strategies are recommended to minimize exposure to possible wire fraud.
 NEVER RELY on emails purporting to change wire instructions. Parties to a transaction rarely change wire instructions in the course of a transaction.
 ALWAYS VERIFY wire instructions, specifically the ABA routing number and account number, by calling the party who sent the instructions to you. DO NOT use the phone number provided in the email containing the instructions, use phone numbers you have called before or can otherwise verify. Obtain the number of relevant parties to the transaction as soon as an escrow account is opened. DO NOT send an email to verify as the email address may be incorrect or the email may be intercepted by the fraudster.  USE COMPLEX EMAIL PASSWORDS that employ a combination of mixed case, numbers, and symbols.

Make your passwords greater than eight (8) characters. Also, change your password often and do NOT reuse the same password for other online accounts.
 USE MULTI-FACTOR AUTHENTICATION for email accounts. Your email provider or IT staff may have specific instructions on how to implement this feature.

For more information on wire-fraud scams or to report an incident, please refer to the following links:

Federal Bureau of Investigation: Internet Crime Complaint Center:
http://www.fbi.gov
http://www.ic3.gov
13 Privacy Statement Printed: 08.31.23 @ 03:56 PM by SA SCA0002402.doc ----FWVE-775230027

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16 ATTACHMENT ONE
Attachment One (11/04/22)

CALIFORNIA LAND TITLE ASSOCIATION
STANDARD COVERAGE POLICY - 1990 (11-09-18)

EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of:

1. (a) Any law, ordinance or governmental regulation (including but not limited to building or zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien, or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy.
(b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy.

2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge.

3. Defects, liens, encumbrances, adverse claims or other matters:
(a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant;
(b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy;
(c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy.

4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated.

5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law.

6. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws.

EXCEPTIONS FROM COVERAGE - SCHEDULE B, PART I
This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of:

1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records.

Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records.

2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof.

3. Easements, liens or encumbrances, or claims thereof, not shown by the public records.

4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records.

5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records.

6. Any lien or right to a lien for services, labor or material unless such lien is shown by the public records at Date of Policy.

EXCEPTIONS FROM COVERAGE - SCHEDULE B, PART II
(Variable exceptions such as taxes, easements, CC&R’s, etc., are inserted here ) 17 ATTACHMENT ONE
(CONTINUED)
Attachment One (11/04/22)

CALIFORNIA LAND TITLE ASSOCIATION
STANDARD COVERAGE OWNER'S POLICY (02-04-22)

EXCLUSIONS FROM COVERAGE
The following matters are excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys’ fees, or expenses that arise by reason of:

1. a. any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) that restricts, regulates, prohibits, or relates to:
i. the occupancy, use, or enjoyment of the Land;
ii. the character, dimensions, or location of any improvement on the Land; iii. the subdivision of land; or
iv. environmental remediation or protection.
b. any governmental forfeiture, police, regulatory, or national security power. c. the effect of a violation or enforcement of any matter excluded under Exclusion 1.a. or 1.b.

Exclusion 1 does not modify or limit the coverage provided under Covered Risk 5 or 6.

2. Any power of eminent domain. Exclusion 2 does not modify or limit the coverage provided under Covered Risk 7.

3. Any defect, lien, encumbrance, adverse claim, or other matter:
a. created, suffered, assumed, or agreed to by the Insured Claimant; b. not Known to the Company, not recorded in the Public Records at the Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy;
c. resulting in no loss or damage to the Insured Claimant; d. attaching or created subsequent to the Date of Policy (Exclusion 3.d. does not modify or limit the coverage provided under Covered Risk 9 or 10); or
e. resulting in loss or damage that would not have been sustained if consideration sufficient to qualify the Insured named in Schedule A as a bona fide purchaser had been given for the Title at the Date of Policy.

4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights law, that the transaction vesting the Title as shown in Schedule A is a:
a. fraudulent conveyance or fraudulent transfer;
b. voidable transfer under the Uniform Voidable Transactions Act; or c. preferential transfer:
i. to the extent the instrument of transfer vesting the Title as shown in Schedule A is not a transfer made as a contemporaneous exchange for new value; or
ii. for any other reason not stated in Covered Risk 9.b.

5. Any claim of a PACA-PSA Trust. Exclusion 5 does not modify or limit the coverage provided under Covered Risk 8.

6. Any lien on the Title for real estate taxes or assessments imposed or collected by a governmental authority that becomes due and payable after the Date of Policy.

Exclusion 6 does not modify or limit the coverage provided under Covered Risk 2.b. 7 Any discrepancy in the quantity of the area, square footage, or acreage of the Land or of any improvement to the Land.

EXCEPTIONS FROM COVERAGE
Some historical land records contain Discriminatory Covenants that are illegal and unenforceable by law. This policy treats any Discriminatory Covenant in a document referenced in Schedule B as if each Discriminatory Covenant is redacted, repudiated, removed, and not republished or recirculated. Only the remaining provisions of the document are excepted from coverage.

This policy does not insure against loss or damage and the Company will not pay costs, attorneys’ fees, or expenses resulting from the terms and conditions of any lease or easement identified in Schedule A, and the following matters:

PART I

1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.

2. Any facts, rights, interests, or claims that are not shown by the Public Records at Date of Policy but that could be (a) ascertained by an inspection of the Land, or (b) asserted by persons or parties in possession of the Land.

3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records at Date of Policy.

4. Any encroachment, encumbrance, violation, variation, easement, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records at Date of Policy.

6. Any lien or right to a lien for services, labor, material or equipment unless such lien is shown by the Public Records at Date of Policy.

PART II
(Variable exceptions such as taxes, easements, CC&R’s, etc., are inserted here ) 18 ATTACHMENT ONE
(CONTINUED)
Attachment One (11/04/22)
CLTA/ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (7-01-21)

EXCLUSIONS FROM COVERAGE
The following matters are excluded from the coverage of this policy and We will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:

1. a. any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) that restricts, regulates, prohibits, or relates to:
i. the occupancy, use, or enjoyment of the Land;
ii. the character, dimensions, or location of any improvement on the Land; iii. the subdivision of land; or
iv. environmental remediation or protection.
b. any governmental forfeiture, police, or regulatory, or national security power. c. the effect of a violation or enforcement of any matter excluded under Exclusion 1.a. or 1.b.

Exclusion 1 does not modify or limit the coverage provided under Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23, or 27.

2. Any power to take the Land by condemnation. Exclusion 2 does not modify or limit the coverage provided under Covered Risk 17.

3. Any defect, lien, encumbrance, adverse claim, or other matter:
a. created, suffered, assumed, or agreed to by You;
b. not Known to Us, not recorded in the Public Records at the Date of Policy, but Known to You and not disclosed in writing to Us by You prior to the date You became an Insured under this policy; c. resulting in no loss or damage to You;
d. attaching or created subsequent to the Date of Policy (Exclusion 3.d. does not modify or limit the coverage provided under Covered Risk 5, 8.f., 25, 26, 27, 28, or 32); or
e. resulting in loss or damage that would not have been sustained if You paid consideration sufficient to qualify You as a bona fide purchaser of the Title at the Date of Policy.

4. Lack of a right:
a. to any land outside the area specifically described and referred to in Item 3 of Schedule A; and b. in any street, road, avenue, alley, lane, right-of-way, body of water, or waterway that abut the Land.

Exclusion 4 does not modify or limit the coverage provided under Covered Risk 11 or 21.

5. The failure of Your existing structures, or any portion of Your existing structures, to have been constructed before, on, or after the Date of Policy in accordance with applicable building codes. Exclusion 5 does not modify or limit the coverage provided under Covered Risk 14 or 15.

6. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights law, that the transfer of the Title to You is a:
a. fraudulent conveyance or fraudulent transfer;
b. voidable transfer under the Uniform Voidable Transactions Act; or c. preferential transfer:
i. to the extent the instrument of transfer vesting the Title as shown in Schedule A is not a transfer made as a contemporaneous exchange for new value; or
ii. for any other reason not stated in Covered Risk 30.

7. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence.

8. Negligence by a person or an entity exercising a right to extract or develop oil, gas, minerals, groundwater, or any other subsurface substance.

9. Any lien on Your Title for real estate taxes or assessments, imposed or collected by a governmental authority that becomes due and payable after the Date of Policy. Exclusion 9 does not modify or limit the coverage provided under Covered Risk 8.a or 27.

10. Any discrepancy in the quantity of the area, square footage, or acreage of the Land or of any improvement to the Land.

LIMITATIONS ON COVERED RISKS
Your insurance for the following Covered Risks is limited on the Owner’s Coverage Statement as follows:
• For Covered Risk 16, 18, 19 and 21 Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A.

The deductible amounts and maximum dollar limits shown on Schedule A are as follows:

Your Deductible Amount
Our Maximum Dollar Limit of Liability
Covered Risk 16: 1.00% of Policy Amount Shown in Schedule A or $2,500.00 (whichever is less)
$ 10,000.00
Covered Risk 18: 1.00% of Policy Amount Shown in Schedule A or $5,000.00 (whichever is less)
$ 25,000.00
Covered Risk 19: 1.00% of Policy Amount Shown in Schedule A or $5,000.00 (whichever is less)
$ 25,000.00
Covered Risk 21: 1.00% of Policy Amount Shown in Schedule A or $2,500.00 (whichever is less)
$ 5,000.00
19 ATTACHMENT ONE
(CONTINUED)
Attachment One (11/04/22)
CLTA/ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (12-02-13)

EXCLUSIONS
In addition to the Exceptions in Schedule B, You are not insured against loss, costs, attorneys' fees, and expenses resulting from:

1. Governmental police power, and the existence or violation of those portions of any law or government regulation concerning:
a. building;
b. zoning;
c. land use;
d. improvements on the Land;
e. land division; and
f. environmental protection.

This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23 or 27.

2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion does not limit the coverage described in Covered Risk 14 or 15.

3. The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered Risk 17.

4. Risks:
a. that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they are recorded in the Public Records at the Policy Date; c. that result in no loss to You; or
d. that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or 28.

5. Failure to pay value for Your Title.

6. Lack of a right:
a. to any land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land.

This Exclusion does not limit the coverage described in Covered Risk 11 or 21.

7. The transfer of the Title to You is invalid as a preferential transfer or as a fraudulent transfer or conveyance under federal bankruptcy, state insolvency, or similar creditors’ rights laws.

8. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake or subsidence.

9. Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances.

LIMITATIONS ON COVERED RISKS
Your insurance for the following Covered Risks is limited on the Owner’s Coverage Statement as follows:
• For Covered Risk 16, 18, 19 and 21, Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A.

The deductible amounts and maximum dollar limits shown on Schedule A are as follows:

Your Deductible Amount
Our Maximum Dollar Limit of Liability
Covered Risk 16: 1.00% of Policy Amount Shown in Schedule A or $2,500.00 (whichever is less)
$ 10,000.00
Covered Risk 18: 1.00% of Policy Amount Shown in Schedule A or $5,000.00 (whichever is less)
$ 25,000.00
Covered Risk 19: 1.00% of Policy Amount Shown in Schedule A or $5,000.00 (whichever is less)
$ 25,000.00
Covered Risk 21: 1.00% of Policy Amount Shown in Schedule A or $2,500.00 (whichever is less)
$ 5,000.00
20 ATTACHMENT ONE
(CONTINUED)
Attachment One (11/04/22)
ALTA OWNER’S POLICY (07-01-2021)

EXCLUSIONS FROM COVERAGE
The following matters are excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:

Exclusion 1 does not modify or limit the coverage provided under Covered Risk 5 or 6.

2. Any power of eminent domain. Exclusion 2 does not modify or limit the coverage provided under Covered Risk 7.

4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights law, that the transaction vesting the Title as shown in Schedule A is a:
a. fraudulent conveyance or fraudulent transfer;
b. voidable transfer under the Uniform Voidable Transactions Act; or c. preferential transfer:
i. to the extent the instrument of transfer vesting the Title as shown in Schedule A is not a transfer made as a contemporaneous exchange for new value; or
ii. for any other reason not stated in Covered Risk 9.b.

5. Any claim of a PACA-PSA Trust. Exclusion 5 does not modify or limit the coverage provided under Covered Risk 8.

6. Any lien on the Title for real estate taxes or assessments, imposed or collected by a governmental authority that becomes due and payable after the Date of Policy. Exclusion 6 does not modify or limit the coverage provided under Covered Risk 2.b.

7. Any discrepancy in the quantity of the area, square footage, or acreage of the Land or of any improvement to the Land.

This policy does not insure against loss or damage and the Company will not pay costs, attorneys' fees, or expenses resulting from the terms and conditions of any lease or easement identified in Schedule A, and the following matters:

NOTE: The 2021 ALTA Owner’s Policy may be issued to afford either Standard Coverage or Extended Coverage. In addition to variable exceptions such as taxes, easements, CC&R’s, etc., the Exceptions from Coverage in a Standard Coverage policy will also include the Western Regional Standard Coverage Exceptions listed as 1 through 7 below:

2. Any facts, rights, interests, or claims that are not shown by the Public Records at Date of Policy but that could be (a) ascertained by an inspection of the Land or (b) asserted by persons or parties in possession of the Land.

3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records at Date of Policy.

6. Any lien or right to a lien for services, labor, material or equipment unless such lien is shown by the Public Records at Date of Policy.

EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:

1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to
(i) the occupancy, use, or enjoyment of the Land;
(ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or
(iv) environmental protection;
or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5.
(b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6.

2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.

3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy;
(c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 9 and 10); or
(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title.

4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction vesting the Title as shown in Schedule A, is
(a) a fraudulent conveyance or fraudulent transfer; or
(b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy.

5. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A.

EXCEPTIONS FROM COVERAGE
This policy does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees, or expenses that arise by reason of:

NOTE: The 2006 ALTA Owner’s Policy may be issued to afford either Standard Coverage or Extended Coverage. In addition to variable exceptions such as taxes, easements, CC&R’s, etc., the Exceptions from Coverage in a Standard Coverage policy will also include the Western Regional Standard Coverage Exceptions listed below as 1 through 7 below:

3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records at Date of Policy.

6. Any lien or right to a lien for services, labor, material or equipment unless such lien is shown by the Public Records at Date of Policy.]

7. Any claim to (a) ownership of or rights to minerals and similar substances, including but not limited to ores, metals, coal, lignite, oil, gas, uranium, clay, rock, sand, and gravel located in, on, or under the Land or produced from the Land, whether such ownership or rights arise by lease, grant, exception, conveyance, reservation, or otherwise; and (b) any rights, privileges, immunities, rights of way, and easements associated therewith or appurtenant thereto, whether or not the interests or rights excepted in (a) or (b) appear in the Public Records or are shown in Schedule B.
22 Notice of Available Discounts
Notice of Available Discounts Printed: 08.31.23 @ 03:56 PM by SA SCA0002402.doc / Updated: 07.10.19 ----FWVE-775230027
Pursuant to Section 2355.3 in Title 10 of the California Code of Regulations Fidelity National Financial, Inc. and its subsidiaries ("FNF") must deliver a notice of each discount available under our current rate filing along with the delivery of escrow instructions, a preliminary report or commitment. Please be aware that the provision of this notice does not constitute a waiver of the consumer's right to be charged the filed rate. As such, your transaction may not qualify for the below discounts.

You are encouraged to discuss the applicability of one or more of the below discounts with a Company representative. These discounts are generally described below; consult the rate manual for a full description of the terms, conditions and requirements for such discount. These discounts only apply to transactions involving services rendered by the FNF Family of Companies. This notice only applies to transactions involving property improved with a one-to-four family residential dwelling.

Not all discounts are offered by every FNF Company. The discount will only be applicable to the FNF Company as indicated by the named discount.

FNF Underwritten Title Companies
Underwritten by FNF Underwriters
CTC - Chicago Title Company CTIC - Chicago Title Insurance Company CLTC - Commonwealth Land Title Company CLTIC - Commonwealth Land Title Insurance Company FNTC - Fidelity National Title Company of California FNTIC - Fidelity National Title Insurance Company FNTCCA - Fidelity National Title Company of California FNTIC - Fidelity National Title Insurance Company TICOR - Ticor Title Company of California CTIC - Chicago Title Insurance Company LTC - Lawyer's Title Company CLTIC - Commonwealth Land Title Insurance Company SLTC - ServiceLink Title Company CTIC - Chicago Title Insurance Company Available Discounts

DISASTER LOANS (CTIC, CLTIC, FNTIC)
The charge for a Lender's Policy (Standard or Extended coverage) covering the financing or refinancing by an owner of record, within twenty-four (24) months of the date of a declaration of a disaster area by the government of the United States or the State of California on any land located in said area, which was partially or totally destroyed in the disaster, will be fifty percent (50%) of the appropriate title insurance rate.

CHURCHES OR CHARITABLE NON-PROFIT ORGANIZATIONS (CTIC, FNTIC) On properties used as a church or for charitable purposes within the scope of the normal activities of such entities, provided said charge is normally the church's obligation the charge for an owner's policy shall be fifty percent (50%) to seventy percent (70%) of the appropriate title insurance rate, depending on the type of coverage selected. The charge for a lender's policy shall be forty percent (40%) to fifty percent (50%) of the appropriate title insurance rate, depending on the type of coverage selected. 23 24
ATTACHMENT 3
Revenue Neutrality Agreement with County of
Santa Barbara
, City of Goleta Resolution No. 02-02
25 RESOLUTION NO. 02-02

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

GOLETA, CALIFORNIA, RATIFYING AND AFFIRMING A

REVENUE NEUTRALITY AGREEMENT WITH THE COUNTY

OF SANTA BARBARA AND ACCEPTING TERMS AND

CONDITIONS OF APPROVAL IMPOSED BY THE COUNTY OF

SANTA BARBARA LOCAL AGENCY FORMATION

COMMISSION RELATING TO REVENUE NEUTRALITY
WHEREAS, on November 29, 1999, Cynthia Brock, Jack Hawxhurst and Jonny Wallis ( collectively the "Chief Proponents") submitted an application for the incorporation of the City of Goleta.

WHEREAS, pursuant to Califon1ia Goven1ment Code Section 56815, incorporation of new cities requires an exchange of both revenue and responsibility for service delivery between the affected county and the proposed city; and WHEREAS, under Gove1nment Code Section 56815, the Local Agency Formation Commission ("LAFCO") of the County of Santa Barbara may not approve the incorporation of the City unless it finds either ( 1) pursuant to Gove1nment Code Section 568 l 5(b ), that revenues cuffently received by the County which would accrue to the City are substantially equal to the expenditures cmTently made by the County for those services which will be assumed by the City, (2) pursuant to Gove1nment Code Subsection 56815( c )(1 ), that the County agrees to a transfer of revenues without regard to the transfer of service responsibility, or (3) pursuant to Goven1ment Code Subsection 56815(c)(2), that the County agrees to an alten1ative transfer of revenues and service responsibility; and
WHEREAS, pursuant to Goven1ment Code Section 56800 LAFCO caused to be prepared a Con1prehensive Fiscal Analysis of the proposed incorporation of Goleta (the "CF A") to serve as the basis for a revenue neutrality agreement; and WHEREAS, based upon the CF A and negotiations between the County and the Chief Petitioners, the County agreed that the Revenue Neutrality Agreement attached hereto as Exhibit "A" (the "Agreement") will 111itigate the fiscal impacts of the incorporation of the City to a level acceptable to the County; and WHEREAS, on April 18, 2001, LAFCO adopted Resolution No. 99-20 also attached hereto as "Exhibit A" (the "LAFCO Resolution") approving the proposed RIV #75608 v2 -1-
26 incorporation of the City and finding pursuant to Goven1ment Code Subsections 56815(c)(l) and (2) as follows: (1) that the County has agreed to the incorporation, (2) that the approval and execution of the Agreement and the lump-sum payments, installment payments, revenue sharing and other terms and conditions set fmih therein adequately mitigate the negative fiscal effects of the incorporation on the County, and (3) that but for the conditions contained in the Agreen1ent, that LAFCO would be unable to make the required findings under Subsection 56815(c) and approve the incorporation; and (4) that the Agreement is integral to LAFCO's deten11inations approving the incorporation; and
WHEREAS, under Section 30(B)(5) of the LAFCO Resolution, the express terms of the Agreen1ent were set forth as independent legislative enactments of LAFCO; and
WHEREAS, Section 1.8 of the LAFCO Resolution provides that the ten11s of the Agreement take effect upon certification of the incorporation election without further action of any paiiy; and
WHEREAS, the affirmative vote of the people was certified by action of the County on November 21, 2001 ; and
WHEREAS, although it is not obligated to do so, the City wishes to ratify, affirm and accept the ten11s and conditions of the Agreement and the conditions imposed by LAFCO in the LAFCO Resolution.

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

SECTION 1. The City Council hereby ratifies, affin11s and accepts the terms and conditions set forth in the Revenue Neutrality Agreement and LAFCO Resolution both of which are attached hereto as Exhibit "A" and incorporated herein by this reference.

SECTION 2.
resolution.

RIV #75608 v2
The City Clerk shall certify as to the adoption of this -2-
27 PASS ED, APPROVED, AND ADOPTED this 1st day of February 2002.

T CONNELL, MAYOR
ATTEST:

E~~

INTERIM CITY CLERK
APPROVED AS TO FORM:

RIV #75608 v2
28 STATE OF CALIFORNIA )
COUNTY OF SANTA BARBARA ) ss.

CITY OF GOLETA )
I, EDWARD WOHLENBERG, Interim City Clerk of the City of Goleta, California, DO HEREBY CERTIFY that the foregoing Resolution No. 02-02 was duly adopted by the City Council of the City of Goleta at a regular meeting, held on the 1st day of February, 2002, by the following vote of the Council:

AYES:

NOES:

COUNCILMEMBERS BLOIS, BROCK, HA WXHURST,
WALLIS

MAYOR CONNELL
NONE
ABSENT: NONE
~ ,
(SEAL) ~
EDWARD w-OHLENBERG

INTERIM CITY CLERK
29 REVENUE NEUTRALITY AGREEMENT BY AND BETWEEN

THE COUNTY OF SANT A BARBARA AND THE CITY OF GO LET A
THIS REVENUE NEUTRALITY AGREEMENT ('·Agreement .. ) is entered into by and between THE COUNTY OF SANTA BARBARA. a subdivision of the State of California ('·County .. ). the undersigned petitioners (the --chief Petitioners .. ) and upon incorporation. THE CITY OF GO LET A.. a municipal corporation ("City'").

1.0 RECITALS, This Agreement is entered into with reference to the following facts:

1.1 On November 29, 1999, Cynthia Brock, Jack Hawxhurst and Jonny Wallis (collectively the Chief Petitioners) submitted an application proposing the incorporation of the City (the "Incorporation") which was certified by the Local Agency Formation Commission r·LAFCO") on December 28, 1999.

1.2 California Government Code Section 56845 expresses the intent of the State Legislature that any incorporation should result in a similar exchange of both revenue and responsibility for service delivery between the affected county and the proposed city.

1.3 Under Section 56845, LAFCO may not approve the Incorporation unless it finds either ( 1) pursuant to Government Code Subsection 56845(b), that revenues currently received by the County which would accrue to the City are substantially equal to the expenditures currently made by the County for those services which will be assumed by the City, (2) pursuant to Government Code Subsection 56845(c)(l), that the County agrees to a transfer of revenues without regard to the transfer of service responsibilities. or (3) pursuant to Government Code Subsection 56845(c)(2), that the County agrees to an alternative transfer of revenues and service responsibility.

1.4 Pursuant to Government Code Section 56833.1, LAFCO caused to be prepared a Comprehensive Fiscal Analysis of the Proposed Incorporation of the City of Goleta (the •·Cf A .. ) to serve as the basis for determining fiscal feasibility and revenue neutrality negotiations between the County and the Chief Petitioners.

1.5 Based upon a careful review of the CF A, which includes revenue projections for the area included in the Incorporation, the present and projected costs of law enforcement, road maintenance, and other County services transferred to the City, and the costs of services retained by the County, the County and the Chief Petitioners have agreed upon the terms herein that would take effect upon incorporation of the City and that would mitigate the fiscal impacts of the Incorporation on the County to a level acceptable to the County.

1.6 The Santa Barbara Board of Supervisors and the Chief Petitioners have agreed to the transfer of funds and responsibilities set forth in this Agreement and to the submission of these terms to the electorate as part of the incorporation process as provided by law.

A
30 { -

1.7 In approving submission of the proposed Incorporation to the electorate. upon the recommendation of the Executive Officer. LAFCO found pursuant to Government Code Subsection 56845(c) as follows: (l) that the approval and execution of this Agreement by the County. and the lump-sum payments. installment payments. and other terms and conditions set forth herein adequately mitigate the negative fiscal effects of the Incorporation on the County, (2) that but for the conditions contained herein. LAFCO would be unable to make the required findings under subsection 56845(c) and approve the Incorporation; and (3) that this Agreement is integral to LAFCO's determinations approving the Incorporation under Government Code Sections 56851, 56852, 56375, and 56375.1.

1.8 Approval of this Agreement by an affirmative vote of the people casting votes at the incorporation election held in accord with all applicable provisions of California law shall be binding on the City. The ternlS of this Agreement shall take effect upon certification of the results of that successful incorporation election without further action by any party.

2.0 DEFINITIONS. In this Agreement, unless the context otherwise requires:

2.1 "Act'' means the Cortese-Knox Local Government Reorganization Act of 1985.

2.2 "Incorporation" means the incorporation, fonnation, creation, and establishment of a city with corporate powers as defined in the Cortese-Knox Local Government Reorganization Act of 1985, Section 56043.

2.3 "Effective Date" means the date on which the City comes into existence under California law, which shall be February 1, 2001.

2.4 "Mitigation Period" means the first ten complete fiscal years commencing on July

1. and ending on June 30 of each year following the Effective Date.

2.5 "Transition Period" means the period commencing with the Effective date and ending on June 30, 2002.

2.6 .. Fiscal Year" means July 1 through June 30.

3.0 EXTENSION OF SERVICES.

3.1 3.2
Service Provision. The County shall continue to provide existing municipal services, including but not limited to law enforcement services, to the City from the Effective Date through June 30, 2002 at or above the Current Level of Service provided to the proposed incorporation area. Such services may be extended or truncated by agreement of the parties during this period of time.

Long-Term Contracting for Future Services. The County will extend these services from June 30, 2002 and/or provide an enhanced level of services on tern1S mutually agreed upon by contract between the City and the County. The 2 31
City agrees initially to contract with the County for Sheriff. Public Works and Park services. Such contracts shall be for an initial term of at least five years.

3.3 Transition Year Costs Waiver. The County waives reimbursement of Transition Year costs of services that would normally be reimbursed by the City up to a maximum amount of $2,500,000 for costs attributable to general fund resources and up to a maximum amount of $1,500,000 for road fund expenditures.

4.0 REVENUE TRANSFERS.

4.1 Set-aside Funds. An accounting for the purposes of distribution shall be given of all funds set aside for use in the proposed incorporated area, including but not limited to Quimby and park fees, Measure D, GTIP, and Community Service Area ("CSA") 3 funds, state and federal grant amounts, and fees paid to the County for services not yet delivered.

4.2 Mitigation Obligation. In order for LAFCO to make the revenue neutrality findings under Government Code subsection 56845(c) as set forth in Section 1.7 hereof, the parties understand and agree as follows:

4.2.1 · After incorporation of the City, the County will continue to have ongoing obligations to provide public services to the City and its residents and that such services are reasonably estimated to amount to $3,300,000 during the fist complete fiscal year following incorporation. In order to insure that the effect of incorporation is neutral as to the County, the parties agree to the following allocations of tax revenues in perpetuity:
(i) Property tax generated by property located with.in the City and which would otherwise accrue entirely to the City, commencing on the Effective Date will be shared equally by the parties; (ii) 30% of the 1% retail sales tax revenues allocable to the City shall be allocated to the County.

4.2.2 During the Mitigation Period tax revenues will be allocated as follows:
(i) An additional 20% of the l % retail sales tax revenues allocable to the City shall be allocated to the County;
(ii) 40% of the transient occupancy tax ("TOT") generated by TOT taxpayers which exist within the City and are in existence on the Effective Date at the TOT rate then in effect shall be allocated to the County. All TOT revenues generated by any TOT taxpaying entities whose facilities are constructed after the Effective Date or that is derived from any increase in the TOT rate on existing and future taxpayers shall be allocated 100% to the City.
3 32

4.2.3 During the Transition Year tax revenues will be allocated in the same manner as during the Mitigation Period, as detailed in paragraph 4.2.2 of this agreement on a pro-rated basis.

4.2.4 During the Transition Year the County will pay to the City $1,500,000. In the eleventh complete fiscal year of the City's existence the City will pay $1.500.000 to the County.

4.3 Pre-payment. The City may pre-pay the amount deferred to fiscal year 11 as set forth in paragraph 4.2.4 of this agreement without penalty on terms mutually agreed upon by the City and the County.

4.4 Treasurer -Tax Collector and administrative services. During the transition year and the mitigation period, County's Treasurer-Tax Collector will collect, allocate and distribute the TOT referred to in Paragraph 4.2.2 of this agreement at no charge to the City.

4.5 Transfer ofreal property. The County will transfer to the City all real property currently held by the County within the City boundaries with the following exceptions:

4.5. l Fir~ Station 11; .

4.5.2 An easement for Fire Station 14;

4.5.3 An easement for a prospective fire station at Santa Barbara Shores Park. should the County Fire District locate a fire station there;

4.5.4 All Flood Control District real property.

4.6 Transfer of park property. Upon transfer of all park real property from the County to the City pursuant to paragraph 4.5 of this agreement, all fixtures, equipment and personal property located on the park real property shall transfer to the City with that park real property.

4. 7 Home, McKinney and Community Development Block Grant , .. CDBG"). The County currently contracts for housing funds with the Home, McKinney and CDBG programs. The City shall participate in the Home, McKinney and CDBG consortia at least through completion of the programs' current contracts.

4.8 CSA3. The City shall detach from CSA3 and as a result shall receive the proceeds from assessments for lighting and library services previously received by CSA3 together with the obligation to provide those services. The City shall also receive the property tax previously received by CSA3.

4.9 Goleta Community Center. The County and the City will work cooperatively to obtain transfer of the sublease of the Goleta Community Center from the County to the City.
4 33

4.10 Santa Barbara Shores Park. Upon transfer of park real property pursuant to paragraph 4.5 of this agreement the City shall assume payment responsibility for the existing County Certificate of Participation associated with Santa Barbara Shores in accordance with Exhibit A attached to this agreement and incorporated by this reference. City" s first payment will be made on or before March 1, 2002.

All payments will be made to: Auditor-Controller, County of Santa Barbara, P.O.

Box 39. Santa Barbara, CA 93102.

4.11 Redevelopment agencies ("RDAs"). The City shall establish an RDA. All assets and liabilities of the County's Old Town RDA project area shall transfer from the County RDA to the City RDA. The City shall not expand the boundaries of the Old Town RDA project area, nor shall the City establish any new project area. during the Transition Year or the Mitigation Period. The City shall not be entitled to the property tax increment associated with the real property known as Storke Ranch at any time. The City shall assume sole planning authority for the real property known as Storke Ranch.

4.12 Change in property tax allocation factors. In the event that the property taxes currently received by Goleta West Sanitary District are reallocated, City and County ·shall share in the manner set forth in this paragraph. As an incentive for the future annexation of the neighborhood known as Isla Vista, any increased property tax revenues that may result from a change in the allocation factor ("the revenues") shall be shared, 70% to the County and 30% to the City, so long as the City boundaries do not include Isla Vista. In the event that the City annexes Isla Vista, the City shall be entitled to 70% of the revenues and the County shall be entitled to 30%. County's share of the revenues shall be transferred in its entirety to the County Fire District.

4.13 Startup loan. The parties agree that the costs of professional legal and administrative services from the date of the incorporation election to the Effective Date are legitimate expenses of the City. In order to facilitate the incorporation process, County agrees to advance up to $100,000 at the Treasuer's pool interest rate during the period between the incorporation election and the effective date for professional and administrative services necessary to complete the process of incorporation subject to reimbursement from the City during the Transition Year.

5.0 DEFAULTS AND REMEDIES.

5.1 Events of Default. A default under this Agreement shall be deemed to have occurred upon the happening of one or more of the following events or conditions:

5.1.1 One party to this Agreement is proven to have knowingly made a material false representation to the other.
5 .1.2 The County fails to provide the services provided for in Section 3. 0 of this Agreement.
5 34

5.2 5.1.3 The City or County fails to make any payment due hereunder.

5.1.4 Any other act or omission by City or County which materially interferes with the terms of this Agreement.

Procedure upon Default.

5.2.1 Upon the occurrence of default by the other party. the City or County shall provide the other party thirty (30) days written notice specifying the nature of the alleged default and. when appropriate, the manner in which said default may be satisfactorily cured. After proper notice to the other party of the occurrence of default by that party and the expiration of said thirty (30) day cure period without substantial cure, either party may terminate this Agreement. In the event that City's or County's default is not subject to cure within the thirty (30) day cure period but is subject to cure within a longer period of time. City or County shall be deemed not to remain in default in the event that City or County commences to cure within such thirty (30) day cure period and diligently prosecutes such cure to completion. Failure to delay in giving notice of any default shall not constitute a waiver of any default, nor shall it change the time of default.

Notwithstanding any other provision of this Agreement, the City and County reserve the right to formulate and propose to the other party options for curing any defaults under this Agreement for which a cure is not specified in this Agreement.

5.2.2 In the event of the City's uncured default of its obligations to make any payment due hereunder, the County may order the County Auditor to retain in a segregated escrow account for the benefit of the City any funds on hand due the City pending resolution of the default. If the escrowed amounts are sufficient to cover the costs of payments due. the County shall continue to provide all services due hereunder, pending cure or resolution of the default by judicial order or other means.

5.2.3 All other remedies at law or in equity, which are not inconsistent with the provisions of this Agreement, are available to·the City and County to pursue in the event of default.

5.3 Institution of Legal Action. In addition to any other rights or remedies, the City or the County may institute a legal action to cure, correct, or remedy any default or breach. to specifically enforce any covenants or agreements set forth in this Agreement, or to enjoin any threatened or attempted violation of the Agreement. or to obtain any remedies consistent with the purpose of this Agreement. Legal actions shall be instituted in the Superior Court of the County of Santa Barbara.

State of California.

5.4 Reallocation of Property Taxes. Should the calculation of property taxes prepared pursuant to Government Code Section 56842 be modified as a result of a court 6 35
l .
action brought pursuant to Government Code subsection 56842(h). or as a result of legislative action with retroactive application. to provide that a larger percentage be retained by the County and a smaller percentage transferred to the City than that specified by LAFCO pursuant to Government Code Section 56842 in approving the Incorporation, the City shall transf~r t~_)UilOunt of annual property tax resulting from such difference to the C~ the purpose of /
maintaining revenue neutrality pursuant to Government Code Section 56845 and this Agreement ("equalizing payment"). Should the calculation prepared pursuant to Government Code Section 56842 be modified as a result of a court action brought pursuant to Government Code subsection 56842(h), or as a result of legislative action with retroactive application. to provide that a smaller percentage be retained by the County and a larger percentage transfer to the City than that specified by LAFCO pursuant to Government Code Section 56842 in approving the Incorporation, the County shall make an equalizing payment to the City.

6.0 AMENDMENTS.

6.1 6.2
Mutual Agreement. This Agreement may be modified by written agreement of the City and the County.

Negotiation of Amendments. The parties acknowledge that circumstances may arise which may call for or require mutual good faith negotiations for the amendment of this Agreement. Without limitation due to enumeration. the parties agree to meet and confer regarding the possible mutual amendment ofthis Agreement within 30 days of the written notice by one party to the other party of the occurrence of one or more of the following:

6.2. l The passage of a statute or issuance of a legislative or executive order from a federal, state or local governmental entity that materially alters the manner in which revenues to the City or County are paid or allocated, including without limitation refund by the State of California of Education Reform Act Fund ("ERAF') monies or other monies provided as compensation for ERAF deductions.

6.2.2 Unanticipated loss of revenue to the City by circumstances outside the City's jurisdictional control, other than statute or legislative or executive Order, that materially alters the City's anticipated revenue or materially increases services costs over those anticipated in this Agreement or in the CFA.

6.2.3 Natural disasters that materially destroy City or County infrastructure to the extent that the County's ability to provide services or the City's ability to make payments would be materially impaired.

6.2.4 The discovery by the City or the County of any error or omission in the data utilized for development of the Cf A and this Agreement that materially affects the basis for the amount of payments due hereunder. or 7 36
the projection of future revenues and /or costs on which the payment schedule was based. Such errors are limited to base assumptions and inputs provided by the County and specifically exclude challenges to forecasting methods and assumptions used by LAFCO and its consultant in preparing the CF A.

Upon receipt of such written notice, the parties shall. within 30 days, ho Id at least one meeting to negotiate in good faith a mutual amendment of this Agreement.

However, nothing contained herein shall require the mutual amendment of this Agreement or authorizes the unilateral amendment hereof.

7.0 MISCELLANEOUS PROVISIONS

7.1 Rules of Construction. The singular includes the plural; the masculine gender includes the feminine; "shall" is mandatory; "may" is permissive.

7.2 Entire Agreement, Waivers, and Recorded Statement. This Agreement constitutes the entire understanding and agreement of the parties with respect to the matters set forth in this Agreement. This Agreement supersedes all negotiations or previous agreements between the County, the Chief Petitioners, GoletaNow!, and the City respecting this Agreement. All waivers of the provisions of this · Agre·ement must be in writing and signed by the appropriate authorities of the County and the City.

7.3 Incorporation of Recitals. The recitals set forth in Section 1.0 of this Agreement are part of this Agreement.

7.4 Captions. The captions of this Agreement are for convenience and reference only and shall not define, explain, modify, construe, limit, amplify, or aid in the interpretation, construction, or meaning of any of the provisions of this Agreement.

7.5 Consent. Where the consent or approval of the County or the City is required in or necessary under this Agreement, the consent or approval shall not be unreasonably withheld, delayed, or conditioned.

7.6 Covenant of Cooperation. The County and the City shall cooperate and deal with each other in good faith, and assist each other in the performance of the provisions of this Agreement.

7.7 Recording. The Clerk of the Board of Supervisors shall cause a copy of this Agreement to be recorded with the Office ofthe County Recorder of Santa Barbara County, California, within ten (10) days following the Effective Date.

7.8 Delay, Extension of Time for Performance. In addition to any specific provision of this Agreement, performance by either the County or the City of its obligations hereunder shall be excused, and the term of this Agreement extended, during any period of delay caused at any time by reason of any event beyond the control of 8 37
County or the City which prevents or delays performance by the County or the City of obligations under this Agreement, including, but not limited to, acts of God, enactment of new conflicting Federal or State laws or regulations, judicial actions such as the issuance of restraining orders and injunctions, riots. strikes, or damage to work in process by reason of fire, floods, earthquake, or other such casualties. If the County or the City seeks excuse from performance, it shall provide written notice of such delay to the other within thirty (30) days of the commencement of such delay. If the delay or default is beyond the control of the County or the City and is excused, an extension of time for such cause shall be granted in writing for the period of the enforced delay, or longer as may be mutually agreed upon.

7.9 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California.

7.10 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element.

7.11 Counterparts. This Agreement may be executed and acknowledged in multiple counterparts, each of which shall be deemed an original, but all ·of which shall constitute one (1) Agreement, binding on the parties hereto.

7.12 Severability. If any term, covenant, condition, provision or agreement contained in this Agreement is held to be invalid, void or unenforceable by any court of competent jurisdiction., the invalidity of any such term, covenant, condition., provision or agreement shall in no way affect any other term, covenant, condition. provision or agreement and the remainder of this Agreement shall still be in full force and effect.

COUNTY OF SANT A BARBARA
By _____________ _
Chair, Board of Supervisors
ATTEST:

MICHAEL F. BROWN

CLERK OF THE BOARD
By _____________ _
Deputy
(Revenue Neutrality Agreement)

CHIEF PETITIONERS
Cynthia Brock
Jack Hawxhurst
Jonny Wallis
9 38

CITY OF GO LET A
Enacted by a vote of the People on November _. 2001
ATTEST:

County Clerk-Recorder-Assessor
County of Santa Barbara
APPROVED AS TO FORM:

STEPHEN SHANE ST ARK

COUNTY COUNSEL
By _____________ _
Assistant County Counsel
chm\adminlrevc:nuc:neutdoc
10 APPROVED AS TO FORM:

LEGAL COUNSEL FOR

CHIEF PETITIONERS
39 LAFCO 99-20

RESOLUTION OF THE SANTA BARBARA LOCAL AGENCY

FORMATION COMMISSION MAKING DETERMINATIONS AND APPROVING

THE INCORPORATION OF THE CITY OFGOLETA

SUBJECT TO SPECIFIC TERMS AND CONDITIONS
WHEREAS, a proposal to incorporate the City of Goleta was filed with the Executive Officer of the Santa Barbara Local Agency Formation Commission pursuant to the Cortese/Knox Local Government Reorganization Act (Section 56000 et seq. of the Government Code: and WHEREAS, at the times and in the manner required by law the Executive Officer has given notice of the Commission·s consideration of the proposal: and WHEREAS, the Executive Officer. pursuant to Government Code section 56833.1 prepared or cause to be prepared a Comprehensive Fiscal Analysis of the proposed incorporation and has furnished a copy of this report to each person entitled to a copy; and WHEREAS. the Executive Officer. pursuant to Government Code section 56833 reviewed the proposed incorporation and prepared a report including recommendations. and has fut"9ished .a copy <?f this report to each person entitled to a copy; and WHEREAS. the Commission. on April 26. considered the proposed incorporation and the report of the Executive Officer. and considered the factors determined by the Commission to be relevant to this incorporation. including, but not limited to, the factors specified in Government Code section 56841; and
WHEREAS, the Commission heard, discussed and considered all oral and mitten testimony related to the proposal including, but not limited to, the Executive Officer's report and recommendation, the Comprehensive Fiscal Analysis, the environmental document, spheres of influence and applicable general and specific plans: and WHEREAS, this Commission heard and received all oral and written protests. objections and evidence which we. and all persons present were given an opportunity to hear and be heard with respect to the proposed incorporation and the report of the Executive Officer; and WHEREAS, the Local Agency Formation Commission finds the proposal to be in tht:! best interests of the affected area and the total organization of local governmental agencies within Santa Barbara County, and ·
WHEREAS, this resolution includes as Exhibit A, attached hereto and made a pan hereof. the ··Revenue Neutrality Agreement by and Between the County of Santa Barbara and the City of Goleta" as approved by the Board of Supervisors on March 20, 2001, ("Revenue Neutrality Agreement") and specific provisions of that agreement in the text of this resolution are denoted by parenthetical references.

LAFCO 99-20 Resolution Making Determinations Revised April I 7. 200 I l \!II!{\.
40 NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the Santa Barbara Local Agency Formation Commission as follows:

Compliance with CEOA
l. The Commission certifies that pursuant to the California Environmental Quality Act. the Commission considered the Negative Declaration for the Proposed Incorporation of the City of Goleta together with comments received during the public review process.

2. The Commission adopts the Negative Declaration attached as Exhibit B. The Commission finds on the basis of the whole record before it. including the initial study and comments received, that there is no substantial evidence that the project will have a significant effect on the environment. that the Negative Declaration reflects the Commission's independent judgment and analysis, and that it is adequate for this proposal. The Commission further finds that changes in the project description added after circulation of the Negative Declaration doe not change its conclusions or require recirculation.

3. The Negative Declaration and other documents and materials that constitute the record of proceedings upon which the Commission·s decision is based are located at the office of the Santa_ Barbara LAFCO, 105 East Anapamu Street, Santa Barbara CA 923101. The custodian of the documents is the LAFCO Executive Officer, Bob Braitman.

Findings for Incorporation

4. The Commission detennines pursuant to Government Code sections 56375.1 and 56833. I that:

A. The proposed City is expected to receive revenues sufficient to provide public services and facilities and a reasonable reserve during the first three fiscal years following incorporation; and
B. The incorporation of the proposed City is consistent with the intent of the Cortese-Knox Local Government Reorganiz.ation Act of 1985, Government Code sections 56001, 56300, 56301 and 56377 and the adopted policies of the Santa Barbara Local Agency Fonnation Commission; and
C. The Comprehensive Fiscal Analysis has been prepared and reviewed pursuant to Government Code section 5683 3 .1.

Incorporation Boundaries

5. City Boundaries - The Commission approves, subject to the tenns and conditions herein. the proposed incorporation of the City of Goleta with boundaries as described on the map attached hereto and included herein as Exhibit C and subject the terms and conditions as contained in this resolution.

LAFCO 99-20 Resolution Making Determinations Revised April 17. 200 l 2 41
Organization of the Citv Government

6. Name of the Citv - The new city shall be the City of Goleta.

7. Election of the City Council - The city shall be governed by a five-member city council elected at large.

8. Terms of office - The terms of office of the city council members shall be four years. Of the first elected legislative body, the terms of the three members of the city council with the largest popular votes shall be four years. Of the first elected legislative body. the terms of the two members of the city council with the least popular vote shall be two years.

9. Selection of mayor - It is the intent of the electorate that the tenn of the office of mayor shall be one year and that position shall be rotated among all members of the city council.

It is also intended that the city council candidate receiving the greatest number of votes during the incorporation election shall serve as the first mayor of the city, followed by the candidate who receives the next highest number of votes, and so forth, provided that a member of the city council shall not serve a second term as mayor until all members have served a first term.

10. Appointment of City staff - The city shall have a city manager and the city council shal I appoint the city manager who shall fill the positions of city clerk and city treasurer by appointment.

11. Effective Date of the Incorporation
Effective Date -The effective date of the incorporation is February 1, 2001. (RNA 2.3) Extension of Services

12. Service Provision - The County shall continue to provide existing municipal services. including but not limited to law enforcement services, to the City from the Effective Date through June 30, 2002 at or above the Current Level of Service provided to the proposed incorporation area. Such services may be extended or truncated by agreement of the parties during this period ohime. (RNA 3 .1)

13. Long-Term Contracting for Future Services - The County will extend these services from June 30, 2002 and/or provide an enhanced level of services on terms mutually agreed upon by contract between the City and the County. The City will contract with the County for Sheriff, Public Works and Park services. Such contracts shall be for an initial term of at least five years. (RNA 3.2)
LAFCO 99-20 Resolution Making Determinations Revised April 17. 200 l 3 42

14. Transition Year Costs Waiver - The County will waive reimbursement of Transition Year costs of services that would normally be reimbursed by the City up to a maximum amount of $2,500,000 for costs attributable to general fund resources and up to a maximum amount of$1.500.000 for road fund expenditures. (RNA 3.3) Citv Base Year Property Tax

15. Base vear property tax - The Commission determines that the amount of base property tax transferred to the new City pursuant to Government Code section 56375(q) and section 56842 shall be $$2,503,527 for Option 1 and $3,728,772 for Option 2.

16. 17.

Revenue Transfers.

Set-aside Funds - The County shall provide accounting for the purposes of distribution of all funds set aside for use in the proposed incorporated area. including but not limited to Quimby and park fees, Measure D, GTIP. and County Service Area (CSA) No 3 funds. state and federal grant amounts. and fees paid to the County for services not yet delivered. (RNA 4.1)
Mitigation Obligation - In order for LAFCO to make the revenue neutrality findings under Government Code subsection 56845(c) as set forth in Section 30 hereof. the parties understand and agree as follows (RNA 4.2):

A. Ongoing obligations - After incorporation of the City, the County will continue to have ongoing obligations to provide public services to the City and its residents and that such services are reasonably estimated to amount to $3,300.000 during the fist complete fiscal year following incorporation. In order to insure that the effect of incorporation is neutral as to the County, the parties agree to the following allocations of tax revenues in perpetuity (RNA 4.2.1 ):
(i) Property tax generated by property located within the City and which would otherwise accrue entirely to the City, commencing on the Effective Date will be shared equally by the parties;
(ii) 30% of the 1 % retail sales tax revenues allocable to the City shall be allocated to the County.

B. Mitigation Period Obligations - During the Mitigation Period tax revenues will be allocated as follows (RNA 4.22):
(i) An additional 20% of the 1 % retail sales tax revenues allocable to the City shall be allocated to the County;
(ii) 40% of the transient occupancy tax ("TOT") generated by TOT taxpayers which exist within the City and are in existence on the Effective Date at the TOT rate then in effect shall be allocated to the County. All TOT LAFCO 99-20 Resolution Making Determinations Revised April 17. 200 I 4 43

18. 19.

20. revenues generated by any TOT taxpaying entities whose facilities are constructed after the Effective Date or that is derived from any increase in the TOT rate on existing and future taxpayers shall be allocated 100% to the City.

C. Transition Year revenues - During the Transition Year tax revenues will be allocated in the same manner as during the Mitigation Period. as detailed m paragraph 4.2.2 of this agreement on a pro-rated basis (RNA 4.2.3).

D. Transition Year Payment - During the Transition Year the.County will pay to the City $1,500,000. In the eleventh complete fiscal year of the City" s existence the City will pay $1,500.000 to the County.

Pre-payment - The City may pre-pay the amount deferred to fiscal year 11 as set forth in paragraph 4.2.4 of the Revenue Neutrality Agreement without penalty on terms mutually agreed upon by the City and the County. (RNA 4.3)
Treasurer -Tax Collector and administrative services - During the transition period and the mitigation period, County's Treasurer-Tax Collector will collect. allocate and distribute the Transient Occupancy Tax referred to in Paragraph 4.2.2 of the Revenue Neutrality Agreement at no charge to the City. (RNA 4.4) Transfer of real property - The County will transfer to the City all real property currently held by the County within the City boundaries with the following exceptions: (RNA 4 . .5) A. Fire Station 11;
B. An easement for Fire Station 14;
C. An easement for a prospective fire station at Santa Barbara Shores Park. should the County Fire District locate a fire station there;
D. All Flood Control District real property.

21. Transfer of park property - Upon transfer of all park real property from the County to the City pursuant to paragraph 4.5 of the Revenue Neutrality Agreement, all fixtures. equipment and personal property located on the park real property shall transfer to the City with that park real property. (RNA 4.6)

22. Home, McKinney and Community Development Block Grant ("CDBG") - The County currently contracts for housing funds with the Home, McKinney and CDBG programs.

The City shall participate in the Home, McKinney and COBO consortia at least through completion of the programs' current contracts. (RNA 4.7)

23. County Service Area No. 3 (CSA 3) - The area within the City shall be detached from CSA3 concurrent with the incorporation and as a result the City shall receive (I) the LAFCO 99-20 Resolution Making Determinations Revised April I 7. 2001 5 44
proceeds from assessments for lighting and library services previously received by CSA 3 together with the obligation to provide those services and (2) the property tax previously received by CSA 3. (RNA 4.8)

24. Goleta Community Center - The County and the City will work cooperatively to obtain a transfer of the sublease of the Goleta Community Center from the County to the City. (RNA 4.8)

25. Santa Barbara Shores Park - Upon transfer of park real property pursuant to paragraph

4.5 of .this agreement the City shall assume payment responsibility for the existing County Certificate of Participation associated with Santa Barbara Shores in accordance with Exhibit A attached to the Revenue Neutrality Agreement. The City"s first payment will be made on or before March l, 2002 to the County. (RNA 4.10)

26. Redevelopment agencies - The City shall establish a Redevelopment Agency (RDA). All assets and liabilities of the County's Old Town RDA project area shall transfer from the County_ RDA to the City RDA. The City shall not expand the boundaries of the Old Town RDA project area, nor shall the City establish any new project area, during the Transition Year or the Mitigation Period. The City shall not be entitled to the property tax increment associated with the real property known as Starke Ranch except upon dissolution of the Isla Vista RDA project area. The City shall assume sole planning authority for the real property known as Starke Ranch. At such time as the Isla Vista REDA project area ceases to exist, the property tax increment associate with the real property known as Starke Ranch shall revert to the City. (RNA 4.11)

27. Change in property tax allocation factors - In the event that the property taxes currently received by Goleta West Sanitary District within boundaries of the City are reallocated. the City and County shall share in the manner set forth in this paragraph. (RNA 4.12) A. Any increased property tax revenues that may result from a change in the allocation factor ("the revenues") shall be shared, 70% to the County and 30% to the City, so long as the City boundaries do not include Isla Vista.

B. As an incentive for the future annexation of the neighborhood known as Isla Vista, in the event that the City annexes Isla Vista, the City shall be entitled to 70% of the revenues and the County shall be entitled to 30%.

C. County's share of the revenues shall be transferred in its entirety to the County Fire District.

28. Startup loan - Legal and administrative services from the date of the incorporation election to the effective date are legitimate expenses of the City. In order to facilitate the incorporation process, the County shall advance up to $100,000 at the Treasurer's pool interest rate during the period between the incorporation election and the effective date for professional and administrative services necessary to complete the process of LAFCO 99-20 Resolution Making Determinations Revised April 17. 200 l 6 45

29. incorporation subject to reimbursement from the City during the Transition Year. (RNA 4.13)
Equalizing Payment (RNAS.4)
A. Payment to County - Should the calculation of property taxes prepared pursuant to Government Code Section 56842 be modified as a result of a court action brought pursuant to Government Code subsection 56842(h), or as a result of legislative action with retroactive application, to provide that a larger percentage be retained by the County and a smaller percentage transferred to the City than that specified by LAFCO pursuant to Government Code Section 56842 in approving the Incorporation, the City shall transfer the amount of annual property tax resulting from such difference to the County for the purpose of maintaining revenue neutrality pursuant to Government Code Section 56845 and this Agreement B. Payment to City - Should the calculation prepared pursuant to Government Code Section 56842 be modified as a result of a court action brought pursuant to Government Code subsection 56842(h), or as a result of legislative action with retroactive application, to provide that a smaller percentage be retained by the County and a larger percentage transfer to the City than that specified by LAFCO pursuant to Government Code Section 56842 in approving the Incorporation, the County shall make an equalizing payment to the City.

Revenue Neutrality Findings

30. Revenue neutrality - Pursuant to Government Code section 56845, the Commission finds that:

A. Revenues currently received by the County of Santa Barbara for the incorporation area and the expenditures for service responsibilities to be transferred to the new city are not substantially equal;
B. In approving the proposed incorporation, the Commission finds pursuant to Government Code subsections 56845(c) (1) and (2) as follows:
1) That the County has agreed to the incorporation of the City of Goleta on the terms and conditions set forth in the Revenue Neutrality Agreement. 2) That the approval and execution of the Revenue Neutrality Agreement by the County and other terms and conditions set forth therein adequately mitigate the negative fiscal effects of the incorporation on the County, 3) That but for the conditions contained herein, the Commission would be unable to make the required findings under Subsection 56845(c) and approve the incorporation; and
LAFCO 99-20 Resolution Making Determinations Revised April 17. 200 I 7 46

31. 32.
4) That terms and conditions contained herein are integral to the approval of the incorporation under Government Code sections 56851. 56852. 563 75. and 56375.1.
5) That terms and conditions relating to revenue neutrality imposed by this Resolution are independent legislative enactments of the Commission.

Provisional Appropriations Limit
Provisional appropriations limit - Pursuant to Government Code section 56842.6. the provisional appropriations limit submitted for voter approval shall be $24. 100.000.

Continuation of Fees and Charges
Continuation of fees and charges - The new city shall have the authority to levy, fix and collect in the same manner previously authorized charges, fees assessments and taxes within the city boundaries, including those provided for County Service Area No. 3. and for County Service Area No. 31 if the Isla Vista area is included within the City.

Sphere oflnfluence for the City of Goleta

33. The Commission shall adopt a sphere of influence for the City of Goleta within one year of the date of incorporation. as specified in Government Code section 56426.5.

Assessed Value Within the Proposed City

34. The assessed value for property tax calculation purposes within the area of the proposed incorporation is as shown on the Comprehensive Fiscal Analysis.

Registered Voters Within the Proposed City

35. Pursuant to Government Code section 56375 (h), the number of registered voters within the proposed incorporation as shown within the Comprehensive Fiscal Analysis.

Consistency With Spheres Oflnfluence

36. The proposed incorporation is consistent with the spheres of influence of all affected local agencies.

Subseguent Proceedings

37. All subsequent proceedings in connection with this reorganiz.ation shall be conducted only in compliance with the approved boundaries set forth in the attachments and any terms and conditions specified in this resolution.

LAFCO 99-20 Resolution Making Determinations Revised April I 7, 200 I 8 47
Distribution of this Resolution

38. The Executive Officer is hereby authorized and directed to mail certified copies of this Resolution as provided in Section 56853 of the Government Code.

This resolution was adopted on _______ and is effective on the date signed by the Chair.

AYES:

NOES:

ABSTAINS:

Dated: __ _
Chair
Santa Barbara Local Agency Formation Commission
Revenue Neutrality Agreement
Negative Declaration .

Exhibit A.

Exhibit B
· Exhibit C Map of Approved City Boundaries
LAFCO 99-20 Resolution Making Determinations
9 Revised April 17. 200 I
48 49
50

Goleta City CouncilJune 18, 2024

Goleta City Council
June 18, 2024