Agenda packet, regular meeting — Santa Barbara City Council, February 15, 2022 (part 2 of 2)

4.7.5.7.4. If the City Council finds that a violation has occurred, the City Council shall direct the City Attorney to prepare the appropriate document for transmittal to the District Attorney or Grand Jury of Santa Barbara County requesting the bringing of an accusation for willful misconduct in office under Section 3060 of the Government Code of the State of California or as otherwise provided by law. In addition, the City Council may direct the City Attorney to undertake an appropriate civil action against the person accused, including, but not limited to, an action for breach of fiduciary duty.

4.7.6. Emergency Meetings. The City Council may conduct emergency meetings when authorized by The Ralph M. Brown Act under Government Code Section 54956.5. An emergency shall be defined as a work stoppage, crippling activity, or other activity that severely impairs public health, safety, or both, as determined by a majority of the members of the City Council.

4.7.7. Work Sessions. A work session is ordinarily for the purpose of i) briefing Councilmembers on a subject; and ii) an informal discussion between City Council, City staff, City boards/commissions, or other agency representative(s).

The City Council shall make no decisions at a work session, other than to give direction to staff for follow-up work. If there is no evening session, a work session may be set for an estimated time in the morning, such as 11:00 a.m. All Councilmembers will be polled for availability before a morning session is scheduled.

4.7.8. Teleconferenced Meetings. The City Council may conduct teleconferenced meetings pursuant to the Ralph M. Brown Act under Government Code Section 54953(b). If the City Council elects to use teleconferencing, it shall post agendas at all teleconference locations and conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties or the public appearing before the legislative body of a local agency. Each teleconference location shall be identified in the notice and agenda of the meeting or proceeding, and each teleconference location shall be accessible to the public. During the teleconference, at least a quorum of the members of the City Council shall participate from locations within the City. The agenda shall provide an opportunity for members of the public to address the legislative body directly at each teleconference location.

4.7.9. Budget Hearings. Pursuant to City Charter Section 1203, the City Council shall hold a public hearing on the proposed budget, at which interested persons desiring to be heard shall be given such opportunity.

4.7.10. Public Hearings Required by Law. A public hearing on a specific agenda item shall be set for a specified time, and each written or published notice regarding that hearing shall announce its date and time. A person who

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wishes to address the City Council at a public hearing should first complete a “Request to Speak" form and deliver it to the City Administrator/City Clerk prior to the time that the item on the agenda is read by the Deputy City Clerk. The Mayor may allot the available time to those persons who have filed a Request to Speak, and the determination of the Mayor may be overruled by a majority vote of the City Council.

4.7.11. Appeals.

4.7.11.1. Presentations, comments and deliberations by the parties and City Council shall be limited as follows:

4.7.11.1.1. Presentation by City staff shall not exceed 20 minutes in length.

4.7.11.1.2. Presentation by appellant including petitioners and applicants who are appellants shall not exceed 20 minutes in length, including any time reserved for rebuttal or summation.

4.7.11.1.3. Presentation by an applicant who is not an appellant shall not exceed 20 minutes in length, including any time reserved for rebuttal or summation.

4.7.11.1.4. Presentation by City staff in response to issues raised by City Council, appellant and applicant shall not exceed 10 minutes in length.

4.7.11.1.5. Comments from any other persons shall not exceed 3 minutes in length.

4.7.11.1.6. The order and time limits may be modified by action of the Mayor or majority vote of the City Council.

4.7.11.2. The total amount of time allocated for a presentation shall include time used to respond to or to comment upon issues or facts raised by a subsequent speaker “rebuttal"). An applicant, an appellant, or City staff may request leave of the Mayor to reserve all or a portion of their time for rebuttal. The total amount of time allocated for a presentation shall not include responses to questions posed by City Council during City Council deliberations.

4.7.11.3. These procedures set the maximum time allocated to each person or persons. Whenever feasible, presentations, comments and deliberations shall be shorter than the allocated time.

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4.7.11.4. Any person or persons whose presentation exceeds these time limits shall be ruled out of order and shall lose the floor, unless the time limit is extended by a majority vote of the City Council.

4.8. Forms of Council Action.

4.8.1. Ordinances and Resolutions. With the sole exception of emergency ordinances which take effect upon adoption, no ordinance shall be adopted by the City Council on the day of its introduction, nor within five (5) days thereafter nor at any time other than at a regular or adjourned regular meeting. At the time of its introduction an ordinance shall become a part of the proceedings of such meeting in the custody of the City Clerk. At the time of introduction or adoption of an ordinance or resolution it shall be read in full, unless after the reading of the title thereof, the further reading thereof is waived by unanimous consent of the Councilmen present, except that emergency ordinances shall be read in full. In the event that any ordinance is altered after its introduction, the same shall not finally be adopted except at a regular or adjourned regular meeting held not less than five days after the date upon which such ordinance was so altered. The correction of typographical or clerical errors shall not constitute the making of an alteration within the meaning of the foregoing sentence. No order for the payment of money shall be adopted or made at any other than a regular or adjourned regular meeting.

Unless a higher vote is required by other provisions of this Charter, the affirmative votes of at least four (4) members of the City Council shall be required for the enactment of any ordinance or resolution, or for the making or approving of any order for payment of money. All ordinances and resolutions shall be signed by the Mayor and attested by the City Clerk. Any ordinance declared by the City Council to be necessary as an emergency measure for the immediate preservation of the public peace, health or safety, and containing a statement of the reasons for its urgency, may be introduced and adopted at one and the same meeting if passed by at least five (5) affirmative votes.

4.8.2. Proclamations and Letters of Recognition. Guidelines to be used for Proclamations and Letters of Recognition are the following: The request must pertain to a Santa Barbara event. The request must be submitted in writing at least three weeks in advance of the Council meeting. Only one proclamation or letter of recognition can be presented per Council meeting, with the exception of the first Tuesday of the month due to employees receiving service awards. The person making the request must be present at the Council meeting to receive the proclamation or letter of recognition. The Mayor will determine if the proposed request meets the intent of this policy and retains the right to decide if it will be issued. The Mayor retains the right to modify, edit, or otherwise amend the proposed proclamation or letter of recognition.

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4.8.3. Minute Orders. The Council may by minute order direct staff or take any other action authorized by law.

4.9. Voting.

4.9.1. Quorum. A majority of the Council, including the Mayor, shall constitute a quorum for the purposes of transacting City business.

4.9.2. Tie Votes. A tie vote results in rejection of the motion or action in question.

4.9.3. Votes Required on Specific Matters.

4.9.3.1. General Plan and Zoning Amendments. No amendments to the City's General Plan and Zoning Ordinance shall be effective unless approved by five (5) affirmative votes of the City Council.

4.9.3.2. Franchises. Franchise shall be awarded by ordinance requiring the affirmative votes of at least four (4) members of the City Council. No franchise shall be amended except upon five (5) affirmative votes of the City Council.

4.9.3.3. Budget. The budget and any budget amendment or supplement shall require the affirmative votes of at least a majority of the total members of the Council.

4.10. Minutes. Upon the adoption of any order for the payment of money, or any ordinance, resolution, or upon the demand of any member, the City Administrator/City Clerk shall call the roll and shall cause the ayes and nays taken on such questions to be entered in the minutes of the meeting.

4.11. Public Participation. Any person wishing to address the City Council should first complete and deliver to the City Administrator/City Clerk a “Request to Speak" form. While the person’s name and address is requested on the form, it need not be provided in order for a person to speak. A speaker shall not be heard during the “Public Comment" portion of the meeting on a matter scheduled before the City Council that same day.

4.11.1. Time and Pooling Time. No individual speaker may speak for more than 3 2 minutes. Persons who speak during public participation on an individual agenda item may pool their time with others when to do so will allow a group of speakers to consolidate and shorten their remarks. Persons who wish to pool their time shall so indicate on their Request to Speak. Each person who is donating time shall be present in the Council chambers to deliver the Request to Speak form and when the pooled-time speaker is heard. Time will be pooled up

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to a maximum of 5 minutes for any single speaker, regardless how many persons donate their time. A person may not donate only a portion of their time.

4.12. Public Comment.

4.12.1. At the beginning of the 2:00 p.m. session of each regular City Council meeting, the City Council shall allow any member of the public to address them on any matter of interest that is within the subject matter jurisdiction of the City. Should City Council business continue into the evening session at 6:00 p.m., the City Council shall allow any member of the public who did not address them during the 2:00 p.m. session to do so. The City Council, upon majority vote, may decline to hear a speaker on the grounds that the subject matter is not within the jurisdiction of the City.

4.12.2. Time Limits. The total amount of time for public comment shall be 30 minutes, and no individual speaker may speak for more than 3 2 minutes. Speakers who have submitted a “Request to Speak" form prior to the time that the item on the agenda is initially read by the Deputy City Clerk, but who cannot be heard during the initial public comment session due to the total amount of time exceeding 30 minutes, will be heard at the end of the meeting.

4.12.3. Pooling Time. Persons who speak during the public comment portion of the agenda may not pool their time with others.

4.12.4. Council and Staff Responses. No action or discussion shall be undertaken on any item not appearing on the posted agenda, except that members of a legislative body or its staff may briefly respond to statements made or questions posed by persons exercising their public comment testimony rights.

In addition, on their own initiative or in response to questions posed by the public, a member of a legislative body or its staff may ask a question for clarification, make a brief announcement, or make a brief report on his or her own activities.

Furthermore, a member of a legislative body, or the body itself, subject to rules or procedures of the legislative body, may provide a reference to staff or other resources for factual information, request staff to report back to the body at a subsequent meeting concerning any matter, or take action to direct staff to place a matter of business on a future agenda.

4.13. Decorum and Rules of Conduct.

4.13.1. Duty to Preserve Decorum. While the Council is in session, all persons shall preserve order and decorum. Any person disrupting the Council meeting shall be barred by the Mayor from further attendance at said meeting. Any member of the public who fails to comply with the rules of decorum and conduct after being warned by the Mayor, thereby requiring the Mayor to interrupt the

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meeting once again to restore order, shall be considered to be disrupting the Council meeting.

4.13.2. Disruption Prohibited. No person shall disrupt the orderly conduct of the Council meeting. Prohibited disruptive behavior includes but is not limited to shouting, making disruptive noises, such as boos or hisses, creating or participating in a physical disturbance, speaking out of turn or in violation of applicable rules, preventing or attempting to prevent others who have the floor from speaking, preventing others from observing the meeting, entering into or remaining in an area of the meeting room that is not open to the public, or approaching the Council dais without consent. Individuals shall not be allowed to bring furniture into Council Chambers, or other items that might obstruct free passage within or ingress to or egress from Council Chambers, or to place any such obstructions in Council Chambers aisles or passage ways.

4.13.3. Electronic Devices. All electronic devices, such as phones, tablets or computers, shall be used in a silent mode so as not to disrupt the meeting with beeping, rings or other noises.

4.13.4. Signs. No sign shall be brought into the Council Chambers or displayed unless it can be held by one person without blocking the view of the dais by other persons seated in the Council Chambers. Signs shall not be affixed to poles or sticks. No sign or other material shall be affixed to the walls of the Council Chambers.

4.13.5. Sergeant-at-Arms. The Chief of Police (or representative) shall act as ex-officio sergeant-at-arms of the Council. The Police Chief shall carry out all orders and instructions of the presiding officer for the purpose of maintaining order and decorum inside and outside of the Council Chambers. Persons who disrupt a Council meeting while in session are subject to arrest and prosecution.

Upon instructions of the Mayor it shall be the duty of the sergeant-at-arms or any police officer present to eject from the Council Chambers any person in the audience who disrupts the proceedings of the Council meeting.

4.14. Quasi-Judicial Hearings.

4.14.1. Overview. It is the policy of the Council to avoid and discourage substantive oral communications or individualized written communications about quasi-judicial matters, except during a noticed public hearing. Written communications distributed to a majority of the Council shall be disclosed to the City Administrator/City Clerk and made public as required by the Ralph M. Brown Act. The following procedural guidelines are intended to implement this policy, but shall not be construed to create any remedy or right of action.

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4.14.2. Generally. These procedures are intended to assure that the due process rights of all persons are protected during quasi-judicial City hearings.

Quasi-judicial hearings require a higher level of procedural due process because of the potential impact on life, liberty or property. In the land use context, quasijudicial hearings typically involve a single parcel of land and apply facts and evidence in the context of existing law.

4.14.3. Applicability. Quasi-judicial hearing procedures will apply to the following City Council hearing matters:

4.14.3.1. Appeals from quasi-judicial matters, including but not limited to:

4.14.3.1.1. Actions of the Single Family Design Board

4.14.3.1.2. Actions of the Historic Landmarks Commission

4.14.3.1.3. Actions of the Architectural Board of Review

4.14.3.1.4. Actions of the Planning Commission

4.14.3.1.5. Permits issued by the Police or other departments that implicate liberty, property or life interests

4.14.3.1.6. Revocation of any permit in which the permittee has a vested property interest

4.14.4. Identification of Quasi-Judicial Matters on the Agenda. The City Administrator/City Clerk, in conjunction with the City Attorney, will identify agenda items involving quasi-judicial decisions on the Council agenda. This identification is intended to inform the Council, interested parties, and the public that this policy will apply to the item, but failure to identify an item shall not be cause for a continuance.

4.14.5. Policy to Avoid Ex Parte Contacts. Ex parte contacts are substantive oral or individual written communications concerning quasi-judicial matters that occur outside of noticed public hearings. City Councilmembers should avoid and discourage ex parte contacts if at all possible.

4.14.6. Disclosure of Ex Parte Contacts. If an ex parte contact does occur (which it might because the public has a hard time understanding that on quasi-judicial matters the Council’s decision making is confined to the hearing), the Councilmember must disclose the contact and the substance of the information communicated on the record at the start of the public hearing. This disclosure allows people who may have a different point of view or contrary evidence to make

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their points during the hearing in response to the information you may have obtained through the ex parte contact. The disclosure might go something like this: “I was approached by the appellant last week and they told me that neighborhood traffic is much greater than the City’s baseline assumptions.”

4.14.7. Ex Parte Contacts After the Hearing. Ex parte contacts after a public hearing is closed and before a final decision is rendered are prohibited because there is no opportunity for rebuttal.

4.14.8. Hearings De Novo. Appeals to the Council shall be conducted de novo, meaning that new evidence and arguments may be presented and considered. All matters in the record before any other City board, commission or official shall be part of the record before the Council.

4.14.9. Burden of Proof. The applicant and appellant shall bear the burden of proof on all aspects of the action or relief they seek. The person with the burden of proof must offer evidence to the Council to support his or her position.

4.14.10. Rules of Evidence. Council hearings need not be conducted according to formal rules of evidence. Any relevant evidence may be considered if it is the sort of evidence upon which responsible persons rely in the conduct of serious affairs. The presiding officer may exclude irrelevant or redundant testimony and may make such other rulings as may be necessary for the orderly conduct of the proceedings while ensuring basic fairness and full consideration of the issues involved. Evidentiary objections shall be deemed waived unless made in a timely fashion before the Council.

4.14.11. Written Findings. On any matter for which state law or City ordinance requires the preparation of written findings, the staff report and other materials submitted on the matter will contain findings proposed for adoption by the Council. Any motion directly or impliedly rejecting the proposed findings must include a statement of alternative or modified findings or a direction that the matter under consideration be continued for a reasonable period of time in order for staff to prepare a new set of proposed findings consistent with the evidence which has been presented and the decision which is anticipated.

4.14.12. Councilmembers Who Are Absent During Part of a Hearing.

A Councilmember who is absent from any portion of a hearing conducted by the Council may vote on the matter provided that he or she has watched or listened to a video or radio broadcast, or video or audio recording, of the entire portion of the hearing from which he or she was absent and if she or he has examined all of the exhibits presented during the portion of the hearing from which he or she was absent and states for the record before voting that the Councilmember deems himself or herself to be as familiar with the record and with the evidence presented

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at the hearing as he or she would have been had he or she personally attended the entire hearing.

4.14.13. Council Use of Electronic Communication Devices During Meetings. The Council’s use of electronic communication devices, such as cell phones, during a quasi-judicial City Council hearing may lead to the public’s perception that a Councilmember is not paying attention to the subject matter at hand or that a Councilmember is receiving information relative to the subject matter at hand that other Councilmembers and members of the public are not receiving.

Therefore, the Council’s use of electronic communication devices (including cell phones), other than for the purpose of accessing agenda materials or conducting individual research, is prohibited during quasi-judicial City Council hearings.

4.14.14. Ex Parte Contacts by Staff Attorneys. Pursuant to Rule 3.5 of the California Rules of Professional Conduct, attorneys who represent the City, and City staff or contractors who happen to be attorneys but who are not engaged to represent the City, may:

4.14.14.1. Contact the City Council ex parte on nonsubstantive or procedural matters (such as scheduling or other legal requirements) or

4.14.14.2. When acting in a neutral, non-adversarial
capacity, communicate oral or written legal advice publicly or confidentially to the City Council as allowed by state or federal law, and as consistent with statutory fair hearing rights and constitutional due process principles.

4.14.15. Ex Parte Contacts by Outside Attorneys. Pursuant to Rule 3.5 of the California Rules of Professional Conduct, attorneys employed by persons doing business with the City may participate in ex parte contacts, should they occur, as provided in this rule. Any nonstaff attorney who participates in an ex parte contact shall file written notification of such contact with the City Clerk, on a form prescribed by the City Attorney, no later than 2:00 p.m. the day of the City Council meeting at which the subject matter of the ex parte contact is considered. The City Clerk shall provide a list of ex parte contact notifications to the Council before each meeting.

4.15. Estimated Agenda Start Times for Large Groups. The estimated time system is established to: i) minimize the amount of time that large groups would wait for City Council items; ii) recognize that estimating the duration of City Council items is imprecise and that an estimated time" should not create an unrealistic expectation that the time for taking an item is certain; and iii) avoid

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creating gaps in the City Council meeting flow. The estimated time system is established with the following guidelines:

4.15.1. An individual or group may request an estimated time for items with high public interest. High public interest means that a large group is planning to attend the meeting.

4.15.2. The intent of an estimated time would be to accommodate groups, not a specific individual scheduling request.

4.15.3. When an estimated time is established, the City Council item would be scheduled for the estimated time or later, e.g., 2:30 p.m. or later.

4.15.4. If multiple items are scheduled on an agenda for the same estimated time, the items would be taken in the order they appear on the agenda; for example, two items scheduled for 2:30 p.m. or later would be taken in the order they appear on the agenda.

4.15.5. Estimated time requests must be submitted to the City Administrator/City Clerk, who makes the final decision on whether to grant an estimated time request.

4.16. Council Chambers Capacity. Council chamber attendance is limited to the posted seating capacity. The City Administrator/City Clerk shall appropriately regulate entrance to the council chamber when the council chamber capacity is likely to be exceeded. Members of the public shall not remain standing in the seating area or aisles of the council chamber. Sitting on the floor is not permitted. The sergeant-at-arms shall enforce these procedures.

5. POWER OF CENSURE
The City Council establishes and reserves the power to censure members of the City Council who violate these procedures. The City Council may adopt supplemental procedures to govern censure proceedings upon the advice and counsel of the City Attorney.
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CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: February 15, 2022
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Downtown Organization Annual Assessment Report for 2022 And Intention to Levy
RECOMMENDATION: That Council:

A. Approve the Downtown and Old Town Business Improvement District Annual Assessment Report for 2022; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Declaring Council’s Intention to Levy Downtown Business Improvement District and Old Town Business Improvement District Assessment Rates for 2022, at a Public Hearing to be Held on March 15, 2022, at 2:00 p.m.

DISCUSSION:

The Downtown and Old Town Business Improvement Districts were formed over forty years ago to provide marketing and promotional services for downtown businesses. The merchants in both business improvement districts pay for these services through an assessment based on their business license fee, location, and type of business. The assessment revenue is collected each year by the City and then remitted to Downtown Santa Barbara, a 501 (c) 3 organization, that operates both improvement districts after merging with the Old Town Merchants Association in 2005.

The Downtown Business Improvement District serves businesses between Chapala and Anacapa Streets, from Ortega Street north to Micheltorena Street, as authorized under Municipal Code Section 4.39, which regulates Downtown Parking and Business Improvement Area charges. The Old Town Improvement District serves businesses between Chapala and Anacapa Streets, from Gutierrez Street north to Ortega Street, as authorized under Municipal Code 4.43 with regulates the Old Town Parking and Business Improvement Area charges. (Map provided in Attachment)
Agenda Item No. 6
Council Agenda Report
Downtown Organization Annual Assessment Report for 2022 And Intention to Levy February 15, 2022

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The City Council, as the governing body of both improvement districts, requires the preparation and adoption of an annual assessment report pursuant to the California Streets and Highway Code, Parking and Business Improvement Area Law of 1989. In accordance with state law, the City Council must approve the assessment report and adopt a resolution of intention to levy an annual assessment for the fiscal year. The report outlines the assessment to be levied and collected from January 1, 2022 to December 31, 2022 to pay for activities planned for the upcoming year with the estimated cost. The report provides the method and basis of the assessment for business owners to estimate the assessment amounts for their business.

For the calendar year of 2022, there are no proposed changes to the boundaries or assessment rates in the Downtown and Old Town Improvement Districts. Council has expressed a desire to revisit the assessment rates in previous years but given the current circumstances surrounding the COVID-19 pandemic and the turnover in types of businesses in the downtown core, staff is not recommending changes to rates at this time.

Generally, the Parking and Business Improvement Area Law of 1989 allows the Downtown Organization, acting as the district’s administrator, to provide the following activities through the Business Improvement Districts:
 Promotion of public events, which benefit businesses in the area,  Furnishing of music in any public place in the area,
 Promotion of tourism within the area, and
 Activities which benefit businesses located and operating in the area.

Marketing and promotional activities of the Downtown and Old Town Improvement Districts include the Promenade Market, holiday décor and promotion of the Downtown area by website, social media, and various marketing campaigns. This longstanding partnership between the City and downtown business community has helped promote the downtown area as a business corridor and cultural arts destination for residents and visitors.

With Council approval of the annual report, notices to levy and collect the assessment will be mailed out to all affected businesses in the districts. The notices will inform businesses of a public hearing, scheduled on March 15, 2022. At the public hearing, the City Council would confirm whether there is a lack of majority protest (opposition received from business owners who pay 50% or more of the total assessments to be levied), and adopt a resolution to assess the rates in accordance with the annual report.

BUDGET/FINANCIAL INFORMATION:

The Downtown and Old Town Business Improvement District revenues are projected to be approximately $250,000 in business assessments to fund marketing and promotional activities for downtown businesses. On July 20, 2021, the City Council approved an annual agreement with Downtown Santa Barbara to provide $310,000 for marketing, Council Agenda Report
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promotion, and event planning services. Combined with other revenue sources, Downtown Santa Barbara has an estimated total budget of $721,597.

ATTACHMENT: 2022 Annual Report for the Downtown Business Improvement District and the Old Town Business Improvement District PREPARED BY: Brandon Beaudette, Acting Assistant to the City Administrator SUBMITTED BY: Rebecca Bjork, Interim City Administrator APPROVED BY: City Administrator's Office
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Exhibit A
Downtown Organization of Santa Barbara, Inc.
2022 Annual Report for the
Downtown Business Improvement District
and the Old Town Business Improvement District
This Annual Report from the Downtown Organization of Santa Barbara, Inc. dba Downtown Santa Barbara was prepared for the Santa Barbara City Council to review for the annual reauthorization of both the Downtown Santa Barbara Business Improvement District (Downtown BID) and the Old Town Business Improvement District (OTBID). This is the fifty-sixth year of operations for the two BIDs, managed under contract by Downtown Santa Barbara, a non-profit membership organization incorporated in 1966 whose purpose is to promote and protect the vitality of downtown Santa Barbara. This report is required by Section 36533 of the California Streets and Highways Code. This report is for both BIDs, commencing January 1, 2022 and ending December 31, 2022.

EXECUTIVE SUMMARY: Downtown Santa Barbara's relationship with the City of Santa Barbara is as vital now as at any point in the organization's long history. We have a contractual relationship with the City through a Promotions contract, a financial relationship through renewal and collection of BID fees, and a personal relationship through which we collaborate on ways to strengthen downtown Santa Barbara. Over the past almost two years, Downtown Santa Barbara's board and staff have been responsive to the needs of businesses who have been faced with the challenges of the pandemic. Our organization’s priority areas are the following: economic vitality; business retention, marketing and promotion; advocacy; activations and special events, and maintaining a clean, green, and safe downtown. Staff and committees have been reorganized based on the priority areas to promote and support businesses with the challenges of the pandemic.

We have a keen focus on economic recovery and revitalization of our downtown and leveraging community relationships.

BACKGROUND: These two Downtown BIDs were established separately by ordinance, at different times and for different purposes, and therefore have slightly different formulas for their respective assessments.

MANAGEMENT SERVICES: Once the BIDs were established, the City of Santa Barbara contracted for their management and the provision of services with the Downtown Organization of Santa Barbara, Inc. The Downtown Organization then merged with the Old Town Business Association in 2004. The two BIDs have continued to operate separately in compliance with their respective ordinances. Their combined revenues support the operations and programs managed by the Downtown Santa Barbara organization, under the contract for BID services with the City of Santa Barbara.

DOWNTOWN BID BOUNDARIES: The Improvement Area is defined as follows in the original ordinance establishing the district: The business improvement area bounded by

ATTACHMENT
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Anacapa, Chapala, Micheltorena, and Cota Streets.

OLD TOWN BID BOUNDARIES: The Improvement Area is defined as follows in the original ordinance establishing the district: The Business Improvement bounded by Anacapa, Chapala, Gutierrez and Ortega streets and businesses fronting on the area bounded by said streets and businesses fronting the intersections of said streets, except that the area north of the centerline of Ortega Street is not included.
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As required by California law, this combined Annual BID Report for the Downtown BID and the Old Town BID contains the following information:

1. Proposed Changes to the District Boundary:

There are no changes proposed to either the Downtown BID or the Old Town BID boundaries.

2. Planned Improvements and Activities for the 2021-2022:

The following Downtown Santa Barbara projects and programs are planned for 2022. 2020-2025 STRATEGIC PLAN

2.1 Strategic Plan – Continuously update the strategic plan and implementation plan to meet the needs of businesses in the face of recovering from the pandemic.

2.2 Committee Structure for DSB –Work to increase engagement of business owners and community members in the work of DSB through committee working groups.

2.3 Metrics for Success – Develop metrics for success for each priority area and track progress quarterly.

2.4 Downtown Master Planning Process - DSB will work with partners and the City to complete plan for downtown Santa Barbara and the re-envisioning of State Street.

2.5 Focus on Storytelling – Focus on telling the story of our changing downtown - new businesses opening, old favorites thriving, food offerings for every palate, entertainment for young and old, buildings wearing the vibrant color of SB, and events inviting locals and tourists alike to experience anew our downtown.

MARKETING, COMMUNICATIONS, AND ADVERTISING

2.6 Website and Communications – Develop and execute marketing plan for Downtown Santa Barbara. Continue to conduct an annual survey of business owners to determine priorities and needs, to help Downtown Santa Barbara set priorities. Continuous updating of Downtown Santa Barbara website to include business member pages, event calendars, neighborhood shopping guide, business directory, video shopping tours and more. Continue to promote and leverage the downtown website, with additional outreach to downtown businesses to build their own pages, content, and to feature and showcase the new businesses and attractions. Continue to engage customers, the general public, and business members through all social media outlets. New features include:

2.7 Downtown Santa Barbara IGTV Business Live Series: In response to the pandemic conditions, we added an Instagram live digital live series, where we interview different business owners live for extra individualized promotion to our 30,000 Instagram followers.

2.8 Marketing/Media Campaigns – Provide year-round leadership and management services for advertising partnerships and trades with partner organizations, 4 | P a g e
media outlets, and community service venues to leverage year-round promotions and retail activities. Strong social media efforts designed to raise awareness of downtown’s history, events, and businesses. Created in 2020 and to be continued in 2022 is the Downtown Business Spotlight" an interview series with downtown business owners in diverse industries in partnership with the Santa Barbara Independent marketed and distributed in print, Santa Barbara Independent e-newsletters, Downtown SB e-newsletters and social media and recorded for businesses to use as well.

2.9 Downtown Map & Guide – Expand visibility for more than 100,000 full color brochures, delivered year-round to hotels, destinations, cruise ship patrons, downtown events, California Visitor Center locations, and other visitor-oriented outlets.

2.10 Cruise Ship Volunteer Program and Visitor Outreach – (Continue when conditions allow) staffing for community-based volunteer program providing hospitality services for all cruise ship visits, in partnership with the Santa Barbara Waterfront, Visit Santa Barbara, and Chamber of the Santa Barbara Region. Redevelop host program for outreach through the summer.

2.11 Marketing/Advertising for Major Festivals/Events –– (Continue when conditions allow) Provide marketing/social media support for other signature events (i.e. Solstice, Fiesta). Staging and production services on State Street in support of all community parade operations, and direct marketing to all downtown businesses.

2.12 Retail Promotions – Continue to expand Small Business Saturday, building on our prior success and planning in 2022. Offer strategic retail-oriented events to drive sales and attendance at key times.

PROGRAMMING AND SPECIAL EVENTS

2.13 District and Community Promotion – Develop plan to promote districts within our downtown. Year-round State Street flag display program with over 40 nonprofit community partners. Develop new opportunities for entry into the program through reduced cost measures.

2.14 1st Thursday, Art and Wine Tour events –Year-round monthly program showcasing culture, vitality of State Street, providing participation opportunities for retailers, galleries, wineries, and restaurants to assist the Art District and bring together cultural partners to develop district marketing program.

2.15 Annual Awards Breakfast – Design and produce our yearly annual celebration, program including Annual Downtown Awards: Business Champion of the Year, Volunteer of the Year, Richard Breza Award for Public Service, Harriet Miller Youth Leadership Scholarship, Citizen of the Year, and Entrepreneur of the Year award.
5 | P a g e

2.16 Holiday Tree and Seasonal Programming –Secure sponsorship support to retain Holiday Tree and tree lighting ceremony, expanded marketing and social media engagement in support of holiday shopping, explore feasibility of additional continued improvements to Parade operations and or seasonal programing shall we need to postpone the parade. Expansion of sponsorship program for annual parade with new Grand Marshal sponsor and new Prince & Fairy sponsor. Tuba Christmas partnership will also continue. Continued plan for expanded holiday tree lighting.

2.17 Business District Holiday Décor Program – Partner with the city to implement the holiday décor program to include lighting on all palm and street trees; seasonal décor, window display contests among the merchants.

2.18 Downtown Networking Meetings – Continue to host downtown networking mixers as conditions allow to engage business owners and community leaders and provide opportunities to increase communication.

2.19 State Street Promenade Market– a weekly Thursday market from 3-7:30 PM designed to promote downtown businesses and create vibrancy downtown.

This is anticipated to expand over time to include entertainment, feature local restaurants and family-oriented activities and more as Covid-19 conditions improve. Participation is free for businesses in the BID area as an extra promotion for businesses, online and in person.

2.20 Activations/Placemaking – Create list of programmatic activation sites in downtown and host pop-up events at key times to increase activity in the downtown.

BUSINESS RETENTION, OUTREACH, INVOLVEMENT, AND ADVOCACY

2.21. Outreach Materials and Mailings – Weekly e-newsletter highlighting downtown happenings and downtown businesses.

2.22 Online Calendar of Events: Businesses add happenings directly to the calendar.

These are featured on our website and populates our e-newsletter and social media calendars.

2.23. Membership Portal: Businesses update their listings on the DSB website, and include different photos, descriptions, and contact info at any time. This is an important way to have locals and visitors and locals find downtown businesses. Tutorials and trainings offered.

2.24. Free Business 1 x 1 Strategy Calls by appointment are available with Downtown Santa Barbara staff and our partner organization business strategy specialists to support downtown businesses.

2.25. Business resources and trainings: DSB offers free webinars on current issues affecting downtown businesses as well as educational resources to grow your business and navigate these unique times in partnership with the Economic Development Collaborative, Women’s Economic Ventures and others.

2.26 Community Involvement and Engagement – Active participation in community, civic boards, and civic groups year-round. Provide strong representation and 6 | P a g e
active involvement on other Boards and civic organizations from both staff and other board members.

2.27 Facilitation of Committees: Downtown Santa Barbara hosts a number of committees to support our downtown business community they are accessible to all BID businesses including: Business Support & Retention, Marketing & Promotion, Fundraising & Development, Retail, Restaurant and Bar, Government Relations, Property Owner Roundtables and other Adhoc Committees as needed.

2.28. Support of Downtown Events & Initiatives – Continue to work with organizers as conditions allow to promote and support downtown events and activations including: SBIFF, CycleMAYnia, State Street Nationals, Santa Barbara Art Museum Van Gogh exhibit celebration, and the Summer Movie Series at the Santa Barbara Courthouse. Continue sponsorship of Pianos on State program and other arts programming on downtown art pads.

2.29 Coordination with South Coast Chamber – Explore more coordinated and collaborative efforts with the recently created South Coast Chamber to produce support business retention, recovery, revitalization and economic development.

2.30 Safety Initiatives – Continue engagement and support with partners. Serve on the SB Act steering committee. Continued collaboration with businesses/police/support from Ambassadors program, including education/awareness efforts.

ADMINISTRATION

2.31 Administrative Services – Continue to provide administrative services for all programs, services, events, rentals, and marketing services provided to members.

2.32 Accounting Services – Continue to staff and administer all accounting, finance responsibilities for accounts payable, receivable, reports, etc.

3. Estimated Costs of BID-Related Improvements and Activities Proposed for 2022

PROJECTED BID ASSESSMENT EXPENSES
Expense Type BID Other Total
Program Expenses 43000 23126 66126
Promotion Expenses 50000 75993 125993
Salaries and Benefits 75000 332478 407478
Professional Services 25000 25000 50000
General and Administrative 57000 15000 72000
$250,000 $471,597 $721,597

PROJECTED DOWNTOWN ORGANIZATION EARNED NON-ASSESSMENT REVENUES FOR 2022

7 | P a g e
City Promotions Funding $310,000
Associate Membership Dues $10,350
Flag Admin Fees $20,000
Programs and Sponsorship $45,110
Map and Brochure $19,080
Board Contributions $5,000
Grants $61,757
Interest Income $200

TOTAL NON ASSESSED
INCOME $471,497
Downtown Combined BIDs ASSESSMENT $250.000
Total Projected Revenues for 2022 $721,597
NOTE: These financial summaries are limited to the operations and overhead of Downtown Santa Barbara.

4. Method and Basis of Levying the Assessment Shall Continue as Follows:

The benefit assessments will be collected by the City in one installment. There are no proposed changes to the formulas or rates for the two Downtown BIDs as outlined in the original establishment of the BIDs.

Old Town BID assessment formula:

Category Charge
Businesses located on State Street Equal to 100% of business license. Minimum of $100.00
Businesses not located on State Street Equal to 75% of business license. Minimum of $100.00
Automobile Sales and Service
Businesses
Businesses in Classification “B” of
Section 5.04.390 shall pay a maximum
charge of $600.00 per year
Other Businesses: Wholesale,
Professional, and Real Estate business
as shown in Category 5.04.400
$100.00
Downtown BID assessment formula:

Category Charge
Professionals Equal to 15% of business tax
paid. Minimum of $50.00
All Others Equal to 100% of business license.

5. Surplus Carryover from 2021:

There is not a surplus of assessment dollar funds being carried over from the FY 2021 8 | P a g e
budget; assessment dollars are spent first on services and programs to benefit the ratepayers for the BIDs before non-assessment dollars are spent.

6. Sources of Contributions From Other than Levied Assessments:

Downtown Santa Barbara generates other sources of funds and earned revenues through a variety of programs and third-party contracts for services. These include earned revenues from grants and sponsorships, a promotions contract with the city, ticket sales for events, flag administration fees, associate membership dues, advertising sales, and donations.

7. Prior Year Assessed Income Expenditures 2021
The total collected by the city for the Old Town BID in 2021 was $57,634.77. The total collected for the Downtown BID by the city was $193,329.04. The total remitted to the Downtown Organization for 2021 was $250,963.81
The following services were provided as benefits to the ratepayers from January 2021 – December 2021.

Downtown website
• Continually updated with event highlights, new events, shopping directory of businesses, business features via video, photos etc.
• Average 50,000 visitors per quarter.

Earned Media Features
• Over 70 features in regional newspapers, tv stations, magazines etc.

Print Marketing
• Produced Map & Guide. It will be distributed in Spring 2022 • Advertisement buys in various local and regional publications. • Weekly ads in Voice Magazine and the Santa Barbara Independent • Winter, Spring, Summer and Fall placement in California 101 Travelers Guide Social Media
• More than 200 businesses featured per quarter via Instagram followers Increased Instagram following from 22,000 to 30,000 and Facebook (11,000) Video Production
• Developed and produced videos for Downtown Santa Barbara • Virtual Shopping Tours
E-Newsletters - Weekly e-newsletters to community and businesses including business highlights, programs, events, webinars, resources and more (average of 49% open rate)
State Street Flag Program – Full year of flags with new non-profit participants 9 | P a g e
Business Outreach & Support –Business outreach, Executive Director held hundreds of meetings with business leaders, property owners, and community leaders, educational webinars, pandemic relief and recovery efforts, business strategy sessions and more.

Community Outreach – provided presentations to community groups about downtown issues and opportunities
Support of downtown initiatives – provided support, marketing, programming, and staff to downtown initiatives
DSB Produced Events
• Annual Awards Ceremony
• 1st Thursday ArtWalk Series, every 1st Thursday of the month • Small Business Saturday
• Business Networking Mixers
• Holiday Tree Lighting Ceremony and 11 “Magical Holiday Happenings Events” • State Street Promenade Market, Every Thursday throughout the year • Business Spotlight Series: Weekly Interview series featuring different business • owners in collaboration with the Santa Barbara Independent Advocacy – Provided public testimony and/or comments and advocated for businesses on issues affecting downtown Santa Barbara such as homelessness, youth bicycling, outdoor dining and the future of State Street.

Convener Monthly Board meetings with city and business leaders, Committee meetings including Economic Development, Marketing & Promotion, Government Relations, Adhoc Committees as needed
Active Participants: Santa Barbara County Business Task Force Team, Government Relations Committee; State Street Advisory Committee, State Street Regional Action Plan on Homelessness, Old Spanish Days Fiesta meetings; International Downtown Association; California Downtown Association; Visit Santa Barbara; Summer Solstice; De la Guerra Plaza and Farmer’s Market conversations and many more.

Professional Memberships:

Member: CDA, International Downtown Association, ICSC
RESOLUTION NO. _____

A RESOLUTION OF THE COUNCIL OF THE CITY OF
SANTA BARBARA DECLARING COUNCIL’S INTENTION TO

LEVY DOWNTOWN BUSINESS IMPROVEMENT DISTRICT

AND OLD TOWN BUSINESS IMPROVEMENT DISTRICT
ASSESSMENT RATES FOR 2022, AT A PUBLIC HEARING
TO BE HELD ON MARCH 15, 2022, AT 2:00 P.M.

WHEREAS, pursuant to Section 36534 of the California Streets and Highways Code, it is the intention of the Council of the City of Santa Barbara, to conduct a public hearing to determine whether to fix and assess a 2022 Downtown Business Improvement District assessment (hereinafter referred to as Downtown BID), as established by Chapter 4.39 of the Santa Barbara Municipal Code, adopted on May 7, 1985; WHEREAS, pursuant to Section 36534 of the California Streets and Highways Code, it is the intention of the Council of the City of Santa Barbara, to conduct a public hearing to determine whether to fix and assess a 2022 Old Town Business Improvement District assessment (hereinafter referred to as Old Town BID), as established by Chapter 4.43 of the Santa Barbara Municipal Code, adopted on June 3, 1986; WHEREAS, upon the completion of a public hearing, it shall be the intention of the City Council to levy and collect a benefit assessment within Downtown BID and Old Town BID as described in the Fiscal Year 2022 Annual Report, Exhibit A; WHEREAS, for Fiscal Year 2022, the improvements and activities to be provided shall consist of marketing and promotional activities for the businesses in the Downtown area.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SANTA BARBARA:

SECTION 1. It is the intention of the City Council to levy and collect assessments within the Downtown Business Improvement District for the Fiscal Year of 2022 from January 1 to December 31, 2022, within boundaries established upon the enactment of Chapter

4.39 of the Santa Barbara Municipal Code on May 7, 1985. It is also the City Council’s intention to confirm the method and basis of assessment as established by the City Council upon the enactment of Santa Barbara Municipal Code Chapter 4.39, and as described in the Report.

SECTION 2. It is the intention of the City Council to levy and collect assessments within the Old Town Business Improvement District for the Fiscal Year of 2022 from January 1 to December 31, 2022, within boundaries established upon the enactment of Chapter

4.43 of the Santa Barbara Municipal Code on June 3, 1986. It is also the City Council’s intention to confirm the method and basis of assessment as established by the City Council upon the enactment of Santa Barbara Municipal Code Chapter 4.43, and as described in the Report.

SECTION 3. The time and place for the public hearing to consider the intention of the City Council shall be scheduled for the 2:00 p.m. session of the Council’s regularly scheduled meeting of March 15, 2022, conducted virtually and in person.

SECTION 4. Written and oral protests to the proposed 2022 Downtown BID and Old Town BID Assessments, as described in the Report, may be mailed to the City Clerk or made at the above-described public hearing provided that such protests are in the form and manner required by Sections 36524 and 36525 of the California Streets and Highways Code.

SECTION 5. The City Clerk shall give notice of the above-described public hearing by causing a copy of this resolution of intention to be published in a newspaper or general circulation in the City no less than seven (7) days prior to March 15, 2022 and mailing a copy of this resolution of intention to affected business owners within seven (7) days of the City Council’s adoption of the resolution of intention to levy businesses in the area.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: February 15, 2022
TO: Mayor and Councilmembers
FROM: Transportation Planning and Parking and Engineering Divisions, Public Works Department
SUBJECT: Adoption Of Resolution For Five-Year Measure A Local Program Of Projects For Fiscal Years 2023 – 2027 Public Hearing
RECOMMENDATION:

That Council adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Adopting the Five-Year Measure A Local Program of Projects for Fiscal Years 2023 – 2027.

DISCUSSION:

The City must annually adopt a resolution and submit an updated Five-Year Measure A Program of Projects (Attachment) to the Santa Barbara County Association of Governments (SBCAG) in accordance with the Measure A local allocation rules. The proposed Five-Year Measure A Program of Projects will also be incorporated into the proposed Streets Capital Improvement Program budget for Fiscal Years 2023 and 2024.

With Council's approval of the recommended resolution, this report will satisfy the Measure A requirement that the local agency hold an annual public hearing on its Program of Projects prior to submittal and adoption by SBCAG.

Background
In November 2008, Santa Barbara County voters approved Measure A Ordinance No. 5 with 79 percent support. Measure A is a sales tax measure estimated to provide approximately $1 billion of local sales tax revenues for transportation projects in Santa Barbara County over the 30-year life of the measure. Measure A is funded through a continuation of the local 1/2 cent sales tax that was originally authorized by Measure D, which expired on March 31, 2010. Measure A contains a strategic spending plan that includes regional projects, as well as local programs and projects that are funded by monthly population-based allocations to each local agency. The Measure A Ordinance requires the City to annually submit a Five-Year Measure A Local Program of Projects to the administrating agency, SBCAG.

Agenda Item No. 7
Council Agenda Report
Adoption Of Resolution For Five-Year Measure A Local Program Of Projects For Fiscal Years 2023 – 2027 Public Hearing
February 15, 2022

Page 2 ends

Five-Year Measure A Local Program of Projects
SBCAG has estimated that the City will receive the following Measure A revenues for Fiscal Years 2023 – 2027 below. There are less revenues in Fiscal Years 2022/2023 and 2025/2026, because those years represent when there will be drawdowns from a federal loan to fund construction of the U.S. 101 High Occupancy Vehicle Lane Project.

FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 Total
$5,018,584 $5,130,750 $5,288,384 $5,067,117 $5,260,392 $25,765,227 Under Measure A, local agencies choose how to spend their share of funds after annually adopting the Five-Year Measure A Local Program of Projects. Measure A contains funds for local street and transportation improvements (capital projects and maintenance/operations), and Alternative Transportation (pedestrian/bicycle improvements, Safe Routes to School, and transit assistance).

The Measure A Ordinance also requires local agencies to spend a minimum of ten percent of the Measure A local street and transportation improvement funds on eligible Alternative Transportation projects. It is calculated cumulatively and must be met by the fifth year of the Measure A Program, and every fifth year thereafter. Fiscal Year 2023 is the first year of the next five-year period. The proposed Five-Year Measure A Local Program of Projects reflects that 16.99 percent of Measure A Alternative Transportation expenditures.

The Measure A Ordinance also requires local agencies to meet an annual Maintenance Of Effort (MOE) of non-Measure A “local discretionary funds” for street and road purposes, adjusted annually by the rate of growth (or decline) of measure revenues. This requirement ensures that the legislature’s intent is fulfilled, which is that local transportation sales taxes supplement, rather than supplant, local transportation investments. The City exceeded the MOE requirement for Fiscal Years 2021 and 2022 and will be able to meet the next five-year requirement through Measure C funding.

ATTACHMENT: Measure A Proposed City of Santa Barbara Program of Projects by Category Fiscal Year 2023 – Fiscal Year 2027
PREPARED BY: Laura Yanez, P.E., Principal Civil Engineer Jessica W. Grant, Interim Public Works Downtown Manager/sf SUBMITTED BY: Clifford M. Maurer, Public Works Director APPROVED BY: City Administrator’s Office
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RESOLUTION NO.

A RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA

BARBARA ADOPTING THE FIVE-YEAR MEASURE A LOCAL
PROGRAM OF PROJECTS FOR FISCAL YEARS 2023 – 2027
WHEREAS, on November 4, 2008, the voters of Santa Barbara County approved the Santa Barbara County Road Repair, Traffic Relief and Transportation Safety measure, known as Measure A;
WHEREAS, Measure A Ordinance No. 5 provides that Santa Barbara County Local Transportation Authority shall annually approve a program of projects submitted by local jurisdictions identifying those transportation projects eligible to use Measure A funds; WHEREAS, the City of Santa Barbara was provided with an estimate of annual Measure A local revenues for Fiscal Years 2023 through 2027; and WHEREAS, on February 15, 2022, the City of Santa Barbara held a public hearing in accordance with the Ordinance.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SANTA BARBARA AS FOLLOWS:

SECTION 1. The Council of the City of Santa Barbara approves the Five-Year Measure A Program of Projects to be funded in part with Measure A revenues, as shown in the Exhibit to this Resolution.

SECTION 2. The Council of the City of Santa Barbara certifies that it will include in its budget an amount of local discretionary funding for local streets and roads sufficient to comply with the Maintenance of Effort requirements contained in the Ordinance.

SECTION 3. The City of Santa Barbara will not use Measure A revenues to replace private developer funding that has been committed to a transportation project, or would otherwise be required under current City policies.

SECTION 4. The City of Santa Barbara has complied with all other applicable provisions and requirements of the Ordinance.
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CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: February 15, 2022
TO: Mayor and Councilmembers
FROM: Engineering Division, Public Works Department
SUBJECT: Increase The Contract For As-Needed Professional Water Main Replacement Design Services
RECOMMENDATION:

That Council authorize the Public Works Director to execute Amendment No. 2 to City Professional Services Agreement No. 26,272 with Stantec Consulting Services Inc., in the amount of $302,000, for a total contract amount of $1,252,000, for additional asneeded professional water main replacement design services.

DISCUSSION:

Background
On June 5, 2018, Council received a presentation and approved an increase in the annual water main replacement goal from one percent to two percent, or approximately six miles of the total water distribution system. On September 18, 2018, Council approved Contract 26,272, with Stantec Consulting Inc. (Stantec), to provide as-needed professional water main replacement design services in support of Council’s annual water main replacement goal. On February 4, 2020, Council approved the First Amendment to this contract to include additional design work through 2021.

Current Status
This spring staff will conduct a Request for Qualifications process to re-authorize or add master contracts for as-needed professional water main replacement design services beginning in Fiscal Year 2023. While that effort is underway, staff is requesting approval of a Second Amendment with Stantec to initiate the design of the next water main replacement project. These services are needed to maintain program continuity and momentum to achieve the goal of six miles of water main replacement per year. Stantec was selected in 2018 through a competitive Request for Proposals process and has consistently and successfully performed these services for the previous Fiscal Year projects. This will be the final as-needed task order issued for this contract, and staff plan to return in spring of 2022 with new contracts for ongoing as-needed professional water main replacement design services.

Agenda Item No. 8
Council Agenda Report
Increase The Contract For As-Needed Professional Water Main Replacement Design Services
February 15, 2022

Page 2 ends

BUDGET/FINANCIAL INFORMATION:

The following summarizes the expenditures recommended in this report:

CONTRACT FUNDING SUMMARY
Base
Contract
Change Order Total
Initial Contract Amount $600,000 $0 $600,0000
Amendment 1 $0 $350,000 $350,000
Amendment 2 $0 $302,000 $302,000
Total $600,000 $652,000 $1,252,000
If the recommendation is approved, the total as-needed professional water main design contract expenditure authority will be increased to $1,252,000.

There are sufficient appropriated funds in the Water Main Replacement Project in the Water Capital Fund to cover the costs associated with this Second Amendment to Stantec’s contract.

ENVIRONMENTAL REVIEW:

Amending the current contract does not require California Environmental Quality Act (CEQA) review. Individual water main replacement projects are subject to review under CEQA.

WATER COMMISSION:

The Water Commission reviewed this item at its meeting on January 20, 2022, and recommended this item on to Council in a vote of 5-0 in favor of the recommendation.

PREPARED BY: Philip Maldonado, P.E., Interim Principal Engineer/VF/lm SUBMITTED BY: Clifford M. Maurer, P.E., Public Works Director APPROVED BY: City Administrator’s Office

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: February 15, 2022
TO: Mayor and Councilmembers
FROM: Wendy Levy, Human Resources Director
SUBJECT: City Administrator Employment Agreement
RECOMMENDATION:

That Council approve and authorize the Mayor to execute an employment agreement with Rebecca Bjork to serve as the permanent City Administrator effective February 15, 2022.

DISCUSSION:

City Council has appointed Rebecca Bjork to serve as the new City Administrator. Ms. Bjork, the Assistant City Administrator, had been serving as the Acting City Administrator since Paul Casey’s retirement in September of 2021.

Ms. Bjork will be appointed at her current compensation level as Acting City Administrator, at a salary of $282,877 per year plus benefits. The proposed employment agreement is attached. Ms. Bjork’s compensation will be reviewed annually with her performance evaluation.

Following a modern practice in public employment contracts, the agreement contains a provision that removes the obligation to provide severance benefits if the City Administrator is terminated for “cause.” “Cause” is defined as (a) conviction of a felony; b) conviction of an act involving moral turpitude or illegal gain; c) a plea of nolo contendere involving a conviction of a felony or an act involving moral turpitude or illegal gain; d) any act constituting a knowing and intentional violation of the City’s Conflict of Interest Code.

BUDGET/FINANCIAL INFORMATION:

In addition to salary outlined in the employment agreement, Ms. Bjork will receive the fringe benefit package that was budgeted for Fiscal Year 2021 in accordance with Group I of the Management Performance and Compensation Plan. Adequate expenditure appropriations exist in the City Administrator department budget in FY2021.

Agenda Item No. 9
Council Agenda Report
City Administrator Employment Agreement
February 15, 2022

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ATTACHMENT: Draft Employment Agreement with Rebecca Bjork PREPARED BY: Wendy Levy, Human Resources Director
APPROVED BY: Randy Rowse, Mayor

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EMPLOYMENT AGREEMENT
Agreement No.

The City of Santa Barbara, a municipal corporation, hereinafter referred to as "Employer" and Rebecca Bjork, an individual, hereinafter referred to as "Employee" enter into this Agreement on February 15, 2022 for Employee's services as City Administrator for the City of Santa Barbara.

WHEREAS, this Agreement is made under Article VI of the Santa Barbara City Charter, as a municipal affair; and
WHEREAS, the City Council of Employer, hereinafter "City Council," determined that Employee has the necessary qualifications and experience for the Officeof City Administrator as required by the City Charter; and WHEREAS, on February 15, 2022, the City Council appointed Employee to the Office of City Administrator, with an effective date of February 15, 2022; and WHEREAS, Employer and Employee enter into this Agreement to document the terms and conditions of employment.

NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS:

SECTION 1. TERM AND STATUS.

A. Employer employs Employee to serve as City Administrator and in that capacity, to also hold the offices of City Clerk and City Treasurer (“ancillary offices”). The duties of the ancillary offices may be delegated to the Director of Finance and the City Clerk Services Manager.

B. Employee's employment status is at-will and at the pleasure of the City Council. Employee understands and agrees that the City Council may terminate her City employment at any time, subject only to the notice, removal and severance provisions of Section 5 of this Agreement and Section 606 of the City Charter.

Employee understands and agrees that Employer has made no implied or express oral or written assurances of continued employment with the City. Employee further understands and agrees that she has no property right in City employment and that Employer requires no cause to suspend or terminate her City employment.

SECTION 2. POWERS AND DUTIES.

A. Employee shall perform the duties of City Administrator as set forth in Article VI of the City Charter and as determined and controlled by the City Council. Employee shall report directly and solely to the City Council.

B. In the performance of the duties of City Administrator, Employee

ATTACHMENT

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agrees to comply with all federal, state and local laws, ordinances, rules, regulations and City Charter, which are applicable to the Office of the City Administrator. Employee acknowledges that she is subject to the common law and statutory conflict-of-interest provisions, including, but not limited to, the Political Reform Act set forth in California Government Code Section 87100 and following, the Fair Political Practices Commission Regulations set forth in California Code of Regulations, Title 2, Section 18700 and following, and California Government Code Section 1090 and following, as they may be amended. Employee agrees that she will be acquainted with the abovereferenced provisions, comply fully with them and not take any action, which results or could appear to result, in a violation of such provisions.

SECTION 3. COMPENSATION.

A. Base Salary.

As compensation for Employee's services, Employer agrees to pay Employee, on a bi-weekly basis, an annual base salary of $282,877.

B. Changes to Compensation.

Employee's compensation, as provided herein, shall be reviewed annually and may, from time to time, be increased based on Employee's satisfactory performance, as solely determined by the City Council. Such increases will be established by ordinance. Any increases so approved shall inure to Employee without amendment of this Agreement
C. Health and Welfare Benefits.

Employee shall receive the same health and welfare benefits provided to the City's Group 1 Managers ("Executives"), including, but not limited to, long term disability and life insurance, as set forth in the Management Performance and Compensation Plan.

D. Retirement.

Employee shall receive retirement benefits through the Public Employees Retirement System (hereinafter "PERS") Miscellaneous Plan. Employee shall pay a variable contribution toward retirement under the same formula applicable to the City's Group 1 Managers ("Executives").

E. Automobile Allowance.

Employee shall receive an automobile allowance of $621 per month which

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shall be indexed on a percentage basis with changes in the Internal Revenue Service mileage reimbursement rate for business travel, as provided under Resolution 90- 012, and increased or decreased, as appropriate, without amendment of this Agreement.

F. Leave.

Employee shall receive the same leave benefits provided to the City's Group 1 Managers ("Executives"), including, but not limited to, holiday leave and catastrophic leave, as set forth in the Management Performance and Compensation Plan.

G. Relocation Expenses.

In view of Charter Section 601, Employer shall reimburse Employee for documented moving expenses incurred as a result of Employee relocating her residence to a location within the boundaries of the City, provided that such reimbursement shall be capped at $5,000.00 and shall be paid only if such documented moving expenses are incurred within one year of the effective date of this Agreement. The period for Employee to relocate under Charter Section 601 is extended for a period of one year, subject to further extensions by the City Council.

SECTION 4. PERFORMANCE EVALUATION.

Employer shall evaluate the performance of Employee, as City Administrator, on an annual basis. Employee shall be responsible for providing written notice to the City Council of the need to complete the performance evaluation.

Employee understands and agrees that the failure to evaluate Employee annually, shall not affect the rights of the parties in this Agreement, including termination ofEmployee's employment.

SECTION 5. TERMINATION.

A. Termination by Employee.

Employee may voluntarily resign as City Administrator by delivering a letter of resignation to the City Council not less than 30 days prior to the effective date of termination. Employee is not entitled to any severance pay detailed in Section 5(B)(3) if she resigns or retires.

B. Termination by Employer.

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1. Employer may unilaterally terminate Employee's employment, with or without cause, in accordance with Sections 600 and 606 of the City Charter. No cause for termination need exist because Employee recognizes that she serves at the pleasure of the City Council as an at-will employee. Except as otherwise provided by this Agreement or by law, Employee agrees that she is exempt from any pre- or post-termination due process rights (such as Skelly rights or a name clearing hearing).

2. Employer shall provide Employee at least 45 days’ notice prior to the effective date of termination except if termination is for cause as detailed in Section six (6) below. Employer shall provide Employee with the reasons for termination upon her request.

3. Employee shall receive six (6) months’ severance pay consisting of Employee's base salary, the cash value of twelve (12) months of cafeteria plan and automobile allowances at the effective date of termination and a cash payment of accrued leaves. The PERS Retirement contribution shall not be included in the severance pay. Nothing in this Section shall extend the amount of time served for purposes of receiving any benefit provided in this Agreement.

SECTION 6. TERMINATION FOR CAUSE.

If Employee is terminated “for cause”, City shall have no obligation to notice to Employee prior to any “for cause” termination or to provide severance benefits. All payments of salaries and benefits in this Agreement shall cease, however, Employee will be paid salary and benefits through the date of termination in accordance to City policy and the law. The term “for cause”, as used in this Agreement, shall mean any of the following: a) conviction of a felony; b) conviction of an act involving moral turpitude or illegal gain; c) a plea of nolo contendere involving a conviction of a felony or an act involving moral turpitude or illegal gain; d) any act constituting a knowing and intentional violation of the City’s Conflict of Interest Code.

SECTION 7. MISCELLANEOUS.

A. Use and administration of benefits shall conform to the requirements of the Management Performance and Compensation Plan and any other City policy or regulation, unless otherwise specified in thisAgreement.

B. This Agreement may be modified only upon the written consent of the parties.

C. This Agreement is a personal services agreement, and as such, may not be assigned by eitherparty.

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D. This Agreement constitutes the entire agreement between the parties and shall be interpreted in accordance with the laws of the State of California.

The parties hereto have executed this Agreement in duplicate the day and year noted above.

Attest:
______________________
Sarah Gorman
City Clerk Services Manager
Approved as to form:
________________________
John Doimas, Assistant City Attorney
______________________
Rebecca Bjork, an individual

CITY OF SANTA BARBARA
________________________
Randy Rowse, Mayor

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: February 15, 2022
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Presentation From The Community Formation Commission RECOMMENDATION:

That Council receive a presentation from the Chair and Vice-Chair of the Community Formation Commission on work efforts and proposed timeline.

BUDGET IMPACT:

The CFC has recommended the creation of an Office of Police Oversight (OPO), which would include the creation of two new staff positions: Director of Police Oversight (Executive Management) and Community Ombudsman (Manager).

Also, some estimated costs to be aware of include:
 Up to a maximum of $400 stipend per month per commissioner (11 commissioners and 2 alternates are recommended).
 Reimbursement of $50 per meeting for child/elder care.  Attendance of Oversight Board Members to attend National Association of Civilian Oversight of Law Enforcement (NACOLE) events and other training.

Costs for program staffing and related expenses are dependent on the final recommendation by the Community Formation Commission and what the City Council directs. As proposed, they range from $250,000 - $600,000 per year and would be funded by the General Fund. General Fund reserves are projected to be below policy target levels of 15% disaster reserves and 10% contingency reserves totaling 25% reserves by the end of FY2022. A future appropriation request will likely result in further reducing available reserves.

PREPARED BY: Sam Ramirez, Administrative Analyst III
SUBMITTED BY: Sam Ramirez, Administrative Analyst III
APPROVED BY: City Administrator's Office
Agenda Item No. 10

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: February 15, 2022
TO: Mayor and Councilmembers
FROM: Planning Division, Community Development Department SUBJECT: City Council Direction On A Multi-Unit Housing Program And Regulations
RECOMMENDATION: That Council:

A. Consider options for regulating multi-unit housing density and building size; B. Provide direction on a preferred multi-unit housing program to study in the City’s General Plan Programmatic Environmental Impact Report; and C. Consider and provide direction on interim methods to incentivize smaller housing units.

EXECUTIVE SUMMARY:

Staff is seeking City Council direction on a preferred multi-unit housing program to study in an update to the City’s General Plan Programmatic Environmental Impact Report (PEIR). Environmental effects of City Council’s direction will be reviewed with alternatives in the General Plan Subsequent PEIR.

City Council will receive a presentation on the merits of staff’s recommendation to regulate multi-unit development by Floor-to-Lot Area Ratio (FAR). Staff is recommending a move to FAR as a way to increase the production of housing units, as envisioned in the General Plan (Attachment 1), and in response to previous City Council and Planning Commission direction. Regulating by FAR will be unique to different parts of the community and create a more predictable outcome for both developers and the community.

City Council will also receive a report on the option to continue to regulate multi-unit development with the Average Unit-Size Density Incentive Program (AUD) through increased allowed densities in different areas of the City.

Agenda Item No. 11
Council Agenda Report
City Council Direction On A Multi-Unit Housing Program And Regulations February 15, 2022

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City Council will consider an interim option to allow higher densities for smaller units while longer-term housing programs are being studied for potential environmental effects.

BACKGROUND:

General Plan
The General Plan highlights the need to balance the goals of providing housing opportunities while also “living within our resources” and protecting the community's character. One of the housing goals of the General Plan is to "encourage smaller rental and workforce units close to transit, and easy walking and/or biking distance to commercial services and recreational opportunities.” Both the Land Use and Housing Elements reflect these goals by providing specific direction to allow increased densities and development incentives in selected areas of the City through smaller units and buildings to produce additional housing in an effective, sustainable, and appropriate manner.

The General Plan encourages the production of housing, specifically affordable housing, rental units, employer sponsored housing, and limited equity housing cooperatives. Such housing is considered a community benefit supported by numerous policies and programs in both the Land Use and Housing Elements.

The Land Use Element calls for new buildings to be reviewed for compatibility with the surrounding built environment. This is administered through each project's review by either the Architectural Board of Review (ABR) or Historic Landmarks Commission (HLC).

In addition, this section of the Land Use Element called for the development of maximum FARs1 with “the largest structures in the center of the city (adjacent to transit and commercial services), and reduce maximum building size/FARs moving outward from the center.”
General Plan Programmatic Environmental Impact Report
The City is currently updating the 2010 General Plan Programmatic Environmental Impact Report. The analysis will consider impacts from a range of housing buildout alternatives, including a “no project” or status quo alternative. All scenarios will include the additional housing development allowed by Senate Bill 9 and amended accessory dwelling unit laws, which were not included in the original analysis. City Council’s direction on a preferred multi-unit housing buildout scenario would be the primary project of the document. Other alternatives would be analyzed to a lesser degree. This effort will begin immediately after receiving City Council direction and is anticipated to be completed by late 2022.

AUD Program
The City adopted the AUD Program in August 2013 to implement key General Plan policies (Attachment 1) that encourage the construction of new rental units. To date, the AUD Program has produced 539 market-rate units and 206 affordable units (low-income); 1 Land Use Element Policy 12.2.b.i Attachment 1
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another 499 market-rate and 101 affordable units (63 low-income and 38 moderateincome) are pending review and approval.

The initial duration of the AUD program was limited to eight years (or 250 new units, whichever occurred first) to ensure timely evaluation and adjustments to the program.

The program has been amended several times during that period to increase public notice of pending projects, add a Planning Commission conceptual review hearing for larger projects, modify parking standards, protect existing affordable housing, and increase allowable density and provide other development incentives in the Central Business District (CBD). City Council has extended the duration of the AUD Program twice, with the most recent action extending the program to February 15, 2024, to allow for continued public review of new multi-unit housing standards and related environmental analysis, as well as removing some uncertainty for developers as to when the program may expire.

In 2019, City Council directed staff to make the following changes to the AUD Program density map:
 Remove the Priority Housing Overlay from Milpas Street and on Haley Street, west to North Quarantina Street.
 Remove the Priority Housing Overlay from the potential Castillo and De La Vina Historic Districts.2
 Add the Priority Housing Overlay to parcels directly adjacent to State Street, from Arrellaga Street to Mission Street.
 Consider designating State Street and De La Vina Street, west of Constance Street, High Density rather than Medium-High Density.

In 2019, City Council also adopted Inclusionary Housing provisions for AUD Program rental units that require projects over ten units to reserve ten percent of the units for moderate-income households. Additionally, City Council directed staff to carry forward the development incentives from the AUD Program for multi-unit housing projects into existing ordinances for all multi-unit housing.

Floor-to-Lot Area Ratio (FAR)
In 2019, City Council directed staff to prepare new mixed-use and multi-unit housing standards that would regulate projects by building size using FARs rather than density (i.e., number of units). Regulating by building size would accommodate more and smaller units and provide clear building size limits based on location.3 City Council stated that the FARs should promote more housing than the existing densities under the AUD Program.

In 2021, from that City Council direction, staff developed a Draft FAR Map (Attachment 2) that proposed building size limits in areas that allow for multi-unit housing. The highest possible FARs are in the downtown core because the CBD is the preferred location for multi-unit residential development due to its proximity to jobs, commercial services, and recreational opportunities and the availability of transit and sustainable transportation options. Relative to the rest of the downtown core, the proposed FAR is lower in and 2 This was completed in 2020
3 Land Use Element Policy LG12.2 – Attachment 1
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adjacent to the Brinkerhoff Avenue Historic District and the two potential historic districts on lower De la Vina and Castillo Streets. A lower FAR protects these historic areas from more intense, potentially incompatible development. The Draft FAR Map was informed by public comment, the existing AUD Program Map (Attachment 3), calculated FARs of existing buildings throughout the City, FARs from approved AUD projects, and building designs from the American Institute of Architects 2020 Charrette.

The Draft FAR Map was reviewed with a working group consisting of two members from the Planning Commission, HLC, and ABR. The map was released for public review and input via an online workshop from February to March 2021. The Online Workshop was advertised in English and Spanish via multiple news outlets, social media, City board and commission meetings, neighborhood groups, nonprofit organizations, several City ebulletins, and business and professional associations. Over the 13-day period that the workshop was open, 168 people registered for the workshop, and the website received more than 1,300 visits.

On June 29, 2021, City Council authorized a contract with BAE for an Economic Feasibility Analysis (Study) to evaluate project viability with proposed building size standards and related Inclusionary Housing requirements. City Council asked that the Draft FAR Map (Attachment 2) that was publicly reviewed be used as the baseline for the economic feasibility analysis. The analysis was presented to the Planning Commission in October 2021 and is available on the City’s website.4 With the potential increase in buildout made possible by an amended housing program, further environmental analysis is necessary before such a program could be implemented. For this reason, staff is seeking Council direction on a preferred program.

Recent Changes to State Housing Policy
Recent state legislative actions intended to expand housing production in California require local governments to streamline the review process for multi-unit housing and increase density. The effect of these new housing laws will be to allow significantly more housing development “by right” without any discretionary review. The State’s overarching policy is that a local government may not deny, reduce the density of, or make infeasible housing that is consistent with objective local development standards.

According to the 2017 Housing Accountability Act, objective standards mean those “… that involve no personal or subjective judgment by a public official and being uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official.” The proposed changes to the zoning ordinance provide objective development standards that give developers certainty regarding what standards, conditions, and policies will apply to their project and how those standards can be met.

Regional Housing Needs Allocation
The City is required to incorporate its Regional Housing Needs Allocation (RHNA) into its Housing Element to verify that its fair share of the regional housing needs could potentially 4 https://www.santabarbaraca.gov/civicax/filebank/blobdload.aspx?BlobID=240445 Council Agenda Report
City Council Direction On A Multi-Unit Housing Program And Regulations February 15, 2022

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be realized over the eight-year planning period.5 The Housing Element is one of the City’s required Elements of the General Plan and must be updated at least every eight years with mandatory review and certification by the State Department of Housing and Community Development (HCD). The Housing Element provides policies, programs, and actions that support housing growth and retention across all income levels. The City’s RHNA for the planning period of 2022 to 2030 is 8,001 units. The City will be engaging a consultant to assist with the Housing Element Update, which must be completed by February 2023.

DISCUSSION:

The purpose of this hearing is to receive direction from City Council on a preferred buildout scenario for multi-unit housing in order to study its potential outcomes and environmental impacts as part of updating the City’s General Plan PEIR. The PEIR will also evaluate alternatives to the preferred method.

Regulating by Building Size
General Plan policies and recent direction from the Planning Commission and City Council support shifting toward regulating building sizes rather than density to get the appropriately sized buildings in the right places and encourage more housing units into an allowed building envelope. Recent changes in state legislation and efforts to streamline the City’s land development process also call for building more objectivity and certainty into the production of multi-unit housing. The City does not currently have size limits for apartment and condominium buildings, other than required setback distance from property lines (in some areas) and maximum height limits.

Staff recommends providing clear, objective standards for new apartment and condominium projects. Based on prior direction and public input, staff developed size limits for buildings that are relative to the size of the property and unique to each area of the community, using FAR maximums (Attachment 2 − Draft FAR Map).

Regulating by FAR will add certainty to the project review process for the public and developers and shift the ABR and HLC’s purview to focus primarily on architectural elements and details. Limiting building size also removes density (the number of housing units allowed to be built on a lot, usually described as “dwelling units per acre”) as the factor that determines how many units are proposed in a project, which would encourage the construction of needed housing and is expected to result in more units being proposed within each new building.

The HLC and ABR are currently the decision-making bodies for most multi-unit housing projects and must evaluate projects for compatibility with the surrounding development and compliance with adopted design guidelines. This is often challenging when larger projects, otherwise allowed by zoning, are proposed near existing, smaller buildings and may be the first of their kind on the block.
5 Housing Element Law (California Government Code Sections 65580−65589.11) Council Agenda Report
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Two potential alternatives to regulating multi-family development by building size rather than by density are discussed below.

Alternative 1 – Maintaining AUD Map Boundaries with Increased Density The first alternative to regulating by FAR would be to increase allowed densities within the existing AUD Program. Staff would use the building prototypes studied in the Economic Feasibility Analysis to establish new maximum allowed densities and assume all other existing development standards in the AUD Program (height, setback, parking, and open yard).

The existing AUD Program Map (Attachment 3) focuses the highest densities in the downtown area, La Cumbre Plaza, and along Milpas Street, as directed by the General Plan. Using the existing AUD Program map and adjusting maximum densities within each of the three tiers (Medium High, High, and Priority Overlay) would allow for more units on a site, but would continue to rely more heavily on subjective design guidelines to set the maximum building envelope.

Medium-High Density Designations
Two development prototypes were modeled in the multi-unit zoning districts (R-M and R-MH), which are common on the Eastside and Westside neighborhoods. These prototypes adhere to all current development standards regarding height, setback, parking, and open yard and resulted in maximum densities ranging from 45 to 73 units per acre, depending on how parking and open space are provided on the site. In this alternative, staff could study increasing the Medium-High density areas on the AUD Program map from a maximum of 27 units per acre to 45 units per acre.

High Density Designations
Two development prototypes were modeled on lot sizes typically found in the CBD. Both prototypes assumed existing AUD Program development standards (without additional height for Community Benefit) and resulted in maximum densities ranging from 95 to 110 dwelling units per acre, depending on the lot size. In this alternative, staff could study increasing the High Density areas on the AUD Program map from a maximum of 36 units per acre to 95 units per acre.

Priority Housing Overlay
Current regulations allow for additional height above 45 feet (or 48 feet in the CBD) for Community Benefit Housing, which consists of Priority Housing (employer-sponsored housing, limited-equity housing cooperatives, and rental housing); housing affordable to very low, low, moderate, or middle-income households; transitional housing; and supportive housing. These projects are eligible for additional height, up to 60 feet in commercial zones if the Planning Commission can make certain findings in Santa Barbara Municipal Code Section 30.140.100 - Exceptions to Height Limitations.

Two additional development prototypes were modeled on lot sizes typically found in the CBD and assumed a maximum height of 60 feet as a Community Benefit Housing project.

Both prototypes also assumed existing AUD Program development standards and resulted in maximum densities ranging from 147 to 156 dwelling units per acre. In this Council Agenda Report
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alternative, staff could study increasing the Priority Housing Overlay areas on the AUD Program map from a maximum of 63 units per acre to 147 units per acre.

The table below provides a summary of the existing maximum AUD Program densities and the densities discussed above. Increasing the maximum densities within the same mapped areas of the AUD Program is one alternative to regulating multi-unit housing by FAR.

Existing AUD Program Densities Proposed Densities Based on Development Prototypes
Medium-High Density
15 to 27 units/acre
Medium-High Density
45 to 73 units/acre
High Density designation
28 to 36 units/acre
High Density designation
95 to 110 units/acre
Priority Housing Overlay
37 to 63 units/acre
Priority Housing Overlay
111 to 156 units/acre
Alternative 2 − Amending the AUD Program Map
The second alternative to regulating multi-unit housing by FAR is to implement the 2019 Council direction regarding changes to the AUD Program map densities in certain areas, summarized on page 3 of this report. Making minor density changes to the existing AUD Program map would not dramatically increase housing production in the City, because while some areas would increase in maximum allowed density (State Street and De la Vina Streets in the Downtown and Oak Park neighborhoods), other areas would be decreased (Milpas Street, and Haley Street near Quarantina Street).

Interim Method to Allow Higher Density Projects with Smaller Units The PEIR is anticipated to be completed in late 2022/early 2023. In the meantime, staff, developers, and the Planning Commission are interested in mechanisms to allow higher densities for very small housing units.

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Currently, an applicant can apply for a Lot Area Modification to exceed the allowed density on a parcel. Pursuant to the City’s Affordable Housing Policies and Procedures6 (AHPP), any unit above the allowed maximum density must be reserved for low-income households. The AHPP would need to be amended by City Council to allow flexibility to provide either low-income or moderate-income units to make higher density projects more feasible. Requests for Lot Area Modifications are considered on a case-by-case basis and require approval by either the Staff Hearing Officer or Planning Commission. If Council is supportive of this approach, staff will make the necessary revisions and present an amended AHPP to the Planning Commission and City Council in spring 2022.

ENVIRONMENTAL REVIEW:

No environmental determination is required at this time, and a Subsequent PEIR will be prepared in compliance with the California Environmental Quality Act (CEQA). The forthcoming PEIR will analyze and disclose potential environmental impacts, mitigation measures, and alternatives associated with the preferred multi-unit housing buildout scenario. City staff will solicit comment from the public and interested parties during the initial scoping period for the Subsequent PEIR, and following preparation of the Draft Subsequent PEIR. Decision-makers must review the information contained within the Final Subsequent PEIR before taking action on the project.

ATTACHMENTS: 1. Applicable General Plan Policies

2. Draft FAR Map

3. AUD Program Map
PREPARED BY: Daniel Gullett, Principal Planner
Jessica Metzger, AICP, Project Planner
SUBMITTED BY: Elias Isaacson, AICP, Community Development Director APPROVED BY: City Administrator’s Office
6 https://www.santabarbaraca.gov/civicax/filebank/blobdload.aspx?BlobID=241843

GENERAL PLAN GOALS, POLICIES, AND IMPLEMENTATION ACTIONS

CONSISTENCY
1 Below are General Plan1 Policies, Implementation strategies and text supporting housing in the City:

Housing Element
H2. Housing Opportunities. Promote equal housing opportunities for all segments of the community, with special emphasis given to extremely low, very low, low, moderate, middle income and special needs households.

H4. Housing at Shopping Centers. Promote and encourage the development of mixed-use for ownership and rental housing at shopping centers such as La Cumbre Plaza, with an emphasis on affordability, by coordinating and/or partnering with property owners and housing developers.

H6. Housing Opportunities for Seniors. Seek to ensure the availability of a range of housing opportunities with an emphasis on extremely, very low, low and moderate income seniors.

H10. New Housing. Given limited land resources, the City shall encourage the development of housing on vacant infill sites and the redevelopment of opportunity sites in both residential zones and as part of mixed-use development in commercial zones.

H11. Promote Affordable Units. The production of affordable housing units shall be the highest priority and the City will encourage all opportunities to construct new housing units that are affordable to extremely low, very low, low, moderate, middle income and special needs households.

H11.2 Priority Housing Overlay. Encourage the construction of rental housing, employer sponsored housing and co-operative housing in the Downtown, La Cumbre Plaza/Five Points area, C-M Commercial Manufacturing Zone and Milpas Street Area by providing incentives such as:
- Increased density overlays up to 63 du/ac as part of the Average Unit-Size Density Incentive Program.
- Higher Floor Area Ratios (FAR) when such standards are developed. - More flexibility with zoning standards (e.g., reduced parking standards). - Expedited Design Review process.
- Fee waivers or deferrals.

H12. Above Moderate Affordable Housing. Provide incentives for the private sector development of new housing opportunities affordable to households earning more than 120% of the Area Median Income, but not more than 200% of the Area Median Income.

H13. Non-Subsidized Rental Housing. Preserve and promote non-subsidized affordable rental housing.

H14. Sustainable Housing. Ensure that new market-rate residential development is consistent with the City’s sustainability goal, including reduced energy and resource use, and increased affordable housing units.

H17. Flexible Standards. With the New Zoning Ordinance (NZO) Update consider changes to development standards to be more flexible for rental, employer-sponsored workforce housing, affordable housing projects, and limited equity co-operatives, where appropriate.

H17.2 Zoning Standards. Consider amending the Zoning Ordinance to change how, where and the extent of outdoor living space, yard and setback requirements for housing in commercial zones. 1 https://www.santabarbaraca.gov/services/planning/plan.asp ATTACHMENT 1

GENERAL PLAN GOALS, POLICIES, AND IMPLEMENTATION ACTIONS

CONSISTENCY
2 Housing ElementNnarrative (page 5)
“The 2015 Housing Element carries on the City’s commitment to providing affordable housing, retaining and increasing rental housing, and encouraging the production of non-subsidized affordable housing.”
Land Use Element
LG1. Resource Allocation Priority. Prioritize the use of available resource capacities for additional affordable housing for extremely low, very low, low, moderate, and middle income households over all other new development.

LG4. Principles for Development. Establish the following Principles for Development to focus growth, encourage a mix of land uses, strengthen mobility options and promote healthy active living.

Focus Growth. Encourage workforce and affordable housing within a quarter mile of frequent transit service and commercial services through smaller units and increased density, transit resources, parking demand standards, targeted infrastructure improvements, and increased public areas and open space. Incorporate ideas as a result of an employee survey.

Mix of Land Uses. Encourage a mix of land uses, particularly in the Downtown to maintain its strength as a viable commercial center, to include retail, office, restaurant, residential, institutional, financial and cultural arts, encourage easy access to basic needs such as groceries, drug stores, community services, recreation, and public space.

Mobility and Active Living. Link mixed-use development with main transit lines; promote active living by encouraging compact, vibrant, walkable places; encourage the use of bicycles; and reduce the need for residential parking.

LG5. Community Benefit Housing. While acknowledging the need to balance the provision of affordable housing with market-rate housing, new residential development in multi-family and commercial zones, including mixed-use projects, should include affordable housing and open space benefits.

LG5.1 Affordable Housing. Develop standards and project level findings to encourage the development of Community Benefit Housing defined as:
 Rental housing;
 Housing affordable to low, moderate, or middle income households;  Employer sponsored workforce housing;
 Limited Equity Co-operative Housing;
 Affordable Housing Downtown for Downtown Workers; and/or  Transitional housing, single residential occupancy, and other housing for special needs populations including seniors, physically or mentally disabled, homeless, and children aging out of foster care.

LG6. Location of Residential Growth. Encourage new residential units in multi-family and commercial areas of the City with the highest densities to be located in the Downtown, La Cumbre Plaza/Five Points area and along Milpas Street.

GENERAL PLAN GOALS, POLICIES, AND IMPLEMENTATION ACTIONS

CONSISTENCY
3 LG6.1 Average Unit-Size Density Incentive Program. Amend the Zoning Ordinance to incorporate an Average Unit-Size Density Incentive Program in multi-family and commercial zones based on smaller unit sizes and higher densities adjacent to transit and commercial uses and to implement Housing Element policies for higher densities for affordable and/or Community Benefit projects.

LG6.3 Priority Housing Overlay. Encourage the construction of rental and employer housing and limited equity co-operatives in select multi-family and commercial zones where residential use is allowed by providing increased density (over Average Unit-Size Density Incentive Program).

LG6.7 Housing for Downtown Workers. Encourage affordable housing projects by expediting and facilitating downtown housing construction that includes provisions prioritizing downtown workers to the extent legally possible.

LG6.7 Encourage affordable housing projects by expediting and facilitating downtown housing construction that includes provisions prioritizing downtown workers to the extent legally possible.

LG12. Strengthen and enhance design and development review standards and process to enhance community character, promote affordable housing, and further community sustainability principles.

LG12.1 Design Overlays. Create Design Overlay areas for selected non-residential and residential areas of the city through Floor Area Ratios (FARs), building setbacks, landscaping and open space requirements, and design guidelines. Commercial areas, historic districts, streets, or a single block with unique qualities can be evaluated for improved guidance to ensure compatibility in scale, bulk and size.

Specific areas to receive priority evaluation for a Design Overlay area include:

1. Downtown

2. Coast Village Road

3. Upper State Street

4. Milpas Street

5. Haley/Gutierrez Streets

6. The "Funk Zone" (i.e., Yanonali and Helena Streets)
LG12.2 Building Size, Bulk and Scale. Ensure that proposed buildings are compatible in scale with the surrounding built environment.
a. Standards and Findings. Strengthen and expand building size, bulk and scale standards and findings for development projects of 10,000 square feet or more in the commercial zones to ensure compatibility with surrounding uses, particularly historic resources and residential neighborhoods.
b. Floor Area Ratios (FARs). Develop a set of maximum FARs for the nonresidential and High Density areas of the City, with particular attention to protecting historic resources and areas that are adjacent to single family zoned areas, maintaining Santa Barbara’s small town character, and encouraging small, affordable residential units.

GENERAL PLAN GOALS, POLICIES, AND IMPLEMENTATION ACTIONS

CONSISTENCY
4 i) Maximums. Develop a set of maximum FARs that permit the largest structures in the center of the city (adjacent to transit and commercial services), and reduce maximum building size/FARs moving outward from the center. (This approval would be similar to the “Parking Zone of Benefit” model);
ii) Buffers. On parcels adjoining historic structures, establish “buffers” using more restrictive FAR limits;
iii) Incentives. Consider higher FARs for multi-family rental projects and small, affordable residential units; and
iv) Guidelines. Consider FAR Guidelines for development models such as where parking is proposed at the ground or in basement floors.
v) Development Community. Create a working group that includes local professionals from the development community when developing FARs.

Land Use Element Historic Resources Narrative (page 4)
"While the Historic Landmarks Commission has broad discretionary authority to make findings that a particular project is compatible or incompatible with the surrounding historic resources, the community is requesting more certainty. Hence, implementation of the General Plan policies will include Design Overlay Areas with new tools to be developed including Floor Area Ratios (FARs) to ensure sympathetic development in historic areas.”
“The use of Design Overlay areas and FARs will be particularly important adjacent to historic resources. The objective is to more effectively control the size of structures, while also permitting the necessary flexibility to construct the requisite density for affordable units within the building “envelope”.”
Land Use Element Design Guidelines Narrative (page 27)
"Design Guidelines in the future may include Design Overlay areas and Floor Area Ratios (FARs) that will more effectively control the size of structures." Circulation
C8.1 The City shall continue to manage the Downtown public parking supply to support the economic vitality of the Downtown business district while sustaining or enhancing its historical and livable qualities.

C8.5 The City shall promote/facilitate the development of housing to decrease the need for parking through an increased walking/biking population that lives, works, and shops in the Downtown (See Chapter 13).

C8.5.1 Educate property and business owners, developers, and the community about the benefits of increased housing Downtown.

C8.5.2 Allow residential parking in public parking lots for mixed use development after ensuring that there is adequate capacity to serve existing uses.

C8.5.3 Develop public/private partnership criteria for the use of air space over Downtown public parking lots as an incentive for housing development

GENERAL PLAN GOALS, POLICIES, AND IMPLEMENTATION ACTIONS

CONSISTENCY
5 C12.1 Improve livability and economic vitality by creating a program that describes a process for residents, tenants, property owners, business owners, and other interested parties in an area or corridor, to address mobility issues and mitigate impacts of vehicular traffic.

C12.2 Improve livability and economic vitality by working with residents, tenants, property owners, business owners, and other interested parties of an impacted area or corridor to mitigate the impacts of vehicular traffic. The City shall consult with residents, property owners, and commercial tenants located in close proximity to any corridor or street before implementing improvements that could result in changes to the existing characteristics of that corridor or street, its traffic patterns or infrastructure.

Improvements shall be consistent with Neighborhood Area Mobility Plans.

C13.1.1 Encourage the development of projects that combine and locate residential uses near areas of employment and services.

C13.2 Without increasing the City wide development potential as provided for in the existing Zoning Ordinance and General Plan, the City shall allow more compact, pedestrian oriented development along major transit corridors.

C13.3.3 Continue to assist in the development of mixed use projects through such methods as, but not limited to: land use policies, modified development standards.

C13.5 Determine the need for residential neighborhood services and commercial uses that support the City’s mobility goals. Provide opportunities to address those needs, while preserving and protecting the neighborhood character.

Environmental Resources Element

1.0 Reduce single occupant automobile trips and increase the utilization of public transit.

2.0 Improve the attractiveness and safety of bicycle use as an alternate mode of travel for short- and medium-distance trips.

3.0 Promote the use of car pooling through special provisions for the priority use of parking facilities and other employee disincentives to auto traffic in commercial areas as an alternative to construction of additional parking facilities.

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Santa Barbara City CouncilFebruary 15, 2022

Santa Barbara City Council
February 15, 2022